236 NLRB 440
Insurance Workers International Union Local 60,
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Insurance Workers International Union, AFL-CIO,
Local 60 (John Hancock Mutual Life Insurance
Company) and Raymond James Ottomeyer, Jr.
Case 14-CB-3296
May 25, 1978
DECISION AND ORDER
BY MEMBERS JENKINS, PENELLO, AND MURPHY
On March 17, 1977, Administrative Law Judge
James L. Rose issued the attached Decision in this
proceeding. Thereafter, the General Counsel filed ex-
ceptions and a supporting brief, and Respondent
filed an answering brief.
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 au-
thority in this proceeding to a three-member panel.
The Board has considered the record and the at-
tached Decision in light of the exceptions and briefs
and has decided to affirm the rulings, findings, and
conclusions of the Administrative Law Judge and to
adopt his recommended Order.
We agree with the Administrative Law Judge that
Respondent did not violate Section 8(b)(l)(A) of the
Act by threatening to discipline and actually initiat-
ing intraunion disciplinary proceedings against cer-
tain of its members because they refused to partici-
pate in union-sponsored "lunch demonstrations."
Our dissenting colleague, on the other hand, would
find a violation based on her perception that the
picketing in question constituted a violation of Re-
spondent's no-strike and no-slowdown obligations
arising out of the collective-bargaining agreement
and, alternatively, on her position that the employees
were insulated from union discipline because of their
"apparently reasonable belief" that the activity was a
violation of the contract.
The Employer in this proceeding is an insurance
carrier which employs a number of persons repre-
sented by Respondent as sales agents. While there
are no uniform standard business hours for these
agents, they work on a commission basis between 50
and 75 hours per week as the business demands and
their stamina permits. Each agent is expected to pick
those times of the day when business calls or other
work will be most productive, which for most agents
is between the hours of 8 a.m. and 9 p.m. during the
week as well as occasional weekends. Each agent is
also permitted to select appropriate periods during
the day for personal activities or to attend regular
union meetings which the record discloses were held
on certain afternoons during the week.
Confronted with what they considered a unilateral
change in working conditions relating to sales re-
quirements. the International Union directed each of
its locals, including Respondent herein, to engage in
protest activity consisting of picketing during a 2-
hour-a-day, 2-day-a-week period deemed most ap-
propriate by the local. The locals were instructed not
to disrupt the business activity of the Company, and
to excuse members from picketing duty who had spe-
cific assignments for the Company during the pe-
riods of picketing. At the south St. Louis district of-
fice, picketing occurred on each Tuesday and
Thursday from 10:30 a.m. to 12:30 p.m. between
March 18 and April 6, 1976. When several union
members decided to return to work after the first day
of picketing, however, Respondent initiated intraun-
ion disciplinary proceedings, claiming that persons
declining to participate in the demonstrations were
not excused therefrom. One of these persons, who
was subjected to the disciplinary procedures, filed
charges with the Board, alleging that the Union had
violated Section 8(b)(1)(A) of the Act.
Union discipline is unlawful if it should violate
some recognized public policy. N.L.R.B. v. Industrial
Union of Marine & Shipbuilding Workers of America
and its Local 22 [U.S. Lines], 391 U.S. 418 (1968);
Local 138, International Union of Operating Engineers
(Charles S. Skura), 148 NLRB 674 (1964). For exam-
ple, a union violates the Act if it attempts to disci-
pline a member for refusing to engage in unprotected
activity. Thus, the determinative question here is
whether the applicable collective-bargaining agree-
ment between Respondent and the Employer pro-
hibited the union-sponsored demonstrations, render-
ing such activity unprotected.' However, since this
case involves activity which is normally protected
under the Act, any contract which is deemed to ren-
der it unprotected must be "clear and unmistaka-
ble." 2
Contrary to our dissenting colleague, who relies on
the testimony of several agents that, but for the pick-
eting, they would have engaged in company business
during the period of the demonstrations, we do not
find that Respondent's conduct was a slowdown
The Administrative Law Judge found that the picketing was engaged in
to protest the Employer's unilateral imposition of minimum sales quotas.
