231 NLRB 1014
Vantran Electric Corp.
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Vantran Electric Corporation and Chauffeurs and
Helpers Local
Union
No. 50, affiliated with
International Brotherhood of Teamsters, Chauf-
feurs, Warehousemen and Helpers of America.
Case 14-CA-9551
August 31, 1977
DECISION AND ORDER
BY MEMBERS JENKINS, MURPHY, AND
WALTHER
On April 13,
1977, Administrative Law Judge
Marion C. Ladwig issued the attached Decision in
this proceeding. Thereafter, counsel for the General
Counsel filed exceptions and a supporting brief, and
Respondent filed a brief in answer to General
Counsel's exceptions.
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
briefs and has decided to affirm the rulings, findings,
and conclusions of the Administrative Law Judge
only to the extent consistent herewith.
We affirm the Administrative Law Judge's findings
of fact which are, in large part, unchallenged by the
parties. We cannot, however, affirm his ultimate
conclusion that Respondent has not violated Section
8(a)(5) and (1) of the Act. In this regard, the
Administrative Law Judge has misapplied our earlier
decision in Pride Refining, Inc., 224 NLRB 1353
(1976), enforcement denied 555 F.2d 453 (C.A. 5,
1977). Rather, we conclude, as explained below, that
Respondent violated Section 8(a)(5) and (1) of the
Act by withdrawing recognition from the Union on
August 6, 1976.
As found by the Administrative Law Judge the
Union, Chauffeurs and Helpers Local Union No. 50,
IBT, was certified as the bargaining representative in
a production and maintenance unit on February 14,
1975. On March 25, 1975, after two negotiating
sessions, the Union called a strike which continued
for over a year. In April 1975, Respondent filed a suit
in state court for property damages allegedly caused
by the Union during the strike. In September 1975,
while the strike continued, the Union filed unfair
labor practice charges claiming that Respondent had
illegally refused to bargain. On October 22, 1975, the
General Counsel issued a complaint which dated
Respondent's alleged refusal to bargain from March
Poole Foundry and Machine Company, 95 NLRB 34, 37 (1951), enfd. 192
F.2d 740 (C.A. 4, 1951). cert. denied 342 U.S. 954.
231 NLRB No. 169
18, 1975. Subsequent union charges were consolidat-
ed in a complaint which issued on March 11, 1976.
On March 22, 1976, however, Respondent and the
Union signed a non-Board settlement agreement in
which Respondent agreed to seek dismissal of the
pending state court complaint; reinstate 11 former
strikers; provide information supporting its reduction
in manning; and "[u]pon request ...
engage in
collective bargaining negotiations with the Union."
In return, the Union agreed to withdraw the charges
pending before the Board, and provide a list of all
strikers seeking reinstatement. On the same day that
the agreement was signed, the Union requested, and
the Regional Director approved, the withdrawal and
dismissal of the charges.
Approximately 4-1/2 months later, on August 6,
1976, Respondent withdrew recognition from the
Union based upon the Union's alleged loss of
majority status in the bargaining unit.
General Counsel had alleged that, as in Pride
Refining, supra, the parties' March 22 agreement
operated as a settlement of the unfair labor practice
charges such that the certification year was extended
for approximately 11 months from March 22. As a
result, the General Counsel argued that Respon-
dent's withdrawal of recognition from the Union
only 5 months after the agreement violated Section
8(a)(5) and (1) of the Act.
The Administrative Law Judge, however, found
Pride Refining factually distinguishable. Because the
Union had not abided by its agreement to furnish the
Company with a list of the strikers seeking reinstate-
ment and had bargained only haphazardly after the
agreement, he concluded that the Union's real
interest in reaching agreement was not settlement of
the refusal-to-bargain charges, but rather its desire to
have the damage suit brought by Respondent
dismissed. Accordingly, he held that the agreement
did not operate as a settlement of the pending Board
charges so that the certification year should be
extended. Finally, the Administrative Law Judge
concluded that Respondent had bargained for a
reasonable period of time after the agreement and
that it, therefore, lawfully withdrew recognition from
the Union on August 6, 1976.
