261 NLRB 44
Chevron Chemical Company
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Chevron Chemical Company and Oil, Chemical &
Atomic Workers International Union #4-447.
Cases 15-CA-6807 and 15-CA-7014
April 9, 1982
DECISION AND ORDER
BY CHAIRMAN VAN DE WATER AND
MEMBERS FANNING, ZIMMERMAN, AND
HUNTER
On July 18, 1979, Administrative Law Judge
Walter H. Maloney, Jr., issued the attached Deci-
sion in this proceeding. Thereafter, Respondent
filed exceptions and a supporting brief, and the
General Counsel refiled with the Board his brief to
the Administrative Law Judge.
The Board has considered the record and the at-
tached Decision in light of the exceptions and
briefs and has decided to affirm the rulings, find-
ings, and conclusions of the Administrative Law
Judge only to the extent consistent herewith.
In May 1977, Oil, Chemical & Atomic Workers
International Union2 was certified in a unit of 23
clerical employees at Respondent's Belle Chasse
plant (also referred to in the record as the Oak
Point plant). The Union also represented Respond-
ent's production and maintenance employees, and
Preliminary to our discussion herein, we note our disagreement with
certain of the Administrative Law Judge's findings. We do not adopt his
comments concerning purported per se violations of Sec. 8(aX5) as to
wage increases. Such matters were not alleged in the complaint or at the
hearing, nor were they litigated as alleged violations, and some at least
would have been outside the 10(b) period. In our view, the record does
not indicate any unilateral salary adjustments between the time of certifi-
cation and the strike. While some time increases were granted, they
appear to have been in line with existing policy; and the record indicates
that, although the Union was provided with a list of such on November
11, 1977, it did not question the increases. We do not adopt the Adminis-
trative Law Judge's references to Respondent's purportedly refusing to
discuss a grievance, inasmuch as the record, in our view, does not sup-
port his interpretation. As we conclude that the record does not demon-
strate an existing practice of taking 5 days' vacation on a 1-day-at-a-time
basis at Oak Point, we decline to adopt the Administrative Law Judge's
findings predicated on such a practice. We do not agree with the Admin-
istrative Law Judge's conclusion that Respondent's negotiator, Lock-
wood, displayed a cavalier attitude toward a strike threat on February
24. The record indicates that on that Friday afternoon the Union was
considering Respondent's latest proposal, but could not indicate whether
a response might be forthcoming that day. And, as further negotiations
were already scheduled for the following week, Lockwood informed
Union Negotiator Bergeron that he would catch his already scheduled
airline flight to his home on the west coast, and would see him the fol-
lowing week. We do not adopt the Administrative Law Judge's criticism
of Respondent for purportedly failing to provide the Union, during the
negotiations, all justifications of its bargaining posture later presented at
the hearing. In this connection we note the Administrative Law Judge's
own comments on the record to the effect that such reasons may be ma-
terial irrespective of whether they were fully expounded to the other
party during actual negotiating sessions. We decline to adopt the com-
ments by the Administrative Law Judge in the latter part of his summary
of Respondent's bargaining position beginning. "Moreover, the Respond-
ent granted . . ." (ALJD, sec. I,C, II), inasmuch as those comments are,
in our view, either not entirely consistent with or unsupported by, the
record.
' Hereinafter also referred to as OCAW.
technical employees, pursuant to certifications in
1967 and 1968, and Respondent and the Union
were parties to successive collective-bargaining
agreements covering those employees. Following
responses to the Union's request for information
concerning the clerical employees, a preliminary
bargaining session was held on August 2. Twenty-
one further sessions were held from September 14
through February 24, 1978, with another session
scheduled for March 2. In the interim, on Sunday,
February 26, the Union held a membership meeting
to discuss the status of negotiations, and the mem-
bership voted to strike. The strike began the fol-
lowing morning, with 15 union members remaining
on strike until May 17 when unconditional offers
were made to return to work. Respondent by then
had permanently filled all but one of the strikers'
positions:3 that position was offered to the Union at
that time, and a second offer was made when an-
other position subsequently became available. Em-
ployees Perez and Capdeville accepted the offers.
The Administrative Law Judge in his Decision
found that Respondent violated Section 8(a)(5) by
bargaining in bad faith, or indulging in "surface"
bargaining; that the strike was caused or prolonged
by such unfair labor practice; and that Respondent
consequently violated Section 8(a)(3) of the Act by
failing to reinstate all of the former strikers as
unfair labor practice strikers. With respect to the
8(a)(5) allegation, the Administrative Law Judge
apparently agreed with a theory argued by the
General Counsel; i.e., that the Company's proposal
of a broad management-rights clause and a no-
strike clause, in conjunction with a limited arbitra-
tion proposal, was "predictably unacceptable" to
the Union. Thus, he concluded, inter alia, that Re-
spondent demonstrated a lack of good faith by its
initial proposals on September 14, notwithstanding
subsequent modifications. The Administrative Law
Judge also apparently agreed with a contention of
the General Counsel that Respondent's wage offer
was far below what a "self-respecting" union could
take back to the employees, although it is not en-
tirely clear whether he did so because he viewed
the amount of the proposed increase as insufficient
in and of itself, or in the context of "rampant infla-
tion," or because Respondent sought to retain the
authority to grant merit increases over and above
the amount which would be guaranteed for entry
and acceptable performance levels in various classi-
fications.
Respondent contends, inter alia, that the Admin-
istrative Law Judge erred in basing his decision
almost entirely on his own evaluation of the sub-
' No issue exists as to the bona fide nature of the replacements.
261 NLRB No. 4
44
CHEVRON CHEMICAL COMPANY
stantive terms of Respondent's proposals and his
own assessment of whether the parties' economic
weapons were "fairly" used, that he incorrectly
failed to take into account certain background
facts, that he drew certain conclusions which were
unsupported by the facts, and that he misappre-
hended the record evidence in certain respects. We
find merit in certain of Respondent's exceptions as
discussed below.
Discussion
Determining whether parties have complied with
the duty to bargain in good faith usually requires
examination of their motive or state of mind during
the bargaining process, and is generally based on
circumstantial evidence, since a charged party is
unlikely to admit overtly having acted with bad
intent. Hence, in determining whether the duty to
bargain in good faith has been breached, particular-
ly in the context of a "surface bargaining" allega-
tion, we look to whether the parties' conduct evi-
dences a real desire to reach an agreement-a de-
termination made by examination of the record as a
whole, including the course of negotiations as well
as contract proposals. As the Administrative Law
Judge's findings appear to be bottomed primarily
on what he viewed as Respondent's "unacceptable"
proposals on management rights, on no-strike, and
on grievance/arbitration, it is appropriate to briefly
outline the parties' proposals in those areas.4
1. Arbitration: The Union's arbitration proposal
was basically similar to that contained in the exist-
ing production and maintenance (P & M) contract
between the parties, except for the deletion of sec-
tion 10 thereof. That section provided that only
properly processed grievances involving an alleged
company violation of the agreement would be sub-
ject to arbitration, and also specifically excluded
from arbitration the establishment of wage rates or
changes of job classifications, as well as grievances
that would change or exceed any of the terms or
conditions of any of the Company's published
benefit plans. The Union's last written proposal
prior to the strike was the same as its initial pro-
posal on August 2. The Union also sought to elimi-
nate or reduce the 180-day probationary period for
new employees, and to provide for arbitration con-
cerning the discharge of probationary employees.
Respondent's initial contract proposal did not in-
clude arbitration. Its proposal of December 16 pro-
vided for arbitration for settling disputes arising out
of the discharge of regular employees. Its January
' These items plus "seniority and the merit" system, were viewed by
the Federal mediator working with the parties as the major areas of dis-
agreement. The merit system is interrelated with the subject of wages,
and, as the record also shows the latter as a significant area of disagree-
ment, it, too, is discussed inira
26 proposal was essentially the same, except that it
included disputes arising out of discipline as well as
discharge. Unlike the parties' contract for P & M
employees and the Union's proposal for clerical
employees, Respondent proposed that the decision
of the board of arbitration be final and binding
upon the parties.
2. No-strike: The Union proposed a relatively
weak no-strike clause which, unlike the one in the
P & M contract, would permit sympathy strikes
and eliminate the Company's right to discharge or
otherwise discipline employees for violation of the
no-strike clause. Its final proposal, a few days prior
to the strike, was substantially the same as its initial
proposal in August.' Respondent proposed a strong
no-strike clause, which included a section imposing
responsibility on officers or stewards to encourage
employees to return to work in the event of a
breach and a provision permitting the Company to
request immediate arbitration in the event of viola-
tion (with those arbitral expenses to be borne by
the Company). Respondent's initial proposal had
included a provision permitting the Company to
impose discipline for failure to carry out responsi-
bilities under the officer/steward section; subse-
quent proposals deleted that provision but retained
provision for company discipline of employees for
breach of the no-strike provision itself.
3. Management rights: The Union's initial pro-
posal did not include any management-rights provi-
sion. In response to Respondent's proposal, the
Union proffered a weak management-rights clause
and, with its final proposal of February 23, would
have permitted Respondent such rights as deter-
mining the size of the work force, hiring, suspend-
ing, disciplining, or discharging for just cause, and
assigning employees to jobs subject to any of the
other terms of the Union's proposed agreement.
Respondent proposed a strong management-rights
clause, somewhat more detailed than that in the
parties' P & M contract. As with the Union's pro-
posal, Respondent's proposal thereafter remained
substantially the same.
4. Wages: The parties initially agreed to post-
pone consideration of economic matters. The
Union's initial wage proposal, on November 7, re-
quested an increase of about 33 percent, with in-
creases based on progression rates in multiples of 2
to 12 months for five different classifications.
Wages were to be on an hourly rather than the ex-
isting monthly basis, and the merit increase system
was to be eliminated. Respondent, on December 8,
' Although the Union at one point submitted a no-strike article which
omitted the section permitting it to engage in sympathy strikes and pre-
cluding disciplinary action, testimony at the hearing indicated that its
omission of that section was not intended.
45
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
proposed a small wage increase based on its exist-
ing merit system. This offer was increased on De-
cember 16 to provide an additional lump-sum pay-
ment as well as an increase in the merit structure.
The Union's January 16 proposal lowered its wage
increase demand to approximately 24 percent. The
Union also proposed that wage increases be made
retroactive to January 1977. Respondent, on Janu-
ary 24, proposed a wage-package increase of ap-
proximately 8.2 percent.
Analysis and Conclusion
As noted above, in ascertaining whether the duty
to bargain in good faith has been complied with, it
must be remembered that Section 8(d) does not
"compel either party to agree to a proposal or re-
quire the making of a concession ...
." Thus, the
Board does not, "either directly or indirectly,
compel concessions or otherwise sit in judgment
upon the substantive terms of collective bargaining
agreements." N.L.R.B. v. American National Insur-
ance Co., 343 U.S. 395, 404 (1952).6 On the other
hand, as stated by the Supreme Court," [T]he
Board has been afforded flexibility to determine
. . .whether
a party's conduct at the bargaining
table evidences a real desire to come into agree-
ment ....
And specifically we do not mean to
question in any way the Board's powers to deter-
mine the latter question, drawing inferences from
the conduct of the parties as a whole." N.L.R.B. v.
Insurance Agents' International Union, AFL-CIO
[Prudential Insurance Co.], 361 U.S. 477, 498 (1960).
The Board does, of course, with court sanction,
consider the content of bargaining proposals as part
of its review when making a determination as to
the good faith of parties negotiating a contract. 7
Thus, turning first to the contract proposals
herein, we find it clear as set forth above that Re-
spondent desired strong no-strike and management-
rights sections, coupled with arbitration limited to
matters involving discharge or discipline." Like-
wise, as found by the Administrative Law Judge,
the Union was clearly attempting to "obtain im-
provements either in language or position that it
had not been able to secure in the other two units."
Thus, the Union proposed a weaker management-
rights provision, while Respondent's management-
rights provision was somewhat more detailed as
compared with that contained in the parties' P &
M contract. The "detail" language, it appears, was
taken largely verbatim from another of Respond-
ent's contracts with OCAW. Also, Respondent's
' But see fn. 10, infra.
7See, e.g., Seattle-First National Bank v. N.LR.B., 638 F.2d 1221,
1225-26 (9th Cir. 1981); Pease Company v. N.LR.B., 666 F.2d 1044 (6th
Cir. 1981).
I It also proposed that the parties' arbitration be final and binding.
proposal that arbitration of grievances be limited to
those signed by employees had its counterpart both
in the P & M contract and in then-current con-
tracts between Respondent and OCAW at other lo-
cations. Although the Union apparently objected to
this, we note that its own written proposals utilized
language similar to that of the P & M contract.9
The Union, on its part, sought to eliminate or
reduce the probationary period contained in the ex-
isting P & M agreement, to add to the arbitral
process the discharge of probationary employees,
and to eliminate the existing exemption of matters
concerning Respondent's nationwide benefit plans.
In response to the Union's initial wage proposal,
Respondent asserted that wages for unit employees
were already substantially above area figures for
comparable jobs, as published by the Department
of Labor's Bureau of Labor Statistics. This conten-
tion was not refuted. Further, we note that, in ad-
dition to other areas of agreement already reached
by the parties at the time of the strike, both had
proposed almost the same language, albeit in differ-
ent articles, to wit: that the agreement would con-
stitute the sole and entire agreement, that it ex-
pressed all of the obligations and restrictions im-
posed on each of the parties, that the parties had
had unlimited right and opportunity to make de-
mands and proposals, and that their understanding
after the exercise of such rights was set forth in
their agreement.
