188 NLRB 682
Bank of California
682
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Bank of California, National Association and Division
of
Professional
Office
and Industrial
Union
(MEBA). Case 19-CA-4706
February 24, 1971
DECISION AND ORDER
BY CHAIRMAN MILLER AND MEMBERS FANNING AND
BROWN
On September 30, 1970, Trial Examiner Henry S.
Sahm issued his Decision in the above-entitled pro-
ceeding, 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 at-
tached Trial Examiner's Decision. Thereafter, the Re-
spondent filed exceptions to the Trial Examiner's De-
cision and a supporting brief, and the General Coun-
sel 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 powers
in connection with this case to a three-member panel.
The Board has reviewed the rulings of the Trial
Exmainer made at the hearing and finds that no preju-
dicial error was committed. The rulings are hereby
affirmed.
The Board has considered the Trial
Examiner's Decision, the exceptions and briefs, and
the entire record in the case, and hereby adopts the
findings, conclusions, and recommendations of the
Trial Examiner only to the extent consistent herewith.
The Trial Examiner found, as charged by the only
allegation of violation in the complaint, that Respon-
dent discriminatorily discharged Frank Shubert be-
cause of his activities on behalf of the Banking Guild.
In so doing, the Trial Examiner found that Schubert
was the sole instigator of the Union, who solicited five
persons, three of them supervisors, and that shortly
thereafter,
Schubert
was summarily discharged.'
These facts led the Trial Examiner to infer unlawful
motivation for the discharge, which inference was fur-
ther bolstered, in the Trial Examiner's view, by his
conclusions that Respondent's complaints against
Schubert
were "trivial"
and "irrelevant," that
Respondent's action was "not natural," that, accord-
ing to his interpretation of the record, there was no
substantive basis for Respondent's alleged dissatisfac-
tion with Schubert, and that, therefore, Respondent's
grounds for discharge were pretextuous. We find mer-
it in Respondent's exceptions to the Trial Examiner's
findings and conclusions.
1 The solicitations occurred on or about March 10 and 11, 1970, and the
discharge occurred on March 13 There is no evidence that Schubert engaged
in any union or concerted activity prior to March 6, 1970
Assuming that Respondent had knowledge of
Schubert's union activities through its supervisory
personnel whom Schubert solicited, there is nothing
else, except the timing of Schubert's discharge, from
which it can be inferred that his discharge was moti-
vated by union activity. Thus, there is not one iota of
evidence of union hostility or animus; nor is there
evidence of interference or other 8(a)(1) conduct. Fur-
thermore, the record does not support the bases for
the Trial Examiner's conclusions that Respondent's
asserted reasons for Schubert's discharge were mere
pretext.
The record shows that Schubert was hired in Feb-
ruary 1969, at a salary of $575 a month, to assist
Robert Henshaw in the business development depart-
ment. Less than 2 months after Schubert was hired, he
approached Henshaw for a raise, saying that his ex-
employer had offered him a job at a higher salary. At
that time, Schubert received an additional $125 a
month, his only raise while with Respondent? There-
after, numerous complaints regarding Schubert came
to the attention of Vice President Comer and Assist-
ant Vice President Claycomb, which included his ab-
sences, tardiness, "socializing," reading newspapers
and AIB books while others were working, calling
longtime employees "stupid," interfering with the
manner of work in other departments, leaving large
checks on his desk unattended, not performing sur-
veys to Claycomb's satisfaction, attempting to pres-
sure employees to join the AIB classes, and an
inability to conduct the business development portion
of the officers' meetings.
As a result of those complaints, Henshaw spoke to
Schubert about his absences and tardiness, and Schu-
bert
did improve in this respect. To alleviate
Schubert's interference with a constantly busy depart-
ment immediately adjacent to his, Respondent had a
set of file cabinets placed between the departments.
Also, Vice President Comer took it upon himself to
check personally on Schubert and found him reading
AIB books at his desk. Finally, as a result of the
complaints of the way Schubert conducted meetings,
Respondent had Schubert removed and directed
Henshaw to conduct the meetings in the future.
During Schubert's first 8 months of employment,
there were two complaints of a serious nature, of
which Comer and Claycomb were both aware. One
instance involved a "kiting" operation by a customer
whose large checks were found on Shubert's desk af-
ter the time they were due in another area of the bank.
Had they not been recovered by Claycomb and re-
turned in time to the Federal Reserve Bank, Respon-
dent would have been responsible to honor and cover
2 Although the Trial Examiner states Schubert received two raises dung
his short tenure, there is no evidence of any other raise reflected in the record.
188 NLRB No. 109
BANK OF CALIF., NATIONAL ASSN.
$500,000 in bad checks. Another major complaint in-
volved two incidents where Schubert held, for an ex-
tra day, a customer's large deposit check which was
to be transferred to the customer's employees' ac-
counts. By holding this check an extra day, it was not
deposited to the employees' accounts, which caused
some employee customers to be overdrawn for a day.
In October 1969, when Claycomb took over the
personnel duties at the bank, he reviewed all person-
nel files. In reviewing Schubert's file, Claycomb found
that Schubert had received a pay raise in April. Clay-
comb was of the opinion that Schubert was receiving
more money than he should. As a result of his person-
al knowledge and the numerous complaints regarding
Schubert, Claycomb consulted Comer and they de-
termined to recommend Schubert's discharge. When
Schubert's
personnel review was discussed with
Campbell, Respondent's manager, both Claycomb
and Comer urged Schubert's termination. Campbell
at that time agreed, and directed Claycomb to seek a
replacement. Claycomb eventually offered the job at
a lower salary to someone else, who turned it down.
Later, Claycomb was told to quit soliciting for the job,
as Henshaw had talked Campbell into giving Schu-
bert more time. After Henshaw talked to Campbell,
Henshaw told Schubert that he "would have to get
him out more .... Mr. Campbell felt that perhaps we
weren't doing quite the job we should."
In January 1970, Schubert again discussed the sala-
ry with Henshaw, who advised him he could make no
commitments. Later, Schubert told Henshaw that he
had another job offer at a higher salary and Henshaw
stated that Respondent could not be pressured into
giving him more money and advised him to take the
other job, if he were so inclined. Henshaw informed
personnel of this conversation. Claycomb also talked
to Schubert in January about this job offer and ad-
vised him to take it "if it were more inviting."3
In February, Schubert's personnel file again came
up for review. Claycomb inserted a recommendation
that no salary increase be given as a pattern was de-
veloping that Schubert "was definitely dissatisfied
with his salary" and advancements, although he was
receiving as much as some supervisors. Henshaw
agreed with this review, and, as a result, no salary
increase was given.
On March 12, a few days, after talking to some of
Respondent's supervisors about a union, Schubert
again approached Henshaw about an increase in sala-
ry. Henshaw told Schubert there would not be a raise
and directed him to stay away from personnel. Con-
trary to Henshaw's directions, Schubert contacted
3 Contrary to the Trial Examiner's finding that Claycomb did not have
conversations with Schubert from September 1969 until his discharge on
March 13 , 1970, the record shows that Schubert advised Claycomb about his
job offer in January 1970.
683
personnel and requested a raise in salary or a transfer.
This request came to the attention of Claycomb, who,
at that time, was considering another recommenda-
tion for Schubert's termination. The next day, Hen-
shaw advised Claycomb that Schubert had talked to
him about a raise, but that Schubert probably would
not come down to personnel. Claycomb informed
Henshaw that Schubert had come to personnel, and
that Respondent "could not continue this way." Clay-
comb immediately thereafter related all these facts to
Comer, who agreed with Claycomb's recommenda-
tion to terminate Schubert. Both Comer and Clay-
comb were disturbed about Schubert's salary, which
they believed was too high, and they were further
upset about his continuous attempts to receive more
money, particularly by using the ploy that he had
another job offer-a tactic that had been successful
previously and of which Claycomb and Comer were
aware at this time.
Comer and Claycomb attempted to reach Hen-
shaw, who was not available at that time, but then
decided to go ahead and terminate Schubert. Very
candidly, Comer and Claycomb both admitted that
they seized this moment, with Henshaw and Camp-
bell absent from the bank, to get rid of Schubert, so
that Henshaw would not have another opportunity of
talking Campbell into retaining Schubert, as he had
done previously.
The termination interview, as related by Schubert,
Claycomb, and Comer, contained no reference to un-
ion or concerted activities. The reference to "dissatis-
faction" was the same dissatisfaction exhibited prior
to Schubert's becoming involved in union activities,
as evidenced by Claycomb's reference to dissatisfac-
tion on Schubert's February personnel review. Even
Schubert recognized that Respondent's officials were
annoyed because of his concern with salary increases,
when he stated, "It became apparent it was because
of the fact the previous day I had gone down to per-
sonnel and had asked about my status ... the only
reason they gave me, that I was unhappy and dissat-
isfied....."
To support his conclusion that the Respondent's
reliance on the foregoing sequence of events as reason
for its discharge of Schubert was pretextual, the Trial
Examiner, as noted, characterized such events as
"trivial," "irrelevant," "not natural," and "indefinite,
vague and general." The Trial Examiner did not, how-
ever, discredit the record evidence that the events in
issue did in fact occur. Consequently, the touchstone
for determining the real reason for Schubert's dis-
charge is not how we or the Trial Examiner would
have regarded such events, had we been responsible
officials of the Respondent, but rather how such offi-
cials themselves regarded the events at the time they
occurred. In this respect, the record shows, as set forth
684
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
above, that, in response to Schubert's derelictions and
prior to his union activity, Respondent took the fol-
lowing steps: had file cabinets placed between depart-
ment to isolate Schubert; had meetings conducted by
Henshaw rather than Schubert; had personal checks
by officials to verify Schubert's idleness; initiated ac-
tion to effect his termination, which was rescinded
only because at the last minute Schubert's supervisor
was able to persuade Respondent's manager to give
Schubert another chance; looked for a replacement;
advised Schubert regarding his unsatisfactory work
and did not discourage him from accepting another
job offer; and noted on his performance review only
a few weeks prior to his union activity and his dis-
charge, that no raise was recommended because of
"lack of proper attitude" and that his activities (non-
union at that time) "point toward dissatisfaction."
Furthermore, Schubert's discharge occurred on a Fri-
day at the end of a pay period and the two officials
who were all along most anxious to terminate Schu-
bert took advantage of an opportunity to do so, when
those who had prevented the earlier discharge attempt
were temporarily absent.
On the basis of the foregoing, we are satisfied that
Respondent's officials who effected Schubert's termi-
nation regarded his conduct and attitude with respect
to his work as a matter of serious concern, warranting
his termination. Although the timing of Schubert's
discharge, shortly after Respondent's supervisors ac-
quired knowledge of his union activity, is a suspicious
circumstance, it is in our opinion insufficient, partic-
ularly in the absence of any evidence of union animus,
to overcome the positive evidence of dissatisfaction
and efforts to effect his termination, long antedating
his union activities, by the officials actually respon-
sible for his termination. We find, therefore, that the
General Counsel has not established by a preponder-
ance of the evidence that Schubert was discharged for
his union activities. Accordingly, we shall dismiss the
complaint herein.