The Board is thus faced with determining the legal
effect to be afforded the parties' March 22 agree-
ment. In prior cases, the Board has required parties
to negotiate for a "reasonable time" following a
settlement agreement resolving refusal-to-bargain
charges; I and where the agreement resolves allega-
1014
VANTRAN ELECTRIC CORPORATION
tions of a refusal to bargain in the certification year it
has extended the union's certification. 2
In Pride
Refining, supra, we held that a non-Board settlement
agreement which resolved the union's unfair labor
practice charges extended the certification year, since
the employer's concessions were the "quidpro quo for
the Union's withdrawing its charges," and the
charges had alleged a refusal to bargain in the
certification year.3
Consistent with these principles, we conclude that
here the parties' March 22 agreement was a settle-
ment agreement which extended the certification
year. The agreement itself states that it is "for the
purpose of amicably settling and resolving the
following differences ....
" Thereafter, in item 7,
Respondent agrees to bargain with the Union. As a
result of that and other concessions, the Union
withdrew its charges which had alleged, inter alia, a
refusal to bargain by Respondent commencing I
month after certification. Accordingly, from the time
of the settlement agreement, the parties were entitled
to bargain for at least Il months so that the Union
could have that portion of the certification year to
which it was still entitled free of any encumbrances.
As Respondent withdrew recognition from
the
Union during the certification year as extended, it
violated Section 8(a)(5) and (1) of the Act.
The Administrative Law Judge's and Respondent's
misapprehension of Respondent's duties in this
proceeding stems from their misunderstanding of
what the Board held in Pride Refining. The issue
there was whether a private agreement between the
parties constituted a settlement agreement where it
had resulted in the union's withdrawing its 8(a)(5)
charges, but it contained no agreement to bargain.
The employer argued that it had lawfully withdrawn
recognition
since the agreement "was simply a
contract, with an express expiration date, and that
between the time the parties signed the contract and
its expiration date the Union lost its majority
status." 4 General Counsel, on the other hand, argued
that the parties' agreement, was, in fact, a settlement
agreement and that the Poole Foundry rules applied
to it. The Board agreed with the General Counsel. It
concluded that the agreement, which set certain
conditions of employment, was a settlement agree-
Mar-Jua
Poulirv Company.
Inc., 136 NLRB 785 (1962): Electralab
Fl'ctronics Corporation, 146 NLRB 328 (1964): Mid-City Foundr) Co., 167
NIRB 795 (1967).
:' 224 NLRB at 1354. The appellate court's denial of enforcement does
not warrant a different result here. See discussion at fn. 5, infra
Id/
: 224 NLRB at 1354, fn. 8. In its denial of enforcement. however. the
Fifth Circuit has found that there is not substantial evidence to support this
conclusion. While we respectfully believe that our holding in Pride Refining,
in this regard, was correct, we note that the appellate court's decision would.
in an3 event. have little effect on this case, since here there is no factual issue
ment, rather than a contract, since "the impelling
consideration for the Union's withdrawal of the
charges" or the "quid pro quo" for the withdrawal,
was the various concessions respondent had made in
the agreement.5
To determine the quid pro quo for the agreement of
the parties in this case, the Administrative Law Judge
incorrectly considered
later events rather than
restricting himself to the four corners of the agree-
ment. From later events, he divined that the Union's
real reason for settling the charges was its desire to
see the lawsuit dismissed. In so concluding, the
Administrative Law Judge completely missed the
points (1) that Respondent had agreed as part of the
settlement to recognize and bargain with the Union,
and (2) that as a result the Union withdrew its
charges. Yet it is this kind of settlement agreement
which we have held extends the certification year. As
noted in Pride Refining, "in the ordinary settlement
agreement, the employer simply agrees to bargain
with the union with an object of reaching a
collective-bargaining agreement." 6 We stress again
that the Board's decision in Pride Refining was not
meant to constitute a rule whereby this Board would
attempt to ferret out which of various concessions
was the real reason for the parties' entering into a
settlement agreement. We conclude that when an
employer, as Respondent here, agrees as one of its
concessions to bargain with a union and that union,
based on that concession, thereupon withdraws
unfair labor practice charges against the employer,
alleging an unlawful refusal to bargain, we will
construe that agreement as a typical settlement
agreement warranting application of Poole Foundry?
rules.
