268 NLRB 436
Film Consortium
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
The Film Consortium, Inc. and National Association
of Broadcast Employees and Technicians, AFL-
CIO, CLC, Local 531 and International Alli-
ance of Theatrical Stage Employees and Moving
Picture Machine Operators of the United States
and Canada, Party to the Contract. Case 31-
CA-9564
22 December 1983
DECISION AND ORDER
BY CHAIRMAN DOTSON AND MEMBERS
ZIMMERMAN AND HUNTER
On 24 May 1982 Administrative Law Judge
Maurice M. Miller issued the attached decision in
this proceeding. Thereafter, the Respondent filed
exceptions and a supporting brief, and the Charg-
ing Party filed a brief in answer to the Respond-
ent's exceptions. On 1 October 1982 the Board
issued a Notice to Show Cause requesting the par-
ties to state why, in light of the Board's decision in
Bruckner Nursing Home,' the allegations of the
complaint herein should not be dismissed. Thereaf-
ter, counsel for the General Counsel, the Charging
Party, and the Respondent filed responses to the
Notice to Show Cause.
The National Labor Relations Board has delegat-
ed its authority in this proceeding to a three-
member panel.
The Board has considered the decision and the
record in light of the exceptions and briefs and the
responses to the Notice to Show Cause and has de-
cided to affirm the judge's rulings, findings, and
conclusions only to the extent consistent with this
Decision and Order.
The judge concluded that the Respondent violat-
ed Section 8(a)(2) of the Act by its conduct in rec-
ognizing International Alliance of Theatrical Stage
Employees and Moving Picture Machine Operators
of the United States and Canada (IATSE) and
thereafter by entering into a collective-bargaining
agreement with that Union. 2 In reaching his con-
clusions, the judge followed two separate analyses.
The first derived from the then-existing case law
application of the Midwest Piping 3 doctrine. The
violation under this analysis was based on findings
that the Respondent had through its conduct "con-
ceded the substantiality" of a representation claim
by National Association of Broadcast Employees
and Technicians, AFL-CIO, CLC,
Local
531
(NABET), prior to the Respondent's recognition of
IATSE. Therefore, the judge found that, as of the
i 262 NLRB 955 (1982).
2 The judge also found a derivative 8(a)(3) violation based on the exist-
ence of a union-security clause in the collective-bargaining agreement be-
tween the Respondent and IATSE.
3 Midwest Piping Co., 63 NLRB 1060 (1945).
268 NLRB No. 60
time of IATSE's recognition, a real question con-
cerning representation existed among the Respond-
ent's employees which triggered the Respondent's
duty to remain neutral in the face of NABET's and
IATSE's rival claims. The second analysis derived
from the decision in Lyndale Mfg.
Corp., 238
NLRB
1281
(1978). The violation under this
second analysis was predicated on the finding that
the
Respondent
had, by
its
conduct,
misled
NABET and "lulled [NABET] into inaction" in
NABET's effort to gain recognition as the repre-
sentative of the Respondent's employees. In its ex-
ceptions, the Respondent argues that the facts pre-
sented support neither the Midwest Piping nor the
Lyndale analysis, and the Respondent also argues
that the Midwest Piping doctrine should be over-
ruled. We agree with the Respondent that its con-
duct is not violative of the Act, but we do so only
for the reasons set forth below.
Since the issuance of the judge's decision, we
have reevaluated the application of the Midwest
Piping doctrine in situations such as the one pre-
sented here-initial organizing situations involving
two rival labor organizations. In Bruckner Nursing
Home, supra, it was reestablished that the filing of
a valid petition is "the operative event for the im-
position of strict employer neutrality in rival union
initial organizing situations." Accordingly, we held
in that case that we would "no longer find 8(a)(2)
violations in rival union, initial organizing situa-
tions where an employer recognizes a labor organi-
zation which represents an uncoerced, unassisted
majority, before a valid petition for an election has
been filed with the Board." In this case, while
NABET sought to be recognized by the Respond-
ent as the collective-bargaining representative of
the Respondent's employees, it did not file a peti-
tion for an election among such employees at any
time
before
the
Respondent's
recognition
of
IATSE. Thus, we find that an essential element of
an 8(a)(2) violation under the Bruckner decision is
not present here.4
' Counsel for the General Counsel and the Charging Party both argue
that the Respondent is not relieved of liability under the Bruckner analy-
sis because the evidence does not demonstrate IATSE's majority status at
the time of IATSE's recognition. This argument misconstrues the nature
of an 8(aX2) violation under the reevaluated Midwest Piping doctrine and
erroneously seeks to impose upon the Respondent the burden of disprov-
ing an unestablished violation. Under the Midwest Piping doctrine, lack of
majority status is not a necessary element of proof of the violation, and
proof that the recognized union possesses majority support is not a de-
fense to the alleged violation. See, e.g., Bruckner, supra. Recognition of a
union that does not possess majority status is a separate theory of viola-
tion under Sec. 8(aX2) and it is well established that it is the General
Counsel's burden to prove the absence of majority status to support such
theory. Walker's Midstream Fuel d Service Co., 208 NLRB 158 (1974);
American Beef Packers, 187 NLRB 996 (1971). In this case, inasmuch as
IATSE's majority status was not placed in issue since the General Coun-
sel neither alleged nor sought to prove that IATSE lacked majority
status at the time of recognition, the Respondent was not required to
demonstrate IATSE's actual majority status.
436
FILM CONSORTIUM
Further, we find, contrary to the judge, that the
facts of this case do not support an 8(a)(2) violation
under the Lyndale rationale. Lyndale also involved
a rival union initial organizing situation. In that
case, the respondent deflected a union's demand for
recognition, accompanied by an offer to prove ma-
jority status through a card check, by asserting that
it was not at full production and that "any further
action would appear to be very premature." Ap-
proximately a month later, however, the respond-
ent recognized another union on the basis of a card
check and entered into a collective-bargaining
agreement with that union, despite the fact that the
employee complement had not appreciably
in-
creased and was still about one-third the level of its
ultimate size. In finding that the respondent therein
accorded preferential treatment and material assist-
ance to the second union in violation of Section
8(a)(2), we pointed to the pretextual and misleading
representations made by the respondent to the first
union, which representations were found to have
induced inactivity on the part of the first union and
aided in the removal of an interested rival union
from consideration. We also pointed to the repon-
dent's failure to notify the first union of its inten-
tion to determine the representation question by af-
fording the other union a card check.
Here, it was not shown that the Respondent
made statements or otherwise led NABET to be-
lieve that circumstances existed to preclude repre-
sentative status at the time when NABET first re-
quested recognition. Nor do we view the Respond-
ent's course of conduct-in indicating that it would
attend multiemployer bargaining negotiations as an
observer; in attending one such bargaining session
as an observer; in requesting, for business purposes,
a letter from NABET stating that it was a "union
firm"; and in failing to question NABET's majority
status when NABET requested it to sign a newly
negotiated multiemployer contract-as sufficient
basis for finding that the Respondent affirmatively
and pretextually misled NABET. While NABET
may have chosen to interpret the Respondent's
conduct as indicating the possibility of recognition,
the facts, as found by the judge, show that the Re-
spondent at no time agreed to recognize or recog-
nized NABET. Further, the evidence does not es-
tablish that NABET and IATSE presented the Re-
spondent with the same set of circumstances in re-
sponse to which the Respondent rejected the
claims of one Union and accepted those of the
other. NABET was not conclusively shown to
have offered to prove its majority status or to have
presented the Respondent with evidence of its sup-
port. Moreover, several weeks prior to IATSE's
recognition, the Respondent notified NABET of
IATSE's rival claim and advised NABET that it
would consider recognizing IATSE if IATSE
could verify its majority status. s
In sum, we find that the evidence does not show
8(a)(2) assistance or interference under a Midwest
Piping theory, as alleged, or under the rationale of
Lyndale, as found by the judge, and we shall, ac-
cordingly, dismiss the complaint in its entirety. 6
ORDER
The complaint is dismissed.
s Chairman Dotson and Member Hunter agree that the instant case is
factually distinguishable from Lyndale Mfg. Corp., supra. However, their
agreement in this regard should not be understood as necessarily indicat-
ing agreement with the ultimate holding of the Board in Lyndale itself.