Minimum standards had been discussed and expressly rejected by the
Union during collective negotiations and the Union viewed the Employer's
later unilateral action as a "double cross." Arguably. it was also a violation
of Sec. 8(aX5) rendering any ,tnke activity by the employees protected irr-
espective of the no-strike pledge made by Respondent. Mastro Plastics Corp.
v. N I.R.B.. 350 U.S. 270 (19'56)L but cf. Arlan' Department Store of Michi-
gan, Inc. 133 NLRB 802 (1961). In any event. since the case apparently was
not litigated on this theory, are shall assume. arguendo, that the activity in
question was purely economic activity
-Unequivocal waiver may be found in contract language or in bargaining
history.
236 NLRB No. 50
440
INSURANCE WORKERS INTL. UNION, LOCAL 60
within the meaning of the contract. The applicable
provision in the agreement prohibits all strikes and
slowdowns, slowdowns being defined as any "con-
certed action by a group of Agents for the purpose of
coercing the Company into granting their demands
by the willful cessation or reduction of normal busi-
ness activity." Citing bargaining history, the Admin-
istrative Law Judge found that the no-strike and no-
slowdown language was designed to preclude con-
certed
refusals
by agents
to
attend company
meetings or to report weekly sales. No evidence of
either a refusal to attend company meetings 3 or a
reduction in reported sales was presented or alleged
by the General Counsel. To argue, as does our dis-
senting colleague, that the no-strike clause prohibits
any concerted activity occurring during the hours of
8 a.m. and 9 p.m., those hours when the agents con-
cededly performed their selling duties, would be to
infer a waiver by the Union far beyond the evident
intent of the agreement. Moreover, at the very least,
the clause is ambiguous and hence not "clear and
unmistakable" with respect to these demonstrations,
since, as the Administrative Law Judge specifically
found, "the hours and amount of business activity
vary between agents." 4
Furthermore, we disagree with our dissenting
colleague's assertion that a union violates Section
8(b)(1)(A) of the Act if it seeks to discipline persons
who refuse to engage in concerted activity because of
"an apparently reasonable belief" that the activity is
barred by the contract. A rule which immunizes
union members from intraunion discipline under
such circumstances is inconsistent with the principles
announced by the Supreme Court in Scofield, et al.
(Wisconsin Motor Corp.) v. N.L.R.B., 394 U.S. 423
(1969), and N.L.R.B. v. A4 Ilis-Chalmers Manufacturing
CompanV, 388 U.S. 175 (1967). It is fundamental that
when an individual union member insists on inter-
preting the contract's no-strike clause differently
from the union the member acts at his own peril. If
the Board later finds that the concerted activity was
unprotected, then no union discipline can follow, but
where, as here, the concerted activity is protected,
then the union can initiate disciplinary proceedings
against
the member without
violating
Section
8(b)(l)(A) of the Act.' So long as union discipline is
3 n fact, the record shows that Respondent scheduled its picketing so as
not to interfere with company meetings.
4Although citing the dictionary definition of "normal" in support of her
contention that the clause barred the activity in question, iour dissenting
colleague apparently admits that "the contract language . . . is uncertain,
unclear, and therefore ambiguous in meaning."
'Of course, where union rules and bIlaws contain no restraints on the
resignation of members. a union mas not fine an ex-member who first re-
signs from the union, then refuses to engage in concerted activity. N. i R B
v. Granite State Joint Board. Terxtile iforkeris
nion of Ameririwa Inrernaiional
Paper Box- Machine Co.]. 409 U.S. 213 (1972).
neither in derogation of a recognized public policy
nor procedurally unfair, Congress has mandated that
it is insulated from scrutiny by either the Board or
the courts. We are of the view that the union's legiti-
mate interest in maintaining the integrity of the strike
and other forms of concerted activity outweighs a
member's interest in avoiding potential discipline by
the employer for engaging in unprotected activity by
allegedly violating an ambiguous contract. For, we
have long held that the conduct of employees, other-
wise protected, becomes unprotected only where it is
barred clearly and unmistakably by the collective
agreement. Thus, unless the contract is unambigu-
ous, union members are not presented with our
colleague's hypothetical dilemma, and where it is un-
ambiguous and the union nevertheless seeks to disci-
pline those members who refuse to violate its provi-
sions, we have no difficulty in finding that the union
violated the Act. Finally, the dissent's approach
would pose signigicant difficulties in administration
since, by its nature. it involves an inquiry into the
subjective states of mind of union members declining
to participate in union-sponsored activity. 6
Accordingly, we agree with the Administrative
Law Judge that Respondent did not violate Section
8(b)(l)(A) of the Act.
ORDER
Pursuant to Section 10(c) of the National Labor
Relations Act, as amended, the National Labor Re-
lations Board adopts as its Order the recommended
Order of the Administrative Law Judge and hereby
orders that the complaint be, and it hereby is, dis-
missed in its entirety.