Respondent appears to argue further, however,
that, as the March 22 agreement did not include a
concession by Respondent on every allegation of the
complaint which was ultimately withdrawn, the
agreement cannot trigger the Poole Foundry rules.
Such a contention is without merit. It is irrelevant
that the settlement agreement did not fully resolve
every complaint allegation. What is important is that
the March 22 agreement, taken as a whole, clearly
as to whether the agreement was a settlement agreement. It was so
designated on its face. As such, it appears from the court's dicta that it, too,
would find Poole Foundrv rules applicable:
It is not open to question that ordinarily in an S(aX5) settlement
agreement the employer acknowledges the majority status of the Union
and agrees to bargain collectively for a reasonable time. 1555 F.2d at
458.1
6 224 NLRB at 1354, fn. 8.
1015
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
settled, to the Union's and Respondent's satisfaction,
the outstanding complaint.7 This document then was
a settlement agreement which, even more so than in
Pride, constituted the "quid pro quo for the Union's
withdrawing of the charges."" And, as one of the
elements in the agreement was that Respondent
would bargain with the Union on request, the Poole
Foundry rules clearly apply to that commitment.
As we noted above, Poole Foundry allows the
parties to negotiate for a "reasonable time" following
a settlement agreement. In situations where the
agreement settles charges
alleging a refusal to
bargain in the certification year, the Board has
determined that the reasonable time should "com-
pensate for the failure to bargain during any period
of the certification year." 9 The Union was certified
on February 14, 1975, and the complaint alleged a
refusal to bargain from March 18, 1975, approxi-
mately 1 month after certification. Accordingly, the
Union was entitled to the remaining 11 months of its
certification year after the March 22 agreement, and,
as withdrawal of recognition occurred on August 6,
only some 4-1/2 months after the agreement,
Respondent violated Section 8(a)(5) of the Act when
it withdrew recognition.)0
Our dissenting colleague agrees that Poole Foundry,
supra, is applicable and he would require Respondent
to bargain for a "reasonable" time following the
settlement agreement. However, our colleague at-
taches no significance to the fact that the conduct
underlying the settlement agreement arose during the
certification
year. He would, in effect, render
meaningless the Board's longstanding rule, which has
obtained court approval,
requiring that, absent
unusual circumstances, an employer will be required
to honor a certification for I year."
In Mar-Jac Poultry Company, supra, the Board,
citing the aforementioned Supreme Court decision,
stated that "[a]mong the reasons supporting the
adoption of this rule is to give a certified union
'ample time for carrying out its mandate' and to
prevent an employer from knowing that 'if he
dillydallies or subtly undermines union strength' he
may erode that strength and relieve himself of his
duty to bargain." 136 NLRB at 786.
Under our colleague's theory of the case, an
employer may easily flout the requirement that it
honor the certification for 1 year by simply refusing
7 Moreover, the Regional Director, on the same date on which the
parties signed the agreement, approved as "appropriate" the withdrawal of
the charges
, 224 NLRB at 1354. We note that the Board in the past has found much
less formal understandings than the parties' March 22 agreement to be
tantamount to settlement agreements. See, e.g., Gebhardt-Vogel Tanning
Companra, 154 NL.RB 913 (1965): Los Angeles Tile Jobbers, Inc., 210 NLRB
789 (1974).
" Mid-Citr Foundry, supra at 799.
"' Respondent's objective considerations for withdrawing recognition at
to bargain during the certification year and then
entering into a settlement agreement.s In the case
before us, Respondent has, by its refusal to bargain,
taken from the Union a substantial part of the period
when unions are at their greatest strength-the 1-
year period immediately following the certification.
In fact, Respondent bargained with the certified
Union for only I month, and then for 4-1/2 months
following the settlement agreement. To permit
Respondent to bargain for an undefined lesser period
of time would be to allow it to "take advantage of its
own failure to carry out its statutory obligation,
contrary to the very reasons for the establishment of
the rule that a certification requires bargaining for at
least 1 year." 13
Because of the violation we have found, we
herewith substitute the following Conclusions of Law
for those of the Administrative Law Judge.
