197 NLRB 837
Bethlehem Steel Corp.
BETHLEHEM STEEL CORP.
Bethlehem Steel Corporation (Shipbuilding Depart-
ment)
and Beaumont
Metal
Trades
Council,
AFL-CIO. Case 23-CA-3881
June 21, 1972
DECISION AND ORDER
BY CHAIRMAN MILLER AND MEMBERS JENKINS,
KENNEDY, AND PENELLO
On June 22, 1971, Trial Examiner Thomas F.
Maher issued the attached Decision On Motion To
Dismiss in this proceeding. Thereafter, the General
Counsel filed exceptions and a supporting brief, and
Respondent filed an answering brief.
The Board has considered the record and the Trial
Examiner's Decision on the motion to dismiss in
light of the exceptions and briefs and decided to
affirm the Trial Examiner's rulings, findings, and
conclusions and adopt his recommended Order, as
modified below.
The Trial Examiner granted the Respondent's
motion,
made at the conclusion of the General
Counsel's case-in-chief, to dismiss the complaint in
its entirety on the grounds that the unfair labor
practice
alleged therein involved a question of
contract interpretation which the parties had con-
tractually agreed to resolve exclusively through their
grievance-arbitration
procedures,
and that the
Charging Party had failed to avail itself of that
procedure although the Respondent indicated will-
ingness to do so.
For the reasons fully set forth in our recent
Collyeri decision, we agree with the Trial Examiner
that because this dispute involves interpretation of
the contract between the parties, and arises from the
parties' relationship under the contract, it should be
resolved in the manner which that contract pre-
scribes. As we said in Collyer, supra, involving facts
not unlike those here, the Board is vested with
authority to withhold its processes in cases, such as
this, where the contract between the parties provides
a quick and fair means for resolving their dispute.
Accordingly, we conclude that our obligation to
advance the purposes of the Act is best discharged by
deferral to the contract's arbitral processes.
As in
Collyer,
however, we shall retain limited
jurisdiction of this proceeding against the possibility
that it is not resolved with reasonable promptness or
the arbitration proceeding fails to comply with our
standards of fairness established under Spielberg
Manufacturing Company.2
REMEDY
Without prejudice to any party and without
197 NLRB No. 121
837
deciding the merits of the controversy, we shall order
that the complaint herein be dismissed, but we shall
retain jurisdiction for a limited purpose. As we noted
in Collyer, supra, that decision represented a develop-
mental step in the Board's treatment of these
problems and the controversy there arose at a time
when the Board's decisions may have led the parties
to conclude that the Board approved dual litigation
of this controversy before the Board and before an
arbitrator. We are also aware that the parties herein
have not resolved their dispute by the contractual
grievance and arbitration procedure and that, there-
fore, we cannot now inquire whether resolution of
the dispute will comport with the standards set forth
in Spielberg, supra. In order to eliminate the risk of
prejudice to any party we shall retain jurisdiction
over this dispute solely for the purpose of entertain-
ing an appropriate and timely motion for further
consideration upon a proper showing that either (a)
the dispute has not, with reasonable promptness after
the issuance of this decision, either been resolved by
amicable settlement in the grievance procedure or
submitted promptly to arbitration, or (b) the griev-
ance or arbitration procedures have not been fair
and regular or have reached a result which is
repugnant to the Act.3
ORDER
Pursuant to Section 10(c) of the National Labor
Relations Act, as amended, the National Labor
Relations Board orders that the complaint herein be,
and it hereby is, dismissed; provided, however, that:
Jurisdiction of this proceeding is hereby retained
for the limited purposes indicated in that portion of
our Decision and Order herein entitled "Remedy."
MEMBER JENKINS, dissenting:
For the reasons expressed in Member Fanning's
and my dissents in Collyer and cases since then, I
would not defer to arbitration, but determine the
case on the merits.