MEMBE R M RPH'Y. dissenting:
I disagree with my colleagues' adoption of the Ad-
ministrative Law Judge's Decision dismissing the
complaint in its entirety. Unlike my colleagues, I
would find that Respondent Local 60 violated Sec-
tion 8(b)(1)(A) of the Act by threatening certain of
its members with intraunion charges, and by holding
a hearing based on such charges, because they re-
fused to participate in authorized picketing against
their employer, John Hancock Mutual Life Insur-
ance Company (herein called the Employer), in the
face of a broad contractual no-strike no-lockout pro-
hibition.7 Thus, I also disagree with the Administra-
6 See, Atelston. Lnion Fines and Picket Lines The NI.RA and Union Disci-
phnari Puer., 17 U C.i.A. L. Rev. 681, 756 11970).
'Art IV of the agreement. dealing with strikes, slowdowns. and lockouts,
reads as follows:
Although the parties recognize that so-called lockouts and strikes are
practically unknown to the business and. in fact. are accepted as inimi-
Continued
441
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
tive Law Judge's and my colleagues' finding, as not-
ed, that the picketing by the district sales agents ev-
ery Tuesday and Thursday between the hours of
10:30 a.m. and 12:30 p.m. was not a strike or "slow-
down" as defined in the foregoing collective-bargain-
ing agreement between the Employer and Respon-
dent's
parent
organization
(herein
called
the
International). 8
The facts surrounding the picketing and Respon-
dent's subsequent actions to discipline certain of its
members, including the Charging Party, for failing to
participate in such picketing, are not materially in
dispute and are fully set forth in the attached Admin-
istrative Law Judge's Decision. Briefly, they show
that the International has a contract with the Em-
ployer covering all of the Employer's district sales
agents. This contract, effective from June 25, 1975,
through June 28, 1978, contains the no-strike or no-
slowdown provisions described above. Some 3 or 4
months after the foregoing contract was executed,
the Employer sought to impose on the unit employ-
ees a minimum sales requirement similar to the one
which the parties, during their recently completed
contract negotiations, had agreed not to impose. The
International considered the Employer's action a
"double cross" and, in February 1976. advised each
local union and district office chairman that the In-
ternational would undertake protest demonstrations.
These demonstrations were to be in the form of pick-
eting at each of the Employer's district offices for 2
hours a day on each of 2 days per week, timed to
coincide with the contractually required report days
when all agents are required to come to the office to
report on their sales, etc. The International advised
cal to the interests of the policy holders, during the term of this con-
tract, the Company will not lockout any District Agents. and the
Union. including all locals thereof. will neither cause. direct nor permit
an) manager, officer, or representative. to engage, participate. or in ann
way assist in a strike (or slowdown. No officer or representative of the
Union or any local thereof, will authorize, approve. ratify, or condone
any strike or slowdown.
s A "slowdown" is defined in the same art. IV as follows:
The term "slovdown" as used in this Article shall mean, but ntl ho
way of limitation, concerted action by a group of Agents for the pur-
pose of coercing the Company into granting their demands by the will-
ful cessation or reduction of normal business activity.
My colleagues assert that to read into this definition, as I would, a prohibi-
tion against "any concerted activity during the hours of 8 a.m. and 9 p.m.,
those hours when the agents concededly performed their selling duties,
would be to infer a waiver by the Union far beyond the evident intent of the
agreement." But their position flies in the face of the plain language of the
clause. specifically "by the willful cessation or reduction of normal hu.inevs
activity lemphasis supplied]." Webster's Third New International Diction;lr
(unabridged) defines "normal," inter alia, as "according to, constitutirg. or
not deviating from an established norm, rule, or principle: conformed to a
type, standard or regular pattern: . . . REGULAR . . . [working hours]
...
Clearly their "normal business activity" refers to and encompases
the working i.e, regular, hours of the agents--or as my colleagues put it
"those hours when the agents . . .performed their selling duties," In short,
the prohibition against a "slowdown" or work stoppage during the regul.ir
workday was complete
its locals that agents specifically scheduled to work
on picketing days were to be excused from picketing
duty.