ORDER
Pursuant to Section 10(c) of the National Labor
Relations Act, as amended, the National Labor Rela-
tions Board hereby orders that the complaint herein
be, and it hereby is, dismissed.
MEMBER BROWN , dissenting:
I agree with the Trial Examiner that Schubert was
unlawfully discharged, and I would therefore issue the
appropriate remedial order.
TRIAL EXAMINER'S DECISION
ISSUE
HENRY S. SAHM, Trial Examiner: The issue in this proceed-
mg involves a charge by the General Counsel, which the
Respondent Bank denies, that an employee of the Bank was
discharged when he attempted to interest some of the
Bank's employees to join the-Banking Guild, a labor organi-
zation.
STATEMENT OF THE CASE
This proceeding, under Section 10(b) of the National La-
bor Relations Act, was heard in Seattle, Washington, before
Henry S. Salim, the Trial Examiner, on June 2 and 3, 1970.
The complaint which issued on April 22, 1970, on a charge
filed by the Banking Guild, the Charging Party, dated
March 19, 1970, alleges in substance that the Respondent,
in violation of Section 8(a)(3) of the Act, discharged Frank
Schubert because he had engaged in union activity by at-
tempting to organize a union at Respondent 's Seattle Bank.
The Respondent Bank of California, hereinafter the Bank,
filed a general denial, disclaiming the commission of any
unfair labor practices.
Following the hearing, briefs were filed by the General
Counsel and the Respondent on July 8, 1970, and have been
fully considered. At the close of the General Counsel's case
in chief, Respondent moved to dismiss the complaint and
this motion was renewed at the close of the hearing. The
motion is disposed of in accordance with the findings below.
Upon the entire record in this case , including the briefs,
and from observation of the demeanor of the witnesses
while testifying, there are hereby made the following:
FINDINGS OF FACT
I
THE BUSINESS OF THE RESPONDENT
Respondent, a California corporation, is engaged at van-
ous locations in the operation of full-service banks , includ-
ing the branch bank at Seattle, Washington, which gave rise
to this proceeding. During calendar year 1969 , at its Seattle
bank, Res ondent did a gross volume of business in excess
of $500,000 which included the transmission to out-of-state
banks for collection purposes checks in an amount exceed-
ing $500,000. It is admitted and found that Respondent is
engaged in commerce within the meaning of Section 2(6)
and (7) of the Act.
II
THE LABOR ORGANIZATION INVOLVED
It is admitted that the Banking Guild , the Union herein,
is a labor organization within the meaning of Section 2(5)
of the Act. The Banking Guild was established in January
1970 for the purpose of organizing the employees of banks.
III
THE ALLEGED UNFAIR LABOR PRACTICES
A.
Background
Frank Schubert, the alleged discriminatee, was hired by
the Bank of California, the Respondent, on Februar 19,
1969, and discharged on March 13, 1970. As an employee
in the business development department of the Bank, he
received three personnel appraisals and a superior perform-
ance rating during the 13 months he was employed. Schu-
bert also received a letter of commendation from the San
Francisco main office of the Respondent Bank for the excel-
lent work he performed on a check cashing survey. Begin-
ning in December 1969, he became interested in organizing
the employees of the Seattle branch of the Respondent
Bank 0 I California. On March 6, 1970, he had lunch with
BANK OF CALIF., NATIONAL ASSN.
Wilbur Gates, an officer of the Banking Guild, and they
discussed the possibility of organizing the employees of the
Bank of California's Seattle branch. On March 10 and 11,
Schubert contacted various employees of the Bank of Cali-
fornia, among them several supervisors, and told them of his
interest in organizing a union for the employees of the Bank
and whether they would be interested in joining.
On March 13, 2 to 3 days after he had talked to these
employees about organizing a union, he was called down to
the personnel office and terminated by the Respondent,
effective immediately, and without the knowledge of his
immediate supervisor. The reason given him by Respondent
was "poor attitude."
After his termination by the Bank, Schubert has been
employed by the Charging Party, the Banking Guild, since
March 16, 1970, in the capactiy of organizing professional
and clerical employees in the Seattle area, including Re-
spondent Bank's employees.
B.
The Testimony
Frank L. Schubert; the alleged discriminatee, was em-
ployed on February 19, 1969, by the Respondent in the
business development department of its Seattle bank at a
monthly salary of $575. His duties involved public relations,
marketing surveys, and programming new business. He was
under the direct supervision of Robert F. Henshaw , assist-
ant vice president, who is in charge of the business develop-
ment department of the Bank, which consisted of Henshaw,
Schubert, and two secretaries.
In the first part of April 1969, 2 months after his employ-
ment by Respondent, Schubert was contacted by his former
employer, Northwest Orient Airlines, and offered his for-
mer position at an increase in salary over the $700 he was
earnin g when he left the employ of Northwest Airlines. He
notified Henshaw, his supervisor, of this offer who there-
upon obtained for Schubert a monthly pay raise of $125 as
of April 15, 1969.
On January 10, 1970, about 9 months later, Schubert
notified both Curtis Claycomb, vice president in charge of
personnel, and his supervisor, Henshaw, that a Seattle com-
pany, Sales Training, Incorporated, had contacted him and
offered him a position as their national credit manager.
Henshaw advised Schubert that the Bank was unable to give
him a wage increase and it was for him to decide what he
proposed to do. Schubert testified he turned down the job
as he considered the salary of $800 a month offered him by
this company not sufficient. He then notified Henshaw that
he had decided to remain with the Bank.
On March 6, 1970, Schubert met with Wilbur Gates, di-
rector of the Banking Guild, the labor organization herein,
and executive secretary for the Employees Association of
the Seattle First National Bank since 1966. Schubert told
Gates of his interest in organizing the employees of the
Respondent Bank of California whereupon it was agreed
that he would begin soliciting the Respondent Bank's em-
ployees the following week to ascertain their interest in
organizing a union.
On or about March 10, he spoke to Candi Allinder, whom
Schubert in his testimony described as a "supervisor" in the
Mastercharge department of the Bank. His testimony con-
tinues as follows:
I asked [her] if she were interested, what her feelings
were on the union because her husband was a member
of the Federal Mediators. She said she couldn't give me
any statement at that time because of the fact she was
685
did, this was authority given her by San Francisco, that
she was classified as a supervisor.
The following day Schubert spoke to Richard Vincet,
whom he testified was "a supervisor in the area trust" sec-
tion of the Bank's real estate department. His testimony
continues:
Basically I asked [him] what he thought of the union,
what his feelings were, and he said he didn't really
know. I asked him if he would be interested in helping
me to organize the employees of the Bank of California
in Seattle. [He] said that he couldn't actively partake in
the organization because of the fact that he was classi-
fied as a supervisor.
The same day Schubert spoke to Roger Schmidt whom he
described as "supervisor of the real estate contract section
of the Bank of California." His testimony reads as follows:
I just asked Mr. Schmidt also if he would be interested
in helping in or anizing the union, the employees at the
bank. I was informed by [him], because of the fact he
was a supervisor, that he couldn't help actively solict
membership. I asked him how he knew he was a super-
visor, I asked him if he had the right to hire and fire
personnel as a matter of policy, and he said he did.
The other employees of the Bank that Schubert spoke to
about the union were Barry Flanders of the trust depart-
ment and Carol Fannin, a secretary, both of whom he asked
"if they would be interested in a union, . . . and their re-
ssibly helping organize a union at the Bank of
actions to
California.'
While at work on Friday, March 13, 1970, 3 days after he
had commenced his union organizational activities, at ap-
proximately 10:30 a.m., a secretary, Carol Fannin, asked
Schubert if he had seen his supervisor, Henshaw, as some
of the bank officials were looking for him.t A half hour later,
Schubert was summoned to the conference room in the
personnel department by Curtis Claycomb, vice president in
charge of personnel, and Thomas E. Comer, also a vice
president, who ranked second in the Seattle Bank's hier-
archy. Schubert's testimony as to the conduct of the meeting
reads as follows:
. a few moments after I was in the door and seated,
Mr. Comer said that I had been called there, they felt
that I was a little unhappy with my present status at the
bank, and that to the best interests of both myself and
the bank, they requested I resign.... At the time, they
said they just felt I was unhappy and dissatisfied. After
asking a just questions, it became apparent it was be-
cause of the fact the previous day I had gone down to
personnel and had asked about my status with the
bank, what my future was, what I could expect in re-
gard to my future at the bank.... This was the only
reason they gave me, that I was unhappy and dissat-
isfied-they felt I was unhappy and dissatisfied at the
bank.... As I remember, they said that they weren't
especially displeased with my work. I don't remem-
ber it [the quality of my work] actually being men-
tioned.... towards the end of the meeting, [I asked] if
Mr. Henshaw was aware of my being dismissed. Mr.
Comer and Mr. Claycomb said yes, he was, and I then
asked if I could see Mr. Campbell [manager of the
Bank]. Mr. Comer replied that Mr. Campbell was
aware of the situation to some degree, that he had
talked to him approximately, he wasn't sure, maybe six
weeks before ... about my status at the bank, and at
the time, I thought this was in regard to my review
which had been approximately the same time, so I was
a supervisor.... I questioned her on this, asked her if
she had the right to hire and fire, and she said yes, she
Henshaw was out of the Bank for a few hours at the time
686
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
unaware that a conversation between Mr. Comer and
Mr. Campbell other than what I was told then.
Schubert concluded his testimony by stating that his dis-
charge was effective immediately , with two weeks pay in
lieu of notice and that he was given no warning prior to
March 13, the day he was fired, that his job was in jeopardy.
Later the same day, Schubert testified he spoke to Renshaw,
his immediate superior , and " . . . I asked him at that time
if he were aware of the situation as to my being fired, and
he said no, he had not known previous to his leaving the
bank" that morning on business.
Robert F. Henshaw: assistant vice president in charge of
the business development department of the bank, was
Schubert's immediate superior . Other than two secretaries,
Schubert was the only employee in this department over
whom Henshaw had direct supervision. Henshaw testified
that when Schubert "first started with us, he had an at-
tendance problem which I discussed with him , and it did
improve." Henshaw stated that Schubert's absences when
first he was employed by the Bank were "above average,"
namely, absent nine times, seven unexcused and two ex-
cused and that he spoke to him about his absences. "On
occasion," testified Renshaw, "there was some tardiness"
on Schubert's part when reporting for work in the morning
and this tardiness varied anywhere from 2 to 3 minutes to
10 to 15 minutes. Henshaw continued : "I told [Schubert]
that he was expected to be there on, time together with the
girls, and it did improve." In November 1969, Henshaw
testified that he:
had a conversation with Mr . Campbell [manager of the
Bank ... [who] felt that Frank Schubert was not doing,
perhaps,s, the job he was hired for, and he was being well
paid for what he was doing, and he felt consideration
at that time to termination.... I backed Mr. Schubert
and asked that he be given some more time. We did
have a brief discussion afterwards, and I felt that
I should have hun out on the street more , I should
get him out. I think that was the general conversation
Mr. Campbell said to keep an eye on Frank
Schubert and to see how he does in the future.... Mr.
