173 NLRB 19
Dietz Forge Co. of Tennessee
DIETZ FORGE CO.
19
Dietz Forge Company of Tennessee and International
Brotherhood of Boilermakers, Iron Shipbuilders,
Blacksmiths, Forgers and Helpers, AFL-CIO, and
its Local 263
Dietz Forge Company of Tennessee and W. David
Stinson,
Jr.,
Attorney,
Petitioner
and Inter-
national Brotherhood of Boilermakers, Iron Ship-
builders, Blacksmiths, Forgers and Helpers, AFL-
CIO
Dietz Forge Company of Tennessee , Petitioner and
International Brotherhood of Boilermakers, Iron
Shipbuilders ,
Blacksmiths , Forgers and Helpers,
AFL-CIO. Cases 26-CA-2752, 26-CA-2992,
26-RD-153, and 26-RM-230
September 27, 1968
DECISION, ORDER, AND CERTIFICATION OF
RESULTS OF ELECTION
By CHAIRMAN MCCULLOCH AND MEMBERS
FANNING AND BROWN
On July 10, 1968, Trial Examiner Lowell Goerlich
issued his Decision in the above proceeding, finding
that the Respondent had engaged in and was engaging
in certain unfair labor practices and recommending
that it cease and desist therefrom and take certain
affirmative action, as set forth in the attached Trial
Examiner's Decision. The Trial Examiner also found
that the Respondent had not engaged in certain other
alleged unfair labor practices and recommended dis-
missal thereof. Thereafter, the General Counsel and
the Respondent filed exceptions to the Trial Examin-
er's Decision, and briefs in support of their excep-
tions.
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 these cases 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 these cases, and hereby adopts the
findings, conclusions, and recommendations' of the
Trial Examiner, only to the extent consistent here-
with.
The Trial Examiner concluded that the Respondent
violated Section 8(a)(1) and (5) of the Act by
refusing to bargain with the incumbent Union. This
conclusion was based on his finding that employee
Mills was the Respondent's agent, and that, by virtue
of Mills' solicitation of employee signatures to union
disaffection petitions and promises of benefits to
employees, the Respondent engaged in conduct which
negated any good-faith doubt as to the Union's
majority status. We find merit in the Respondent's
exceptions to these findings.
The record discloses that, although prior to July
18, 1966, when Ralph Goldworthy was made shop
foreman,
Mills
may have exercised a supervisor's
powers, he had no supervisory authority at any time
material herein.2 In addition, there is no evidence
that the Respondent knew of or authorized the
circulation of the petitions by Mills3 or that em-
ployees might reasonably believe the Respondent
condoned or had authorized Mills' activities. Nor does
the fact that Manager Dietz solicited an employee
signature after the petition had been turned over to
him to show that he had prior knowledge of the
petition or that he had fostered it. In these circum-
stances, the acceptance of a disaffection petition by
the
Respondent does not retroactively constitute
Mills an agent.
It is clear from the evidence that no grievances
were ever filed by the Union during the life of the
collective-bargaining
agreement.
Furthermore, the
Union had failed to avail itself of an opportunity
given to it by the Respondent to visit the plant once a
month to collect dues. In fact, no Union represent-
ative or Union steward ever attempted to meet or did
meet with the Respondent at the plant during the life
of the contract to discuss the agreement or any terms
or conditions of employment of the Respondent's
employees. In addition, the two Union stewards in
the plant had signed an earlier decertification petition
and told Manager Dietz in April and November 1967,
that they did not want the Union anymore. Moreover,
the Union's margin of victory in the election had been
extremely close. We find that these facts establish
that the Respondent had a reasonable basis for
doubting the Union's continuing majority when it
filed
the
RM petition on November 13, 1967.
Accordingly, we overrule the Union's objections to
the election conducted in Cases 26-RD-153 and
26-RM-230 on January 11 and 12, 1968, and shall
dismiss
the
consolidated
complaint in
Cases
26-CA-2752 and 26-CA-2992 in its entirety. As
the Union failed to receive a majority of the valid
I In view of the decision herein we do not deem it necessary to
consider the General Counsel 's exception to the remedy recommended
by the Trial Examiner.
2 In fact, the record shows that the employees did not consider Mills
to be a supervisor
173 NLRB No. 5
3 The "small shop " theory is insufficient to support a finding of
agency of a rank and file employee absent some direct evidence of the
Respondent 's awareness of the conduct , such as testimony that the
Respondent 's supervisors had knowledge of the activities of the alleged
agent. Cf. Birmingham Publishing Company, 118 NLRB 1380 , affil. 262
F.2d 2 (C.A. 5).
20
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ballots
cast,
we shall certify the results of the
election.
ORDER
Pursuant to Section 10(c) of the National Labor
Relations
Act, as amended, the National Labor
Relations Board hereby orders that the complaint be,
and it hereby is, dismissed in its entirety.
CERTIFICATION OF RESULTS OF ELECTION
It is hereby certified that a majority of the valid
ballots
cast in the election conducted in Cases
26-RD-153 and 26-RM-230 has not been cast for
International
Brotherhood
of Boilermakers, Iron
Shipbuilders,
Blacksmiths,
Forgers
and
Helpers,
AFL-CIO, and that the said labor organization is not
the exclusive bargaining representative of the em-
ployees in the unit found appropriate, within the
meaning of Section 9(a) of the National Labor
Relations Act, as amended.
