263 NLRB 934
Local 3489, United Steelworkers of America, AFL-CIO-CLC (Stran Steel Corporation, a Division of National Steel Corporation)
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Local 3489, United Steelworkers of America, AFL-
CIO-CLC (Stran Steel Corporation, a Division
of National Steel Corporation) and Bernard G.
Frye
United Steelworkers of America, AFL-CIO-CLC
(Stran Steel Corporation, a Division of National
Steel Corporation) and Bernard G. Frye. Cases
25-CB-3928, 25-CB-4255, and 25-CB-4240
September 8, 1982
DECISION AND ORDER
BY MEMBERS FANNING, JENKINS, AND
ZIMMERMAN
On February
25,
1981, Administrative
Law
Judge Walter H. Maloney, Jr., issued the attached
Decision in this proceeding. Thereafter, Respond-
ents and the Charging Party filed exceptions and
briefs in support thereof, and the General Counsel
filed cross-exceptions and a brief in support there-
of.
Pursuant to the provisions of Section 3(b) of the
National Labor Relations Act, as amended, the Na-
tional Labor Relations Board has delegated its au-
thority in this proceeding to a three-member panel.
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 and to adopt his recommended Order.
ORDER
Pursuant to Section 10(c) of the National Labor
Relations Act, as amended, the National Labor Re-
lations Board adopts as its Order the recommended
Order of the Administrative
Law Judge and
hereby orders that the complaints in Cases 25-CB-
4255 and 25-CB-4240 be, and they hereby are, dis-
missed in their entirety.
I We agree with the Administrative Law Judge's Decision that the
General Counsel's motion to vacate the settlement agreement in Case 25-
CB-3928 should be denied. We do not believe that the circumstances
here, i.e., that the parties did not answer the Notice To Show Cause,
warrant relieving the General Counsel of his burden to demonstrate on
the merits that the settlement agreement should be set aside. To hold pro-
cedurally that the settlement agreement was vacated by the failure of any
party to respond to the Notice To Show Cause sacrifices the exercise of
sound judgment based on all the circumstances on an altar of easily ap-
plied mechanical rules-a sacrifice which we decline to make. Cf. Deister
Concentrator Company, Inc., 253 NLRB 358, 359 (1980).
Finding no reason to vacate the settlement agreement, it follows that
presettlement conduct of Local 3489 cannot constitute an unfair labor
practice. Hence, we are precluded in Case 25-CB-4240 from finding the
International's alleged partial ratification of the Local's presettlement ac-
tions an unfair labor practice. In light of these findings and conclusions,
we find it unnecessary to pass upon the Administrative Law Judge's dis-
cussion and application of Sec. 10(b) of the Act as to the International's
conduct.
IT IS FURTHER
ORDERED that the motion to
vacate the settlement agreement in Case 25-CB-
3928 be, and it hereby is, denied.
MEMBER JENKINS, dissenting:
I dissent. For the following reasons, I would
remand the proceeding to the Administrative Law
Judge.
On September 30, 1980, the General Counsel
filed a motion to vacate settlement agreement and
reinstitute formal proceedings in Case 25-CB-3928.
In his motion, the General Counsel set forth in
detail the terms of the settlement agreement and
the asserted reasons why Respondent had failed to
comply with the settlement agreement.
The General Counsel argued that, in any event,
the settlement agreement should be set aside be-
cause there was no meeting of the minds among
the parties as to the rights which the settlement
agreement had bestowed Frye with respect to his
"immediate" eligibility to run for and to hold union
office, citing International Photographers of the
Motion Picture Industries, Local 659 of the Interna-
tional Alliance of Theatrical Stage Employees and
Moving Picture Machine Operators of the United
States and Canada (MPO-TV of California, Inc., Y-
A Productions, Inc.), 197 NLRB 1187 (1972). Re-
spondent did not respond to the motion.
On October 6, 1980, the Administrative Law
Judge issued an Order To Show Cause directing
any interested party to show cause within 10 days
from the date of his Order why the General Coun-
sel's motion should not be granted.
In the absence of any response to the Order To
Show Cause, on November 3, 1980, the Adminis-
trative Law Judge ordered formal proceedings be
reinstituted and that a hearing on the complaint in
Case 25-CB-3928 be held.
It is implicit in the Administrative Law Judge's
Order scheduling a hearing and reinstituting formal
proceedings in Case 25-CB-3928 that the settle-
ment agreement has been vacated. Indeed, Re-
spondent failed to respond to the General Coun-
sel's motion and the Administrative Law Judge's
Order To Show Cause. Finally, Respondent's
counsel at no time argued that the settlement
agreement should not be set aside.
Accordingly, I would find that the Administra-
tive Law Judge's consideration of the validity of
the settlement agreement was improper, that the
merits of the complaint allegations in Case 25-CB-
3928 should be addressed, and that the conclusions
the Administrative Law Judge reached in his Deci-
sion concerning Cases 25-CB-4255 and 25-CB-
4240 should be reconsidered by him in light of the
263 NLRB No. 129
934
LOCAL 3489, UNITED STEELWORKERS
findings he makes on the complaint allegations in
Case 25-CB-3928.