Collyer Insulated Wire, A Gulf and Western Systems Co, 192 NLRB
No 150
2 112 NLRB 1080, 1082
3 Collyer Insulated Wire, supra
TRIAL EXAMINER'S DECISION ON MOTION
TO DISMISS
STATEMENT OF THE CASE
THOMAS F. MAHER, Trial Examiner: Upon a charge filed
by Beaumont Metal Trades Council, AFL-CIO, on
February 11, 1971, against Bethlehem Steel Corporation
(Shipbuilding Department), Respondent herein, the Re-
gional Director for Region 23 of the National Labor
Relations
Board, herein called the Board, issued a
complaint on behalf of the General Counsel of the Board
838
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
on April 6, 1971, alleging violations of Section 8(a)(1) and
(5) of the National Labor Relations Act, as amended (29
U.S.C., Sec. 151, et seq.), herein called the Act. In its duly
filed answer, the Respondent, while admitting certain
allegations of the complaint, denied the commission of any
unfair labor practice.
Pursuant to notice, a trial was held before me on May 27,
1971, at Beaumont, Texas, where all parties were present,
represented, and afforded a full opportunity to be heard.
Counsel for the General Counsel presented his case-in-
chief with full opportunity to Respondent to cross-examine
witnesses. Upon the conclusion of General Counsel' s case-
in-chief, counsel for Respondent moved for the dismissal
of the complaint in its entirety on the ground that a
violation of the Act had not been established upon the
evidence adduced, for the specific reason that the collective
agreement between the parties introduced in evidence
provided the exclusive remedy for the alleged wrongful
conduct and that this remedy had not been availed of by
the Charging Union
Because I entertained serious doubt and uncertainty as
to the substance and adequacy of General Counsel's case
in the light of the motion before me and because of the
reasons advanced in support of it, and in defense of
Respondent's right in due process not to be required to
enter its defense when such doubt and uncertainty exists, I
adjourned the trial for an indefinite period to provide an
opportunity for study of the record.' I requested briefs of
the parties to assist me in the determination of the issues
raised by the Respondent's motion. Briefs have been filed
by the parties.
Upon consideration of the briefs submitted and the
entire record made in this case, in which I assume the
veracity of all witnesses appearing before me, I make the
following:
FINDINGS OF FACT AND CONCLUSIONS OF LAW
1.
THE BUSINESS OF THE RESPONDENT
Bethlehem Steel Corporation, Respondent herein, is a
Delaware corporation operating a shipyard in Beaumont,
Texas, designated as the Shipbuilding Department. This is
the
only facility of the Respondent involved in this
proceeding.
On numerous previous occasions, Respondent has
appeared as a party before the Board in proceedings in
which the Board has asserted its jurisdiction and has found
the Respondent to be an Employer within the meaning of
Act.2 Upon the Board's earlier findings and upon my
review of the record in this proceeding which discloses no
i Counsel for General Counsel argues in his brief to me that by
adjourning the hearing sine die upon the close of his case-in-chief after
reserving decision upon Respondent's motion to dismiss the complaint in its
entirety, I have acted "contrary to all established Board precent" and
"contrary to the very Act itself " My obligation, he argues, "even on
reserving on Respondent's motion, was to proceed with the hearing, and
failing to do so was fundamental error "
Sec
102 43 of the Board's Rules and Regulations empowers the Trial
Examiner in his discretion, to adjourn a hearing to a later date either by
announcement thereof at the hearing , or by other appropriate notice See
Resronaire Bedding Company, 164 NLRB 729 In announcing the adjourn-
ment of this case sine die,
i e
without a set date for resumption, I also
announced that in the event the motion was not granted and the hearing
changes of fact or circumstances concerning the nature
and extent of its business, and upon agreement of the
parties, I conclude and find Respondent to be an Employer
within the meaning of Section 2(2), (6), and (7) of the Act.
II. THE LABOR ORGANIZATIONS INVOLVED
It is admitted and I accordingly conclude and find that
Beaumont Metal Trades Council , AFL-CIO, the Charging
Union herein, and referred to hereafter as the Union, and
Local No. 753, United Brotherhood of Carpenters and
Joiners of America, AFL-CIO, referred to herein as the
Carpenters, are labor organizations within the meaning of
Section 2(5) of the Act.
III. THE ALLEGED UNFAIR LABOR PRACTICES
A.