TRIAL EXAMINER'S DECISION
STATEMENT OF THE CASE
LOWELL GOERLICH, Trial Examiner. On November 13,
1967, the Dietz Forge Company of Tennessee, herein some-
times called the Respondent or the Employer, filed a timely
petition for an election in Case 26-RM-230 and on Novem-
ber 21, 1967, a decertification petition was filed in Case
26-RD-153. Based upon these petitions and pursuant to a
stipulation for certification upon consent election approved by
the Regional Director for Region 26 of the National Labor
Relations Board (herein referred to as the Board) on December
8, 1967, a secret-ballot election was conducted on January 11
and 12, 1968, among certain employees` of the employer at
its Memphis, Tennessee, plant The tally of ballots showed that
there were approximately 27 eligible voters and that 27 ballots
were cast, of which 11 were for the Union, 14 were against the
Union, and 2 were challenged. On January 18, 1968, the
International Brotherhood of Boilermakers, Iron Shipbuilders,
Blacksmiths, Forgers and Helpers, AFL-CIO, filed timely
objections to the conduct affecting the results of the election.
The Regional Director caused an investigation of the objec-
tions to be made and thereafter, on March 8, 1968, issued and
served on the parties his report on objections. In his report the
Regional Director recommended to the Board that objections
1, 2, 4, 7, and 8 be overruled. He further recommended that
Cases 26-RD-153 and 26-RM-230 be consolidated with
Case 26-CA-2992 in which a complaint was to be issued, for
the purpose of resolving the issues raised by objections 3, 5,
and 6, and additional alleged interference which were the same
as certain conduct alleged in Case 26-CA-2992 involving the
same employer.
No exceptions to the Regional Director's report were filed
by any of the parties within the time provided therefor
On March 26, 1968, the Board adopted the Regional
Director's recommendations as contained in his report. The
Board ordered that a hearing be held for the purpose of
receiving evidence to resolve the issues raised by the Union's
objections 3, 5, and 6 and the additional alleged interference 2
and that such hearing be consolidated with any hearing on the
complaint to be issued in Case 26-CA-2992 and held before a
Trial Examiner to be designated by the Chief Trial Examiner
The matter was referred to the Regional Director for Region
26 for the purpose of arranging such hearing
Thereafter, on March 29, 1968, the Regional Director issued
an
order consolidating cases, consolidated complaint, and
notice of hearing in Cases 26-CA-2752, 26-CA-2992,
26-RM-230, and 26-RD-153.
The charges in consolidated Cases 26-CA-27523 and
26-CA-2992 were filed by the International Brotherhood of
Boilermakers, Iron Shipbuilders, Blacksmiths, Forgers and
Helpers, AFL-CIO and its Local 263 herein referred to as the
Union on April 26, 1967, and January 31, 1968, respectively.
In the consolidated complaint it was alleged that the Re-
spondent, Dietz Forge Company of Tennessee, had engaged
and was engaging in unfair labor practices affecting commerce
within the meaning of Section 8(a)(1) and (5) of the National
Labor Relations Act, as amended, herein called the Act The
Respondent filed timely answer denying that it had engaged in
or was engaging in the unfair labor practices alleged.
The cases came on to be heard on May 15 and 16, 1968, at
Memphis, Tennessee Each party was afforded a full opportu-
nity to be heard, to call, examine and cross-examine witnesses,
to argue orally on the record, to submit proposed findings of
fact and conclusions of law, and to file briefs All briefs have
been reviewed and considered by the Trial Examin er.4
Upon the whole record and upon his observation of the
witnesses, the Trial Examiner makes the following
FINDINGS OF FACT AND CONCLUSIONS
1. THE BUSINESS OF THE RESPONDENT
Respondent Dietz Forge Company of Tennessee is now and
has been at all times material herein, a Tennessee corporation
with its principal plant and place of business in Memphis,
Tennessee, where it is engaged in the manufacture, sale, and
distribution
of forge metal products. During the past 12
months Respondent, in the course and conduct of its business
operations, shipped goods valued in excess of $50,000 from its
1 All production and maintenance employees including inspectors at
the Employer 's Memphis , Tennessee , plant, excluding all office clerical
employees , guards , professional employees and supervisors as defined in
the Act
2 Objections 3, 5, and 6 were as follows
The petition to decertify the Union was solicited by an employee
who the employees know to be a supervisory employee or a
Company agent
Employees were told by the Company if the Union was voted out
they would get a substantial raise and the piece work prices would
be straightened out
Some employees were told if the Union was voted out the Negro
employees would be fired
3 A settlement agreement in Case 26-CA-2752 was vacated and set
aside by the Regional Director.
4 W David Stinson, Jr , attorney, petitioner in Case 26-RD-153,
although served with notice of the proceedings , did not appear at the
hearing.
DIETZ FORGE CO.
21
Memphis, Tennessee, plant, directly to points outside the State
of Tennessee and during the same period Respondent pur-
chased goods and materials valued in excess of $50,000
directly from points outside the State of Tennessee. The Trial
Examiner finds, as is admitted by the Respondent, that at all
times
material
herein the
Respondent was an employer
engaged in commerce within the meaning of Section 2(6) and
(7) of the Act.