Comer [vice president] felt the same as Mr. Campbell
at that time.... [Mr. Cornier] felt he should be termi-
nated at this time.
Henshaw's testimony continues : Claycomb and Ren-
shaw discussed Schubert's first review after he was em-
ployed by the Bank for six months and it was decided to see:
what took place within the next six months . Yes, we did
discuss salary, and he gave no indication what it would
be or would not be at that time.... [With respect to
the salary that Schubert was receiving] we both felt he
was at the limit that he could go to rit at that time,
that he was making more than some of the supervisors.
... I just indicated to him that I would have to get him
out more and we would have to demonstrate to get the
department moving a little bit. Mr . Campbell felt that
perhaps we weren't doing quite the job we should do.
Henshaw testified that about the first of the year, 1970,
Schubert did discuss salary with him.
He asked me a time or two how I felt about his next
review, if I thought he would get any more money, and
I said, "Well, I can't promise you anything at this time.
You will have to wait until this time comes." ... He
asked me on several occasions how I felt about it, and
I wasn't able to give him any definite answer.... In
January he did come to me to indicate he had another
job offer that would pay more money . He wanted to
know what I felt the bank would do, and I said , "I can't
promise you anything. If you have a better job offer,
and if you seriously think that is what you want to do
and you have thought about it, go ahead and take it.
I can't give you any more money, at least right now."
. Well, he said he would think about it and let me
know. At a later time he said he had changed his mind
and decided not to go.... He did indicate, yes, I think
his remarks were, "Well, when I first came to work at
the bank, I indicated to you I could get more money
somewhere else. I'm telling you that again ." I said,
"Well, Frank, we can't be pressured anyway into giving
you more money. If you ve got more money offered
some place else, I'm sorry, you'd better take it." . . . I
advised the personnel department of our conversation
... [that isiMr. Claycomb. Some time later, several
weeks perhaps, we did have another discussion when
review time came u . [Schubert] had his review and had
been passed throu
the appraisal committee for raises.
[Schubert] wante to know what I had heard. The first
time he asked me I hadn't heard, so I went and checked
and found out there was no raise . Of course, at this
time, [Schubert] indicated that he would have to termi-
nate because he had to have more money to live
on.... This would have been on March 12th [the day
before Schubert's discharge].
. I just indicated,
"Frank, it's been turned down as far as any raises are
concerned, and there just won't be any ." He indicated
that he had been assured of a raise . I said, "Well, I'm
sorry, therejust isn't going to be one ." . . . He was quite
upset. He expressed disappointment , I think he was
perhaps a little angry. I said, "Frank, just cool down.
If you decide to go some place , just let me know. Just
take it easy and don't run down to the personnel de-
partment and talk to those people down there," I said,
`just take it easy and think this over a little bit." He
said he would.... Well, I believe his words were that
he was going to have to leave.
Henshaw concluded his direct examination by testifying
that at the bank officers' daily meeting, he advised Clay-
comb (vice president in charge of personnel) of his conver-
sation with Schubert.
On cross-examination Henshaw acknowledged there was
"considerable improvement" in Schubert's absentee record
beginning from January 1, 1970, until his discharge on
March 13 , and in his 23 years at the Bank, he admitted he
has never supervised any employee who was terminated for
excessive tardiness or absences . Henshaw also acknowl-
edged that the letter of commendation which Schubert re-
ceived from the Respondent's main office in San Francisco
was unusual, stating : "We don't see too many letters" such
as the one Schubert received. Henshaw conceded that
Schubert's precipitous discharge by Comer and Claycomb
while he was away from his office for a few hours, came as
a complete surprise to him when he learned of it an hour
after it occurred as he was never advised by the bank offi-
cials that Schubert's discharge was contemplated. When he
was asked if it is unusual that the immediate supervisor of
an employee who is going to be fired by the Rank is not
consulted first, he answered : "It might be considered so."
When Henshaw was asked on his cross-examination if
any bank official told him the reasons for Schubert being
discharged, he answered:
They [Comer and Claycomb] just felt dissatisfaction;
also that he was somewhat dissatisfied.... I don't
believe we went into detail in particular.
Henshaw continued that Comer, in November 1969, more
than 3 months before Schubert was fired , expressed dissatis-
faction with Schubert, in that he:
wasn't going out and bringing in new business.... It
BANK OF CALIF., NATIONAL ASSN.
had been indicated that he was doing some book work
of some sort, reading some books on an occasion....
These were AIB [American Institute of Banking] books
which I again discussed with Frank and suggested he
try to do this after banking hours.
Henshaw clarified this by explaining that some of this read-
ing was done dung Schubert's lunch hour.
Katherine McEvoy: who testified on behalf of the Respon-
dent, has been employed by the Bank for 17 years in the
money market department. In 1969, the Bank instituted a
program, referred to as the "3-2-1" account program, the
purpose of which was to attract additional customers by not
making a service charge for those depositors who main-
tained a $300 balance in their checking accounts. McEvoy
testified that in June 1969 "a party" telephoned her at the
Bank and said:
"Well, a Mr. Schubert called me and said that the bank
is going to eliminate the economy account, and you are
going to have to go into the 3-2-1 account so you might
as well switch now.... I mentioned it to Mr. Claycomb
. about a year ago [before the hearing] ....
On cross-examination, McEvoy testified that when "cus-
tomers" phoned, she asked them:
"Well, what makes you think the bank is suggesting
that you have to change to this new account? Then
would say, "Well, somebody at the bank called me. '
Finally, I kept asking and one day this woman said to
me, "Well, Mr. Schubert told me."
When McEvoy was asked br the General Counsel's repre-
sentative if it was "possible' that someone other than C.
Schubert could have talked to these customers and gotten
them upset," she answered : "It is possible."
Peggy Nault: who was first employed by Respondent in
1941, is a "supervisor" in the Bank s money market. Her
desk is located so as to afford her a view of Schubert's desk.
She testified that:
The first thing [she] would observe would be [Schubert]
com[mp] into the office and there would be a period of
socializing.... Usually he was talking and discussing
things with the two girls that were already in the bus-
iness development department.... [The discussions]
were quite varied. Most generally it would be the cur-
rent events, what had happened the previous night on
TV, what was going on. it was not a business discus-
sion. ... It would last a better part of an hour. One
morning it was an hour and 40 minutes very definitely.
. I checked it.... [Also] I would say that he might
possibly read the morning paper.... Fifteen minutes
maybe.... I knew very definitely that he was studying
and reading AIB books,2 I could see that. They were
definitely AIB testbooks.... He spent a goodly portion
of his time doing this. Now, you understand this was
from February [1969] 3 up until I went on vacation that
year sometime in late July. All this would be the period
from February on up until late May or early June
[1969] 4
Nault continued that the two girls who worked for her
"complained" to her about Schubert. An employee named
Susan Bartow, testified Nault, came to her in September
1969 and:
told me that Mr. Schubert came to her-and these are
Susan's words-threatened her that if she did not sign
up for AIB [American Institute of Banking classes] it
2 American Institute of Banking testbooks.
3 Schubert went to work for the Bank on February 19, 1969, and was fired
on March 13, 1970.
4 Nault was on sick leave from November 1, 1969 to May 14, 1970.
687
would definitely reflect on her evaluation report. I as-
sured her that this was an absolute fallacy. I imme-
diately reported it to Mrs. Shuver [of the personnel
department] who agreed with me this was not the poli-
cy of the bank.
Nault testified that another employee, Erika Townsend,
who did not work for her, made the same complaint about
Shubert. Nault explained that Schubert was appointed by
the Bank its "AIB Counsel." Schubert was given the respon-
sibility by the Bank, in Nault's words, "for getting as many
people in the bank to attend classes [conducted by AIB after
banking hours]. These are definitely outside your working
time or your work area. They have classes once a week or
twice a week."
Nault testified that from February to June 1969, Susan
Bartow "complained" to her as did:
the other girls, about the excessive idleness and the
constant conversations that would go on [in Shubert's
department]. Our departments are very, very close to-
gether. That particular area is a very high pressure area.
All the work is done by phone. Well, not all of it. I
would say 95 per cent of it is done by phone. Five per
cent of it is done by contact with the customer. It is
done in a very short length of time. We have definite
time schedules to meet to tie in with the Exchange back
East so consequently everything in there is moving fast.
It is moving loudly and noisily. All three of these girls
that I previously mentioned, all four, one had terminat-
ed and one had taken her place, all four of them came
to me on numerous occasions with the exact same com-
plaint, that they just could not concentrate on their
work because of this visiting that was going on all the
time.... The first complaint -I made was directly to Mr.
Pen Robe who at that time was in personnel. Shortly
thereafter I went to Mr. Comer, Mr. Claycomb, Mr.
Grubbs, [trust officer] at least a half a dozen times. I
went to Mr. Pen Robe specifically the very first time
and requested that either my department be moved or
some type of a barrier put up, just something that
would cut down on the observation of the idleness or
try and cut down on the conversations. He, in turn, had
a set of files put in. They were put on the wrong side,
but at least they did help somewhat.
When Nault was asked to specify what complaints she
made to Comer, Respondent's vice president, she replied:
"The excessive conversations, the constant daily irritations
to my people as well as the idleness of Mr. Schubert. There
was so much pressure in one department and not in an-
other."
With respect to Schubert allegedly "harassing" customers
to change their economy checking accounts to a 3-2-1 ac-
count (see page 8, above), Nault testified that she heard
Schubert in late May or early June speaking on the
telephone explaining to a customer in a manner that she:
would immediately take exception to. What I heard
him say was-now, these aren't the exact words-"You
will have to do it at one time or another. You may as
well do it now." . . . In the conversation, I heard him
say 3-2-1 offers thus and so as opposed to what you
have, but you will have to-the phrase that I heard
specifically.
From this complaint, Nault passed on to an alleged
"check" incident in which she claimed Schubert was both
involved and to blame. Her testimony reads as follows:
... We have what we call large checks in the banking
system. They are always referred to an officer. At the
time I was handling them, it would be over $5,000. It
may have changed now. These large amount checks
688
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
were stacked so high (indicating) and I took exception
to the fact that these would be sitting on Mr. Schubert's
desk unattended, left there for anyone to see. I took
exception to the length of time that they were on that
desk. In banking procedures they must be returned in
order to get them into the system. If there is any prob-
lem, they have got to be back. I went to Mr. Comer on
this particular area and asked why they should be up
there.
Continuing with this alleged incident involving unattend-
ed checks on Schubert's desk, Nault testified that Clay-
comb, one of the Bank's vice presidents, came to her desk
late in the summer of 1969:
. Mr. Claycomb came up in high agitation into the
department, rushed over to Mr. Schubert's desk, grab-
bed a stack of these large checks. I went over and said,
"Mr. Claycomb, what is the problem? Can I help you
with anything?" He said, "I have got to get these
checks. I want to know how much they are." It was an
excessive amount, what we refer to as a "kite" that is
going on between the different banks. A banker lost a
good deal of money .... I actually saw the checks, I
saw the amounts of the checks. We ran them on a tape,
on a machine in the department. I stood by while Mr.