CONCLUSIONS OF LAW
1. At all times material, since February 14, 1975,
the Union has been the exclusive representative of
the production and maintenance
employees in
Vandalia, Illinois, for the purposes of collective
bargaining within the meaning of Section 9(a) of the
Act.
2.
Respondent violated Section 8(a)(5) and (1) of
the Act by withdrawing recognition from the Union
on August 6, 1976.
THE REMEDY
The appropriate remedy in this case was aptly
stated by the Trial Examiner in Mid-City Foundry
Co., 167 NLRB at 799. We set out his remedy with
appropriate insertions covering the facts herein:
There should have been bargaining for at least a
year following the certification, and for a reasonable
time after the agreement. The reasonable period of
time should compensate for the failure to bargain
during any period of the certification year. The
General Counsel charged Respondent in the com-
plaint that was settled by the agreement with refusing
to bargain from March 18, 1975. The certification
was issued by the Board on February 14, 1975. So
there was no refusal to bargain for the first month of
the certification year. It is undisputed that Respon-
dent and the Union bargained for 4-1/2 months
that time are unavailing for, with the extension of the certification year, by
operation of law, the Union was free from challenge to its majority status
during the extended certification year. See, e.g., Mar-Jac Poultry Company,
supra.
"i Ray Brooks v. N.L.R. B, 348 U.S. 96 (1954).
12 The effect of that theory would be to discourage participation by
charging parties in settlement procedures, since no meaningful remedy
would result.
I3 Mar-Jac Poulry Company, supra at 787.
1016
VANTRAN ELECTRIC CORPORATION
following the agreement. Therefore, Respondent is
required to bargain for at least a period of 6-1/2
months from the date on which Respondent and the
Union resume bargaining, and, if an agreement is
reached, to embody it in a signed written contract.
ORDER
Pursuant to Section 10(c) of the National Labor
Relations Act, as amended, the National Labor
Relations Board hereby orders that the Respondent,
Vantran Electric Corporation, Vandalia, Illinois, its
officers, agents, successors, and assigns, shall:
1. Cease and desist from:
(a) Withdrawing recognition from and refusing to
meet and bargain with the Union.
(b) In any other manner interfering with the efforts
of the Union to negotiate for and represent its
production and maintenance employees excluding
office clerical employees, professional employees,
guards, and supervisors as defined in the Act.
(c) In any like or related manner interfering with,
restraining, or coercing employees in the exercise of
the rights guaranteed them by Section 7 of the Act.
2.
Take the following affirmative action which is
necessary to effectuate the policies of the Act:
(a) Upon request, bargain collectively with the
Union as the exclusive representative of its employ-
ees in an appropriate unit of production and
maintenance employees, excluding office clerical
employees, professional
employees, guards, and
supervisors as defined in the Act, for at least 6-1/2
months from the date it resumes bargaining with the
Union, and embody any understanding reached in a
written agreement.
(b) Post at its place of business in Vandalia,
Illinois,
copies of the attached
notice marked
"Appendix." 14 Copies of said notice, on forms to be
provided by the Regional Director for Region 14,
after being duly signed by Respondent's representa-
tive, shall be posted by it immediately upon receipt
thereof, and be maintained by it for 60 consecutive
days thereafter, in conspicuous places, including all
places where notices to employees are customarily
posted. Reasonable steps shall be taken by Respon-
dent to insure that said notices are not altered,
defaced, or covered by any other material.
(c) Notify the Regional Director for Region 14, in
writing, within 20 days from the date of this Order,
" In the event that this 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 read "Posted Pursuant to a
Judgment of the United States Court of Appeals Enforcing an Order of the
National Labor Relations Board."
t- 224 NI.RB at 1359.
i Id In ms prior dissent, I cited Automated Business Systems, a Division
what steps Respondent has taken to comply here-
with.
MEMBER WALTHER, dissenting:
Once again, as in Pride Refining, supra, I must
respectfully dissent. The majority has found that
Respondent violated Section 8(a)(5) by unlawfully
withdrawing recognition from the Union during the
certification year. While the Union was certified on
February 14, 1975, and Respondent withdrew recog-
nition on August 6, 1976, over a year and a half later,
the majority finds that as of August 6 the Union still
had 6-1/2 months remaining in its certification year.