DECISION
FINDINGS OF FACT
STATEMENT OF THE CASE
WALTER
H.
MALONEY,
JR.,
Administrative Law
Judge: These cases came on for hearing before me at
Terre Haute, Indiana, upon consolidated unfair labor
practice complaints, t issued by the Regional Director for
Region 25, which allege that Respondent Local 3489,
United
Steelworkers
of America,
AFL-CIO-CLC
(sometimes called Local 3489 or the Union), and Re-
spondent United Steelworkers of America, AFL-CIO
(sometimes called USWA or the International), 2 violated
Section 8(b)(l)(A) of the Act. More particularly, the first
complaint against Local 3489 alleges that Respondent
caused unwarranted intraunion charges to be filed
against Frye; unlawfully brought him to trial before a
union trial committee on September 29, 1979; found him
guilty, imposed discipline, which included a prohibition
against Frye from running for or holding union office for
an indefinite period of time and a declaration that Frye
be regarded as a member not in good standing for 3
years, all because Frye had filed charges against Re-
spondent Local 3489 with the U.S. Department of Labor
and had also filed charges and given testimony tu the
Board. The second complaint against Local 3489 alleges
that, in 1980, after concluding an agreement with the
Board to settle the matters set forth in the complaint in
Case 25-CB-3928, Local 3489 then committed additional
unfair labor practices, threatening to deny Frye the right
to run for or to hold union office and to inflict upon him
other undefined and unwarranted intraunion discipline
I Charge filed in Case 25-CB-3928 against Respondent Local 3489 by
Bernard Frye, an individual, on October 23, 1979; complaint issued in
Case 25-CB-3928 against Respondent Local 3489 on December 28, 1979.
Respondent Local 3489's answer filed on January 4, 1980; hearing held in
Terre Haute, Indiana, on June 10, 1980, at which an all-party informal
settlement agreement was approved by me; charge filed in Case 25-CB-
4240 against Respondent USWA by Bernard Frye on July 25, 1980;
charge filed in Case 25-CB-4255 against Respondent Local 3489 by Ber-
nard Frye on August 6, 1980; motion to vacate settlement and to reinsti-
tute formal proceedings filed by the General Counsel in Case 25-CB-
3928 on September 30, 1980, and granted by me on November 3, 1980;
complaint issued by the Regional Director for Region 25 against Re-
spondent Local 3489 on September 30, 1980, complaint issued by Region-
al Director, Region 25, against Respondent USWA on November 24,
1980, answer of Respondent Local 3489 filed on October 6, 1980; answer
of Respondent USWA filed on November 28, 1980; hearing held on all
three consolidated cases in Terre Haute, Indiana, on January 7 and 8,
1981; briefs filed with me by the General Counsel, the Charging Party,
and Respondents on February 9, 1981.
2 Respondents admit, and I find, that Stran Steel Corporation, a Divi-
sion of National Steel Corporation, is a Texas corporation which main-
tains its principal office in Houston, Texas, and a place of business in
Terre Haute, Indiana. at which facility it is engaged in the manufacture,
sale, and distribution of fabricated steel buildings and related products. In
the course and conduct of its business Stran Steel manufactures, sells, and
distributes from its Terre Haute, Indiana, facility directly to points and
places located outside the State of Indiana goods and merchandise valued
in excess of $50,000. Accordingly, it is an employer engaged in com-
merce within the meaning of Sec. 2(2), (6), and (7) of the Act. Both Re-
spondents, respectively, are labor organizations w ithin the meaning of
Sec. 2(5) of the Act
because of the earlier charges which he had filed with
the Department of Labor and the Board. The complaint
against the USWA alleges that it unlawfully affirmed the
findings and discipline imposed by Local 3489 against
Frye and denied him the right to seek or hold an Inter-
national office because Frye had filed charges against the
USWA and against Local 3489 both with the Board and
the Department of Labor and had given testimony under
the Act, and also because Frye had run for local union
office, had supported other candidates for local union
office, and had filed internal union charges alleging mis-
conduct by certain officers and members of Local 3489.
