209 NLRB 618
Leatherwood Drilling Co.
618
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Leatherwood
Drilling
Company
and Local 826,
International
Union of Operating Engineers,
AFL-CIO. Case 16-CA-5189
March 13, 1974
DECISION AND ORDER
BY CHAIRMAN MILLER AND
MEMBERS
FANNING AND PENELLO
On November 20, 1973, Administrative Law Judge
Joel A. Harmatz issued the attached Decision in this
proceeding. Thereafter, Respondent filed exceptions
and a supporting brief.
Pursuant to the provisions of Section 3(b) of the
National Labor Relations Act, as amended, the
National Labor Relations Board has delegated its
authority in this proceeding to a three-member panel.
The Board has considered the record and the
attached Decision in light of the exceptions and brief
and has decided to affirm the rulings, findings,' and
conclusions of the Administrative Law Judge and to
adopt his recommended Order.
ORDER
Pursuant to Section 10(c) of the National Labor
Relations Act, as amended, the National Labor
Relations Board adopts as its Order the recommend-
ed Order of the Administrative Law Judge and
hereby orders that Respondent, Leatherwood Drill-
ing Company, Odessa, Texas, its officers, agents,
successors, and assigns, shall take the action set forth
in the said recommended Order.
I Although not affecting the ultimate conclusions of the Administrative
Law Judge, we find merit in Respondent's claim that the Administrative
Law Judge's Decision incorrectly referred to Allstate Construction, inc , as
a drilling contractor The record supports Respondent's contention that
Allstate is a dirt contractor Likewise, we agree with Respondent that four
of the negotiating sessions which Harman held with the U nion on behalf of
other contractors during the hiatus period here in question were held with
Howell, the Union's business agent, rather than with Fortenberrv, as the
Administrative Law Judge found. These apparently inadvertent errors,
however, do not affect any material findings of the Administrative law
Judge
DECISION
STA I'EMENT OF THE CASE
JOEL A. HARMATZ, Administrative Law Judge: This case
was heard in Odessa. Texas, on September 25 and 26, 1973,
upon a charge filed on June 11. 1973, and a complaint
issued
on July 24, 1973, alleging that Respondent,
Leatherwood Drilling Company, violated Section 8(a)(5)
I Pursuant to motion to correct transcript filed by the General Counsel,
and consistent with my recollection, and the sense of the matters ret forth
therein, I hereby grant said notion, and the transcript is hereby amended
and (1) of the Act by, on May 9,
1973, withdrawing
recognition from and thereafter refusing to meet with the
Union as the certified collective-bargaining representative
of unit employees . Thereafter briefs were filed by the
Respondent and the General Counsel.
Upon the entire record,' including my observation of the
witnesses while testifying, and careful consideration of the
posthearing briefs, I make the following:
FINDINGS OF FACT
1. THE BUSINESS OF THE RESPONDENT
Respondent, a Texas corporation, maintains an office
and place of business in Kermit, Texas, where it is engaged
in contract oil well drilling. During the calendar year
preceding the issuance of the complaint, a representative
period, Respondent performed services valued in excess of
$50,000 outside the State of Texas.
I find that Respondent, at all times material, is and has
been an employer engaged in commerce within the
meaning of Section 2(6) and (7) of the Act .2
II. THE LABOR ORGANIZATION INVOLVED
The complaint alleges, the answer admits , and I find that
Local 826, International Union of Operating Engineers,
AFL-CIO, is and has been, at all times material , a labor
organization within the meaning of Section 2(5) of the Act.
III. THE ALLEGED UNFAIR LABOR PRACTICES
A.
The Issues
It is undisputed that on May 9. 1973, Respondent
withdrew recognition and refused to engage in further
bargaining with the Charging Union, which had been
certified on March 18, 1969, as exclusive representative of
employees in the appropriate unit. The General Counsel
argues that by said action, Respondent violated Section
8(a)(5) and (1) of the Act. The Respondent denies any
illegality attendant in its withdrawal of recognition,
affirmatively claiming that said action was supported by
objective considerations furnishing a reasonable basis for a
good-faith belief that the Union no longer enjoyed
majority status. The General Counsel attempts to negate
said affirmative defense on the following grounds: (1) the
facts
on
which
Respondent relies are insufficient to
establish a reasonable basis for believing that the Union
lost its majority, and (2) even if they were, the claim of
doubt was not raised in good faith but was a mere
extension of Respondent's initial unwillingness to recognize
the Union at the time of certification and its overall bad
faith approach to its statutory obligations.