In the south St. Louis district, the only facility in-
volved herein, the report days are Tuesdays and Thurs-
days, with the agents normally being in the office
from 8:30 or 9 a.m. until about 10:30 a.m. doing nec-
essary paperwork. On Thursdays, there generally
would be a sales meeting starting about 10 a.m. and
lasting half an hour or so. Respondent decided to
picket this facility from 10:30 a.m. until 12:30 p.m.
on Tuesdays and Thursdays commencing March 18.
Such picketing continued in this fashion until April
6.
The Charging Party and eight other agents refused
at one time or another to participate in the picketing,
essentially because they believed that the picketing
during the time they normally would be working
constituted a slowdown and violated article IV of the
contract. Respondent's district office committee
brought charges against these employees for failing
to join in the picketing without a proper excuse. A
hearing on such charges was held on July 14, 1976.
At the time of the hearing herein, the employees had
not yet been advised as to the disposition of the
charges against them.
The Administrative Law Judge found that, without
question, the picketing was concerted action by a
group of agents for the purpose of coercing the Com-
pany into rescinding its imposition of the minimum
standards requirement. He also found that if the
agents had not been engaged in the picketing activi-
ties during the hours of 10:30 a.m. and 12:30 p.m. on
Tuesdays and Thursdays, they would have been en-
gaged in some activity involved in the business of
selling life insurance for the Employer. And, indeed
the employees who did not participate in the picket-
ing testified that they worked during these periods.
Notwithstanding the foregoing findings, the Admin-
istrative Law Judge concluded that the picketing was
not a "slowdown" as defined by the contract because
it did not result in a "reduction in normal business
activity." He reached this conclusion because district
agents do not have set working hours and, in fact,
work 10 to 12 hours a day as their stamina permits.
I cannot subscribe to this logic. It is clear that, but
for the picketing, the employees would have been en-
gaged in normal sales activities. The fact that diligent
agents may have made up for the time spent in pick-
eting by working extra hours at night or on weekends
does not justify a finding that the picketing did not
interfere with or reduce normal business activity. I
therefore would find that the picketing was in viola-
tion of the parties' broad contractual no-strike provi-
sion. Since picketing in violation of a no-strike clause
442
INSURANCE WORKERS INTL. UNION, LOCAL, 60
is not protected by Section 7 of the Act, it follows
that Respondent may not lawfully discipline its
members for declining to participate in such picket-
ing. Accordingly, I conclude that by threatening to
bring charges against certain of its members, and by
holding a hearing on such charges, all because they
failed to participate in unprotected picketing activi-
ties, Respondent Local 60 violated Section 8(b)(1)(A)
of the Act.
My colleagues argue that when a union member
disagrees with the union's interpretation of the
contract's no-strike provisions, he acts at his peril in
refusing to honor the strike; presumably, any con-
cern the member may have about employer reprisal
for allegedly violating such contract, however rea-
sonable that concern may be in light of the contract's
ambiguity, is outweighed by the union's legitimate
interest in maintaining the integrity of its strike. Un-
der their view, no matter how he guesses, the member
may well be wrong, for he exposes himself to adverse
action from either or both contracting parties. It is
unconscionable to present a member with such a di-
lemma. Instead the consequences must fall on the
contracting parties, in this case the Union. since it
was the one who agreed to the contract language
which is uncertain, unclear, and therefore ambiguous
in meaning. The union cannot penalize its members
for not acting in accord with its dictates and avoid
responsibility for its own failures in draftsmanship or
the like. That I will not be a party to. Hence, I would
find the violations as alleged even assuming that the
picketing here did not violate the contract's no-strike
provisions."
Accordingly, I would find the violation under
either of the alternative theories advanced by me
above.
In reaching this conclusion, I am aware that there are and uill be situa-
tions where the interpretation of a no-strike clause will be necessars to
determine the scope or extent of its coverage to certain situations,. such as
sympaths strikes. See, e.g.. Garu-Hohurt
ateur (C-rporarion. 210 NL RB '42
(1974). enfd. 511 F.2d 284 iC(A. 7. 1975), but this is not one of those situa-
tions
DECISION
STATEMENT OF THE CASE
JAMES L ROSE. Administrative Law Judge: This matter
was heard I before me in St. Louis, Missouri, on January
11-12, 1977. The General Counsel's complaint alleged in
general terms that Respondent threatened certain of its
members with intraunion charges and held a hearing con-
cerning those charges because these members had refused
I Respondent's motion to correct the record in certain respects Is herchs
granted
to participate in certain picketing. It was alleged by these
acts that Respondent violated Section 8(b)(1)(A) of the Na-
tional Labor Relations Act, as amended, 29 U.S.C. § 151,
ec seq.