The Contested Allegations of the Complaint
It is alleged that on or about December 21, 1970, and
thereafter, Respondent refused to bargain with the Union
as the recognized bargaining representative of its employ-
ees in a concededly appropriate bargaining unit "by
unilaterally, without notice to or consultation with the
Union, subcontracting out carpenter unit work to Sabine
Insulation
Company, a sheetmetal employer, to do
carpenter unit work" on a boat in Respondent's Beaumont
shipyard. As a consequence, it is alleged that certain
named employees in the bargaining unit suffered impair-
ment of job tenure and job security by the layoff of
carpenters.
In its answer, Respondent alleged that historically it had
subcontracted the sheet metal work of the kind, character,
and size referred to in the complaint to be performed by
subcontractors specially equipped, trained, and
with
proper supervision to perform such work. Respondent
further
alleged that it did not have the equipment
necessary to perform the work referred to in the complaint.
It further alleged that the carpenters employed in the
bargaining unit were neither trained nor qualified to
perform the work contracted. Finally, it alleged that those
laid off on or about December 21 were not laid off because
of the subcontracting of the work, but because there was
no carpenter work for them to perform at that time.
B.
Facts
On or about December 21, 1970, employee Bobby
Kyker, the carpenter steward on the job in department 72
of Respondent's facility, observed that sheet metal work
was being performed on the dredge, McFarland, by
employees of the Sabine Insulation Company. Believing
would resume, I would give the pFrties timely notice I have thereby
satisfied the letter of the Board's rule
In reserving my decision upon the motion to dismiss, it was implicit that
it had not yet been determined by me that a case had been proven against
the Respondent In such a posture, to require Respondent to then defend
himself by proceeding with the trial would violate the basic tenets of
jurisprudence and due process that no one is required to defend one's self
against a charge that is still unproven I accordingly reject counsel for
General Counsel's argument that my granting of an adjournment in such
circumstances was fundamental error
2 183 NLRB No 35, 147 NLRB 977; 127 NLRB 727, 111 NLRB 185,
108 NLRB 241
BETHLEHEM STEEL CORP.
this work to be that normally performed by employees of
Respondent in the bargaining unit, Kyker immediately
reported the situation to Donald Tolbert, business repre-
sentative of the Carpenters, a member of the Beaumont
Trade Council, the Charging Party herein, and a signatory
to the collective agreement with Respondent. Tolbert
immediately communicated with Harrison K. Jordon,
Respondent's representative, and protested the subcon-
tracting of the work. In reply, according to Tolbert, Jordon
stated that the contract "was silent on subcontracting
work," a fact which Tolbert conceded in subsequent
testimony and which an inspection of the document in
evidence confirms.
Tolbert then instructed the assistant business representa-
tive of the Carpenters, W. H Carr, to go to the job and
observe the work being performed.
Carr's inspection of the work on the McFarland being
performed by Sabine employees disclosed that it involved
the installation of sheet metal wall surface, in sheets 2 feet
by 4. These sheets were fastened by spot weld onto metal
studding and were held in place by the use of the
appropriate brackets, spacers, and metal channels, all of
which had been installed previously by Sabine employees.3
On this occasion and on a subsequent visit on September
29, Carr spoke to a number of Respondent's officials on
the job to better acquaint himself with the nature of the
work being performed by the Sabine employees. Among
these were Harry Ritter, Respondent's carpenter foreman,
and a Mr. Weaver, Carpenter quarterman, both of whom
informed Carr that the Respondent did not have the tool.,
to do the work.
Employee Kyker, the union steward, was questioned
extensively concerning the nature of the work being
performed by Sabine and the capability of the unit
employees to perform it. Much of the work, according to
Kyker, was similar to that which he had seen performed by
Respondent's carpenters in the past Such jobs, however,
would appear to have been infrequent and minimal. Thus,
in mentioning jobs he had worked on, he estimated the last
one to have been 2 or 3 years previous and, referring to
such jobs, indicated that they involved in one instance a 10
by 14 foot ceiling, and another, a single room on a ship
being renovated.
When asked about tools available on the job to do metal
work, Kyker mentioned such tools of the metal trade as
electric shears, a sheet metal brake, sabre saws, hack saws,
framing squares, and electric drills. Upon further question-
ing it appears that other necessary and more complicated
tools were not available. Kyker's stated ability to perform
the sheet metal work included the cutting of flanges, the
recessing of surface areas, and other intricate elements of
metal construction and repair. It does not appear from the
record that there were presently in Respondent's employ
any other except the carpenters who could or did perform
the
sheet
metal
work connected with Respondent's
operations and it is specifically to be noted that there were
no contractual arrangements between Respondent and the
Sheet
Metal
Workers, either directly or through the
contract with the Building Trades Council.