This is so, it reasons, because Respondent only
bargained in good faith for I month from the date of
the original certification, and for 4-1/2 months after
the March 22 agreement. Thus, to provide the Union
with a full year in which to bargain with immunity
from challenge to its majority status, my colleagues
extend the certification year and order Respondent
to bargain in good faith for at least 6-1/2 more
months.
As I noted in Pride Refining, this outcome
necessarily presupposes that "Respondent's earlier
conduct justified extending the certification year."15
That is, my colleagues are imposing a remedy here as
if the original charge-i.e., that Respondent refused
to bargain during the certification year-had been
litigated and Respondent found in violation of
Section 8(a)(5). There has, however, been no judicial
finding that Respondent in fact contravened any
section of the Act during the certification year.
Rather, there are only allegations in the General
Counsel's complaint that on March
18,
1975,
Respondent embarked upon a course of conduct
which amounted to a refusal to bargain in good faith.
These allegations were not admitted, they were not
litigated, and the Board has made no formal
determination with regard to them, other than to
approve the Union's request to withdraw its charge,
and then, to dismiss the complaint. I, therefore,
reiterate that "it
is . . . improper to treat the
allegation[s] as proved. [Footnote omitted.]" 16
Moreover, the decision to extend the certification
year is contrary to sound labor policy, for it will
discourage voluntary non-Board settlement agree-
ments, while encouraging, at the least sign of
disagreement, the filing of refusal-to-bargain charges.
Neither the parties nor this Agency will be better
served by such a result.
of Litton Business Systems, Inc., a Subsidiary of Litton Industries, Inc., 205
NLRB 532, 533 (1973). There, the Board recognized that it is improper to
treat allegations of pnor misconduct by a respondent as evidence to be
weighed in determining the lawfulness of that respondent's later conduct.
Yet this kind of bootstrap logic is the predicate for the majority's decision
here.
1017
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Rather than engage in the convoluted and ques-
tionable reasoning of the majority, which requires
them to examine past allegations of misconduct, I
would instead focus on the conduct of Respondent at
the time of the settlement agreement. Thus, in cases
involving an unlitigated refusal to bargain followed
by a voluntary non-Board settlement agreement, I
would merely determine whether the withdrawal of
recognition violated Poole Foundry, supra. Here
Respondent signed an agreement in which it volun-
tarily agreed to bargain with the Union.'7
Having
agreed to bargain, Respondent was obligated under
Section 8(a)(5) of the Act to bargain in good faith. As
part of that good-faith bargaining obligation, Poole
Foundry requires Respondent to bargain for a
"reasonable time." is
Therefore,
the issue in this case is whether
Respondent bargained for a reasonable time follow-
ing the signing of the settlement agreement. As in the
past, this determination will turn on the peculiar
facts of the case.19 I would adopt the finding of the
Administrative Law Judge that 4-1/2 months was a
reasonable time, and that, consequently, Respon-
dent's withdrawal of recognition on August 6, 1976,
was lawful. Accordingly, having found that the
certification year had expired, and that Respondent
had bargained for a reasonable time, I would dismiss
the complaint in its entirety.
17 In this regard, this case is significantly different from Pride Refining. In
Pride Refining, I agreed with the Administrative Law Judge that the
document executed by the parties was a contract, rather than a collective-
bargaining agreement. The Fifth Circuit has now denied enforcement of the
majority opinion for this very reason. Here, however, I agree with the
majority that the agreement between the parties was a traditional settlement
agreement in which Respondent agreed to bargain with the Union in
exchange for the Union's withdrawal of the refusal-to-bargain charge.
i' "The test of the legality of the refusal to bargain in a case of this
nature is whether or not a reasonable time has elapsed between the
execution of the settlement agreement and the refusal to bargain ..
"
Poole FoundrVt. 95 NLRB at 37.
A" See. e.g.. Mid-Citny Foundry Co., 167 NLRB at 799.
APPENDIX
NOTICE TO EMPLOYEES
POSTED BY ORDER OF THE
NATIONAL LABOR RELATIONS BOARD
An Agency of the United States Government
WE WILL NOT withdraw recognition from and
refuse to bargain collectively with the Union as
the certified exclusive bargaining representative
with respect to wages, hours, and other terms and
conditions of employment by refusing to recog-
nize the Union.