6 In the absence of an 8(a)(2) violation, there is no longer any basis for
the alleged 8(a)(3) violation
DECISION
STATEMENT OF THE CASE
MAURICE M. MILLER, Administrative
Law Judge:
This case was submitted, upon a stipulated record, fol-
lowing a hearing held in Los Angeles, California, on De-
cember 10, 1981. Upon a charge and amended charge,
filed on November 16 and December 20, 1979, respec-
tively, by the National Association of Broadcast Em-
ployees and Technicians, AFL-CIO, CLC, Local 531,
designated as Complainant Union herein, the General
Counsel of the National Labor Relations Board, through
the Regional Director for Region 31 of the Board, had
caused a complaint and notice of hearing dated January
23, 1980, to be issued and served on The Film Consorti-
um, Inc., designated as Respondent herein. Respondent
was charged therein with the commission of unfair labor
practices within the meaning of Section 8(aX1), (2), and
(3) of the National Labor Relations Act, as amended. 61
Stat. 136, 73 Stat. 519, 88 Stat. 395. Specifically, the
General Counsel had charged that Respondent had
become privy to a collective-bargaining agreement with
International Alliance of Theatrical Stage Employees
and Moving Picture Machine Operators of the United
States and Canada, designated as IATSE herein, despite
prior knowledge that Complainant Union (NABET) was
then actively seeking to represent Respondent's employ-
ees covered by the agreement noted, which, inter alia,
contained a union-shop provision requiring such employ-
ees to become IATSE members. Respondent's answer,
duly filed, had conceded certain factual allegations
within the General Counsel's complaint, but had denied
the commission of unfair labor practices.
Pursuant to notice, a hearing with respect to this
matter was convened before Administrative Law Judge
David P. McDonald on June 10, 1980; the General
Counsel, Respondent, Complainant Union, and IATSE
were represented by counsel. The parties then entered
into a "Stipulation of Facts" for submission directly to
the Board. The Administrative Law Judge subsequently
437
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
filed his order transferring the matter to the Board for
disposition, consistent with the stipulation of the parties.
On May 27, 1981, however, the Board remanded this
matter to the Regional Director; subsequently, the matter
was reset for further hearing on December 10, 1981, as
previously noted.
At the hearing, convened pursuant to notice, the Gen-
eral Counsel and Respondent were represented by coun-
sel; Complainant Union was represented by its business
manager.
Consistent
with their requests,
conveyed
through the General Counsel's representative, counsel
for Complainant Union and IATSE, who had previously
noted appearances but who were not present when the
hearing reconvened, were recognized as counsel of
record so that they could file briefs should they consider
such filings required. All parties were afforded a full op-
portunity to participate, and to introduce evidence with
respect to pertinent matters. The parties thereupon pre-
sented the same stipulation of facts which they had pre-
viously proffered; all references to a proposed submission
of the stipulation directly to the Board for decision were,
however, deleted. The General Counsel's representative
declared, with the concurrence of all parties, that the
record thus constituted was considered sufficient to
permit a Board determination with respect to the ques-
tions presented, and that nothing further would be sub-
mitted. The General Counsel then presented oral argu-
ment. Since the hearing's close, Respondent's counsel
and Complainant Union's counsel have submitted briefs;
these briefs have been duly considered.
Upon the record herein, which compasses a stipulation
of facts supplemented by various relevant documents, I
make the following
FINDINGS OF FACT
I. JURISDICTION
Respondent is now, and has been at all times material
herein, a corporation duly organized under and existing
by virtue of the laws of the State of California with an
office and principal place of business located in Los An-
geles, California, where it is engaged in the production
and distribution of television commercials. In the course
and conduct of its business operations, Respondent annu-
ally sells and ships goods or services valued in excess of
$50,000 directly to customers located outside the State of
California. Respondent, in the course and conduct of its
business operations, derives gross revenues in excess of
$500,000 yearly.
Upon this record the parties have stipulated that Re-
spondent is now, and has been at all times material
herein, an employer within the meaning of Section 2(2)
of the Act, engaged in commerce and business activities
affecting commerce within the meaning of Section 2(6)
and (7) of the statute. Consistent with their factual stipu-
lations, hereinabove noted, I so find.
II. THE LABOR ORGANIZATIONS CONCERNED
Complainant Union, National Association of Broadcast
Employees and Technicians, AFL-CIO, CLC, Local
531, sometimes designated NABET herein, is now, and
has been at all times material herein, a labor organization
within the meaning of Section 2(5) of the Act. Likewise,
International Alliance of Theatrical Stage Employees
and Moving Picture Machine Operators of the United
States and Canada, herein called IATSE, is now, and has
been at all times material herein, a labor organization
within the meaning of Section 2(5) of the statute. Both
labor organizations admit certain of Respondent's em-
ployees to membership.
111. THE UNFAIR LABOR PRACTICES CHARGED
A. Issue
Within his brief Complainant Union's counsel correct-
ly defines the single, basic question which must be re-
solved herein. That question is: Did Respondent violate
Section 8(a)(l), (2), and (3) of the Act by granting recog-
nition to and entering into a collective-bargaining agree-
ment with IATSE, which agreement contained a union-
security clause requiring membership in IATSE, not-
withstanding the existence of a real question concerning
representation among the employees in the unit covered
by said agreement and while Respondent knew that
NABET was actively seeking to represent said employ-
ees? With respect thereto, the General Counsel contends,
of course, that affirmative responses would be warranted.
Respondent argues, however, that its recognition of
IATSE's representative status, followed by its written
agreement to be bound by a multiemployer collective-
bargaining contract then in force between IATSE and
more than 400 firms in the motion picture, television, and
television commercial industry, should not be considered
violative of statutory mandates. In this connection Re-
spondent contends, basically, that no "real question con-
cerning representation" had been effectively raised with
respect to its employees prior to its memorialized con-
sent to be bound by IATSE's contract. Alternatively,
Respondent suggests that, while NABET might arguably
have pressed its claim with respect to Respondent's pur-
ported prior recognition of its representative status
through appropriate procedures before the firm consent-
ed to coverage under IATSE's multiemployer contract,
Complainant Union's failure to press that claim in a
timely fashion constituted a relinquishment of its right to
challenge the propriety of Respondent's contractual com-
mitment.
B. Facts
1. Complainant Union's purported recognition
demand
On or about April 11, 1979, Louis Favara, NABET's
business manager, by telephone, invited Chuck Sloan,
Respondent's president, to lunch. A luncheon meeting
was held on or about May 2, 1979. With respect to their
luncheon
conversation,
the
parties
have
stipulated
Favara would testify that Sloan was told all of Respond-
ent's employees were NABET members and that he
asked Sloan to recognize NABET and sign a contract
with his organization covering Respondent's employees.