II. THE LABOR ORGANIZATION INVOLVED
International
Brotherhood of Boilermakers, Iron Ship-
builders, Blacksmiths, Forgers and Helpers, AFL-CIO, and its
Local 263,5 are now and have been at all times material herein
labor organizations within the meaning of Section 2(5) of the
Act.
III. THE UNFAIR LABOR PRACTICES
First
On or about June 10, 1966, a majority of the
employees of the employer in an appropriate unit, by a
secret-ballot election6 conducted under the supervision of the
Regional Director for Region 26 designated and selected the
Union as their representative for the purposes of collective
bargaining with the Respondent, and on or about June 20,
1966, the Regional Director certified the Union as the
exclusive bargaining representative of the employees in said
unit. Thereafter the Respondent and the Union commenced
negotiations Sometime "around January 21st" the agreement
reached was ratified by the union membership The agreement
was "put in effect [by the Respondent] approximately the
first week in February of 1967, made retroactive to January
the 23rd of '67." Nevertheless, the Respondent, rejecting the
advice of its attorney, refused to sign the agreement, asserting
that if it signed the agreement its employees would strike. The
Union filed unfair labor practice charges on April 26, 1967, in
Case 26-CA-2752 On or about April 27 employee Floyd
Mills circulated a union disaffection petition which was used in
support of the petition filed in Case 26-RD-153.7 Both
Stewards Willie Davidson and Robert Pounders signed the
petition 8
Pursuant to a settlement agreement approved by the
Regional Director on or about June 7, 1967, the Respondent
signed the contract which by its terms was to expire at
midnight January 22, 1968.
While the Respondent refused to give the Union a "check-
off" clause in the agreement the Respondent agreed that the
Ur'lon be allowed to use its offices once a month for the
collection of dues. During the life of the agreement the Union
did not exercise this privilege.
After the Union became the bargaining representative the
record reveals that none of the union representatives ever filed
a grievance with the Respondent on behalf of any employee
from the date of the election through the life of the
collective-bargaining agreement 9
During the year of 1967 International Union Representative
Joseph Talarico visited the Respondent's plant on only one
occasion. The purpose of this visit by Talarico was to ascertain
whether the Respondent was fully complying with the
settlement agreement it had signed in Case 26-CA-2752.
The Respondent, nevertheless, received a request dated
November 6, 1967, from the Union to negotiate a new
collective-bargaining agreement. By letter dated November 9
1967, the Employer's attorney responded in part
Naturally, it is our client's desire to meet with you at any
mutually convenient time if you do, in fact, represent a
majority of the production and maintenance employees at
Dietz Forge Company. It is our sincere belief that you do
not represent a majority of the said employees and,
accordingly, we have filed a petition with the National
Labor Relations Board this date. A copy of this petition is
enclosed for your convenience.' 0
The Employer's petition was filed on November 13, 1967.
By letter dated November 16, 1967, the Respondent was
advised that, in that the Respondent had not submitted in
support of its petition sufficient evidence "to establish that the
Employer had some reasonable grounds for believing that the
union has lost its majority status since certification, in
accordance with the principles established in United States
Gypsum Company, 157 NLRB 652... if the Petition is not
withdrawn by 5 00 p.m. on Monday, November 20, 1967, it
will be dismissed."
In response to the suggestion of dismissal on November 20,
1967, the Employer filed with the Board a petition of union
disaffection signed by 15 employees which the parties stipu-
lated had been circulated by employee Floyd Mills on
November 17, 1967.11
On or about November 21, 1)67, employee Mills circulated
another union disaffection petition which was used in support
of the decertification petition filed with the
Board on
November 21, 1967, in Case 26-RD-153.12
Second The General Counsel claims that the Respondent is
saddled with employee Mills' solicitations and other alleged
unlawful activities either because Mills was a supervisorl3 or
an agent within the meaning of the Act.
5 Local 263 together with the International was a party 'o the
contract executed on or about June 7, 1967 It is named as a party to
these proceedings
6 The election results were 15 for the Union and 13 against the
Union.
7 The parties so stipulated.
8 Plant Manager Billy C Dietz testified without contradiction that
he "had been told by the union stewards , Willie Davidson and Robert
Pounders , that they didn 't want anymore to do with the union."
9 Evidence establishes that no dues were collected by the Union
after February 1967. This evidence was excluded by the Trial Examiner
during the hearing However , the Respondent has since moved to make
it a part of the record . There being no opposition filed thereto the
motion is granted
10 The record is barren of any credible evidence that the Respond-
ent at any time thereafter assumed any obligations imposed by Section
8(a)(5) of the Act to bargain collectively
11 The petition contained the following language
Bill [Billy C Dietz , Manager of the Respondent]
As you know we have told you time & time again we do not
want the union in the shop.
1 2 The parties so stipulated
13 The Trial Examiner at the hearing considered whether or not the
General Counsel had established a prima facie case supporting a finding
that Mills was a supervisor within the meaning of the statute at the time
the alleged unfair labor practices were alleged to have been committed.
