351 NLRB 975
Windsor Convalescent Center of North Long Beach
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
351 NLRB No. 44
975
S&F Market Street Healthcare LLC d/b/a Windsor
Convalescent Center of North Long Beach and
Service Employees International Union, Local
434B1 and Annie Moss and Tara Smith.
Cases
21–CA–36422, 21–CA–36645, and 21–CA–36650
September 30, 2007
DECISION AND ORDER
BY MEMBERS LIEBMAN, SCHAUMBER, AND KIRSANOW
On January 31, 2006, Administrative Law Judge Lana
H. Parke issued the attached decision. The General
Counsel, the Union, and the Respondent each filed ex-
ceptions and a supporting brief; the General Counsel and
the Union each filed an answering brief to the Respon-
dent’s exceptions, and the Respondent filed an answering
brief to the exceptions of the General Counsel and the
Union. The General Counsel filed a reply brief to the
Respondent’s answering brief, and the Respondent filed
reply briefs to the General Counsel’s and the Union’s
answering briefs.
The National Labor Relations Board has delegated 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 has decided to
affirm the judge’s rulings,2 findings,3 and conclusions
only to the extent consistent with this Decision and Or-
der.4
This case involves the Respondent’s takeover of Can-
dlewood Care Center, a skilled nursing facility in North
Long Beach, California, on July 1, 2004.5 The complaint
alleged that the Respondent was a successor to Candle-
wood Care Center and that it violated Section 8(a)(5) and
(1) by refusing to recognize and bargain with the Union,
1 We have amended the caption to reflect the disaffiliation of the
Service Employees International Union from the AFL–CIO effective
July 25, 2005.
2 The Respondent excepts that the judge erred in granting the Gen-
eral Counsel’s and Charging Party’s motion to strike documents from
the Respondent’s posthearing brief. The Respondent presented no
argument in support of this exception. Thus, in accordance with Sec.
102.46(b)(2) of the Board’s Rules and Regulations, we find that the
Respondent’s exception should be disregarded. See Holsum de Puerto
Rico, Inc., 344 NLRB 694, 694 fn. 1 (2005), enfd. 456 F.3d 265 (1st
Cir. 2006).
3 The Respondent has excepted to some of the judge’s credibility
findings. The Board’s established policy is not to overrule an adminis-
trative law judge’s credibility resolutions unless the clear preponder-
ance of all the relevant evidence convinces us that they are incorrect.
Standard Dry Wall Products, 91 NLRB 544 (1950), enfd. 188 F.2d 362
(3d Cir. 1951). We have carefully examined the record and find no
basis for reversing the findings.
4 We will amend the remedy and modify the judge’s recommended
Order to reflect the additional violations we find herein, and in accor-
dance with Planned Building Services, 347 NLRB 670 (2006). We will
substitute a new notice in conformity with the Order as modified.
5 All dates are in 2004, unless otherwise stated.
Service Employees International Union, Local 434B,
after July 1. The Respondent denied that a bargaining
obligation attached on July 1, arguing that it did not hire
a full complement of employees until October 1 because
it hired former Candlewood employees only on a tempo-
rary basis. Alternatively, the Respondent argued that it
had no successorship obligation as to one of the two bar-
gaining units at issue (the LVN unit) because, under the
Respondent’s management, the bargaining-unit employ-
ees are all supervisors and hence the LVN unit was no
longer an appropriate unit. As explained below, we
adopt the judge’s findings that the Respondent is a suc-
cessor employer with a bargaining obligation as of July
1, and that it violated Section 8(a)(5) and (1) by refusing
to recognize and bargain with the Union thereafter. Con-
trary to the judge’s decision, however, we find that the
Respondent additionally violated Section 8(a)(5) and (1)
by unilaterally changing terms and conditions of em-
ployment.
The complaint further alleged that the Respondent vio-
lated Section 8(a)(3) and (1) by (a) refusing to hire, (b)
suspending, and (c) terminating certain employees be-
cause of their protected, concerted, and/or union activi-
ties. We adopt the judge’s findings that the Respondent
violated the Act by suspending and/or terminating the
discriminatees as alleged. However, for the reasons
stated below, we find, contrary to the judge, that the Re-
spondent additionally violated Section 8(a)(3) and (1) of
the Act by refusing to hire four union stewards.
Finally, as discussed below, we adopt the judge’s find-
ings that the Respondent violated Section 8(a)(1) by in-
forming employees that there was no union at its facility
or that its facility was nonunion.6
I. FACTS
The Respondent, Windsor Convalescent Center of
North Long Beach, operates skilled nursing facilities in
California under the “Windsor” name. Its business plan
is to attract high-acuity patients who qualify for high
insurance reimbursement rates.
Prior to July 1, Covenant Care Orange, Inc. (Covenant)
operated the North Long Beach facility under the name
Candlewood Care Center (Candlewood). Candlewood
and the Union had entered into two collective-bargaining
agreements; one covered nurses aides, CNAs, restorative
aides, orderlies, dietary employees, activity assistants,
and housekeeping employees (the Base unit), and the
other covered licensed vocational nurses (the LVN unit).
6 The complaint also alleged that the Respondent violated Sec.
8(a)(1) by the Respondent’s representative Kathleen Leonard telling
employees that they could no longer talk in the parking lot at the end of
their shifts. No exceptions were filed to the judge’s finding that Leo-
nard did not make the alleged statement.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
976
The Respondent acquired Candlewood and assumed
operations on July 1. Prior to the takeover, the Respon-
dent’s representatives Barry Dyches (vice president, risk
management) and Kathleen Leonard (director, human
resources) toured the facility and were dissatisfied with
the conditions there. Leonard recommended that the
Respondent overhaul the facility and replace all of the
staff. The Respondent came to realize, however, that its
plan to replace all of the staff prior to the takeover was
unrealistic, so it decided to rid itself of the “worst of the
worst” and to offer the remaining staff “temporary” em-
ployment not to exceed 90 days while it continued to
recruit new employees (both from its other facilities and
from the general public) to replace them.7 To this end,
Leonard directed Carol Spencer (director, staff develop-
ment) to identify those Candlewood employees that the
Respondent would not hire.
Spencer compiled two lists of problem employees.
The first was based on her independent review of em-
ployee files (the Spencer list). Two versions of the
Spencer list are in the record: General Counsel’s Exhibit
70 (an “incomplete” version of the list) and Respondent’s
Exhibit 82. The second list recorded Candlewood ad-
ministrator Carmen Hernandez’ assessment (the Hernan-
dez list). Spencer took notes as Hernandez told her
which employees she thought posed problems. The Her-
nandez list has heavy black dots adjacent to the names
Davenport, Haley,8 Smith, and Moss, and the latter name
bears the additional notation “steward.”9 The incomplete
version of the Spencer list (GC Exh. 70) proceeds alpha-
betically until the last three names, which are Smith,
Hailey, and Moss. Davenport, Hailey, Smith, and Moss
were all union stewards. Spencer provided both lists to
Leonard prior to July 1. At the end of June, Leonard,
Spencer, and Carren Chastek (regional director, clinical
services) interviewed Candlewood employees, including
those on the lists. The interviewers did not mention the
Union in any of the interviews.
The judge found that while Leonard, Spencer, and
Chastek told applicants that the Respondent was hiring
them as “temporary” employees, they also “conveyed the
clear understanding that Respondent was hiring them as
‘temporary’ employees in order to assess their skills and
abilities and that Respondent would review their work
7 According to the Respondent’s employee handbooks, “[t]emporary
employees are those who are hired on an interim basis to temporarily
supplement the work force or to assist in the completion of a specific
project. Employment assignments in this category are of a limited
duration.”
8 “Haley,” a misspelling, refers to employee Sharie Hailey.
9 Having reviewed the exhibits, we reject the Respondent’s assertion
that the notation next to Moss’ name is actually “Stewart,” a reference
to Dorothy Stewart, who kept the Respondent’s personnel files.
during the 90-day period and offer regular employment
to those who passed the review.” No changes to terms
and conditions of employment were discussed with em-
ployees during the interviews (other than the imposition
of a “review” period), nor were employees invited to
accept employment under specified new terms. The
judge further found that, after the interviews, the Re-
spondent mailed or hand-delivered written offers of
“temporary employment,” dated June 30, to those Can-
dlewood employees it hired. These offers stated that, as
a “temporary employee,” the employee was not eligible
for company benefits, and that “[o]ther terms and condi-
tions of your employment will be set forth in Windsor’s
personnel policies and its employee handbook.”
The
Respondent did not otherwise give the carry-over em-
ployees notice of any specific changes that would be
made to their terms and conditions of employment.
Edna Colter, Tracy Davenport, Sharie Hailey, Gladys
Matos, Annie Moss, Debra Smith, and Nana Williams
served as union stewards at Candlewood. Colter, Hailey,
Moss, and Smith were listed as problem employees on
both the Spencer and the Hernandez lists.10 Because the
Respondent was having trouble meeting its staffing
needs, it hired almost half of the problem employees on
the lists, but it did not hire those four. Although the Re-
spondent denied knowing, prior to July 1, which employ-
ees were union stewards, the judge discredited this de-
nial.11
On July 1, the Respondent employed approximately
120 individuals at the North Long Beach facility, over 75
percent of whom were former Candlewood employees.
Ten to 12 were non-Candlewood recruits, whom the Re-
spondent considered “probationary” or “regular” em-
ployees. At a July 9 staff meeting, the Respondent dis-
tributed employee handbooks to “temporary” employees;
probationary employees were given a handbook in their
employment packet. The handbooks differed in that
those distributed to temporary employees listed only le-
gally mandated benefits, whereas those given to proba-
tionary employees listed additional benefits the employ-
ees would receive as “regular” employees after complet-
ing their 90-day probationary period. During the initial
10 Davenport, Williams, and another employee, Nereida Jimenez
(who was not a union steward), were hired on July 1. Davenport’s
name appeared on both lists; Williams’ and Jimenez’ names appeared
on the Spencer list only.
11 In finding knowledge, the judge observed that the Respondent
hired Hernandez, assumed that the hiring occurred before July 1, and
inferred that Hernandez communicated union-related information to the
Respondent, including the identity of union stewards. The judge also
relied on the heavy black dots next to the names of four union stewards
on the Hernandez list, and the additional “steward” notation next to one
of those names.
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
977
90-day period, however, temporary and probationary
employees enjoyed the same terms and conditions of
employment. In addition, temporary (i.e., former Can-
dlewood) employees selected for regular employment did
not serve a probationary period. That is, upon the com-
pletion of 90 days of employment, temporary and proba-
tionary employees alike began receiving identical bene-
fits as regular employees.
Union Representative William Hirst sent the Respon-
dent letters, dated June 29 and July 1, apprising the Re-
spondent of the Union’s representational status and re-
questing a meeting. By letter dated July 7, the Respon-
dent rejected the Union’s request for recognition, stating
that the Union’s representational claim could only be
determined once the Respondent had reached a “repre-
sentative complement of regular employees.”
On July 1, the Respondent hosted a staff barbeque.
Union President Tyrone Freeman and Hirst attempted to
visit employees on the patio during the barbeque. Credit-
ing Hirst and employee Tara Smith, the judge found that
Leonard, in the employees’ presence, confronted Free-
man and Hirst, asked them to leave, and said that there
was “no union in the facility,” the facility was “not a
union building,” and that the Union “was not welcome
there.” When Freeman and Hirst refused to leave, Leo-
nard called the police. They left before the police ar-
rived.
On July 7, Spencer found employee Shronda Williams
cowering in an empty room. Williams told Spencer that
she was frightened because some employees were threat-
ening her and pressuring her to do something that she did
not want to do. Spencer reported this incident to Leo-
nard, who asked for a written statement; Spencer ob-
tained one and gave it to Leonard. Williams’ written
statement said that Smith, Davenport, and some other
people (identified verbally to Spencer as Nereida
Jimenez, Michelle Carrizalez,12 and Nana Williams) had
asked her to go to a union meeting. Leonard asked to
speak to Williams, but Williams insisted that she just
wanted to go home. Leonard then called Davenport,
Jimenez, Carrizalez, and Smith into her office and sum-
marily suspended them,13 along with Nana Williams
(who was not scheduled to work that day), pending in-
vestigation for harassing a coworker. The employees
asked for particulars of the accusation; Leonard refused
their request. By memo dated July 9, Leonard notified
Chastek that 14 employees would be replaced by
month’s end, including Davenport, Jimenez, and Nana
12 In her decision, the judge inadvertently misspelled Carrizalez as
“Cozalles.”
13 Although suspended, Carrizalez was not named in the complaint
because she did not cooperate in the investigation.
Williams. After subsequently interviewing Shronda Wil-
liams, Leonard determined that there had been no
wrongdoing and, nearly 2 weeks later, on July 20, rein-
stated the suspended employees with pay. The Respon-
dent’s policy is to investigate allegations of wrongdoing
within 24–72 hours.
On July 23, 3 days after they had been reinstated, Leo-
nard notified Tracy Davenport, Nana Williams, and Ne-
reida Jimenez that the Respondent no longer needed their
services. No further explanation of their discharge was
given to them.14 Also on July 23, the Respondent termi-
nated Union Steward Gladys Matos, who had not been
listed on either the Spencer or the Hernandez list, alleg-
edly because she had a confrontation with Hernandez
over a change to Matos’ work schedule.15 In addition,
during a staff meeting conducted on July 23, Leonard
told about 40 employees that the facility was “not a un-
ion building,” that the “employees were not union,” and
that, like other Windsor facilities, the facility was “un-
ion-free.”
Also in July, while the Union was trying to garner
support, the Respondent posted and distributed antiunion
flyers. The judge credited the testimony of Antoinette
Harris (activity director) that the Respondent, in man-
agement meetings, instructed its supervisors to watch for
and discourage union activity.
On August 10, the Respondent discharged Tara Smith,
purportedly for insubordination and absenteeism (feign-
ing illness to avoid working over the weekend). The
judge did not fully credit either Smith’s or her Supervisor
Jeanne Mawak’s account of the incidents leading up to
Smith’s termination. Based on the testimony she did
credit, the judge found that Smith argued with her super-
visors regarding her work assignment when she returned
to work on Monday, but that she did not leave the facility
or otherwise refuse to work. A few weeks after Smith
was discharged, Mawak gave a verbal warning to a CNA
for arguing with her supervisor over her assignment,
threatening to clock out, and reassigning herself.
In the 90 days following July 1, the Respondent de-
cided to retain certain temporary employees based on
their work performance, and it highlighted those em-
ployment offers at staff meetings and in newsletters. As
14 The fourth suspended employee, Tara Smith, was not discharged
on July 23. Smith testified that, about July 26, Hernandez told her that
“she [Hernandez] had put her butt on the line for my job, and just to
keep my mouth shut.” As discussed more fully below, Smith was
discharged on August 10. By that date, Hernandez had lost her job.
Hernandez did not testify. Smith was not named on either the Spencer
list or the Hernandez list.
15 The judge credited Matos’ version of her discharge over Leo-
nard’s, including her specific denial that she had publicly argued with
Hernandez.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
978
of October 1, the Respondent had “transitioned” 30–40
temporary employees to regular status. These transi-
tioned employees were then given the same employee
handbooks that the probationary employees had been
given and did not have to serve a “probation” period.
Also following its takeover, the Respondent expended
approximately $500,000 on repairs and improvements to
the facility. One of the first improvements made by the
Respondent was to repaint the employee lounge and the
hallway where the union bulletin board was hanging, at
which time it removed the bulletin board.16 Although the
facility had consistently sustained losses under Cove-
nant’s management, the Windsor facility began to turn
profits under the Respondent’s control.
II. THE 8(a)(5) ALLEGATIONS
A. Successorship and Refusal to Recognize and Bargain
Citing NLRB v. Burns Security Services, 406 U.S. 272
(1972), and Fall River Dyeing & Finishing Corp. v.
NLRB, 482 U.S. 27 (1987), the judge found that the Re-
spondent violated Section 8(a)(5) by refusing to recog-
nize and bargain with the Union since July 1. In Burns,
the Supreme Court held that a successor employer has a
duty to recognize and bargain with an incumbent union
where two factors are present: continuity of the enter-
prise and continuity of the work force. The judge found
that the first Burns factor, continuity of the enterprise,
was not in dispute, and the Respondent did not except to
that finding.
The judge further found that the second Burns factor,
continuity of the work force, also existed, despite the
Respondent’s labeling of the former Candlewood em-
ployees as “temporary.” The judge reasoned that, con-
trary to the definition of “temporary employee” in the
Respondent’s employee handbooks, the former Candle-
wood employees were not hired to temporarily supple-
ment the work force or assist in the completion of a spe-
cific project, nor were they given a definite termination
date. Rather, all had a prospect of continued employ-
ment based upon their performance. Given that the Re-
spondent’s temporary and probationary employees had
the same terms and conditions of employment during
their “introductory” period, and that temporary employ-
ees did not have to serve a probationary period if they
were retained, the judge found that the temporary em-
ployees “were in the same employment posture as Re-
spondent’s probationary employees.” Citing Sahara Las
Vegas Corp., 284 NLRB 337, 337 fn. 4, 342–344 (1987),
enfd. 886 F.2d 1320 (9th Cir. 1989), for the proposition
that a work force continuity determination is not deferred
16 After the walls had been repainted, the Respondent posted anti-
union flyers on the walls.
until after completion of a probationary period, the judge
reasoned that the Burns work force continuity require-
ment must be assessed as of July 1, the date the Respon-
dent began operating the facility. Because, on July 1,
both bargaining units were “overwhelmingly composed
of former Candlewood employees who had been repre-
sented by the Union,” the judge found that a bargaining
obligation attached as of that date.
We agree with this analysis. We find no merit in the
Respondent’s exceptions regarding the “temporary”
status of former Candlewood employees and the date a
“substantial and representative complement of regular
employees” was achieved.17
Accordingly, for the rea-
sons stated by the judge, we affirm the judge’s findings
that the Respondent incurred a Burns successor’s duty to
bargain with the Union as of July 1. As there is no dis-
pute that the Respondent thereafter failed and refused to
recognize and bargain with the Union, we affirm the
judge’s finding that the Respondent thereby violated Sec-
tion 8(a)(5).
We also affirm the judge’s ruling precluding the Re-
spondent from relitigating the supervisory status of its
LVNs. As stated above, the Respondent attempted to
introduce evidence purportedly showing that the LVNs
are statutory supervisors and, hence, that the LVN unit is
no longer appropriate. The judge ruled that all issues
regarding the appropriateness of the bargaining units
were resolved in a previous representation case and thus
excluded the Respondent’s proffered evidence. In adopt-
ing the judge’s ruling, we acknowledge the Respondent’s
argument that, regardless of what the LVNs’ duties may
have been under Candlewood, under the Respondent’s
operations the LVNs have the duties of supervisors.18
17 The General Counsel also filed exceptions, arguing that the judge
failed to rule on the alternate theory that, at the end of the 90-day pe-
riod, which the General Counsel maintains was September 29, a major-
ity of the Base unit was still composed of the predecessor’s employees.
However, the General Counsel acknowledged that there is no need to
reach this exception if the Board affirms the judge’s finding that the
Respondent became a Burns successor on July 1. Because we so find,
we find it unnecessary to pass on the General Counsel’s alternate the-
ory.
18 As the judge found, the supervisory status of the LVNs under
Candlewood’s management was previously litigated. As the judge
further found, in the absence of newly discovered or previously un-
available evidence or special circumstances, a respondent may not
defend against an 8(a)(5) allegation by relitigating issues that were or
could have been litigated in a prior representation proceeding. See,
e.g., Pepsi-Cola Bottlers of Atlanta, 267 NLRB 1100 (1983) (refusing
to allow relitigation where the successor challenged unit by claiming
that it inappropriately included supervisors). Although we acknowl-
edge the Respondent’s argument, along with our dissenting colleague’s
position below, we find no prejudicial error in the judge’s ruling pre-
cluding relitigation of the LVNs’ status here. As discussed more fully
below, a successor may unilaterally establish only those initial terms
and conditions of employment that were specifically announced prior to
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
979
We observe, however, that the Respondent remains free
to litigate that issue by filing a unit clarification peti-
tion.19
B. Unilateral Changes
The judge dismissed the complaint allegations con-
cerning unilateral changes. The judge found that the
Respondent did not violate the Act by setting initial
terms and conditions of employment because the Re-
spondent did not fall within the “perfectly clear” excep-
tion to the Burns rule that a successor employer has the
right to set new initial terms and conditions of employ-
ment without bargaining. Consistent with this finding,
the judge also found that the Respondent had no obliga-
tion to provide a union bulletin board, and thus it was not
unlawful to take it away in setting initial terms; rather,
the Respondent’s only obligation was to bargain over the
bulletin board after setting its initial terms.
The Respondent, the General Counsel, and the Union
each filed relevant exceptions. The Respondent, consis-
tent with its argument that it had no bargaining obliga-
tion whatsoever because it was not a successor employer,
excepts to the judge’s finding that it had an obligation to
bargain with the Union after July 1 over mandatory sub-
or simultaneously with the hiring of its work force; general and vague
statements portending future changes are not sufficient to establish
initial terms. Banknote Corp. of America, 315 NLRB 1041, 1045 fn. 5
(1994). Because there is no evidence that the Respondent announced
any changes to LVN duties prior to July 1, when its bargaining obliga-
tion attached, the Respondent would have had to bargain with the Un-
ion concerning any subsequent changes to LVN job duties. See, e.g.,
Boise Cascade Corp., 283 NLRB 462, 467 (1987) (holding work as-
signments to be mandatory subject of bargaining). Hence, in our view,
the Respondent should not be allowed to avoid its bargaining obligation
with respect to the LVN unit on the basis that it unilaterally changed
LVN duties, where those very changes would be unlawful.