Contrary to the Administrative Law Judge, we
conclude that the proposals described above indi-
cate hard bargaining by both sides, each desirous of
improving its position vis-a-vis the other as meas-
ured by the existing P & M contract. Thus, in our
view, the proposals of Respondent do not warrant
a finding of bad faith based upon its having offered
them. Nor do we find that they can be fairly char-
acterized as harsh, vindictive, or otherwise unrea-
sonable. 0 Apart from the contract proposals them-
selves, the conclusion that Respondent met its obli-
gation to bargain in good faith is supported by
other factors which we deem relevant in our con-
sideration of the totality of the circumstances re-
vealed by the record. In this regard, we note that
the parties have maintained an ongoing bargaining
I In defense of its proposed limiting grievance and arbitration proce-
dures, Respondent contended, inter alia, that it was concerned over the
large increase in the number of arbitration proceedings in the P & M unit
following the arrival of union representative Bergeron in the area and his
involvement with Respondent, as well as the potential expense involved
under the two-tiered arbitration procedure and its lack of finality.
I0 While unusually harsh, vindictive, or unreasonable proposals may be
deemed so predictably unacceptable as to warrant the evidentiary conclu-
sion that they have been proffered in bad faith (see, e.g., Pease Company
v. N.LR.B., supra at fn. 4, and cases cited with approval therein), the
proposals at issue in this case do not, in and of themselves, warrant such
a finding.
46
CHEVRON CHEMICAL COMPANY
relationship concerning Respondent's P & M em-
ployees for several years, and that the record dis-
closes no intent by Respondent to undermine that
relationship. Likewise, the record as to the actual
negotiations reflects no refusal by Respondent to
meet and confer, or to provide information. It re-
flects no adamant refusal by Respondent to make
concessions in its bargaining positions, or failure or
refusal to provide justification for its bargaining
posture. Nor does the record suggest that the par-
ties were at an impasse when the strike was called.
Finally, no other unfair labor practices are in-
volved here, and the record reflects no conduct by
Respondent away from the bargaining table which
would suggest that its negotiating positions were
taken in bad faith. 1I
Accordingly, we shall dismiss the complaint in
its entirety.
ORDER
Pursuant to Section 10(c) of the National Labor
Relations Act, as amended, the National Labor Re-
lations Board hereby orders that the complaint
herein be, and it hereby is, dismissed in its entirety.
"' Cf. Safeway Trails Inc., 233 NLRB 1078 (1977), on remand from the
United States Court of Appeals for the District of Columbia Circuit,
which had concluded that an 8(a)(5) violation can be made out based on
other evidence, "even though overt evidence of that bad faith does not
appear at the bargaining table itself."
DECISION
FINDINGS OF FACT
STATEMENT OF THE CASE
WALTER
H.
MALONEY,
JR.,
Administrative
Law
Judge: This case came on for hearing before me at New
Orleans, Louisiana, upon consolidated unfair labor prac-
tice complaints,' issued by the Acting Regional Director
for Region 15, which alleges that the Respondent Chev-
ron Chemical Company2 violated Section 8(aX)(1), (3),
' The principal docket entries in this case are as follows:
Charge filed in Case 1 5-CA-6807 by Oil, Chemical, and Atomic
Workers International Union No. 4447 (herein called Local 4-447)
against Respondent on March 13, 1978; complaint issued against Re-
spondent in Case 15-CA-6807 on August 8, 1978; charge filed by Local
4-447 against Respondent in Case 15-CA-7014 on August 18, 1978; com-
plaint issued in Case 15-CA-7014, together with order consolidating
cases, on September 22, 1978; Respondent's answer filed in Case 15-CA-
6807 on August 21, 1978, and in Case 15-CA-7014 on October 2, 1978;
hearing held before me in New Orleans, Louisiana, on December 18-20,
1978, and on January 3-5 and 22-25, 1979; and briefs filed with me by
the General Counsel and the Respondent on or before April 12, 1979.
' Respondent admits, and I find, that it is a Delaware corporation
which maintains its principal office in San Francisco, California, and a
plant at Belle Chasse, Louisiana. At the Belle Chasse plant it is engaged
in the manufacture and shipment of lubricating oil additives, chemicals,
and other products. During the preceding year, Respondent shipped from
its Belle Chasse, Louisiana, plant directly to points and places outside the
State of Louisiana goods and materials valued in excess of $50,000. Ac-
cordingly, Respondent is an employer engaged in commerce within the
and (5) of the National Labor Relations Act, as amend-
ed. More particularly, the consolidated complaint alleges
that the Respondent refused to bargain collectively with
the International as the collective-bargaining representa-
tive of its office clerical employees, that the refusal to
bargain prompted an unfair labor practice strike, and
that, at the conclusion of the strike, the Respondent re-
fused to grant reinstatement to striking employees who
had made unconditional offers to return to work. The
Respondent insists that it bargained collectively in good
faith with the Union, that the strike which began on Feb-
ruary 27, 1978, was called by the Union in order to en-
force its contract demands, and that the strikers were
economic strikers. Respondent further asserts that it re-
placed most of the strikers, that it was under no duty at
the conclusion of the strike to return strikers to work by
discharging replacements, and that it has offered to
former strikers any available positions in the bargaining
unit and stands ready to do so in the future. Upon these
contentions, the issues herein were joined. 3
I. THE UNFAIR LABOR PRACTICES ALLEGED
Chevron Chemical Company is one of several wholly
owned subsidiaries of the Standard Oil Company of Cal-
lifornia (SOCAL) and is a part of what the Respondent
likes to call the SOCAL family. Since 1943, Respondent
has operated a plant, known as the Oak Point Plant, on a
70-acre tract of land bordering the Mississippi River at
Belle Chasse, Plaquemine Parish, Louisiana, some 15
miles downstream from New Orleans. At the Oak Point
Plant, Respondent manufactures chemicals, principally
oil additives for industrial users, and ships these items di-
rectly to its customers.
In the operation of this plant, Respondent employs just
under 200 production and maintenance employees and a
handful of laboratory technicians. The production and
maintenance employees are represented by the OCAW
International and its Local 4-447, pursuant in part to a
certification issued by the Board in 1967. The lab techni-
cians are also represented by the same unions following a
certification issued in 1968. Contrary to assertions in the
Respondent's brief, the International alone was certified
by the Board after the 1967 and 1968 elections in these
units (Cases 15-RC-3449 and 15-RC-3865), and I take
official notice of such facts. However, OCAW Local 4-
447 was added as an additional bargaining agent in both
units, apparently by agreement of the parties, in order to
facilitate the administration of contracts which have been
entered into over the years. At the time of the events
here in question, contract between the Respondent and
the International and Local 4-447 covering these units
was in effect, running from February 8, 1977, to Febru-
ary 7, 1979. The matters in litigation in this case are the
meaning of Sec. 2(2), (6), and (7) of the Act. Oil, Chemical, and Atomic
Workers International Union (herein called the International or Union)
and Local 4447 of that International are, respectively, labor organiza-
tions within the meaning of Sec. 2(5) of the Act.
S Certain errors in the transcript have been noted and corrected.
Both the General Counsel and the Respondent filed post-trial motions
to correct the transcript. To the extent the corrections sought in those
motions are not addressed in the above-recited corrections [omitted], the
motions of both parties are hereby granted.
47
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
regrettable result of the inability of these parties to con-
clude an agreement covering the remaining represented
employees at Oak Point; namely, clerical employees who
work in the office at that plant.
Following an election held at Oak Point on May 12,
1977, the International was certified as the bargaining
agent for the clerical employees. The first negotiating
overture was a letter directed to the newly installed
plant manager, Paul K. Mulvany, from International
Representative James E. Bergeron, requesting informa-
tion concerning the names, salaries, job classifications,
and job descriptions of unit employees, together with a
list of benefits currently enjoyed and a current seniority
list. With some exceptions, this information was forward-
ed to Bergeron by Mulvany on June 22, 1977. On
August 2, the first of 26 collective-bargaining sessions
was held between these parties. 4 Of this number, 22
meetings were held before the beginning of a strike
which the Union called on February 27, 1978, and which
ended on May 17, 1978. On the union side, the lead ne-
gotiator was Bergeron assisted by J. Kelly Lambert, a p
& m employee and official of Local 4-447, and a negoti-
ating team of o & t unit members. On the Company side,
Mulvany was the chairman of the bargaining committee
but much of the negotiating was handled by Frank N.
Lockwood, a member of the SOCAL Industrial Rela-
tions staff. Lockwood is based at SOCAL's San Francis-
co headquarters and came to New Orleans for the var-
ious sessions. He formulated all of the Respondent's writ-
ten proposals and counterproposals and attended and
spoke at all bargaining sessions.
On August 2, the Union presented an entire contract
proposal except for a wage demand. It is fair to say that
much, if not most, of the language contained in the
Union's proposal was drawn from the existing labora-
tory-production and maintenance contract, although in
some instances it is clear that the Union sought in the
clerical contract to obtain improvements either in lan-
guage or position that it had not been able to secure in
the other two units. The unit here in question was com-
posed of 23 individuals, each of whom has a separate job
title. Under the Respondent's current salary administra-
tion program, except for two switchboard operators, no
two clerical employees have the same title. Respondent
maintains job descriptions for each of these positions
which it ultimately furnished to the Union, although it
stated at some point in the proceedings that it felt the de-
scriptions it had furnished were somewhat out of date. In
the Respondent's salary administration program, each
clerical job title falls into one of six salary classifications
and each salary classification keyed to an established
salary range.5 Each salary range, except the 06 level, had
The parties have stipulated that negotiations took place on the fol-
lowing dates: In 1977-August 2; September 14, 15, and 27; October 12
and 13; November 1, 2, 7, 8, and 28; December 8 and 16; in 1978-Janu-
ary 10, 16, 24, 25, and 26; February 1, 22, 23, and 24; March 2, May 16,
November 30, and December i.
IAs of November 11, 1977, Respondent employed two employees in
its highest clerical wage classification (01), six employees as 02, six em-
ployees as 03, five employees as 04, and four employees as 05. It does not
appear that it actually had any 06 employees on its payroll at the times
here in question.
an entry level, an acceptable performance level (APL),
and a maximum amount. It was the Union's desire to
obtain an agreement on job descriptions before bringing
forth with a wage demand, since it felt that an agreement
on the duties attached to each of the many job titles was
a necessary prerequisite to evaluating what each job
might be worth in monetary terms.
At the second session on September 14, the Respond-
ent submitted to the Union a series of individual propos-
als dealing with specific topics, although it did not
submit any proposal dealing with cost items, with the
sole exception of the right to amend fringe benefit plans
during the contract term. Among the items proposed on
this occasion by the Respondent was recognition only
for the International as a party to the contract and a re-
fusal of any recognition of Local 4-447 as a joint party
in the manner of the p & m contract. Respondent also
proposed that union officials be permitted to enter the
plant only with the prior approval of the plant manager,
that the Union be limited to one steward, and that the
steward should not be permitted to leave his or her work
during working hours. Respondent also proposed a no-
strike provision which inter alia outlawed sympathy
strikes and placed special responsibility upon the union
steward to work during any interruption and to encour-
age employees engaged in a strike to return to work.
The proposal further provided for discharge or discipline
of violators of the no-strike clause, without union opposi-
tion to the Company's selection of employees to be dis-
charged, and would extend this right also to permit the
removal of those who encouraged or abetted a violation
of the no-strike clause. Respondent's proposal also
exempted any punishment exacted for no-strike violations
from the scope of the grievance machinery.
The Respondent maintains a booklet outlining in great
detail several benefit plans which cover not only the Oak
Point plant but also about 38,000 employees, both repre-
sented and unrepresented, who are employed throughout
the SOCAL corporate system. These benefit plans cover
such fringe benefits as hospital and medical care, life in-
surance and survivor benefits, supplementary life insur-
ance, air travel insurance, leaves of absence, employee
stock ownership, insurance for serious job-related acci-
dents, and retirement. On September 14, Respondent
proposed to the Union that it be contractually permitted
to amend any of the provisions of these plans during the
contract term at its option, reserving only the obligation
to inform the Union of any changes it might make.
On the subject of hours of work and overtime Re-
spondent proposed to incorporate its present practice of
paying overtime after 40 hours in 1 week and 8 hours in
1 workday, and of paying a meal allowance of $2.25 for
those who work more than 2 hours of overtime. It
sought to prohibit by contract the pyramiding of over-
time. However, its proposal did not establish any particu-
lar hours of work for clerical employees, leaving the Re-
spondent free to employ them at any hour on any day
for any amount of time.6 Respondent further proposed a
I For many years, Respondent's clerical employees have regularly
worked an 8-hour day, beginning at 7:30 a.m. and quitting at 4 p.m., with
Continued
48
CHEVRON CHEMICAL COMPANY
180-day probationary period, during which time a proba-
tionary employee would have no access to the grievance
machinery. In another of the Respondent's proposals, se-
niority was defined as the total length of an employee's
continuous service with the Standard Oil Company of
California and its subsidiaries. According to further pro-
visions of this proposal, seniority would apply only in
cases of layoff and recall, and then only if, in the Re-
spondent's exclusive judgment, an employee had equal
qualifications, experience, past performance, ability, and
physical fitness as some other employee who was com-
peting for retention or recall.