Upon the record as a whole, including my observation of
the witnesses, briefs, and arguments of counsel, and the
entire record in this matter I hereby make the following:
FINDINGS OF FACT
1. THE Bt:SINESS OF THE COMPANY
John Hancock Mutual Life Insurance Company is a cor-
poration engaged in the selling of life insurance and related
services throughout the United States of America, includ-
ing St. Louis, Missouri. In the course and conduct of its
business at its south St. Louis, Missouri, district office, the
facility here involved, the Company annually derives in
excess of $500,000 of which more than $50,000 is from
premiums collected in the State of Missouri and submitted
to its place of business in Massachusetts.
Respondent admits, and I find, that the Company is an
employer engaged in commerce within the meaning of Sec-
tion 2(2). (6). and (7) of the Act.
11 THE LABOR ORGANIZATION INVOLVED
The Respondent.
Insurance
Workers
International
Union, AFL-CIO, Local 60, is admitted to be, and I find
is, a labor organization within the meaning of the Act.
III
THE ALI.EGED UNFAIR LABOR PRACTICES
A. Factual Background
Respondent's parent organization, Insurance Workers
International Union, AFL CIO, Local 60 (herein called
the International) is a party to a collective-bargaining
agreement with the Company effective June 25, 1975,
through the last Wednesday of June 1978.
This contract covers a bargaining unit of all district
agents employed by the Company throughout the United
States excluding district managers, staff managers, and
clerical and supervisory employees.
There are approximately 6,000 district agents covered by
this contract working out of approximately 300 district of-
fices. The only facility involved in this matter is the St.
Louis district office, one of four district offices of the Com-
pany in the metropolitan St. Louis area.
During negotiations for this contract, the Company pro-
posed, among other things, a minimum standards clause,
the essence of which was that each district agent would
have to produce commissions of at least 50 percent of the
nationwide average. Failure would subject him to dis-
charge. The Company also proposed clarification of the
article concerning agent's duties and responsibilities to in-
clude that agents "will sell the products of the Company."
The Union advised the Company during negotiations
that the minimum standards proposal, if the Company
continued to insist on it, would be a strike issue; however,
the Union would agree to the "will sell" language. During
443
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
the final hours of bargaining, the Company capitulated on
its demand for the minimum standards. The "will sell" lan-
guage was included in the contract.
Approximately 3 or 4 months after execution of the con-
tract, however, the Company began to enforce a minimum
standards requirement similar to the one it had proposed
during negotiations.
The Union was advised that the Company began calling
in agents whose quarterly sales records showed less than 50
percent of the company average. These individuals were
warned that unless their production increased they would
be discharged. The Company also advised in writing to all
the agents whose production in 1975 was 50 percent below
average that unless their performance
improved they
would be terminated.
The International, specifically through Arthur Higgin-
son, the International vice president in charge of the John
Hancock contract, concluded that the Company's action
was a "double cross."
Accordingly, in or about February, Higginson advised
the president of each local union as well as the district
office chairman of each John Hancock district office that
the International would undertake protest demonstrations.
Such would be in the form of picketing the district offices
of the Company throughout the United States 2 hours on
each of 2 days a week. Apparently this time was picked
because under the contract (art. XXI) there are two report
days each week, normally on Tuesdays and Thursdays,
when all of the agents of a particular district come to the
district office to report sells, have meetings with the district
manager, and related activities.
Higginson, in his letter, specifically advised the local
presidents and district chairmen that any district agent
who was scheduled to have an audit, inspection, or other-
wise was scheduled specifically to work during the period
of the picketing would be excused from doing so.
In the south St. Louis district, the report days are Tues-
days and Thursdays with the agents normally being in the
office from 8:30 or 9 a.m. until about 10:30 a.m. During
these times they would do paperwork, and on Thursdays
there would be a sales meeting starting about 10:00 a.m.
and lasting one-half hour or so. It was determined by Re-
spondent to picket the south St. Louis district office from
10:30 a.m. until 12:30 p.m., on Tuesdays and Thursdays,
commencing March 18. There was, in fact, picketing dur-
ing these hours on each Tuesday and Thursday from
March 18 to April 6.