Sloan, however, would testify, so the parties have stipu-
lated, that there was no discussion about employee union
438
FILM CONSORTIUM
preferences or membership, and that Favara did not then
request recognition. For present purposes, however,
whatever conflict their respective testimonial recollec-
tions, if proffered herein, might have revealed need not
be resolved. All parties agree that on this occasion
Favara did not offer to prove Complainant Union's ma-
jority representative status through a check of authoriza-
tion cards or otherwise.
Within a letter directed to Respondent's president
dated July 19, 1979, and delivered to Respondent's place
of business by certified mail the following day, Favara
recapitulated purported developments subsequent to their
May 2 luncheon meeting. He mentioned a purported
post-May 2 discussion with respect to Respondent's
answer regarding his organization's purported demand
for recognition, commented that President Sloan's reac-
tion had then been "favorable" so far as recognition was
concerned, and reported his recollection that Respond-
ent's president had informed him they would "get to-
gether" some time later to "finalize" their negotiations.
Stating that his efforts to contact Sloan following their
discussion had been unavailing, Favara declared that,
unless he heard from Respondent's president within 7
days, he would be "obliged" to file a representation peti-
tion with the Board. No stipulations have been proffered
for the present record regarding Favara's purported post-
May 2 discussion with Sloan described within the busi-
ness manager's letter. Complainant Union's business man-
ager may have intended a recapitulation of their May 2
luncheon discussion merely. For present purposes, how-
ever, the letter's proffered summary with respect to their
purported discussion, regardless of when it took place,
must be considered documentary hearsay merely. The
stipulated record herein reflects no written or verbal
reply specifically calculated to confirm or contradict Fa-
vara's July 19 narrative recitals vouchsafed by Respond-
ent's president. The General Counsel, Respondent, and
IATSE have, however, stipulated that:
At no time did Respondent recognize or agree to
recognize NABET as exclusive bargaining repre-
sentative of Respondent's employees.
Complainant Union does not currently "agree" with
these three parties regarding the stipulation noted. For
present purposes, however, the General Counsel's con-
currence with particular reference to that stipulation
must be considered "binding" upon Complainant Union
herein. Borg-Warner Corp., 113 NLRB 152, 154 (1955).
When this case was heard, NABET's representative had
the right to introduce testimonial or documentary evi-
dence calculated to contradict the stipulation; Complain-
ant Union's sole proffer in this connection, however,
rests upon the purported narrative statements, clearly
self-serving in character, found within Favara's July 19
letter noted above. Those statements, herein character-
ized as hearsay, provide no reliable, substantial, or proba-
tive support, within my view, for factual determinations
contrary to the particular stipulation hereinabove noted,
with regard to which Complainant Union refuses to join.
On or about July 25, 1979, during a telephone conver-
sation between Sloan and Favara, Respondent's president
indicated that he would attend, as an observer, a negotia-
tion session or sessions between NABET and the Asso-
ciation of Independent Commercial Producers, designat-
ed as AICP herein. Representatives of Complainant
Union and the multiemployer group designated were, so
the stipulated record shows, then engaged in negotiations
for a collective-bargaining agreement.
On or about August 3, 1979, Sloan telephoned Favara
and asked for a letter stating that Respondent is a union
company. When Favara asked why, Sloan responded
that a client of Respondent had demanded that a job, to
be done by Respondent, be done by union people under
a union contract. Favara agreed to send Sloan a letter
saying that NABET and Respondent were negotiating a
contract. The business manager's letter, dated August 3,
read as follows:
This letter will confirm or acknowledge to any in-
terested person or companies that your Company
and our Union are currently engaged in good-faith
bargaining for a labor agreement covering the film
production employees of your Company.
Thereafter, on or about August 6, Respondent's presi-
dent, so the stipulated record shows, attended the fourth
contract negotiating session between NABET and AICP
representatives. The General Counsel, Respondent, and
IATSE have stipulated herein that Sloan attended that
negotiation meeting as an observer merely. Consistent
with their tripartite stipulation, I so find.
Complainant Union, so the stipulations of record
herein show, has not "agreed" that Sloan had previously
indicated he would attend the NABET-AICP negotia-
tions solely in the capacity of an observer, or that his role
during the August 6 session noted had really been con-
fined to observation. Within a subsequent letter dated
September 26 and directed to Respondent's president,
which will be summarized further hereinafter, Favara de-
tailed his purported recollection contrariwise that Sloan
had, in fact, attended the NABET-AICP negotiating ses-
sion "as a member of the Negotiating Committee" repre-
senting the producers, and that he had there "involved"
himself in the bargaining process. As previously noted,
however, Favara's factual recitals set forth Within his
communications
directed
to Respondent's
president
clearly constitute hearsay. Absent some documentary or
testimonial "indication" reflective of Sloan's concur-
rence, or some acknowledgement that Favara's recitals
might be considered correct, those recitals carry no pro-
bative thrust sufficient to warrant rejection of the Gener-
al Counsel's stipulation noted above that Sloan's role
while attending the negotiations in question had been
confined to observation merely.
On or about September 19, 1979, Favara telephoned
Sloan and asked if he would sign the new contract
which NABET and AICP's individual member compa-
nies had entered into on August 28, 1979. Sloan replied
that he had reservations about the terms of the contract,
and that he would have to meet with his partners about
it.
439
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
2. Respondent's refusal to negotiate with
Complainant Union
On or about September 25, 1979, Favara again tele-
phoned Sloan; Respondent's president said that he could
not discuss signing a contract. Sloan advised Favara that
he had received a letter from IATSE claiming majority
status and demanding recognition. Further, he notified
Favara that Respondent was considering recognizing
IATSE, if IATSE was able to verify its majority status.
Complainant Union's business manager did not offer to
prove his organization's majority representative status.
However, within a letter dated September 26 and dis-
patched to Respondent's president by certified mail,
Favara claimed that, during their May 2 luncheon dis-
cussion, Sloan had "conceded" Complainant Union's ma-
jority representative status; that Respondent's president
had declared he would "bargain in good faith for an
agreement" between NABET and his firm; that Sloan
had promised to "get together" with him thereafter to
"finalize" negotiations; that he, Favara, had, within his
previous July 19 letter, demanded NABET's recognition
as exclusive bargaining representative for Respondent's
employees; and that, when queried on or about July 25
with respect to whether he wished to negotiate a collec-
tive-bargaining contract on their "one-to-one" basis or
would prefer to join the 14-member "industry Group"
with which NABET was currently negotiating, Sloan
had declared his preference for contract negotiations
which involved the designated industry group's bargain-
ing committee. Further, Favara claimed that his August
3 letter confirming Respondent's current engagement in
"good-faith bargaining for a labor agreement"
with
NABET had been sent at Sloan's request; that Respond-
ent's president had attended Complainant Union's August
6 contract negotiations "as a member of the Negotiating
Committee" representing the producers; and that Sloan
had then involved himself in the "give and take" of the
bargaining process sufficiently to persuade NABET's
representatives that Respondent was "committed" to ne-
gotiate a contract.
Complainant Union's business manager finally reported
that, during NABET's August 28 bargaining session with
the management negotiating committee noted, contrac-
tual agreements had been reached which various employ-
ers had subsequently executed. Citing his prior Septem-
ber 19 telephone call soliciting Respondent's signed ad-
herence to NABET's newly negotiated contract and
Sloan's purported responsive, comment that he had "var-
ious reservations" concerning that contract's terms-
which Respondent's president had followed with his
September 25 declaration that Respondent had mean-
while received a demand for recognition from IATSE
with respect to which the firm's counsel had suggested
he, Sloan, should make no further statements-Favara
declared Complainant Union's position as follows:
Accordingly, our position is that you properly rec-
ognized NABET as the sole and exclusive bargain-
ing representative; that you negotiated with our
Union and that you are obligated to execute the
Standard Basic Agreement or to continue to bargain
in good faith. If you don't or if you refuse, our
Union shall file appropriate charges of Unfair Labor
Practices, including refusing to bargain.