On the subject of grievances, the Respondent proposed
on September 14 that only an employee could submit a
grievance and that a grievance could relate only to the
failure of the Company to comply with a specific written
provision of the contract. Its proposal to the Union out-
lined a series of employee (but not Union) appeals going
ultimately to the plant manager or his designee, but it
contained no provisions of any kind for arbitration by a
neutral. Plant Manager Mulvany said it was the Re-
spondent's intention to avoid arbitration in the clerical
unit and to preclude the Union from participation in the
grievance machinery because the Union (presumably
Local 4-447) had harassed the Company with the p & m
unit with the grievances which it had filed. The Compa-
ny's September 14 general proposal contained an assort-
ment of items, including provision for a union bulletin
board on plant property but permitting posting thereon
only with the approval of the plant manager, non dis-
crimination, no electioneering or conducting of union
business on working time and no solicitation of urion
memberships during working time. Respondent's man-
agement rights proposal was wide ranging and reserved
to management such exclusive prerogatives as the deter-
mination of starting and quitting times, the number of
hours and shifts to be worked, the establishment and
elimination of job classifications, the modification or
changing of work rules, the assignment of duties to em-
ployees and employees to jobs, the right to hire, demote,
layoff, recall and transfer employees, and the unlimited
right to discharge, discipline, or demote employees. The
Union detailed its objections to these offers. None of the
above-recited proposals met with union acceptance. The
only agreement which was reached on that day related
to pay for jury duty, a union proposal which incorporat-
ed verbatim the provisions of the p & m contract in that
item.
In the session which was held the following day the
Union presented a couple of minor proposals dealing
with bulletin boards and separability of provisions of a
contract. Much of this session was devoted to a company
explanation of why it rejected many of the Union's
August 2 proposals in its submission of counterproposals
on the preceding day. The principal focus of the next
few sessions was upon the details of job descriptions.
The Union had taken the descriptions furnished to them
an unpaid half hour for lunch. The two switchboard operators worked
similar tours of duty, except that their hours are adjusted slightly to pro-
vide coverage of the switchboard during the lunch hour. Respondent's
principal witnesses testified that it has no present plans to revise this
office schedule.
by Mulvany in June, had circulated them to the affected
employees to determine whether, in their view, the Com-
pany's descriptions of their existing work assignment was
accurate. It then brought employee recommendations for
additions and deletions back to the bargaining table for
discussion. Each description which was furnished to the
Union was discussed in minute detail. For the most part,
there was agreement between the parties as to the mat-
ters contained in the Union's suggested additions and
modifications. The Union's principal objection was lev-
eled at such catchall phrases as "performs other duties as
assigned." As noted before, it was the Union's avowed
intention of including descriptions as an addendum to the
contract or at least coming to some agreement as to job
content before proposing monetary ratings for the jobs.
The Respondent was opposed to any inclusion of such
descriptions in the contract, even if the content of var-
ious jobs might be agreed upon as an accurate descrip-
tion of an employee's duties. The reason for the Re-
spondent's position was that such inclusion could limit it
in the type of work which it could assign to an employ-
ee.
In the September 27 meeting, the Union presented a
counterproposal designed to meet the Respondent's ob-
jection concerning hours of work. The Union had origi-
nally proposed that the contract spell out a 7:30-4 stand-
ard workday with an unpaid half hour for lunch. One of
the objections of the Respondent was that such specifica-
tion would prevent it from providing continuous cover-
age of its switchboard throughout the day and particular-
ly during the lunch hour. The Union then proposed that
the workday begin either at 7:30 or 8 a.m. so that one
switchboard operator could report half an hour after the
normal starting time and work a slightly delayed tour of
duty. This proposal was also rejected, with a new expla-
nation that, at a California plant, the Respondent had in-
stalled data processing equipment which required occa-
sional work during different hours and that it required
such flexibility to meet these needs at Oak Point. Re-
spondent's witnesses admitted at the hearing that it had
and has no plan to introduce such a data processing op-
eration at Oak Point.
Much of the time at the September 27 meeting was
spent in discussing the union's position that it be allowed
to post what it wished on the Union bulletin board and
the Company's insistence that nothing be posted without
its advance permission. When no agreement was reached,
they moved on to a discussion of job descriptions, and
specifically the description of the job held by Robert
Naquin, the chairman of the inplant committee for the o
& t unit. This discussion was conducted largely by
Naquin and Sydney Gould, the Company's supervisor of
administrative services. After discussing Naquin's job de-
scription for about an hour, the Company indicated that
it wanted to have particular management personnel pres-
ent to talk about the nitty-gritty of clerical duties and re-
quested an adjournment until they could be available for
that purpose. The next meeting did not take place until
October 12.
On October 12, the Union again requested and the Re-
spondent again refused to agree to recognize Local 4-
49
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
447, along with the International, as the bargaining
agent. Bergeron explained to management representatives
that the International had assigned the Local to be its
agent for purposes of representing the clerical unit but
his explanation was unavailing. The parties discussed
other matters in dispute, such as overtime, safety and
health, management rights, seniority and grievances, and
various other items, arriving at agreement only on the
item dealing with nondiscrimination. The balance of the
session was spent going over individual job descriptions.
The Union made a proposal that a discharged individual
be allowed to see a union representative before leaving
the plant. The proposal was rejected. While management
representatives frequently agreed to the accuracy of pro-
posed descriptions, Lockwood frequently stated that the
Respondent was not necessarily agreeing to the form of
the descriptions being proffered or that job descriptions
should be a part of the contract. Mulvany asked Ber-
geron when the Company might expect a wage demand
from the Union and Bergeron replied that it would be
presented as soon as there was agreement on job descrip-
tions so that the Union could be in a position to rate a
job. The discussion of job descriptions continued for two
more sessions.
The review of job descriptions concluded at the No-
vember I meeting, except for one or two descriptions
which had yet to be furnished to the Union. This meet-
ing was punctuated by an angry exchange between Mul-
vany and Bergeron. Mulvany objected to the circulation
of a so-called underground plant newspaper which held
up to ridicule Charles Brown, a former operations man-
ager. Bergeron said he did not want to hear Mulvany
hollering at a negotiating session, to which Mulvany re-
plied that he would do as he damned well pleased. A
lengthy recess followed.
With respect to job descriptions, Lockwood told union
negotiators when bargaining resumed that the Company
in general agreed that the duties outlined in the job de-
scriptions were the duties which various employees per-
formed, but again stated that his agreement did not con-
stitute agreement that job descriptions should be a part
of a contract or that the descriptions agreed upon should
be the content of the respective jobs. The parties went
on to discuss other items, such as health and safety, a
separability clause, hours of work, checkoff, and paying
union negotiators for time spent in negotiations. During
the course of this session, Bergeron accused company ne-
gotiators of failing to negotiate with a seriousness of pur-
pose and stated that he felt that no further progress
would be made as long as they were meeting in the plant
caucus room. He insisted that they meet on netural
ground and suggested the office of the Federal Media-
tion and Conciliation Service (FMSC) in downtown
New Orleans. The reply of the Respondent was that, if
they met downtown, meetings could not begin before 10
a.m. and would have to conclude about 2:30 or 3 p.m.
because "they had a plant to run." From that day for-
ward, all negotiations took place at the FMCS office in
New Orleans, although not necessarily in the presence
of, or with the assistance of, a Federal mediator.
At the November 2 meeting, the first to be held at the
FMCS office, the parties discussed arbitration, leaves of
absence, bulletin boards, and the accummulation of se-
niority during leave. The Union presented a slightly re-
vised bulletin board proposal which was discussed at
some length. The proposal called for posting notices of
official union business, such as union meetings, union
elections, union social events, and union activities and
programs without advance company approval, if the
notice bore the signature of an authorized union official.
The Respondent rejected the proposal, as written, be-
cause it did not know what the Union meant by the term
"union activities" or what it meant by the expression
"shall be posted." Later, at the November 7 meeting, the
parties agreed upon a bulletin board proposal containing
slightly revised language.
The parties then discussed a union proposal for disas-
ter leave. In the course of the discussion, the Union re-
quested a copy of the Respondent's hurricane procedures
and was promised a copy, although it was never forth-
coming. No agreement was reached on hurricane leave
or leave to participate in a general public practice known
as rallying for repairs which takes place from time to
time in Plaquemine Parish after heavy storms and innun-
dation by Gulf waters. To the Union's insistence that em-
ployees have to have time off to attend to personal prop-
erty during hurricane watches, such as Hurricane Betsy,
Mulvany replied that the Company had adequately pro-
vided for these kinds of emergencies so there was no
need to write a provision covering them into a collec-
tive-bargaining agreement.
The Union asked the Respondent if it had any counter-
proposals concerning job descriptions or any monetary
offers to make. The Respondent said that it did not have
any proposals along these lines. The Respondent then
questioned Bergeron as to when the Union was going to
make an economic proposal. This exchange prompted
Bergeron to voice his disapproval of the manner in
which the Company went about bargaining and to ques-
tion whether it was seriously intent upon negotiating a
contract.
At the November 7 session, the first discussion of
wages and related matters took place. The Respondent
submitted to the Union what it called a job description.
The document, which is in evidence, does not undertake
to describe the duties attached to any proposed or exist-
ing job in the bargaining unit. Instead, the proposal lists
four pay classifications (01 through 04) and lists the var-
ious duties which a person holding that pay classification
would be expected to perform. For instance, it says that
an 04 employee would be expected to perform routine
clerical assignments in one or more of the following
functions-accounts payable, production, planning, ma-
chine operation, and inventory control, with further
itemization under each of these categories. Lockwood
said that it was not the Company's intention that anyone
paid at a certain level would have to do all of the things
listed at that level at any one time. Bergeron asked
Lockwood which jobs in the bargaining unit fell into
which pay categories under the Company's proposal and
pressed the point by asking how an individual employee
could tell from the company proposal which of the jobs
outlined for a particular pay category was his job. Lock-
50
CHEVRON CHEMICAL COMPANY
wood's reply was that the Company would tell them
which work was his. Bergeron asked Lockwood what
the Respondent's "job description" proposal would do to
jobs that were presently assigned. Lockwood said it
would do very little. When asked if the Company intend-
ed to change current job assignments, Lockwood replied
that the Respondent intended to pay employees for what
they are doing but that he knew of no present plans to
change job assignments. The Union also objected that
the Company's written proposal bore no relation to the
lengthy discussion concerning job descriptions, stating
that the company proposal was not in fact a job descrip-
tion or set of descriptions and that he did not think that
the Company was seriously bargaining when it proffered
this document. 7
Without benefit of any agreement on what duties per-
tained to which positions in the bargaining unit, the
Union presented a wage proposal tied to a classification
plan which simply listed existing job titles in the bargain-
ing unit together with the pay levels currently assigned
to those titles. This listing was followed by a wage pro-
posal which called for specified hourly rates containing
four steps (start, 12 months, 24 months, and 36 months)
in each of five pay levels. The parties went on to discuss
union objections to the Company's no-strike proposal, its
limitation of one steward in the unit, the company re-
quest that it be allowed to change its benefit program
unilaterally, the question of adding Local 4-447 as a
party to the contract, and the company proposal to pro-
hibit union representatives from talking to employees
during working hours. No agreement ensued.
On the following day, the Respondent modified its
proposal on steward activity by changing proposed re-
' Bergeron testified as follows as to his conversation with Lockwood
concerning the meaning and intent of the Respondent's job description
proposal. His account was not materially contradicted.
All it listed was Level I and it listed seven categories-accounts
payable, timekeeping, production, inventory control, machine oper-
ation, planning, and miscellaneous, and it didn't define any specific
job. It didn't define any of the jobs that we had been reviewing
during the course of our negotiations or that the company had sub-
mitted to us prior to negotiations and it just defined levels of pay.
Not of pay but just levels of work.... I asked Mr. Lockwood
would he explain what jobs would fall in which category and I read
through it. . . I said "looking at Level I, am I to understand that a
Level I employee would be required to perform all of the duties of
Level 2, 3, and 4." He said, "Yes." I said, "Are you telling me that
any 01 has to perform all of the accounts payable, timekeeping, pro-
duction inventory control, machine operations, planning and miscel-
laneous of every job below it because the job reads that way? He
said, "Well, if you [were] going to Accounts Payable, you would do
all of accounts payable at every level," and I said, "How would a
person know [he was] in accounts payable?" and he said, "They
would be assigned to accounts payable." I said, "Well, would this
person be an accounts payable person and his job duties would re-
flect all of accounts payable?" and he said, "Yes." I said, "Could this
person be assigned to any other job in level I?" and he said, "Yes." I
said, "And when assigned would they know," and he said "They
would do all of these chores if you were in timekeeping. You would
do all the timekeeping functions or are subject to it" . . . and the
same thing would apply to all the jobs, whatever job was on that
level, you would know that job and all the ones below it, as indicat-
ed on that sheet, so how would a person know what his job consist-
ed of and he said, "We assign them and tell them," but the document
did not reflect any of the discussions that we had on job descrip-
tions. This was no definition of jobs as we see it and we objected to
that.
strictions on such activity from working time to working
hours. The Union questioned the fact that stewards
would be prohibited from engaging in grievance discus-
sion during working hours since this was the period of
time when grievances arose led by management. The
Union asked to discuss the Union's proposals of benefits
and vacations. The Company replied that it was not in a
position to respond or to bargain concerning these mat-
ters until it had a reasonable opportunity to review the
Union's economic package. Bergeron pressed Lockwood
as to when this would be and Lockwood's only response
was that the Company wanted a reasonable time. He de-
clined to make any commitment as to when the Compa-
ny would be in a position to discuss these matters.