3 It is conceded that the insulation work involved on this job was
performed by carpenters in the bargaining unit and members of Carpenters
839
C.
The Application of the Contract
The most recent collective agreement between Respon-
dent and the Union contains the following provisions
significant to the issue at hand:
ARTICLE XVIII
RULES FOR ADJUSTMENT OF COMPLAINTS,
DISPUTES OR GRIEVANCES
Section 1. Should any differences arise between the
Company and the Union as to the meaning and
application of the provisions of this Agreement or as to
any question relating to the wages, hours of work and
other conditions of employment of any Employee,
there shall not be any walkout on account of such
differences, but an earnest effort shall be made to settle
them promptly and in accordance with the provisions
of this Agreement in the manner hereinafter set forth.
Section 2. A grievance is defined as any difference of
opinion, controversy or dispute, between the Company
and the Union, or between the Company and any
Employee with respect to the interpretation, applica-
tion or alleged violation of any of the provisions of this
Agreement.
(a) It is understood that, for the purpose of setting
grievances as rapidly and efficiently as possible, an
Employee shall discuss his grievance with his foreman
or his foreman's designee (not leaderman), who will
attempt to settle it to the mutual satisfaction of the
Employee and the Company.
(b) A Union steward may call to the attention of his
foreman any question of employment condition that
may arise in his department. After notification by the
steward to his foreman, discussion between the steward
and the foreman concerned shall be arranged as soon
as possible.
(c) The foregoing procedure, if followed in good
faith by both parties, should result in a fair and speedy
solution of most of the complaint arising out of the
day-to-day operations of the Yard. If, however, a
complaint has not been satisfactorily resolved, it may
be presented in writing and processed through the
following steps of the Grievance Procedure. Such
procedure may be initiated by either party (beginning
with Step No. 3 if a grievance arises between the
Company and the Union) and shall be applied and
relied upon by both parties as the sole and exclusive
means of seeking an adjustment of and settling any
grievances.
s
ARTICLE XIX
ARBITRATION
Section 1. A grievance not settled as set forth in
Section 3 of Article XVIII may be appealed to
arbitration if either the Union or the Company notifies
Local No 753
840
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
the other in writing of its intention to take the grievance
to arbitration within 30 calendar days of the date of the
meeting held in Step No. 3, and such written notice
shall set forth the nature of the grievance in appropriate
detail for identification purposes and of the name of its
member of the Arbitration Board hereinafter men-
tioned. If it shall not be so appealed, such grievance
shall be deemed to have been settled.
Section 3. The Arbitration Board shall be composed
of three members to be selected as follows: One
representative selected by the Union; one representa-
tive selected by the Company; and a third, who shall be
chairman, shall be selected from a panel of five
disinterested individuals, all of whom shall be impartial
persons qualified and willing to act as arbitrators,
submitted by the Federal Mediation and Conciliation
Service. From the list of names submitted by the
Federal
Mediation and Conciliation Service, the
Company and the Union shall each alternately strike
one name until four names have been eliminated and
the person whose name remains shall be selected to act
as the third arbitrator.
Union Representative Tolbert testified that he did not
take any steps, including recourse to arbitration, provided
by the agreement for the adjustment of complaints. And
Assistant Representative Carr testified that in his conversa-
tion with Respondent's representative, Jordon, the griev-
ance and arbitration procedures of the contract were called
to his (Carr's) attention, Jordon stating to him that he
would gladly accept a grievance from the Union and take it
through the grievance and arbitration procedure. There
has, in fact, been no request by the Union or its
representative for arbitration of the matter.4
Finally, by way of exploring the reaches of possible
settlement of the issue here, I inquired if recourse was ever
sought by the Union or any other labor organization, or by
the Respondent, to the provisions of Sections 8(b)(4)(D)
and 10(k) of the Act which establish mechanics for the
determination of disputes arising out of the assignment of
work to employees in one labor organization, trade, or
craft rather than those in another.5
No such proceedings were ever instituted nor are any
contemplated.