The Charging Party, Raymond James Ottomeyer, Jr., as
well as fellow employees Phillip P. Wilson, Jr., Robert
Achter, Jerry Beal, Dennis Bullock, Cecilia Cappiello, Ma-
rie Massey, Ray Pulmer, and William Stienmetz refused at
one time or another to join in the picketing. The principal
reason they gave for not picketing was that they believed
the picketing to be violative of article IV of the collective-
bargaining agreement which says, in pertinent part, "the
Union, including all Locals thereof, will neither cause, di-
rect, nor permit any member, officer or representative to
engage, participate or in any way assist in a strike or slow-
down." These individuals felt that the picketing action dur-
ing what they considered to be time they would normally
be working constituted a slowdown in violation of the con-
tract and that to engage in such activity would jeopardize
their jobs. They also questioned the International's posi-
tion with regard to the substance of the protest. Ottomeyer
testified that he felt the Company could do what it was
doing because of the "will sell" language.
For failing to join in the picketing, and not being ex-
cused therefrom, the district office committee of the south
St. Louis facility (Mitchell Assaf, chairman, Robert Ah-
sens, secretary, and William Shriner, treasurer and publici-
ty member) brought charges against them. These charges
were set for a hearing before a trial board pursuant to the
International constitution by the local union officers. The
trials of each were held on July 14, 1976. To the date of the
hearing, the district agents involved had not been advised
concerning the disposition of the charges against them.
B. The Contention of the Parties
The General Counsel contends that by threatening to
bring charges against these employees, and by actually
doing so, and trying them for violating the direction of the
International, Respondent thereby restrained and coerced
them in violation of Section 8(b)(1)(A) of the Act.
Implicit in the General Counsel's argument, although
not alleged in the complaint, is that the picketing ordered
by the International was in fact violative of the contract.
Hence, the picketing was unprotected activity and to disci-
pline an employee because he refuses to engage in unpro-
tected activity violates Section 8(b)(l)(A).
Respondent contends that it is privileged by virtue of the
proviso to Section 8(b)(1)(A) to discipline its members.
Thus, its threats to do so as well as actually trying the
employees in question is not violative of Section 8(b)(l)(A).
Implicit in Respondent's contention is the picketing, or-
dered by the International and actually performed by
members of Respondent, was not violative of the contract.
C. ,4 nalvsis and Concluding Findings
Section 8(b)( 1)(A) does not prohibit a union from discip-
lining its members, so long as the reason for the discipline
is not violative of some overriding public policy 2 such as
where the member files a charge with the Board; 3 or where
the member refused to honor a sister local's picket line,
because to have done so would have been violative of the
no-strike clause of a contract; 4 or where members were
disciplined for crossing their union's picket line and per-
forming work which, in a 10(k) proceeding, the Board said
was theirs.9
If the activity here, directed by the International and
engaged in by Respondent through its district committee
and the district agents, was in violation of the collective-
bargaining agreement then Respondent could not lawfully
threaten or discipline those members who refused to partic-
- Sofieldr, et ai ( Weonsim
Motor Corpl v. N.L.R.B., 394 U.S. 423 (1969).
Local 138. Intrrnationul Union of Operauing
Engineers, AFL CIO
(( harle S Skura), 148 NLRB 679 (1964)
4 L.ocal 12419, International Union o f Dist.ri.
50, United Mine WBorkers of
.4nlerica (Natlional Grinding W'heel ( mnlpanv, In ), 176 NLRB 628 (1969).
International Alliance Olf heatrical Stage Emplorees IRKO General, Inc.
4 OR I i' Division). 223 NLRB 959 (1976)
444
INSURANCE WORKERS INTL. UNION, LOCAL 60
ipate. 6 If, on the other hand, the activity was not in breach
of the contract, or some other overriding public policy.
then the Union might threaten to discipline its members
and in fact do so without violating Section 8(b)(I)(A) of
the Act.7
The General Counsel does not allege any act violative of
an overriding public policy other than requiring employees
to picket during times of "normal business activity." It is
alleged only that the picketing by employees at the times
indicated breached the contract.
Thus, the dispositive issue is whether the picketing, in
fact, did not breach the contract. The alleged breach of
contract, however, is not an unfair labor practice, thus,
whether there is a contractual relationship between Re-
spondent and the Company is not material. Respondent is
not alleged to have breached the contract in violation of
the Act. Respondent is alleged to have urged employees to
breach the contract and when they refused, disciplined
them for the refusal.
The contractual language relied on by the General
Counsel is in article IV which prohibits the International or
its locals from engaging in "a strike or slowdown." Article
IV continues:
The term "slowdown" as used in this Article shall
mean, but not by way of limitation, concerted action
by a group of Agents for the purpose of coercing the
Company into granting their demands by the willful
cessation or reduction of normal business activity.