The Trial Examiner found that the General Counsel had not established
a prima facie case and dismissed those portions of the complaint which
referred to Mills as an alleged supervisor of the Respondent
However the record discloses that prior to July 18 , 1966, when
Ralph Goldworthy was made shop foreman, Mills may have exercised a
supervisor 's powers
22
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
The Act provides in Section 2(13) "In determining whether
any person is acting as an agent of another person so as to
make such other person responsible for his acts, the question
of whether the specific acts performed were actually author-
ized or subsequently ratified shall not be controlling." The
Supreme Court teaches in International Association of Ma-
chinists, Lodge 35 [Sernck Corp.] v N.L R.B., 311 U.S 72,
80, that an employer may be held accountable "even though
the acts of the so-called agents were not expressly authorized
or might not be attributable to him on strict application of the
rules of Respondent superior." The Supreme Court opined
further "We are dealing here not with private rights
nor
with technical concepts pertinent to an employer's legal
responsibility to third persons for acts of his servants, but with
a
clear legislative
policy to free the collective bargaining
process from all taint of an employer's compulsion, domi-
nation, or influence The existence of that interference must
be determined by careful scrutiny of all the factors, often
subtle, which restrain the employees' choice and for which the
employer may fairly be said to be responsible. Thus, where the
employees would have just cause to believe that solicitors
professedly for a labor organization were acting for and on
behalf of the management, the Board would be justified in
concluding that they did not have the complete and unham-
pered freedom of choice which the Act contemplates."
Facts touching upon the alleged agency of Mills are as
follows
Mills openly circulated the petitions referred to above on
the Employer's time and property under circumstances in
which management representatives were, by their presence, m
a position where they could have observed Mills' activities. The
Respondent's shop was small with an employee complement of
approximately 27 employees Manager Billy C. Dietz admitted
that he had seen the two petitions. On "a Friday evening" he
testified that he saw the petition circulated on or about
November 17, 1967, and that on the "next Monday of the
following week" he viewed a petition of similar character
There is no dispute in the record that Mills delivered the
petition circulated around November 17, 1967, to Manager
Dietz on Friday, November 17, 1967.
In soliciting signatures for the petitions, Mills made certain
representations to the employees contacted To Steward Willie
Davidson he said (when Davidson indicated that he was not
going to sign the petition circulated around November 17),
"Well, these names on here, Bill Dietz will see them and he'll
remember them for a long time." Mills also told Davidson that
"if the employees voted the union out he'd guarantee [them]
a good raise " About 2 weeks before the election Davidson
conversed further with Mills at which time Mills told him, at
his place of employment, that "if [the employees] get rid of
this union [they would] get more money, he'd guarantee
[them] more money, and [they would] get rid of all the
Niggers and anything else they wanted like that." Mills said
14 During the Christmas holidays the employer had engaged an
integrated
party for its employees
A substantial number of the
Respondent's employees were Negroes.
15 Dietz admitted that the petition had been given to him by Mills
In
certain
aspects
his testimony ,
however,
differed from that of
Davidson
Under the circumstances the Trial Examiner views Dietz'
that he would talk to "Bill Dietz and see that [the employees]
got the raise." Mills commented further that "if we'd get rid of
the Union we'd get rid of the Niggers, we could have parties"4
like we wanted them, and we could get more money, and it
would be a better place to work." During this conversation
employees Ball and Myles were present.
Mills asked Henry Roane to sign a union disaffection
petition sometime in the fall. After he indicated a reluctance,
Mills said "Well, if you get the union out you'll get more pay."
Mills
also
talked to employee Roane "in November or
December " The subject of money came up. Mills said " ... if
the union was voted out, if the union wasn't in [Roane would]
get more money, if they put the union out."
When Mills solicited employee Paul Taylor he said to him,
"Sign this piece of paper and we'll get rid of the Union, get it
out of the shop."
Mills commented to several employees during the "general
time period" of the election that "he couldn't get no raises
there, that the Union and the Labor Board, and everything,
had the wages all tied up, and that if everybody would just get
together and get rid of the union [the employees would] all be
better off, and get more money."
On the evening of Friday, November 17, 1967, at quitting
time, Mills approached Steward Davidson again about signing
the petition. Davidson refused to sign and told Mills that he
did not believe his signature was "necessary." Mills left and
proceeded to the office with the petition Shortly thereafter
Davidson went to the office to pick up a check. Mills, Manager
Dietz, and Elston S. Vaughn were present Davidson said, "Bill,
I didn't sign that petition, I didn't think you needed my
signature " Dietz responded, "I need all the signatures I can
get " To which Davidson replied, "Well, let me have it and I'll
sign it." Dietz went to a safe, procured the petition and
handed it to Davidson. Davidson signed the petition and Dietz
returned it to the safe. Davidson's signature is the last one
appearing on the petition.' 5 Some time later Davidson asked
Mills for a copy of the petition, commenting that he had heard
that the signers were going to have to pay $50 each "to a
lawyer." Mills responded that he would get him a copy. Later
he advised Davidson that "Bill says there wasn't no copy "
Mills said that he (Mills) was paying for "this lawyer" and that
"the employees don't have to pay one penny."
The petition, which was handed to Davidson by Dietz
and signed in Dietz' presence, was the same petition which was
presented to the National Labor Relations Board in support of
the Company's petition filed in Case 26-RM-230.