19 While Member Schaumber agrees with his colleagues that the Re-
spondent was a successor to Candlewood and thus violated Sec. 8(a)(5)
when it refused to recognize and bargain with the Union regarding the
Base unit, he disagrees with their approval of the judge’s refusal to
consider evidence about the continuing appropriateness of the LVN
unit. The Respondent argued that, under its management policies, the
LVN-unit employees were statutory supervisors. Contrary to the
judge’s ruling, the status of the Respondent’s employees under its
unique operational structure could not have been raised in its predeces-
sor’s representation case. Cf. Hotel del Coronado, 345 NLRB 306, 307
(2005) (successor employer may not defend refusal-to-bargain charges
“by alleging matters that its predecessor could have raised” in an ear-
lier proceeding) (emphasis added). Accordingly, the judge erred in
refusing to consider this evidence relevant to the Respondent’s defense.
See Banknote Corp. of America, 315 NLRB 1041, 1043–1044 (1994)
(considering, but finding insufficient, evidence in support of successor
employer’s argument that operational changes rendered preexisting
bargaining units inappropriate). Deferral of this issue to a subsequent
representation proceeding precludes final disposition here of the re-
fusal-to-bargain charge insofar as it relates to the LVN unit. For these
reasons, Member Schaumber would remand this issue to the judge with
instructions to consider and make findings regarding the appropriate-
ness of the LVN unit.
jects of bargaining. Given our finding that the Respon-
dent is a successor employer with a duty to bargain after
July 1, we find no merit in that exception. The Respon-
dent also repeats its alternative argument, which the
judge accepted, that even if it is a successor, it is not a
“perfectly clear” successor;20 thus, according to the Re-
spondent, the judge correctly found that it could lawfully
establish initial terms and conditions of employment.
The General Counsel excepts to the judge’s finding
that the Respondent did not violate the Act by setting
initial terms and conditions of employment. The General
Counsel argues that, having found that a bargaining obli-
gation attached on July 1, the judge erred in failing to
find that the Respondent’s subsequent issuance of new
employee handbooks setting forth new terms and condi-
tions of employment violated the Act. The General
Counsel further argues that the Respondent’s contention
that it could lawfully implement new employee hand-
books as part of its initial terms and conditions of em-
ployment because its temporary employment offer stated
that “[o]ther terms and conditions of employment will be
set forth in . . . employee handbooks” is flawed because a
successor employer cannot rely on such a general state-
ment as an announcement of initial terms. The Union,
relying on Advanced Stretchforming Intl.,21 argues that
the judge, having found that the Respondent violated
Section 8(a)(1) by its “no union here” statements, failed
to recognize that the Respondent thereby forfeited the
20 The Respondent also argues, citing Monterey Newspapers, 334
NLRB 1019 (2001), that its inability to have its new employee hand-
books ready on July 1, does not detract from its stated intent to set new
initial terms and conditions of employment. In Monterey Newspapers,
the judge dismissed an allegation that a successor employer violated
Sec. 8(a)(5) by reclassifying employees from nonexempt to exempt
status for Fair Labor Standards Act purposes without bargaining. Mon-
terey Newspapers is not precedential as to this issue because there were
no exceptions to the judge’s dismissal of this 8(a)(5) allegation. Supra
at 1019 fn. 1. Moreover, Monterey is distinguishable. The judge found
that Spruce Up concerns (see discussion infra) were not present because
the reclassification was specifically raised during interviews and appli-
cants expressed no concerns; moreover, subsequent overtime payments
made in error and corrected upon discovery did not establish that the
successor had failed to lawfully establish initial terms. Supra at 1028–
1029. Here, employees consistently testified that no changes to terms
and conditions of employment were discussed with them during inter-
views, other than the imposition of a “review” period. Merely telling
employees that their work would be reviewed does not constitute a
clear announcement of changes to terms and conditions of employment.
As explained below, Member Schaumber disagrees with his col-
leagues’ characterization of the message the Respondent conveyed to
Candlewood interviewees. Nevertheless, he agrees that Monterey
Newspapers has no precedential value on this issue because there were
no exceptions to the judge’s dismissal of the relevant allegation in that
case.
21 323 NLRB 529, 530–531 (1997), enfd. 233 F.3d 1176 (9th Cir.
2000), cert. denied 534 U.S. 948 (2001).
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
980
Burns right to set initial terms. We find merit in the
General Counsel’s exceptions.22
Under Burns, supra at 294–295, a successor employer
is free to set the initial terms on which it will hire its
predecessor’s employees without first bargaining with an
incumbent union, unless it is “perfectly clear” that the
successor “plans to retain all” of the unit employees.
The Board’s lead case interpreting the “perfectly clear”
exception to a successor’s Burns right is Spruce Up
Corp., 209 NLRB 194 (1974), enfd. per curiam 529 F.2d
516 (4th Cir. 1975). There, the Board declined to find an
8(a)(5) violation where the successor employer expressed
a general willingness to hire the predecessor’s employ-
ees, but simultaneously indicated that their employment
was conditioned on their willingness to accept new
terms.23 The Board reasoned that when an employer who
has not yet commenced operations announces new terms
“prior to or simultaneously with his invitation to the pre-
vious work force to accept employment under those
terms,” it cannot be a “perfectly clear” successor because
it does not know if the predecessor’s employees will ac-
cept employment on those terms; therefore, it cannot be
said that the successor “plans” to retain “all” unit em-
ployees. The Spruce Up Board thus held that the Burns
“perfectly clear” exception, and the consequent forfeiture
of the right to set initial terms, should be restricted to
circumstances where the new employer has “either ac-
tively or, by tacit inference, misled employees into be-
lieving they would all be retained without change in their
wages, hours, or conditions of employment, or at least to
circumstances where the new employer . . . has failed to
clearly announce its intent to establish a new set of con-
ditions prior to inviting former employees to accept em-
ployment.” Id. at 195 (footnote omitted).
The Board applied the Spruce Up analysis in Fremont
Ford, 289 NLRB 1290 (1988). Reviewing its prece-
dents, the Board stated: “Since Spruce Up the Board has
adhered to this distinction based on when the successor
employer announces its offer of different terms of em-
ployment in relation to its expression of intent to retain
the predecessor’s employees unless the successor has
misled them.” Id. at 1296. The Fremont Board found
that the successor there had forfeited the right to set ini-
tial terms, since it was “perfectly clear” under Burns and
22 Because we find merit in the General Counsel’s exceptions, we
need not and do not pass on the Union’s exception relying on Advanced
Stretchforming, supra.
23 Prior to the takeover, the new employer in Spruce Up told the un-
ion what he planned to pay the predecessor employees (barbers). He
also distributed individual form letters to the barbers, setting forth new
commission rates (rates differing from those paid by the predecessor
Spruce Up Corp.), and requested that all those who desired to work on
the new commission basis return a signed form letter.
Spruce Up that it planned to retain a majority of the
predecessor’s employees: a supervisor told certain em-
ployees that they would be retained when the successor
took over and that “nothing was going to change”; the
successor instructed supervisors to conceal or make false
or misleading statements to employees who inquired
about prospective working conditions; and it was not
until after the hiring process had begun that the successor
first informed the predecessor’s employees that there
would be significantly different employment condi-
tions.24
The Fremont Board concluded that, unlike the
situation presented in Spruce Up, the respondent had
“failed to clearly announce its intent to establish a new
set of conditions prior to inviting former employees to
accept employment”; hence, it was not free to unilater-
ally set initial terms of employment. Id. at 1297.25
Turning to the instant case, the judge, applying Spruce
Up, found that the Burns “perfectly clear” exception does
not apply because the Respondent informed Candlewood
applicants that they would be employed only in a tempo-
rary or probationary status. This, the judge reasoned,
“should have signaled” to them that their terms and con-
ditions of employment would change, thus raising the
possibility that some might decline employment and ren-
dering the “perfectly clear” exception inapplicable.
We disagree. Although the Respondent did subject
former Candlewood employees to what amounted to a
probationary period, we nonetheless find, applying
Spruce Up, that the Burns “perfectly clear” exception
does apply because the Respondent “failed to clearly
announce its intent to establish a new set of conditions
prior to inviting former [Candlewood] employees to ac-
cept employment.”26 209 NLRB at 195.
The judge found that, after interviewing the Candle-
wood employees, the Respondent mailed or hand-
delivered written offers of “temporary” employment,
dated June 30, which incorporated by reference “[o]ther
terms and conditions of your employment . . . set forth in
24 Cf. Williams Enterprises, 301 NLRB 167 (1991) (finding no for-
feiture of Burns right where evidence showed announcement of new
terms—notably, changes in job functions, insurance carrier, insurance
plan, premiums and deductibles, vacations, and holidays, and elimina-
tion of mid-afternoon break—simultaneously with invitation to prede-
cessor’s work force to accept employment under those terms), enfd. in
relevant part 956 F.2d 1226 (D.C. Cir. 1992).
25 See also Galloway School Lines, 321 NLRB 1422 (1996), where
the Board, again interpreting Burns, stated that a duty to bargain over
initial terms “can arise not only in situations where the new employer’s
plan is to retain virtually every predecessor employee, but also in cases
where, although the plan is to retain a fewer number of predecessor
employees, it is still evident that the union’s majority status will con-
tinue.” Id. at 1426 (fn. omitted).
26 As explained below, Member Schaumber dissents from this con-
clusion.
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
981
Windsor’s personnel policies and its employee hand-
book.” The judge further found that the Respondent first
distributed employee handbooks to the “temporary” em-
ployees at a staff meeting held on July 9. Significantly,
the judge made no findings as to whether, or when, em-
ployees actually received the June 30 letter purportedly
informing them of the Respondent’s intent to change
terms and conditions of employment.27 At the hearing,
several
former
Candlewood
employees—Nereida
Jimenez, Nana Williams, Gladys Matos, Tracy Daven-
port, and Tara Smith—were shown a copy of the June 30
letter specifically addressed to them, and they each de-
nied receiving it. Two of the Respondent’s witnesses,
Lawrence Norvick and Victoria Mejia, testified that they
received the letter at work, not by mail at their house;
and Norvick’s testimony revealed that he received it after
July 1. The Respondent did not submit any signed and
dated copies of its letter into evidence. Thus, even if the
June 30 letter conveyed an intent to change employment
terms, the evidence fails to show that the Candlewood
employees actually received that letter before they com-
menced work with the Respondent.
Moreover, the judge failed to address other significant
evidence relevant to this issue. Thus, the judge did not
address the Respondent’s June 8 cover sheet attached to
the job applications distributed to Candlewood employ-
ees, which informed employees that the Respondent in-
tended to hire a “full complement of employees” and to
implement “operational changes,” including upgrading
patient care and changing the resident mix, but which
conspicuously lacked any mention of intended changes
to employees’ terms and conditions of employment.28
27 One could reasonably take the position that saying “[o]ther terms
and conditions of your employment will be set forth in Windsor’s per-
sonnel policies and its employee handbook” falls short of expressing an
intent to change existing employment terms, as it leaves open the pos-
sibility that the terms to be thus set forth will be unchanged from those
of the predecessor. But, as explained more fully below, even assuming
the Respondent’s June 30 letter announced an intent to change em-
ployment terms, it did not inform the predecessor’s employees what
specific terms the Respondent planned to implement. It did not even
put the Candlewood employees on general notice that the planned
employment terms, although unspecified, would be less favorable than
the predecessor’s.
28 In finding, contrary to our conclusion, that the Respondent was not
a “perfectly clear” successor, our dissenting colleague relies on Ridge-
well’s, Inc., 334 NLRB 37 (2001), enfd. 38 Fed. Appx. 29 (D.C. Cir.
2002). Ridgewell’s is clearly distinguishable. There, the successor
employer announced to the union, prior both to finalization of its sub-
contract and to hiring, that it would utilize the predecessor’s employees
only on an independent contractor basis. An announcement that work-
ers will be hired as “independent contractors” necessarily signals an
“intent to establish a new set of [employment] conditions,” Spruce Up,
supra at 195, because it signals an intent to divest the predecessor’s
employees of “employee” status altogether. Of course, the Respon-
The judge also did not discuss employee testimony
that employees who, prior to the takeover, asked about
their employment status or about intended changes were
told variations of “don’t worry” or “nothing will
change.”29
Most of these statements allegedly were
made by former Candlewood supervisors who were later
retained by the Respondent when it took over the facility.
The Respondent contends that it did not authorize
those individuals to speak for it before the takeover. It
also argues that none of the individuals who did speak
for it promised employees that their terms and conditions
of employment would not change. Even if that is true,
however, none of the Respondent’s witnesses testified
that prior to the takeover they informed Candlewood
employees (other than via the offer letters) that their
terms and conditions of employment under the Respon-
dent would change.
In sum, there is no evidence that the Respondent’s
June 30 job-offer letters purportedly announcing an in-
tent to change employment terms were received prior to
the July 1 takeover. Moreover, there is no evidence that
the Respondent, prior to the takeover, informed Candle-
wood employees that those who were retained would be
working under different core terms and conditions of
employment. On this record, we find that the Respon-
dent “failed to clearly announce its intent to establish a
new set of conditions prior to inviting former [Candle-
wood] employees to accept employment.”30 Spruce Up,
supra at 195.
dent’s pre-July 1 communications to the predecessor’s employees did
nothing of the sort.
29 For example, Debra Smith’s uncontroverted testimony was that
she asked Supervisor Elaine Griswold, in anticipation of the July 4
holiday, first, if she could have the holiday off, and second, if she
would still be on the schedule for July. Griswold responded, “Why of
course . . . don’t even worry about it.” Griswold was the director of
nursing at Candlewood, a position she retained under the Respondent.
Nana Williams testified about a staff meeting conducted in May or June
2004, where Candlewood representative Dava Ashley announced that
the facility was going to be sold and introduced Leonard to employees;
according to Williams, when employees got in an “uproar” about
whether their salaries would be decreased, both Ashley and Leonard
reassured employees that “nothing was going to change.” Ashley did
not testify; although Leonard testified that Ashley did not make repre-
sentations as to specific terms and conditions of employment, Leonard
conceded that Ashley made a “motivating talk.” Similarly, Jimenez’
uncontroverted testimony was that she asked Carmen Hernandez at a
July 6 meeting about pay rates; Hernandez said “everybody would stay
at their same amount until the yearly evaluations.”
30 Member Schaumber disagrees with his colleagues’ decision to re-
verse the judge and find that the Respondent was a “perfectly clear”
successor to Candlewood. As the judge found, the Respondent made
clear during its interviews with former Candlewood employees that any
employment relationship they might enter into with it would be tempo-
rary, with only a chance of regular employment. Further limiting those
chances were the Respondent’s requirements, set forth in its June 8
solicitation for applications, that all Candlewood interviewees pass “a
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
982
Even assuming arguendo that most employees actually
received the written offer of temporary employment be-
fore they commenced work with the Respondent, the
June 30 letter, apart from informing employees that they
were not eligible for certain benefits because of their
“temporary” status, merely states, in relevant part:
“Other terms and conditions of your employment will be
set forth in Windsor’s personnel policies and its em-
ployee handbook.” A general statement that new terms
will subsequently be set is not sufficient to fulfill the
Respondent’s Spruce Up obligation to announce new
terms prior to or simultaneous with the takeover.31 In-
preemployment physical, drug test and acceptable reference and back-
ground checks.” By signaling to the Candlewood interviewees that
their very status as regular employees was in question, much less guar-
anteed, the Respondent made clear that its initial terms and conditions
of employment would differ from those in the Union’s collective-
bargaining agreement with Candlewood; thus, the Respondent was not
a “perfectly clear” successor to Candlewood. See Ridgewell’s, Inc.,
supra (finding employer who announced pretakeover that it intended to
hire predecessor’s employees as independent contractors was not a
“perfectly clear” successor because it “clearly signaled” that its terms
of employment would differ from its predecessor’s). Accordingly,
Member Schaumber would adopt the judge and dismiss this allegation.
31 Cf. Banknote Corp. of America, 315 NLRB 1041 (1994), enfd. 84
F.3d 637 (2d Cir. 1996), cert. denied 519 U.S. 1109 (1997), in which
the Board found an employer was not a “perfectly clear” successor
where, before assuming operations, it disavowed statements that it had
agreed to recognize the unions and be bound by the existing collective-
bargaining agreements; met with the unions and informed them that it
intended to attempt to hire its initial work force from among existing
employees, but reiterated that it would not honor the then existing
collective-bargaining agreements; and told the unions and certain em-
ployees during their job interviews that it intended to introduce flexibil-
ity in terms of jobs and that health benefits would continue for 60 days.
Under those circumstances, the Board found that the successor was free
to set initial terms and conditions prior to its takeover date, but that,
thereafter, a bargaining obligation attached with respect to any subse-
quent changes the employer wished to make. By implication, the
Board also found that changes made after the successor assumed opera-
tions to employees’ hours, pension, vacation and sick pay plans, health
and welfare benefits, and holidays were unlawful unilateral changes
because the successor had not announced changes to those terms and
conditions prior to the takeover. Thus, under the rationale of Banknote
Corp., even if the Respondent’s June 30 letter expressed a sufficiently
clear intent to change employment terms to remove the Respondent
from “perfectly clear” successor status, the Respondent still had an
obligation to bargain over any unannounced specific changes to terms
and conditions of employment occurring after July 1, including disman-
tling the bulletin board and issuing new handbooks.
While he does not rely on the contents of the June 30 job-offer letter
in reaching his conclusion, Member Schaumber notes that, had the
letter been timely distributed, its contents would have satisfied the
Respondent’s Spruce Up obligation. In addition to the notice that cer-
tain terms and conditions of employment would be set forth in the
employee handbook, that letter again informed employees that their
employment was “temporary . . . for a period of up to 90 days,” that
they “[were] not eligible for company benefits,” and that their employ-
ment would be at-will, i.e., terminable “at any time, without advance
notice, and with or without cause.” Thus, in Member Schaumber’s
deed, the Respondent’s position runs counter to the
Board’s rationale underpinning Spruce Up, which is that
where a successor has clearly announced new terms prior
to or simultaneous with the takeover, it is not “perfectly
clear” that the successor plans to retain its predecessor’s
employees because of the genuine possibility that those
employees will reject the offer of employment under
those announced terms.32 Conversely, where a successor
has hired a majority of the predecessor’s employees but
deprived them of the ability to make an informed choice
by not clearly announcing that it will operate under dif-
ferent terms than the predecessor’s, the successor is pre-
cluded from thereafter unilaterally imposing new terms
upon those employees. Applying this logic here, because
the Respondent failed to clearly announce its intent to
establish new terms prior to the July 1 takeover, and no
new terms were set on July 1, the Respondent’s subse-
quent setting of new terms on July 9 through distribution
of its handbook was not a lawful setting of initial terms
but an unlawful unilateral change in existing terms.
view, the letter clearly stated the Respondent’s intention to establish a
new set of conditions for the former Candlewood employees.
Moreover, in Member Schaumber’s view, a general statement of in-
tent to change the terms of employment is sufficient to fulfill a succes-
sor employer’s Spruce Up obligation, so long as it implements those
initial terms contemporaneously with its initiation of operations.
Spruce Up does not require employers to announce prior to the take-
over all new terms it intends to establish; it merely requires an an-
nouncement of an intention to establish new terms. The Board stated:
“We believe the caveat in Burns, therefore, should be restricted to
circumstances in which the new employer has either actively or, by
tacit inference, misled employees into believing they would all be re-
tained without change in their wages, hours, or conditions of employ-
ment, or at least to circumstances where the new employer, unlike the
Respondent here, has failed to clearly announce its intent to establish a
new set of conditions prior to inviting former employers to accept em-
ployment.” Spruce Up, supra at 195 (footnote omitted). Thus, Spruce
Up clearly indicates that timely notification that the successor intends
to set new terms and conditions of employment frees it to establish
unilaterally the initial terms and conditions of employment for its em-
ployees.
32 Hence, we are unpersuaded by our dissenting colleague’s view
that a general statement of intent to change terms of employment is
sufficient to fulfill a successor employer’s Spruce Up obligation. Un-
der our colleague’s view, a successor may implement new terms, even
terms it does not disclose to employees until after the takeover, if it
merely announces at or before the takeover that terms will change.
Clearly, this view cannot be squared with Banknote Corp., supra. We
think that most employees put in the unenviable position of choosing
between certain and immediate unemployment, on the one hand, and on
the other, a job with a successor employer who has said only that em-
ployment terms will change, without specifying how, would accept the
employment. After all, the announcement that terms will change leaves
open the possibility that they will change for the better, or only mini-
mally for the worse. In our view, an employer that forces a choice
between a certain evil and hope-inducing uncertainty must be deemed
to have planned to retain all employees and thus to be a perfectly clear
successor.