Claycomb called the Federal Reserve and said we
would, by some means or another, het them up to the
Federal Reserve within the time limit that is allowed to
us. Otherwise we would be left holding these checks.
They were just insufficient, NSF.... It is NSF, they
are dust simply a "kite." There wasn't any money....
They have a small amount of money. They start out
with, say, $5,000 or $10,000. The checks that would be
deposited in another bank might be $15,000. They
would take that $5,000 and rush down to the other
bank and put it in. It is quite an involved situation. This
involved a goodly sum of money.
Concluding the unattended check incident, Nault next
testified with respect to Schubert's attitude toward other
bank employees. It appears that she took umbrage at Schu-
bert because he spoke disparagingly of another employee.
Her testimony was that she overheard Schubert refer to an
unnamed employee who had been with the Bank for over
thirty years as "essentially stupid" and complain that Schu-
bert "could get absolutely no cooperation from this partic-
ular person as well as the rest of the department." She also
described
Schubert's
"attitude"
in
dealing
with
Respondent's "oldtime bank employees" as "a superior atti-
tude." It was evident," explained Nault:
that the older [bank employees], were not progressive
enough for him. They were not progressive enough in
their thinking to suit him.... he did not seem to respect
their views as far as the policies that we had had all of
these years. He seemed to feel that he was a step ahead
in getting things done and the system per se was archaic
and there was a better way.
Nault's testimony continued about another incident
which occurred in October 1969:
When I was out of the office, we had a customer come
in, a very wealthy woman that we had been trying to
get her account. She was being handled by Mrs. Jack-
son, [employee] she was doing all the necessary things
to complete this transaction. The transaction was com-
pleted to the customer's satisfaction and certainly to
our satisfaction. We were able to do what we wanted
to do without pressing it too much further. Mrs. Jack-
son came to me highly upset afterwards. She said Mr.
Schubert came over to her and said to her that she
See fn 8
have offered this customer-and he did not know who
the customer was-she should have offered this cus-
tomer the benefit of our overdraft program and our
Mastercharge, which on the face of it, I would say, was
interfering very definitely.
This service would have no availability to her at all. It
just didn't come into it at all. We simply could never
bring this up to such a woman.... I immediately went
down to Mr. Comer and I went immediately down to
Mr. Grubbs. It was a very touchy subject . -We could
have lost the account.
Nault claims to have complained to Comer about
Schubert's conduct and deportment "at least six times." It
was elicited on cross-examination that Nault never brought
these many complaints about Schubert's misconduct, work
habits, and personal mannerisms to Henshaw, Schubert's
immediate supervisor , whose department was located next
to Nault's desk.
Curtis Claycomb: assistant vice president in charge of
operations and personnel, had his "first contact" with Schu-
bert in April 1969, in connection with a survey to determine
how many customers mailed their deposits to the Bank and
how many personally came to the Bank to make their de-
posits. His next contact with Schubert was the following
month with respect to the "3-2- 1 accounts," detailed above.
Then, in July 1969, a program was initiated to have more
companies deposit their withholding taxes in the Respon-
dent Bank. Claycomb testified that Schubert was partly
instrumental in devising a system to effectuate this program
which was superior to the system that had heretofore been
used. Claycomb continued : "It was later related to me that
Mr. Schubert developed this program entirely on his own,
but it was a combination of efforts."5
Then Claycomb testified that at a time when a "check
kiting operation" was being investigated by the Bank about
September 21, 1969, they were looking for some checks
which they eventually located on Schubert 's desk. Clay-
comb also testified about Schubert's mornin g discussions in
the business development department "which
[he] had
knowledge of," and which were not related to banking bus-
iness. Claycomb testified Comer told him that Schubert, in
conducting the business development meetings which were
held every two weeks that "Schubert was not conducting
himself properly along with the other officers at this meet-
ing." Claycomb then testified that he had heard about
Schubert's alleged tardiness and absentee problem. His tes-
timony continues that in late October or early November,
Comer and he decided to recommend to Campbell, the
manager of the Bank , that Schubert be terminated. They
then met with Campbell and recommended that Schubert
be terminated but Campbell told them that Henshaw, who
was Schubert's supervisor, had interceded and had request-
ed that Schubert be retained and that Campbell had decided
to give Schubert additional time to work into the job.6
Claycomb, it appears from his testimony , was resentful of
the fact that Schubert had asked for pay raises, indicating
that if he did not receive them he would accept the positions
that were offered him by other companies . It appears also
that Claycomb was annoyed with Schubert because he had
approached his supervisor, Henshaw, and asked him what
his future possibilities and opportunities for advancement
were with the Bank, at the same time that he disclosed that
he had had another job offer . Claycomb believed Schubert
"had used this approach to obtain his first salary review in
April" when he told the bank officials he had had a job
should have handled it in a different way, she should
6 Schubert was hired on February 19, 1969
BANK OF CALIF., NATIONAL ASSN.
offer. Claycomb continued that he did not have any further
conversations with Schubert from the latter part of Septem-
ber 1969, until March 13 , 1970, when he was fired. He states
that he did write on the back of Schubert 's performance
review that he thought:
there seemed to be developing ... a pattern that Mr.
Schubert was definitely dissatisfied with his salary at
that time and was not receiving the benefit of being
properly informed of what his next steps at the bank
would be.
Claycomb testified that on the morning of March 12,
1970, he received a call from Mrs . Shuver in the personnel
department that Schubert wished to discuss his present posi-
tion with the Bank . Claycomb authorized Shuver to discuss
the matter with Schubert . Later that day, Shuver reported
to Claycomb that Schubert had again:
asked about his present position and his line of progres-
sion within the bank and he felt the increase of $125 a
month [which he received on April 15 , 1969], was not
sufficient to carry him over a period of time . He felt
that he should receive an increase at that time.
Claycomb testified that he came to the conclusion that
Schubert was goin :
to be continually unhappy in his position at the bank
even if an adjustment in salary was made or job assign-
ment was made.... and this would reflect on the other
employees as well as the prospective customers of the
bank.
His testimony reads:
I then formed the opinion that maybe we should again
discuss the matter with Mr. Campbell about possible
termination of Mr . Schubert.... The following morn-
in [March 13] immediately after the officers ' meeting,
Mr. Henshaw came up to me and mentioned that Mr.
Schubert had approached him the day before dissat-
isfied about his salary, having found out at that time or
shortly before that he was not goin g to receive an in-
crease and he was seriously considering leaving the
bank. Mr. Henshaw stated that he talked to him and
apparently talked him out of it and things would be all
n t after that.... I felt like this was probably what
I felt to be the determining factor in terminating Mr.
Schubert from the bank.... I mentioned to Mr.l3en-
shaw that we could certainly not continue this way. I
did not mention the possible termination to Mr. Ren-
shaw at that time . T then related these facts to Mr.
Comer shortly before 10 o'clock [March 13] and Mr.
Comer agreed at that time that we should terminate
Mr. Schubert and do it then.
Claycomb and Comer decided to fire Schubert imme-
diately on Thursday morning, March 13, even though Ren-
shaw, who supervised Schubert's work, was temporarily out
of his office and Campbell , the manager of the bank, was
out of town until the following Monday. Schubert was sum-
moned to the personnel conference room sometime between
10 and 10 :30 that morning. Claycomb's testimony reads as
follows:
I don't remember exactly how we started the interview
out, but I mentioned to Mr . Schubert that I felt he was
dissatisfied at that time with his salary and his position
and his dissatisfaction would continue even though a
salary adjustment would be made at a later date or a
change of assignments made at a later date . I felt like
at that time no matter what we would do for him noth-
ing would satisfy him. Of course at that time there was
nothing that we could do for him anyway in the way
689
would certainly show throughout the bank and affect
other employees. As I previously mentioned, I felt it
would affect our customers. I felt he could not properly
represent the bank with this type of an attitude.
Q. Was the matter of using job offers mentioned?
A. I believe we did mention that he had discussed on
at least two occasions with me and other occasions with
Mr. Henshaw that he had had previous job offers. This
was another reason that I felt we really could not count
of his being with us any length or period of time. We
felt that he would be searching for other jobs and
would be leaving us at any time.
Q. How did the meeting end?
A. I believe that Mr. Schubert then asked if he could
be considered for a transfer to another location of the
Bank of California. I believe we responded that we felt
that would not improve the situation. He asked us if he
could file a grievance with Mr. Campbell. We said that
he could make an appointment with Mrs. Merrick, Mr.
Campbell's secretary, to see him. We also brow t out
that in any discussion he had with Mr. Campbe , oral
discussion or a letter, that a copy of this should be sent
to Mr. True, the vice president in charge of personnel
divisions for the entire Bank of California system.
Q. Did Mr. Schubert mention supervision at all?
A. He felt that he was not receiving proper guidelines
or supervision from his immediate supervisor, who
would have been Mr. Henshaw, which was somewhat
strange to me. This was not mentioned to Mr. Schubert,
but Mr. Henshaw was the only one that was helping
Mr. Schubert keep his job at the bank.
s
Q. What was the reason in your mind why Mr. Schu-
bert was being terminated?
A. The prime reason at that time , I felt, as I previous-
ly mentioned, that the pattern was developing that Mr.
Schubert would continue to be dissatisfied with his
position and with his employment with the Bank of
California. This assessment was made on a previous
experience dealing with this type of, ... dealing with
other employees in the past. I felt that he continually
would be dissatisfied, especially knowing at this time
that his next review, performance review , would be
approximately one year later in March of 1971. There
would be no adjustment to that time . With this knowl-
edge, he certainly would not perform to our expecta-
tions at the bank nor would present himself to our
customers in any good way. I just felt that there was no
way that he would be happy in any aspect of his em-
ployment with us. I thought it would be the best for
both Mr. Schubert and the bank that the termination
was made.7
On cross-examination it was elicited that the incidents
Claycomb testified to occurred 6 to 8 months prior to the
termination of Schubert on March 13 , 1970. Claycomb ad-
mitted that he had a conversation with Henshaw about 9:00
a.m., after the officers' morning meeting on March 13, and
that he did not indicate to Henshaw at that time that he was
thinking of terminating Schubert an hour later. He admitted
also that while Comer and he were discussing Schubert and
then decided to terminate him that they did not get in touch
first with Campbell, their superior. He was asked by counsel
of salary adjustment or promotion. I felt that knowing
7 For Schubert's version of his termination see Sec. III By Frank L. Schu-
this that he would be dissatisfied and his dissatisfaction
bert
690
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
if this was not strange in view of the fact that when he and
Comer recommended that Schubert be discharged back in
November of 1969, Campbell would not go along with their
recommendation. Claycomb testified the reason they did
not wait for Henshaw to return to the Bank before terminat-
mg Schubert was because:
... we felt Mr. Schubert would have to be terminated
at that moment because we felt that if we waiting for
Mr. Henshaw to return there may be a possibility that
he would again ask to wait for Mr. Campbell to come
back and again talk Mr . Campbell into keeping Mr.