Within a reply letter dated and presumably dispatched
on September 28, which Favara received 3 days later,
counsel for Respondent stated his client's position with
regard to NABET's September 26 claims. Complainant
Union's business manager was notified that Respondent
had never within the past 6 months employed a regular
complement of film production employees within a unit
appropriate
for
collective-bargaining
purposes;
that
NABET had never within the 6-month period noted
claimed to represent a majority of Respondent's employ-
ees within such a bargaining unit; that Complainant
Union had never within the 6-month period noted prof-
fered evidence calculated to support a claim that some
majority of Respondent's employees within a unit appro-
priate for collective-bargaining purposes had designated
it as their bargaining representative; that Respondent had
never within the past 6 months recognized NABET as
the exclusive bargaining representative of any of its em-
ployees within a proper bargaining unit; that within the
period designated Respondent could not have "lawfully"
recognized NABET or any other labor organization as
the exclusive collective-bargaining representative of its
employees within a unit appropriate for collective-bar-
gaining purposes; and that Respondent had never within
the 6-month period noted participated in negotiations
with NABET or any other labor organization either
alone, jointly with other employers, or as part of some
multiemployer group. Respondent's counsel reported fi-
nally that his client had received a claim of majority
status, coupled with a recognition demand, from another
labor organization apparently based on the fact that a
number of "employees" whom Respondent had "hired"
and given "prospective start dates" for a new production
were "represented" by that organization.
Save for their September 26 and 28 letters herein
noted, neither Favara nor any other NABET repsesenta-
tive has had any communication of any sort with Re-
spondent's representative since the September 25 tele-
phone conversation between Favara and Sloan previous-
ly summarized herein.
3. Respondent's adherence to IATSE's contract
At all times material herein more than 400 employers
engaged in the motion picture, television, and television
commercial industry have negotiated, executed, and ad-
ministered multiemployer collective-bargaining
agree-
ments with IATSE as part of a single multiemployer bar-
gaining unit.
IATSE and the group of employers described above
had entered into a collective-bargaining
agreement,
herein called the Basic Agreement, effective February 1,
1976. Thereafter during 1979 they had negotiated a new
Basic Agreement for a 3-year term commencing August
1, 1979, and extending to and including July 31, 1982.
The agreement, currently in force, covers rates of pay,
wages, hours of employment, and other terms and condi-
tions of employment for employees within the following
unit:
440
FILM CONSORTIUM
Included: All employees in the crafts and classifica-
tions described in Articles III and IV of the Basic
Agreement employed by the employers described in
Article V of the Basic Agreement.
Excluded: All other employees, office clerical em-
ployees, guards and supervisors as defined in the
Act.
The agreement in question further contains a union-secu-
rity provision. In pertinent part that provision reads as
follows:
Producers severally agree that each and every em-
ployee hired by the Producer to perform services in
the County of Los Angeles, or hired by the Produc-
er in the County of Los Angeles to provide services
outside said County, in the crafts and classifications
of work described in Articles III and IV hereof,
shall be and remain a member in good standing of
the International Alliance and the appropriate West
Coast Studio Locals on and after the thirtieth day
following the beginning of his first employment.
On October 12, 1979, as the result of a demand for
recognition and check of authorization cards, Respond-
ent granted IATSE recognition as the exclusive collec-
tive-bargaining representative of Respondent's employees
employed in the crafts and classifications which the cur-
rent Basic Agreement covers. Respondent agreed and
consented further to be part of the multiemployer bar-
gaining unit covered by that Basic Agreement. On the
date noted, Respondent likewise agreed to become a
party to, and to be bound by, the Basic Agreement cited.
4. Subsequent developments
On November 1, 1979, NABET filed a representation
petition with the Board docketed as Case 31-RC-4640;
therein NABET sought an election within the bargaining
unit covered by the contract between Respondent and
IATSE previously referred to herein. A hearing pre-
mised upon NABET's petition, with respect to which I
take official notice, was convened on November 16;
therein,
IATSE's
intervention,
bottomed
upon
its
claimed contractual relationship with Respondent herein,
was permitted. Thereupon, Respondent contended that
its memorialized October 12 consent to be bound by
IATSE's Basic Agreement, currently in force, should be
considered a valid "contract bar" sufficient to mandate
dismissal of NABET's representation petition.
Counsel for that designated organization, however,
suggested that IATSE's contract should not be consid-
ered a bar. He contended: First, that IATSE had not sat-
isfied a condition precedent with respect to contract-bar
claims since it had not shown that it represented a major-
ity of Respondent's employees, properly cognizable as
compassed within a defined unit appropriate for collec-
tive-bargaining purposes, when Respondent consented to
be bound thereby; second, that IATSE's claimed majority
representative status, particularly on October 12, had
really been premised upon nothing more than purported
designations procured
from Respondent's employees
hired for a single project then in progress; and third, that
Respondent had failed to demonstrate persuasively that,
when it consented to be bound by IATSE's contract, the
firm's management representatives were "unaware" with
respect to NABET's currently active organizational
effort within Respondent's concerned employee comple-
ment. With matters in this posture, so NABET's counsel
argued, the legitimacy of Respondent's claimed contrac-
tual commitment should be litigated and determined
within the proceedings then in progress with respect to
his client's representation petition; counsel contended
that, should Respondent's contractual commitment then
be deemed illegal, that commitment could not properly
be considered sufficient to preclude a representation
vote.
When notified, however, that this Board's Regional
Director would not "allow" NABET's presentation of
evidence, within the representation proceeding, calculat-
ed to support its contentions hereinabove noted, and
would not determine the legitimacy of Respondent's pro-
claimed contractual commitment, specifically within that
proceeding, Complainant Union's counsel promptly filed
the charge herein previously noted.
With matters in this posture further proceedings with
respect to NABET's representation petition were there-
upon postponed "indefinitely" pending some disposition
of Complainant Union's charge and the General Coun-
sel's complaint herein premised thereon.
C. Discussion and Conclusions
The General Counsel's Contentions
The General Counsel contends herein that Respondent
committed 8(a)(l), (2), and (3) unfair labor practices
when it recognized IATSE's majority representative
status, bargained with that labor organization, and finally
negotiated contractual privity with it consistent with its
current
multiemployer
collective-bargaining
contract
which contained a union-security clause. Specifically,
Respondent should be considered to have flouted the
statute, so the General Counsel claims, because it pur-
sued this course of conduct despite its knowledge that
Complainant Union currently "had an interest" with re-
spect to representing Respondent's employees within the
particular bargaining unit crafts and classifications which
IATSE's Basic Agreement covered.