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
983
In sum, the Respondent forfeited the right to set initial
terms under Spruce Up because it failed, prior to inviting
former Candlewood employees to accept employment on
or after July 1, to clearly announce its intent to establish
new terms.33 Accordingly, we find that the Respondent
violated Section 8(a)(5) and (1) when it subsequently and
unilaterally discontinued the use of a union bulletin
board34 and implemented new employee handbooks.
III. SECTION 8(a)(3) ALLEGATIONS
A. The Suspensions and Terminations
As stated above, the complaint alleged that the Re-
spondent violated Section 8(a)(3) and (1) by suspending
and terminating certain employees because of their pro-
tected, concerted, and/or union activities. The judge ana-
lyzed the suspensions and terminations under Wright
Line.35 She found, and we agree, that the Respondent
violated Section 8(a)(3) by suspending Tracy Davenport,
Nana Williams, Nereida Jimenez, and Tara Smith be-
cause they invited employee Shronda Williams to a un-
ion meeting. The judge further found, and we again
agree, that the Respondent subsequently violated the Act
by terminating these four employees (Davenport, Wil-
liams, and Jimenez on July 23, and Smith on August 10),
and also a fifth employee, former Union Steward Gladys
Matos, due to their union and/or protected, concerted
activities.36
33 Moreover, as noted above, it is at least arguable that the Respon-
dent misled employees into thinking that their terms of employment
would not change. Cf. Elf Atochem North America, Inc., 339 NLRB
796 (2003) (employer was “perfectly clear” successor when it informed
employees they would keep their employment, their seniority would be
recognized, and they would receive equivalent salaries and comparable
benefits).
Member Schaumber disagrees with any contention that the Respon-
dent misled the Candlewood employees into thinking that their terms of
employment would not change. First, as the majority acknowledges,
the judge made no finding that the alleged “don’t worry” or “nothing
will change” statements were made at all, much less that they were
made by the Respondent’s agents. Second, Williams’ testimony about
Leonard’s alleged assurance was denied by both Leonard and Daven-
port. In light of this disputed testimony, and in the absence of a credi-
bility determination resolving that dispute, Member Schaumber consid-
ers the evidence insufficient to support a finding that the Respondent
misled the Candlewood employees.
34 The use of a bulletin board is a mandatory subject of bargaining.
ATC/Vancom of California, L.P., 338 NLRB 1166, 1169 (2003), affd.
370 F.3d 692 (7th Cir. 2004); RCN Corp., 333 NLRB 295, 310 (2001).
35 251 NLRB 1083 (1980), enfd. 662 F.2d 899 (1st Cir. 1981), cert.
denied 455 U.S. 989 (1982). The judge’s decision also cites Shearer’s
Foods, Inc., 340 NLRB 1093, 1094 fn. 4 (2003), as part of the Board’s
decision in that case. The cited footnote, however, was Member
Schaumber’s concurring footnote.
36 We find no merit in the Respondent’s contention that the judge
erred in finding that it had knowledge of the alleged discriminatees’
protected activities. As the judge found, Shronda Williams identified to
the Respondent’s managers the four employees who had invited her to
a union meeting. Further, as to knowledge of protected activity of
In arriving at these conclusions, we find that antiunion
animus was a motivating factor in the Respondent’s ac-
tions against those employees. In this regard, however,
we find it unnecessary to rely on several factors cited by
the judge—the Respondent’s antiunion campaign, its
instructions to supervisors to keep managers informed of
employee interest in the Union and to discourage union
support, its refusal to recognize the Union, and its state-
ments to employees that the facility was nonunion.37 We
rely instead on other factors considered by the judge,
which, taken together, establish unlawful motivation:
•
Disparate treatment. As the judge found,
the Respondent discharged Smith for en-
gaging in confrontational behavior, while
giving only a verbal warning to a non-
Candlewood employee for a similar of-
fense. And, as discussed in sec. III,B be-
low, the Respondent refused to hire four
union stewards, allegedly because of prior
disciplinary problems, yet hired several
employees who had similar or worse dis-
ciplinary records.38
•
False or pretextual reasons given for the
Respondent’s actions. The judge found
that the Respondent gave a false account
of Matos’ discharge, which supported an
Union Stewards Davenport and Williams, steward certificates were
displayed on the union bulletin board at the time that Spencer and Leo-
nard toured the facility prior to July 1, and also on July 1, the date the
Respondent took over the facility and operated with former Candle-
wood supervisors. Plus, there was a heavy black dot by Davenport’s
name on Hernandez’ list of problem employees, apparently indicating
that she was a known steward. The General Counsel need not prove
knowledge by direct evidence; knowledge may be reasonably inferred
or imputed. See Active Transportation, 296 NLRB 431, 431–432
(1989) (knowledge inferred where, inter alia, three of four discharged
employees engaged in union activities in the presence of employee who
was an informer for the employer), enfd. 924 F.2d 1057 (6th Cir.
1991); Clark & Wilkins Industries, 290 NLRB 106 (1988) (imputing
supervisor’s knowledge to employer where supervisor observed orga-
nizing campaign in small shop), enfd. 887 F.2d 308 (D.C. Cir. 1989),
cert. denied 495 U.S. 934 (1990); Hunter Douglas, Inc. v. NLRB, 804
F.2d 808, 814 (3d Cir. 1986) (permissible inference that supervisor
communicated his knowledge of union activity to superiors), cert. de-
nied 481 U.S. 1069 (1987).
37 Member Liebman does not disavow the judge’s reliance on state-
ments to employees that the facility was nonunion. However, we are
all in agreement that there is sufficient evidence of antiunion animus
even without those statements.
38 See, e.g., Embassy Vacation Resorts, 340 NLRB 846, 848 (2003),
rev. denied 2004 WL 210675 (D.C. Cir. 2004) (Board may draw infer-
ence of unlawful motive from, inter alia, disparate treatment of certain
employees compared with employees with similar work records or
offenses).
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
984
inference that the true motive was unlaw-
ful.39
•
The Respondent’s handling of the suspen-
sions and discharges. As the judge found,
the Respondent failed to investigate the
Shronda Williams incident or to ask Dav-
enport, Williams, Jimenez, or Smith their
versions of what had occurred before sus-
pending them. Similarly, concerning
Smith’s discharge, the judge reasoned that
Leonard’s failure to tell Smith that she
suspected Smith had feigned illness to
avoid weekend work, coupled with her
failure to investigate (rejecting out of hand
the doctor’s note Smith presented excusing
her absence on medical grounds), sup-
ported an inference that “something other
than good faith prompted the leap to judg-
ment.”40
•
The Respondent’s unlawful conduct. Like
the judge, we rely on the unlawful suspen-
sions of Davenport, Williams, Jimenez,
and Smith as evidence that their subse-
quent discharges were unlawfully moti-
vated. We also rely on the unlawful sus-
pensions and discharges in finding that the
refusals to hire discussed below were also
unlawfully motivated.
39 See Jack in the Box Distribution Center Systems, 339 NLRB 40,
53 (2003). Matos’ positive evaluations support this inference, describ-
ing her as “pleasant even in difficult situations” and “an inspiration,”
and saying that she “seldom” or “never complains.” Even assuming
that Matos had been insubordinate, the Respondent does not explain
why it waited to discharge her from early July (when the Matos-
Hernandez encounter allegedly took place) until July 23; moreover, the
Respondent’s records reveal that employee Katrina Carpenter also had
a conflict with management over work assignments but was not termi-
nated for this reason. (Carpenter was subsequently terminated for
“violation of company policies, inability-unsatisfactory work.”)
Regarding motive (and in weighing credibility), the judge was
rightly troubled by Leonard’s inconsistent explanations for Matos’
termination: at the hearing, Leonard testified that Matos was dis-
charged for insubordination; in her deposition, Leonard testified that
Matos’ termination was part of the plan to replace all staff. The judge
was also rightly troubled by the inconsistent testimony concerning who
actually fired Matos. Matos said Leonard fired her; Leonard said Her-
nandez fired Matos; Hernandez did not testify.
40 Enforcement of rules against employees without sufficient prior
investigation of their alleged misconduct, including withholding from
the accused details of the accusation and denying them an opportunity
to explain or deny their alleged misconduct, is evidence of unlawful
motive. Joseph Chevrolet, Inc., 343 NLRB 7, 8 (2004), enfd. mem.
162 Fed. Appx. 541 (6th Cir. 2006); W. W. Grainger, Inc., 229 NLRB
161, 162 (1977), enfd. 528 F.2d 1118 (7th Cir. 1978).
Consistent with his dissenting position in Joseph Chevrolet, supra at
11 fn. 3, Member Schaumber does not rely on the Respondent’s failure
to investigate in finding antiunion animus.
We also agree with the judge, for the reasons set forth
in her decision, that the Respondent failed to establish
that it would have suspended and later discharged the
discriminatees even in the absence of their union and
other protected conduct. Thus,
•
With regard to the suspensions, the
judge relied, inter alia, on the Respon-
dent’s
“inexplicable
willingness
to
forego even minimal investigation while
hastily suspending employees for pro-
moting a union meeting,” especially
viewed against Shronda Williams’ inci-
dent report, which revealed “neither
word nor deed that might account for
her extreme alarm.”41
•
The judge rejected the Respondent’s ex-
planation that the discharges of Daven-
port, Williams, and Jimenez were
merely part of its plan to replace all
Candlewood employees. The judge
noted that the Respondent had initially
hired those three employees, that there
was no evidence that they had per-
formed unsatisfactorily during their “as-
sessment” period, and that the Respon-
dent had failed to explain why they were
selected for termination over similarly
situated employees.42
41 Member Schaumber relies solely on the insufficiency of Shronda
Williams’ incident report in finding that the Respondent did not sustain
its Wright Line rebuttal burden. As the judge stated, the Respondent
“fail[ed] to explain how Shronda Williams’ vague and mild account of
being invited to a union meeting could reasonably have prompted im-
mediate suspension of five employees. . . .”
Suspension of employees for union activities violates Sec. 8(a)(3).
Krystal Enterprises, 345 NLRB 227, 227 (2005). Even assuming that
Leonard held a good-faith belief that the employees had engaged in
misconduct, her suspension of them based on her mistaken belief that
they committed misconduct in the course of their protected activity still
violated the Act. See NLRB v. Burnup & Sims, Inc., 379 U.S. 21, 23
(1964); Keco Industries, 306 NLRB 15, 17 (1992).
42 See SCA Tissue North America, LLC, 338 NLRB 1130, 1137–
1138 (2003), enfd. 371 F.3d 983 (7th Cir. 2004); Wright Line, 251
NLRB at 1090. Employees Keith Lacon and Linda Russo were both on
the Spencer list, having negative records for patient care and safety, yet
the Respondent retained them. Similarly, B. Rodriguez, M. Guzman,
C. Guzman, and J. Fisher were also retained despite having as many or
more absences than Davenport, who was ostensibly terminated for
excessive absences. In fact, Davenport’s most recent evaluation rated
her four out of five on “attendance” with the notation “seldom absent
but gives prior notice,” and her overall evaluations are positive. More-
over, as the General Counsel argues, the Respondent’s claim that it
terminated the discriminatees because it had found replacements for
them is undercut by Jt. Exh. 2 (titled “Reporting of New Hires from
07/01/04 through 12/21/04”), which shows no new hires between July
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
985
•
As stated above, the judge found that
the Respondent gave a false account of
Matos’ discharge. Having rejected the
Respondent’s proffered reason for dis-
charging Matos as pretext, it followed
that the Respondent had not met its re-
buttal burden.43
•
Finally, as to Smith’s termination, the
judge found that, although Smith’s con-
frontational behavior on August 9 could
have provided a legitimate basis for dis-
charge, the Respondent failed to sustain
its burden of proving that it would have
discharged Smith for that confrontation
even in the absence of her protected un-
ion activity because, less than one
month later, it punished similar behavior
by a non-Candlewood employee by is-
suing a mere verbal warning.44
B. Refusal to Hire Colter, Debra Smith, Hailey,
and Moss
Contrary to the judge, we find that the Respondent also
violated Section 8(a)(3) by discriminatorily refusing to
hire Union Stewards Edna Colter, Debra Smith, Sharie
Hailey, and Annie Moss.
The judge analyzed the refusal-to-hire issue under
FES, 331 NLRB 9, 12 (2000), enfd. 301 F.3d 83 (3d Cir.
2002). She found that the General Counsel had estab-
lished all three elements of his initial burden: (1) the
Respondent was hiring, (2) the applicants (by virtue of
their previous employment at the facility) had relevant
experience and training, and (3) antiunion animus con-
tributed to the decision not to hire them. However, the
judge then found that the Respondent had met its burden
of demonstrating that it would not have hired Colter,
Hailey, Moss, and Debra Smith even in the absence of
their past union activities. Citing Neptco, Inc., 346
NLRB 18, 20 fn. 16 (2005), the judge reasoned that the
17 (3 days before the postsuspension reinstatement date) and July 28 (5
days after the date of discharge).
43 Limestone Apparel, 255 NLRB 722 (1981), enfd. 705 F.2d 799
(6th Cir. 1982) (finding of pretext necessarily means that reasons ad-
vanced by the employer either did not exist or were not, in fact, relied
on).
44 The General Counsel alleged, alternatively, that the Respondent
violated Sec. 8(a)(1) by terminating Smith for protected concerted
activity. Because she found the 8(a)(3) violation, the judge found it
unnecessary to pass on this alternative theory. The General Counsel
excepts to the judge’s failure to rule on this theory. The General Coun-
sel also takes issue with the judge’s statement, at sec. II,E (fn. 36) of
her decision, that the Respondent’s wisdom in assigning work is not
relevant. Because we affirm the judge’s findings of 8(a)(3) violations,
we find it unnecessary to pass on these exceptions.
Respondent’s “managerial opinion” that those four appli-
cants’ past derelictions made them less fit for employ-
ment than other applicants was entitled to deference, in
the absence of evidence that its opinion was disingenu-
ous.45
The judge stated that mere suspicion that union
activity motivated the refusal to hire is insufficient to
reject the Respondent’s otherwise cogent defense.
After the judge issued her decision, the Board, in
Planned Building Services, 347 NLRB 670 (2006), ad-
dressed “the appropriate analytical framework to be ap-
plied in determining whether an alleged successor em-
ployer has unlawfully refused to hire its predecessor’s
employees to avoid a bargaining obligation,” id. at 670.
The Board reasoned that in a successorship context, a
refusal to hire is analogous to a discriminatory discharge,
and accordingly held that the Wright Line rather than the
FES standard should be applied in such situations. Id. at
673.
Planned Building Services
was a “successorship
avoidance” case; it involved a situation where an em-
ployer had intentionally refused to hire predecessor em-
ployees in such numbers that the union could not attain
majority status. Id. at 672. The Respondent in this case
took a different approach to avoiding Burns successor-
ship from that of the respondent in Planned Building
Services, supra. As discussed above, the Respondent did
hire a majority of the predecessor’s employees, but main-
tained that the “count” must be delayed until that group
had shrunk to less than 50 percent of its unit-employee
complement. Nonetheless, the Board’s logic in Planned
Building Services and analogy to a discriminatory dis-
charge situation apply equally here. Applying a Wright
Line standard to the instant facts,46 as required by
Planned Building Services, we conclude that the Re-
spondent violated Section 8(a)(3) by refusing to hire Un-
ion Stewards Colter, Debra Smith, Hailey, and Moss.
As stated in Planned Building Services, to establish a
refusal-to-hire violation in a successorship context, the
General Counsel must prove that the employer failed to
hire employees of its predecessor and was motivated by
antiunion animus.47 Id. at 673. There is no dispute here
that the Respondent failed to hire these four applicants.
45 We note that the judge declined to defer to the Respondent’s
“business judgment” elsewhere in her decision.
46 Because we analyze this case under Wright Line, we need not ad-
dress the Respondent’s exception that the General Counsel did not
establish that the alleged discriminatees were “qualified.”
47 Member Schaumber adheres to his previously stated position that
Wright Line requires a showing of a causal nexus between the union
animus and the refusal to hire. Planned Building Services, above at 673
fn. 10 (citing North Fork Services Joint Venture, 346 NLRB 1025,
1026 fn. 7 (2006)).
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
986
However, the Respondent disputes that it was motivated
by antiunion animus.
Applying Wright Line, there is no dispute that the four
applicants, as former union stewards, had engaged in
protected activity. In addition, we adopt the judge’s
finding that the Respondent had knowledge of these four
union stewards’ protected activities48 and that the refus-
als to hire were unlawfully motivated. In so doing, we
adopt the judge’s finding that the General Counsel estab-
lished antiunion animus, but only for the reasons set forth
in sec. III,A, above.
We further find that the Respondent did not establish
that it would have taken the same action in the absence
of these applicants’ protected activities. The Respon-
dent’s rebuttal boils down to an argument that these four
stewards were bad employees. The Respondent supports
this argument by its submission of the notated “Spencer
list.” The Respondent did not introduce all of the under-
lying disciplinary records that purportedly support
Spencer’s notations. At the hearing, Spencer claimed
that she could not locate those records—notably, those
corresponding to Smith, Hailey, and Moss—and she im-
plied that predecessor Covenant removed the documents.
However, the General Counsel found most of the source
documents related to the other employees on the
48 We reject the Respondent’s contention that the judge erred in find-
ing knowledge. The judge found knowledge based, in part, on the
“steward” notation next to Moss’ name on the “Hernandez list” and the
heavy black dots adjacent to the names of union stewards on that list.
We agree with the judge that it is reasonable to infer that the dots signi-
fied the employees’ union stewardship, and also reasonable to infer that
Hernandez communicated certain union-related information to the
Respondent—particularly in light of the otherwise inexplicable appear-
ance of the names Smith, Hailey, and Moss at the end of an otherwise
alphabetical listing of names in GC Exh. 70, the incomplete version of
the “Spencer list.” The judge also based her knowledge finding on
certain “assumptions,” including the Respondent offering former Can-
dlewood supervisors employment prior to July 1, and “work[ing] with
Ms. Hernandez in organizing the takeover.” The record supports a
factual finding that the Respondent initially retained Candlewood man-
agers and supervisors who had direct knowledge of these employees’
union activities at Candlewood; the record also supports a finding that
Hernandez helped “organize” the takeover in the sense that she pro-
vided information to the Respondent and distributed and received em-
ployment applications. In adopting the judge’s finding of knowledge,
however, we rely on the Hernandez list and GC Exh. 70, rather than on
the judge’s “assumptions,” at least to the extent that the latter reach
beyond the record. We also rely on the clear record evidence that stew-
ard certificates were posted on the bulletin board at the time that
Spencer and Leonard toured the facility prior to the takeover, and that
Spencer spent some time reviewing general personnel files, which
contained documents (such as time adjustment forms or e-mails) that
signaled an employee’s union involvement. While we agree with the
Respondent that these latter facts do not directly establish knowledge,
we think that it was reasonable for the judge to infer from the totality of
the circumstances herein, that the Respondent had knowledge of the
applicants’ union sympathies.
“Spencer list,” and it strains reason to believe that Cove-
nant would have sifted through the files to remove disci-
plinary notices pertaining only to certain employees, let
alone to certain employees who, coincidentally, hap-
pened to be union stewards and would later be refused
hire by its successor. We draw an adverse inference
from these circumstances that, had they been introduced
into evidence, the disciplinary records would not have
supported the Respondent’s position.49 Extreme Building
Services Corp., 349 NLRB 914, 931 (2007).
We also rely on a comparison of the “Spencer list”
submitted by the Respondent (R. Exh. 82) to the General
Counsel’s Exhibit 70. Spencer and Leonard testified that
Counsel’s Exhibit 70 was an “incomplete” version of
Respondent’s Exhibit 82, which testimony the judge
credited. We think it completely logical that Spencer, in
reviewing files, would begin at the alphabetical begin-
ning and proceed accordingly; and the “incomplete” list
suggests that this is, indeed, exactly what Spencer did.
In our view, however, the judge failed to see the signifi-
cance in the manner in which Spencer completed the
“incomplete” list, which suggests to us, by the addition
of the names Smith, Hailey, and Moss at the end of an
otherwise generally alphabetical list, that those stewards
were targeted—an inference that gains force from the
heavy black dots placed next to the same names, along
with the “steward” notation next to Moss’ name, on the
Hernandez list.
Also significant is the Respondent’s hiring of employ-
ees listed on the “Spencer list” with similar or demon-
strably worse records than the union-steward applicants
it refused to hire.50 Of the 26 employees on the “Spencer
49 Moss testified that, in the 15 years she had worked at the facility,
she had been disciplined only once, in 1993 or 1994. Smith admitted
that she had been disciplined for a medication error, but (contrary to the
Spencer list notations) she denied ever being disciplined for absentee-
ism. The Respondent submitted three verbal counselings for Colter,
which Colter claimed she had never been shown.
While Member Schaumber would not draw an adverse inference
from the Respondent’s failure to provide documentation supporting the
Spencer notations, he acknowledges that, in light of the conflicting
testimony about prior discipline, the notations carry significantly less
evidentiary weight than they would if supported by other documenta-
tion.
50 For example, according to the “Spencer list,” Moss’ vague trans-
gression was “[c]reating hostile work environment.” The “Spencer list”
notes that Carrizalez had problems with “Res. Care” and “Team
Work”; Hayes with resident “roughness,” for which he was suspended
twice; and Lacon with “feeding technique,” “Res care,” and “t[aking
leave of absence without supervisor] approval.” Nonetheless, the Re-
spondent hired Carrizalez, Hayes, and Lacon. Similarly, according to
the “Spencer list,” D[ebra] Smith had “[p]oor attendance” and a “[m]ed
error.” The “Spencer list” shows that Dixon was listed for
“[t]ardiness/attendance” and not “follow[ing instructions]”; Gibbs for
“attendance”; and Groves for possibly “throwing out meds.” The Re-
spondent hired Dixon, Gibbs, and Groves, too.