2 Leatherwood Drilling Compan_i, 179 NLRB 549. 551, Siemons Mailing
Service, 122 NLRB 81.
209 NLRB No. 92
LEATHERWOOD DRILLING CO.
B.
Concluding Findings
1.
Background
It is conceded that on March 18, 1969, the Charging
Union was certified as the exclusive bargaming representa-
tive for employees in the appropriate bargaining unit,
consisting of all employees working out of the Kermit,
Texas, yard, including roughnecks (derrickmen and floor
hands), truckdrivers, welders, mechanics and helpers, but
excluding office clerical employees, professional employ-
ees, guards, watchmen, drillers and supervisors as defined
in the Act.
That certification resulted from an election conducted
pursuant to the eligibility formula first announced by the
Board in Hondo Drilling Company, 164 NLRB 416. The
Hondo formula was based generally upon the unique
pattern of employment among the 50 to 60 oil well drilling
concerns operatirg in the Permian Basin of Texas and New
Mexico. Furthermore, it is a well-known fact that the
various
contractors situated similarly to
Respondent
challenged the validity of the so-called Hondo rule and
contested certifications based thereon to the Board and
then to the courts.
Respondent, following the certification and union
requests for bargaining, elected also to challenge the
certification on this basis, and hence refused to bargain.
On November 10, 1969, the Board issued its Decision and
Order,3 upholding the validity of the certification, rejecting
Respondent's contentions relative to the Hondo eligibility
formula, and directing Respondent to bargain with the
Union. Initially Respondent refused to comply with this
order, electing to litigate the issue in the Fifth Circuit
Court of Appeals. However, C. B. Leatherwood, former
president of the Company, and the individual responsible
for Respondent's labor relations policy, died in September
1970. With his death, the Respondent decided to recede
from its legal position. Thus, in November 1970, the
Company notified the Board of its intention to abide by
the Board's Order and to recognize the Union.
The first bargaining session, however, was not held until
March 8, 1972. A second session was held on April 18,
1972, and the third and final meeting was on June 22, 1972.
No agreement was reached. Nonetheless, following the
June 22 meeting the Union did not contact the Respondent
for purposes of resuming negotiations until April 19, 1973.
By letter of that date addressed to Brooks Hannan
(Respondent's attorney and a principal company spokes-
man during the earlier negotiations) over the signature of J.
D. Fortenberry, senior business representative of the
Union, a request for resumption of negotiations was made.
On May 9, 1973, Respondent, through Harman, respond-
ed, advising that it "declines to negotiate further for the
reason it has a good faith doubt Local 826 represents a
3 179 NLRB 549
d Laystrom Manufacturing Co,
151 NLRB 1482, 1483--84, Little Rock
Downtowner, inc,
168 NLRB 107, enfd. 414 F 2d 1084 (CA 8, 1969).
See United States Gypsum Company, 157 NLRB 652, 656. The standard
though quoted from a representation case is equally applicable as the
definition of Respondent's proof obligation on the issues framed here.
6 The General Counsel in this latter regard relies upon Coca Cola
Bottling Works, Inc., 186 NLRB 1050, 1051, and United Electric Company,
199 NLRB 603
619
majority of the employees in the bargaining unit." In this
latter regard, testimony adduced on behalf of Respondent
indicates that the doubt was based upon two factors: (1) a
high rate of turnover since the 1969 election, and (2) the
Union's failure to seek bargaining between June 22, 1972,
and April 19, 1973, a period of 10 months, which according
to Respondent suggested an abandonment of the employ-
ees by the Union.