In pressing his contention, the General Counsel's rep-
resentative primarily relies upon this Board's Midwest
Piping doctrine, which, since its promulgation, has been
consistently followed with judicial concurrence vouch-
safed within a variety of factual contexts. Midwest Piping
Co., 63 NLRB 1060 (1945). Pursuant to that decisional
doctrine: An employer faced with conflicting claims of
two or more rival unions which give rise to a real ques-
tion concerning representation may not recognize or
enter into a contract with one of those unions until its
right to be recognized has finally been determined under
the special procedures provided by the Act. This Board
has, however, held consistently that Midwest Piping's
decisional principle cannot properly be relied upon to
challenge a concerned employer's contractual recogni-
tion of some labor organization's majority representative
-
441
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
status when a putatively conflicting representational "in-
terest" claimed by that labor organization's rival has
been found clearly unsupportable, specious, or lacking in
substance. Playskool, Inc., 195 NLRB 560 (1972), enf.
denied 477 F.2d 66 (7th Cir. 1973); cf. American Bread
Co., 170 NLRB 85, 87 (1968); Boys Markets, 156 NLRB
105, 107 (1965). Since the concerned employer's statuto-
rily grounded obligation to maintain a position of strict
neutrality when confronted with conflicting claims by
two or more rival unions will be considered generated
only when that employer has been confronted with some
"real question" concerning representation, the General
Counsel's representative must preliminarily demonstrate,
so these Board decisions hold, that the particular repre-
sentation claim which such a concerned employer chose
to disregard was, at the very least, worthy of being con-
sidered a colorable claim.
Mindful of these considerations, the General Counsel's
representative, basing his contention upon the stipulated
record, claims herein that Complainant Union's business
manager had initially notified Respondent's president
with regard to his organization's claimed representational
interest within his July 19 letter previously summarized
herein. Within that letter, however, NABET's business
manager, significantly, had proffered no claim in haec
verba that his organization then represented a majority
of Respondent's workmen currently or previously em-
ployed within a defined unit considered appropriate for
collective-bargaining purposes. Further, Favara had not
therein mentioned any prior May 2 claim that all Re-
spondent's employees were then NABET members. He
had merely referred to Complainant Union's supposed
demand for recognition, which he claimed to have pre-
sented previously; cited President Sloan's purportedly
"favorable" reaction with respect thereto; and recapitu-
lated Sloan's purported commitment to meet with him
later when they would "finalize" their negotiations. Con-
cededly, business manager Favara had not offered to
prove
Complainant
Union's majority
representative
status, through a check of authorization cards or other-
wise, during his prior May 2 luncheon meeting with Re-
spondent's president previously noted herein. Further,
nothing within the stipulated record would warrant a de-
termination that Favara had, between his May 2 lunch-
eon meeting with Sloan and his July 19 letter to Re-
spondent's president, reported his current readiness to
support Complainant Union's recognition demand with
"proof" calculated to demonstrate that organization's
majority representative status. Upon this record, Favara's
July 19 letter clearly constituted nothing more than a
current demand for NABET's recognition, presumably
bottomed upon some claim, sub silentio, with respect to
that organization's majority representative status which
its business manager had not, however, previously of-
fered to prove, and which had not theretofore been dem-
onstrated. Thus, while the letter in question might argu-
ably be considered effective notice vouchsafed to Re-
spondent with respect to NABET's representational in-
terest claim, that claim, standing alone, could hardly be
deemed "colorable" herein.
Complainant Union's business manager did declare
within his letter that President Sloan had reacted "favor-
ably" when confronted with his purported May 2
demand for recognition, and that future negotiations,
looking toward some "finalized" contract, had then been
promised. The correctness of Favara's parallel July 19
claims, however, has nowhere herein been conceded;
previously within this decision the General Counsel's
contradictory stipulation that Respondent has never spe-
cifically "recognize[d] or agree[d] to recognize" Com-
plainant Union as the exclusive representative of Re-
spondent's employees has, rather, been considered con-
clusive.
For present purposes, therefore, business manager Fa-
vara's July 19 letter, though it purported to put Re-
spondent on notice that Complainant Union considered
President Sloan committed to grant it recognition and
bargain for a contract, may properly be considered, as
previously noted, nothing more than a simple notification
directed
to Respondent's
president with regard
to
NABET's claimed "interest and desire to represent" cer-
tain of Respondent's employees.
Within his brief, indeed, Complainant Union's counsel
suggests nothing further; he contends merely that for 6
months NABET was "actively attempting" to have Re-
spondent recognize its claims with respect to bargaining
representative status.
In short, Respondent was confronted within Favara's
letter with a mere "naked" claim, proffered without sup-
portive proof; that Respondent had theretofore granted it
recognition with some consequent contract negotiations
promised. That simple claim, standing alone, has clearly
generated no bargaining "duty" binding upon Respond-
ent with respect to which Complainant Union could pos-
sible have sought Board validation consistent with Sec-
tion 9(c) and Section 8(a)(5) of the statute. Nor, standing
alone, without some acknowledgement concerning its
factual support or justification vouchsafed in Respond-
ent's behalf, could such a bare claim have generated a
cognizable question concerning representation with re-
spect to which Complainant Union could have properly
sought a Board-sponsored vote.
The General Counsel's representative suggests, howev-
er, that several "repeated contracts" between the parties,
subsequent to Favara's July 19 letter, sufficed to raise a
cognizable question with regard to NABET's representa-
tive status since those contacts, minimally, revealed Re-
spondent's
manifest
"knowledge"
that Complainant
Union's claim was not clearly unsupportable and lacking
in substance.
The stipulated record herein, within my view, prepon-
derantly supports the General Counsel's presumptive po-
sition; it reveals in this connection that:
(1) Within the week which followed his receipt of Fa-
vara's July 19 letter, Respondent's president did "indi-
cate" that he would attend a bargaining session or ses-
sions concerning NABET's contract negotiations with a
group of television commercial producers, which, how-
ever, he would "observe" merely.
(2) On or about August 3 President Sloan, for stated
business reasons, did request Complainant Union's busi-
ness manager to provide him with a letter stating that
Respondent was a so-called union firm. Pursuant to this
442
FILM CONSORTIUM
request, Favara promptly dispatched a letter to Respond-
ent's president which "confirmed or acknowledged" that
Respondent and NABET were currently engaged in
good-faith bargaining for a labor agreement.
(3) Some 3 days later President Sloan did, consistent
with his previously declared intent, attend a contract ne-
gotiating session between NABET and Association of In-
dependent Commercial Producers representatives; he did
not, however, participate in those negotiations,
but
merely "observed" them.
(4) When Favara subsequently telephoned Sloan on or
about September 19 with a query as to whether he
would sign the new NABET-Association contract which
had theretofore been negotiated, Respondent's president
did not question Complainant Union's majority repre-
sentative status, but, rather, professed "reservations"
with regard to that contract's terms, declaring that he
would have to "meet with his partners" regarding the
situation.
With matters in this posture, so the record shows,
Complainant Union's business manager, shortly thereaf-
ter, did claim within his September 26 letter previously
noted herein that Respondent had "properly recognized"
his organization's sole and exclusive bargaining repre-
sentative status, that Respondent had previously "negoti-
ated" with his organization, and that Respondent there-
fore was currently "obligated" to sign NABET's newly
negotiated multiemployer contract or continue good-
faith bargaining.
The General Counsel's representative, however, has
proffered no such broadly gauged contention. He argues
merely that when Respondent subsequently recognized
IATSE, bargained with that organization, and consented
to be bound by its Basic Agreement currently in force,
the firm did so with full knowledge, manifested through
its July-September course of conduct hereinabove noted,
that Complainant Union had a cognizable "interest" with
respect to representing the crafts and classifications cov-
ered by IATSE's contract. So construed, the General
Counsel's position, within my view, merits Board con-
currence.