Schubert in the bank. We felt that we must terminate
him at that time so that this would not occur.
Q. So, it never crossed your mind to wait until the
afternoon or perhaps the following day when Mr.
Campbell could be present and Mr . Renshaw could be
present to discuss this matter?
A. That's right.
s
s
s
TRIAL EXAMINER Did I understand your examination
correctly, and if I didn't, correct me, when you were
asked why you didn't wait for Henshaw to return, did
you testify it was because you felt Henshaw would try
to talk Campbell into retaining Schubert?
THE WITNESS That is right, sir. Mr. Henshaw on previ-
ous occasions was the only one that was able or did, in
fact, enable Mr. Schubert to retain his job.
TRIAL EXAMINER When was this previous occasion?
THE WITNESS. That was around October or early No-
vember when we had previously recommended his ter-
mination.
TRIAL EXAMINER What was your reason at that time
for recommending Schubert's termination?
THE WITNESS On my part, information that I had
covered in the file plus the remarks that had been made
to me by other employees and, in conjunction with Mr
Comer, remarks that had been made to him by other
employees.
TRIAL EXAMINER What remarks?
THE WITNESS Mr. Comer-remarks made to him by
Mrs. Nault in regard to the way she felt the Business
Development Department was performing his normal
duties and the conversation that Mr. Schubert had had
with some of her employees. On my art, it was based
on the surveys which he conductedpwhich were not
done to my satisfaction s plus at that time I had learned
that he had approached the bank with the suggestion
that he had another job offer to enable his salary in-
crease at the time in April of 1969.
R
k
#
i
TRIAL EXAMINER Could you refresh my recollection as
to the incident leading up to the incident itself? If I
correctly understood your testimony, and correct me if
I am wrong, the time and what occurred when Hen-
shaw talked Campbell out of firing Schubert.
THE WITNESS. This took place about the time Mr.
Comer and I recommended the initial termination,
which was in late October or early November. Mr.
Campbell related to both of us that he wanted to talk
to Mr. Henshaw about the termination. However, he
8 See fn. 5 where Claycomb's testimony appears to be self -contradictory
instructed me to go over the applications to see if there
was some possibility of hiring somebody who could fit
into the Business Development Department. I left the
conversation at that time. I was not present when he
talked to Mr. Henshaw.
We did locate a girl, as I mentioned, and interviewed
her and offered her the job, which she turned down. We
then related this to Mr. Campbell. This girl had been
a previous employee at the Bank of California and had
all of these qualifications, but we offered her considera-
bly less than what she was making and she turned the
job down.
At that time Mr. Campbell related that he had talked
to Mr. Henshaw and a decision was made not to termi-
nate Mr. Schubert at that time and to discontinue inter-
viewing for that position, which I did.
When Claycomb was asked on recross-examination
whether it was not Respondent's "standard policy" to con-
sult the employee's immediate supervisor before terminat-
ing the employee, Claycomb answered: "Normally, but this
is not true in all cases."
Thomas E. Comer: vice president and assistant to Camp-
bell, the bank manager, testified that there are approximate-
ly 262 regular employees and 15 part-time employees in the
Seattle Bank. During the period of time that Schubert
worked for the Bank from February 19, 1969, until March
13, 1970, Comer was in charge of the commercial loan de-
partment and he also assisted the personnel manager and
the operations officer from July 1969 until March 1970.
Comer described various meetings of the business develop-
ment department which were presided over by Schubert.
His testimony reads:
My observation of the meeting was, because of Mr.
Schubert's lack of banking experience and back-
ground, that I did not feel that he was in a position to
instruct officers that had been in the bank from 10 to
30 years on these programs.... In my opinion, I felt
there were certain programs at the bank such as officers
going out and making calls-each officer is assigned
three calls a week. During periods of time over the past
year and a half, it hasn't been possible for the calling
officers to be out in the field. They have had other
duties. On one occasion I felt that Mr. Schubert came
on rather strong in telling the officers what they should
do in accomplishing these calls. It appeared to me that
we were more concerned about the reports that were to
be returned in to our senior management than we were
in getting the ob done at the bank.... I also discussed
it with Mr. Renshaw and made the recommendation
that Mr. Henshaw conduct the meetings. That, at a
later date, was accomplished.
Shortly after October 1969, when Claycomb became the
personnel officer, Comer testified that Schubert's personnel
Pile was reviewed, at which time Claycomb informed Comer
that Schubert had received a "special increase" of $125 a
month, effective as of April 15, 1969. Comer's testimony
reads as follows:
At that point in time I didn't feel that Mr. Schubert was
earning the salary that he presently had. I could see no
basis for this special increase and, after a few minutes
discussion with Mr. Claycomb, I recommended that we
discuss the situation with Mr. Campbell.... there
also was a tardiness problem [with respect to Schubert].
... Immediately I recommended to Mr. Claycomb that
we discuss the situation with Mr. Campbell and at that
time I told Curt [Claycomb] that I was going to recom-
mend to Mr. Campbell that Mr. Schubert be terminat-
ed.... This was early in November or late October.
BANK OF CALIF., NATIONAL ASSN.
[Both Comer and Claycomb then discussed this matter
with Campbell.] ... I advised him [Campbell] what
Mrs. Nault had told me. So, when I approached Mr.
Campbell on this subject, I made a recommendation
that we terminate Mr. Schubert at that time because of
his tardiness and his absence from the bank, the fact
that I didn't feel that he deserved the salary that he was
receiving prior to the increase in salary, the fact that I
didn't feel Mr. Schubert was developing any new bus-
iness into the bank, the fact that, over-all, his work was
unsatisfactory.... Mr. Campbell, being appraised of
these things earlier agreed with my remarks.... Prior
to our leaving his office, Mr. Campbell instructed Mr.
Claycomb to start looking for a clerk at a salary much
less than what Mr. Schubert was making and to keep
him informed on what progress he was making.... Mr.
Campbell was not at all satisfied with the results of the
Business Development Department and he aired this
frequently.... I talked to Mr. Campbell the following
Monday or Tuesday after he talked to Mr. Henshaw.
Mr. Campbell advised me at that time that Mr. Ren-
shaw wanted to keep Mr. Schubert. He felt that in
working with him that he would be able to bring him
around and help him in business development. Mr.
Campbell at that point told him he was going to allow
him not to terminate Mr. Schubert at that time but give
him another extended period of time to watch him
closely to see what was accomplished by then.... This
occurred in late October or early November.
Comer then related a conversation that he had with Clay-
comb on the morning of Thursday, March 13, 1970, at a
time when Campbell was out of town until the following
Monday:
I told Mr. Claycomb that morning that I felt very
definitely that Mr. Schubert should have been termi-
nated back in November. He should have been termi-
nated in January again when I felt he was backing his
supervisor into a corner on certain demands, that he
felt that he had originally received a raise by using the
possibility of another job opportunity. I didn't feel that
he would become a very dependable employee.
Comer then testified with respect to the exit interview on
March 13, when he and Claycomb notified Schubert that he
was fired. His testimony reads as follows:
I believe I opened the meeting by telling Mr. Schubert
that we had called him in to review his job perform-
ance, or something to that effect.... His salary was
mentioned, I believe, and he mentioned then the possi-
bility of being transferred into another area of the bank
as a trainee , but to transfer him into another area of the
bank as a trainee at the salary he was receiving I didn't
think was justified.... During the course of the conver-
sation Mr. Schubert, I believe, indicated that he wanted
to stay at the bank. He wanted to know if there was
another area at the bank in which he could be transfer-
red. I believe he mentioned the credit department. I
believe it was Mr. Claycomb who advised him that for
us to transfer him to another area of the bank at the
salary he was receiving at that time as a trainee
was impossible. He was just out of the salary structure.
I believe Mr. Claycomb covered the fact of depend-
ability from the standpoint that on a couple of occa-
sions he had brought to the attention of his supervisor
and also Mr. Claycomb that he had otherjob offers and
I believe Mr. Claycomb expressed the opinion that in
a situation such as this the bank couldn't count on Mr.
Schubert being an employee from day to day... .
Before the end of the meeting Mr. Schubert asked-I
691
don't recall his exact words, but he asked to the effect
that "Is this the end or what are m7 alternatives as far
as explaining my side of the story?' He asked me if he
could see Mr. Campbell. I explained to him that Mr.
Campbell was out of the city and would return on
Monday, and after we completed our meeting there, I
suggested that he talk to Mrs. Merrick, Mr. Campbell's
secretary, and establish a time that was convenient
both for Mr. Schubert and Mr. Campbell. It was also
indicated that he could write a letter either to Mr. True
or to Mr. Claycomb and ask that a copy of the letter
be sent to me.
When Comer was asked his reasons for deciding to termi-
nate Schubert, he testified as follows:
The reasons I made the decision I made on March
13th was the fact I felt very strongly that Mr. Schubert
should have been terminated back in November, the
fact that he should have been terminated in January
when I felt he was backing a supervisor into a corner
who had no way of getting out. I felt very strongly that
Mr. Schubert was unhappy with his salary at the bank.
He was in the department of the Business Development
Department where he has to be out selling the bank to
the public, both customers and perspective customers,
and if [he] was unhappy with something, he wasn't
going to do a very goo job with selling. I very strongly
felt that Mr. Schubert was not earning his salary that
he presently was receiving.
Comer and all the other bank officers who testified stated
that the first time they knew Schubert was engaged in union
activities was when the bank received a complaint from the
National Labor Relations Board about a week after Schu-
bert was fired.
On cross-examination, it was elicited that during all the
months that Comer testified these alleged acts of miscon-
duct were occurnn , he never contacted Schubert's supervi-
sor, Henshaw, to forewarn him of his dissatisfaction with
the quality of Schubert's work performance.
When Comer was asked by the representative of the Gen-
eral Counsel what urgency necessitated the haste with which
Schubert was terminated on Thursday without the knowl-
edge of his supervisor, Henshaw, who was temporarily out
of his office, or not waiting until Campbell, the bank man-
ager, returned the following Monday, his answer was:
The great urgency was the fact that I made my mind
up back in October, late October or early November,
and Mr. Campbell concurred with my thoughts at that
time, that I felt it was something that had to be done.
I felt that there was no better time to do it than at that
particular time.... [Campbell] made the decision back
in November to retain him at Mr. Henshaw's request,
but he also told me that he agreed with my original
recommendation that Mr. Schubert should have been
terminated at that point.... The reason he agreed to
retain Frank Schubert, he was trying to give somebody
another chance to improve his situation.
TRIAL EXAMINER Now, in these various things that
you testified to that you found him to be delinquent in,
you might say, tardiness and not devoting full-time
attention to his duties, did you ever personally admon-
ish Schubert?
THE WITNESS No, sir, I did not.