D.
Analysis and Conclusions
At the outset it must be noted that the context in which
the issue of refusal to bargain arises here is concededly one
of harmonious relationship between the parties, a total lack
of antiunion motivation for the Respondent's action, the
existence of a broad grievance-arbitration procedure, and
the
fact that Respondent has agreed to waive the
preliminaries of that procedure and continue to seek a final
solution under the procedures of the ' agreement.
In such circumstances as are present here, the require-
ment that the grievance-arbitration procedure be followed
in preference to the filing and processing of an unfair labor
practice charge before the Board is one that has found
particular attraction to the courts. Thus in considering the
advisability of recourse to arbitration the United States
Court of Appeals for the Eighth Circuit stated in American
Fire Apparatus Company v. N. L. R. B., 380 F.2d 1005, 1007:
The collective bargaining
agreement between the
Company and the union established a procedure for
handling grievances and provided that unresolved
grievances would be submitted to arbitration. While
this court has held that the grievances-arbitration route
is not exclusive and does not eliminate the Board's
jurisdiction of an unfair labor practice charge (citing
authorities), free collective bargaining would be en-
couraged if the parties to such a labor agreement would
make use of the arbitration machinery before resorting
to the Board, and if discretion were exercised in issuing
complaints where the parties had failed to use the
machinery they had established. See Raley's Inc. v.
N. L. R. B., 143 NLRB 256; Spielberg Manufacturing Co.,
112 NLRB 1080.
And the Court of Appeals for the Sixth Circuit, considering
the refusal-to-bargain aspects of withholding an employee
bonus, stated in Beacon Journal Publishing Co. v. N.L.R.B.,
401 F.2d 366, 368:
This record demonstrates a long-standing collective
bargaining relationship (where this subject had not
been insisted upon). There is no claim of discriminato-
ry purpose or antiunion animus. And the good-faith
reliance of the Beacon Journal upon the voluntary
character of the bonus is not disputed, however
erroneous it may have been as a matter of law. Further,
under the Board's proposed order the unions are free to
bargain for the unpaid portion of the 1965 bonus.
Under similar circumstances
NLRA enforcement
orders requiring reimbursement have been denied.
[Citing cases.]
We do not disagree with those courts which have held
that Broad remedial powers (including reimbursement
orders in somewhat similar circumstances) have been
4 In the course of addressing his motion to dismiss to me, counsel for the
Respondent stated that the Company "would have been happy to accept a
grievance and would have gone immediately to arbitration "
S Sec. 8(b)(4)(D) provides as follows
It shall be an unfair labor practice for a labor organization or its agents
to engage in, or induce or encourage any individual employee by any
person engaged in commerce or in an industry affecting commerce to
engage in, a strike or a refusal to the course of his employment to use,
manufacture, process, transport, or otherwise handle work or any
goods, articles, materials, or commodities or to perform any services, or
(u) to threaten, coerce, or restrain any person engaged in commerce or
in an industry affecting commerce where in any case the object thereof
is
(D) forcing or requiring any employer to assign particular work to
employees in a particular labor organization or in a particular trade,
craft, or class, rather than to employees in another labor organization
or in another trade, craft or class, unless such employer is failing to
conform to an order or certification of the Board determining the
bargaining representative for employees per performing such work
Sec. 10(k) provides as follows
Whenever it is charged that any person has engaged in an unfair labor
practice within the meaning of paragraph (4)(D) of Section 8(b), the
Board is empowered and directed to hear and determine the dispute
out of which such unfair labor practice shall have arisen, unless, within
10 days after notice that such charge has been filed , the parties to such
dispute submit to the Board satisfactory evidence that they have
adjusted, or agreed upon methods for the voluntary adjustment of, the
dispute
Upon compliance by the parties to the dispute with the
decision of the Board , or upon such voluntary adjustment of the
dispute, such charge shall be dismissed.
BETHLEHEM STEEL CORP.
841
vested by Congress in the special expertise of the
NLRB. [Citing cases.]
But these broad powers were originally given to the
Board to aid in effectuating a national legislative policy
of encouraging collective bargaining, rather than to
assist it in adjudicating relatively minor disputes
between parties with a settled and amicable collective
bargaining relationship.