Upon this record there can be no doubt that, contrary
to business manager Favara's declared "position" set
forth within his September 26 letter, no definite recogni-
tion of Complainant Union's majority representative
status, formal or de facto, can be inferred from President
Sloan's course of conduct following his receipt of Fa-
vara's July 19 letter. That course of conduct, however,
will clearly warrant a determination, consistent with the
General Counsel's contention previously noted, that,
before October 12, when Respondent purportedly con-
firmed the correctness of IATSE's majority representa-
tive claim and memorialized their prospective contrac-
tual relationship, President Sloan had manifested his
awareness that NABET was "seeking to represent" his
firm's employees within the crafts and classifications
which IATSE's Basic Agreement would cover.
Nevertheless, the General Counsel's proffered predi-
cate for his basic contention, that this case's disposition
should be considered governed by Midwest Piping's deci-
sional rationale, requires further consideration. Can it be
said upon this rather spare, stipulated record that Presi-
dent Sloan's patent knowledge with respect to Complain-
ant Union's representational interest claim sufficed to put
Respondent on notice that a genuinely cognizable "ques-
tion of representation" had been raised thereby which
should have given the firm pause when IATSE's con-
flicting claim was presented? This Board's response with
respect to that question, which may be discerned within
several persuasively relevant decisions, would seem to be
clear.
Initially, Complainant Union's representational interest
claim, proffered within Favara's July 19 letter, clearly
rested upon nothing more than the business manager's re-
iterated declarations with respect thereto; no signed des-
ignation cards or comparable proofs of employee inter-
est, purportedly supportive of NABET's claim, had ever
been reported, much less submitted, for Respondent's
consideration. This Board has, of course, disclaimed any
decisional requirement that some "numerical percentage"
showing of interest manifested by bargaining unit em-
ployees with respect to their union preference will be
considered a condition precedent when determinations
must be made regarding the existence of some cognizable
question
concerning
their
representation.
Playskool,
supra.
Clearly,
however,
some
persuasive
showing
beyond a labor organization's mere "naked" claim must
be made. Dillon's Companies, 237 NLRB 759, 761-762
(1978), and cases therein discussed. Upon this record,
which reveals NABET's failure to provide some objec-
tive "support for Favara's reiterated demands for recog-
nition, Complainant Union's bare claims, per se, cannot
be considered sufficient to put Respondent on notice that
a cognizable question concerning representation existed.
The General Counsel's representative, however, sug-
gests essentially that various "repeated contacts," previ-
ously noted herein, between Complainant Union's busi-
ness manager and President Sloan did more than reveal
Respondent's knowledge with respect to Favara's repre-
sentational claim; they made manifest, further, Respond-
ent's presumptive willingness to concede that NABET's
claim was really substantively justified. This Board,
within my view, may properly consider the General
Counsel's suggestion worthy of concurrence.
In this connection, the stipulated record, previously
noted, first reveals President Sloan's July 25 conceded
"indication"
that
he would
attend
a forthcoming
NABET-AICP contract bargaining session or sessions.
Though the record will support a determination that
Sloan said he would merely "observe" these contract ne-
gotiations, his declaration that he would attend them,
whether solicited or volunteered, clearly reflected a tacit
concession, at the very least, that NABET's majority rep-
resentative status might be demonstrable. Sloan's demon-
strated interest regarding the general course of NABET's
contract negotiations then in progress made sense, but
only because it necessarily conveyed a message, sub si-
lentio, that he considered Complainant Union's previous-
ly proffered representation claim somehow supportable.
If Respondent's president had not subjectively reached
that conclusion, he would hardly have deemed personal
"observations" with regard to NABET's contract talks
443
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
warranted, necessary, or calculated to serve Respond-
ent's purpose.
Further, President Sloan's August 3 letter solicitation
necessarily conveyed a similar message. Respondent can
hardly contend now that Complainant Union was there-
by being requested to provide a patently false representa-
tion regarding their contractual relationship calculated to
mislead some third party. Within my view, Sloan's re-
quest, considered within its situational context, would
warrant
a determination,
rather,
that
Complainant
Union's statutorily grounded right to negotiate a collec-
tively bargained contract with Respondent was essential-
ly being conceded.
When, consistent with President
Sloan's solicitation, Favara promptly provided him with
a letter which reported that Complainant Union and Re-
spondent were "currently engaged in good-faith bargain-
ing for a labor agreement," that document was presum-
ably considered acceptable; nothing within the stipulated
record would suggest, contrariwise, that it was rejected.
By his request, Respondent's president, so I find, had es-
sentially conceded the substantiality of Complainant
Union's representation claim, though his conduct might
not herein merit characterization as signifying formal rec-
ognition with respect thereto.
And, when within 3 days thereafter Sloan did "attend"
Complainant Union's fourth contract negotiating session
with various AICP representatives, his presence, though
limited to passive "observation" solely, necessarily con-
firmed the sub silentio message which his previous prom-
ise and letter request had conveyed.
With matters in this posture Complainant Union's busi-
ness manager, within my view, could reasonably con-
clude, as he clearly did, that Respondent's president had,
through his conduct, given suggestive "indications" that
NABET's prior demand for recognition had been grant-
ed or that some collectively bargained contract would be
obtainable without a confirmatory representation vote.
It should be noted in this connection that business
manager Favara had within his July 19 letter notified
Respondent that, absent some responsive communication
received within 7 days, NABET would file a representa-
tion petition. Sloan's declaration that he would attend a
forthcoming NABET-AICP contract negotiating session
or sessions had been vouchsafed within Favara's de-
clared time limit. No representation petition had thereaf-
ter been filed.
When confronted with comparable situations, particu-
larly in representation cases, this Board currently holds
that "where a nonincumbent union has refrained from
filing a petition to establish its representative status in re-
liance upon the employer's conduct indicating that rec-
ognition had been granted or that a contract would be
obtained without an election" that nonincumbent union's
representation claim will be considered substantial. See
Deluxe Metal Furniture Co., 121 NLRB 995, 998-999
(1958); compare Chicago Bridge & Iron Co., 88 NLRB
402, 404-405 (1950). And, if under such circumstances
the particular employer concerned nevertheless executes
a contract with another union, that contract will not bar
an election should the labor organization which had
theretofore been "lulled into inaction" subsequently file a
representation petition within some appropriate time.
Herein, so the stipulated record shows, Complainant
Union's business manager had, comparably, been given
reason to believe that his organization's representational
claim would not be contested, and that negotiations con-
firmatory of Respondent's prospective adherence to
NABET's newly negotiated master contract with various
Association members would shortly be concluded. Con-
sistent with that belief Favara was clearly entitled to
pursue Complainant Union's demand for some contrac-
tual consensus with Respondent without resorting to
Board processes. The record warrants a determination,
which I make, that he did so. Respondent has conceded,
for present purposes, that during their September 19 tele-
phone conversation Favara specifically requested Re-
spondent's president to sign Complainant Union's newly
negotiated contract. And Respondent's president certain-
ly did not then question Complainant Union's previously
claimed majority representative status; the record reveals
that he merely declared his "reservations" regarding the
proffered contract's substantive terms which he proposed
to discuss with his partners. Under these circumstances, I
find, Respondent could not properly disregard Complain-
ant Union's representational claim when confronted sub-
sequently with IATSE's letter claiming majority status
and demanding recognition. President Sloan's course of
conduct theretofore may not have constituted formal rec-
ognition with regard to NABET's majority representative
status. Clearly, however, Respondent had thereby effec-
tively conceded that Complainant Union's previously
proffered claim could not be considered clearly unsup-
portable or lacking in substance.