On December 22, 1967, while some of the employees were
"eating dinner", Mills commented to Davidson, "Looks like he
would give us a half day off ... for our shopping for
Christmas." "[0] ne word brought on another" and Mills said,
"I'll see if I can't get it off for ybu " Mills returned to the die
room where several employees were eating lunch and according
to Davidson said, `Bill said that we could have the half a day
testimony as less plausible and is convinced that the incident occurred
as described by Davidson In this respect Dietz is discredited. Neither
Mills nor Vaughn were called for testimony Vaughn was one of the
persons designated by the Respondent to remain in the hearing room
pursuant to the sequestration of witnesses rule
DIETZ FORGE CO.
off " According to employee Myles, he heard Mills say, "Well,
we got the half a day off."' 6 Mills also was quoted as saying,
"I got it for you fellows." The employees received the half day
off.
"[A] round two weeks before the election" Mills said to
Davidson, " . . if we get rid of this union ... we'd get rid of
all the Niggers and everything else we wanted like that " Dietz,
after the election had been held, informed the employees that
such "rumor" was "hogwash.""
The Trial Examiner is convinced and finds that Mills was an
agent of the Respondent within the meaning of the Act.
Controlling factors in this respect are
(1) Mills openly solicited and obtained employee signatures
to union disaffection petitions on company time and property
in the presence of management representatives and thereby the
Respondent's knowledge of Mills' activities is clearly implied
(2) By Manager Dietz' statement to Union Steward David-
son, to wit, "I need all the signatures I can get," the
Respondent acknowledged that the union disaffection petition
was its project.
(3) By holding the union disaffection petition in its
custody, and soliciting an employee's signature in the presence
of employee Mills, the Respondent created the clear impres-
sion that Mills was soliciting employee signatures for it and
that it was fostering the petition
(4) The Respondent utilized the union disaffection petition
which it knew had been circulated by Mills and to which, by
its own solicitation, it had added at least one employee's
signature, as objective consideration to support its petition for
an election which the Regional Director was about to dismiss
for lack of evidence sufficient to support "that the Employer
had some reasonable grounds for believing that the union has
lost its majority status since the certification," and thereby the
Respondent manifested an interest and purpose in Mills'
activities.
(5) While the Respondent was aware of Mills' activities in
soliciting signatures, the Respondent did not disavow its
connection or approval of such solicitation but rather allowed
employees to believe that the Employer condoned and had
authorized Mills' activities.
(6) The Respondent's shop was so small that knowledge by
the Respondent of Mills' activity in making promises in return
for signatures must be implied.
Appropos is the decision of the Board in Birmingham
Publishing Co, 118 NLRB 1380, affd. 262 F.2d 2 (C.A. 5),
and the following language at 1382
The failure of the Respondent to deny Johnson's authority
to make such promises of reward and the failure to order
him to desist from this activity, in the light of all the
foregoing establishes clearly that Johnson was the Respond-
ent's agent in these decertification activities.
16 Dietz testified that about 10 or 10 30 in the morning Mills came
to him and said, "I think the boys want to see you during the lunch
hour." Dietz replied, "Floyd, what's this all about," and Mills replied,
`I think they want the rest of the day off with pay." Dietz said, "All
nght
I'll be over there during the lunch period ." (Emphasis supplied )
Dietz said that he went to the die shop and several of the men said to
him, "How about the rest of the day off with pay9" Included among
these employees were Willie Davidson , Carl Duffield, and Bill Cain, and
"possibly Floyd Mills " Dietz replied, "okay, shut the furnaces off and
take off " While it may have been that Dietz did appear in the die shop,
nevertheless , the Trial Examiner is convinced that Mills did announce to
23
Thus, the Trial Examiner concludes that the Respondent's
employees "would have just cause to believe" that Mills was a
solicitor for the Respondent and that they were deprived of
"the complete and unhampered freedom of choice which the
Act contemplates." See International Association of Machin-
ists v. N.L R.B, supra, 80. Moreover, the record does not bear
out a conclusion that the increase of no-union votes from 13 in
the first election to 14 in the second election was not the
result of either the Employer's refusal to sign the agreement
until June 7, 1967, the unlawful activities of its agent Mills, or
both. Indigenous in these kinds of unfair labor practices are
the natural and foreseeable consequences that such unfair
labor practices will cause union disaffection.
In that Mills was an agent of the Employer, the Respondent
is guilty of a violation of Section 8(a)(1) of the Act by reason
of Mills' solicitation of employee
signatures to the union
disaffection petitions used in support of the petitions filed in
Cases 26-RD-153 and 26-RM-230 and is likewise guilty of
a violation of Section 8(a)(1) of the Act in respect to Manager
Dietz' activities in this regard. Moreover, the promises of
benefits made by Mills to employees interfered with, coerced,
and restrained employees in the exercise of rights guaranteed in
Section 7 of the Act and were in violation of Section 8(a)(1) of
the Act 1 8
Since the stipulated facts establish that Mills, on November
17, 1967, "circulated a petition which was used in support of
the petition filed with the Board in Case 26-RM-230" and on
or about November 21, 1967, Mills "circulated a petition
which was used in support of the petition filed with the Board
in Case 26-RD-153," it follows that the petitions "cannot be
said to raise a question concerning representation," and it is
recommended that each petition be dismissed. Birmingham
Publishing Co , supra, 1383
Third: The question is presented, in view of the disclosures
in the record, whether the Respondent, by its refusal to
recognize and bargain with the Union as the exclusive
representative of the Respondent's employees in an appropri-
ate unit on November 9, 1967, and thereafter violated Section
8(a)(5) of the Act.