Name
Duplessis
Jenkins
Belt
Joseph
Knight
Job Title &
Classification
Amount of
Date of
Increase
Increase
Accounting Assistant
$81 per mo.
(03)
Accounts Payable
46 per mo.
Clerk (04)
Receptionist (05)
37 per mo.
Senior Typist (05)
37 per mo.
Mail/Supply Clerk
37 per mo.
(05)
10/1/77
7/1/77
8/22/77
8/17/77
9/22/77
At the November 28 session, Respondent made certain
additional proposals concerning contract language but it
made no proposal concerning wages or other cost items
(aside from the benefit program). The Company submit-
ted a slightly modified general proposal concerning a
union bulletin board and engaging in certain specified
union activities on company premises during working
time, and a proposal on nondiscrimination. The Union
agreed to the bulletin board proposal and the nondis-
crimination item but did not agree to other portions of
the proposed general item. The Company also submitted
a proposal concerning the activities of shop stewards.
The proposal was similar to a previous company propos-
al on this subject, except that it permitted the steward to
attend to grievance matters, with company permission,
during working hours. No agreement was forthcoming
on this proposal. The Union's principal objection to the
company proposal was that it did not permit a steward
to initiate a grievance investigation but permitted such
investigations to commence only upon request of an em-
ployee. With respect to the benefit plan, the Company
advanced a proposal which would commit the Respond-
ent to notify the Union when benefit changes were con-
templated, and which restricted the Company not to
"lower the general level of benefits existing as of the
date of the agreement." Bergeron asked Lockwood who
would make the determination as to whether the general
level of benefits had been lowered by a partiuclar
change. Lockwood said that the Company would make
this determination. 8 The Union also objected to an ele-
" When he was on the stand, Lockwood was questioned by me con-
cerning what was meant by the phrase "general level of benefits." Lock-
wood first replied that the phrase meant the coat to the Company of any
particular item. Later he changed his testimony to asaert that general
Continued
51
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ment of the Company's proposal which would reserve to
the Company the exclusive right to establish service
dates for the measurement of certain provisions in the
benefit plan which are based upon longevity. The parties
then went on to discuss certain elements of the Compa-
ny's vacation pay proposal. Certain language relating to
vacations was agreed upon but the Company said that it
was not in a position to propose or agree to the number
of paid holidays to be observed, presumably because this
was a cost item.
The Company presented a slightly modified no-strike
proposal, deleting certain language which the Union
found objectionable in an earlier proposal. The Union
still objected to the provision making those who "aid
and abet" a no-strike clause violation subject to dis-
charge, claiming that the language was vague and could
be used to harass people who were not striking. Howev-
er, the essence of the Union's objection to the no-strike
clause was tied to the unwillingness of the Respondent to
agree to arbitration which was as broad as the Union's
no-strike commitment. In its September
14 proposal,
which was, as of November 28, the latest company posi-
tion on the subject of arbitration, the Respondent had re-
fused to agree to any arbitration. It later modified this
position to agree to arbitration for matters of discipline
and discharge but not for violations of contract provi-
sions. At the conclusion of this session, the parties agreed
to a separability clause for the contract.
On December 8, the Respondent made its first eco-
nomic proposals. It also proposed a specific number of
paid holidays, namely, the holidays which were current-
ly being observed. Respondent then proposed for the top
four classifications a merit salary range with three
levels-entry, acceptable level of performance (APL),
and maximum. For the lower grades, it contained pro-
gression steps based essentially on time in grade. Howev-
er, the salary plan was not accompanied by a classifica-
tion plan, so there was no way to tell from the Company
proposal which jobs in the bargaining unit fell into
which salary ranges. Presumably the salary plan was tied
to the wage level proposal which was presented at an
earlier session. However, the terms of the December 8
proposal, entitled "Salary rates and classifications," did
not make reference to it. The Union rejected the compa-
ny proposal because it said that it did not wish to retain
any elements of the merit system and the Company re-
jected the Union's earlier proposal that wages be com-
puted on an hourly basis.
The parties did agree upon one clause in the Compa-
ny's vacation proposal, namely, the number of weeks of
vacation to be given to employees in various service cat-
egories. The proposal in question was essentially the
same as the length of vacation for service classifications
that may be found in the p & m contract and in the past
practice of the parties in this unit. However, the parties
were unable to agree that a 2-week vacation meant 14
consecutive days or that 3 weeks meant 21 consecutive
days, as specified in the p & m contract. Respondent told
Kelly Lambert, who was the Union's chief negotiator for
level of benefits meant the value of benefits which the Company was ob-
ligated to pay to an employee, irrespective of the cost of the Company's
contribution.
this session, that the Company wished to retain the right
to split vacations into something less than a full week at
a time. The parties also discussed no-strike proposals.
Lambert told company negotiators that the Union could
not give up the right to strike unless it could take to ar-
bitration company violations of all contract terms.
The December 16 session was largely inconclusive.
The parties agreed on the number of paid holidays to be
observed and upon minor clauses in the union representa-
tive and leave-of-absence sections, but spent most of their
time discussing matters over which there was manifestly
no agreement. At this meeting, the Respondent proposed
for the first time to allow grievances relating to dis-
charge and discipline to go to arbitration. It also pro-
posed a no-strike clause that would permit the Respond-
ent, but not the Union, to go to immediate arbitration
within 48 hours over any discharge effectuated for al-
leged violations of the no-strike clause. The proposal also
provided for procedural waivers which would permit an
on-the-spot decision by an arbitrator. The Union voiced
its previous objection to any limited arbitration provision
which was coupled with broad no-strike clause proposal,
saying that such a proposal, taken in tandem with the
grievance and arbitration proposals, would not permit it
to police the contract.
The Company reoffered its December 8 merit range
proposal with an additional sweetener, namely, a provi-
sion calling for a lump sum bonus for all employees in
the unit on the payroll on the date following the day of
the agreement in the amount of 4 percent of their base
salary. The Union replied that it opposed the merit
system because it had been applied in a discriminatory
manner in the past and because the rates set forth in the
company proposal would result in raises for only a very
few members of the bargaining unit.
The Union stated, in rejecting the no-strike-immediate-
arbitration provision, that it amounted to a step back-
ward in negotiations and that the Company was not bar-
gaining in good faith by presenting such a proposal. It
also voiced disagreement with a seniority proposal which
defined seniority as the length of service with any com-
pany in the SOCAL corporate system and which limited
the application of seniority to cases of layoffs and rehir-
ings and only when, in the exclusive judgment of the
Company, other enumerated factors were equal.
After the Christmas holidays, the parties met again on
January 10 but little was accomplished. After a recap of
the various positions of the parties, Mediator Demcheck
analyzed the situation to be that the parties were apart
on management rights, strike and lockout provisions,
grievance and arbitration, seniority, the merit system,
and wages. In short, they were far apart on many if not
most basic issues.
On January 16, the Union came to the bargaining table
with a substantially modified wage offer. It felt the basic
area of comparison for wages was what was being paid
in the industry throughout the United States, while the
Respondent argued that the proper yardstick to apply
consisted of going rates in the Metropolitan New Orleans
area. Respondent stated that it had a Bureau of Labor
Statistics (BLS) area survey which substantiated its posi-
52
CHEVRON CHEMICAL COMPANY
tion on wages. The Union continued to propose a time
progression system, containing a starting hourly rate in
each of the six wage classifications, with increases on the
next three anniversary dates. During this session, the Re-
spondent proposed to implement in the o & t unit a sys-
temwide increase in medical benefits which amounted to
a $4 increase its contribution to individual medical cov-
erage and a $10 increase in family coverage. The Union
agreed to this increase at the following session.
The Union submitted a management's rights proposal
and a revised safety and health proposal. Its original
safety and health proposal called for a representative
from the o & t unit to become a member of the existing
p & m safety and health committee. When the Respond-
ent objected to this proposal, the Union countered with a
suggestion that a separate safety and health committee be
established just for the o & t unit. The revised proposal
also found disfavor with company negotiators and was
rejected at the next meeting.
On January 24, the parties conducted their 16th nego-
tiating session. The parties began this session by discuss-
ing both the union and company no-strike no-lockout
proposals and the question of grievances and arbitration.
Mulvany said he was not going to give the Union the
right to file girevances because they had been filing too
many, presumably in the p & m unit. He added that the
Company simply could not handle the volume of griev-
ances it might anticipate in the clerical unit if the Union
were permitted to file. The Union's response to Mulvany
was that many grievances were being filed in the p & m
unit because there were many contract violations on the
part of the Respondent. This exchange led nowhere in
terms of a contract agreement.
The major item put forth at this meeting was a revised
company wage proposal. It incorporated many of the
features of previous company proposals relating to merit
ranges and a lump sum bonus, but it also proposed spe-
cific individual rates for each of the 23 named members
of the bargaining unit. These new individual rates would
mean that, on the average, the members of bargaining
unit would receive raises averaging slightly more than 4
percent over their current regular earnings. Increases in
excess of the stated amount would then depend upon an
employee's evaluation by his supervisor under the merit
system. The Union rejected any proposal confering upon
the Respondent the right to raise wages under a merit
system, claiming that the implementation of this system
had been abused and that such abuses would not, under
the company proposal, be subject to any grievance and
arbitration machinery. A further objection was voiced,
namely, that a promotion from one pay level to another
pay level might result in a cut in pay since an employee
might be making, under the merit system, more in a
lower pay level than the entry level at the next higher
step. Lockwood's reply was that this would never
happen because the Company did not promote people in
order to pay them less. The Company charged that a
breakdown
in bargaining had occurred because the
Union would not agree to the merit pay system which
was proposed. Lambert's reply was that the Union was
not interested in a sweetheart contract. The Respondent
also rejected a union proposal setting hours of work,
saying that it needed the flexibility to start office em-
ployees at any hour and citing again a three-shift com-
puter operation at one of its California plants as an exam-
ple of the operating necessity which supported its posi-
tion.
Toward the end of the meeting, Bergeron asked Lock-
wood what the Company had in mind concerning the
duration of any proposed contract. Lockwood said that
the Company had nothing definite in mind but that it
normally negotiated 2-year agreements. Bergeron noted
that the Company's wage proposal did not call for any
specified increases during the contract term and inquired
whether the Company was suggesting a wage increase
for a I-year term. Lockwood said that company negotia-
tors would sleep on this question and get back to the
Union.
On the next day, the Respondent proposed a 2-year
agreement with a wage reopener at the end of the first
year. However, the no-strike provision and the limita-
tions on the scope of grievances and arbitration would
prohibit the Union from applying economic force or re-
sorting to any contract machinery to enforce any wage
demand it might make during the wage reopener. After
this proposal was made, Bergeron replied that he felt
that calling upon the Union to agree to a wage reopener
that it could not enforce by strike action was an insult to
the Union. He informed the Company that the Union
would not agree to a 2-year proposal which either did
not have an increase for the second year or a strikeable
reopener at the end of the first year. This meeting lasted
only about 40 minutes and concluded shortly before
noon.
The parties met again on January 26. At this meeting,
Mulvany presented the Union with a complete contract
proposal which it was willing to sign. The parties went
through the company proposal item by item. The con-
tract package advanced by the Company contained no
matters not previously discussed except that the Compa-
ny did agree for the first time to include discipline of
employees as an arbitrable matter and also agreed to in-
corporate into the contract its current practice of paying
transportation home for clerical employees who were
called upon to work overtime. The discussion on both
sides, contained in detail in the record, merely reiterated
previous arguments and objections which had been
voiced before when these items had been discussed as
separate proposals.
The parties met again on February I and met separate-
ly with a Federal mediator on February 22, but to no
avail. During the afternoon session at the FMCS office
on February 22, Bergeron told Mulvany that he did not
appreciate the manner in which Mulvany had talked to
Naquin in a discussion which had taken place at the
plant. A few days earlier, Mulvany had called Naquin
into his office and complained to Naquin about the tenor
of certain language on a leaflet which had appeared at
the plant. The leaflet urged a strike and made some dis-
paraging references to Mulvany. According to the infor-
mation presented to Bergeron, Naquin agreed with Mul-
vany that the language in question was out of line but
disclaimed any union responsibility for it, whereupon
53
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Mulvany reportedly threw Naquin out of his office.
When Bergeron attempted to bring this to the attention
of company negotiators, Lockwood promptly advised
Mulvany not to answer any questions and said, "Let's
get out of here. If they want, they can talk to us at the
plant." Bergeron said he would not talk to them about
this matter at the plant because Mulvany did not want
Naquin in his office, whereupon the company negotiators
got up and left. As they were leaving the room, Ber-
geron said he would not have the Union's group chair-
man spoken to as Mulvany had spoken to Naquin.
On February 23, the Union presented an entire con-
tract proposal containing its previous individual de-
mands, providing for retroactivity of the proposed wage
increase and an expiration date of February 7, 1979. The
proposal also provided for shift starting and ending times
and shift differentials for afternoon and late evening
shifts. After reviewing the Union's package, the Re-
spondent said that it would have an answer the following
day.
On February 24, the Respondent's answer was that it
was willing to sign the package it presented to the Union
on January 26 but viewed the Union's proposal as a step
backward because of the shift differential proposal. Re-
spondent objected to the shift differential and claimed it
to be an introduction of a new demand in bargaining.