There is no question here but that the picketing was con-
certed action by a group of agents for the purpose of coerc-
ing the Company into rescinding its imposition of the mini-
mum standards requirement. Indeed, the picketing was
apparently successful inasmuch as the Company did in fact
rescind the minimum standards requirement.
Thus, the issue is whether by picketing the employees
engaged in a "slowdown" within the meaning of the con-
tract.
While a literal reading of article IV could conceivably
make the picketing a breach of the contract, for the reasons
hereinafter given, I conclude that the protest demonstra-
tion was not violative of the collective-bargaining agree-
ment.
Compensation of Company's employees specifically, and
in this industry generally, is on a commission basis. One's
salary is therefore tied directly to the number and value of
policies he sells. This in turn is dependent directly upon the
number of prospective purchasers he talks to. The number
of prospects he talks to is tied directly to the amount of
prospecting he does-telephoning or otherwise contacting
people who might be interested in purchasing insurance.
The more hours each week an agent works, the greater
his likelihood of success. While there are some unproduc-
tive hours (e.g., after 9 p.m.) the number of hours an agent
can work each week is limited principally by his individual
Co-mmunications .W orkcrs j.4 erilca, .4 Fl. ('10 and ,Ve i I r, Local a ,
11()., (ommuniiation,
I{orAt'r,
A
I .4mrira. .41t. ('10 204 NlRH 782
(1973).
'
LRB
1.
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,
( hbalmiers .fanuftituring ( o,,,ipan,
388
t S
175
(1967)
stamina. It follows, therefore, that some insurance agents
work more hours than others and that, in any event, the
work hours of insurance agents vary to some extent de-
pending on the needs of the consumer public and the
agents' capacity.
Typically during the daytime hours--from approximate-
ly 9 a.m. until 4 or 5 p.m.
an agent does his "prospecting"
as well as a certain amount of required paperwork involv-
ing previously sold policies. In the evenings, from 6:30 or
so. the agent makes personal visits to people with whom he
had arranged appointments. This is done most evenings,
Mondays through Fridays, and occasionally on Saturdays.
Some agents (do work a few hours on Saturdays and occa-
sionally on Sundays, again depending on the particular
agent's capacity and desire.
Other than the two specific reporting days and an occa-
sional special occasion, the agents are not required to be at
the district office. The district debit agent is, to an extent,
an exception to this in that he works out of the district
office, whereas the others work out of their homes. Though
he is available to service walk-in accounts and receive pay-
ments. there are also clerks available for these purposes.
But he also must, and does, spend much of his time out of
the office. Thus, I find that for purposes of this case, the
district debit agent was no different from the others.
While there are no uniform normal business hours for
insurance agents, the general pattern appears to be 10 or 12
hours a day. Monday through Friday, and a few hours on
the weekends. Again depending on the particular agent,
time is taken off for lunch, supper, as well as other activi-
ties, including attending union meetings.
The question, therefore, is whether by picketing on Tues-
days and Thursdays from 10:30 a.m. to 12:30 p.m., the
employees were engaged in a "slowdown," that is, a "re-
duction in normal business activity."
From the totality of the record it is apparent that had
they not been involved in picketing during the times indi-
cated. they would in almost every case have been engaged
in some activity involved in the business of selling life in-
surance for the Company. The testimony of Ottomeyer,
Cappiello, and Wilson is that they refused to participate in
the picketing and, in fact, during the hours of the picketing
did engage in work activity on behalf of the Company.
Wilson testified, for instance, that he picketed on the first
day, determined that it was not a good idea, and on the
other days did his usual work which included being at the
district office as the district debit agent. On the other hand,
the picketing employees might very well have used these
particular blocks of time for personal business.
In any event, that the employees may very well have had
work which could have been done during the picketing
hours does not necessarily mean that by picketing they
were involved in a "reduction of normal business activity."
Since the hours and amount of "business activity" vary
between agents, what is "normal" is necessarily ambigu-
ous. The precise meaning of the work "slowdown" in the
contract, therefore, is open to interpretation.
The only meaningful evidence brought forth at the hear-
ing concerning what this clause means was the testimony
of Higginson concerning its origin. He testified that in the
years prior to this particular clause having been agreed to.