2,
Analysis
As a matter of settled Board authority, an incumbent
bargaining representative enjoys a presumption of continu-
ing majority .4 After expiration of the certification year and
during periods in which a collective-bargaining agreement
is not in effect that presumption may be rebutted so as to
release an employer from any further obligation to bargain,
but the employer, in doing so, "must demonstrate by
objective considerations that it has some reasonable
grounds for believing that the union has lost its majority
status ...."5 The basic question involved here is whether
the factors relied on by the Respondent meet that
standard, and thereby support a defense to the instant
complaint. However, the General Counsel, in addition to
arguing that they do not, in the alternative, contends that
Respondent has historically acted in derogation of the
principles of collective bargaining, and hence is not free to
assert a good-faith doubt .6
a.
The General Counsel's bad faith argument
In cases of this type, the Board as a matter of settled
policy precludes an employer from raising a defense based
upon doubt of majority, "when the employer's unremedied
unfair labor practices have a direct bearing and effect upon
the question of majority status...." 7 Despite the fact
that no unfair labor practice charge had been filed against
Respondent in the period between November 1970, when it
agreed to bargain with the Union, and the present charge
filed on June 11, 1973, which is predicated on the May 9,
1973, withdrawal of recognition, the General Counsel
adduced evidence as to the entire course of conduct of the
Respondent dating all the way back to the certification in
1969 as a bar to Respondent's affirmative defense based
upon doubt of majority. In doing so, the General Counsel,
through documentary evidence and 43(b) witnesses sought
to establish that Respondent's approach to bargaining was
in bad faith and designed "to avoid bargaining with the
Union." The complaint contains no allegations that could
reasonably be construed as placing such matters in issue.
However, I permitted the General Counsel wide latitude in
eliciting such evidence. I shall assume for purposes of this
Decision, without deciding,8 that any evidence reflecting
on state of mind bad faith by Respondent that might relate
r Coca Cola Bottling Works, Inc., supra, 1053.
F Although background evidence, relative to state of mind , is plainly
relevant, I wonder whether the license, posse%sed by the General Counsel,
and perhaps charging parties as well, to go overboard in litigating such
matters stands, or should stand, unregulated . To defend against an assertion
of surface bargaining requires extensive preparation and study by counsel
Where, as here, such matters are not alleged, and not the subject of prior
charges or unfair labor practice findings, at a minimum it would seem that
limitations should exist to assure full notification to the party adversely
(Continued)
620
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
to employee defections was probative and relevant to the
issue of whether Respondent was debarred from asserting
a defense, based upon a doubt of majority.
I am convinced, on this record that the evidence adduced
by the General Counsel is not sufficient to preclude the
Respondent from raising such a defense. It is true that
following the Union's certification, the Respondent initial-
ly refused to bargain, and did so in defiance of a Board
Order. However, its action in this regard was predicated
upon a challenge to the propriety of the Hondo eligibility
formula, the validity of which was widely questioned by
Respondent's competitors, many of whom, to the extent
that they were affected thereby, similarly resisted that
eligibility determination. I am unwilling to find that the
assertion of this legal defense was frivolous, or that the
delay in actual bargaining resulting therefrom was indica-
tiye of bad faith .9
I am also not persuaded that the record establishes that
Respondent's conduct at the bargaining table disclosed a
bad-faith state of
mind. Respondent accepted union
proposals, explained its position in refusing to agree, made
counterproposals,10 and duly provided all information
requested by the Union.l i Respondent's conduct up to
April 1973 did not in any sense suggest a close minded
approach or a refusal to accept an agreement it could live
with. Concededly, the General Counsel is hard pressed
where, as here, he seeks to prove surface bargaining
through negotiations limited to three meetings. But, as is
apparent from the record, the abbreviated scope of the
bargaining prior to the spring of 1973 cannot in fairness be
attributed to Respondent.12 There is no indication that it
refused to meet, on request of the Union, at any time prior
to the withdrawal of recognition.
It is true that, during presentation of the defense, the
General Counsel, on cross-examination of Paul Leather-
wood, elicited testimony that Respondent in February
1973 had granted a general across-the-board increase
without notification to the Union. The General Counsel
made no effort to amend his complaint in this regard and,
in the circumstances, I do not find that this single incident
precludes Respondent from asserting a good-faith doubt.