On rebuttal, Schubert, the alleged discriminatee, testified
that shortly after he was employed by the Bank he became
692
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
interested in the American Insittute of Banking [AIB) and
so informed Mr. Pen Robe, then head of the personnel
department. Approximately 3 to 4 months later , Schubert
was asked by the Bank to serve as its AIB employee repre-
sentative. These AIB representatives, of whom there were 12
at the Bank, were assigned a specific area of the Bank with
authority to contact employees of that area in order to
apprise them of the various educational programs which
AIB offered, and the various social activities that were held,
including dances, dinners and sports activities . Schubert
denied that he ever told employees that they had to join
AIB, and failure to join would reflect poorly on their per-
sonnel rating. See Section III. By Peggy Nault, above.
Schubert's testimony with respect to the 3-2-1 accounts
reads as follows:
Well, I believe the last part of June 1969 , the Bus-
iness Development Department was taking charge of a
survey to attempt take out of the statements of the
special checking account customers those people who
were writing a high number of checks who kept a very
high average balance, which was left to the discretion
of our department, which shows a figure, I believe, of
$450, and so people whose average balance or monthly
balance never went below $450 and who wrote a high
number of checks, we were going to call them, which
we did, and inform the people that in the very near
future we would be converting over to a new type of
special checking account where there would not be a
monthly service charge but that the cost of the check
written was going to go up and because of the fact we
were a service organization, that we were there to serve
the people, that we felt that we should make it known
to them that the 3-2-1 very possibly would be cheaper
and more beneficial to the people .... Basically that I
would average out the number of checks they had writ-
ten over a specific period of time and inform them that
to continue that number of checks would be a cost of
a certain number, whatever the amount might be,
based on a 15 cent per charge for each check written,
so it might be convenient for them and in their best
interest to convert to the 3-2-1 . In the future if they
should find the 3-2- 1 was, in fact, a disadvantage, that
the bank would be more than happy to revert back and
put them back into their special account.
Schubert denied that he ever told any of the Bank's cus-
tomers they had to switch over from a thrift account to a
3-2-1 account. See Section III, B , Katherine McEvoy and
Peggy Nault, supra.
When he was asked on rebuttal whether one of his duties
as an employee of the business development department
was the reading of daily newspapers, Schubert replied as
follows:
One of the functions of the Business Development
Department was the marketing aspect. It was the duty
of the Business Development Department , and a par-
ticular part of my duties along with others , to scan the
daily newspapers to cut out the ads of our competitors
and. other commercial banks or mutual banks in the
area and savings and loan associations. These were, in
some instances, forwarded down to our marketing de-
partment in San Francisco , the head office, so as to
keep the marketing department there informed of what
was going on in the marketing area here. Also, I was
to scan the business section of the newspaper and the
Wall Street Journal for articles pertaining to customers.
The Business Development Department keeps a very
extensive file on customers of the bank and prospects
of the bank . I would cut the articles out and put them
in folders so that the officer in charge of that account
would have it at his fingertips. It was a very precise,
up-to-date record of what was going on.
Schubert concluded his rebuttal testimony by stating that he
was given instructions by his superior, Henshaw, to read the
newspapers in order to keep
informed
what the
Respondent's competitors were advertising and to so notify
the bank's marketing department in San Francisco.
C.
Credibility Resolutions
This is a case where the testimony of the General
Counsel's sole witness, Schubert, the alleged discriminatee,
is contradicted on the salient issues by the witnesses for the
Respondent. However, it is concluded that Schubert's testi-
mony is reliable because it is consistent with certain undis-
puted and demonstrable facts in this case , hereinafter
explicated. This conclusion is based also on my observation
of the witnesses with respect to the accuracy of their memo-
ries, their comprehension and their general demeanor on the
stand in answering the questions put to them.
In crediting the testimony of Schubert and discrediting
some of the testimony of the Respondent's witnesses, giving
weight to certain evidence as against other evidence, draw-
ing inferences from circumstantial and conflicting evidence,
and coming to certain conclusions, the trier of these facts
has necessarily had to detect and appraise various "potent
imponderables" permeating the record.9 One of these " o-
tent
onderables" is the demeanor of the witnesses. The
Board has recognized that the "demeanor of witnesses is a
factor of consequence in resolving issues of credibility,"10
and that "Credibility findings may rest entirely upon evi-
dence through observation which words do not, and could
not, either preserve or describe." [Emphasis supplied] 11
Credibility findings rest to varying degrees upon the evalua-
tion placed by the trier of the facts upon the demeanor of
witnesses. This type of evidence which does not appear in
the record and is comprised of elusive intangibles and "po-
tent imponderables" which are difficult to capture and to
describe by written words, often makes it difficult for the
trier of the facts to convey and to describe the impression
which a particular witness makes upon him .l
Judge
Learned Hand describes it as:
[findings] based on that part of the evidence which the
printed words do not preserve. Often that is the most
telling part, for on the issue of veracity the bearing and
delivery of a witness will usually be the dominating
factors, when the words alone leave any rational choice
... nothing is more difficult than to disentangle the
motives of another's conduct-motives frequently un-
known even to the actor himself. But for that very
reason those parts of the evidence which are lost in
print become especially pregnant ...
By this discussion of the evaluation placed upon the de-
meanor of the witnesses in testifying , it is not intended to
convey the impression that consideration was given exclu-
sively to this type of evidence. Concomitant consideration
was given equally to the surrounding circumstances, and the
consistency or inconsistency of the individual witness's tes-
timony with uncontroverted evidence and demonstrable
9 IA. of M v Labor Board 311 U.S 72, 79
10 Hadley Manufacturing Corporation, 108 NLRB 1641 ; Roxboro Cotton
Mills, 97 NLRB 1359 at 1368
11 Roadway Express Inc, 108 NLRB 874.
12 N L R B v James Thompson & Co, Inc, 208 F.2d 743, (C.A 2)
13 N L R B v
Universal Camera Corp., 190 F. 2d 429, 430, 431 (C A 2).
BANK OF CALIF., NATIONAL ASSN.
facts in determining which version should be credited.14
Moreover, in crediting one version as against another, the
trier of the facts often derives considerable aid in comparing
the witness's testimony on direct examination with what he
testified to on his cross-examination.
Belief rather than knowledge is, of course, the basis upon
which every trier of facts must reach his conclusion. The
Trial Examiner has been acutely aware of the foregoing
observations because in the type of issues disputed in this
proceeding where the witnesses of the General Counsel and
Respondent are in sharp conflict as to what actually oc-
curred, the process of hearing can produce only a belief
concerning what the facts are , rather than a disclosure of the
facts themselves. The trier of the facts must, therefore, be
content to have a belief concerning the facts, rather than
knowledge of them.
D.
Discussion and Conclusions
We have here then a situation in which the General Coun-
sel claims that Schubert was discharged for his union activi-
ty, whereas the Respondent's version, as testified to by its
witnesses, is that Schubert was terminated because of his
attitude towards his job and fellow employees , his ineffi-
ciency, idleness, absenteeism, tardiness, excessive nonbusi-
ness discussions with other employees , disturbing other
employees with his loud-voiced conversations, reading
books and papers on bank time , threatening fellow employ-
ees if they did not join AIB, harassing customers (3-2-1
accounts), negligently leaving checks on his desk , criticizing
old-time employees, his repeated requests for pay raises by
using the possibility of another job opportunity , dissatisfac-
tion with his job and rate of pay, and the unsatisfactory
quality of his work as evidenced by his failure to bring new
business into the Bank . Moreover, Respondent alleges that
as early as November 1969, it took steps to terminate Schu-
bert.
Finally,
Respondent categorically disavows any
knowledge of Schubert's union activities prior to the time
that he was discharged.
Nevertheless , after observing the witnesses, analyzing the
record and inferences to be drawn therefrom , and carefully
considering all countervailing evidence, it is concluded that
Schubert was discharged in violation of Section 8(a)(3) be-
cause of his union activity on behalf of the Banking Guild,
the Charging Party herein . Schubert appeared to be a sin-
cere and truthful witness and the events described by him
were narrated in a straightforward manner which followed
a logical sequence, and are consistent with the attendant
circumstances in this case. This is in contrast to Claycomb's
and Comer's vague, inconsistent, and generalized version of
their reasons for firing Schubert which in some of its aspects
was not only implausible but also incredible and patently
fictitious.
Moreover, it stretches credulity too far to believe that
there was only a coincidental , temporal connection in the
close proximity between Schubert s meeting with Wilbur
Gates, director of the Banking Guild , on March 6, 1970,
followed by Schubert's beginning on March 10 , to solicit
five employees to organize a union which culminated in his
summary and precipitous discharge 3 days later .15 In short,
the timing , suddenness, and summary nature of the dis-
charge, coupled with the fact that Schubert was the instiga-
tor and sole advocate in attempting to or nize the union
in the Bank, leads to an inference of unlawful motivation for
his discharge.16
14 N L.R B v. Willes, 188 F.2d 917, 925 (C.A 6); Victor Mfg. & Gasket
Co v. NL. R.B., 174 F.2d 867, 868 (C.A. 7).
15 Angwell Curtain Co v. N L.R B, 192 F 2d 899, 903 (C A. 7).
693
Argumentatively assuming the unlikely premise that Re-
spondent may have had some cause for dissatisfaction with
Schubert's attitude and quality of his work prior to the
termination of his employment, yet, as the Court of Appeals
for the Third Circuit observed in a somewhat similar case
his "work apparent became intolerable only after he had
joined the union."1
Then too, account must be taken of the manner in which
Schubert was discharged in that it was made without even
consulting Henshaw, Schubert's supervisor , who was in im-
mediate contact with him and the quality of his work.18
Equally,
if
not
most,
significant
are
Comer's and
Claycomb's failure to wait 2 days until Campbell 's return in
order to obtain his approval to fire Schubert which was
necessary when they recommended Schubert's discharge in
November 1969, and which Campbell rejected . Morover,
McEvoy and Nault were profusely critical of Schubert, tes-
tifying as to the most trivial and in some instances irrelevant
incidents in which he was purportedly to blame , yet neither
of them voiced any of their many complaints to Schubert
nor to his immediate supervisor, Henshaw. This is partic-
ularly strange in the case of Nault , a supervisor, whose
witness-stand deportment marked her as aggressively asser-
tive, that she would not have told Schubert in no uncertain
terms that his constant and noisy socializing with other
employees distracted her from her work . Also, Comer and
Claycomb never admonished Schubert for his many alleged
shortcomings which they testified to at the hearing in con-
siderable detail. They gave him no such warning before
discharging him. Such action on their part was not natural.
If they had really been disturbed by the circumstances they
have assigned as reasons for his discharge, and had no other
circumstances in mind , some caution that the offending
derelictions of duty be not repeated, or some opportunity
for correction of these alleged objectional work practices
would have been inevitable. 9 Thus firing Schubert without
warning and without discussing his alleged faults with him
prior to Makin the decision to discharge him further indi-
cates that the discharge was illegally motivated.20 Such arbi-
trary action would seem more consistent with antipathy for
his overt union activity than concern with vague and gener-
alized complaints alleged for Schubert's termination. 21 The
fact that the record in this case discloses that there was no
substantive basis whatsoever for Respondent's alleged dis-
satisfaction with Schubert as an employee is persuasive that
the decision to discharge him was made because of his
union activities. This permissible inference of illegal motiva-
tion, moreover, is further augmented by the fact that the
Respondent's asserted nondiscriminatory reasons for the
abrupt discharge simply do not withstand scrutiny. In sum,
the asserted grounds for discharge put forth by Respondent
are patently pretextuous and support rather than detract
from the General Counsel's prima facie case. This fact in
itself strengthens the conclusions that the immediate cause
of Schubert's discharge was his union activity.