445
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
occasionally agents would concertedly determine, for in-
stance, not to report all their sales of the previous week or
concertedly refuse not to go to the district meeting. It was
this sort of thing that the Company wanted stopped.
This type of activity, which the parties agreed to pro-
hibit, is not what Higginson referred to as "lunch demon-
strations," wherein the agents, during the lunch hour or
similar short periods of time, would picket or otherwise
protest company actions. Higginson's undenied testimony
is that "lunch demonstrations" were not prohibited by arti-
cle IV.
In addition, Higginson instructed the local unions that
the time for this particular protest should be set as conven-
iently as possible to the particular district's reporting hours
but should not interfere with them, and that members who
had specific assignments for the Company should be ex-
cused from the picketing. (Ottomeyer was in fact excused
on the two occasions he was out of town on company busi-
ness.)
It is apparent that the International, and presumably Re-
spondent, sought to demonstrate against the Company but
without requiring employees to be away from a specific job
assignment. As to prospecting, meeting with prospective
customers and the like, the individual agent could control
the precise time of this work. Therefore neither picketing,
nor doing anything else during those specific hours, would
necessarily interefere with their ultimately doing that work.
The thrust of the activity here was not that the employ-
ees were refusing to do all their work. They were not with-
holding any services. They simply were not doing any work
from 10:30 a.m. to 12:30 p.m. on Tuesdays and Thursdays
in order to picket the company office. The fact that no
calls, or whatever, were made during these times was inci-
dental. The employees were not protesting by refusing to
work-they were protesting by picketing. Such was the
International's instruction and such, I find, was the case.
To conclude that the picketing here was violative of the
slowdown proscription of the contract would mean that at
no time during the day or night could Respondent direct its
members to engage in protest picketing of the Company.
This is so because a given agent might conceivably have
something to do involving the Company's business. In
short, to agree with the General Counsel's contention that
this picketing was violative of the contract would mean
that from the hours from 8 a.m. until 9 p.m., or so, Respon-
dent could not demonstrate or do anything involving the
participation of its members. It could not, for instance,
hold union meetings, which it does in the afternoons, or
have agents appear at legislative hearings, as other locals
have done.
To interpret the contract so restrictively would be to
conclude that the International willfully negotiated away
its right to engage in protest activity against the Company,
where, as in the instant case, it had strong reason to believe
that the Company was itself breaching the contract. Upon
the state of this record and reading the clause in question I
cannot make such a finding. I cannot conclude from the
contract language that the International give up its right to
engage in protest picketing on the very limited basis that it
did in this case. This superimposed on Higginson's testi-
mony concerning what the parties actually meant when
they negotiated this language leads me to conclude that
picketing during normal business hours, but at times when
the district agents are not required specifically to be work-
ing, is not a violation of the contract. The picketing was
therefore not unprotected activity. Accordingly, Respon-
dent could lawfully threaten to discipline and actually dis-
cipline its members who refused to participate.
THE REMEDY
Having found that Respondent did not violate Section
8(b)(1)(A) of the Act, I will recommend that an order be
issued dismissing the complaint in its entirety.
CONCLUSIONS OF LAW
1. John Hancock Mutual Life Insurance Company is an
employer engaged in commerce within the meaning of Sec-
tion 2(2), (6), and (7) of the Act.
2. Insurance Workers International Union, AFL-CIO,
Local 60, is a labor organization within the meaning of
Section 2(5) of the Act.
3. By picketing the Company's south St. Louis district
office from 10:30 a.m. to 12:30 p.m., on Tuesdays and
Thursdays, from March 18 to April 6, 1976, Respondent
did not breach, nor require its employee-members to
breach the contract Insurance Workers
International
Union, AFL-CIO, has with the John Hancock Mutual Life
Insurance Company.
4. By threatening to discipline and actually disciplining
the employees named in the complaint because they re-
fused to participate in the picketing described above, Re-
spondent did not violate Section 8(b)(1)(A) of the Act.
Upon the foregoing findings and conclusions, the entire
record in this case and pursuant to provisions of Section
10(c) of the Act, I hereby issue the following recom-
mended:
ORDER 8
The complaint is hereby dismissed in its entirety.
In the event no exceptions are filed as provided by Sec
102.46 of the
Rules and Regulations of the National Labor Relations Board. the findings.
conclusions. and recommended Order herein shall, as provided in Sec.
102.48 of the Rules and Regulations. be adopted by the Board and become
its findings. conclusions, and Order, and all objections thereto shall be
deemed waived for all purposes.
446