In so finding, I note that the Union, during negotiations,
had demanded an immediate wage increase outside the
framework of a contract. Howell, the Union's business
manager, testified, with support from Leatherwood, that
affected by such litigation Such a requirement would not only be consistent
with ordinary conceptions of fair play, but could avoid the granting of time
and resource consuming adjournments I am also curious as to whether with
respect to the background matters involved here , a rule of reason could not
be invoked as to just how far back and how many "old bones" the General
Counsel is free to exhume for inspection in support of the Charging Party's
present claim
9 The Respondent's failure to provide information requested by the
Union during this period , was no more indicative of bad faith than its
refusal to honor the certification which it felt invalid
10 i do not believe that Respondent's failure to present its contract
proposal until the second bargaining session on April 18, 1972, was
unreasonable Although the Union submitted its proposal well in advance
of the commencement of negotiations , no bargaining session was held until
March 8, 1972, and it strikes me as unreasonable to read anything improper
into the Company's submission of a contract proposal at the very next
session.
11 It is true that on January 5, 1971, the Union requested information,
which Respondent ultimately provided on May 31 , 1971
However, this
wage rates were not a significant issue to the parties since
both the Union, due to the number of unorganized
contractors, and Respondent, due to the scarcity of
roughnecks, had to remain competitive in this regard.
Howell further testified that it is normal practice for
annual wage increases to be granted by drilling contractors
in January or February, and that when this occurs, the
Union, on notification, has "accepted that wage increase
without tying it to the total contract." Although Respon-
dent may have engaged in a technical refusal to bargain by
failing
to
consult with the Union, the surrounding
circumstances preclude a conclusion that its failure to do
so contributed to employee defection from the Union, or
that this matter constitutes convincing proof that Respon-
dent at all times intended to avoid bargaining with the
Union.
Although I find General Counsel's arguments based on
the alleged bad faith of Respondent totally unpersuasive,
this,
as will be seen
infra,
is not fatal to his case.
b.
The asserted good faith doubt
I find Respondent's affirmative defense to be unsubstan-
tiated on this record.i3
It
is true that the Union made no request for a
resumption of negotiations between June 1972 and April
1973. It is also true that in certain circumstances a
persuasive argument might be made that substantial delays
in requesting a resumption of negotiations may carry a
strong suggestion that a union has abandoned employees
in the bargaining unit, thereby enforcing an employer's
belief that a union had lost its representative status.
However, I cannot find, on this record, that either Paul
Leatherwood, or his attorney, Brooks Harman, could have
made any such assumption in the instant case.
It is a well-known fact that the effort to organize the
employees among the various drilling contractors in the
Permian Basin involved a long drawn out, time-consuming
effort, involving extensive litigation. Organization, where
successful, was attained on a single-employer basis. Upon
acceptance as the majority representative, the Union,
following unsuccessful attempts to establish a multiem-
ployer unit, has sought to negotiate contracts on a single-
employer basis. Brooks Harman, who impressed me as a
man highly familiar with the history of organization by this
Union in the Permian Basin, and the difficulties faced by
delay was adequately explained on the record , since it was clear that in
January of that year the Union agreed to a suspension of negotiations
because the Company had only one employee on the payroll Thereafter,
bargaining did begin and on May 11, 1971, pursuant to its intention to
resume negotiations, the Union wrote Respondent requesting the bargain-
ing data I see nothing untoward in Harman 's failure to compile the data on
an earlier date.
12 The General Counsel argues that bad faith is evidenced by
"Respondent's lack of efforts to expedite bargaining." Under the law,
Respondent had no obligation to initiate bargaining. N LR B v Columbian
Enameling & Stamping Co, Inc., 306 U S 292. This is particularly so, where,
as here, it was the practice of the parties to meet pursuant to union requests
for such meetings.