Both Respondents deny the commission of any unfair
labor practices and assert that there is no basis for setting
aside the settlement agreement which Local 3489 entered
into with the Regional Office and the Charging Party on
June 10, 1980. Upon these contentions, the issues herein
were joined. 3
A. The Unfair Labor Practices Alleged
For many years Stran Steel, now a part of National
Steel Corporation, has operated a plant at Terre Haute,
Indiana, where it manufactures fabricated steel buildings
and related products. During most of this time it has had
a collective-bargaining
relationship with Respondent
Local 3489 covering its production and maintenance
workers. Charging Party Bernard Frye has worked for
Stran Steel for a number of years and is currently a bid
laborer working on inspection. During this period of
service, Frye had held a number of positions with Local
3489, including president (from 1973 to 1976), vice presi-
dent, trustee, and grievance committeeman. In 1970 and
again in 1976 he was an unsuccessful candidate for presi-
dent of the Local. In 1976, he attempted to run for direc-
tor of District 30 but was unable to secure the nomina-
tions of enough locals within the district to have his
name placed on the ballot.4
Frye's relationship with Local 3489 and the USWA
has been a stormy and litigious one for a long period of
time. Frye was one of several dissidents who sucessfully
challenged a provision in the USWA constitution limit-
ing eligibility for International office to members who
had attended one-half of the meetings of their local union
during the 3 years preceding their candidacies. In a case
which ultimately went to the Supreme Court, this provi-
sion was found to be unreasonable under the provisions
of Title IV of the Landrum-Griffin Act (Sec. 401(e),
Labor-Management Reporting and Disclosure Act of
1959). In this challenge, Frye gained a certain distinction
by being mentioned by name in the text of Justice
Powell's dissenting opinion. Local 3489, Steelworkers v.
Usery, 429 U.S. 305 (1977). He has also filed charges
against Local 3489 with the Board in these and other
cases, including an unsuccessful attempt by Frye to have
3 Errors in the transcript have been noted and corrected.
4 Local 3489 is one of about 120 locals in southern Indiana and parts of
Ohio and Kentucky which comprise USWA District 30. In order to
appear on the ballot as a candidate for district director of District 30, a
member must be nominated for that position by eight locals in the Dis-
trict. Frye was nominated bv only two locals and thus failed to appear on
the ballot.
935
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
the Board reverse intraunion discipline which was ad-
ministered to him in 1976 because he made a fraudulent
claim against the Union for travel expenses and charged
other personal expenses to the account of a union official
without authorization. See United Steelworkers of Amer-
ica, AFL-CIO (Stran Steel Corporation), 239 NLRB 374
(1978). In addition to these charges, Frye has filed ap-
proximately 20 intraunion charges against various union
officials and members of Local 3489 between 1977 and
1980, including 12 contemporaneous charges which are
the subject of this consolidated case. He also filed 32
challenges with the Department of Labor protesting the
conduct of a 1979 local election, which were dismissed,
and filed a civil suit (now pending) in U.S. district court
containing the same allegations which were the subject
of his unsuccessful protest to the Labor Department.
As more fully detailed by Administrative Law Judge
Thomas D. Johnston in his decision in USWA (Stran
Steel), supra, Frye was prohibited from holding union
office for a period of 3 years as a punishment for the vio-
lation of union rules and discipline of which he was
found guilty. The record in this case indicated that
Frye's disability from running for or holding union office
because of the 1976 discipline extended until April 1980,
and that, during this period, he backed a candidate for
president of Local 3489 at the April 1979 local union
election. Frye's candidate, Larry L. Lynch, won the
election but was soon removed from office by the
USWA for refusal to obey a written directive issued to
him on June 5, 1979, by USWA President McBride. The
USWA then placed Local 3489 under trusteeship and
named Charles R. Carl, one of two USWA staff repre-
sentatives in the Terre Haute area, as administrator of
the Local. Carl took over as administrator on July 3,
1979. In this position, he was empowered under the In-
ternational constitution and bylaws to run the local, to
appoint or remove local officials, and to expend local
funds, subject only to control by the International. Local
3489 continued to operate under trusteeship until January
or February 1980. One of Carl's actions was to name the
man elected to the vice-presidency of the Local at the
April election to be president in place of Lynch.
On July 13, 1979, Frye filed with the U.S. Department
of Labor in Chicago a protest of the April election. As
indicated supra, his protest listed some 32 allegations of
procedural irregularities or other misconduct. 5 Between
July 3 and 20, Frye filed with the recording secretary or
the acting president of Local 3489 a total of 12 separate
charges against various local members and officials, al-
leging that they violated provisions of the constitution or
bylaws of either the International or the Local. These
charges were read at the August 8 meeting of Local
3489 and were referred by Carl, the administrator, to a
hearing by a Local 3489 trial committee which was held
Friday morning, August 31. The trial committee was
composed of Hulet Sessions, Willie Suggs, and Larry
Skanks. Frye admits that he had notice of the meeting of
the trial committee but he did not attend. The trial com-
mittee recommended to the Local that all 12 charges be
The Labor Department dismissed this protest on March 18, 1980, and
accompanied its letter of dismissal to Frye with a 10-page discussion set-
ting forth its reasons for dismissal of each item of protest.
dismissed. The recommendation was considered at the
next Local meeting on September 12 and was approved
by the membership by recorded votes as to each charge.
Frye did not attend this meeting.
On September 1, 1979, Robert E. Mix, recording sec-
retary of the Local, and Gerald L. Layman, a member of
the Local, filed a charge against Frye. They charged him
with violating article XII, page 80, section 1(3)(a), of the
International constitution by filing 12 intraunion charges
which were completely false and unfounded. He was
also charged with representing two members of the
Union and openly stating that he was the Local's Insur-
ance chairman while in fact he was serving a 3-year sus-
pension from holding office which extended to April
1980. The charges were read at the September 12 mem-
bership meeting and were referred by Carl to a trial
committee which met on Saturday, September 29. Carl
had difficulty in finding members to serve on the trial
committee but ultimately prevailed upon Hulet Sessions,
who sat on the committee which considered the original
charges filed by Frye, and union members Mike Ma-
honey and Gary Osmon to act as committee members.