And finally in a recent analysis of the issue in Office and
Professional
Employees International
Union,
Local 425,
AFL-CIO v. N.L.R.B., 419 F.2d 314, the Court of Appeals
for the District of Columbia Circuit, after considering
broadly the Board's relationship to the arbitration process,
and alluding to the Board's willingness to defer to
arbitration in certain circumstances stated
Where arbitration has not been completed, and
certainly where arbitration has not even been begun,
different considerations are referred to, at least in
Section 8(a)(5) cases as prompting the Board to defer to
arbitration. One is willingness to arbitrate. Another is
the existence of an unfair labor practice that "turns
primarily on an interpretation of specific contractual
provisions, unquestionably encompassed by the con-
tract's arbitration provisions, and coming to us in a
context that makes it reasonably probable that arbitra-
tion settlement of the contract dispute would also put
at rest the unfair labor practice controversy in a
manner sufficient to effectuate the policies of the Act."
(Citing Clover Leaf Div. of Adams Dairy Co., 147 NLRB
1410). The Board has dismissed complaints where the
contract clearly covers the dispute and there was
nothing blocking arbitration. (Citing Vickers Inc., 153
NLRB 561; Flinikote Company, 149 NLRB 1561; Bemis
Bros. Bag Co., 143 NLRB 1311; Montgomery Ward and
Co, 137 NLRB 4018.)
It is not suggested that the foregoing authorities require
that this Complaint be dismissed by the Board. Rather, the
holdings of the courts have been set forth in some detail to
illustrate that there exists considerable doubt and uncer-
tainty on the appellate level that deference to arbitration
might best serve the ends of improved collective bargaining
and administrative efficiency .6
The Board has, under appropriate circumstances, found
that it would not effectuate the policies of the Act to issue a
remedial order.
Thus in Montgomery Ward and Co., 137 NLRB 418, 423, in
dismissing an allegation of refusal to bargain it was stated
that
the parties had included in their collective bargaining
agreement a specific grievance procedure providing for
final
arbitration for all "grievances involving the
interpretation or application of the (contract's) provi-
sion." Furthermore, the Union kept insisting that the
dispute should be settled by the grievance procedure,
and the Respondent agreed. Yet, despite the collective
bargaining agreement devised by the parties themselves
6 See also N L R B v C & C Plywood Corp, 351 F 2d 224, 227-228
(CA 9)
' See also Sinclair Refining Company, 145 NLRB 732
s Fibreboard Paper Products Company, 138 NLRB 550, enforced 322 F 2d
411, affirmed
379
U.S. 203, in which the Supreme Court held that
arrangements which involve "the replacement of employees in the existing
for settling such a grievance dispute, the Union chose
instead to file the instant charges-thus asking the
Board, in effect, to intervene and resolve the dispute. In
these circumstances, the Board would be frustrating the
Act's
policy
of
promoting industrial stablization
through collective bargaining if we were to intervene in
this dispute, instead of requiring the Union in this case
to
give
"full
play" to the established grievance
procedure.
More recently in Flintkote Company, 149 NLRB 1561, the
Board had occasion to consider the unfair labor practice
aspects of a dispute already proceeding through the steps
of the contractual grievance procedure practice. There,
noting that the Union had filed its charge with the Board
rather than proceeding to arbitration as provided by the
contracts, and noting the Company's willingness to waive
the contractual time limitations to permit the submission of
the issue to arbitration, the Board stated as follows (at
1562):
Under all the circumstances of this case, including the
contractual and grievance and arbitration machinery,
the position of the parties both before and during the
grievance
procedure that a question of contract
interpretation
was involved, and the Respondent's
willingness to proceed to arbitration, we deem it
unnecessary to determine whether there has been a
violation of Section 8(a)(5) and (1) of the Act. The
special circumstances adverted to above impel us to the
conclusion that it would not effectuate the policies of
the
Act to issue a remedial order in this case.?