Between September 25 and October 12, when Re-
spondent granted IATSE recognition and consented to
be bound by that organization's Basic Agreement cur-
rently in force, a genuine question concerning represen-
tation, so I find, confronted the firm. And, consistent
with this Board's proclaimed Midwest Piping doctrine,
Respondent's recognition of IATSE's majority represent-
ative status, though purportedly based upon some "check
of authorization cards" which that organization had prof-
fered, must be considered illegal assistance which Sec-
tion 8(a)(2) and (I) of the Act proscribes.
Alternatively, Respondent's October 12 recognition of
IATSE's claim, coupled with its consent to become
"part of the multiemployer bargaining unit" which that
organization's Basic Agreement covered and to become
privy thereto, may properly be considered violative of
the statute, I find, without regard for Midwest Piping's
decisional rationale.
This Board has held that, wJien a concerned employer
recognizes and bargains with one of two competing
labor organizations without giving notice to one that it
intends to determine the representation question by af-
fording the other a card check to determine majority
support, such conduct accords the recognized organiza-
tion preferential treatment and material assistance which
Section 8(a)(2) and (1) of the statute proscribes. Lyndale
Mfg. Corp., 238 NLRB 1281 (1978); See Wintex Knitting
Mill, 223 NLRB 1293 (1976) (Member Walther, concur-
ring); Buck Knives, 223 NLRB 983, 986-987 (1976)
(Member Walther, concurring), enf. denied 549 F.2d
444
FILM CONSORTIUM
1319, 1320 (9th Cir. 1977); compare Intalco Aluminum
Corp. v. NLRB, 417 F.2d 36, 40 (9th Cir. 1969), which
the court of appeals, within its Buck Knives decision de-
nying enforcement, distinguishes. Upon this record, com-
parably, Board determinations would be warranted,
within my view, that President Sloan's course of conduct
constituted bad-faith dealing on Respondent's part with
Complainant Union herein. Respondent's concerned em-
ployees, particularly those who would have been consid-
ered compassed within a craft or classification unit con-
sensually deemed appropriate for collective-bargaining
purposes when NABET's business manager requested his
organization's recognition and was "led to believe" that
such recognition would be granted, were resultantly de-
prived of statutorily guaranteed rights.
Within their brief Respondent's counsel contend, how-
ever, that Lyndale's decisional rationale should not be
considered dispositive herein. They would, rather, have
this Board note that:
NABET was advised on September 25, 1979 that
I.A.T.S.E. had made a demand for recognition, and
that Respondent was contemplating granting such
recognition if I.A.T.S.E. verified its claim of major-
ity status. At this point. if it had been truly sincere in
its contention, NABET could have filed an election pe-
tition or it could have requested an equal opportunity
for a card check NABET did not take either course.
Instead, NABET was satisfied to rely upon its in-
correct position that Respondent had already grant-
ed voluntary recognition to it.
Thus, these unfair labor practice proceedings are
simply an unnecessary product of NABET's delib-
erate inactivity in the face of the notice afforded it
by Respondent. Had NABET filed an election peti-
tion between September 25 and October 12-an
option of which it certainly was aware . .. [no
contract-bar problem would have arisen] . . . and
the representation questions would have been re-
solved years ago. And had NABET offered to dem-
onstrate majority status Respondent would have un-
questionably viewed NABET's evidence. If this evi-
dence had been significant, Respondent would never
had granted voluntary recognition to I.A.T.S.E. and
NLRB representation proceedings expeditiously could
have taken their course without the possibility of a con-
tract bar issue.
The question thus boils down to whether, in light of
NABET's deliberate inactivity, Respondent was ob-
ligated to refrain from recognizing I.A.T.S.E. and
to demand
an
NLRB election,
even
though
I.A.T.S.E. had established its majority status to Re-
spondent's satisfaction. There is logically no reason
why this should be the case. Therefore, because
NABET's inaction between September 25 and Oc-
tober 12, 1979 either demonstrated that, in fact,
there was no "real question concerning representa-
tion" or constituted a waiver of the right to rely
upon Midwest Piping, Respondent's recognition of
the I.A.T.S.E. was not improper. [Emphasis sup-
plied.]
Nevertheless, for several reasons, discussed hereinafter,
Respondent's statement of position, within my view,
should not upon this record reasonably command Board
concurrence.
Herein, just as this Board's Lyndale decision notes, Re-
spondent's course of conduct subsequent to July 19 and
prior to September 25 had effectively "lulled [NABET]
into inaction" with respect to seeking a conceivable
Board-sponsored representation vote. Within its situa-
tional context, therefore, Complainant Union's failure to
file a representation petition between September 25 and
October 12 cannot reasonably be deemed a concession
that no "real question concerning representation" re-
quired current resolution, or that Respondent's determi-
nation to recognize IATSE's majority representative
status should be deemed dispositive. Whatever "inaction"
Complainant Union might be charged with subsequent to
Favara's conceded July 19 demand and prior to Re-
spondent's October 12 recognition of IATSE would logi-
cally seem to have been a consequence of President
Sloan's misleading course of conduct, which had clearly
been reasonably calculated to persuade NABET's busi-
ness manager that his organization's formal recognition,
and subsequent realization of contractual privity with
Respondent, would follow shortly. Under such circum-
stances, Respondent cannot legitimately rely now on
Complainant Union's failure to press for a representation
vote or bipartite card check to justify its subsequent rec-
ognition of that organization's purported rival.
It should be noted in this connection that, with refer-
ence to film industry work and particularly television
commercial production, this Board has heretofore found
that:
...
crews are hired for a particular production,
sometimes only for a day's work, and then laid off
without any promise of reemployment. When work
is again available, the employer recalls those who
had proved satisfactory in the past. [Meanwhile
these individuals often work for other employers
within the industry.]
Necessarily, therefore, bargaining units within the trade,
compassing workers in designated job classifications,
have been defined within
Board decisions
broadly
enough to guarantee self-determination with respect to
union representation not merely for workers currently
employed, but, likewise, for laid-off workers previously
hired "who have a reasonable expectancy of further em-
ployment" with their former employer. See American
Zoetrope Productions, 207 NLRB 621, 622-623 (1973);
Medion, Inc., 200 NLRB 1013, 1014 (1972). To accom-
plish this, particularly when devising "eligibility formu-
las" required with respect to prospective representation
votes, this Board has most recently recognized the requi-
site "bargaining unit" status shared by workers:
. . . employed . . . on at least two productions
[during a 1-year period preceding the issuance of
the Board's Decision in the case] and who were not
terminated for cause or quit voluntarily prior to the
445
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
completion of the last job for which they were em-
ployed.
See American Zoetrope Productions, supra; cf. Medion,
Inc., supra, in this connection. This formula, when relied
upon to define the particular constituency whose desires
with respect to union representation must be determined
either through a Board-sponsored election or within
some properly maintained complaint proceeding, could,
and would be likely to, produce, at different times, cogni-
zable groups of concerned workers differing significantly
with respect to size and the particular personnel com-
passed therein.
Thus, when President Sloan notified Complainant
Union's business manager during their September 25 tele-
phone conversation that Respondent then was "consider-
ing" recognizing NABET's rival, his declaration may
conceivably have found Complainant Union burdened
with a possibly "stale" representative showing bottomed
solely upon designation cards which had theretofore
been signed by Respondent's employees, newly hired, for
some commercial's production 3 or 4 months previously
or by former workers terminated prior thereto with some
presumably reasonable expectancy of rehire. And, since
President Sloan's conduct had effectively persuaded
Complainant Union's business manager, between July 19
and September 25 particularly, that no promptly filed
representation
petition bottomed upon some recent
"showing of interest" would be necessary, Respondent
cannot now legitimately contend, within my view, that
NABET's failure to request a late September or October
1979 election, or card check, justified its demonstrated
disregard for Complainant Union's reiterated representa-
tional interest claims.