13 The General Counsel's contention that the "objective facts" upon
which Respondent claims a doubt of majority were not available to
Respondent until after recognition was withdrawn is not supported by a
consideration of the record as a whole Cf. NLR.B. v GulJmont Hotel
Company, 362 F.2d 588 (C.A 5, 1966).
LEATHERWOOD DRILLING CO.
the Union in that connection, represented several contrac-
tors during such negotiations, in addition to Leatherwood.
In his brief to me, he concedes knowledge of the difficulties
encountered by the Union in their efforts to organize
employees, and to secure and administer contracts cover-
ing employees in this area.i4 The Union simply had too
little manpower to deal immediately with complexities
presented by the diverse policies and attitudes of the
companies
with
whom bargaining would take place,
operational variations among these companies, and geo-
graphical dispersal of the various employers.
From the foregoing, and other facts, I find that Harman,
and Leatherwood, as well, had direct knowledge as to the
unlikelihood that the Union would schedule negotiating
sessions, without hiatus, until final agreement had been
reached. That such delays were known to be inevitable is
evident from Respondent's bargaining history. For, while
the Employer took steps to comply with the Board's order
to bargain and posted notices to that effect in either
November or December 1970, and despite the fact that the
certification year would commence running at that time,
no negotiating session was held until March 8, 1972, well
after the Union's protection pursuant to the certification
had lapsed. This delay was with assent of the Union, and
placed Harman and Leatherwood on notice that from the
Union's point of view, delays would be a part of the
negotiation process.
I fail to see how Respondent could reasonably believe
that subsequent delays reflected an intention on the part of
the Union to abandon the Respondent's employees. This is
particularly so when one considers the fact that in the
period June 1972 through April 1973 Harman was actively
engaged in negotiations with the Union on behalf of other
drilling contractors, including Allstate Construction, Inc.,
Chaparral
Dulling Co., Hondo Drilling Co.,
McVay
Drilling Co., Rod Ric Corporation, A. W. Thompson, Inc.,
and Tn-Service
Drilling
Co.
On some 23 occasions
between June 1972 and April 1973, Harman and Forten-
berry, in addition to their other responsibilities, met in
connection with these negotiations. From the evidence
relative to these negotiations it is apparent that, as to most
of the contractors, there were significant time gaps between
bargaining
sessions. There is no suggestion that in
Fortenberry's communications with Harman during this
period he in any sense created the impression that the
Union lacked an interest in attaining a contract with
Respondent.
On the other hand, Harman knew that
Fortenberry was responsible for representation of the
Union in further dealings with Respondent, and that
during this period Fortenberry was burdened by other
matters."
Aside from Respondent's knowledge that delays would
be a characteristic of the negotiations, the unreasonable-
ness of its interpretation of the Union's inaction is
14 According to Paul Leatherwood's testimony all his positions taken
with respect to the Union were formalized , after consultation with Harman.
It is reasonable to infer that Harman, as a co-principle in Respondent's
dealings with the Union, would have discussed the "pros" and "cons" of
any basis for doubt held by Paul Leatherwood, and for this reason I find
that the latter is properly charged with knowledge held by Harman.
15 1 credit Fortenbeny's testimony that he informed Harman generally
of the nature of his workload and the scheduling problems they created
621
enforced by the absence of any sensible explanation as to
why Respondent would assume that the Union would
single out Leatherwood for abandonment, contemporane-
ous with its efforts to secure bargaining agreements with
Leatherwood's competitors. The Union had long been
involved in organization among the crews in the Permian
Basin . Securing contracts with all contractors in the Basin
was obviously its ultimate objective. It defies commonsense
to assume that this was not understood by Respondent.
Furthermore, Respondent cites no facts, apart from the
delay in securing negotiations, which would suggest that
the Union's attitude towards it would differ from that of
the other organized contractors. Respondent knew, or
should have known, that the Union's interest in obtaining
agreements covering Respondent 's operations, was no less
than its objectives with respect to Respondent's organized
competitors. In this regard, it should be noted that the
turnover facts asserted by Respondent as evidencing a
doubt of majority, are in all material respects representa-
tive of the experience of all drill companies in this area.