The Union answered by saying that the shift differential
was introduced only to accommodate the Respondent's
earlier objection to the Union's first hours-of-work pro-
posal, namely, that it needed flexibility to direct clerical
employees to come to work at other than normal starting
hours. The latest union proposal permitted shift work but
attached to that concession the requirement for a shift
differential. They again discussed the question of a possi-
ble reduction in pay after a promotion because minimum
entry rates in higher classifications were sometimes
lower than the higher ranges of the lower classifications.
Lockwood reiterated his previous position that such an
eventuality would not happen. They also discussed the
proposal for a relief rate for employees temporarily as-
signed to positions in a higher classification than the one
they held. Bergeron asked Lockwood how a determina-
tion would be made that an employee was in fact work-
ing in a higher classification for a substantial period of
time. Lockwood replied that the Company would make
that determination. They also discussed the lump sum or
bonus provision in the Company's proposal and to what
extent, if any, it would be retroactive.
At the conclusion of the formal negotiating session,
Mediator Demcheck met privately with Lockwood and
Bergeron. During this meeting, Bergeron reiterated that
the Union had to have an effective means of policing the
contract. Either it had to have the right to strike over
contract violations or it would have to have an agree-
ment to arbitrate grievances by a neutral with respect to
any contract violation. The Respondent refused to agree
to general arbitration. Lockwood said that the Company
was insistent upon retaining a merit pay system and
asked the Union if it had any counterproposals to the
Company's last wage offer. Bergeron stated that the
Union was working on a proposal which included a
merit aspect to it but he doubted that he could have it
ready that evening. Lockwood then suggested that he
have it ready by the time the next meeting took place
and suggested March 2 as a date for their next meeting.
Bergeron stated he was agreeable to meeting on March 2
but informed Lockwood that he could not guarantee that
work stoppage would not take place in the interim.
Lockwood, whose office is in San Francisco, replied that
he had a plane to catch. This was the last meeting of the
parties before the strike. As of this time the parties had
reached agreement only on holiday pay, vacations, bulle-
tin boards, jury duty, increases in the medical plan, and
actual language on certain minor matters.
In the late afternoon of February 26, bargaining unit
members met at the OCAW Hall in Marrero, Louisiana.
Of the 23 members,
15 attended. The meeting was
chaired by Naquin. Naquin brought to the attention of
the membership the company proposal of January 26. He
told the assemblage of the lack of progress in negotia-
tions and questioned the seriousness of the Company in
trying to reach an agreement. He went through the com-
pany and union proposals item by item and outlined the
positions of the parties on particular items. One of the
members inquired whether unfair labor practice charges
were going to be filed against the Company. Bergeron,
who was present at the meeting, replied that the matter
was being discussed with the Union's attorney. An in-
quiry was made as to the position of the negotiating
committee. Naquin replied that his own personal feeling
was that the Company was not bargaining in good faith
and that the membership had no recourse but to strike.
Other members of the committee expressed the same
opinions. A strike vote was taken by secret ballot and
carried by a vote of 14 to 1.
The strike began on February 27 and was supported
by 15 of the 23 members of the unit. Pickets began to
patrol the two principal plant gates. Additional negotia-
tion sessions took place on March 2 and May 16 but they
were inconclusive. During this period of time, the Re-
spondent began to hire replacements. On May 17, the
Union terminated the strike and withdrew its pickets.
Both the Union and the strikers tendered written offers
to return to work. Shortly after the tender, Mulvany in-
formed the Union that all but one position in the bargain-
ing unit had been filled by permanent replacements. He
offered a job to former striker Capdeville and Capdeville
accepted. In mid-June, the Respondent offered another
job to former striker Perez and Perez accepted. At the
time of the hearing, some 13 strikers had not returned.
No issue was raised either to the bona fide nature of the
replacements or to the fact that the offers to return,
which were made by strikers on May 17, were uncondi-
tional.
Following the cessation of the strike, negotiation ses-
sions took place on November 30 and December 1, 1978,
but outstanding issues between the parties were not re-
solved. At the November 30 session, the Respondent
modified its previous positions in that it would agree to
recognize two stewards rather than one, would agree to
the Union's vacation selection language, would grant to
the Union as well as to employees the right to initiate
grievances, would grant greater rights to union repre-
54
CHEVRON CHEMICAL COMPANY
sentatives to access to the plant, and would accord to a
discharged employee the right to consult a union repre-
sentative before leaving the plant. These further conces-
sions did not result in a contract.
II. ANALYSIS AND CONCLUSIONS
A. General Considerations
Section 8(d) of the Act requires both employers and
labor organizations, when they engage in collective bar-
gaining, "to meet at reasonable times and confer in good
faith with respect to wages, hours, and other terms and
conditions of employment, or the negotiation of an
agreement or any question arising thereunder, and the
execution of a written contract incorporating any agree-
ment reached if requested by either party, but such obli-
gation does not compel either party to agree to a propos-
al or require the making of a concession." It has often
been said that the fact that an employer meets and con-
fers with a labor organization without accepting any or
all of the demands made upon it does not, in and of
itself, indicate a lack of good faith on its part. The con-
verse of the proposition is equally true. The fact that any
employer meets with a labor organization and grants cer-
tain concessions in the course of negotiations does not, in
and of itself, establish the existence of good faith. As the
Fifth Circuit put it in Herman Sausage:9
In approaching it from this vantage, one must rec-
ognize as well that bad faith is prohibited though
done with sophistication and finesse. Consequently,
to sit at a bargaining table, or to sit almost forever,
or to make concessions here and there, could be the
very means by which to conceal a purposeful strat-
egy to make bargaining futile or fail. Hence, we
have said in more colorful language it takes more
than mere "surface bargaining," or "shadowboxing
to a draw," or "giving the Union a runaround while
purporting to be meeting with the Union for pur-
pose of collective bargaining."
According to the General Counsel's theory of this
case, the Respondent is not charged with any per se vio-
lations of Section 8(a)(5) of the Act, although, as dis-
cussed later, at least two such violations clearly appear
from the evidence contained in a lengthy and ponderous
record. '0 The General Counsel argues that the Respond-
ent was guilty of "surface bargaining," a term first
coined by the Fifth Circuit in the Whittier Mills 1" case
to describe the lack of overall subjective good faith in
carrying out a bargaining obligation. The requirement
good faith in bargaining has been said to demand "an
open and fair mind, and a sincere purpose to find agree-
ment."' 2 Parties are "required to do something more
'NLR.B. v. Herman Sausage Company, Inc., 275 F.2d 229, 232 (1960).
'o It is well settled that the Board has the right to make findings of
violations which were fully litigated at the hearing, even though the pre-
cise violations were not alleged in the complaint. Engineers & Fabricators
Inc. v. N.LR.B., 376 F.2d 482 (5th Cir. 1967); N.LR.B. v. Sunnyland
Packing Co, 557 F.2d 1157 (5th Cir. 1977).
"N.LR.B. v. Whittier Mills Ca, 111 F.2d 474, 478 (5th Cir. 1940).
" N.LR.B. v. Globe Cotton Mills, 103 F.2d 91, 94 (5th Cir. 1939).
than attend purely formal meetings constituting no more
than a mere pretense at negotiations."' 3 Of necessity, the
standard of good faith in collective bargaining can have
meaning only in its application to the particular facts of a
particular case. 14 While the Board has often been remind-
ed that it has no authority to pass judgment upon the
adequacy or the propriety of an offer or concession, the
Board is not precluded from examining the substantive
proposals advanced by the parties in order to determine
the existence vel non of good faith in a collective-bar-
gaining effort. ' 5
While the requirement of good faith is perforce an
elastic standard, there have emerged over the years, in
the many cases in which this standard has been litigated,
certain recurring fact patterns and statements of principle
which provide more precise guidelines. One clear indicia
of bad faith on the part of an employer is the exercise of
proposing to a union an offer or set of offers which are
predictably unacceptable and adhering rigidly to such
proposals. Sweeney d Company, Inc. v. N.LR.B., 437
F.2d 1127, 1135 (5th Cir. 1971). A contract proposal or
set of proposals which would leave a union and its mem-
bership worse off than they would be if they continued
to work without a contract is generally deemed to be a
rejection of the collective-bargaining principle and solid
evidence of bad faith. Romo Paper Products Co., 220
NLRB 519 (1975). The use of delaying tactics is an
aspect of bad faith in the bargaining process, A. H. Belo
Corporation (WFAA-TV) v. N.LR.B., 411 F.2d 959 (5th
Cir. 1969), as is the granting of wage increases to bar-
gaining unit members during the course of negotiations
without first notifying the Union and bargaining with it
concerning the increases. A. H. Belo Corporation v.
N.LR.B., supra; N.LR.B. v. May Aluminum, Inc., 398
F.2d 47 (5th Cir. 1968).
A lead case in the area of surface bargaining is "M"
System. Inc., 129 NLRB 527 (1960), in which, in the
course of a long stretch of fruitless bargaining, manage-
ment rigidly insisted upon a broad no-strike clause, a
broad management rights clause, and unilateral authority
to grant wage increases, promote, discipline, and dis-
charge employees, and make changes in work rules. The
Board held that adamant insistence on this combination
of proposals was antithetical to good-faith bargaining,
because it would leave the union worse off than it would
be without a contract by permitting unilateral action by
an employer in areas which are normally the subject of
collective bargaining without giving the union anything
in return therefor. The Board reasoned that, without a
contract, a union could at least strike at any time either
to enforce demands or to protest company actions, but
with a contract, as envisioned by such employer propos-
als, it would be shorn of this power while the employer
could act unilaterally in vast areas of labor relations
without fear of a job action.
i' N.LR.B. v. Pine Manor Nursing Home. Inc., 578 F.2d 575, 576 (5th
Cir. 1978).
" N.LR.B. v. American National Insurance Company, 343 U.S. 395
(1952).
]" N.LR.B. v. Strauss and Son. Inc, 536 F.2d 60 (5th Cir. 1976).
55
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Variations of this theme, with similar or only slightly
differing fact patterns, have appeared in many subsequent
Board cases and have been the basis for a finding that an
employer was guilty of bad-faith bargaining. Kayser-Roth
Hosiery Company, Inc., 179 NLRB 999 (1969); I.T.T.
Henze Valve Service, Controls and Instruments Division,
166 NLRB 592 (1967); East Texas Steel Castings Compa-
ny, Inc., 154 NLRB 1080 (1965); Betra Manufacturing
Company, 233 NLRB 1126 (1977); San Isabel Electric
Services Inc., 225 NLRB 1073 (1976) (1977); Florida Ma-
chine & Foundry Company, 174 NLRB 1156 (1969), and
190 NLRB 563 (1971); Stuart Radiator Core Manufactur-
ing Co., 173 NLRB 125 (1968); Electri-Flex Company, 238
NLRB 713 (1978). An assessment of bad faith in bargain-
ing, based upon rigid management efforts to retain final
unilateral control by contract over periodic wage in-
creases, employee qualifications, work rules, discipline,
working hours, and related terms and conditions of em-
ployment, was made by the Fifth Circuit in N.L.R.B. v.
Johnson Manufacturing Company of Lubbock, 458 F.2d
453 (5th Cir. 1972).
In examining the factors which go to make up a find-
ing of bad faith, the whole may be greater than the sum
of its parts. In a concurring opinion in N.L.R.B. v. Insur-
ance Agents International Union, AFL-CIO, 361 U.S. 477,
505-506 (1960), Mr. Justice Frankfurter stated:
· . . the significance of conduct, itself apparently in-
nocent and evidently insufficient to sustain a finding
of an unfair labor practice, "may be altered by im-
ponderable subleties at work ....
" Activities in
isolation may be wholly innocent, lawful and "pro-
tected" by the Act, but that ought not to bar the
Board from finding, if the record justifies it, that the
isolated parts "are bound together as parts of a
single plan [to frustrate agreement]. The plan may
make the parts unlawful."
Indeed it would be an infringement upon the Universal
Camera rule' s to pick apart a series of negotiating ses-
sions and view every component in isolation to deter-
mine whether good faith or bad faith was present in each
element considered separately. Accordingly, the Board
looks to the totality of the conduct of the parties to de-
termine whether they have fulfilled their obligation to
bargain in good faith. Weather Tee Corporation, 238
NLRB 1535 (1978)
B. The Respondent's September 14 Proposals
The set of proposals given to the Union by Respond-
ent's negotiators on September 14 excluded from partici-
pation in contract negotiation the OCAW Local which
was established to deal with the Respondent regularly
over a period of 10 years in contract negotiations and ad-
ministration of the p & m contract on the basis that, in
the o & t unit (as in the p & m unit), the International
but not the local was the entity certified by the Board. ?
" Universal Camera Corporation v. N.LR.B., 340 U.S. 474 (1951).