The trial committee conducted a hearing as scheduled,
and Frye appeared to defend himself. The committee
found Frye guilty of both charges and recommended
that he be forbidden to hold an office or other position
in Local 3489 for an indefinite period, that he be de-
clared to be a member not in good standing for a period
of 3 years, and that he be required to continue to pay
dues. The committee's recommendation was considered
by the membership at their next regular meeting on Oc-
tober 10 and was approved, with Frye casting the only
dissenting vote.
The USWA has established rather elaborate machinery
for dealing with internal appeals of disciplinary proceed-
ings which permit an aggrieved to take his case all the
way from a local membership meeting to the floor of the
International convention. Following the approval as the
local level of intraunion discipline or the dismissal of a
charge filed by an aggrieved member, the International
executive board will, upon timely appeal by either the
accused or the accuser, appoint an International commis-
sion to visit the locality where the charge arose and to
inquire de novo into its merits." Following a hearing, an
International commission must make a written report of
its findings and recommendations to the appeal panel of
the International executive board, which in turn makes a
recommendation to the executive board. The executive
board can affirm or reject, in whole or in part, the find-
ings of the appeal panel. An aggrieved party may then
take a further appeal to the delegates elected to the next
International convention. Prior to the meeting of the
convention an appeals committee of delegates inquires
into each appeal and makes a recommendation to the
convention. However, the final decision belongs to elect-
ed delegates of the entire USWA membership meeting at
its regular biennial convention.
Frye appealed the dismissal of his 12 charges by Local
3489 to the International executive board and also ap-
6 The members of an International commission are normally assigned
from a USWA district other than the one in which the charge arose.
936
LOCAL 3489, UNITED STEELWORKERS
pealed the discipline meted out to him by Local 3489 at
its October 10 meeting. The executive board appointed a
two-member commission, composed of Obert J. Vatten-
dahl and David Marzec, to conduct an inquiry into both
matters. Vattendahl and Marzec are staff representatives
from USWA District 32 in southeastern Wisconsin. They
conducted a hearing in Terre Haute on January 22, 1980,
at which time both Frye and his adversaries appeared
and were heard. One of Frye's complaints to the com-
mission was that the Local erred by failing to accord to
him separate hearings by a separate trial committee on
each of the 12 charges he filed in July 1979. At this time,
he withdrew 2 of the 12 charges which he filed.
Sometime thereafter, Vattendahl and Marzec rendered
a 12-page written report to the International executive
board. It dismissed Frye's 10 remaining charges against
various Local officers and members, dismissed the por-
tion of the charge against Frye alleging that he had mis-
represented himself as a union insurance committeeman,
and found Frye guilty of filing frivolous and unfounded
charges against Local officials. It recommended that the
discipline imposed by the Local be reduced to a prohibi-
tion against Frye from filing any intraunion charges for a
period of 3 years. It did not concur in the Local's action
making Frye a member not in good standing for 3 years
nor in the Local's determination that Frye should not be
allowed to run for or hold office for an indefinite
period7 so it recommended that Frye's good standing be
restored. The commission's findings and recommenda-
tions were adopted by the International executive board
appeal panel and, on June 19, 1980, by the International
executive board. On August 8, 1980, the Twentieth Con-
stitutional Convention of the USWA, meeting in Los
Angeles, approved the recommendation of its own ap-
peals committee and adopted the findings and recom-
mendations which had previously been approved at each
previous stage of the International's appeals process.
On June 10, 1980, a hearing by me was scheduled and
took place at Terre Haute, Indiana, on the complaint
outstanding in Case 25-CB-3928. The International was
not charged in this complaint and was not represented at
that hearing. The hearing took place during the pend-
ency of Frye's appeals to the International. At this hear-
ing, the General Counsel, Frye, and Local 3489 entered
into an informal settlement agreement, approved by me,
which was executed on Standard NLRB Form 4775 and
Notice Form 4726. One of the undertakings of Local
3489 written into this settlement agreement provided as
follows:
The Charged Party agrees that it will immediate-
ly permit the Charging Party to be eligible to run
for and hold any Union office, subject to the gener-
ally applicable eligibility requirements contained in
the Union (USWA) Constitution and
Election
Manual; to speak at union meetings on the same
basis as any union member; to inquire of union rep-
While much of the Local's punishment was ultimately rescinded,
Frye was in fact not in good standing from October 10, 1979, until June
19, 1980, when International executive board acted on the International
appeal panel (and the commission) recommendation, because he did not
seek or receive a stay of the Local's action during the appeal period.
resentatives and to be told the current status of any
pending grievance and to receive the assistance of
union representatives in the processing of any griev-
ance; and to vote on any matter or question submit-
ted to the membership of the Union. ....