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
987
list,” only eight were not hired; four of those were union
stewards. Thus, even assuming that Respondent’s Ex-
hibit 82 is a reliable indicator of problems (if not disci-
pline), the Respondent’s hiring decisions reflect a dispa-
rate treatment of union stewards vis-à-vis similarly situ-
ated nonsteward applicants.51
Faced with the General Counsel’s evidence of dispa-
rate treatment, the Respondent failed to counter with
examples of similar treatment, nor did the Respondent
offer any evidence that any of the replacements hired
were superior to the Candlewood applicants it rejected.
See Jennifer Matthew Nursing & Rehabilitation Center,
332 NLRB 300, 303–304 (2000). While the Respondent
cites precedent holding generally that the Board cannot
substitute its business judgment for an employer’s, the
Board has previously stated that “[a]nalyzing the relevant
evidence is not an exercise in second-guessing the
[r]espondent.” Midnight Rose Hotel & Casino, 343
NLRB 1003, 1005 (2004), affd. mem. 2006 WL 2848103
(10th Cir. 2006). We do no more than that here.
In sum, although mere suspicion is insufficient to es-
tablish unlawful motivation,52 the Respondent’s failure to
produce any disciplinary records for Moss,53 Smith54 and
Hailey, along with the augmentation of the incomplete
“Spencer list” by the nonalphabetical addition of their
names at the end of an otherwise alphabetical listing,
considered in conjunction with the black dots next to the
same names and the “steward” notation on the “Hernan-
dez list,” constitute a set of circumstances that are far
51 For this reason, we find it unnecessary to pass on the General
Counsel’s exception that Spencer’s notations were inadmissible hearsay
or improperly admitted under the “best evidence rule.” Moreover, the
Respondent’s disparate treatment of steward and nonsteward applicants
is apparent even excluding from consideration disciplinary records of
other employees dated after October 31, 2004, which the judge ex-
cluded from evidence. For this reason, we find it unnecessary to pass
on the General Counsel’s exception that the judge improperly restricted
disparate treatment evidence by rejecting these exhibits.
52 Neptco, Inc., 346 NLRB 18, 19 (2005).
53 Moss’ case presents a good example of more than suspicious cir-
cumstances. She had worked as an LVN at Candlewood since 1989;
testified at the representation case hearing; was a steward and had rep-
resented employees in disciplinary meetings attended by former Can-
dlewood supervisors retained by the Respondent; and was a member of
the Union’s negotiating team. Her sense of identification with her
union role is revealed by an e-mail in evidence concerning negotiations,
which notes that “Annie [Moss] needs to get over [it] and get on with
her life.” Despite having received a commendation (in evidence as GC
Exh. 24) and a recent excellent evaluation (GC Exh. 25), and with no
disciplinary write-ups, she was asked only three questions during her
interview and was rejected for employment by the Respondent. Simi-
larly, Hailey had good evaluations, and Colter’s file contained a certifi-
cate of appreciation.
54 While the Respondent produced no disciplinary write-ups for
Smith, she admitted that she probably received more than one write-up
for medication errors.
more than merely suspicious. On the basis of these cir-
cumstances, in conjunction with the disparate treatment
evidence discussed above, and in the absence of evidence
demonstrating that the Respondent would have taken the
same action absent these four applicants’ union activities,
we find that the Respondent violated Section 8(a)(3) by
refusing to hire them.
IV. THE 8(a)(1) ALLEGATIONS
The judge found that the Respondent violated the Act
by its July 1 statements to union representatives, in em-
ployees’ presence, that there was no union at the facility
and that the facility was not a union facility, and by its
July 23 statements at an employee staff meeting that the
facility was not a union facility and that employees were
not union employees. The judge found that the Respon-
dent’s statements, at a time when it had an obligation to
recognize the Union, negated the Union’s representative
role and reasonably tended to undercut the Union’s
standing among employees, and thus independently vio-
lated Section 8(a)(1).
Excepting, the Respondent first contends that Leonard
did not make these statements. We have rejected that
contention in adopting the judge’s credibility findings.
The Respondent also contends that even if Leonard made
the statements, they were protected under Section 8(c) of
the Act because they contained no threats of reprisal and
were based on the objective fact that Windsor’s other
facilities were nonunion.55
We adopt the judge’s findings that Leonard’s state-
ments violated the Act. First, as found by the judge, at
the time that Leonard made these statements, the Re-
spondent had hired a majority of its predecessor’s em-
ployees, and had, as we have found above, an obligation
to bargain with the Union. Certainly, as the judge rea-
soned, to tell employees that there was no union when, in
fact, there was, undermined the Union’s representative
role. As for the Respondent’s argument that Leonard
honestly believed that the Respondent was nonunion,
motive is not a necessary element of an 8(a)(1) violation.
The Board’s well-settled test is whether the employer’s
conduct reasonably tends to interfere with employees’
Section 7 rights. American Freightways Co., 124 NLRB
55 In support, the Respondent cites P.S. Elliott Services, 300 NLRB
1161, 1162 (1990). However, in Eldorado, Inc., 335 NLRB 952, 953
(2001), a Board majority distinguished P.S. Elliot on the basis that,
there, the new employer “could not have inherited any bargaining obli-
gation even if it had hired all 8 of the predecessor’s employees”; thus,
the employer’s statement that the new business would be nonunion
truthfully stated objective fact. Here, however, like the successor in
Eldorado, the Respondent had no objective basis on either July 1 or 23,
for stating that Windsor would be nonunion; it could, and in fact did,
inherit a bargaining obligation by retaining a majority of its predeces-
sor’s employees.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
988
146, 147 (1959). Thus, assuming arguendo that Leonard
sincerely but mistakenly believed that the Respondent’s
Windsor facility was nonunion, her statements neverthe-
less negated the Union’s legitimate status as the employ-
ees’ bargaining representative. The Board has found
violative of the Act statements that convey the futility of
selecting a union as bargaining representative or that
suggest that the employer may refuse to bargain with the
union,56 and statements that convey an intent to repudiate
a union’s representative status.57
Finally, Leonard’s “no union here” statements must be
considered in context. Venture Industries, supra. On
both occasions, July 1 and July 23, Leonard’s statements
were not made in response to employee questions.58
When Leonard made her statements on July 1, the Re-
spondent had, as found above, unlawfully failed to hire
four union stewards. By the time she made her state-
ments on July 23, the Respondent had unlawfully sus-
pended employees for inviting another employee to a
union meeting; and on that same day, the Respondent
unlawfully terminated five employees for their protected
and/or union activities. Employees hearing these state-
ments at the July 23 staff meeting and considering them
in the context of the suspensions and terminations would
reasonably be reluctant to avail themselves of their Sec-
tion 7 rights for fear of similar treatment. Thus, at a
minimum, Leonard’s July 23 statements violated the Act,
as they reasonably tended to interfere with, restrain, or
coerce employees in the exercise of their Section 7
rights.59
V. AMENDED REMEDY
We amend the judge’s proposed remedy to address the
additional 8(a)(5), (3), and (1) violations that we have
56 Venture Industries, 330 NLRB 1133 (2000).
57 Hotel Roanoke, 293 NLRB 182, 189 (1989) (finding unlawful
statement that the “union will not be there much longer”). See also
Soltech, Inc., 306 NLRB 269 (1992) (finding that employer conveyed
futility and thus violated Sec. 8(a)(1) by stating that the union was not
coming in, it was not and would not be a union company, it would not
have a union in the plant, it did not need a union, and that it would do
everything it could to run the company in a nonunion fashion).
58 Compare Brown & Root, Inc. v. NLRB, 333 F.3d 628 (5th Cir.
2003), where the Fifth Circuit denied enforcement of a Board decision
holding that an employer’s pretakeover statements to prospective em-
ployees who were union members that the employer was a “non-union
company” and “intended to stay that way” violated Sec. 8(a)(1). The
court noted that the remarks were in response to employee questions at
meetings held to inform employees of job opportunities with the new
employer, and made in a context where the employer already employed
nonunion employees in another operation at the facility; thus, in the
absence of other violations, employees could not reasonably conclude
that the employer was threatening reprisals for their union support.
59 From a remedial perspective, the July 1 statements were cumula-
tive of the July 23 statements. Thus, even assuming the July 1 state-
ments were not unlawful, our Order would remain unchanged.
found. To remedy the 8(a)(5) violations, the Respondent
must, at the Union’s request, restore the terms and condi-
tions of employment established by its predecessor, re-
scinding the unilateral changes it has made; recognize
and bargain with the Union; and make its employees
whole for their losses. See, e.g., Planned Building Ser-
vices, 347 NLRB 670, 674 (2006). The make-whole
remedy for these violations shall be computed in accor-
dance with Ogle Protection Service, 183 NLRB 602
(1970), enfd. 444 F.2d 502 (6th Cir. 1971), with interest
as prescribed in New Horizons for the Retarded, 283
NLRB 1173 (1987).
The Respondent shall also remit
any payments it owes to employee benefit funds in the
manner set forth in Merryweather Optical Co., 240
NLRB 1213 (1979), and reimburse its employees for any
expenses resulting from its failure to make such pay-
ments as set forth in Kraft Plumbing & Heating, 252
NLRB 891 fn. 2 (1980), enfd. mem. 661 F.2d 940 (9th
Cir. 1981).
The Board’s traditional make-whole remedy runs from
the date of the successor’s unlawful refusal to bargain
(here, July 1, 2004) until the successor, consistent with
the Board’s order, reaches a new agreement or bargains
to a lawful impasse. Planned Building Services, supra at
675. However, in a compliance proceeding, the Respon-
dent will be permitted to introduce evidence establishing
that, had it lawfully bargained with the Union, “it would
not have agreed to the monetary provisions of the prede-
cessor employer’s collective-bargaining agreement, and
further establishing either the date on which it would
have bargained to agreement and the terms of the agree-
ment that would have been negotiated, or the date on
which it would have bargained to good-faith impasse and
implemented its own monetary proposals.” Id. at 676.60
60 Member Schaumber emphasizes, as he did in Planned Building
Services, supra at 676 fn. 24, that to avoid a penal remedy, the terms of
the predecessor should be imposed “‘only for a period allowing for a
reasonable time of bargaining.’” Capital Cleaning Contractors, Inc. v.
NLRB, 147 F.3d 999, 1011 (D.C. Cir. 1998) (quoting Kallmann v.
NLRB, 640 F.2d 1094, 1103 (9th Cir. 1981)). Moreover, in determin-
ing both the length of that period and the terms the Respondent would
have agreed to, the Board’s obligation is simply to “approximate what
would have occurred,” Capital Cleaning Contractors, Inc., supra at
1011, for, as the courts have cautioned us, “[n]o one can know with
certainty what wage[s] [the Respondent] would have agreed to.” Id.
See also Kallmann, supra at 1103 (recognizing that “in all probability”
Kallmann’s refusal to pay the rate established by its predecessor would
have led to an impasse allowing Kallmann to reduce wages). Member
Schaumber concurs with the D.C. Circuit that the best evidence of the
wage a successor likely would have agreed to pay may well be the rate
it actually did pay to secure labor to perform the work previously done
by its predecessor’s employees. Capital Cleaning Contractors, Inc.,
supra at 1011.
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
989
To remedy the 8(a)(3) refusal-to-hire violation, the Re-
spondent must offer employment to the individuals it
discriminatorily refused to hire and make them whole for
their losses. Id., slip op. at 7. Thus, we will require the
Respondent to offer Edna Colter, Debra Smith, Sharie
Hailey, and Annie Moss employment in their former
positions or, if those positions no longer exist, in sub-
stantially equivalent positions, and to make them whole
for any loss of earnings or other benefits, computed on a
quarterly basis from July 1, 2004, to the date it offers to
instate them, less any net interim earnings, as prescribed
in F. W. Woolworth Co., 90 NLRB 289 (1950), plus in-
terest as computed in New Horizons for the Retarded,
supra.61
ORDER
The National Labor Relations Board adopts the rec-
ommended Order of the administrative law judge as
61 The General Counsel excepts to the judge’s failure to order notice
posting in both English and Spanish. Although the Board has previ-
ously ordered postings in both languages, it has generally done so under
circumstances where “a substantial number” or a “majority” of the
respondent’s employees are Spanish-speaking. Bergensons Property
Services, 338 NLRB 883 (2003); Tres Estrellas de Oro, 329 NLRB 50,
50 fn. 3 (1999); Three Sisters Sportswear Co., 312 NLRB 853 (1993),
enfd. mem. 55 F.3d 684 (D.C. Cir. 1995), cert. denied 516 U.S. 1093
(1996). The General Counsel supports its exception only by citation to
Leonard’s testimony that Spencer interviewed housekeeping depart-
ment employees because “a lot of them did not speak English and Carol
Spencer can speak Spanish.” Documents in evidence show that house-
keeping employees comprised only approximately 10 percent of the
Base unit employees. Under these circumstances, we reject the General
Counsel’s request that we modify the judge’s recommended Order to
require bilingual notice posting.
Member Liebman would require the Respondent to post remedial
notices in Spanish as well as English. The Respondent chose a man-
agement representative fluent in Spanish to interview the housekeeping
employees because “a lot” of those employees did not speak English.
The Respondent, who does not object to posting in Spanish, clearly
recognizes the need to communicate with the employees in Spanish,
and so should the Board. Unless the Board’s notice is also posted in
Spanish, a significant portion of the Respondent’s employees will ef-
fectively be deprived of the information contained in the notice. In
Member Liebman’s view, the majority wrongly suggests that bilingual
notice posting is warranted only when a majority or a “substantial
number” of employees speak a foreign language. In fact, the Board has
ordered postings in languages other than English on lesser showings.
Thus, the Board required the employer to post notices in Spanish, Por-
tuguese, and Haitian Creole, as well as English, when “some unit em-
ployees [were] not native English speakers and may have difficulty
understanding a notice posted . . . in English.” Jewish Home for the
Elderly of Fairfield County, 343 NLRB 1069, 1071, 1123 (2004) (em-
phasis added), enfd. 174 Fed. Appx. 631 (2d Cir. 2006). And in the
absence of opposition, the Board ordered notices to be posted in Span-
ish and English when the two discriminatees had limited proficiency in
English. Barnard College, 340 NLRB 934 fn. 2 (2003). When the
need for posting in Spanish is so apparent and the burden of a second
posting is so minimal, Member Liebman sees no justification for de-
priving employees of the opportunity to be informed as to their rights
under the Act.
modified and set forth in full below and orders that the
Respondent, S&F Market Street Healthcare LLC d/b/a
Windsor Convalescent Center of North Long Beach,
Long Beach, California, its officers, agents, successors,
and assigns, shall
1. Cease and desist from
(a) Failing and refusing to recognize and to bargain in
good faith with Service Employees International Union,
Local 434B (the Union), as the collective-bargaining
representative of its employees in the following separate
appropriate units:
The Base Unit
All full-time and regular part-time nurses aides, certi-
fied nurse assistants, restorative aides, orderlies, dietary
employees, activity assistants and housekeeping em-
ployees employed at the nursing facility.
The LVN Unit
All full-time and regular part-time Licensed Vocational
Nurses (LVNs) employed at the nursing facility.
(b) Unilaterally changing wages, hours, and other
terms and conditions of employment of employees in the
Base and LVN units, without first giving notice to and
bargaining with the Union.
(c) Refusing to hire job applicants because of their un-
ion membership or sympathies.
(d) Suspending or discharging any employee for en-
gaging in union or other concerted protected activities.
(e) Informing employees that its North Long Beach fa-
cility is not a union facility.
(f) In any like or related manner interfering with, re-
straining, or coercing employees in the exercise of the
rights guaranteed them by Section 7 of the Act.
2. Take the following affirmative action necessary to
effectuate the policies of the Act.
(a) Recognize and, on request, bargain collectively
with the Union as the exclusive representative of the em-
ployees in both the Base and LVN units with respect to
rates of pay, wages, hours, and other terms and condi-
tions of employment and, if agreements are reached, em-
body such agreements in signed documents.
(b) On request of the Union, rescind any departures
from terms and conditions of employment that existed
prior to its commencing operations at the North Long
Beach facility on July 1, 2004, retroactively restoring
preexisting terms of employment, as set forth in the rem-
edy section of this decision.
(c) Make whole, in the manner set forth in the remedy
section of this decision, the unit employees for losses
caused by the Respondent’s failure to apply the terms
and conditions of employment that existed prior to its
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
990
commencing operations at its North Long Beach facility,
subject to the Respondent demonstrating in a compliance
hearing that, had it lawfully bargained with the Union, it
would have, at some identifiable time, lawfully imposed
less favorable terms than those that had existed under its
predecessor.
(d) Within 14 days from the date of this Order, offer
employment to former Candlewood employees Edna
Colter, Debra Smith, Sharie Hailey, and Annie Moss in
the positions they formerly occupied or, if such positions
no longer exist, in substantially equivalent positions,
without prejudice to their seniority and other rights and
privileges previously enjoyed, discharging if necessary
any employees hired in their place.
(e) Within 14 days from the date of this Order, offer
full reinstatement to Tracy Davenport, Nana Williams,
Nereida Jimenez, Gladys Matos, and Tara Smith to their
former jobs or, if those jobs no longer exist, to substan-
tially equivalent positions, without prejudice to their sen-
iority or any other rights or privileges previously en-
joyed.
(f) Make Edna Colter, Debra Smith, Sharie Hailey,
Annie Moss, Tracy Davenport, Nana Williams, Nereida
Jimenez, Gladys Matos, and Tara Smith whole for any
loss of earnings and other benefits suffered as a result of
the discrimination against them in the manner set forth in
the remedy section of the judge’s decision as supple-
mented by the remedy section of this decision.
(g) Within 14 days from the date of this Order, remove
from its files any reference to the unlawful suspensions
and discharges of Tracy Davenport, Nana Williams, Ne-
reida Jimenez, and Tara Smith, the unlawful discharge of
Gladys Matos, and the unlawful refusal to hire Edna
Colter, Debra Smith, Sharie Hailey, and Annie Moss and,
within 3 days thereafter, notify them in writing that this
has been done and that the suspensions, discharges,
and/or refusals to hire will not be used against them in
any way.
(h) Preserve and, within 14 days of a request, or such
additional time as the Regional Director may allow for
good cause shown, provide at a reasonable place desig-
nated by the Board or its agents, all payroll records, so-
cial security payment records, timecards, personnel re-
cords and reports, and all other records, including an
electronic copy of such records if stored in electronic
form, necessary to analyze the amount of backpay due
under the terms of this Order.
(i) Within 14 days after service by the Region, post at
its facility in Long Beach, California, copies of the at-
tached notice marked “Appendix.”62 Copies of the no-
tice, on forms provided by the Regional Director for Re-
gion 21, after being signed by the Respondent’s author-
ized representative, shall be posted by the Respondent
and maintained for 60 consecutive days in conspicuous
places including all places where notices to employees
are customarily posted. Reasonable steps shall be taken
by the Respondent to ensure that the notices are not al-
tered, defaced, or covered by any other material. In the
event that, during the pendency of these proceedings, the
Respondent has gone out of business or closed the facil-
ity involved in these proceedings, the Respondent shall
duplicate and mail, at its own expense, a copy of the no-
tice to all current employees and former employees em-
ployed by Respondent at any time since July 1, 2004.
(j) Within 21 days after service by the Region, file
with the Regional Director a sworn certification of a re-
sponsible official on a form provided by the Region at-
testing to the steps that the Respondent has taken to
comply.
APPENDIX
NOTICE TO EMPLOYEES
POSTED BY ORDER OF THE
NATIONAL LABOR RELATIONS BOARD
An Agency of the United States Government
The National Labor Relations Board has found that we vio-
lated Federal labor law and has ordered us to post and obey
this notice.
FEDERAL LAW GIVES YOU THE RIGHT TO
Form, join, or assist a union
Choose representatives to bargain with us on
your behalf
Act together with other employees for your bene-
fit and protection
Choose not to engage in any of these protected
activities.
WE WILL NOT fail or refuse to recognize and to bargain
in good faith with Service Employees International Un-
ion, Local 434B (the Union), as the collective-bargaining
representative of our employees in the following separate
appropriate units.
The Base Unit
All full-time and regular part-time nurses aides, certi-
fied nurse assistants, restorative aides, orderlies, dietary
62 If this Order is enforced by a judgment of a United States court of
appeals, the words in the notice reading “Posted by Order of the Na-
tional Labor Relations Board” shall read “Posted Pursuant to a Judg-
ment of the United States Court of Appeals Enforcing an Order of the
National Labor Relations Board.”
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
991
employees, activity assistants and housekeeping em-
ployees employed at the nursing facility.
The LVN Unit
All full-time and regular part-time Licensed Vocational
Nurses (LVNs) employed at the nursing facility.
WE WILL NOT unilaterally change wages, hours, and
other terms and conditions of employment of employees
in the Base and LVN units, without first giving notice to
and bargaining with the Union.