They would not so drastically differ with the experience of
contractors with whom the Union was actively negotiating
during 1972 through 1973, as to warrant a belief by
Respondent that the Union, being impressed by the
turnover history among Respondent's employees, elected
to go away. For the above reasons, I find that Respondent
did not, and could not, have held a reasonable belief that
the absence of communication from the Union between
June 1972 and April 1973, either indicated an intention on
the part of the Union to abandon the unit, or otherwise
contributed to any belief that the Union lost its majority.16
As evidence, more directly bearing on a possible loss of
majority, Respondent cites facts revealing a high degree of
turnover since the election in 1969. Summarized, these
facts show that (1) of the 77 names on the election
eligibility list, only 3 employees remained in Respondent's
employ as of the hearing date herein, (2) of the 21
employees on a payroll list furnished to the Union on May
20, 1971, only 4 employees listed thereon were eligible to
vote in the election, (3) in the 4 years that have passed
since the election, the Company employed a total of 1,761
roughnecks to fill 36 jobs, and (4) in the first 5 months of
1973, the Respondent experienced a turnover rate of nearly
900 percent.
There is no evidence in this case of employee defections
and all of Respondent's witnesses conceded that they were
unaware of any employee dissatisfaction with the Union.
Furthermore, Respondent, in his brief, concedes that
Board precedent does not accept turnover alone as the type
of objective consideration that would legitimately support
a withdrawal of recognition. Under existing Board authori-
ty, in turnover situations, "new employees will be pre-
during the period between the summer of 1972 and spring of 1973 This
testimony was not subject to direct contradiction , and it is entirely plausible
that such explanations were afforded by Fortenberry in view of difficulties
that the parties had in scheduling negotiating meetings.
16 Cf. Southern Wipers, Inc, 192 NLRB 816, where inactivity of a union
was a factor relied on by the Board in sustaining a good-faith doubt of
majority
622
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
sumed to support a union in the same ratio as those whom
they have replaced." 17 Nonetheless, Respondent argues
that the turnover situation in the Permian Basin is unique
and principles followed in other industries should not be
applied to the drilling contractors involved there. A variety
of arguments are advanced to support the view that
turnover should be honored in this industry as a good-faith
defense. Most, however, relate to the high velocity of
turnover. In my opinion this fails to persuade that the
presumption that replacements will support a union to the
same extent as their predecessors is a fallacy in this
industry. If it is fair to assume that replacements will
support a union where the level of turnover is 50 percent,
this assumption is no less valid where the turnover
amounts to 900 percent. The fact that nine employees
might in a given time period fill a single job previously held
by a union supporter, does not warrant an assumption that
the ninth replacement will support the union to any lesser
degree than the first.18
But, in any event, to recognize an exception, based on
turnover, to the good-faith doubt rule would depart
materially from the policy considerations underlying the
Hondo formula. It should be apparent to any reader of
Hondo and other cases involving the drilling contractors in
the
Permian
Basin, that the Board, appreciating the
turnover conditions, that existed there, committed itself to
the
desirability
of fashioning
means
to assure that
employees of various contractors operating in this two-
state area, despite the transient nature of their employ-
ment, could assert their Section 7 statutory rights "to self-
organization, to form, join, or assist labor organizations,
[and] to bargain collectively through representatives of
their own choosing...." I have heretofore stated that it is
fair to assume that the turnover experienced by Respon-
dent is generally representative of that experienced by its
competitors in the Permian Basin. Hence, to accept the
turnover facts adduced here as substantiating a good-faith
doubt of malonty would provide all contractors in the
Basin a like defense. Stable collective bargaining could
hardly proceed to a meaningful state under such condi-
tions,
for, the 'drill contractors, on expiration of each
collective-bargaining agreement could thereby require the
Union to reestablish its malonty as a precondition for
negotiation of a successor agreement. See, e.g., Emerson
Manufacturing Company, Inc., 200 NLRB No. 33 (JD).