7 In N.LR.B. v. Wooster Division of Borg-Warner, 356 U.S. 342 (1958),
the Supreme Court said that the substitution of an uncertified local for a
certified international was a lawful but nonmandatory subject of bargain-
ing. A party may request such a substitution but it may not insist to im-
Respondent sought to exclude from the plant the proper
bargaining representative, however designated, unless in
each instance he came to the plant and permission was
sought and obtained to enter the premises, although the
same individual had a contract right, enforceable under
the grievance machinery, to enter the same plant prem-
ises during daylight hours for contract administration in
the p & m unit. Respondent sought all-embracing no-
strike protection, even to the punishment of persons who
aided and abetted strikers but who did not personally
engage in strike action during the contract term. It
sought the right to increase or reduce at will all medical,
hospital, pension, stock option, and other benefits con-
tained in its companywide benefit plan. It sought com-
plete authority to assign starting and quitting times at
will, even though it had followed a uniform and long-
standing practice of observing a regular 7:30 a.m. to 4
p.m. workday in its office operation. It sought a defini-
tion of seniority which would confer whatever seniority
rights which might exist in this bargaining unit upon any
employee employed any where in the SOCAL corporate
system,"s sought to restrict seniority to layoff and recall
situations, and sought the unchallengeable right to deter-
mine when and whether in a layoff or recall situation se-
niority might be applied. It sought the unlimited and un-
challengeable right to promote and demote employees
and to exclude the Union from meaningful participation
in the grievance machinery, either through the initiation
of grievances or assistance to employee grievants who
were pressing their grievances during working hours,
and it offered nothing concerning the resolution of griev-
ances by arbitration by a neutral. It also sought complete
control over the use of union bulletin boards by the
Union and offered
an all-encompassing management
rights proposal.
In short, the Respondent was asking the Union to
cease functioning as a bargaining agent in this unit and,
in effect, to disappear from the bargaining unit during
the contract term. It sought the contract right to deter-
mine almost every aspect of wages, hours, and working
conditions as well as an assurance by the Union that it
would not interfere with the effectuation of its determi-
nations by striking during the contract term. The net
effect of Company proposals was that the Union was
also asked to give up a statutory right under the Wein-
garten 9 case to represent employees at disciplinary inter-
passe on it. In this case, the International designated Local 4-447 as its
agent to assist in the administration of the o & t contract, as it did in the
p & m unit. Lockwood was asked why the Respondent objected to the
addition of Local 4-447 as a party, especially in light of a later company
proposal designating the treasurer of Local 4-447 as the recipient of dues
that might be checked off. Lockwood replied that it really did not make
any difference to the Respondent whether the Local was or was not a
party. Assuming, without deciding, that Borg-Warner applies to the
Union's demand in this case, the fact that the Respondent would seize
upon a minor element in negotiations which really did not mean anything
substantively to it to refuse an overall agreement is clearly the expression
of a mind set bent on keeping a contract from coming into existence.
There is nothing about bad faith which requires it to manifest itself only
in reference to mandatory subjects of bargaining.
"t There are about 125 clerical employees working elsewhere in Louisi-
ana for various components of the SOCAL family. Lockwood said he
was trying to keep the door open for hiring some of these people at Oak
Point in the event of layoffs in their offices.
" N.LR.B. v. J. Weingarten, Inc., 420 U.S. 251 (1975).
56
CHEVRON CHEMICAL COMPANY
views. In short, Respondent was seeking everything and
offering little. The Union would be better off without a
contract at all than to have agreed to the proposals ad-
vanced by the Company on this date because it would at
least have preserved its statutory right to strike. Under
cited Board and court cases, such offers amount to a re-
jection of the collective-bargaining principle and a clear
indication that the Respondent was playing games at the
bargaining table. The proposals were predictably unac-
ceptable. The fact that the Respondent modified a few of
them during the next 20 bargaining sessions says nothing
about the lack of good faith which it demonstrated on
September 14 and in no way served to cure the bad faith
it manifested at that time. Federal Mogul Corporation, 212
NLRB 950 (1974). The best that could be said for the
Respondent's action on September 14 in submitting this
set of proposals is that it was pursuing a strategy of
simply marking time. Such a strategy is also a solid indi-
cator of a frivilous purpose.
C. Wasting Time
There is no way to classify or catalogue all of the
ways in which a dilentante negotiator can waste time
and there is no point in doing so, since calculated delay,
however accomplished, is an aspect of bad-faith bargain-
ing. When the Union insisted on meeting on neutral
ground after it appeared that several meetings at the
plant were going nowhere, the Respondent's reply was
that it would have to come late and leave early because
it had a plant to run. On several occasions, Respondent's
negotiators did not show up at the FMCS office for
scheduled
negotiations until
considerably
after
the
agreed-upon starting time. The Union was certified in
May and bargaining began in early August. However,
the Respondent did not have a wage offer to present
until December 8. Its standard excuse was that it was
waiting for the Union to make an offer first. However,
after the Union made a wage offer, the Respondent did
not make a counteroffer or any other response for more
than a month. If this were national bargaining involving
a multitude of bargaining units, many thousands of em-
ployees and hundreds of job classifications, there might
be a shadow of an excuse for such a delay, but we are
dealing here with a small unit of 23 clerical employees
who were already covered by a well-developed and
highly structured salary program which the Union
sought to incorporate in large measure into the body of a
contract. The Union's demands mirrored the classifica-
tion and salary plan which had been in effect in the o & t
unit for many years, albeit with higher rates than those
in existence. The Company's response was not only a
disagreement over the amounts of an increase-some-
thing which is commonplace and to be expected in col-
lective bargaining-but included an attempt to avoid a
contractual commitment even on the bases of its own ex-
isting classification plan. Not only was the Respondent
unwilling to commit itself to an agreement as to the ele-
ments of individual job descriptions,2" nowhere in its
m0 The Respondent objected to a contractual agreement that existing
jobs had attached to them existing duties, on the basis that such a com-
mitment would prohibit it from assigning other duties to the incumbent in
that position. This contention is nonsense. Both Respondent's manage-
salary proposals was there a willingness even to stipulate
that existing job titles, even when unaccompanied by de-
tailed descriptions, should fall into existing salary classifi-
cations; i.e., that a head accounting assistant is an 01 or
that an engineering clerk is an 03. Yet many tedious and
painstaking sessions took place which were aimed at ar-
riving at some agreement over job content so that wage
offers from either side would have some meaning. In a
few instances, the Respondent dallied many months in
submitting requested job classifications. Gould's excuse
on one occasion was that he had been carrying the de-
scription around with him, had just forgotten to give it
to the Union, and wished that the Union had just asked
him again for it. In short, the Union's delay in presenting
an intelligent wage demand, which was the Company's
excuse for not coming forth with an economic package
of its own, is directly attributable to the Respondent's fri-
vilousness of purpose in consuming many weeks discuss-
ing job classifications which would have no meaning
even if agreement were reached on those classifications.
On February 24, at a critical juncture in negotiations,
when strike threats were in the air and the Union was
working on a salary demand which would attempt to ac-
commodate the Respondent's insistence on its merit
system, Lockwood told the Union to wait until a sched-
uled March 2 session to present the proposal if it could
not come back immediately with its offer. When Ber-
geron replied that he could not guarantee that a strike
would not take place in the interim, Lockwood's only re-
sponse was that he had a plane to catch. Presumably he
caught it.
21
This is the kind of dallying and fooling
around which is the hallmark of bad faith and the pur-
poseful avoidance of contractual commitments. Lock-
wood's cavalier attitude toward a strike threat suggests
clearly that he welcomed a strike and that such a job
action by the Union was what he had been hoping for all
along, so that the Respondent could proceed to do what
ment's rights proposal and the Union's proposal would permit work as-
signments outside a job description. The difference is that, under the
Union's proposal, whenever the Respondent might seek to get more from
an employee than it bargained for, it would have to pay more. By its un-
willingness to commit itself that any specified wage was appropriate to a
particular job content, Respondent was attempting to create a situation in
which it could effectively raise or lower compensation simply by keeping
the salary of an individual at the same rate but adjusting what he was
being paid to do. Respondent's rigid insistence in reserving to itself
during the contract term the setting of wages of its employees is, in con-
junction with other aspects of its bargaining position, an indication of its
unwillingness to negotiate a contractual commitment on the subject of
wages.
2t Lockwood's assessment of his own role in the Respondent's bargain-
ing team and Mulvany's description are not entirely consistent. Lock-
wood formulated all company proposals and counterproposals and at-
tended every meeting. As plant manager, Mulvany was technically the
head of the Company's bargaining team while Lockwood acted in an ad-
visory capacity. Lockwood said that Mulvany was empowed to enter an
agreement, even over the objection of the SOCAL Labor Relations Sec-
tion in San Francisco. Mulvany said his authority was broad but not un-
limited. With respect to local issues, he had the last word but with re-
spect to cost items, he could not act beyond the perimeter of authority
given to him by his superiors in San Francisco. Plainly, Lockwood was
an indispensable party to any final agreement and his absence from the
New Orleans area at this key moment meant that no agreement heading
off a strike could be arrived at, regardless of what Ith-hour concessions
might be made by the Union.
57
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
in fact it did do after the strike commenced; namely,
clean house.
D. The Need for Flexibility
Respondent used a common justification in discussing
various contract proposals designed to reserve to it com-
plete power to do as it wished in establishing various as-
pects of wages, hours, and terms and conditions of em-
ployment during the contract term. It needed flexibility.
As used in the context of this case and of the events
which occurred herein, the term "flexibility" means and
can mean nothing other than "power." When the Re-
spondent said that it needed the "flexibility" to set office
hours, to grant merit wage increases, or to make work
rules unilaterally, it was simply employing a euphemism.
What it was really saying is that it wished to retain the
power to do these things because it wished to retain the
power to do them. Its justification was merely a circular
expression or description of its intial position, not an ex-
planation or rationalization thereof. Many of the Union's
proposals for the o & t employees were drawn from
agreements it had already concluded with the Respond-
ent in the production unit, a much larger round-the-clock
operation whose members were engaged in the actual
production of oil additives and other chemicals. There is
no evidence herein that union proposals, designed to
extend to the office staff contractual undertakings which
had become standard practice in the operating unit, had
unduly inhibited the Respondent's basic operation. Flexi-
bility, however defined, is of far greater importance in an
operating unit than in a clerical unit, which exists simply
to process the paperwork generated by a production ac-
tivity. Many of the matters which the Union sought to
include in the contract were actual and longstanding
practices in the o & t unit itself as well as in the p & m
unit. In repeating the catchword "flexibility," both at the
bargaining sessions and at the hearing in this case, the
Respondent failed utterly to give any meaningful content
to the word as applied to its bargaining positions. More
particularly, it failed to explain why certain practices af-
forded it sufficient flexibility to operate the production
end of its plant but would unduly restrict it in the con-
duct of its office operations. It has long been held that
good-faith bargaining requires honest claims and that
fake or transparently meaningless explanations of bar-
gaining positions are expressions of bad faith. N.L.R.B.
v. Truitt Mfg. Co., 351 U.S. 149 (1956); United Steelwork-
ers of America, AFL-CIO v. N.L.R.B., 390 F.2d 846, 852
(D.C. Cir. 1967). The Respondent's claimed need for
flexibility as an objection to so many union proposals
was simply not an honest claim. Several examples appear
in the record.
Respondent's office staff has long worked a 7:30-4
workday. The Union sought a provision establishing
these hours by contract. Respondent said that such a
provision would deprive it of needed flexibility in that
switchboard operators must have a half-hour overlap to
insure coverage of the switchboard during the lunch
hour. Faced with this claim, the Union presented a re-
vised demand which would permit a switchboard opera-
tor to report at a later hour and thus be available for
work during the regular lunch hour. Upon receipt of this
revised demand, the Respondent then said that the pro-
posal was insufficient because it might possibly wish to
install a computer operation, as it did in a California
plant, and such an operation would require shift work.
The Union then countered with a further provision per-
mitting shift work but calling for shift differential in pay,
a proposal found in other contracts entered into by the
Respondent and in accord with its operating manual. At
this point, the Respondent pointed the finger accusingly
at the Union, urging that the Union was moving back-
ward in negotiations by introducing a new demand in its
latest offer on hours of work. In fact, the Respondent
has no computer operation in the Oak Point office and
admits that it has no plans to introduce such an oper-
ation. Its explanation on this point was simply falsehood
and its bargaining posture was simply an effort to intro-
duce an obstacle to an overall agreement.
On the question of vacations, the Respondent objected
to a union proposal permitting employees to take up to 5
days of their vacation on a I-day-at-a-time basis. The
SOCAL Regulating Manual, which establishes company
personnel practices throughout the SOCAL corporate
system, permits this practice, subject to the discretion of
the plant manager. There is evidence in the record to es-
tablish that this practice was permitted and followed at
Oak Point. However, Mulvany stated that it would cause
an administrative headache and thus vetoed any compa-
ny agreement on the point. The Union also proposed
that vacations be scheduled for a full week or weeks at a
time. The proposal was similar to a provision in the p &
m agreement. Mulvany testified that it was the practice
of the Respondent in the o & t unit to grant vacation in
blocks of at least a week at a time. Moreover, the Re-
spondent's Manual states that "vacation periods of less
than one week may be taken only if no increase in oper-
ating costs result and may not total more than one
week." However, the Respondent refused to agree to va-
cation periods in blocks of a week or more. Lockwood
said they wanted the flexibility to schedule vacations as
they wished,
including vacations which might run
Monday, Wednesday, and Friday of one week and
Monday, Wednesday, and Friday of the next week. He
did not explain what operating need prompted this posi-
tion. The Respondent also refused to agree to a union
proposal, found in the p & m contract, which would
permit senior employees first choice of vacations in I
year and those with children in the 5-17 age bracket first
choice in the selection of vacations in alternate years.