Both pri-
vate parties agree that nothing in this Settlement
Agreement will affect the rights and remedies of
either party under provisions of any law other than
the National Labor Relations Act.
On the day following the notice of partial dismissal of
his appeal by the International executive committee,
Frye wrote a letter, dated June 25, 1980, to the USWA
International secretary in Pittsburgh in which he asked,
among other things:
I am also requesting to be advised by your office as
to restrictions, if any, that might be applied as a
result of the action of the International Administrat-
ed Local 3489 in Case T-2505 [the intra-union
charges] to bar me from running for International
Office. Especially the period October 10, 1979, and
June 5, 1980, a period in which the "administrated
local held me: a member not in good standing."
On July 14, 1980, International Secretary Lynn R. Wil-
liams replied as follows to Frye:
You are a member in good standing, but do not, ac-
cording to our records, meet the eligibility require-
ments of Article IV, Section 3(a) to run for Interna-
tional Office.
Williams sent copies of this letter to Harry Daugherty,
district director of District 30, and to Robert Mix, the re-
cording secretary of Local 3489. Williams' letter to Frye
did not spell out the text of the cited provision. Howev-
er, the cited section provides that "no member shall be
eligible for nomination or election as an International Of-
ficer, District Director or National Director of Canada
unless the member (a) shall be in continuous good stand-
ing for a period of five (5) years immediately preceding
the election." 8
During the period of time during which Frye was not
in good standing, he attended several union meetings but
was not permitted to speak or to vote. He acknowledges
the fact that, after the conclusion of the June 10 settle-
ment agreement, he was permitted to speak at meetings
of Local 3489, to inquire at local meetings as to the
status of grievances, and to vote on matters at issue
before the membership." However, after the receipt of
8 The USWA Local Union election manual contains a related provi-
sion pertaining to candidacies for local office. It states, in art. VII, sec. 9,
that "no member shall be eligible for election as a Local Union Officer or
Gnevance Committee Member unless (a) the member shall have been in
continuous good standing for a period of twenty-four (24) months imme-
diately preceding the election ..
"
I At the August 1980 meeting Frye questioned Carl concerning the
status of grievance which he had filed against Stran Steel in 1977 or 1978
and which had been pending at the third step of the grievance procedure
for a long period of time. Carl informed him that the grievance had no
merit and was going to be withdrawn if in fact it had not already been
withdrawn,
937
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
the above-quoted letter from the International relating to
Frye's eligibility to hold office, a number of remarks
were made by Local officials who work at Stran Steel
expressing support for agreement with the International's
determination. Recording Secretary Robert Mix, a long-
time enemy of Frye, stated to a number of unnamed indi-
viduals that Frye would be ineligible to run for office.
He referred to the letter from the International and ex-
pressed the opinion that Frye also did not have 24
months of continuous good standing, a prerequisite for
running for Local office. On one occasion, Mix stated
that, if Frye's name was put on the ballot, he would pro-
test the election. On one occasion, Mix stated to Frye
and other Stran employees, with reference to the June 10
settlement agreement, that "Frye lost. We won."
On another occasion. Frye spoke with Local 3489
President Jerry Dewey on the job at Stran Steel. He
asked Dewey what the Local's position would be con-
cerning his running for office in light of the July 14
letter from the International stating that he was ineligible
for International office because of lack of sufficient time
in continuous good standing. Dewey replied that the
Local would have to adopt the same policy as the Inter-
national. On another occasion, Glenn Osborne, the Local
3489 grievance committeeman, told Local 3489 member
(and Stran employee) Robert Beard that he would bet a
month's pay that Frye could not run for union office. A
week later, Mix showed Beard a copy of the letter of
July 14 from the International relating to Frye's eligibil-
ity. On another occasion, Mix expressed to Beard the
opinion that the notice which had been posted in the
plant as a part of the June 10 settlement agreement
"didn't mean a damn thing."
B. Analysis and Conclusions
1. The settlement agreement with Local 3489 and
the second complaint against Local 3489
As recited above, the General Counsel, the Charging
Party, and Respondent Local 3489 entered into a settle-
ment agreement on June 10, 1980, disposing of the com-
plaint in Case 25-CB--3928. Normally speaking, a settle-
ment agreement disposes of all issues involving presettle-
ment conduct unless prior violations of the Act were un-
known to the General Counsel, not readily discoverable
by investigation, or specifically reserved. Hollywood Roo-
sevelt Hotel Co., 235 NLRB 1397 (1978). On November 3,
1980, at the request of the General Counsel, I ordered
that formal proceedings in that case be reinstituted and
that a hearing be held to litigate the matters contained in
that complaint. Later, complaints in the other two dock-
ets were consolidated with that case for hearing.