It is the substance of Respondent's motion to dismiss
that this case is more properly an interpretation of the
terms of an outstanding contract under which a dispute has
arisen to determine whether or not carpenters were
properly entitled, and indeed equipped, to perform the
sheet metal work subcontracted to the Sabine Insulation
Company. The provisions of the contract set forth herein
(supra), clearly outline the agreed-upon method of settling
such disputes. It is readily apparent from statements in the
record and from my observation of the witnesses and the
parties at the trial that a harmonious relationship exists
among them, that the Respondent harbors no animus
towards the Union or any of its members or officials, and
that at least one of the parties, Respondent, is willing to
proceed to the agreed-upon method of solution of disputes.
Here the nature of the dispute presented for analysis is
the character of the work performed in one isolated
instance of subcontracting, where Respondent claims its
facilities were inadequate and where the Union claims that
the work had been performed before. Nothing in the
contract itself precluded the Respondent from subcontract-
ing its work, hence we would reach the consideration of
such act (as distinct from a "practice") in the posture of an
unfair labor practice under the Fibreboard doctrine 8 only
after we have explored what the contract did or did not
provide, and had examined what Respondent's working
unit with those of an independent contractor to do the same work under
similar conditions of employment" was a mandatory subject of collective
bargaining under Sec. 8(a)(5) and (d) of the Act. The instant contract had
no such provision and there is nothing in the record to suggest that at any
time during the course of bargaining that such a provision was either
(Continued)
842
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
capabilities were in its day-to-day application of the terms
of the contract.
Such an interpretation of the contract, it would seem, is
the first order of business. The parties have specifically
agreed to dispose of differences such as the instant one
arising under the contract, stating in the contract that "an
earnest effort shall be made to settle [differences] promptly
and in accordance with the provisions of the Agreement in
the manner hereinafter set forth." I do believe, therefore,
that such a provision for the determination of whether
Respondent's carpenters could or could not perform the
sheet metal work contracted out to the Sabine Insulation
Company should be summarily and purposefully ignored.
On the contrary, it would, appear to be a determination
properly to be submitted to arbitration under the criteria
most recently suggested by the Board in Tellipsen Petro-
Chem Constructors,
190 NLRB No. 76, wherein it was
stated, in language equally applicable to the circumstances
presented here:
In view of the special circumstances of this case, as
disclosed
by the record, we agree with the Trial
Examiner that the Respondent did not violate Section
8(a)(5) by unilaterally subcontracting its work on the
Shell Oil project. In so finding we rely on the following
unique factors involved herein; the Respondent's
actions were not a willful disregard of the Act; the issue
involved has never before arisen in the approximately
20 years of bargaining history between the parties;
there is no indication that this issue will arise or be
common practice in the future; the bargaining history
has been not to give the Union advanced notice of
requested or rejected It is not to be suggested , however, that the existence
of such a provision is a necessary element of the Fibreboard principle
9 See also Jos Schhtz Brewing Company, 175 NLRB 141
layoffs when a subcontract is terminated; employees
who are laid off obtain employment by seeking work
on their own with another contractor or through the
Union's hiring hall and are not considered part of
Respondent's permanent labor force; the impact upon
the employees involved appears to have been minimal;
and there is no showing that the Union has ever made a
request to bargain. Against this background we are
persuaded that the policies of the Act would not be
effectuated by finding a violation of Section 8(a)(5) on
the record before us.9
For all of the foregoing, I conclude and find that General
Counsel has failed to establish that upon the facts and
record presented the policies of the Act, as delineated by
the foregoing holdings of the Board and the courts, and the
cases cited therein, would not be effectuated by the finding
of a violation of Section 8(a)(5) of the Act.
RECOMMENDED ORDER
It is hereby ordered, pursuant to Section 102.25 and 102.
(h)10 of the Board's Rules and Regulations, Series 8, as
amended, that Respondent's motion to dismiss the com-
plaint be granted and that the complaint be accordingly
dismissed in its entirety.
IT IS FURTHER ORDERED that unless, pursuant to Section
102.27 of the aforesaid Rules and Regulations, counsel for
the
General
Counsel files
with the National Labor
Relations Board a request for a review of the action taken
herein within 10 days from the date of this Order the case
shall be closed.
10 United Steelworkers of America, AFL-CIO, and Local Union No 2140
(United States Pipe and Foundry Co),
129 NLRB 357, enfd 298 F 2d 873
(C A 5), Cherry Rivet Co, 97 NLRB 1303, fn
I