The record is silent as to what claimed need for flexibil-
ity prompted a refusal to agree to this proposal. The
transparent emptiness and arbitrariness of the Respond-
ent's explanation for these bargaining postures make it
clear that it had no reason for refusing to agree to these
minor proposals other than a desire to frustrate agree-
ment in general. In fact, after the strike was over, it did
agree to the I-week-at-a-time proposal but this occurred
long after it had adopted the bargaining stance which
preceded the walkout. Accordingly, I regard the failure
of the Respondent to make honest claims and give
honest explanations to justify its rejection of the Union's
58
CHEVRON CHEMICAL COMPANY
demands on work hours and vacations as evidence of its
overall subjective bad faith.
E. The January 24 and 25 Offers on Wages and Term
of Agreement
The Respondent's bargaining stance throughout the
negotiations was to preserve a so-called merit pay
system, under which it would retain a virtually unlimited
right to grant or withhold pay increases within broad
ranges. Under the provisions of its management rights,
grievance, and arbitration proposals, company determina-
tions on such increases would be unreviewable. Because
Respondent also did not and would not agree to a classi-
fication system which assigned particular jobs to any
particular pay classification, the starting point its com-
pensation system would likewise remain wholly at its dis-
cretion, since the Respondent would remain free to peg
any job into any pay category. The Union rejected these
proposals, individually and taken in tandem, and pointed
out to the Respondent that the wage proposal which was
made in December would result in a situation in which
only three members of the unit would get a raise under
the existing classification system. The Respondent coun-
tered with a I-year, lump sum bonus proposal and then
purportedly answered the Union's other objection sub-
mitting, on January 24, a pay proposal which, inter alia,
assigned specific salaries to each bargaining unit member.
The overall raise accorded by these 23 separately stated
salaries was about 4 percent, although some employees
would receive percentage raises above their current sala-
ries which were higher than others.
This unique if not unprecedented proposal should not
be condemned because of its novelty. However, the
effect of a proposal specifying contract rates for each
unit member placed the Union in a position of bargaining
individualy for each employee and of saying, either by
agreement with the Company or by counterproposal,
that one bargaining unit member might be entitled, for
example, to a 3-percent raise while another unit member
was entitled to a 6-percent raise. Thus, the net effect of
the Company's proposal was to force the Union to pit
one unit member against another by prompting an evalu-
ation at the bargaining table of each individual's raise in
comparison with every other raise. This type of proposal
is not collective bargaining but individual bargaining and
would transform the Union from a collective-bargaining
agent into an individual bargaining agent. It would pre-
dictably instill dissention in union ranks because, if ac-
cepted, a comparative ranking of all members by union
spokesmen would be essential to any meaningful union
response. Such a proposal was predictably unacceptable
and was in fact unacceptable.
The Company's final package had another noteworthy
wrinkle. In addition to individually stated salaries, it also
included provisions for a I-year, lump sum bonus and a
2-year contract term. Aside from merit increases, which
are outside the scope of any contractual commitment, the
acceptance of this proposal could mean that, as far as
contractual
guarantees
were
concerned,
employees
would be making less during the second year of the con-
tract than during the first year, since no in-grade or
second-year increases were provided for and a lump-sum
bonus, amounting to an additional 4 percent of base
salary, would not be paid during the second year. A pro-
posal having effect of providing employees, in an era of
rampant inflation, with less guaranteed money during its
second year than its first year is a ludicrous offer and
predictably unacceptable.
The Respondent then coupled this proposal with what
it called a wage reopener at the end of the first year.
However, the proposed wage reopener could not be en-
forced by strike action or resort to the grievances ma-
chinery. It was a nonstrikeable, nonarbitrable reopener,
the net effect of which would be that the Respondent
was free from any contractual obligation to grant an in-
crease during the second year and could in fact lower
overall compensation, while the Union would be power-
less to do anything about it. Any increase which the Re-
spondent felt disposed to grant after the first year would
be a matter of grace, not a matter of right. There is a
certain cuteness about this proposal, when seen in con-
junction with other related salary proposals, but it did
not strike the Union in that fashion when it was placed
on the table. Bergeron's reply was that the proposal for a
nonstrikeable reopener was an insult to the integrity of
the Union and he rejected it forthwith. Such a proposal
is but another stone in the mosaic of bad faith which was
being pieced together by the Respondent during the
course of 22 negotiating sessions.
F. Management Rights and No-Strike Clause
In extolling the virtues of contractual grievance and
arbitration machinery, the Supreme Court stated in
United Steelworkers of America v. Warrior & Gulf Naviga-
tion Co., 363 U.S. 574, 576 (1961), that:
The present federal policy is to promote industrial
stabilization
through
the
collective-bargaining
agreement. A major factor in achieving industrial
peace is the inclusion of a provision for arbitration
of grievances in the collective-bargaining
agree-
ment.
Before that time, in Textile Workers Union of America,
AFL-CIO v. Lincoln Mills of Alabama, 353 U.S. 448, 455
(1957), the Court said: "Plainly the agreement to arbi-
trate grievance disputes is the quid pro quo for an agree-
ment not to strike." While it may be federal policy to
provide for arbitration of grievances in a collective-bar-
gaining agreement, it was not the Respondent's policy, at
least with respect to the particular bargaining unit in-
volved in this case.22 With respect to violations other
than discipline or discharge arising in its Oak Point o & t
unit, Respondent's attitude was if you don't like it, sue
us. However, it wished to reserve to itself the right to a
quickie arbitration in the event that any employee violat-
ed the no-strike clause. At the same time, its manage-
ment's rights proposal would give the Company unilater-
al control over starting and quitting time, job classifica-
tions, work rules, promotions and demotions, and its
merit wage proposal, discussed above, would give it uni-
" Other labor contracts in the record signed by the Respondent in
other bargaining units do contain grievance arbitration provisions.
59
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
lateral control over wage increases above the individual
rates proposed for inclusion in the contract.
At the time of the strike, the Respondent's position
was to insist upon a broad no-strike clause, with griev-
ance and arbitration provisions limited to matters of dis-
cipline and discharge and with the Union excluded from
the initiation of grievances for any contract violations,
including contract violations of a general nature which
might not give rise to what might be called an individ-
ually aggrieved employee. Wage increases above the ac-
ceptable performance level would be the unilateral pre-
rogative of management and a determination of whether
an employee had reached that level of accomplishment
would also be nongrievable. Lockwood explained at the
hearing that if the Union had a complaint not covered by
the agreement, it had a statutory right to present it to
management. However, he made no such explanation or
argument at the bargaining table. A "zipper" clause pro-
posed by the Respondent provided that the agreement,
with its limited grievance and arbitration clauses, consti-
tuted the entire agreement between the parties. When
pressed on the issue of a grievance procedure dehors the
contract, Lockwood was vague as to the details of its ex-
istence. Assuming that such a statutory right was not
waived by the "zipper" clause, Lockwood gave no
rational explanation as to why the Respondent would
prefer two grievance procedures-one mandated by a
statute and the other established by contract when its
basic objection to the Union's proposals was that griev-
ance and arbitration activity in the p & m unit was too
costly and time consuming. His testimony on this subject
bordered on the absurd. At the time of the strike, Re-
spondent continued to insist upon broad management
rights and no-strike clauses coupled with a severely re-
stricted grievance and arbitration proposal and a wide-
ranging merit increase proposal. In the cases cited above,
such a combination of proposals has repeatedly been
found to contain the element of bad faith because they
serve to withdraw vast areas of mandatory subjects of
bargaining from the bargaining table. Lockwood's expla-
nation of the Respondent's position concerning dual
grievance machinery serves only to bring these elenents
into sharper focus and adds to the factors noted above
the additional element of a dishonest claim.
G. Benefits
The Respondent's companywide benefit plan covers a
large number of cost items which are mandatory subjects
of bargaining. Respondent oirginally sought to remove
these matters from the bargaining table with a proposal
giving it the unilateral right to change any provisions
thereof during the contract term, subject only to notifica-
tion to the Union of its action. Its fallback position, and
the one on the bargaining table at the time of the strike,
was that it would not lower the general level of benefits
during the contract term. It made no proposal which
would require it to bargain concerning increases or de-
creases in benefits during the contract term. Its explana-
tion of this vague clause makes it clear that the standard
of "general level of benefits" was so broad and so sus-
ceptible of varying interpretations as to be meaningless.
At first Lockwood said that this phrase meant the Re-
spondent would not lower its financial contributions to
these plans during the contract term. Later he said that
the phrase meant that the Respondent would see to it
that all the benefits in the plan, when considered in their
totality, would not be lowered, even if the cost of main-
taining them should increase during the contract term.
Aside from this contradictory position, the phrase pro-
posed by the Respondent to meet the Union's objection
to its initial offer on benefits is so vague as to be unen-
forceable. How does one measure a change in hospital-
ization against a change in the pension plan, to come out
with the same level of benefits? How does one measure
an increase in a supplemental life insurance benefit
against a possible decrease in the stock option plan to
come out with the same level of benefits? According to
other company proposals, this elastic standard would not
be subject to grievance and arbitration, so if the Union
did not agree to a company explanation that a change
during the contract term in the benefit plan did not in
fact lower the level of benefits in existence on the day
the contract was executed, its only recourse would be
expensive and time-consuming litigation. The addition by
the Company of this new language was a facile but
empty response to cogent criticism leveled at its initial
proposal, criticism which exposed the initial proposal to
the charge that the Respondent was trying to avoid bar-
gaining at all in the very significant area of fringe bene-
fits. After coming up with the language cited above, the
Respondent was still trying to avoid bargaining about
benefits.
H. Seniority
Respondent attempted to define seniority as continuous
company service anywhere in the SOCAL corporate
system, thereby conferring possible benefits in the con-
tract concluded on this unit upon persons employed in
other bargaining units by giving preference to individuals
who are strangers to the Oak Point plant. It modified the
impact of its definition of seniority by according to se-
niority little, if any, weight in its personnel determina-
tions. Seniority would mean nothing under the Respond-
ent's merit wage proposals. It would have importance
only with respect to layoffs and recalls and then, as the
General Counsel put it, only after the Respondent exer-
cised "complete control to evaluate all pre-conditions to
the application of the objective seniority date." Respond-
ent's seniority proposals were so much fluff. If accepted,
they would mean nothing and confer nothing upon en-
ployees in exchange for what the Respondent was seek-
ing from the Union. A discussion of meaningless propos-
als is a waste of time. The presentation and discussion of
meaningless proposals is simply another expression of the
Respondent's intention to avoid contractual commitments
in the course of collective bargaining. Its seniority pro-
posals, both in their original and matured forms, fall into
this category.
I. Miscellaneous Conduct
Under cases cited above, the granting of individual
wage increases to unit members during the course of col-
lective bargaining, without first notifying the Union and
60
CHEVRON CHEMICAL COMPANY
seeking to bargain with it, is a per se violation of Section
8(a)(5). Under a line of Board cases involving charges of
interference and violations of Section 8(a)(X1) during pree-
lection campaigns, an employer can successfully defend
unilateral wage increases in an unrepresented unit on the
basis that the granting of such increases is a regular and
recurring aspect of its wage program and was not timed
so as to interfere with protected activities during an or-
ganizing effort. No such defense is available to this Re-
spondent concerning the five wages increases which it
granted to selected members of the bargaining unit be-
tween July and October 1977 after the Union herein
became certified. It had the obligation to notify and to
bargain with the Union concerning these increases, even
if they were granted pursuant to a previously established
wage program, since any program which might be the
predicate and justification for the increases is itself a
mandatory subject of bargaining. At least two of the in-
creases in question could not be justified even under the
rationale suggested above as they were wholly discre-
tionary increases, even under the terms of the Respond-
ent's existing salary program. The Union did not learn
about these increases until it received information from
its bargaining unit members that the increases had been
put into effect. In some instances, the information came
months after the increases had been granted. By granting
these increases, the Respondent simply acted as if the
Union were not the bargaining agent of its clerical em-
ployees and as if it had no duty to bargain with the
Union over wages. Not only did this action, repeated on
five occasions, violate the Act in and of itself, it also evi-
denced the cavalier attitude the Respondent took toward
the Union and toward its obligations under the Act.
Normally, the alleged mistreatment of an individual
employee by management is, in an organized and repre-
sented unit, a subject for the grievance machinery.
Indeed, the whole purpose of contractual grievance ma-
chinery is to take dispute involving individual employees
and channel them into a fair, efficient, and expeditious
mechanism for resolution, thereby permitting high-level
negotiators to devote their time and energy to issues of
general application throughout the unit. Where, as here,
no such machinery exists, the treatment of individual em-
ployees by management in the course of their employ-
ment falls into the category of wages, hours, and terms
and conditions of employment which Section 8(d) of the
Act estalishes
as mandatory subjects for discussion
during the course of collective bargaining. Under this set
of circumstances, individual grievances are as much a
part of a proper agenda at the bargaining table as a gen-
eral wage increase or a proposal for a no-strike clause.