Normally, an all-party settlement agreement may not
be set aside and the underlying matters resolved unless
the respondent has committed further unfair labor prac-
tices evidencing an unwillingness to abide by the terms
of the settlement, or unless the respondent has failed to
live up to a stated term of its undertaking. In the absence
of such proof, a settlement agreement must be honored
and a motion to vacate it must be denied. Fine Organics,
Inc., 214 NLRB 158 (1974); U.S. Postal Service, 234
NIRB 820 (1978); Indio Community Hospital, 225 NLRB
129 (1976). A third and rarely invoked basis for setting
aside a settlement agreement is a finding of a lack of
meeting of the minds of the parties when they executed
the agreement. Stage Employees Local 659 (MPO-TV of
Calfornia, Inc.), 197 NLRB 1187 (1972); Local Lodge
Number 5, International Brotherhood of Boilermarkers, etc.
(Regor Construction Company, Inc.), 249 NLRB 840
(1980). While the propriety of litigating settled matters
was discussed at length at the hearing in these cases, this
question was not addressed by any of the parties in their
post-trial memoranda. Despite this fact, the continued va-
lidity of the June 10 settlement agreement is a threshold
question and must be resolved before proceeding to
other matters.
The complaint in Case 25-CB-4255 sets forth certain
conduct on the part of the Local which, in the opinion
of the General Counsel, constitutes a basis for setting
aside the June 10 agreement. The evidence adduced at
the hearing relating to these allegations falls far short of
constituting unfair labor practices. After the International
had ruled, in a letter dated July 14, 1980, that Frye was
not eligible to run for International office because his
period of continuous good standing had been interrupted,
various Local officials expressed a willingness and per-
haps some enthusiasm about agreeing with this determi-
nation. Recording Secretary Mix related the substance of
the International's ruling in a statement made to certain
members of the Local, adding his own conclusion that
Frye's problem with continuous good standing would
also affect his eligibility to run for a Local office. He
told another member that, in respect to the settlement,
Frye had "lost" and the Union had "won." Local Presi-
dent Dewey stated to one or more members that the
Local would have to go along with the International's
interpretation of Frye's eligibility. A third Local official
offered to bet another member a month's pay that Frye
could not run for office. These statements constitute nei-
ther a promise of benefit nor a threat of reprisal but an
expression of opinion which these individuals were free
to make. N.L.R.B. v. Teamsters Local 627 [Standard Oil
Company], 241 F.2d 428 (7th Cir. 1957). Mix's comment
to a fellow member that a notice which had been posted
at the Stran Steel plant in compliance with the June 10
agreement "wasn't worth a damn" is also an expression
of opinion and does not constitute a repudiation of the
agreement. Cf. Arrow Specialties, Inc., 177 NLRB 306
(1969);' Bingham-Willamette Company, a Division of Guy
F. Atkinson Company, 199 NLRB 1280 (1972): Bangor
Plastics, Inc., 156 NLRB 1165 (1966), enforcement denied
392 F.2d 772 (6th Cir. 1968). Indeed, it was an inaccurate
expression of opinion since, in fact, Frye was enabled to
speak and vote at union meetings following the June 10
settlement, something he was not privileged to do for a
period of 8 months previous to that date.
The question of the eligibility of a member of steel-
workers to run for union office-either local or Interna-
tional-is governed not by the provisions of any Local
rules or bylaws but by provisions of the USWA election
manual which are unionwide in scope and are interpreted
and applied by the International. It goes without saying
that the International was not a party to the June 10
938
LOCAL 3489, UNITED STEELWORKERS
agreement and could not have been since, at that time, it
had not been charged with the commission of an unfair
labor practice. Hence, nothing the USWA did subse-
quent to June 10 could constitute a violation of the
agreement. Contrary to the allegation in paragraph 5(a)
of the complaint in Case 25-CB-4255, the Local did not
engage in any postsettlement threats to deny Frye the
right to run for or to hold local office. The power to de-
termine Frye's eligibility was not in its hands and the ex-
pressions of opinion by Local officers as to Frye's eligi-
bility were not threats on the part of the Local to do
anything. Even Mix's threat to protest an election if Frye
ran, a right guaranteed to him by the International con-
stitution and by the Labor Management Reporting and
Disclosure Act of 1959, does not constitute a threat to
violate any rights guaranteed to Frye by Section 7 of the
National Labor Relations Act. Accordingly, I conclude
that Local 3489 did not commit any unfair labor prac-
tices following the June 10 settlement which would war-
rant the setting aside of that agreement.
Another and alternative argument used by the General
Counsel at the hearing to justify the litigation of presett-
lement conduct on the part of Local 3489 was the asser-
tion that somehow Frye and, by implication, the General
Counsel were duped into signing a document whose
meaning they did not understand and that, following the
settlement, the Local failed to abide by a specific under-
taking set forth in the agreement. The reference in ques-
tion is to Frye's eligibility and his right to run for office
following the execution of agreement in question. The
agreement states, inter alia, that Local 3489 agrees that
"it will immediately permit [Frye] to be eligible to run
for and hold any union office, subject to the generally
applicable eligibility requirements contained in the Union
[USWA] Constitution and Election Manual." While this
sentence is not a model of legal draftsmanship, its lan-
guage makes it abundantly clear that Local 3489 was not
waiving, as to Frye, any limitations contained in the
USWA constitution and election manual concerning
Frye's eligibility to run for and hold office (something
the Local had no power to do in any event). It is also
clear that the agreement was limited to actions by the
Union pertaining to Frye's running for or holding office
which did not involve general eligibility requirements.