Although ultimately the Board might sustain Respon-
dent's contention, or even repudiate Hondo, as matters now
stand, it is my opinion that to regard turnover as a
justification for the refusal to bargain would reduce the
elections conducted by the Board in the Permian Basin to a
futile exercise and render the status of certification of
representatives resulting therefrom to little more than a
17 Laysirom Manufacturing Co, supra,
1484, and cases cited at fn 7;
Printers
Service,
Inc,
175 NLRB 809, 812, NLRB v. Little Rock
Downtowner, 414 F 2d 1084, 1091 (C A 8, 1969)
18 In addition to the degree of turnover, I am not persuaded by
Respondent's arguments based on observations that many of its crewmem-
bers must have been employed by nonunion contractors , and that union
representatives would have difficulty in maintaining regular contacts with
employees These factors are simply too remote to throw any light on the
organizational preferences of crewmembers hired from time to time by
Respondent These arguments were not asserted as the basis of Respon-
dent's doubt when recognition was withdrawn, and hence , though arguably
focal point for game playing. In sum, I envision the
exception to Board policy sought by Respondent, as, in
practical consequence, eventually undermining both the
policy considerations which resulted in the Hondo formula
and the exercise of self-organizational rights by employees
engaged in the drilling industry in the Permian Basin.
Accordingly, I find, pursuant to established Board princi-
ple,19 that turnover did not furnish a good-faith doubt that
the Union continued to represent a majority of Respon-
dent's employees, and I find that Respondent, by with-
drawing recognition from the Union on May 9, 1973,
violated Section 8(a)(5) and (1) of the Act.
IV. THE REMEDY
Having found that Respondent has engaged in certain
unfair labor practices within the meaning of Section 8(a)(5)
and (1) of the Act, I shall recommend that it cease and
desist therefrom and take certain affirmative action
designed to effectuate the policies of the Act.
Considering the pattern of employment experienced by
Respondent in the conduct of its operations, special
provision is necessary to assure adequate publication of the
provisions of the order herein. Therefore, in accordance
with the earlier Board decision, involving Respondent,
reported at 179 NLRB 549, 551, I shall recommend that in
addition to requiring that copies of the notice be posted at
the offices and yards of the Respondent in Kermit, Texas,
it will be further provided that copies be posted at crew
headquarters on site at all rig operations, and that copies
be provided the Union for posting, if the Union is willing,
at meeting places in the Permian Basin.
CONCLUSIONS OF LAW
1.
Leatherwood
Drilling Company is an employer
engaged in commerce within the meaning of Section 2(6)
and (7) of the Act.
2.
Local 826, International Union of Operating Engi-
neers,
AFL-CIO, is a labor organization within the
meaning of Section 2(5) of the Act.
3.
Employees working out of the Kermit, Texas, yard,
including roughnecks (derrickmen and floor hands),
truckdrivers, welders, mechanics and helpers, but exclud-
ing
office clencal employees, professional employees,
guards, watchmen, drillers and supervisors as defined in
the Act, constitute a unit appropriate for the purpose of
collective bargaining within the meaning of Section 9(b) of
the Act.
4.
At all times since March 18, 1969, the Union has
been and is now the exclusive bargaining representative of
the employees in the aforesaid appropriate unit for the
relevant to the question of whether the Board should alter its view with
respect to turnover in this industry, they are otherwise in the nature of
afterthought and hence cannot be considered as the basis for Respondent's
doubt of majority See N L R.B. v. Gulfmont Hotel Co, supra, fn. 13.
ie It is true that in Southern Wipers Inc,
192 NLRB 816, the Board
accepted "heavy turnover" as one of several factors supporting a good-faith
doubt of majority. That case does not reverse prior precedent to the effect
that turnover alone will not justify a withdrawal of recognition, and, though
not cited by Respondent, I note my view that said decision is inapposite. See
also Viking Lithographers, Inc, 184 NLRB 139.
LEATHERWOOD DRILLING CO.
purpose of collective- bargaining within the meaning of
Section 9(a) of the Act.
5.
By withdrawing recognition on May 9, 1973, and
refusing thereafter to meet with the Union, Respondent
has engaged in and is engaging in unfair labor practices
within the meaning of Section 8(a)(5) and (1) of the Act.
6.