As noted above the Employer's petition was filed on
November 13, 1967. Not until November 20, 1967, did the
Board's agents advise the Respondent that the petition
presented sufficient obiective consideration to warrant pro-
cessing and that its claim could have merit. Thus until
November 20, 1967, the Respondent was under the obligation
to bargain with the Union as required by Section 8(a)(5) of the
Act. "If an employer has doubts about his duty to continue
bargaining, it is his responsibility to petition the Board for
relief, while continuing to bargain in good faith at least until
the Board has given some indication that his claim has merit. "
Ray Brooks v. N.L R.B.,
348 U.S. 96, 103. (Emphasis
the employees that they were to be given the half day off The fact that
Dietz said "all right " to Mills convinces the Trial Examiner that Mills
carried such
response
to the employees and in this respect their
testimony is credited.
17 Dietz, when asked where he had heard the rumor , was unable to
point to a specific employee as the source. It is of significance that
Dietz did not belie the rumor until after the election , all of which adds
weight to the inference that Mills' statements were condoned
18 "Interference is no less interference because it is accomplished
through allurements rather than coercion ." N L R.B v. Bailey Com-
pany, 180 F.2d 278, 279 (C.A. 6)
24
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
supplied.) Nevertheless, by reason of the Respondent's unlaw-
ful
acts, its alleged petition for relief, as well as the
decertification petition filed a few days later, was not available
as a means for testing the validity of the Respondent's doubts,
for such petitions, tainted as they were by the Respondent's
unfair labor practices, could not raise a question concerning
representation. It is only when "a question of representation
exists" that the Board is empowered to direct an election at
which an employer's doubt may be resolved. (See Section 9(c)
of the Act.) Thus, in that no question of representation was
lawfully pending before the Board, whether the Employer
questioned the Union's continued majonty status in good faith
must be tested by the prevailing criteria. In Celanese Corpora-
tion of America, 95 NLRB 664,19 the Board has said.
By its very nature, the issue of whether an employer has
questioned a union's majonty in good faith cannot be
resolved by resort to any simple formula. It can only be
answered in the light of the totality of all the circumstances
involved in a particular case. But among such circumstances,
two factors would seem to be essential prerequisites to any
finding that the employer raised the majority issue in good
faith in cases in which a union had been certified. There
must, first of all, have been some reasonable grounds for
believing that the union had lost its majority status since its
certification. And, secondly, the majority issue must not
have been raised by the employer in a context of illegal
antiunion activities, or other conduct by the employer
aimed at causing disaffection from the union or indicating
that in raising the majority issue the employer was merely
seeking to gain time in which to undermine the union.
[Emphasis supplied.]
Thus in order to avail itself of a valid claim that it raised the
majonty issue in good faith the Employer, where the Union
has been certified as a statutory bargaining agent, must not
have raised the majority issue "in a context of illegal antiunion
activities, or other conduct aimed at causing disaffection from
the union." But the Respondent did just that when it fostered
and participated in the solicitation of union disaffection
petitions, for such conduct was clearly in violation of Section
8(a)(1) of the Act. Birmingham Publishing Co., supra It must
ineluctably follow, therefore, that the certification continued
unabated and the Respondent's obligation to bargain remained
intact.
Thus by the Respondent's refusal to bargain on
November 9, 1967, and at all times thereafter the Respondent
violated Section 8(a)(1) and (5) of the Act.
To permit the Respondent to continue its refusal to
recognize and bargain with the Union after its participation in
the solicitation of union disaffection in support of petitions to
test the Union's majority status is to allow the Employer to
profit by its own wrong, a result incompatible with equity and
justice and the Act's high purposes.
Fourth- The General Counsel alleges in the complaint in
substance that the grant of the half holiday on December 22,
1967, was a violation of Section 8(a)(5) of the Act in that the
Union was not afforded an opportunity to negotiate in respect
thereto. This allegation must be dismissed since it is clear that
Mills, an agent of the Respondent, discussed the matter with
Davidson, a union representative, before action was taken and
that Davidson indicated concurrence in the action taken.
That part of the complaint alleging that the Respondent
violated Section 8(a)(5) of the Act by the grant of the half
holiday on December 22, 1967, is dismissed.
IV. THE EFFECT OF THE UNFAIR LABOR
PRACTICES UPON COMMERCE
The activities of the Respondent set forth in section III,
above, occurring in connection with its operations set forth in
section I, above, have a close, intimate, and substantial relation
to trade, traffic, and commerce among the several States and
tend to lead to labor disputes burdening and obstructing
commerce and the free flow of commerce.
V. THE RECOMMENDED REMEDY
Having found that the Respondent has engaged in unfair
labor practices within the meaning of Section 8(a)(5) and (1)
of the Act, the Trial Examiner recommends that it cease and
desist therefrom, and, upon request, bargain collectively with
the Union as the exclusive representative of all employees in
the appropriate unit and, if an understanding is reached,
embody such understanding in a signed agreement.