The agreement did not reverse any intraunion findings of
wrongdoing on Frye's part nor expunge from Frye's
record the lack of good standing which existed for a
period of 8 months by virtue of the guilty finding which
had been approved by the membership of the Local on
October 10, 1979. It simply removed certain but not all
of the punishment which flowed from the guilty finding
of October 10, 1979, expressly reserving the question of
his eligibility for union office. 0o
Frye is in a poor position to say that he was duped
into signing an agreement which he freely entered into,
or to contend that he did not understand its implications.
The General Counsel is in no better position to make this
'o For instance, the text of the June 10 agreement finally accepted by
all panrties excised a suggested portion relating to Frye's right to file in-
traunion charges, a matter discussed in detail during the settlement talks
and left by the parties to resolution by the USWA's intraunion disciplin-
ary procedures which were then in progress.
confession of error. The agreement itself made explicit
reference to eligibility requirements in the USWA consti-
tution and election manual. By virtue of his long and
persistent involvement in litigation over the validity of
the eligibility provisions of the USWA constitution, Frye
was by any definition a veritable expert as to their re-
quirements. When, on June 25, the day following noiifi-
cation by the USWA of its action on the intraunion dis-
cipline, Frye wrote to the International secretary for a
ruling concerning his eligibility for office, he made spe-
cific reference to the fact that he had been in bad stand-
ing for a period of several months because of intraunion
discipline. Frye well knew the answer to his question
before he asked it but preferred to have the International
put two and two together for him."1 The ruling by the
International on July 14 simply applied undisputed fact-
Frye's 8 months in bad standing-to a clear and un-
equivocal
provision
of the
International's
election
manual. The USWA could have made no other ruling
without violating the terms of its own governing instru-
ments.
Accordingly, I conclude that Local 3489 did not
commit the unfair labor practices attributed to it in para-
graph 5(a) of the complaint in Case 25-CA-4255 nor has
it failed to live up to any provisions of the settlement
agreement concluded in Case 25-CA-3928. Accordingly,
the complaint in Case 25-CA-4255 should be dismissed
in its entirety and the General Counsel's motion to
vacate the settlement agreement in Case 25-CA-3928
should be denied.
2. The complaint in Case 25-CA-4240 against the
USWA International
The theory of the General Counsel's case against the
USWA has a threefold dimension. The General Counsel
contends that the USWA is vicariously guilty of wrong-
doing committed by its Local 3489 in the fall of 1979 by
virtue of the fact that the charges, trial. and discipline
administered by Local 3489 to Frye took place while the
Local was in trusteeship and was being directly adminis-
tered by USWA Staff Representative Carl under USWA
direction and control. Secondly, the General Counsel
contends that the USWA is guilty of unfair labor prac-
tices because, in the course of its appellate review of
Local 3489's discipline of Frye, starting from the hearing
by the International commission and running through the
action of the USWA general membership meeting in bi-
ennial convention, the International upheld and ratified,
at least in part, conduct of the Local which had been il-
legal from its inception.
The General Counsel also contends that the July 14,
1980, ruling by International Secretary Lynn R. Williams
to the effect that Frye was ineligible to run for Interna-
tional office was violative of the Act. These contentions
"' The International constitution has a provision permitting the Inter-
national executive board to issue a stay of execution of any discipline im-
posed at the local level pending an appeal by ai member to the Interna-
tional. Frye did not exercise this right nor receive any stay Accordingly.
the bad standing imposed by Local 3489 remained intact until it was
lifted by the International on June 19
439
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
run afoul of the statute of limitations contained in Sec-
tion 10(b) of the Act.
Frye did not file any charges against the USWA
growing out of the 1979 discipline until July 25, 1980,
after he had received a ruling from the International to
the effect that he could not run for International office
because of lack of continuous good standing for a period
of 5 years. In determining the merit of the complaint
based on this charge, the Board is precluded from rely-
ing upon acts and conduct which occurred prior to Janu-
ary 25, 1980. Such acts and conduct include the entire
history of Frye's 1979 intraunion dispute within the
Local as well as events occurring at the hearing of the
International commission on January 22, 1980. The lead
case in this area, Bryan Manufacturing Company,'2 per-
mits the Board to look into pre-limitation conduct if it
lays bare a putative unfair labor practice occurring
within the 10(b) period. Such latitude has generally been
limited to evidence of animus, since old grudges can be
harbored much longer than the statutory period allowed
by Congress. However, this latitude does not extend to
the finding of a violation of the Act for conduct occur-
ring within the 10(b) period when those findings must be
predicated upon findings of unfair labor practices com-
mitted outside the period of limitations. While this line of
demarcation is sometimes hard to draw, the facts of this
case and the outline in the General Counsel's brief of the
incidents forming the ingredients of his case against the
International make it clear that conduct on the part of
the International occurring after January 25, 1980, could
only be adjudicated as illegal by reference to and in reli-
ance upon findings of illegal conduct occurring before
that day. It may well be that everyone who has dealt
with Frye in intraunion controversies over a long period
of time harbors animus against him, but the elements of
an unfair labor practice involve much more than animus.
