Hoover Ball and Bearing Co.

428 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Tote Systems Division, Hoover Ball and Bearing Company and Local Lodge 543 and Local Lodge 2289, International Association of Machinists and Aerospace Workers, AFL-CIO (Jointly). Case 17-CA-4267 December 23, 1970 DECISION AND ORDER BY CHAIRMAN MILLER AND MEMBERS BROWN AND JENKINS Upon a charge and amended charge filedjointly by Local Lodge 543 and Local Lodge 2289, International Association of Machinists and Aerospace Workers, AFL-CIO, hereafter referred to individually as Local 543 and Local 2289, respectively, and jointly as Charging Party, the General Counsel for the National Labor Relations Board, by the Acting Regional Director for Region 17, issued a complaint dated June 16, 1970, against Respondent, Tote Systems Division, Hoover Ball and Bearing Company. The complaint alleges, in substance, that Respondent had engaged in and was engaging in certain unfair labor practices within the meaning of Section 8(a)(5) and (1) and Section 2(6) and (7) of the National Labor Relations Act, as amended, by refusing to and continuing to refuse to bargain collectively with Charging Party as the duly designated representative of its employees for purposes of collective bargaining by, unilaterally and without notice to Charging Party, suspending its practice of distributing Christmas gift certificates to all employees at its Beatrice, Nebraska, and Lenox, Iowa, plants. Respondent filed a timely answer denying the commission of any unfair labor practices and affirmatively pleading that while it did not distribute the Christmas gifts as the complaint alleges, such gifts were discretionary and not a subject of collective bargaining. On July 16, 1970, Respondent, Charging Party, and counsel for the General Counsel jointly filed with the Board in Washington, D.C., a "Motion to Transfer Proceeding to the Board and Stipulation of Parties." The motion stated that the parties agreed that the stipulation of facts, together with the attached exhibits, should constitute the entire record; that the parties waive their right to a hearing before a Trial Examiner and the issuance of a Trial Examiner's Decision; and that the case be submitted directly to the Board for findings of fact, conclusions of law, and for decision and order. On July 23, 1970, the Board approved the aforesaid stipulation, and transferred the matter to the Board. Thereafter, the General Counsel and Respondent filed briefs with the Board. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three-member panel. Upon the basis of the aforesaid stipulation, the briefs, and the entire record in this case, the Board makes the following: FINDINGS OF FACT I. JURISDICTION Respondent, a Delaware corporation, is engaged in the manufacture of sheet metal products, including material handling systems, fertilizer spreaders and applicators, and beer barrels at its plants in Beatrice, Nebraska, and Lenox, Iowa. During the past year, in the course and conduct of its business, Respondent shipped goods valued in excess of $50,000 from both its Beatrice, Nebraska, and Lenox, Iowa, plants directly to points located outside the States of Nebraska and Iowa, respectively, and received goods valued in excess of $50,000 for its separate plants directly from points outside the State of their respective locations. We find that Respondent is, and at all times material herein has been, an employer engaged in commerce and in operations affecting commerce within the meaning of Section 2(6) and (7) of the Act, and that it will effectuate the policies of the Act to assert jurisdiction herein. II. THE LABOR ORGANIZATIONS INVOLVED Local Lodge 543 and Local Lodge 2289 , Interna- tional Association of Machinists and Aerospace Workers, AFL-CIO, are labor organizations within the meaning of Section 2(5) of the Act. III. THE UNFAIR LABOR PRACTICES The stipulated facts show that Respondent pur- chased its Beatrice, Nebraska, plant in May 1960. Production and maintenance employees were then represented, and continue to be represented, for collective-bargaining purposes by Local 543. The Lenox, Iowa, plant was purchased by Respondent in April 1965; Local 2289 did not become the represent- ative for collective-bargaining purposes of Respon- dent's production and maintenance employees until March 1967. Separate collective-bargaining agree- ments between Respondent and respective locals were in effect at all times material herein. The stipulated facts indicate that Respondent adopted the practice of the predecessor employer at the Beatrice plant by staging a Christmas party for all employees in 1960. The party consisted of a family dinner and gifts for children of employees. Respon- 187 NLRB No. 56 TOTE SYSTEMS DIV., HOOVER dent changed this practice in 1962 by giving each employee , at his choice, a ham or a turkey . In 1964, Respondent again changed the nature of its Christmas gift (after consulting with some of its employees) whereby each employee at the Beatrice plant received a gift certificate valued at $15 . All employees, including office, management, and other nonunit as well as unit employees, received the same gift certificate, regardless of their particularjob , wage rate or salary, seniority, or work performance . The only condition was that the recipient of the gift certificate had to be on Respondent 's payroll on the day the certificates were distributed . The amount of the gift certificate was unilaterally determined by Respon- dent by dividing the cost incurred by Respondent in its last Christmas party by the number of employees employed at that time at the Beatrice plant . Respon- dent has not withheld Federal income taxes from the amount of the gift certificates . The gift certificates were distributed by mailing them directly to the recipient's home, accompanied by a letter signed by Respondent's president. Respondent also gave identical gift certificates, under identical circumstances , to its employees at the Lenox , Iowa, plant beginning with the Christmas of 1965. The practice of distributing such gift certificates at both the Beatrice and Lenox plants was continuous through Christmas 1968. The Respondent's practice of giving these gift certificates has never been a subject of collective bargaining during any negotiation between either Local 543 or Local 2289. No reference to gift certificates can be found in either of the current collective-bargaining agreements covering unit em- ployees at the Beatrice and Lenox plants. The Respondent did not notify and attempt to bargain 429 with the Charging Party concerning its decision to refrain from giving the gift certificates in 1969 to its employees at each of the aforesaid plants . In this regard, the Respondent's practice has not been eliminated but merely suspended in 1969 for econom- ic reasons. The facts stipulated in this case support Respon- dent's contention that the Christmas gift certificates were merely discretionary gifts and not compensa- tion. The subject of Christmas gift certificates has been regarded , throughout the course of the collec- tive-bargaining history at both plants, as a matter resting solely within the discretion of Respondent. Further, the practice of Christmas gifts was unilateral- ly instituted and unilaterally changed in form by Respondent and has never been made a subject of collective bargaining . It is also apparent from the record that the gift certificates were in no way related to an employee's job performance, hours worked, or seniority . The gift certificates were nominal in amount and were distributed to all employees without regard to their tenure or position . We find, upon the foregoing facts, that the Christmas gift certificates are not terms and conditions of employment , and that Respondent's decision to suspend , and its suspension of, the distribution of Christmas gift certificates in 1969 to all employees for economic reasons did not violate Section 8(a)(5) and ( 1) of the Act. Accordingly, we shall dismiss the complaint in its entirety. 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.