It is palpable that months from now, when this matter shall
finally
reach repose, a bare order to bargain will only
acknowledge the formalities of the law since the Union may be
without any bargaining power while the employer may retain
the
full
possession
of the fruits of its violation which
contributed to the Union's loss of bargaining power. Cf.
Montgomery Ward & Co. v NL.R.B., 339 F 2d 889, 894 (C.A
6)
At such time not only will the Union's bargaining power
have been lessened by reason of the Employer's past unfair
labor practices but the growth of union affection will have
been stifled by the inability of the Union to fulfill its function
as
the
exclusive
bargaining agent. For the employee to
continue to adhere to a seemingly torpid Union whose
effectiveness is blocked by an Employer's unfair tactics is
indeed an exercise in futility. Moreover , it
is likewise an
exercise in futility for a union to participate in collective
bargaining without employee support Under these circum-
stances the balance of bargaining power tilts toward the
employer and the employer enjoys a status not unlike the
absence of a union. These, then, are the fruits of its unfair
labor
practices
Thus where by unfair labor practices an
employer has contributed to the loss of a union's bargaining
power, it seems just and within the aspirations of the Act to
afford the Union an opportunity to relate itself to the
Employer's employees Such opportunity is justified to an
even greater degree where, as here, the Employer has used its
time and property for personal employee contacts by which it
has created an atmosphere in which employees' complete and
unhampered freedom of choice was frustrated and employee
defection from the Union was encouraged and abetted.
19 Celanese has been recently cited for the proposition
The Board has frequently stated the applicable rule That after
the certification is 1 year old , an employer can refuse to bargain
with the union on the ground that it doubts the union 's majority,
provided
that this
doubt is a good-faith doubt
predicated on
objective considerations that establish reasonable grounds for believ-
ing that the union has lost its majority status since its certification.
Lloyd McKee Motors, Inc, 170 NLRB No. 140.
DIETZ FORGE CO.
It has been stated by Justice Harlan in a concurring opinion
in Local 60, United Brotherhood of Carpenters, 365 U.S. 651,
657
The primary purpose of the provision for other affirma-
tive relief has been held to be to enable the Board to take
measures designed to recreate the condition and relation-
ship that would have been had there been no unfair labor
practice.
In Jack G. Buncher d/b/a The Buncher Company,
164
NLRB No. 31, the Board has lately said
It is Respondent's violation of the Act which requires
the Board to apply a remedy that in its judgment offers a
reasonable basis for remedying the violation found.
In H W. Elson Bottling Company, 155 NLRB 714, 715, the
Board said-
.. the Board must "take measures designed to recreate the
conditions and relationships that would have been had there
been no unfair labor practice."
Bargaining power and union adherence is what has been lost
to the Union. A remedy which aims at the recovery of lost
bargaining power and union adherence and the restoration of
the status quo ante will best effectuate the policies of the Act
and will tend toward the extirpation of the evils flowing from
the Respondent's unfair labor practices. Hence the Trial
Examiner recommends that for a period of 60 days after the
Respondent has posted the notice marked "Appendix" and has
assumed its obligation to bargain as herein recommended,
Respondent shall permit the Union and its representatives,
upon reasonable request, freely to solicit union authorizations
and conduct union organizational meetings of the Respond-
ent's employees in the appropriate unit in the employer's
Memphis, Tennessee, plant, during the employees' nonworking
time if such activity does not interfere with the normal
operations of Respondent's business.
If at the end of the 60-day period the Union is unable to
present convincing evidence that it has in its possession valid
authorization cards or other indicia designating it as the
bargaining representative for a majority of the employees in
the appropriate unit and the Union does not in fact represent
an uncoerced majority of the Respondent's employees in the
appropriate unit, it is recommended that the obligations to
bargain imposed upon the Respondent by Section 8(a)(5) of
the Act cease and the Respondent be released therefrom but,
of course, the Respondent must adhere to the requirements of
the Recommended Order in full.
CONCLUSIONS OF LAW
1. The Respondent is an employer engaged m commerce
within the meaning of Section 2(6) and (7) of the Act and it
will effectuate the policies of the Act for jurisdiction to be
exercised herein.
2. The Union is a labor organization within the meaning of
Section 2(5) of the Act.
3. By interfering with, restraining, and coercing employees
20 In that as a part of the Recommended Order the Trial Examiner
is recommending that the Respondent bargain collectively with the
Union and embody in a signed agreement any understanding reached,
any remedy in respect to matters composed in the settlement agreement
25
in the exercise of their rights guaranteed them by Section 7 of
the Act, Respondent has engaged in unfair labor practices
within the meaning of Section 8(a)(1) of the Act.
4 By reason of the Respondent's unfair labor practices the
representation election conducted on January 11 and 12,
1968, is void and of no effect and the petitions in Cases
26-RD-153 and 23-RM-230 must be dismissed.
5. All production and maintenance employees including
inspectors of the Dietz Forge Company of Tennessee at its
Memphis, Tennessee, plant, excluding all office clerical em-
ployees, guards, professional employees and supervisors as
defined in the Act constitute a unit appropriate for the
purposes of collective bargaining within the meaning of
Section 9(b) of the Act, as amended
6. By refusing on and since November 9, 1967, to bargain
with the Union as the exclusive bargaining agent of the
employees in the appropriate unit, the Respondent has
engaged in and is engaging in unfair labor practices within the
meaning of Section 8(a)(1) and (5) of the Act
7
The aforesaid unfair labor practices are unfair labor
practices within the meaning of Section 2(6) and (7) of the
Act.