WE WILL NOT refuse to hire job applicants because of
their union membership or sympathies.
WE WILL NOT suspend or discharge any employee for
engaging in union or other concerted protected activities.
WE WILL NOT inform employees that our North Long
Beach facility is not a union facility.
WE WILL NOT in any like or related manner interfere
with, restrain, or coerce employees in the exercise of the
rights listed above.
WE WILL recognize and, on request, bargain collec-
tively with the Union as the exclusive representative of
the employees in both the Base and LVN units with re-
spect to rates of pay, wages, hours, and other terms and
conditions of employment and, if agreements are
reached, embody such agreements in signed documents.
WE WILL, on request of the Union, rescind any depar-
tures from terms and conditions of employment that ex-
isted prior to our commencing operations at the North
Long Beach facility on July 1, 2004, retroactively restor-
ing preexisting terms of employment.
WE WILL make whole the unit employees for losses
caused by our failure to apply the terms and conditions of
employment that existed immediately prior to our com-
mencing operations at our North Long Beach facility,
subject to our demonstrating in a compliance hearing
that, had we lawfully bargained with the Union, we
would have, at some identifiable time, lawfully imposed
less favorable terms than those that had existed under our
predecessor, Covenant Care Orange, Inc.
WE WILL, within 14 days from the date of the Board’s
Order, offer employment to former Candlewood employ-
ees Edna Colter, Debra Smith, Sharie Hailey, and Annie
Moss in the positions they formerly occupied or, if such
positions no longer exist, in substantially equivalent posi-
tions, without prejudice to their seniority and other rights
and privileges previously enjoyed, discharging if neces-
sary any employees hired in their place.
WE WILL, within 14 days from the date of the Board’s
Order, offer full reinstatement to Tracy Davenport, Nana
Williams, Nereida Jimenez, Gladys Matos, and Tara
Smith to their former jobs or, if those jobs no longer ex-
ist, to substantially equivalent positions, without preju-
dice to their seniority or any other rights or privileges
previously enjoyed.
WE WILL make Edna Colter, Debra Smith, Sharie
Hailey, Annie Moss, Tracy Davenport, Nana Williams,
Nereida Jimenez, Gladys Matos, and Tara Smith whole
for any loss of earnings and other benefits suffered as a
result of the discrimination against them, less any net
interim earnings, plus interest.
WE WILL, within 14 days from the date of the Board’s
Order, remove from our files any reference to the unlaw-
ful suspensions and discharges of Tracy Davenport, Nana
Williams, Nereida Jimenez, and Tara Smith, the unlawful
discharge of Gladys Matos, and the unlawful refusal to
hire Edna Colter, Debra Smith, Sharie Hailey, and Annie
Moss, and WE WILL, within 3 days thereafter, notify them
in writing that this has been done and that the suspen-
sions, discharges, and/or refusals to hire will not be used
against them in any way.
S&F MARKET STREET HEALTHCARE LLC D/B/A
WINDSOR CONVALESCENT CENTER OF NORTH
LONG BEACH
Alan L. Wu and Jean Libby, Esqs., for the General Counsel.
Laurence R. Arnold, Joshua M. Sable, and Scott P. Inciardi,
Esqs. (Foley & Lardner LLP), of San Francisco, California,
for the Respondent.
Dana S. Martinez and Elizabeth Garfield, Esqs. (Holguin and
Garfield), of Los Angeles, California, for the Charging
Party.
DECISION
STATEMENT OF THE CASE
LANA H. PARKE, Administrative Law Judge. This matter was
tried in Los Angeles, California, on September 14 through 16,
October 19 through 21, and November 7 and 8, 2005,1 upon
amended consolidated complaint and amended notice of hear-
ing (the complaint) issued August 11, 2005, by the Regional
Director for Region 21 of the National Labor Relations Board
(the Board) based upon charges filed by Service Employees
International Union, Local 434B, AFL–CIO (the Union or the
Charging Party), by Annie Moss, an individual, and by Tara
Smith, an individual. The amended consolidated complaint,
alleges S&F Market Street Healthcare LLC d/b/a Windsor
Convalescent Center of North Long Beach (Respondent) vio-
lated Section 8(a)(1), (3), and (5) of the National Labor Rela-
tions Act (the Act). Respondent essentially denied all allega-
tions of unlawful conduct.
ISSUES
1. Was Respondent a successor to Covenant Care Orange,
Inc., d/b/a Candlewood Care Center on and after July 1?
2. Did Respondent violate Section 8(a)(5) and (1) of the Act
by refusing to bargain with the Union concerning the terms and
1 All dates herein are 2004, unless otherwise specified.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
992
conditions of employment of employees in appropriate units
represented by the Union?
3. Did Respondent violate Section 8(a)(5) and (1) of the Act
by unilaterally implementing changes to the terms and condi-
tions of employment of employees employed in appropriate
units represented by the Union without prior notice to the Un-
ion and without affording the Union an opportunity to bargain
regarding the changes.
4. Did Respondent violate Section 8(a)(3) and (1) of the Act
on and after June 30 by refusing to hire Edna Colter, Debra
Smith, Sharie Hailey, and Annie Moss?
5. Did Respondent violate Section 8(a)(3) and (1) of the Act
on July 7 by suspending employees Tracy Davenport, Nana
Williams, Nereida Jimenez, and Tara Smith?
6. Did Respondent violate Section 8(a)(3) and (1) of the Act
on July 23 by terminating employees Tracy Davenport, Nana
Williams, Nereida Jimenez, and Gladys Matos?
7. Did Respondent violate Section 8(a)(3) and (1) of the Act
on August 10 by terminating employee Tara Smith?
8. Did Respondent engage in the following independent vio-
lations of Section 8(a)(1) of the Act: inform employees there
was no union at its facility or that the facility was not a union
facility and promulgate and maintain a rule requiring employ-
ees not to remain in the facility parking lot to talk to each other
at the end of their shifts.
On the entire record,2 including my observation of the de-
meanor of witnesses and after considering the briefs filed by
the General Counsel, Respondent, and the Charging Party, I
make the following
FINDINGS OF FACT
I. JURISDICTION
Respondent, a California corporation, doing business as
Windsor Convalescent Center of North Long Beach has, at all
relevant times, been engaged in the operation of a skilled nurs-
ing facility located on Market Street in Long Beach, California
(North Long Beach facility). During the 12-month period
commencing July 1, Respondent derived gross revenues in
excess of $100,000 and purchased and received at the North
Long Beach facility goods valued in excess of $5000, which
originated from points located outside the state of California. I
find Respondent has at all relevant times been an employer
engaged in commerce within the meaning of Section 2(2), (6),
and (7) of the Act. Respondent admits, and I find, the Union
has at all relevant times been a labor organization within the
meaning of Section 2(5) of the Act.3
2 Counsel for the General Counsel’s motion, joined in by the Charg-
ing Party, to strike the documents attached to Respondent’s post-
hearing brief that were not admitted into evidence during the hearing, is
granted. Respondent’s motion to strike counsel for the General Coun-
sel’s references in his posthearing brief to rejected GC Exh. 104 is
granted. The General Counsel’s motion to correct the transcript at
203:16 from “employees” to “employers” is granted.
3 Unless otherwise explained, findings of fact herein are based on
party admissions, stipulations, and uncontroverted testimony.
II. ALLEGED VIOLATIONS OF SECTION 8(a)(5)
A. Successorship Issue and Refusal to Bargain
SnF Management, Inc. (SnF Management) operates skilled
nursing facilities (SNFs) in California under the name “Win-
dsor.”4 Pursuant to its overall business plan, SnF Management
seeks to attract so-called high acuity patients to its SNFs who
qualify for Medicare reimbursement rates. For Respondent’s
purposes, the optimal SNF residents are post-acute care patients
who need a SNF level of care, including rehabilitative services,
for 4 to 6 weeks after hospitalization.
Prior to July 1, Covenant Care Orange, Inc. (Covenant Care)
operated the North Long Beach facility under the business
name, Candlewood Care Center (Candlewood). Covenant Care
was signatory to separate collective-bargaining agreements
with the Union. The agreements had respective terms of Au-
gust 31, 2001 through August 1, 2003 and May 1, 2002 through
August 1, 2004, and covered, respectively, the following units
(the Base unit and the LVN unit):5
The Base Unit6
All full-time and regular part-time nurses aides, certified nurse
assistants, restorative aides, orderlies, dietary employees, ac-
tivity assistants and housekeeping employees employed at the
nursing facility.
The LVN Unit
All full-time and regular part-time Licensed Vocational
Nurses (LVNs) employed at the nursing facility.
Tracy Davenport (Davenport), Gladys Matos (Matos), Edna
Colter (Colter), Sharie Hailey (Hailey), Annie Moss (Moss),
Nana Williams, and Debra Smith served as union stewards at
Candlewood.7
By early 2004, SnF Management was considering acquiring
the North Long Beach facility. In February, SnF Management
reviewed a property condition report on the facility prepared by
4 In addition to Respondent, SnF Management has SNFs in San
Diego, National City, Anaheim, Hawthorne, Los Angeles, Van Nuys,
North Hollywood, and another in Long Beach (Windsor Gardens of
Long Beach).
5 Negotiations following the expiration of the Base unit agreement
continued until the sale of the nursing facility.
6 Respondent refers to this unit as the “Service Unit.”
7 Although Respondent denies knowing, prior to its takeover of the
facility on July 1, which employees were union stewards, I cannot
accept that assertion. Respondent offered supervisory employment to
several Candlewood supervisors, including Candlewood administrator,
Carmen Hernandez. It is reasonable to assume Respondent did so prior
to July 1, and to assume that Respondent worked with Hernandez in
organizing the takeover. Decisions relating to the takeover included
whether or not to recognize the Union, and it is reasonable to infer that
Hernandez communicated union-related information to Respondent.
Logically, the identity of union stewards would have been pertinent
information. Moreover, a list of problem employees prepared by Her-
nandez in June distinguished the names “Davenport,” “Haley,” “Moss,”
and “Debra Smith” with heavy, adjacent black dots, and the name of
“Moss” bore the additional notation, “steward.” It is reasonable to infer
that the dots signified the employees’ union stewardship in the Candle-
wood bargaining units. I find that Respondent knew that Colter, Smith,
Hailey, and Moss were union stewards prior to July 1.
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
993
Eckland Consultants Inc. The report cited numerous mainte-
nance problems including damaged pavement, peeling paint,
inappropriate roof storage, poor water drainage, decayed win-
dow frames, deteriorated flooring and screening, moribund air
conditioning, and clogged plumbing. The report estimated
improvement and repair costs at $187,500. Respondent re-
viewed revenue calculations for the North Long Beach facility,
which showed the facility, as operated by Candlewood, primar-
ily accommodated low acuity patients with commensurately
low reimbursement rates unlike Respondent’s overall SnF
Management plan, which was to attract high reimbursement
rate patients. In the ensuing months, several representatives of
Respondent toured the North Long Beach facility.
Respondent called a number of witnesses to testify regarding
the conditions at the North Long Beach facility prior to July 1.
The testimony of all Respondent’s witnesses need not be fully
recounted. Those of Ken Barry Dyches (Dyches), Vice Presi-
dent of Risk Management and Corporate Compliance with SnF
Management, and Kathleen Leonard (Leonard), Respondent’s
director of human resources, are generally illustrative of the
evidence Respondent offered on this issue. Dyches toured the
North Long Beach facility during the early weeks of June. He
testified that he observed filthy and neglectful conditions in the
facility, e.g., residents drinking liquor they had purchased from
the corner liquor store, unkempt residents, insufficient supplies
of bed linen, deteriorating mattresses, unexplained bruising on
residents, and pigeons, cockroaches, and rodents in the build-
ing. Leonard visited the North Long Beach facility on several
occasions between April and July. She testified she observed
the facility to be dark, dingy, noisy, and noisome, saw evidence
of pigeons inside the building, dead cockroaches, insects, and
rodent droppings, saw cleaning equipment and carts crowding
the hallways, noticed inadequate cleaning and sanitation proce-
dures, observed staff inattention to patients, and found the
medical patients to be inactive, bored, and untidy and the men-
tal patients to be agitated or restless. In Respondent’s opinion,
the conditions it observed at the North Long Beach facility
evidenced an indifference by Candlewood staff toward main-
taining a quality work environment, as “no [employees] would
allow themselves to work in a building that was in [such a
poor] condition.” Accordingly, Leonard recommended to up-
per management that Respondent replace all the staff at the
North Long Beach facility, take measures to provide an appro-
priate level of care for its residents, and completely overhaul
the facility.
The General Counsel, on the other hand, proffered contrary
evidence from former Candlewood employees to the following
effect: the facility was well maintained with only rare and iso-
lated incidents involving pigeons or vermin, which were imme-
diately and effectively addressed by Candlewood management
and staff; the facility’s odor, while intermittently and inescapa-
bly reflecting the bodily functions of incontinent patients, gen-
erally manifested only the antiseptic smell normally associated
with nursing facilities; the nursing staff were attentive to pa-
tients and hygienic and professional in practice and demeanor;
Candlewood regularly provided the residents with mental and
sensory stimulation, as well as physical and social activities,
including monthly candlelight dinners where nonalcoholic
sparkling cider was served.8
Respondent found it was unable to eliminate the entire Can-
dlewood staff prior to takeover, as replacement employees were
not immediately available. Respondent determined, however,
to weed out those Candlewood employees it deemed least suit-
able for employment. Leonard directed Carol Spencer
(Spencer), director of staff development, to obtain assessments
from Carmen Hernandez (Hernandez), Candlewood administra-
tor, as to which employees had objectionable work records and
to conduct her own review of Candlewood employee files with
the purpose of identifying Candlewood employees to whom
Respondent would not offer employment. Further, Respondent
determined that after eliminating unacceptable applicants, it
would offer only temporary employment for up to a 90-day
period to the remainder of the Candlewood staff.
In preparation for its assumption of the Candlewood busi-
ness, Respondent actively recruited employees for the North
Long Beach facility from staff at its other facilities and from
the general population. Respondent also provided job applica-
tions to the existing Candlewood staff, and Leonard, Spencer,
and Carren Chastek (Chastek), Respondent’s regional director
of clinical services, conducted brief job interviews with inter-
ested employees.
There is no evidence Respondent’s interviewers mentioned
the Union in any job interview. There is conflicting evidence
as to whether Respondent told the Candlewood job seekers that
the employment offered was temporary. Leonard, Chastek, and
Spencer testified they told employees that any employment
offered would be temporary for up to 90 days. When employ-
ees asked what was meant by “temporary,” Leonard told them
Respondent would look at their work and assess them.
Re-
spondent did not tell any former Candlewood employee that its
goal was to replace them within 90 days.
Former Candlewood employees testifying for Respondent ei-
ther corroborated Leonard, Chastek, and Spencer’s testimony or
recalled, essentially, that Respondent’s interviewers said em-
ployees would be reviewed for 90 days or would be on 90-days
probation, during which period Respondent would notify them
whether they had “passed” the review. Former Candlewood
employees testifying for the General Counsel generally denied
that Respondent’s interviewers said employment would be
temporary. I do not specifically credit the accounts of one set
of witnesses over the other. Rather, the record supports a find-
ing that while Leonard, Spencer, and Chastek told applicants
their employment would be temporary for up to 90 days, they
also conveyed the clear understanding that Respondent was
hiring them as “temporary” employees in order to assess their
skills and abilities and that Respondent would review their
8 The Charging Party sought to introduce a multipage report on
Southern California Windsor facilities’ regulatory compliance, entitled
“Crisis of Care” prepared by Ari Yampolski, researcher for the Union,
which addressed asserted patient care deficiencies in Windsor facilities.
The purpose of the proffered evidence was to show that Respondent,
being itself remiss in patient care quality, must have been disingenuous
in criticizing Candlewood’s standards or in deciding not to hire certain
employees because of past work performance issues. As the report is
not clearly probative of the issues before me, I declined to receive it.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
994
work during the 90-day period and offer regular employment to
those who passed the review.
Following the interviews, Leonard offered employment to 94
Candlewood employees and managers. Respondent mailed or
hand-delivered offers of employment dated June 30, 2004, to
Candlewood employees, which read, in pertinent part, as fol-
lows:
SUBJECT: OFFER OF TEMPORARY
EMPLOYMENT
. . . .
Congratulations! We are pleased to offer you tempo-
rary employment with Windsor Gardens-North Long
Beach (“Windsor”) for a period of up to 90 days . . . we
look forward to the contributions you will make during
your temporary employment.
. . . .
Because Windsor will not have purchased or taken
over the operations of the facility currently known as Can-
dlewood until July 1st, we have been unable to assess your
skills and abilities, as well as the building’s ongoing op-
erational and staffing needs. It is for this reason that your
offer of employment is temporary in nature. No later than
the expiration of the 90-day period, which ends on Sep-
tember 29th, your employment with Windsor will end,
unless you are selected for regular employment. We will
select our workforce from among the most qualified can-
didates, whether from Candlewood or elsewhere. If you
express a continued interest in employment during this 90-
day period, you will be notified if selected for regular em-
ployment.9
SnF Management assumed ownership and management of
the North Long Beach facility on July 1. Respondent was
aware the Union had represented the Candlewood employees at
the facility and had been signatory to collective bargaining
agreements with Covenant Care. By letter dated June 29, Hirst
had advised Respondent that the Union was the recognized
representative of the Candlewood workers and requested a
meeting to discuss the terms of the collective-bargaining
agreements covering those workers. By letter dated July 1,
Hirst notified Respondent that the Union represented a majority
of the Candlewood employees and again requested a meeting.
Upon its July 1 takeover of the North Long Beach facility,
Respondent employed approximately 120 individuals there,
over 75 percent of whom had been Candlewood employees.
Ten to 12 employees were non-Candlewood recruits, whom
Respondent considered probationary or regular employees.
Respondent issued employee handbooks to both temporary
and probationary employees. Respondent included an em-
ployee handbook in each probationary employee’s employment
packet. Respondent distributed employee handbooks to the
temporary employees at an employee meeting held July 9.
9 It is unnecessary to determine whether all hirees received the letter;
the record as a whole supports a finding that Respondent informed all
former Candlewood employees that it would review their work per-
formance over a 90-day period, during which Respondent would select
qualified employees for regular status and that Respondent termed the
90-day period as “temporary” employment.
Both handbooks contained Respondent’s terms and conditions
of employment for employees in the classifications covered by
the Base and LVN units. Both handbooks contained the fol-
lowing language:
EMPLOYEE STATUS AND COMPENSATION
A. INTRODUCTORY PERIOD
All new and rehired employees work on an introduc-
tory basis for the first ninety-(90) calendar days after their
date of hire. The introductory period is intended to give
new employees the opportunity to demonstrate their ability
to achieve a satisfactory level of performance and to de-
termine whether the new position meets their expectations.
The Company uses this period to do an initial evaluation
of employee capabilities, work habits and overall perform-
ance. . . .
. . . .
Upon satisfactory completion of the introductory pe-
riod, employees enter one of the “regular” employment
classifications.
. . . .
Regular Employee
Employees who have completed their introductory pe-
riod of employment. . . .
. . . .
Temporary Employee
Temporary employees are those who are hired on an
interim basis to temporarily supplement the work force or
to assist in the completion of a specific project. Employ-
ment assignments in this category are of a limited dura-
tion. Employment beyond any initially stated period does
not in any way imply a change in employment status.
Temporary employees retain that status unless and until
notified of a change by the Office Manager. Temporary
employees are ineligible for any of the Company benefit
programs, except those mandated by law.
The employee handbooks given to probationary employees
differed from the handbooks given to temporary employees in
that the former listed ten categories of employee benefits, in-
cluding vacation pay, holiday pay, sick pay, group health and
dental insurance, and employee education reimbursement,10
whereas the latter listed only five categories, all of which were
mandated by law: workers compensation, state disability insur-
ance, unemployment insurance, social security, and paid family
leave.
By letter dated July 7, Respondent’s attorneys replied to the
Union’s earlier requests for bargaining, stating, in pertinent
part:
While we understand that your labor organization was the
recognized representative of certain employees of the previ-
ous owner/employer, it is premature for your organization to
claim representation rights for any of our employees at that
10 Probationary employees did not, however, become eligible for
these benefits until after completion of their 90-day probationary pe-
riod.
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
995
location. Whether or not you can rightfully and lawfully
claim representation rights as to any group of such employees
will depend upon a determination that can only be made once
we have a representative complement of regular employees.
That has not yet occurred. Accordingly, we reject your re-
quest for recognition, and each of your other requests and
demands at this time.
During the 90-days following July 1, Respondent’s supervi-
sors at the North Long Beach facility observed both probation-
ary and temporary employees’ work and decided to retain cer-
tain former Candlewood employees based on work perform-
ance, how they handled their jobs, attendance, and skill level
“just like every other employee.”11 During the 90-day period,
Respondent notified various temporary employees that Re-
spondent had selected them for regular employment. On Aug
10, for example, Leonard offered ten temporary employees
regular jobs. Respondent also listed the names of Candlewood
employees who had been offered and accepted regular em-
ployment in its weekly newsletters to staff. As of October 1,
Respondent had “transitioned” 30–40 temporary employees to
regular status.12
Upon their transition into regular employment, Respondent
gave the temporary employees the same handbooks probation-
ary employees received. Temporary employees who attained
regular status did not have to commence a 90-day probationary
period but, like probationary employees, became permanent
employees upon completion of 90 days’ employment. Both
former Candlewood and non-Candlewood employees, were
eligible for benefits after completion of 90 days employment.