Respondent contends, however, that it did not know of
Schubert's union activities at the time his employment was
terminated. It is true that in order to find that a discharge
of an employee was motivated by discriminatory purposes,
it must be shown that the employer knew or believed that
the employee had participated- pin union or concerted activi-
16 See N.L.R.B. v. Camco, incorporated, 369 F 2d 125, 127 (C.A. 5),
N.L.R.B. v. Davidson Rubber Company, 305 F 2d 166, 169 (C.A l).
17 N. L. R.B. v. Electric City Dyeing Co, 178 F.2d 980, 983 (C.A. 3).
18 See Sec. III. B, Curtis Claycomb.
19 E Anthony & Sons, Inc v. N.L.R B , 163 F.2d 22, 26-27 (C.A.D.C.).
20 N.L R.B v. Lone Star Textiles, Inc, 386 F.2d 535, 536 (C .A. 5); Elias
Brothers Big Boy, Inc v N LR B., 325 F.2d 360, 366 (C.A. 6)
21 See N L.R B v . Booker, 180 F.2d 727, 730 (C.A. 5)
694
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ties. In this connection it will be recalled that for some
fatuous reason, Schubert, in soliciting employees to organ-
ize a union, spoke to three "supervisors." The first of these
was Candi Allender whom he described as a "supervisor."
He also spoke to Richard Vincet whom he described as a
"supervisor," and Roger Schmidt, another "supervisor,"
whom he also asked if he were interested in helping organize
a union at the Bank. See Section III. B, Frank L. Schubert,
above. It would seem, therefore, under such circumstances,
that these supervisory personnel's knowledge of such activi-
ty would normally be imputed to the Respondent. Inas-
much as direct evidence of such knowledge is rarely
obtainable in cases of this type, especially as employers
acquire some sophistication about the rights of their em-
ployees under the Act, it would seem to be a permissible
inference that such knowledge may be established by cir-
cumstantial evidence. 22
Thus, Schubert worked in a small department in the Bank
comprised of Henshaw and 3 employees, including himself,
and the entire Bank had 262 full-time employees. It is not
too unreasonable an inference that in a department of the
Bank of this size, it is highly unlikely that information as to
Schubert's
union activities
would have escaped the
Respondent's attention when it is considered he approached
"supervisors" to join the union and worked in a department
of three employers 23 Moreover, Schubert was the sole in-
stigator in attempting to organize a union at the Bank. His
solicitation activities in this regard were openly conducted
and with dubious discretion as manifested by the fact that
of the five employees he solicited, three of them were, as he
testified, supervisors. No evidence was introduced to rebut
his characterization of them as supervisors. It is inconceiva-
ble Respondent did not learn from one or more of these
employees about Schubert's union activities. Under such
blatant circumstances, it is not too unreasonable to infer
that Schubert's involvement in this organizational effort is
unlikely to have escaped the Respondent's attention and
knowledge.24
But Respondent argues that in order to show knowledge
of Schubert's union activities on its part prior to his dis-
charge, direct evidence of such knowledge must be proved.
Contrary to this contention is the well-established principle
that direct evidence is not necessary to support a finding of
knowledge of union activity, but that such knowledge may
be inferred from the record as a whole. The Supreme Court
rejected such a contention in another case, stating that:
The Board was justified in relying on circumstantial
evidence of discrimination and was not required to
deny relief because there was no direct evidence that
the employer knew [these discnminatees] had joined
[the union] and was displeased or wanted to make an
example of them.25
22 Shattuck Denn Mining Corporation v N L R B, 362 F 2d 466, 470 (C A
9
) 23
Wiese Plow Welding Co, Inc, 123 NLRB 616, 618 ; New French Benzol
Cleaners and Laundry, Inc, 139 NLRB 1176, 1179, fn 10, Brezner Tanning
Co, 50 NLRB 894 See also N L R B v. Melrose Processing Co, 351 F 2d 693,
697-698 (C.A 8), Champion Paper, Inc v N L R B , 393 F 2d 388, 394 (C A
6), N L.R B v Joseph Ante!!, Inc, 358 F.2d 880, 882 (C A
1), N.L R B v
Lawson Printers, Inc, 408 F 2d 1004 (C A 6) Cf
Wyco Metal Products, 183
NLRB No 93, p 3
24 See N L R B v Schill Steel Products, Inc, 340 F 2d 568, 572 (C A 5),
Northern Virginia Steel Corporation v N L R B, 300 F 2d 168, 173 (C A 4)
25 N L R B v Link-Belt Co, 311 U S 584, 602, The Circle K Corporation,
173 NLRB No 107 For an interesting discussion on "direct evidence," see
Pacific Lumber Company, 49 NLRB 1145. Cf Air Associates, Inc, 20 NLRB
356, 375 and enfd as modified 121 F 2d 586 (C A. 2) It has the following
remarkable language
The respondent contends that it had no knowledge of the union
Since the issue is one of subjective intent, direct evidence
is rarely attainable and the difficult task of determining
actual motive depends principally on drawing inferences
from circumstantial evidence. As the Court of Appeals for
the Ninth Circuit said in Shattuck Denn Mining Corporation
v. N.L.R.B., supra at 470:
Actual motive, a state of mind, being the question,
it is seldom that direct evidence will be available that
is not also serif-serving. In such cases, the self-serving
declaration is not conclusive; the trier of fact may infer
motive from the total circumstances proved. Otherwise
no person accused of unlawful motive who took the
stand and testified to a lawful motive could be brought
to book.
Accordingly, it is found, based upon the entire record and
the inferences drawn therefrom, that Respondent was aware
of Schubert's union activities at the time he was termi-
nated 26
Against this fact pattern, Respondent's efforts to exoner-
ate itself from a finding of unfair labor practices are singu-
larly
unimpressive.
The reasons advanced by the
Respondent for Schubert's discharge are unconvincing. In
fact, the only reason given to Schubert's supervisor, Ren-
shaw, and by Claycomb and Comer for his termination was
Schubert's `dissatisfaction" with his job. Like this reason,
the faults testified to by these two bank officials as occasion-
ing Schubert's discharge are not only indefinite, vague and
general accusations but they find no support in the record.
In the rather generalized complaints about his work, the
incidents testified to were remarkable in their triviality,
lacking in their specificity, and doubtful in their verity when
subjected to the searching glare of inquiry. Claycomb's and
Comer's reasons for firing Schubert were not related to any
specific incidents. Rather, they are broad, subjective char-
acterizations and were, therefore, quite impossible to refute
and difficult to impugn through cross-examination. An ob-
scurely nebulous and puzzling reason beyond comprehen-
sion
alleged by them for Schubert's discharge was
"dissatisfaction" which "would affect other employees" and
"our customers" so that "he certainly would not perform to
our expectations." Such unconvincing testimony leads to
the conclusion that the Respondent's dissatisfaction with
Schubert was more fictitious than real and played no part
in the decision to discharge him.
However, the existence of some justifiable cause for dis-
charge is no defense, if it is not the moving cause27 The
co-existence of a separate, valid, and justifiable cause for
discharge does not eliminate the unlawful aspect of the
employer's action where motivated by a cause proscribed by
the Act28 Moreover, even if a discharge is only partially
motivated by the employee's union activities, it is neverthe-
less unlawful29
membership of [the alleged discrimmatees], and that, therefore, the
allegation that these employees were discnmmatonly discharged must
fall
However, the prohibition of the Act extends to any discharge
which is intended, or has as its purpose and effect, to discourage
membership in a labor organization, a discharge for that purpose
having been found, knowledge by the respondent of the union mem-
bership of the employee for that reason discharged becomes immateri-
al
26 N L R B v Pembeck Oil Corporation, 404 F 2d 105, 110 (C.A 2)
27 N L R B v Security Plating Company, 356 F 2d 725, 728 (C.A 9);
Aeronca Manufacturing Company v N L R B, 385 F 2d 724, 727 (C.A 9).
28 Wells, Inc v. N L R B, 162 F 2d 457, 460 (C A. 9), NLRB v Swiner-
ton, et a! , 202 F 2d 511, 515-516 (C A. 9)
29
N L R B v Pembeck Oil Corporation, 404 F 2d 105, 109 (C A. 2),
N L R B v American Manufacturing Company of Texas, 351 F 2d 74, 79 (C A.
5) Cf. N L R B v. Tonkin Corporation of California, 352 F 2d 509, 511 (C A
9), Virginia Metalcrafters, 158 NLRB 958, Winn-Dixie Granville, 157 NLRB
657
BANK OF CALIF., NATIONAL ASSN.
Significant also is the fact that Schubert never received
any warnings or discipline about his work or attitude, and
there is no credible evidence that he was anything other
than an able and willing employee . Significant also is the
condoning by the Respondent of Schubert's numerous al-
leged inadequacies which occurred prior to the advent of
the union and a number of months before his discharge, so
that it strains credulity to believe they could have been the
reasons for his discharge . Furthermore, Respondent's un-
specific claim that Schubert's discharge was motivated, in
part, by his failure to bring in the business which they ex-
pected of him was not corroborated by the production of
the relevant documentary evidence in its possession to
F
rove its oral contention. The Respondent's unexplained
failure to support this charge by the production of such
documentary records , or at least producing a witness who
would testify as to a specific single instance of Schubert not
bringing in enough new business in order to prove this
crucial fact, warrants drawing an inference that if adduced
it would not have been favorable to the Respondent 30
Inasmuch as the record is devoid of any substantial evi-
dence that lack of qualifications or any other valid reason
played any role whatsoever in motivating Respondent to
discharge Schubert, it seems evident that the real reason for
his discharge was his union activity , a violation of Section
8(a)(3) and (1) of the Act. It is found, furthermore , that the
multiple explanations and unspecific and unconvincing
reasons given for the discharge of Schubert create a suspi-
cion that they were offered to conceal an unlawful antiun-
ion motive, which in the situation was an attempt to forestall
union activity and thus remove a potential nucleus for an
incipient union movement at the Seattle bank by demon-
strating to the other employees there and in its other banks,
the threat of like action if they had any notions which were
sympathetic towards the union movement or Schubert, the
discharged union proponent. "Obviously the discharge of a
leading union advocate is a most effective method of under-
mining a union organizational effort 31
The multiple and shifting reasons for explaining the
Respondent's decision to fire Schubert are more consistent
with the building of a defense than a good-faith discharge
for cause.32 Moreover, the Board and courts have held in
other cases, that such reasons are often indicative of a dis-
criminatory antiunion intent .33 Furthermore, Schubert's
work record belies these multiple , shifting and unconvinc-
ing reasons advanced by Respondent to justify Schubert's
discharge. It is uncontradicted that Schubert received a let-
ter of commendation from Respondent's main office in San
Francisco, which was unusual , as evidenced by Henshaw's
comment that "We don't see too many [such] letters." Then,
too, there is the uncontroverted fact that Schubert received
two increases in salary and favorable reports by the Bank
on the quality of his work, which is cogent proof that he was
a satisfactory employee. Moreover, Henshaw admitted that
Schubert's precipitous discharge while he was away from his
office came as a complete surprise to him and when asked
if it was "unusual," answered : "It might be considered so."