RECOMMENDED ORDER
Upon the basis of the foregoing findings of fact and
conclusions of law and upon the entire record in this case, it is
recommended that Respondent, Dietz Forge Company of
Tennessee, its officers, agents, successors, and assigns, shall
1. Cease and desist from
(a) Soliciting and assisting employees to withdraw adher-
ence to the Union
(b) Unlawfully promising employees benefits if they with-
draw their adherence to the Union.
(c) In any like or related manner interfering with, restrain-
ing, or coercing employees in their rights to join, form, or
assist International Brotherhood of Boilermakers, Iron Ship-
builders, Blacksmiths, Forgers and Helpers, AFL-CIO, and its
Local 263, or any other labor organization to bargain
collectively through representatives of their own choosing, to
engage in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection, or to
refrain from any or all such activities.
(d) Refusing to recognize and bargain collectively with
International Brotherhood of Boilermakers, Iron Shipbuilders,
Blacksmiths, Forgers and Helpers, AFL-CIO, in the above-
described unit.
2
Take the following affirmative action which it is found
will effectuate the policies of the Act
(a) Upon request, bargain collectively with the Union as
the exclusive representative of the employees in the above-
described unit with respect to rates of pay, wages, hours of
employment, and other terms and conditions of employment
and embody in a signed agreement any understanding
reached.' 0
would be merely cumulative For this reason no useful purpose appears
for passing upon the issues presented by the vacating of the settlement
agreement
26
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
(b) Post at its Memphis, Tennessee, plant, copies of the
attached notice marked "Appendix."2 1 Copies of said notice,
on forms provided by the Regional Director for Region 26,
shall, after being duly signed by the Respondent's representa-
tive, be posted by it immediately upon receipt thereof and be
maintained by it for 60 consecutive days thereafter, in
conspicuous places, including all places where notices to
employees are customarily posted. Reasonable steps shall be
taken by the Respondent to insure that said notices are not
altered, defaced, or covered by any other material.
(c) Notify the Regional Director for Region 26, in writing,
within 10 days from the date of this Decision, what steps the
Respondent has taken to comply herewith.22
IT IS FURTHER RECOMMENDED that the election con-
ducted on January 11 and 12, 1968, be vacated, set aside, and
held for naught and that the petitions in Cases 26-RD- 153
and 26-RM-230, be dismissed. It is further recommended
that the complaint be dismissed insofar as it alleges violations
of the Act other than those found in this Decision.
21 In the event that this Recommended order is adopted by the
Board , the words "a Decision and Order " shall be substituted for the
words "the Recommended Order of a Trial Examiner " in the notice In
the further event that the Board 's Order is enforced by a decree of a
United States Court of Appeals, the words "a Decree of the United
States Court of Appeals Enforcing an Order" shall be substituted for the
words "a Decision and Order."
22 In the event that this Recommended Order is adopted by the
Board, this provision shall be modified to read
"Notify said Regional
Director, in writing, within 10 days from the date of this Order, what
steps Respondent has taken to comply herewith "
APPENDIX
NOTICE TO ALL EMPLOYEES
Pursuant to the Recommended Order of a Trial Examiner
of the National Labor Relations Board, and in order to
effectuate the policies of the National Labor Relations Act, as
amended, we hereby notify our employees that
WE WILL, upon request, bargain collectively with Inter-
national Brotherhood of Boilermakers, Iron Shipbuilders,
Blacksmiths, Forgers and Helpers, AFL-CIO, and its Local
263, and if an understanding is reached, we will sign a
contract with the Union The bargaining unit is
All
production and
maintenance employees, including
inspectors, but excluding all office clerical employees,
guards, professional employees and supervisors as defined in
the Act
WE WILL NOT ask or encourage you to sign petitions
against the Union
WE WILL NOT promise our employees any benefits, the
purpose of which is to induce them to forego their
adherence to or membership in the Union
WE WILL NOT m any like or related manner interfere
with, restrain, or coerce our employees in the exercise of
their rights to join, form, or assist International Brother-
hood of Boilermakers, Iron Shipbuilders, Blacksmiths,
Forgers and Helpers, AFL-CIO, and its Local 263, or any
other labor organization to bargain collectively through
representatives of their own choosing and to engage in other
concerted activities for the purpose of collective bargaining
or other mutual aid and protection or to refrain from any
and all such activities.
You are all free to become or remain members, or not to
become and remain members, of International Brotherhood of
Boilermakers, Iron Shipbuilders, Blacksmiths, Forgers and
Helpers, AFL-CIO, and its Local 263, or any other labor
organization and we will not punish you if you do
DIETZ FORGE COMPANY
OF TENNESSEE
(Employer)
Dated
By
(Representative)
(Title)
This notice must remain posted for 60 consecutive days from
the date of posting, and must not be altered, defaced, or
covered by any other material
If employees have any question concerning this notice or
compliance with its provisions, they may communicate direct-
ly with the Board's Regional Office, 746 Federal Office
Building, 167 North Main Street, Memphis, Tennessee 38103,
Telephone 534-3161