In the weeks following its takeover of the North Long Beach
facility, SnF Management replaced the facility’s air condition-
ing systems, repaired sewage lines, repainted resident rooms,
wallpapered hallways, rebuilt nursing stations, redid the dining
room, purchased shower chairs, and replaced about 70 resident
mattresses, expending between $450,000 and $500,000 on the
repairs/improvements.
As part of its defense to the 8(a)(5) allegations herein, Re-
spondent sought to present evidence that the alleged predeces-
sor’s bargaining units were inappropriate as all LVNs, under
Respondent’s management policies, possessed supervisory
authority as specified in Section 2(11) of the Act; therefore, the
bargaining unit composition under Respondent had so altered
as to obviate its successorship to Candlewood. All issues re-
garding appropriateness of the above-described units, including
the supervisory status of LVNs, were resolved by Decision and
Direction of Election in Case 28–RC–6030 (formerly Case 21–
RC–20417) issued March 22, 2002, resulting in Certification of
Representative on April 25, 2002. The Board refuses to allow
relitigation of unit appropriateness where a predecessor em-
11 Leonard admitted she testified to this effect at her pretrial deposi-
tion. I do not credit Leonard’s denial at trial that employee perform-
ance was a consideration in retention of former Candlewood employ-
ees.
12 The parties dispute whether former, unionized Candlewood em-
ployees formed a majority of the employees in the Base unit at the
expiration of the 90-day period. Given my conclusions hereafter, I do
not find it necessary to resolve this disagreement.
ployer, in whose shoes the successor employer stands, has or
could have litigated that issue. See Hotel Del Coronado, 345
NLRB 306, 307 (2006), and cases cited therein. Accordingly, I
have rejected Respondent’s offer of proof as to the supervisory
status of its LVNs.
B. Respondent’s Position Regarding Union
Representation of Its Employees
On July 1, Tyrone Freeman (Freeman), general president of
the Union, and Hirst visited the North Long Beach facility
while an employer-sponsored employee barbeque was in proc-
ess. In a contentious confrontation, Leonard told them to
leave. According to Leonard, she told the two representatives
that Windsor had purchased the operations and the employees
were now Windsor employees. Hirst testified that, in the pres-
ence of employees, Leonard said there was no union in the
facility. According to employee Tara Smith, Leonard said the
facility was not a union building and the union was not wel-
come there. I credit Hirst’s and Tara Smith’s accounts. They
testified forthrightly, and their recollections are consistent with
Leonard’s later admitted statements.
During July, various union members and representatives
passed out fliers at the North Long Beach facility in an effort to
generate support for the Union. During that same month, Re-
spondent posted and distributed antiunion flyers to its employ-
ees that addressed such topics as the mercenary motives behind
the Union’s efforts to represent employees at the North Long
Beach facility, what a union could and could not do, the Un-
ion’s empty claims, and how the Union spends members’ dues.
On July 23, at a staff meeting of about 40 employees, Leonard
told employees that, like other Windsor facilities, the North
Long Beach facility was union-free.
Antoinette Harris (Harris), activity director for both Candle-
wood and Respondent respectively during relevant times, testi-
fied that in management meetings she attended, Leonard,
Spencer, and Dyches repeatedly asked the managers to keep
them informed of employee interest in the Union and to try to
discourage employees from seeking union representation. Re-
spondent urges that Harris’ testimony be discredited, pointing
out the implausibility of testimony to the effect that Respon-
dent’s managers repeated antiunion cautions at every single
management meeting. While exaggeration unquestionably
detracts from credibility, I am unwilling to conclude that Harris
entirely fabricated the statements. It is inherently probable,
particularly after the union representatives’ acrimonious visit to
the facility, that some mention of the Union occurred in man-
agement meetings, and I observed Harris to be direct and clear
in her testimony, if hyperbolic. I find, therefore, that Respon-
dent instructed its supervisors to watch for and to discourage
union activity. The complaint does not allege that Respondent’s
instructions violate the Act, and there is no evidence Respon-
dent intended for any supervisor to effect its directives in an
unlawful manner.13
However, Harris’ testimony, as well as
Respondent’s statements that the facility was nonunion and its
13 Watching for union activity does not automatically denote unlaw-
ful surveillance and discouraging it may be lawfully accomplished by
attentiveness to employee concerns.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
996
dissemination of antiunion fliers, establish that Respondent
strongly and actively preferred not to have union representation
of its employees at the North Long Beach facility.
III. ALLEGED VIOLATIONS OF SECTION 8(a)(3)
A. Respondent’s Refusal to Hire Edna Colter,
Debra Smith, Sharie Hailey, and Annie Moss
As noted above, Spencer obtained from Hernandez a list of
22 employees with allegedly problematic work records (Her-
nandez list). The list included the names of Colter, Debra
Smith, Hailey, and Moss. Spencer also reviewed Candlewood
employees’ files in about the third week of June with the object
of identifying misconduct and disciplinary issues. Spencer
pinpointed 26 employees, including Colter, Debra Smith,
Hailey, and Moss, whose employee records assertedly revealed
undesirable past work performance and/or misconduct and
prepared a summary of the 26 names and findings (Spencer
list). Thereafter, and prior to July 1, Spencer furnished both the
Hernandez and the Spencer lists to Leonard. The Spencer list
showed the following notations for the following alleged dis-
criminatees:
Edna Colter —
Insubordination 03
Insubordination 4/04
Debra Smith —
Poor attendance
5 in 4 months for ‘04
Since 2002 started Med error—not
giving meds to Res.
Sharie Hailey—
Insubordination/confrontation
Attendance—poor 7x’s ‘04
Annie Moss —
Creating hostile work environment
[with] other [licensed nurses]14
Because response to its employment advertising was less en-
thusiastic than anticipated, Respondent revised its estimate of
how many Candlewood employees it could initially reject for
employment. Respondent hired almost half the employees
named on the Hernandez and Spencer lists despite their past
work records because of Respondent’s staffing needs.15
Re-
spondent declined to hire Colter, Smith, Hailey, and Moss. In
early July, Respondent sent letters to rejected Candlewood
employees stating, in pertinent part:
Thank you for expressing interest in a position with Windsor
Gardens-North Long Beach. . . . Unfortunately, based upon a
14 The summary Respondent introduced into evidence listed 26
names with attendant notations. Counsel for the General Counsel pro-
duced another document, retrieved from files subpoenaed from Re-
spondent, which did not list the names Debra Smith, Sharie Hailey, and
Annie Moss. Spencer and Leonard both testified the summary pro-
duced by counsel for the General Counsel was an incomplete list, cre-
ated before all employee files had been reviewed. I credit Spencer and
Leonard’s testimony in this regard, as their recollections were clear and
detailed. Although Respondent could not produce documentary evi-
dence to corroborate all the information on the Spencer list, I note the
underlying records were not in Respondent’s possession or control at
all relevant times. Therefore, I find the lack of corroborative evidence
does not negate Spencer’s testimony, which I find reliable.
15 As of the hearing date, two employees on the unsatisfactory list
were still employed by Respondent.
review of your qualifications & other documentation available
to us, we are not in a position to offer you employment at this
time.
B. Respondent’s July 7 Suspensions of Tracy Davenport,
Nana Williams, Nereida Jimenez, and Tara Smith
On July 7, Spencer found employee Shronda Williams cow-
ering in an empty patient’s room. Shronda Williams told
Spencer she was frightened because a group of employees was
threatening her and pressuring her to do something she did not
want to do. Spencer reported the matter to Leonard, who re-
quested information in writing from Shronda Williams.
Shronda Williams gave a brief, handwritten statement to
Spencer, which she turned over to Leonard. In pertinent part,
the statement reads:
When I came to work some people came to me and ask me to
go to union meeting and I was very nerv[ous] so I ask to go
home employee Tara, Tracy and some other people.
Although the note only named two employees, Spencer in-
formed Leonard that Shronda Williams had also accused Ne-
reida Jiminez (Jimenez), Michelle Cozalles (Cozalles),16 and
Nana Williams of threatening her. Leonard asked to speak to
Shronda Williams, but Spencer said the employee was fright-
ened and wanted to go home.
Leonard called in Tracy Davenport (Davenport), Jimenez,
Cozalles, and Tara Smith.17
Without asking them for their
versions of what had transpired among them and Shronda Wil-
liams or otherwise investigating the matter, Leonard told them
they were suspended pending investigation for harassing a co-
worker.
By memorandum dated July 9, Leonard notified Chastek that
14 employees would be replaced by the end of the month. The
memorandum included the names of Davenport, Jimenez, and
Nana Williams, all of whom were still on suspension.
Nearly 2 weeks after the suspensions and following an inter-
view by Leonard with Shronda Williams, Respondent deter-
mined the evidence was insufficient to show wrongdoing by the
suspended employees. On July 20, Respondent reinstated Dav-
enport, Nana Williams, Jimenez, and Tara Smith and paid them
for the work they had missed because of the suspension.
C. Respondent’s July 23 Termination of Gladys Matos
According to Leonard, one day in July, Respondent notified
Gladys Matos (Matos) that she had been taken off the schedule.
Later that day, Hernandez reported to Leonard that Matos had
come to the facility and angrily confronted her in the facility’s
front lobby over the schedule change. Hernandez asked Leo-
nard for approval to fire Matos, and Leonard directed Hernan-
dez to terminate Matos.18
Leonard did not date the alleged
16 Cozalles is not named in the complaint; counsel for the General
Counsel states in his posthearing brief that she did not cooperate in the
investigation. Hereafter, I have omitted her name in describing and
discussing the suspensions.
17 Nana Williams was unavailable.
18 Leonard’s testimony is inconsistent on this point. She initially tes-
tified that Hernandez reported she had already terminated Matos, which
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
997
confrontation between Matos and Hernandez,19 but her testi-
mony indicated it occurred on a day when Matos was not
scheduled to work. Leonard “subsequently” drafted a notice of
employee separation for Matos, on which “insubordination”
and “violation of company policies” were circled as reasons for
separation. Leonard wrote on the notice, “Yelling @ administ.
about assignment confrontational [with] mgmt—per Carmen.”
The separation notice is dated July 23, which is the date of
Matos’ discharge, but there is no evidence the separation notice
was prepared on the same day as the alleged confrontation or
ever shown to Matos. Hernandez did not testify.
Matos testified that her name was removed from the work
schedule on July 7 and 8, which deletions she was able to re-
verse after discussion with Spencer and Hernandez. On the
following day, July 9, Matos’ cousin reported to her that Ma-
tos’ name had again been left off the schedule, but her cousin
was able to resolve the omission. Matos denied having any
scheduling problems thereafter and denied having any confron-
tation with Hernandez. Regarding her discharge, Matos testi-
fied that she worked her scheduled shift on July 23, and at-
tended the employee meeting held that afternoon. At the end of
the meeting, Matos picked up her paycheck, noticed a 4-day
pay shortage, which she discussed with Leonard, who verified
the shortage with accounting personnel, and told Matos she
would have a supplemental check to cover the missing 4 days
by the end of the day.
According to Matos, at about 4 p.m. on July 23, Leonard
called her to her office and gave her the supplemental check
followed by a final paycheck, saying Respondent did not need
her services any longer. Matos requested an exit interview.
According to Matos, Leonard said something about Matos’
warning and incident reports. Matos denied receiving any such
discipline and accused Leonard of not looking at her file. Leo-
nard agreed she had not done so but said Matos was not quali-
fied to work at the facility, which Matos contradicted. Leonard
asked Matos to gather her belongings and leave the facility.
Leonard and Matos’ versions of Matos’ July 23 discharge are
irreconcilably dissimilar. In resolving the credibility of the two
accounts, I have considered not only the manner and demeanor
of the witnesses, but Respondent’s failure to produce available
corroborative or refutative evidence. I note that Leonard was
unclear as to whether Hernandez had already fired Matos when
she sought Leonard’s approval or whether Leonard directed her
to fire Matos. I also note that Leonard was vague as to when
the alleged insubordination took place. While the date Leonard
placed on Matos’ separation notice suggests the claimed insub-
ordination occurred on July 23, the day of discharge, Respon-
dent has not otherwise provided evidentiary support for such a
conclusion. Leonard testified to the effect that Matos was not
scheduled to, and did not work on the date she was discharged.
In contrary testimony, Matos’ said that on her date of dis-
charge, she worked, attended the employee meeting held that
action Leonard approved. She later testified that she directed Hernan-
dez to terminate Matos.
19 Respondent states in its posthearing brief that the incident oc-
curred on July 23, but does not explain the evidentiary basis for this
assertion.
day, pointed out shortages in her paycheck, and received a sup-
plemental check from Leonard. If Matos did not, in fact, work
on July 23, then it is reasonable, indeed requisite, to disbelieve
her account of her discharge. Conversely, if Matos did work
that day, then Leonard’s testimony cannot be accurate. Dis-
proving Matos’ testimony that she worked on July 23, should
have been a simple matter for Respondent, given its access to
attendance and payroll records, but Respondent adduced no
evidence relevant to that issue. It is reasonable to draw an ad-
verse credibility inference from its unexplained failure to do so.
Matos, on the other hand, was clear and detailed as to working
on July 23, her attendance at the employee meeting, her interac-
tion with Leonard regarding inaccurate pay, her receipt of a
supplemental check, and her discharge. I therefore credit Ma-
tos’ testimony.
D. Respondent’s July 23 Termination of
Tracy Davenport, Nereida Jimenez, and Nana Williams
The Spencer list showed the following notations for the fol-
lowing three employees:
Tracy Davenport —
Excessive absences 01
Nereida Jimenez —
Refusal—Insub. 3/04
Nana Williams —
Visitor grievance re conduct
2 family c/o roughness/attitude
Resident c/o reverbal—[illegible],
insulting, manner toward Res.
Eval poor supv./communic
Suspended
Rude to Surveyor—toss a book in
front of her
Ret’d wk 1/1/03
Notwithstanding the work performance information on the
Spencer list, Respondent hired Jimenez, Davenport, and Nana
Williams on July 1. As detailed above, Respondent suspended
them on July 7, and by memorandum dated July 9, scheduled
them for discharge by the end of July. Respondent reinstated
them from suspension on July 20. On July 23, without further
explication, Leonard notified Jimenez, Davenport, and Nana
Williams that Respondent no longer needed their services.
E. Respondent’s August 10 Termination of Tara Smith
According to Leonard, prior to the weekend of August 7 and
8, she heard from employees that Tara Smith intended to avoid
her scheduled work assignment that weekend by calling in sick.
When Tara Smith called in sick as predicted, Leonard decided
to terminate her because she believed she had falsely claimed
illness to avoid working the weekend shifts. When Tara Smith
returned to work on Monday, August 9, she presented a doc-
tor’s excuse stating that Tara Smith required medical leave of
absence from August 7 to August 8. Leonard discounted the
doctor’s note, as she believed doctors’ excuses to be readily
accessible and frequently unreliable. However, before Leonard
could terminate Tara Smith for absenteeism, a problem arose
regarding Tara Smith’s work station assignment on August 9.
According to Jeanne Mawak (Mawak), who supervised Tara
Smith at the North Long Beach facility, Tara Smith was as-
signed on August 9, to work at station 2, rather than station 1A,
her usual work area. Upon finding out that her work assign-
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
998
ment had been changed, Tara Smith told Mawak she was going
home. A short time thereafter, Mawak saw Tara Smith leaving
the facility. According to Mawak, she told Tara Smith not to
leave but to wait until the assistant director, Edna Mapoy
(Mapoy) spoke to her, but Tara Smith exited the building.
Mawak reported to Mapoy that Tara Smith was upset about her
assignment and had left the building. Mapoy said Tara Smith
commonly left work when unhappy about an assignment but
would return. About 15–20 minutes later, Tara Smith returned,
and Mawak told her she had changed her assignment back to
station 1A, where Tara Smith worked for the remainder of the
day. At Leonard’s request, Mawak gave a written statement of
what had occurred, dated August 10, which reads, in pertinent
part:
On Aug 9th, 2004 (approx 0655) . . . Tara Smith, LVN ap-
proached me. She said if I couldn’t get her to work on 1A she
would go home. I told Edna about it & advised me to tell
Tara to speak with the Administrator when she arrives . . . I
admit that I changed the rotation with Tara. . . . Later on,
Edna asked me why I did that & I told her that my intention
was to keep the LVN’s in their stations as they requested so
Tara would stay.
Mapoy also submitted a written statement to Leonard, dated
August 10, which reads, in pertinent part:
Tara Smith . . . wants to be assigned on station 1A only. Gets
upset if assignment changed. Explained to her all charge
nurses will have rotation with their assignment, so all nurses
are familiar with all the residents. Have been very argumenta-
tive. Questions supervisor and will not go on assigned task,
that she feels she does not want to do at that time. Regardless
of anyone around, she will argue with the supervisor. Does
not take the time to address the resident’s concern regarding
medication in a professional way.
Tara Smith’s account of the incident is significantly differ-
ent. According to Tara Smith, upon reporting for work, she and
Elaine Moore (Moore) noticed their assignments had been
changed, and Tara Smith asked Mapoy what was going on.
Mapoy said Respondent wanted the nurses to rotate. Tara
Smith denied being argumentative with Mapoy or telling
Mawak she would leave if the assignment were not changed,
saying she was fine with the new assignment. However, Tara
Smith admitted she may have told Mapoy she was being har-
assed, and she admittedly told Leonard it was mighty strange
and mighty funny that rotations were assigned on Tara Smith’s
scheduled shifts and asked whether the supervisor was also
going to rotate. Tara Smith denied leaving the facility follow-
ing the assignment discussion, saying she went to station 2
where she was assigned and commenced working. In Tara
Smith’s recollection of the events, Mawak, sua sponte, changed
the assignments, putting Tara Smith back to her regular as-
signment at station 1A.
After considering all the testimony, I decline to give full cre-
dence to either Mawak’s or Tara Smith’s accounts of what
occurred on August 9. Tara Smith minimized her confrontation
with her supervisors over her changed assignment, claiming on
one hand that she was fine with the change, but admitting on
the other hand that she accused her supervisor of harassment.
As to Mawak’s account, although she testified that Tara Smith
left the facility against Mawak’s express directive, neither she
nor Mapoy mentioned that in their written statements, and nei-
ther statement reflects any particular concern about Tara
Smith’s threat to go home. It is clear from her statement that
Mawak voluntarily changed the assignments, albeit to keep
peace. I find that Tara Smith engaged in argumentative behav-
ior with her supervisors concerning her assignment but that she
did not leave the facility or otherwise refuse to work.
On August 10, Judy Gonzalez, North Long Beach facility
administrator, and Leonard met with Tara Smith. One of the
two managers told Tara Smith that she was terminated for her
weekend absence and for her response to the assignment
change. Respondent’s separation notice, dated August 10,
noted the reasons for separation as insubordination and absen-
teeism.
A few weeks later, Respondent issued a warning notice,
dated September 4, and signed by Mawak, to a non-
Candlewood CNA, which stated, “argued [with] RN Supervisor
about assignment; could not comprehend that there is no such
thing as ‘my run,’ changed assignment on own . . . wasted time
complaining about her assigned run for time that could’ve been
spent on working in getting things done.” There is no evidence
the CNA was otherwise disciplined.
IV. ALLEGED INDEPENDENT VIOLATIONS OF SECTION 8(a)(1)
On July 1, Respondent hosted a staff barbecue for North
Long Beach facility employees on the facility’s patio. During
the festivities, Tyrone Freeman (Freeman), general president of
the Union, and Hirst went to the patio and spoke to various
employees. Leonard asked them to leave. According to Leo-
nard, she told the two representatives that Windsor had pur-
chased the operations and the employees were now Windsor
employees. Hirst testified that, in the presence of employees,
Leonard said there was no union in the facility. According to
Tara Smith, Leonard said that the facility was not a union
building and the union was not welcome there. When the two
men refused to leave, Leonard called the police and so in-
formed the two men who left before the authorities arrived.
On July 23, Respondent held a staff meeting of about 40 em-
ployees. Leonard spoke at the meeting. According to Jimenez
and Tara Smith, Leonard told the group of employees that the
North Long Beach facility was not a union building and the
employees were not union. Davenport also recalled that Leo-
nard told the employees they could no longer converse in the
building or after work but must clock out and go straight
home.20 Leonard explained that, like other Windsor facilities,
the North Long Beach facility was union-free.
20 Davenport was the only one of five employee witnesses to the
meeting to recall the statement. Leonard denied hearing or making any
such statement. Given the lack of corroborative testimony by witnesses
who might be expected to remember such a statement if it were made, I
decline to credit Davenport’s testimony.
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
999
DISCUSSION
I. ALLEGED VIOLATINOS OF SECTION 8(a)(5)
A. Successorship Issue and Refusal to Bargain
The Supreme Court in NLRB v. Burns Intl. Security Services,
406 U.S. 272 (1972), held that a new employer has a duty to
recognize and bargain with an incumbent Union when two
general factors, which can be summarized as (1) continuity of
the enterprise and (2) continuity of the work force, are present.
