Tac Industries, Inc.

DECISIONS OF NATIONAL LABOR RELATIONS BOARD Tac Industries, Inc. and Sheet Metal Workers International Association, AFLCIO, Local No. 18, Petitioner. Case 16-RC-7381 August 23, 1977 DECISION AND CERTIFICATION OF REPRESENTATIVE BY CHAIRMAN FANNING AND MEMBERS MURPHY AND WALTHER Pursuant to authority granted it by the National Labor Relations Board under Section 3(b) of the National Labor Relations Act, as amended, a three- member panel has considered objections to an election held February 18, 1977,1 and the attached Regional Director's report recommending disposi- tion of same. The Board has reviewed the record in light of the exceptions and brief, and hereby adopts the Regional Director's findings 2 and recommenda- tions. CERTIFICATION OF REPRESENTATIVE It is hereby certified that a majority of the valid ballots have been cast for Sheet Metal Workers International Association, AFL-CIO, Local No. 18, and that, pursuant to Section 9(a) of the Act, the foregoing labor organization is the exclusive repre- sentative of all the employees in the following appropriate unit for the purpose of collective bargaining with respect to rates of pay, wages, hours of employment, and other terms and conditions of employment: All regular full-time production and maintenance employees including welders, installer-welders, laborers, layout employees, installers, and helpers employed by the Employer at its facility at 601 Burlington Road, Saginaw, Texas, but excluding all other employees including office clerical employees, guards, watchmen, leadmen, and supervisors as defined in the Act. I The election was conducted pursuant to a Stipulation for Certification Upon Consent Election. The tally was: II for, and 2 against, the Petitioner: there were no challenged ballots. 2 The Employer does not deny that it knew before the election of the alleged pro-Petitioner sympathies of two of its directors, but complains only of the length of time it had to respond to these directors. In all the circumstances, including the Employer's admitted knowledge of these directors' sentiments, we conclude that it has not been shown that the conditions for an election here were destroyed by any actions of these directors and, accordingly, we affirm the Regional Director's overruling of the Employer's objections. 231 NLRB No. 100 APPENDIX REPORT ON OBJECTIONS Pursuant to a Stipulation for Certification Upon Consent Election approved on February 4, 1977, an election by secret ballot was conducted on February 18, 1977, under the direction and supervision of the Regional Director in the following appropriate bargaining unit. INCLUDED: All regular full-time production and maintenance employees including welders, instal- ler-welders, laborers, lay-out employees, instal- lers, and helpers employed by the Employer at its facility at 601 Burlington Road, Saginaw, Texas. EXCLUDED: All other employees including office clerical employees, guards, watchmen, leadmen, and supervisors as defined in the Act. Upon conclusion of the election the parties were served with a Tally of Ballots reflecting the election results as follows: Approximate number of eligible voters ...... . 14 Void ballots ................... 0 Votes cast for Petitioner ........... 11 Votes cast against participating labor organization ......... ..... ... 2 Valid votes counted .. .. .. .. . . .... 13 Challensed ballots ............... . 0 Valid votes counted plus challenged ballots ... . 13 Challenges are not sufficient in number to affect the results of the election. A majority of the valid votes counted plus challenged ballots has been cast for Sheet Metal Workers International Association, AFLCIO, Local No. 18. On February 25, 1977, the Employer timely filed objections to conduct affecting the results of the election and immediately served copies on all parties to the proceeding. Pursuant to Section 102.69(c) of the Board's Rules and Regulations, Series 8, as amended, the undersigned has conducted an investigation of the objections, and having duly considered all the evidence submitted by the parties and otherwise disclosed by the investigation, hereby issues this report and recommendations. The Objections 1. On February 14, 1977, Edwin L. Smith, Jr., and Aughty B. Shelton III were present at and during a union meeting held at the home of Edwin L. Smith, Jr., and participated in the meeting. 2. Edwin L. Smith, Jr., and Aughty B. Shelton III are each owners of 20 percent of the capital stock of TAC Industries, Inc., and they are each active members of the Board of Directors of TAC Industries, Inc. As such they participate in the formation and administration of labor policy of TAC Industries, Inc. 554 TAC INDUSTRIES 3. Edwin L. Smith, Jr., and Aughty B. Shelton III participated in the preelection union meeting of February 14, 1977, and encouraged those present to vote for the union. 4. Petitioner by encouraging or permitting said persons to be present at or participating in said preelection union meeting created the appearance of a conflict of interest on the part of the said Smith and Shelton and perpetrated a fraud on the prospective voters. 5. As a result of the foregoing the laboratory condi- tions under which said election should have been conducted were destroyed and said election does not reflect the free and untrammeled wishes of the persons who voted therein. In view of the foregoing said election should be vacated and set aside and a new election conducted in which laboratory conditions are maintained. The Investigation In support of the objections the Employer submitted several notarized statements from employees who state that a meeting was held at the home of Edwin L. Smith, Jr., and that Aughty B. Shelton III was also present during the meeting and both participated in the meeting encouraging those present to vote for the union. In addition, the Employer submitted the notarized statement of Stephen C. Jones, vice president of the Employer, wherein Jones states that Shelton and Smith are each active members of the board of directors of the Employer and as such they participate in the formulation and administration of labor policy of the Employer as well as each owning 20 percent of the capital stock of the corporation. In addition, Jones states the alleged conduct of Smith and Shelton in encouraging employees to vote for the union was contrary to the expressed position of the Employer and created a false and misleading atmosphere which perpetrated a fraud on the prospective voters. However, the investigation revealed that the Employer had knowledge of the pro-Petitioner sympathies and activities of Smith and Shelton before the election. More specifically the investigation established that on the day following the meeting at the home of Smith, i.e., February 15, 1977, Carl Jones, president of the Employer, addressed the assembled employees and orally stated to the employees that he was aware that the meeting had occurred at Smith's house. It further appears that Carl Jones stated to the employees that they were being used by Smith and Shelton in a vengeful fashion in a dispute between Smith and Shelton on the one hand and Carl Jones and Steve Jones on the other hand. It is clear that the Employer had knowledge of the alleged objectionable conduct of Smith and Shelton at least three days before the election. No showing was offered or made to establish that this was not a reasonable period of time for the Employer to disavow the activities of Smith and Shelton and take appropriate steps to dissipate their alleged objectionable conduct. Accordingly, the Employer may not now invalidate the election because of the alleged misconduct of its own shareholders. See Decatur Transfer & Storage, Inc., 178 NLRB 63; Talladega Cotton Factory, Inc., 91 NLRB 470. Summary Based on the foregoing, it is recommended all the objections be overruled and that the Petitioner be certified as collective-bargaining representative in the unit as described in the Stipulation for Certification Upon Con- sent Election. 555