By the foregoing conduct, Respondent has interfered
with, restrained, and coerced employees in the exercise of
rights guaranteed by Section 7 of the Act, and has thereby
engaged in and is engaging in unfair labor practices within
the meaning of Section 8(a)(1) of the Act.
7.
The aforesaid unfair labor practices are unfair labor
practices affecting commerce within the meaning of
Section 2(6) and (7) of the Act.
Upon the foregoing findings of fact, conclusions of law,
and the entire record in this case, and pursuant to Section
10(c) of the Act, I hereby recommend the following:
ORDER L0
Leatherwood Drilling Company, its officers,
agents,
successors, and assigns, shall:
1.
Cease and desist from:
(a) Refusing to bargain collectively with Local 826,
International Union of Operating Engineers, AFL-CIO, as
the exclusive collective-bargaining representative of the
employees in the following appropriate bargaining unit:
All employees working out of the Kermit, Texas, yard,
including roughnecks (demckmen and floor hands),
truckdrivers,
welders,
mechanics and helpers, but
excluding office clerical employees, professional em-
ployees, guards, watchmen, drillers, and supervisors as
defined in the Act.
(b) Withdrawing recognition from and refusing to meet
with the Union as exclusive collective-bargaming repre-
sentative of employees in the appropriate unit.
2.
Take the following affirmative action which is
necessary to effectuate the policies of the Act:
(a) Upon request, bargain collectively with Local 826,
International Union of Operating Engineers, AFL-CIO, as
the exclusive representative of the employees in the
appropriate unit with respect to rates of pay, wages, hours
of employment, and other terms and conditions of
employment and embody in a signed agreement any
understanding reached.
(b) Post at its offices and yards in Kermit, Texas, copies
of the attached notice marked "Appendix." 21 Copies of
said notice, on forms to be furnished by the Regional
Director for Region 16, shall, after being duly signed by an
authorized representative of the Respondent, be posted by
the Respondent immediately upon receipt thereof and be
maintained by it for a period of 60 consecutive days
thereafter in conspicuous places, including all places where
notices to employees are customarily posted. Similar copies
shall be posted at the crew headquarters at all operating
drilling sites. Copies shall also be provided the Union for
posting (the Union willing) at union halls or meeting places
in the Permian Basin. Reasonable steps shall be taken by
623
the Respondent to insure that said notices are not altered,
defaced, or covered by any other material.
(c) Notify the Regional Director for Region 16, in
writing, within 20 days from receipt of this recommended
Order, what steps the Respondent has taken to comply
herewith.
20 In the event no exceptions are filed as provided by Sec 102.46 of the
Rules and Regulations of the National Labor Relations Board, the findings,
conclusions, and recommended Order herein shall, as provided in Sec.
102.48 of the Rules and Regulations , be adopted by the Board and become
its findings, conclusions, and Order , and all objections thereto shall be
deemed waived for all purposes.
21 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 Relations 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."
APPENDIX
NOTICE To EMPLOYEES
POSTED BY ORDER OF THE
NATIONAL LABOR RELATIONS BOARD
An Agency of the United States Government
WE WILL NOT refuse to bargain collectively with
Local 826, International Union of Operating Engineers,
AFL-CIO, as the exclusive collective-bargaining repre-
sentative of all our following employees:
All employees working out of our Kermit , Texas,
yard, including roughnecks (derrickmen and floor
hands),
truckdrivers,
welders,
mechanics and
helpers, but excluding office clerical employees,
professional employees, guards, watchmen, dril-
lers and supervisors as defined in the Act.
WE WILL NOT withdraw recognition and refuse to
meet with the Union as exclusive collective-bargaining
representative of employees in said unit.
WE WILL bargain collectively with the Union upon
request as the exclusive collective -bargaining represent-
ative of the employees in the appropriate unit and if an
understanding is reached we will sign a contract with
the Union.
LEATHERWOOD DRILLING
COMPANY
(Employer)
Dated
By
(Representative)
(Title)
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,
Federal Office Building, Room 8-A-24, 819 Taylor Street,
Fort Worth, Texas 76102, Telephone 817-334-2921.