WE WILL NOT, in any other manner, interfere
with the efforts of the Union to negotiate for and
represent our production and maintenance em-
ployees.
WE WILL NOT in any like or related manner
interfere with, restrain, or coerce our employees
in the exercise of the rights guaranteed them by
Section 7 of the Act.
WE WILL bargain, upon request, with the Union
as the exclusive representative of our production
and maintenance employees, for at least 6-1/2
months from the date we resume bargaining with
the Union, and embody in a written signed
agreement any understanding reached with this
Union regarding these employees.
VANTRAN ELECTRIC
CORPORATION
DECISION
STATEMENT OF THE CASE
MARION C. LADWIG, Administrative Law Judge: This
case was heard at Vandalia, Illinois, on November 2, 1976.1
The charge was filed by the Union on August 11 and the
complaint was issued on September 24. The primary issue
is whether the Company (Respondent) unlawfully with-
drew recognition from the certified Union, in violation of
Section 8(a)(5) and (1) of the Act.
Upon the entire record, including my observation of the
demeanor of the witnesses, and after due consideration of
the briefs filed by the General Counsel and the Company, I
make the following:
FINDINGS OF FACT
I. JURISDICTION
The Company, an Illinois corporation, is engaged in the
manufacture of electrical equipment in Vandalia, Illinois,
where it annually ships goods valued in excess of $50,000
directly to points located outside the State. The Company
admits, and I find, that it is an employer engaged in
commerce within the meaning of Section 2(2), (6), and (7)
of the Act, and that the Union is a labor organization
within the meaning of Section 2(5) of the Act.
All dates are in 1976 unless otherwise stated.
1018
VANTRAN ELECTRIC CORPORATION
II. ALLEGED UNFAIR LABOR PRACTICES
A.
Strike and Settlement
On February 6, 1975, the Union won an election in a unit
of 72 production and maintenance employees at the
Company's Vandalia plant. The vote was 52 for and 15
against union representation,
with 2 challenges. The
certification was issued on February 14, 1975.
Because of undisputed economic necessity, the Company
laid off a total of 26 employees within a month following
the certification.
On March 25, 1975, after only two negotiating sessions in
which union security was a key issue, the Union called a
strike which was joined by most of the 46 active and 26
laid-off employees. The strike continued for nearly a year,
without any of the strikers returning to work. It is
stipulated that when the strike ended on March 6, the
Company's manning requirements were reduced to "ap-
proximately 25" employees for the "reasonable foreseeable
future." By this time, five of the former foremen were
working in the bargaining unit, along with other nonstrik-
ers and strike replacements.
During the strike, there was some reported picket line
violence involving nonstrikers and strike replacements;
nails were placed on the driveway; a nonstriker's house was
damaged; car windows were broken; and salt was placed in
a strike replacement's gas tank. In April
1975, the
Company filed a damage suit in state court against the
Union, its business agent, and 57 of the strikers.
In September 1975, about 7 months after the certifica-
tion, the Union filed unfair labor practice charges against
the Company in Case 14-CA-8783. On October 22, 1975, a
complaint was issued, alleging 8(aX5) and (1) violations for
bad-faith bargaining since March
18,
1975, and for
increased benefits given to strike replacements, causing
and/or prolonging the strike. On March 5, the Union filed
additional charges in Case 14-CA-9143, and on March 11
(5 days after the end of the strike), a consolidated
complaint was issued, again alleging an unfair labor
practice strike, and further alleging an unlawful refusal to
reinstate 56 listed strikers following unconditional offers to
return to work.
On March 22, the Company and Union signed a non-
Board settlement agreement. The agreement first provided
that the Company would dismiss the pending complaint in
the state court damage suit against the Union. It next
provided that the Union would seek withdrawal and
dismissal of the charges and complaint in the two Board
cases. Then it provided that the Union would furnish the
Company a list of former strikers who desired to return to
work, and that from this list, the Company would reinstate
II former strikers-to take the place of 11 strike replace-
ments-and put the others on a preferential hiring list. The
agreement also stated that "Upon request, the Company
will engage in collective bargaining negotiations with the
Union." Thereafter, the state court dismissed the damage
suit, and the Regional Director approved the Union's
withdrawal of the charges, and dismissed the consolidated
complaint.