Within his September 28 letter, previously noted
herein, Respondent's counsel had notified Complainant
Union's business manager that IATSE's pending demand
for recognition was "apparently" based upon that organi-
zation's representation of certain workers who had re-
cently been "hired by the Film Consortium and given
prospective start dates" for a new production. Confronted
with this presumably authorized report, business manager
Favara could have reasonably concluded, so I find, that
a late September or October 1979 representation vote or
designation card check, wherein Complainant Union
would be constrained to rely upon some conceivable
"showing" reflective of worker support manifested 3 or 4
months previously within a definable "bargaining unit"
whose constituent employee members might have in the
meantime been terminated, would have provided no ef-
fective remedy for the situation created by Respondent's
prior pretextual representations.
With matters in their present posture I would find
upon this record that President Sloan's course of con-
duct, previously noted herein, had effectively misled
Complainant Union's business manager with regard to
Respondent's intentions; that Complainant Union's conse-
quent failure to file a timely July 1979 representation pe-
tition had been "induced" thereby; that Respondent's
crew complement then at work, plus former employees
who might then be enjoying some reasonable expectancy
with respect to rehire, had resultantly been deprived of
statutorily guaranteed rights; and that Respondent, when
it subsequently granted IATSE preferential treatment and
material assistance by granting it recognition and by
adopting its contract without regard for NABET's previ-
ously acknowledged representational interest, violated
Section 8(aK2) and (1) of the statute.
Since IATSE's Basic Agreement contained a union-se-
curity clause, Respondent's current and prospective em-
ployees covered thereby have further been subjected to
discrimination, statutorily proscribed, calculated to en-
courage their membership in that designated labor orga-
nization. See Lyndale Mfg. Corp., 238 NLRB 1281, 1284
(1978); compare Hillcrest Nursing Home, 251 NLRB 59
(1980), in this connection. This Board, within my view,
should so find.
IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES
UPON COMMERCE
The activities of Respondent set forth in section III,
above, since they occurred in connection with the oper-
ations described in section I, above, have a close, inti-
mate, and substantial relationship to trade, traffic, and
commerce among the several States; absent correction,
they would tend to lead to labor disputes burdening and
obstructing commerce and the free flow of commerce.
CONCLUSIONS OF LAW
In view of these findings of fact, and upon the entire
record in this case, I make the following conclusions of
law.
1. Respondent, the Film Consortium, Inc., is, and at all
material times herein has been, an employer within the
meaning of Section 2(2) of the Act, engaged in com-
merce or business activities affecting commerce within
the meaning of Section 2(6) and (7) of the Act, as
amended.
2. Complainant Union, National Association of Broad-
cast Employees and Technicians, AFL-CIO, CLC,
Local 531, and the Party to the Contract, International
Alliance of Theatrical Stage Employees and Moving Pic-
ture Machine Operators of the United States and Canada,
are, and at all times material herein have been, labor or-
ganizations within the meaning of Section 2(5) of the
Act, as amended.
3. By recognizing IATSE on October 12, 1979, as the
sole bargaining representative of its employees, by con-
senting, further, to be part of the multiemployer bargain-
ing unit which IATSE's Basic Agreement then in force
covered, by agreeing to become a party to, and to be
bound by, that agreement, and by thereafter maintaining
in effect, and complying with, the provisions of that
agreement, all at a time when a question concerning the
representation of its employees existed, Respondent has
rendered, and continues to render, unlawful assistance
and support to IATSE, and has interfered with, re-
strained, and coerced, and continues to interfere with, re-
strain, and coerce, its employees in their exercise of Sec-
tion 7 rights contrary to Section 8(a)(2) and (1) of the
Act, as amended.
4. By consenting to become bound by IATSE's Basic
Agreement, previously mentioned, containing a union-se-
FILM CONSORTIUM
curity clause, and by maintaining that Basic Agreement
in effect, Respondent has discriminated, and continues to
discriminate, in regard to the hire and tenure and terms
and conditions of employment of its employees, thereby
encouraging membership in a labor organization contrary
to Section 8(a)(3), (2), and (1) of the Act, as amended.
5. The several unfair labor practices herein specified
are unfair labor practices affecting commerce within the
meaning of Section 2(6) and (7) of the Act, as amended.
THE REMEDY
Since I have found that Respondent did engage, and
continues to engage, in certain unfair labor practices
which affect commerce, I shall recommend that it be or-
dered to cease and desist therefrom, and to take certain
affirmative action, including the posting of appropriate
notices, designed to effectuate the policies of the Act, as
amended.
It will be recommended that Respondent be ordered to
withdraw and withhold recognition from IATSE as the
representative of its employees unless and until IATSE
shall have demonstrated its majority status pursuant to a
Board-conducted
election among
the employees in-
volved. It will also be recommended that Respondent be
ordered to cease giving effect to IATSE's Basic Agree-
ment, by which Respondent consented to be bound on
October 12, 1979, or any renewal, modification, or exten-
sion thereof.
Normally, whenever some employer's statutorily pro-
scribed conduct has included conduct calculated to
coerce employees with respect to dues payments, initi-
ation fee payments, or other payments to an assisted
labor organization, reimbursement of such payments will
be required. Board and court precedents, however, pre-
clude as punitive the application of such a broad reim-
bursement remedy where there is no evidence that em-
ployees were coerced into signing authorization cards for
the unlawfully assisted union. See Unit Train Coal Sales,
234 NLRB 1265 (1978), and cases cited in footnotes 1
and 2 therein. In this case, the stipulated record provides
no warrant for a determination that IATSE's signed au-
thorization cards, procured from various workers who
had allegedly been "hired ...
and given prospective
start dates" prior to October 12, 1979, had been procured
through coercion. The reimbursement remedy, neverthe-
less, remains appropriate with regard to those employees,
if any, who may have been hired after Respondent's Oc-
tober 12, 1979, consent to be bound by IATSE's Basic
Agreement and who were required to join IATSE pur-
suant to the union-security provision therein. It will be
recommended, therefore, that Respondent be ordered to
reimburse such employees for all initiation fees, dues, or
other moneys paid by them, or withheld from their
wages, pursuant to the union-security
provision in
IATSE's Basic Agreement, hereinabove noted, or in any
extension, renewal, modification, or supplement thereof
or in any superseding agreement.
Nothing contained herein should, however, be con-
strued as requiring Respondent to vary the wages, hours,
seniority provisions, or other substantive terms of em-
ployment which Respondent may have established in the
performance of the above-mentioned Basic Agreement or
to prejudice the assertion by its employees of any rights
that they may have thereunder.
The 8(a)(3) violation herein found may properly be
considered technical and derivative in nature. Respond-
ent has been found in violation of Section 8(a)(3) based
solely upon the presence of a facially lawful union-secu-
rity clause within a collective-bargaining contract with
respect to which the firm consented to be bound in vio-
lation of Section 8(a)(2). Under these circumstances no
broad "in any other manner" cease-and-desist order
should be considered warranted. Unit Train Coal Sales,
supra. Respondent should therefore be required merely
to cease and desist from "in any like or related manner"
interfering with, restraining, or coercing employees with
respect to their exercise of rights statutorily guaranteed.
[Recommended Order omitted from publication.]
447