Upon the General Counsel's initial theory of USWA's vi-
carious responsibility for the acts of Local 3489, the
events constituting alleged unfair labor practices by
Local 3489 occurred in the fall of 1979 when Staff Rep-
resentative Carl was in charge of the Local. This theory
would plainly require the Board to inquire into pre-10(b)
period conduct and find that one or more unfair labor
practices were committed by Local 3489 at that time in
order to impose derivative liability upon the Internation-
al. This the Board plainly may not do.
According to the General Counsel's second theory,
ratification in part by the USWA within the 10(b) period
of discipline administered by the Local outside the 10(b)
period in the course of the International's appellate
review of this case should warrant a finding of a viola-
tion on the part of the International, even though the un-
derlying charges against the Local have been settled and
the settlement affirmed. Here, too, a Board finding of il-
legal conduct after January 25, 1980, in the review of
Frye's discipline would require a detailed probe into
events which took place long before that time and a find-
ing that those events, later ratified, were also unfair labor
12 Local Lodge 1424 International Association of Machinists AFL-CIO
v. N.LR.B., 362 U.S. 411 (1960).
practices. Section 10(b) also forbids this type of retro-
spection.
As for the USWA's ruling of Frye's ineligibility for
office which was made on July 14, 1980. there is not the
slightest causal connection
established between any
viable unfair labor practices (or animus of any variety)
and the ruling which was made. Frye was in bad stand-
ing for a period of 8 months and he knew it. The elec-
tion manual requires a candidate for International office
to be in continuous good standing for a period of 5
years. As the Supreme Court pointed out in Local 3489
Steelworkers v. Usery, supra, good standing as prerequisite
for union office is not only a requirement of the USWA
constitution but is expressly sanctioned by Section 401(e)
of the Labor-Management Reporting and Disclosure Act
of 1959. An inquiry into the legitimacy of Frye's bad
standing for 8 months is beyond the Board's purview,
barred by settlement as to the Local and by limitations as
to the International. Accordingly, when the International
ruled as it did upon Frye's inquiry, it made a determina-
tion dictated both by the clear terms of its election
manual and the facts at hand which it was bound to
accept at face value. Accordingly, for the reasons given
above, I would dismiss the complaint against the Interna-
tional in Case 25-CA-4240.'1
Upon the foregoing findings of fact and upon the
entire record herein considered as a whole, I make the
following:
CONCLUSIONS OF LAW
1. Stran Steel Corporation, a Division of National
Steel Corporation, is an employer engaged in commerce
and in operations affecting commerce within the meaning
of Section 2(2), (6), and (7) of the Act.
2. Respondent Local 3489, United Steelworkers of
America, AFL-CIO-CLC, and United Steelworkers of
America, AFL-CIO-CLC, are, respectively, labor orga-
nizations within the meaning of Section 2(5) of the Act.
3. The terms of an all-party informal settlement agree-
ment concluded between Respondent Local 3489 and the
Charging Party herein on June 10, 1980, in Case 25-CB-
3928 have not been violated and said agreement should
not be set aside.
4. Neither Respondent violated Section 8(b)(1)(A) of
the Act, as alleged in Cases 25-CB-4255 and 25-CB-
4240.
Upon the foregoing findings of fact and conclusions of
law, and pursuant to Section 10(c) of the Act, I make the
following recommended:
i: The Respondents devoted a major portion of their brief to the argu-
ment that no unfair labor practices occurred because the conduct alleged
has been rendered immune from Board inquiry by the proviso to Sec.
8(b)(IXA) and because the conduct of the Local and the International set
forth in this record is a legitimate exercise of union discipline against a
disruptive member whose actions threatened the solvency of a small
local. Because of the manner in which I have disposed of this case, I will
not pass upon these contentions. However, since a long history of conten-
tiousness between these parties includes, among other things, wrenching
out of context the remarks, rulings, holdings, and decisions made by
public agencies, I want to make it abundantly clear that nothing I have
said or failed to say in this Decision should be construed by anyone as a
finding by me that either Respondent has in any way violated any provi-
sion of the Act at any time.
940
LOCAL 3489, UNITED STEELWORKERS
941
ORDER5 4
25-CB-4255 and 25-CB-4240 are dismissed in their en-
The motion to vacate the settlement agreement in Case
tirety
25-CB-3928 is denied and the complaints issued in Cases
"t In the event no exceptions are filed as provided by Sec. 102.46 of
the Rules and Regulations of the National Labor Relations Board, the
findings, conclusions, and recommended Order herein shall, as provided
in Sec. 102.48 of the Rules and Regulations, be adopted by the Board and
become its findings, conclusions and Order, and all objections thereto
shall be deemed swaived for all purposes.