Then too, it will be recalled that Henshaw "backed" Schu-
30 Interstate Circuit, Inc v
U S, 306 U S 208, 225-226, N L R B v
A P W Products Co, 316 F 2d 899, 903 (C A. 2), N L.R B v Wallick, et a!,
198 F 2d, 477, 483 (C A 3), Concord Supplies & Equipment Corp, 110 NLRB
1873.
31 N L R B v Longhorn Transfer Service, Inc, 346 F 2d 1003, 1006 (C A
5)
32 Santa Fe Drilling Company v. N L R B, 416 F.2d 725, 729 (C A 9)
33 Dant & Russell, Lid, 92 NLRB 307, 320, Intertown Corporation, 90
NLRB 1145, 1188 A J Krajewski Manufacturing Co v NLRB, 413 F 2d
673, 675-676 (C A 1)
695
bert when Claycomb and Comer recommended in Novem-
ber 1969 that he be fired. Also, Henshaw acknowledged that
there was "considerable improvement" in Schubert's absen-
tee and tardiness record which occurred a considerable
length of time before he was fired. In fact, most of the
complaints with respect to the quality of his work occurred
almost exclusively 4 to 12 months before his discharge.
It will be recalled that Claycomb testified about unat-
tended checks being found on Schubert's desk during the
latter's absence from the office on September 21, 1969, 6
months before his discharge, yet the Bank failed to prove by
reliable evidence that it was Schubert who was guilty of
having left these checks there . The complaint that Schubert
read in the office turned out to be nothing more than Amen-
can Institute of Banking books and as for the newspapers
which he read, it stands uncontradicted in the record that
Henshaw required him to scan the daily papers in order to
keep abreast of what the Bank's competitors were advertis-
ing. The hyperbolic accusation that Schubert "harassed"
customers in endeavoring to get them to shift to "3-2-1"
accounts, appears to have been nothing more than a Mun-
chausenism, or a stretch of the imagination.
Even those of Schubert's detractors who voiced com-
plaints about him, grudgingly admitted he had some virtues.
Claycomb conceded that the withholding tax program
Schubert helped to devise was superior to the existing sys-
tem. Moreover, when Comer and Claycomb recommended
to Campbell in November 1969 that Schubert be fired, Hen-
shaw interceded and Campbell refused to go along with
their recommendation, which significantly indicates that
Campbell was either doubtful or ascribed insufficient va-
lidity to their reasons for recommending his termination.
Furthermore , at no time during Schubert's terminal inter-
view did Comer or Claycomb confront him with the many
delinquencies which they charged him with when the'testi-
fied at the hearing. It seems that both Claycomb s and
Comer's complaints centered about their being irked at
Schubert inquiring of the bank officials as to what his future
prospects were with the Bank and their annoyance at his
receiving more pay than some "supervisors ." Finally, the
record evidence demonstrates that most of the reasons as-
serted by the Bank at the hearing were apparently after-
thoughts dredged up to support the Bank's unlawful action.
Accordingly,
when every other plausible motive has been
eliminated and the reasons advanced are not persuasive, the
union activity may well disclose the real motive behind the
employer's action."34 For these reasons, it is found that
Respondent violated Section 8(a)(3) and (1) of the Act when
it discriminatorily discharged Frank Schubert on March 13,
1970.
CONCLUSIONS OF LAW
1. The Respondent is an employer engaged in commerce
within the meaning of Section 2(6) and (7) of the Act.
2. The Union is a labor organization within the meaning
of Section 2(5) of the Act.
3. By unlawfully discharging Frank Schubert on March
13, 1970, Respondent engaged in unfair labor practices
within the meaning of Section 8(a)(3) and (1) of the Act.
4. The aforesaid unfair labor practices are unfair labor
practices within the meaning of Section 2(6) and (7) of the
Act.
THE REMEDY
Having found that Respondent was at least partially mo-
34 N L R B v Melrose Processing Co, supra at 699
696
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
tivated in its discriminatory treatment of the above-named
individual by his activities on behalf of the Union 35 and
thereby engaged in unfair labor practices as above set forth,
it will be recommended that it cease and desist therefrom
and take affirmative action, set forth below, found neces-
sary and designed to effectuate the policies of the Act.
Having found that Respondent discriminatorily termi-
nated and discharged Frank Schubert, it will be recom-
mended that it offer to him immediate ,
full,
and
unconditional reinstatement to his former or substantially
equivalent position, without prejudice to his seniority or
other rights, privileges, or working conditions , dismissing, if
necessary, anyone hired in such job on and after March 13,
1970, and make him whole for any loss of earnings suffered
by reason of the discrimination against him , by pa 'ng to
him a sum of money equal to the amount he would have
earned from the date of the discrimination against him until
such discrimination has been fully eradicated, less his net
earnings during the period of such discrimination. Backpay
with interest at the rate of 6 percent per annum shall be
computed in the manner set forth in F. W. Woolworth Com-
pany, 90 NLRB 289, and Isis Plumbing & Heating Co., 138
NLRB 716.
Inasmuch as the discharge of employees for reasons of
union affiliation or concerted activity has been regarded by
the Board as one of the most effective methods of defeating
the exercise by employees of their rights to self-organiza-
tion, the Trial Examiner recommends , therefore, that Re-
spondent be required to cease and desist from in any man-
ner interfering with, restraining, or coercing its employees
in the exercise of rights guaranteed in Section 7 of the Act.36
RECOMMENDATIONS
Accordingly, upon the basis of the foregoing findings of
fact and conclusions of law, and upon the entire record, it
is recommended pursuant to Section 10(c) of the National
Labor Relations Act, as amended , issuance of the following
recommended:
ORDER
Respondent Bank of California, National Association, its
officers, agents, successors, and assigns, shall:
1. Cease and desist from:
(a)Discouraging membership in the Banking Guild, Divi-
sion of Professional Office and Industrial Union (MEBA),
or any other labor organization by discriminatorily dis-
charging any of its employees or discriminating in any other
manner with respect to their hire or tenure of employment
or any term or condition of employment.
(b)In any other manner interfermg with, restraining or
coercing its employees in the exercise of their rights to self-
organization, to form labor organizations, to join or assist
Banking Guild, Division of Professional Office and Indus-
trial Union (MEBA), or any other labor organization, to
bargain collectively through representatives of their own
choosing and to engage in concerted activities with the pur-
pose of collective bargaining or other mutual aid or protec-
tion, or refrain from any and all such activities.
2. Take the following affirmative action which will effec-
tuate the policies of the Act:
(a) Offer Frank Leo Schubert immediate and full rein-
statement to his former job or , if that job no longer exists,
to a substantially equivalent position without prejudice to
his seniority or other rights and privileges, and make him
whole for any loss of pay that he may have suffered by
reason of the Respondent's discrimination against him in
accordance with the recommendations set forth in this De-
cision in the section entitled "The Remedy."
(b) Make Frank Leo Schubert whole for any loss of pal
that he may have suffered by reason of the Respondent s
discrimination against him in accordance with the rec-
ommendations set forth in the section of this Decision enti-
tled "The Remedy."
(c) Notify Frank Leo Schubert if presently serving in the
Armed Forces of the United States of his right to full rein-
statement, upon application, in accordance with the Selec-
tive Service Act and the Universal Military Training and
Service Act, as amended, after discharge from the Armed
Forces.
(d) Preserve and upon request, make available to the
Board or its agents, for examination and copying, all payroll
records, social security payment records, timecards , person-
nel records and reports, and all other records necessary to
analyze the amount of backpay due and rights of employ-
ment under the terms of this Decision.
(e) Post at its premises in Seattle, Washington, copies of
attached notice marked "Appendix. "37 Copies of said no-
tice, to be furnished by the Regional Director for Region 19
of the Board, shall, after being duly signed by Respondent,
be posted by it immediately upon receipt thereof and be
maintained by it for a period of 60 consecutive days there-
after in conspicuous places including all places where no-
tices to employees are customarily posted. Reasonable steps
shall be taken by Respondent to insure that said notices are
not altered, defaced, or covered by any other material.
(f) Notify the aforesaid Regional Director, in writing,
within 20 days from the date of receipt of this Decision what
steps it has taken to comply herewith .38
3s NL.R.B v. Symons Manufacturing Co., 328 F.2d 835, 837 (C.A. 7)
36 N.L.R.B. v. Entwistle Mfg Co., 120 F.2d 532, 536 (C.A. 4).
77 In the event no exceptions are filed as provided by Section 102.46 of the
Rules and Regulations of the National Labor Relations Board , the findings,
conclusions, recommendations, and Recommended Order herein shall, as
provided in Section 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 . In the event that the Board's
Order is enforced by a Judgment of a United States Court of Appeals, the
words in the notice reading "Posted by Order of the National Labor Rela-
tions Board" shall be changed to read "Posted Pursuant to a Judgment of
the United States Court of Appeals Enforcing an Order of the National
Labor Relations Board."
38 In the event that this Recommended Order is adopted by the Board, this
provision shall be modified to read: "Notify the Regional Director for Re-
gion 14, in wasting, within 10 days from the date of this Order, what steps
it has taken to comply herewith."
APPENDIX
NOTICE TO EMPLOYEES
POSTED BY ORDER OF THE
NATIONAL LABOR RELATIONS BOARD
An Agency Of The United States Government
After a trial at which both sides had the opportunity to
present their evidence, a decision has been issued finding
that we violated the law and ordering us to post this notice
and actually do what we say in this notice.
WE WILL reinstate Frank Leo Schubert to his former
position without loss of seniority or other rights and
privileges and will pay him for any loss of wages he
suffered as a result ofthe discrimination which it has
been found that we practiced against him.
BANK OF CALIF., NATIONAL ASSN.
WE WILL NOT discharge or otherwise discriminate
against employees because they join or assist the Bank-
ing Guild or any other labor organization.
WE WILL respect your rights to self-organization, to
form, join, and assist any labor organization, and to
bargain collectively about terms and conditions of em-
ployment through Banking Guild or any other repre-
sentative of your own choosing, and to engage in other
concerted activities for the purpose of collective bar-
gaining or other mutual aid or protection, or to refrain
from any or all such activities, and WE WILL NOT inter-
fere with, restrain, or coerce, you in the exercise of
these rights.
BANK OF CALIFORNIA, NATIONAL
ASSOCIATION
(Employer)
Dated
By
697
This is an official notice and must not be defaced by
anyone.
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.
Any questions concerning this notice or compliance with
its provisions, may be directed to the Board's Office, Re-
public Building, Tenth Floor, 1511 Third Avenue , Seattle,
Washington 98101, Telephone 583-4532.
(Representative)
(Title)