The Burns rationale applies to situations where the Union is the
established bargaining agent. Fall River Dyeing & Finishing
Corp. v. NLRB, 482 U.S. 27 (1987). Continuity of the work
force requires that the former employees of the predecessor
employer who were employed in the predecessor’s bargaining
unit(s) must comprise a majority of the new employer’s com-
plement within the same bargaining unit(s) at the point where
the employer has achieved a “substantial and representative
complement” of employees. Fall River, supra at 47.
Here, it is clear, and no party contends otherwise, that conti-
nuity of the enterprise exists. Although Respondent intended to
upgrade the patient acuity level, and consequently the Medicare
reimbursement rate, of the North Long Beach facility, the en-
terprise continued as a skilled nursing facility, subject to the
same nursing protocols and regulatory requirements as before.
The issue in contention is whether continuity of the work force
existed. Respondent does not dispute that its initial work force
was substantially the same as that employed by Candlewood,
the predecessor employer. However, Respondent argues that it
purchased the operations with the fully formed and justifiable
intention of discharging all the predecessor’s employees as
soon as possible. While exigent circumstances forced Respon-
dent to hire the predecessor’s employees in order to keep the
facility running, it hired them only as temporary workers who
would be replaced as soon as practicable. Employment of tem-
porary workers, Respondent insists, does not establish continu-
ity of the work force; ergo, Respondent was not a successor to
Candlewood on July 1, and therefore not obliged to recognize
and bargain with the incumbent union representing Candle-
wood’s employees at that time. Respondent further argues that
determination of any bargaining obligation should be deferred
until the point where Respondent achieved a substantial and
representative complement of “regular” employees, that is, after
the completion of the former Candlewood employees’ 90-day
temporary employment (October 1). As of October 1, Respon-
dent points out, its relevant employee complement was com-
posed of less than 50 percent of the former Candlewood em-
ployees, thereby negating any obligation to bargain with the
Union at that time.
The General Counsel, on the other hand, contends that essen-
tially the same work force existed after Respondent took over
the North Long Beach facility as before and that Respondent’s
claimed intention of replacing the Candlewood employees was
spurious; therefore Respondent meets the Supreme Court’s tests
for successorship.
The parties generated considerable evidence and argument
regarding Respondent’s motivation in initially staffing the
North Long Beach facility upon its takeover on July 1. In de-
fending the temporary hiring of Candlewood employees, Re-
spondent portrayed the North Long Beach facility as a dilapi-
dated establishment where its predecessor warehoused elderly
inhabitants in a neglectful, noisome, grimy muddle of Dicken-
sian proportions. The General Counsel’s witnesses, on the
other hand, described a hygienically snug establishment where
cosseted residents toasted each other with nonalcoholic spar-
kling cider at monthly candlelight dinners. I suspect reality lies
somewhere between the parties’ polarized views. It is not,
however, incumbent upon me to determine the cleanliness and
patient-care quality of the facility at the time Respondent de-
cided to purchase the business. The issue here is not the objec-
tive accuracy of Respondent’s opinion, but the sincerity of it.
In other words, was Respondent genuinely appalled at the con-
dition of the Candlewood facility and its residents, or did Re-
spondent feign revulsion in order to justify hiring former Can-
dlewood employees on a temporary basis so as to avoid succes-
sorship obligations and/or to justify discharge of union adher-
ents among its predecessor’s employees.21
No evidence was adduced to justify an inference that Re-
spondent mendaciously maligned the Candlewood facility.
Rather, the evidence suggests that, at least as of June, the Can-
dlewood facility could indeed have used a little (hygienic) spit
and polish. Moreover, after its takeover, Respondent expended
nearly half a million dollars on repairs/improvements to the
facility, which is potent evidence of the sincerity of Respon-
dent’s opinion. Whether the facility’s need of a good spring
cleaning justified Respondent’s rejection of the Candlewood
staff as regular employees is another question, but here again,
there is little evidence to gainsay Respondent’s assertion.22
A more pertinent question, at least as it relates to the succes-
sorship issue, is whether the hiring of predecessor employees as
something other than regular or permanent employees negates
continuity of the work force. Respondent argues that because it
classified the Candlewood employees as 90-day temporary
employees and so notified them, any determination of continu-
ity of the work force must be delayed until the expiration of the
90-day period, i.e., until October 1, by which time Respon-
dent’s work force was no longer composed of a majority of the
Candlewood employees. Respondent cites Houston Building
Service, 296 NLRB 808 (1989), for the proposition that the
Board will not consider “temporary” employees for the purpose
of determining successorship. In Houston, the Board did not
squarely address the question of whether temporary employees
are employees for the purpose of determining successorship, as
the Board therein determined the employees in question did not
have temporary status. However, the case demonstrates the
necessity of determining the actual status of the former Can-
dlewood employees whom Respondent hired.
21 Evidence could, theoretically at least, demonstrate that the Can-
dlewood facility was maintained in so pristine and exemplary a condi-
tion that any criticism of the facility must perforce stem from ulterior
motives. Conversely, as the Charging Party attempted to show through
its proffer of “Crisis of Care,” evidence could, again theoretically,
prove Respondent’s patient-care standards to be so low as to brand its
criticism of any other nursing home a transparent subterfuge. The
evidence does not support either view.
22 The complaint does not allege that Respondent discriminatorily
hired the former Candlewood employees as temporary employees.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
1000
In arguing that Respondent hired the former Candlewood
employees as temporary employees, Respondent distinguishes
between temporary employees and probationary employees. In
Respondent’s view the latter category consists of individuals
who are regular employees, but who must wait a 90-day evalua-
tion period before becoming permanent employees. Respon-
dent’s employee handbook describes this “introductory period”
as “an opportunity [for new employees] to demonstrate their
ability to achieve a satisfactory level of performance . . .
[which] the Company uses . . . to do an initial evaluation of
employee capabilities, work habits and overall performance
. . . .” During the 90-day probationary period, the hiree may be
dismissed if he/she does not meet Respondent’s expectations
and standards. Temporary employees, at least according to
Respondent’s employment handbooks are “hired on an interim
basis to temporarily supplement the work force or to assist in
the completion of a specific project.”
In the absence of evidence to the contrary, I accept that Re-
spondent had nondiscriminatory and perhaps even justifiable
reservations about the quality of work Respondent could expect
from the Candlewood employees. I also accept that Respon-
dent thought it expedient to have a period of time in which to
assess and evaluate the Candlewood staff before recruiting
them as regular or permanent employees and, accordingly, told
Candlewood applicants they would be hired as temporary em-
ployees. A label does not, however, establish status, and no
evidence was adduced herein to show that Respondent intended
to hire the Candlewood employees “on an interim basis to tem-
porarily supplement the work force or to assist in the comple-
tion of a specific project,”23 after which the employment could
be expected to end. On the contrary, in both employment inter-
views of and written employment offers to Candlewood appli-
cants, Respondent gave them to understand that the 90-day
temporary employment period was to permit assessment of
employee skills and abilities and that “qualified” employees
might be selected for regular employment. Although the tem-
porary period of employment would end on September 30, as of
their July 1 hiring date all of the former Candlewood employ-
ees worked regular hours on regular schedules, performed du-
ties that were a regular part of Respondent’s operation, received
regular wages and benefits, and were listed on Respondent’s
payroll as employees. None had a definite or anticipated termi-
nation date, and all had a reasonable prospect of continuing
employment based solely on Respondent’s assessment of their
work performance. See Hicks Oil & Hicksgas, Inc., 293 NLRB
84, 86 (1989), Wayside Realty Group, 281 NLRB 357 fn. 2
(1986); J. P. Sand & Gravel Co., 222 NLRB 83, 84 fn. 2
(1976).
Respondent’s employee “introductory period” applied
equally to former Candlewood employees and probationary
employees.24 Both groups enjoyed the same terms and condi-
tions of employment, and both were excluded from discretion-
23 Respondent’s employee handbook.
24 As stated in the handbooks given to both groups, the introductory
period would “give new employees the opportunity to demonstrate their
ability to achieve a satisfactory level of performance and to determine
whether the new position meets their expectations.”
ary benefit coverage until the expiration of a 90-day period. If
selected for regular employment, former Candlewood employ-
ees did not then commence a probationary period; like proba-
tionary employees, they were eligible for all benefits upon
completion of 90 days employment, regardless of which portion
of the 90 days was designated as temporary. While Respondent
may have more intensely scrutinized the Candlewood employ-
ees’ work than it did that of non-Candlewood hires, in actuality
the former Candlewood workers were in the same employment
posture as Respondent’s probationary employees: they could
anticipate continued employment if their work satisfied Re-
spondent. Thus, the former Candlewood employees hired by
Respondent on July 1, are distinguishable from temporary em-
ployees (as defined by either the Board or Respondent) and are
appropriately analogous to probationary employees. See Hicks
Oil, supra at 87.
Establishment of a 90-day employee probationary period
does not create doubt about the makeup of a work force suffi-
cient to defer a work-force-continuity determination until after
completion of the 90-day period. Sahara Las Vegas Corp., 284
NLRB 337 fn. 4 (1987), enfd. NLRB v. Sahara Las Vegas
Corp., 886 F.2d 1320 (9th Cir. 1989). Therefore, the question
of whether Respondent met the continuity of the work force
requirement of Burns is answered by an examination of Re-
spondent’s work force as of its takeover of the North Long
Beach facility on July 1. At that time, the BASE and LVN
units of Respondent’s work force were overwhelmingly com-
posed of former Candlewood employees who had been repre-
sented by the Union. As both Burns factors, i.e. continuity of
the enterprise and continuity of the work force, were present
July 1, it follows that Respondent was a successor employer to
Candlewood on that date. See Siemens Building Technologies,
Inc., 346 NLRB 53 fn. 1 (2005). As such, Respondent had a
duty to recognize and bargain with the Union upon the Union’s
July 1 and 6 requests that it do so. Respondent’s refusal to
recognize and bargain with the Union since July 1, constitutes
an ongoing violation of Section 8(a)(5) and (1) of the Act.
B. Alleged Unilateral Changes
The General Counsel alleges that Respondent’s post-
takeover, unilateral elimination of the union bulletin board and
prohibition of union-related postings constitutes unilateral
changes unlawful under Section 8(a)(5) of the Act. The Gen-
eral Counsel also alleges that Respondent’s implementation of
a new employee handbook with terms and conditions of em-
ployment different from those effected by the predecessor em-
ployer is an unlawful unilateral change.
A successor employer is generally permitted to set new ini-
tial terms and conditions of employment without first bargain-
ing with the employees’ bargaining representative. See SFX
Target Center Arena Management, LLC, 342 NLRB 725 fn. 3
(2004). The Burns Court, however, recognized an exception to
this principle where “it is perfectly clear that the new employer
plans to retain all of the employees in the unit. . . .” Burns,
supra at 294–295. The Board has found the exception applies if
either of the following circumstances exist: (1) the new em-
ployer has actively or, by tacit inference, misled employees into
believing they would be retained without change in their wages,
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
1001
hours, or conditions of employment; or (2) the new employer
has failed to announce its intent to establish a new set of condi-
tions prior to inviting former employees to accept employment.
Spruce Up Corp., 209 NLRB 194, 195 (1974). Here, Respon-
dent informed employees they would be hired as temporary
employees, describing a 90-day probationary period. As the
Board noted in Spruce Up:
When an employer who has not yet commenced operations
announces new terms prior to or simultaneously with his invi-
tation to the previous work force to accept employment under
those terms, we do not think it can fairly be said that the new
employer “plans to retain all of the employees in the unit,” as
that phrase was intended by the Supreme Court.25
When the possibility that the predecessor’s employees may
not enter into an employment relationship with the new em-
ployer is a real one, the Board does not consider it “perfectly
clear” that the new employer “plans to retain all of the employ-
ees in the unit.” Ibid. Here, Respondent informed the Candle-
wood applicants that they would be employed only in a tempo-
rary or probationary status for 90 days. That should have sig-
naled to the applicants that terms and conditions of employment
with Respondent were not going to be identical with those of its
predecessor, and they could have declined employment upon
learning they would have to complete a probationary period.
Thus, although Respondent’s obligation to recognize and bar-
gain with the Union attached when, on July 1, Respondent had
hired a “substantial and representative” compliment within the
units, Respondent did not violate the Act by setting initial terms
of employment. Contrast Elf Atochem North America, Inc., 339
NLRB 796 (2003) (Employer a “perfectly clear” successor
when it informed employees it would provide them employ-
ment, recognize their seniority, and grant equivalent salaries
and benefits.)26
Regarding the alleged unilateral elimination of the union bul-
letin board and prohibition of union-related postings, it is clear
that bulletin board matters are mandatory subjects of bargain-
ing. ATC/Vancom of California, L.P., 338 NLRB 1166 (2003);
RCN Corp., 333 NLRB 295 (2001); Arizona Portland Cement
Co., 302 NLRB 36, 44 (1991). Concerning bulletin board post-
ings, the Board has stated:
The legal principles applicable to cases involving access to
company-maintained bulletin boards are simply stated and
well established. In general, “there is no statutory right of
employees or a union to use an employer’s bulletin board.”
However, where an employer permits its employees to utilize
its bulletin boards for the posting of notices relating to per-
25 Spruce Up Corp., supra at 196.
26 Citing NLRB v. Advanced Stretchforming Intl., 233 F.3d 1176,
1180 (9th Cir. 2000), the Charging Party argues that Respondent for-
feited its right to set initial terms by informing employees there would
be no union at the facility. The instant facts are distinguishable. In
Stretchforming, the employer told its predecessor’s employees prior to
interviewing and hiring them that there would be no union at its facil-
ity. The Board considered such to be imposition of an unlawful condi-
tion, which vitiated the employer’s right to determine other legitimate
initial terms. See Advanced Stretchforming Intl., 323 NLRB 529
(1997). Here Respondent set no unlawful preemployment conditions.
sonal items . . ., it may not “validly discriminate against no-
tices of union meetings which employees also posted.” More-
over, in cases such as these, an employer’s motivation, no
matter how well meant, is irrelevant. [Footnotes omitted.]27
Consistent with Respondent’s above-enunciated right to set
initial terms and conditions of employment for the Base and
LVN unit employees it hired on July 1, Respondent had no
obligation to provide a bulletin board for union postings; its
only obligation in that regard was to bargain over the institution
of a union bulletin board along with all other terms and condi-
tions of employment of the Base and LVN unit employees.28
As described earlier, Respondent has violated Section 8(a)(5)
of the Act by refusing to recognize and bargain with the Union
regarding its employees in the BASE and LVN units, which
encompasses the obligation to bargain over all terms and condi-
tions of such employees’ employment, including provision for
union bulletin boards. However, Respondent did not violate the
Act by setting initial terms of employment for the Candlewood
unit employees; I shall, therefore, dismiss the complaint allega-
tions of unlawful unilateral changes.
II. ALLEGED VIOLATIONS OF SECTION 8(a)(3)
A. Respondent’s Refusal to Hire Edna Colter,
Debra Smith, Sharie Hailey, and Annie Moss
The complaint alleges that Respondent violated Section
8(a)(3) and (1) by failing and refusing to hire Colter, Debra
Smith, Hailey, and Moss on July 1 because of their positions as
union stewards during their employment with Respondent’s
predecessor. In alleged refusal-to-hire cases, the General
Counsel bears the burden under FES29 of showing the follow-
ing: Respondent was hiring at the time the alleged discrimina-
tees applied for employment, the alleged discriminatees had
experience and training relevant to the requirements of the
available employment positions, and antiunion animus contrib-
uted to Respondent’s decision not to hire them.
It is clear Respondent was hiring during the relevant time pe-
riod. It is also clear that Colter, Debra Smith, Hailey, and Moss
had experience and training relevant to the available positions.
Accordingly, the General Counsel has met its burden as to the
first two elements of FES. As to the third element, “the allega-
tions of unlawful discrimination . . . must be supported by af-
firmative proof establishing by a preponderance of the evidence
that the Respondent’s conduct was unlawfully motivated.” Ken
Maddox Heating & Air Conditioning, 340 NLRB 43, 45
(2003).
Unlawful motivation may be established by circumstantial
evidence, the inferences drawn therefrom, and the record as a
27 Honeywell, Inc., 262 NLRB 1402 (1982), enfd. 722 F.2d 405 (8th
Cir. 1983); see also Johnson Technology, Inc., 345 NLRB 762 (2005).
28 Irrespective of its obligation to bargain with the Union, Respon-
dent could not discriminate against employee use of company bulletin
boards for union postings if Respondent otherwise permitted personal
postings. The General Counsel did not plead such discrimination in the
complaint, and contrary to counsel for the General Counsel’s post-
hearing argument, the matter was not fully litigated. Accordingly, I
decline to address this issue.
29 331 NLRB 9 (2000), affd. 301 F.3d 83 (3d Cir. 2002).
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
1002
whole. Tubular Corp. of America, 337 NLRB 99 (2001).
Unlawful motive may, for example, be inferred from such cir-
cumstantial evidence as animus and disparate treatment. Over-
nite Transportation, 335 NLRB 372, 375 (2001). The General
Counsel adduced evidence of Respondent’s animus toward
unionization of its employees: (1) Respondent waged an anti-
union campaign; (2) Respondent told employees the North
Long Beach facility was nonunion; (3) Respondent directed its
supervisors to keep its managers informed of employee interest
in the Union and to discourage union support; (4) Respondent
unlawfully refused to recognize the Union as its employees’
bargaining representative. Considering Respondent’s demon-
strated animus, I find the General Counsel has met his initial
burden of showing that the refusal to hire Colter, Debra Smith,
Hailey, and Moss on July 1, was unlawfully motivated. Since
the General Counsel has met his initial burden for the refusal-
to-hire allegations, the burden shifts to Respondent to show it
would not have hired the four individuals even in the absence
of their union activities or affiliation while employed by Re-
spondent’s predecessor. FES, supra at 12; Wright Line, 251
NLRB 1083, 1089 (1980), enfd. 662 F.2d 899 (1st Cir. 1981),
cert. denied 455 U.S. 989 (1982).
Respondent maintains that Candlewood employees’ past
work performance was the sole measure by which Respondent
gauged Candlewood applicants. Respondent investigated the
work records of the Candlewood employees by consulting with
Candlewood’s administrator, Hernandez, as well as conducting
its own review of Candlewood personnel files, resulting in a
compilation of problem-employee names (the Hernandez and
Spencer lists). Respondent points out that it declined to hire to
nearly half the Candlewood employees whose names appeared
on the Hernandez and Spencer lists, not just the four named in
the complaint, and in each instance made a nondiscriminatory
determination that the documented misconduct rendered the
applicant unfit for employment. According to Respondent, the
Candlewood personnel files of Colter, Debra Smith, Hailey,
and Moss showed significant performance blemishes. The files
recorded Colter as being insubordinate in both 2003 and 2004,
Debra Smith as having poor attendance and an error in adminis-
tering medication, Hailey as being insubordinate and confronta-
tional and having poor attendance, and Moss as creating a hos-
tile work environment for other employees.
The General Counsel argues that the past misconduct of
Colter, Debra Smith, Hailey, and Moss was no more significant
that that of other listed employees whom Respondent hired,
which in itself demonstrates discriminatory motivation. While
the misconduct distinctions among the four former union stew-
ards and the listed employees who were hired may be subtle, I
cannot, from that alone, reject Respondent’s explanation of
why it hired certain employees over others. As the Board has
pointed out, “In passing the Act, Congress never intended to
authorize the Board to question the reasonableness of any
managerial decision nor to substitute its opinion for that of an
employer in the management of a company or business,
whether the decision of the employer is reasonable or unrea-
sonable, too harsh or too lenient. The Board has no authority to
sit in judgment on managerial decisions.” Neptco, Inc., 346
NLRB 18 fn. 16 (2005), quoting NLRB v. Florida Steel Corp.,
586 F.2d 436, 444–445 (5th Cir. 1978). I cannot, therefore,
simply discount Respondent’s managerial opinion that the past
derelictions of Colter, Debra Smith, Hailey, and Moss rendered
them more unfit for employment than other employees; I can
only determine whether probative evidence shows Respon-
dent’s opinion to be disingenuous, which I have not found.
Respondent’s animus coupled with Colter, Debra Smith,
Hailey, and Moss’ status as union stewards may create suspi-
cion as to the legitimacy of Respondent’s reason for including
them in its rejected Candlewood employee pool. However,
mere suspicion that union activity was a basis for Respondent’s
refusal to hire is insufficient to reject Respondent’s otherwise
cogent defense of its hiring decisions. See Neptco, Inc., supra,
slip op. at 2. Accordingly, I find that Respondent has met its
shifted burden of demonstrating that it would not have hired
Colter, Debra Smith, Hailey, and Moss even in the absence of
their past union activities and adherence, and I will dismiss the
complaint allegations relating to them.
B. Respondent’s July 7 Suspensions of Tracy Davenport,
Nana Williams, Nereida Jimenez, and Tara Smith
On July 7, Davenport, Nana Williams, Jimenez, and Tara
Smith invited coworker Shronda Williams to a union meeting,
after which Shronda Williams accused them of harassment and
intimidation. Respondent argues that its subsequent suspension
of Davenport, Nana Williams, Jimenez, and Tara Smith was a
reasonable response to the serious coworker accusation leveled
against them and that it was entitled to treat the four employees
“as it would any other employees accused of harassing cowork-
ers, notwithstanding that the alleged harassment also involved
union activity.” Respondent contends the General Counsel has
failed to establish that the suspensions were imposed because of
the union activities of the suspended employees.