Late in February, when tensions were running high in
the clerical unit, Mulvany and Naquin, the chairman of
the bargaining committee, had a dispute at the plant over
the appearances of a piece of disparaging literature
which Mulvany felt was inspired by the Union. Naquin
felt that Mulvany treated him abusively during the
course of their discussion, especially when Mulvany or-
dered him to leave the office. A determination of the
facts of this dispute and the propriety of Mulvany's
action are not the province of this proceeding. What is
of concern in an unfair labor practice case is that, when
Bergeron brought this question up at the February 23 ne-
gotiations and
expressed
disapproval
of Mulvany's
action, Lockwood and Mulvany refused to discuss the
matter with him and in fact got up and walked out of the
room, saying they would only discuss this question at the
plant. Bergeron's complaint about the treatment of
Naquin by Mulvany is a classic grievance which the Re-
spondent was under a manadatory duty to discuss the
Bergeron, inasmuch as there was no grievance machin-
ery in existence to resolve the question. Neither at the
bargaining session nor at the hearing in this case did the
Respondent present any reason why the matter could not
have been, or should not have been, discussed on the oc-
casion when Bergeron brought it to their attention. The
refusal of Lockwood and Mulvany to discuss the Naquin
complaint was a per se violation of the Act which pro-
vided a further adverse reflection on the Respondent's
view of its bargaining obligation. This abrupt behavior
involved the chairman of the negotiation committee, was
inflammatory in character, and took place at criticial
moment in the course of negotiations. It was known to
various members of the bargaining unit, and certainly to
the chairman of the committee 3 days later when a strike
vote was taken.
J. Certain Defenses Asserted by the Respondent
Respondent attempts to avoid the onus for a break-
down in bargaining and what ensued thereafter by point-
ing a finger at the Union, claiming that it was the
Union's rigid insistence on a general arbitration and
other matters that brought out the impasse in this case.
The facts simply do not support this position. The
Union's consistent and repeated position was that it had
to have some means of policing a contract after it was
concluded. It could not leave the determination of mat-
ters normally a part of collective bargaining to an exclu-
sive and unilateral determination by the Respondent. Far
from being rigid, its position in this regard was ambiva-
lent. The Union would have to have either arbitration or
a right to strike, and while it much preferred arbitration,
it did not insist on this means to the exclusion of an alter-
native method. If a Union did not have some means of
policing a contract once it was concluded, it would in
effect be withdrawing from the bargaining unit and aban-
doning its legal obligation to its constitutency during the
contract term. This the Respondent had no right to ask it
to do.
One of the Union's later proposals was a suggestion,
discussed briefly, that the establishment of new job clas-
sifications during the contract term be made the subject
of arbitration if such matters could not be agreed upon
by both parties. Respondent calls this proposal interest
arbitration and argues that the Union was in effect vio-
lating Section 8(d) by insisting to impasse upon what the
Board has held to be nonmandatory subject of bargain-
ing. 23 The proposal advanced by the Union was limited
to a call for arbitration of any disputed job classifications
which might be created during the contract term. It
:3 Columbus Printing Pressmen & Assistents' Union N
2352, 219 NLRB
268 (1975).
61
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
made no proposal in this or any other area for arbitration
of unresolved negotiable matters during a future contract
term. As interest relates only to determinations by a
stranger to negotations of bargainable matters arising
during a future contract term24 the Respondent's conten-
tions in this regard are irrelevant to the facts of this case.
At the hearing the Respondent presented several mat-
ters in support of its bargaining posture which it did not
present at the negotiations themselves. While this effort
reflects favorably upon the ingenuity and diligence of
counsel, it says nothing for the bona fides of the negotia-
tors in pressing their points at the bargaining table. Two
contracts entered into by the Respondent and other
locals of the OCAW covering plants in California were
introduced at the hearing-though not at negotiations-
in support of the contention that the Respondent's posi-
tion on items such as managements rights was not so far
out as the General Counsel claimed, since similar clauses
could be found in existing contracts entered into by the
OCAW in other units. What this argument fails to take
into consideration is that a comparison of the California
contracts with the Respondent's offers to its Oak Point
clerical employees shows far greater overall generosity
and willingness to undertake contractual commitments
on basic subjects of negotiation in the California units
than were ever forthcoming during 22 negotiating ses-
sions covering the unit at issue herein. A collective-bar-
gaining agreement is a large but seamless web. Bits and
pieces cannot be torn from one fabric and measured off
against remnants of another to establish fairness through
a comparison of isolated fragments.25
K. A Summary of the Respondent's Bargaining
Position
This case involves a large national enterprise-part of
an even larger conglomerate-employing some 38,000
people which was unable to come to terms with 23 cleri-
cal employees who work for it in one of its many pro-
duction and distribution facilities. The ultimate question
is whether it was unable to come to terms in this bar-
gaining unit because of the vicissitudes of collective bar-
gaining or because it was unwilling to own up to its obli-
gation to deal with its employees as the law requires. As
found above, the Respondent proposed to the Union
herein contract provisions which would have required
the Union to surrender its role as a bargaining agent. It
sought unilateral control over most wage determinations
and all fringe benefit determinations, sought complete au-
thority to establish work rules and working hours,
Ul d at 280, fn. 3, enfd. 546 F.2d 1161 (5th Cir. 1976).
0 In the Board's evaluation of its motives in these negotiations, Re-
spondent seeks high marks for having agreed to a checkoff of union dues,
a high priority union demand which is often held back by management
negotiators as a last ditch tradeoff. Disputes over checkoff have often
been the centerpieces in refusal-to-bargain cases. See, for example,
N.LR.B.
v. United Steelworkers of America AFL-CIO [H.K. Porter Co.,
Inc], 397 U.S. 99 (1970). It should be remembered that, whatever its
value to a union, checkoff is not a cost item to an employer. Moreover,
checkoff has value to a union only when there are union members in a
bargaining unit. As of this time, there are only 2 union members in the
Respondent's 23-employee Oak Point clerical unit. There is much in the
record to suggest than the Respondent foresaw this eventuality before the
strike when it agreed to check off union dues in the o & t unit.
sought to exclude the Union from any say in promotions,
layoffs, and recall, sought to deny union representatives
any contractually established rights to enter the plant,
post many notices, or talk to employees; sought an all-
encompassing managements rights provision and asked
the Union in exchange to commit itself to forego both
strike action and arbitration over most disputes which
might arise during the contract term. Moreover, the Re-
spondent granted wage increases to unit members with-
out consulting the Union, refused even to discuss a griev-
ance involving the chairman of the Union's negotiating
committee and the plant manager, gave frivilous and
nonexistent reasons for refusing to incorporate into the
contract existing plant practices, seized upon minor mat-
ters to erect obstacles to agreement, wasted months of
time in making proposals and counterproposals on basic
issues, and engaged in a sophisticated effort to prevent
the Union from being in a position even to make an intel-
ligent and sensible wage offer based upon a correct eval-
uation of the job content of unit members. Respondent
also made a predictably unacceptable offer of individual
wage rates and coupled them with provisions which
would have permitted an actual reduction in take-home
pay during the second year of the contract through the
absence of any mandated bonuses. It then offered an in-
sulting and meaningless proposal for a nonstrikeable
wage reopener at the end of the first contract year. It
failed to advance at negotiations explanation for its posi-
tions which it presented a year later at an unfair labor
practice hearing and often responded to union requests
to justify its positions with abrupt replies which were the
equivalent of no explanation or "take-it-or-leave-it."
These factors, as well as the other events outlined in the
analysis herein, demonstrate clearly that the Respondent
went to the bargaining table in this unit to toy with the
Union, not to negotiate a contract, and that it was deter-
mined, as Mulvany put it to Bergeron on November 1, to
continue to "do as it damned well pleased." According-
ly, I conclude that the Respondent herein was guilty of
overall subjective bad faith in bargaining with the Union
and thereby violated Section 8(a)(5) of the Act.
L. The Character of the Strike Which Began on
February 27
As early as October 1977, the Union began to question
the seriousness of the Respondent's bargaining posture
and repeated these complaints with greater vigor as ne-
gotiations wore on. In mid-January, at a meeting of its
members, union representatives told unit members that
they were seeking legal advice concerning the filing of
an unfair labor practice charge. At the February 26
meeting, before a strike vote was taken, a considerable
discussion took place concerning the progress of negotia-
tions. The chairman of the negotiating committee,
Naquin, told the employees assembled at the OCAW
Hall in Marrero that he felt that the Company was not
bargaining in good faith and that he felt that there was
no alternative but to strike. The membership voted 14 to
I to engage in a strike.
Union complaints about bad-faith bargaining and union
evaluations of company bad faith do not establish the ex-
62
CHEVRON CHEMICAL COMPANY
istence of bad faith. However, where, as here, bad faith
or surface bargaining has been found in fact to have
taken place, such complaints serve to establish a causal
connection between the Respondent's violation of the
law and the strike which was called following such vio-
lations. Accordingly, I conclude that the strike which
began on February 27 was caused or prolonged by the
Respondent's unfair labor practices and that the employ-
ees who participated in the strike were unfair labor prac-
tice strikers. In accordance with long-settled rules dating
back to the Mackay Radio case, 2 6 such strikers, are, upon
unconditional application, entitled to full and complete
reinstatement to their former or substantially equivalent
positions, even if reinstatement requires the employer to
discharge individuals who were hired during the strike
to take their places. It is undisputed that, on May 17, all
15 strikers made an unconditional application for rein-
statement and that 14 offers were rejected because re-
placements had been hired during the strike. Lloyd F.
Capdeville and Gerald A. Perez were ultimately offered
and accepted positions but it is unclear from the record
whether such offers constituted full and complete rein-
statement. By failing and refusing to grant full and com-
plete reinstatement to returning unfair labor practice
strikers, the Respondent herein violated Section 8(a)(3)
of the Act. I so find and conclude.
Upon the foregoing findings of fact, and upon the
entire record herein considered as a whole, I make the
following:
CONCLUSIONS OF LAW
1. Respondent Chevron Chemical Company is an em-
ployer engaged in commerce and in an industry affecting
commerce, within the meaning of Section 2(2), (6), and
(7) of the Act.
2. Oil, Chemical, & Atomic Workers International
Union, No. 4-447, and Oil, Chemical, & Atomic Workers
International Union are, respectively, labor organizations
within the meaning of Section 2(5) of the Act.
3. All office clerical employees, including the engi-
neering clerk, the lead office assistant in the accounts
payable department, and the lead accounting assistant in
the production-inventory department, who are employed
by the Respondent at its Oak Point Plant at Belle
Chasse, Louisiana, excluding all production and mainte-
nance employees, laboratory employees, professional and
technical employees, draftsmen, engineering assistants,
confidential employees, office assistant (safety and ad-
ministrative services), guards, and supervisors as defined
in the Act, constitute a unit appropriate for collective
bargaining within the meaning of Section 9(b) of the
Act.
4. At all times material herein, Oil, Chemical, &
Atomic Workers International Union has been the exclu-
sive representative for purposes of collective bargaining
of all of the Respondent's employees employed in the
unit described above in Conclusion of Law 3.
N.LR.B. v. Mackay Radio & Telegraph Co., 304 U.S. 333 (1938).
5. By failing and refusing to bargain collectively in
good faith with the Union as the exclusive collective-bar-
gaining representative of the Respondent's employees in
the unit described above in Conclusion of Law 3, the
Respondent herein has violated Section 8(aXS5) of the
Act.
6. By failing and refusing to recall and/or fully rein-
state to their former or substantially equivalent employ-
ment Garnett L. Anderson, Bettie L. Beltz, Barbara A.
Borries, Lloyd F. Capdeville, Louise J. Duplessis, Alvin
L. Hebert, R. A. Henning, Marsha A. Hill, Steward A.
Jenkins, Jody M. Knight, Arnold F. Lassere, R. C.
Naquin, Gerald A. Perez, Larry H. Reiss, and Kathleen
A. Rink because they had engaged in an unfair labor
practice strike, the Respondent herein has violated Sec-
tion 8(a)(3) of the Act.
7. The aforesaid unfair labor practices violate Section
8(a)(1) of the Act and have a close, intimate, and sub-
stantial effect upon the free flow of commerce, within
the meaning of Section 2(6) and (7) of the Act.
REMEDY
Having found that the Respondent has committed cer-
tain unfair labor practices, I will recommend that it be
required to cease and desist therefrom and to take other
actions designed to effectuate the purposes and policies
of the Act. It is the Board's established policy to require
employers to reinstate unfair labor practice strikers
within the 5 days after said strikers have made a full and
unconditional offer to return to work. I will recommend
such a provision in the Board's order. I will recommend
a broad 8(a)(1) order designed to suppress any and all
violations of that section of the Act. I will further rec-
ommend that the Respondent be directed to bargain in
good faith with the Union and that the date of the certi-
fication year be extended for a period of I year from the
date upon which such bargaining commences. Capital
Rubber Specialty Co., Inc., 198 NLRB 260 (1972).
I will also recommend that the Respondent be re-
quired to offer full and immediate reinstatement to all 15
individuals named in paragraph 8(a) of the complaint
which was issued herein on September 22, 1978, to their
former or substantially equivalent positions and that it
also be required to make them whole for any loss of pay
or other benefits which they have suffered by reason of
the discrimination practiced against them, beginning on
May 22, 1978, to be computed in accordance with the
Woolworth formula,2" with interest thereon calculated in
accordance with the adjusted prime rate used by the
U.S. Internal Revenue Service to compute interest on tax
payments. Florida Steel Corporation, 231 NLRB 651
(1977); Isis Plumbing & Heating Co., 138 NLRB 716
(1962). I will recommend that the Respondent be re-
quired to recognize and bargain collectively with the
Union as the duly designated representatives of its em-
ployees, and that it post the usual notice, advising em-
ployees of their rights and of the results of this case.
[Recommended Order omitted from publication.]
n F W. Woolwoth Company, 90 NLRB 289 (1950).
63