B.
Postsettlement Occurrences
After signing the settlement agreement, the Union failed
to furnish the Company with the list of former strikers who
desired to return to work. In the absence of such a list, the
Company used the list attached to the consolidated
complaint, reinstated II of the former strikers, and laid off
11 strike replacements. Most of the former strikers declined
reinstatement, and some of them quit after being reinstat-
ed. By August 6, when all 56 former strikers (with the
possible exception of the union steward and three others)
had been offered reinstatement, only 12 of them had
returned and remained at work. By this time, five of the
laid-off strike replacements had been rehired.
During the 4-1/2 months between the March 22
settlement agreement and the August 6 withdrawal of
recognition, the Union did not hold any membership
meetings with the unit employees, nor report to them on
progress of the negotiations. During this time, there were
four negotiating sessions, and continued deadlock on the
union-shop issue.
On August 6, the bargaining unit consisted of 27
employees. In this total, there were 12 former strikers, 10
nonstrikers (including 5 former foremen), and 5 strike
replacements. Thus on that date, the returning strikers were
outnumbered 15 to 12.
From the undisputed testimony, there is no doubt that
the Union had lost its majority support among the unit
employees. Personnel Manager Jerry Little gave undis-
puted testimony that all 10 of the nonstrikers and all 5 of
the strike replacements had told him during the strike
and/or between March 22 and August 6 that they were
opposed to the Union. Many of them cited the purported
strike violence and misconduct.
On August 6, the Company sent the Union a letter,
stating that the Union had lost its majority support and
refusing to recognize or negotiate with the Union any
further.
C. Contentions and Concluding Findings
Relying primarily on the Board's decision in Pride
Refining, Inc., 224 NLRB 1353 (1976), the General Counsel
contends that the March 22 agreement operates as a
settlement of the unfair labor practice charges in Cases 14-
CA-8783 and 14-CA-9143; that the certification year
(beginning February 14, 1975) should be extended for I I
months because of the interruption in negotiations during
the strike by the litigation (the complaints alleging bad-
faith bargaining since March 18, 1975); and that the
Company "withdrew recognition from the Union after only
slightly more than 5 months of the Union's extended
certification year had expired."
The Company seeks to distinguish Pride Refining. The
Company contends that the March 22 non-Board agree-
ment did not operate as a settlement of the two pending
Board cases, arguing that the "primary benefit derived by
Local 50, and its motivation for entering the agreement,
was Respondent's agreement to seek dismissal of its
damage suit against the Union filed after illicit acts of
violence and vandalism occurred."
1019
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
I agree with the Company that the Pride Refining
decision is inapplicable under the circumstances of this
case. The Union's conduct after the March settlement
agreement demonstrates that the Union was primarily
interested in the dismissal of the damage suit, not the
reinstatement of the 56 strikers (as sought in the consoli-
dated complaint). The bargaining unit had been reduced to
25 from 72 employees, and the Union did not abide by its
agreement to furnish the Company with a list of those
seeking to fill the few remaining jobs available in this
reduced bargaining unit. The Union did meet privately
with the Company in four negotiating sessions over a 4-
1/2-month period, but it did not keep in contact with the
unit employees or notify them about developments in the
negotiations.
Under these circumstances, I find that the March 22
non-Board settlement between the Company and the
Union did not operate as a settlement of the pending Board
cases, entitling the Union to "an extended certification
year of 11 months within which time it was free from any
challenge to its majority status" (in the words of the
General Counsel). I further find that in the absence of an
extended certification year, the Company bargained for a
reasonable time (a period of 4-1/2 months), and lawfully
withdrew recognition from the Union on August 6, when it
became clear that the antiunion nonstrikers and strike
replacements outnumbered the former strikers (by a total
of 15 to 12) and that the certified Union had lost its
majority status. Accordingly, I shall dismiss the complaint.
CONCLUSIONS OF LAW
The Company did not violate the Act when it withdrew
recognition from the certified Union after the Union lost
its majority status at the plant.
[Recommended Order for dismissal omitted from publi-
cation.l
1020