There is neither dispute nor question that inviting another
employee to a union meeting is activity protected by the Act.
The four suspended employees’ conduct in inviting Shronda
Williams to a union meeting is protected. There is no question
Respondent knew the nature of the employees’ conduct before
it suspended them, and Respondent’s post-suspension investi-
gation admittedly revealed no misconduct to negate the Act’s
protection. Nevertheless, Respondent argues it did not violate
Section 8(a)(3) of the Act, as it was not motivated by antiunion
animus in suspending the employees. Rather, Respondent as-
serts, it believed in good faith, albeit mistakenly, that the sus-
pended employees had engaged in misconduct.
As Respondent points out, the question of whether Respon-
dent violated Section 8(a)(3) in terminating Davenport, Nana
Williams, and Jimenez rests on its motivation.30 The Board has
established an analytical framework for deciding cases turning
on employer motivation in Wright Line, supra.
To prove an
employee was discharged in violation of Section 8(a)(3), the
General Counsel must first persuade, by a preponderance of the
evidence, that an employee’s protected conduct was a motivat-
ing factor in the employer’s decision. If the General Counsel
30 An employer’s reasonable belief of misconduct may justify ad-
verse employment action. McKesson Drug Co., 337 NLRB 935, 936
(2002).
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
1003
makes such a showing, the burden of persuasion shifts to the
employer “to demonstrate that the same action would have
taken place even in the absence of the protected conduct.”
Wright Line, supra at 1089. The burden shifts only if the Gen-
eral Counsel establishes that protected conduct was a “substan-
tial or motivating factor in the employer’s decision.” Bud-
rovich Contracting Co., 331 NLRB 1333 (2000). Put another
way, “the General Counsel must establish that the employees’
protected conduct was, in fact, a motivating factor in the [em-
ployer’s] decision.” Webco Industries, 334 NLRB 608 fn. 3
(2001).
The elements of discriminatory motivation are union activ-
ity, employer knowledge, and employer animus. Farmer Bros.
Co., 303 NLRB 638, 649 (1991). Here, these elements are
clearly met: in approximately the same time period as the sus-
pensions, Respondent demonstrated animus toward employees’
union sympathies and protected activities, as stated earlier, by
stressing that the North Long Beach facility was nonunion, by
directing its supervisors to watch for and discourage employee
interest in the Union, and by unlawfully refusing to recognize
and bargain with the Union. Moreover, in suspending the four
employees, Respondent failed to ask any of them for their ver-
sions of what occurred with Shronda Williams.
Rather, Re-
spondent relied solely on Shronda Williams’ reported panic at
being invited to a union meeting, although her written report
reveals neither word nor deed that might account for her ex-
treme alarm: “When I came to work some people came to me
and ask me to go to union meeting and I was very nerv[ous] so
I ask to go home.”
These circumstances support an inference that the protected
activities of Davenport, Nana Williams, and Jimenez were mo-
tivating factors in Respondent’s decision to suspend them.
Wright Line, supra at 1089. Accordingly, I find the General
Counsel has met his initial burden. Such a finding does not
mean that the discharges were in fact “unlawfully motivated.”
Id. As the Board has noted, “The existence of protected activ-
ity, employer knowledge of the same, and animus . . . may not,
standing alone, provide the causal nexus sufficient to conclude
that the protected activity was a motivating factor for the ad-
verse employment action.” Shearer’s Foods, Inc., 340 NLRB
1093, 1094 fn. 4 (2003); see also American Gardens Manage-
ment Co., 338 NLRB 644, 645 (2002). The General Counsel’s
establishment of the Wright Line factors does, however, shift
the burden to Respondent to demonstrate that it would have
discharged Davenport, Nana Williams, and Jimenez even in the
absence of their protected activities.
Respondent has not met its burden. Not only did Respondent
fail to explain how Shronda Williams’ vague and mild account
of being invited to a union meeting could reasonably have
prompted immediate suspension of five employees, it also
failed to explain why Leonard neglected to ask any of the sus-
pended employees their version of what had occurred before
summarily suspending them.31 Respondent’s vigorous opposi-
31 I have not overlooked Spencer’s description of Shronda Williams’
abject terror, but a comparison of that description with the tame content
of her written account would surely suggest to a sensible administrator,
tion to unionization, its unlawful refusal to bargain with the
Union, and its inexplicable willingness to forego even minimal
investigation while hastily suspending employees for promot-
ing a union meeting reasonably lead to a conclusion that the
suspensions were discriminatorily motivated. See Midnight
Rose Hotel & Casino, 343 NLRB 1003, 1004 (2004); Hewlett
Packard Co., 341 NLRB 492 fn. 2 (2004) (failure to conduct
investigation evidence of discriminatory intent.) I find, there-
fore, that Respondent violated Section 8(a)(3) of the Act by
suspending Davenport, Nana Williams, Jimenez, and Tara
Smith on July 7.32
C. Respondent’s July 23 Terminations of Tracy Davenport,
Nana Williams, and Nereida Jimenez
Davenport, Nana Williams, and Jimenez had been back to
work from unlawful suspension for only a few days when Re-
spondent fired them. The question of whether Respondent
violated the Act in terminating Davenport, Nana Williams, and
Jimenez rests on its motivation. As to their terminations, the
General Counsel has clearly proven Wright Line’s requisite
elements of union activity, employer knowledge, and employer
animus toward union representation of its employees: Daven-
port, Nana Williams, and Jimenez were union proponents and
Respondent’s managers knew them to be so, as Leonard had
suspended them when they engaged in union activity only 16
days earlier. Respondent demonstrated animus toward employ-
ees’ union sympathies and protected activities, as discussed
earlier, by stressing that the North Long Beach facility was
nonunion, by directing its supervisors to watch for and discour-
age employee interest in the Union, by unlawfully refusing to
recognize and bargain with the Union, and by discriminatorily
suspending Jimenez, Davenport, and Nana Williams on July 7.
Accordingly, I find the General Counsel has met his initial
burden by “making a showing sufficient to support the infer-
ence” that the protected activities of Davenport, Nana Wil-
liams, and Jimenez were motivating factors in Respondent’s
decision to discharge them. Wright Line, supra at 1089. The
General Counsel’s establishment of the Wright Line factors
shifts the burden to Respondent to demonstrate that it would
have discharged Davenport, Nana Williams, and Jimenez even
in the absence of their protected activities.
Respondent contends that the termination of these three em-
ployees was merely part and parcel of Respondent’s legitimate
and established plan to replace all Candlewood employees who
had not proven themselves worthy of Windsor employment.
Respondent points out that on July 9, Leonard named 14 em-
ployees whose employment Respondent intended to terminate
by the end of July. According to Respondent, the names of
Davenport, Nana Williams, and Jimenez, who were at that time
in unlawful suspension, were included among the 14 to be dis-
charged because their names had appeared on the Spencer list
which I have no doubt Leonard is, that a little more inquiry, such as
asking the involved employees what happened, might be prudent.
32 In light of my finding that Leonard did not have a good-faith be-
lief that the five employees had engaged in misconduct when she sus-
pended them, NLRB v. Burnup & Sims, 379 U.S. 21 (1964), does not
apply. See Primo Electric, 345 NLRB 1187 (2005).
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
1004
(although not on the Hernandez list.) The Spencer list noted
the derelictions of the three as follows:
Ms. Davenport —
excessive absences [in 2001]
Ms. Jimenez —
refusal Insub[ordination] 3/04
Nana Williams —
Family c/o roughness/attitude
Resident c/o . . . manner toward
Res[ident]
Eval poor supv./communic
Suspended
Rude to [state inspector]
Ret’d wk 1/1/03
Respondent obviously did not think the above-recorded mis-
conduct rendered the three unfit for initial employment, and it
cannot be that Respondent intended to fire all employees whose
names appeared on the Hernandez or Spencer lists since Re-
spondent retained other listed employees. Presumably, when
hired, Davenport, Jimenez, and Nana Williams joined the cadre
of former Candlewood employees whose work Respondent
would assess in determining whether to offer them regular em-
ployment, and there is no evidence Davenport, Jimenez, or
Nana Williams were unsatisfactory employees during their
approximately 3 weeks of employment. Since Respondent
bears the burden of showing that it would have discharged
Davenport, Nana Williams, and Jimenez regardless of their
union activities, Respondent must explain why they were se-
lected for termination over other employees similarly situated.
Respondent has not done so. In view of its demonstrated ani-
mus, Respondent’s failure to state any basis for the discharge of
Davenport, Jimenez, or Nana Williams beyond its general de-
sire to replace most former Candlewood employees compels
the conclusion that their discharges were invidiously moti-
vated.33 Respondent has not, therefore, met its shifted burden
of demonstrating that it would have discharged Davenport,
Nana Williams, and Jimenez even in the absence of their pro-
tected activities.34
Accordingly, I find Respondent violated
Section 8(a)(3) and (1) of the Act by discharging Davenport,
Nana Williams, and Jimenez on July 23.
D. Respondent’s July 23 Termination of Gladys Matos
Respondent discharged Matos on July 23. As noted above,
Respondent contends that its discharge of Matos was a nondis-
criminatory consequence of Hernandez’ report of insubordina-
tion, while the General Counsel argues that Respondent’s ani-
mosity toward Matos’ union activities, presumed from her for-
33 While wanting to replace former Candlewood employees may
have been a legitimate reason for discharging some or even most such
employees, an employer “cannot simply present a legitimate reason for
its action but must persuade by a preponderance of the evidence that the
same action would have taken place even in the absence of the pro-
tected activity.” Yellow Ambulance Service, 342 NLRB 804, 804
(2004).
34 The fact that Respondent did not also fire Tara Smith does not al-
ter this conclusion. Evidence suggests that Hernandez may have inter-
vened to save Tara Smith’s job, as Hernandez told Tara Smith on July
26, that she had “put her butt on the line for [Tara Smith’s] job.” Re-
gardless, an employer’s failure to retaliate against all union activists
does not disprove a discriminatory motive. Volair Contractors, 341
NLRB 673 fn. 17 (2004).
mer position as a Candlewood union shop steward, motivated
her discharge. As set forth above, I have resolved the respec-
tive credibility of Leonard and Matos regarding the circum-
stances of Matos’ discharge in favor of Matos.
With regard to the discharge of Matos, the General Counsel
has clearly proven Wright Line’s requisite elements of union
activity, employer knowledge, and employer animus toward
union representation of its employees.35
Given the extent of
Respondent’s animosity toward unionization of its employees,
which, as a former Union Steward Matos would be expected to
promote, the General Counsel has adduced sufficient evidence
to support an inference that Matos’ pretakeover protected con-
duct was a “substantial or motivating factor in the employer’s
decision” to terminate her. See Budrovich Contracting Co.,
supra. Even more compellingly, the General Counsel has also
shown that Respondent presented a false account of Matos’
discharge. False explanations for an employer’s actions sup-
port an inference that the true motive is an unlawful one.
Southside Hospital, 344 NLRB 634 (2005); Fluor Daniel, Inc.,
304 NLRB 970 (1991). Accordingly, I find the General Coun-
sel has met his initial Wright Line burden in this instance. The
burden of persuasion thus shifts to Respondent to “demonstrate
that the same action would have taken place even in the ab-
sence of the protected conduct.” Wright Line, supra at 1089.
Having rejected as false Respondent’s only explanation for the
discharge of Matos, it follows that Respondent has not met its
burden. Accordingly, I find that Respondent discharged Matos
in violation of Section 8(a)(3) of the Act.
E. Respondent’s August 10 Termination of Tara Smith
Under Wright Line, the General Counsel must prove the req-
uisite elements of union activity, employer knowledge, and
employer animus. As discussed above, the General Counsel
has proven Respondent’s knowledge of Tara Smith’s union
activity; Respondent knew Tara Smith was one of five employ-
ees who invited another employee to a union meeting on July 7.
Further, Respondent’s reaction to those employees’ protected
union activities evidences animus toward their union partisan-
ship. Specifically, I have found that Respondent discriminato-
rily suspended Tara Smith because of her union activity. Given
Respondent’s contemporaneous, unlawful conduct toward Tara
Smith, the General Counsel has also adduced evidence suffi-
cient to support an inference that her union activity was a “sub-
stantial or motivating factor in the employer’s decision” to
terminate her. See Budrovich Contracting Co., supra. Accord-
ingly, I find the General Counsel has met his initial Wright Line
burden in Tara Smith’s discharge. The burden of persuasion
thus shifts to Respondent to “demonstrate that the same action
would have taken place even in the absence of the protected
conduct.” Wright Line, supra at 1089.
Respondent maintains that it would have discharged Tara
Smith regardless of her union activity because of her question-
able weekend absence and her insubordination. The General
Counsel contends that Respondent’s absenteeism and insubor-
35 It is unnecessary to repeat the evidence establishing the Wright
Line criteria, which has been earlier detailed.
WINDSOR CONVALESCENT CENTER OF NORTH LONG BEACH
1005
dination defenses are pretexts for ridding itself of a union sup-
porter.
Tara Smith was absent from work on the weekend of August
7 and 8, and there is no dispute that Leonard accused her of
falsely calling in sick. Further, on August 9, Tara Smith argued
with her supervisors about her work assignment. Either or both
of those circumstances could form a lawful basis for discharge,
and the Board does not substitute its business judgment for that
of an employer in deciding what employee conduct justifies
discipline.36 However, it is not enough for Respondent to show
conduct occurred that might justify a discharge; the Board must
analyze relevant evidence to determine whether the conduct,
rather than unlawful considerations, actually motivated the
discharge. See Midnight Rose Hotel & Casino, supra at 1005.
Respondent asserts that unnamed employees informed Leo-
nard that Tara Smith intended to claim a spurious illness to
avoid work the weekend of August 7 and 8. According to Re-
spondent, that alone provoked Leonard’s decision to discharge
Tara Smith, a decision Respondent made without ever mention-
ing the accusations to Tara Smith, much less investigating
them. Tara Smith submitted a doctor’s excuse for her absence,
which Respondent rejected out of hand without any further
inquiry. Respondent produced no corroborative evidence that
Tara Smith deceptively claimed illness to cover for a volitional
absence, and Leonard’s failure even to broach the matter with
Tara Smith before deciding on discharge supports an inference
that something other than good faith prompted the leap to
judgment.
Respondent also claimed that Leonard terminated Tara Smith
for her conduct on August 9: refusing to work if she did not get
the desired assignment, leaving the building, and being insub-
ordinate to a supervisor, the last being the most damning point.
It is true that Tara Smith protested her changed assignment,
accused her supervisor of harassment, and threatened to leave
work. It is equally true that such conduct could form a legiti-
mate basis for discharge. It is not, however, clear that Respon-
dent would normally discharge an employee in similar circum-
stances. Indeed, the evidence is to the contrary. On September
4, less than a month after Tara Smith argued with her supervi-
sor over her assignment, Mawak issued a warning notice to a
non-Candlewood CNA for the following conduct: “argued
[with] RN Supervisor about assignment; could not comprehend
that there is no such thing as ‘my run,’ changed assignment on
own . . . wasted time complaining about her assigned run for
time that could’ve been spent on working in getting things
done.” The CNA’s reported conduct is not appreciably differ-
ent than that resulting in Tara Smith’s discharge. In the ab-
sence of a cogent explanation for the disparate discipline ac-
corded the two employees, I am forced to conclude that Re-
spondent has not met its burden of demonstrating that it would
have discharged Tara Smith even in the absence of her pro-
tected union activity. Accordingly, I find Respondent violated
36 Counsel for the General Counsel argues, essentially, that Respon-
dent’s assignment change was not in the best interests of its patients,
but Respondent’s wisdom in making work assignments is not relevant.
Section 8(a)(3) and (1) of the Act by discharging Tara Smith on
August 10.37
III. ALLEGED INDEPENDENT VIOLATIONS OF SECTION 8(a)(1)
The complaint alleges that Respondent committed the fol-
lowing independent violations of 8(a)(1) by the following con-
duct:
1. On July 1, telling union representatives in the presence of
employees that there was no union at the North Long Beach
facility and that the facility was not a union facility.
2. On July 23, telling employees at a staff meeting that the
North Long Beach facility was not a union facility and that the
employees were not union employees.
3. About July 23, announcing and promulgating a rule re-
quiring all employees to leave Respondent’s premises at the
end of their shifts and not remain in the parking lot to talk to
each other.
On the July 1 and 23 occasions that Respondent’s representa-
tives told employees, or others in employees’ hearing, that the
North Long Beach facility was not a union facility, Respondent
was legally obligated to recognize and bargain with the Union
regarding the Base and LVN unit employees. Respondent’s
continuing refusal to recognize and bargain with the union was
an unfair labor practice, and its continued assertion that it had
no such obligation or that the facility was “not a union facility,”
was of a nature tending to disparage and cause disaffection
from the Union. See Westgate Corp., 196 NLRB 306, 313
(1972) (when an employer delays bargaining, “unrest and sus-
picion are generated . . . and the status of the bargaining repre-
sentative is disparaged”). Respondent’s conduct negated the
Union’s representative role and could reasonably be expected
to undercut the Union’s standing among employees, particu-
larly where employees were in the vulnerable probationary
period of employment and might reasonably believe that union
support would jeopardize permanent employment. See Frue-
hauf Trailer Services, 335 NLRB 393, 394 (2001). Accord-
ingly, I find that by communicating to employees that the North
Long Beach facility was not a union facility, Respondent vio-
lated Section 8(a)(1) of the Act.
As to the allegation that Respondent unlawfully announced
and promulgated a rule requiring all employees promptly to
quit Respondent’s premises after work, no credible evidence
supports the allegation. Accordingly, I shall dismiss this alle-
gation of the complaint.
37 In light of this finding, it is unnecessary to address counsel for the
General Counsel’s alternative theory that Respondent violated 8(a)(1)
of the Act by the discharge, as Tara Smith was engaged in protected
concerted activity by expressing concern over her changed assignment.
I note, however, that while the Board has found concerted conduct
when an individual employee seeks to initiate group action or brings a
group complaint to management attention, Phillips Petroleum Co., 339
NLRB 916, 918 fns. 11 and 12 (2003), there is no evidence that Tara
Smith acted in other than her own self-interest. See K-Mart Corp., 341
NLRB 702, 703 (2004) (protest unauthorized by other employees and
not intended to initiate group action not concerted).
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
1006
CONCLUSIONS OF LAW
1. Respondent is an employer engaged in commerce and in a
business affecting commerce within the meaning of Section
2(6) and (7) of the Act.
2. The Union is a labor organization within the meaning of
Section 2(5) of the Act.
3. Respondent is, and has been since July 1, 2004, a succes-
sor to Covenant Care Orange, Inc., d/b/a Candlewood Care
Center.
4. The following units of Respondent’s employees are ap-
propriate for collective-bargaining purposes within the meaning
of Section 9(b) of the Act:
The Base Unit
All full-time and regular part-time nurses aides, certified nurse
assistants, restorative aides, orderlies, dietary employees, ac-
tivity assistants and housekeeping employees employed at the
nursing facility.
The LVN Unit
All full-time and regular part-time Licensed Vocational
Nurses (LVNs) employed at the nursing facility.
5. The Union has been at all times since July 1, 2004, and is,
the exclusive bargaining representative of the employees in said
units for the purposes of collective bargaining within the mean-
ing of Section 9(a) of the Act.
6. Since July 1, 2004, Respondent has violated Section
8(a)(5) and (1) of the Act by refusing to bargain with the Union
concerning the terms and conditions of employment of employ-
ees in the above-described appropriate units.
7. Respondent violated Section 8(a)(3) and (1) of the Act on
July 7, by suspending employees Tracy Davenport, Nana Wil-
liams, Nereida Jimenez, and Tara Smith.
8. Respondent violated Section 8(a)(3) and (1) of the Act on
July 23 by terminating employees Tracy Davenport, Nana Wil-
liams, Nereida Jimenez, and Gladys Matos.
9. Respondent violated Section 8(a)(3) and (1) of the Act on
August 10 by terminating employee Tara Smith.
10. Respondent violated Section 8(a)(1) of the Act by in-
forming employees there was no union at its facility or that its
facility was not a union facility.
11. The unfair labor practices set forth above affect com-
merce within the meaning of Section 8(a)(1) and (3) and Sec-
tion 2(6) and (7) of the Act.
REMEDY
Having found that Respondent has engaged in certain unfair
labor practices, I find it must be ordered to cease and desist and
to take certain affirmative action designed to effectuate the
policies of the Act.
Respondent having discriminatorily suspended employees
Tracy Davenport, Nana Williams, Nereida Jimenez, and Tara
Smith on July 7, 2004, and having discriminatorily discharged
employees Tracy Davenport, Nana Williams, Nereida Jimenez,
and Gladys Matos on July 23, 2004, and employee Tara Smith
on August 10, 2004, it must offer them reinstatement insofar as
it has not already done so and make them whole for any loss of
earnings and other benefits, computed on a quarterly basis from
date of suspension and/or discharge to date of proper offer of
reinstatement, less any net interim earnings, as prescribed in F.
W. Woolworth Co., 90 NLRB 289 (1950), plus interest as com-
puted in New Horizons for the Retarded, 283 NLRB 1173
(1987). The recommended Order will also provide that Re-
spondent bargain in good faith with the Union as the exclusive
collective bargaining representative of the above-described
units.
[Recommended Order omitted from publication.]