285 NLRB 834
Local 2208, International Brotherhood Of Electrical Workers, Afl-Cio (Simplex Wire And Cable Co.)
834
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
Local 2208, International Brotherhood of Electrical
Workers, AFL-CIO (Simplex Wire and Cable
Company) and Tyco Laboratories, Inc. Case 1-
CC-2135
16 September 1987
DECISION,AND ORDER
By MEMBERS BABSON, STEPHENS, AND
CRACRAFT
On 27 March 1987 Administrative Law Judge
Benjamin Schlesinger issued the attached decision.
The Respondent filed exceptions and a supporting
brief, the Charging Party filed an answering brief,
and the General Counsel filed limited exceptions
and a supporting brief.
The National Labor Relations Board has delegat-
ed its authority in this proceeding to a three-
member panel.
The Board has considered the decision and the
record in light of the exceptions and briefs and has
decided to affirm the judge's rulings, findings, and
conclusions'
and to adopt the recommended
Order.
ORDER
The National Labor Relations Board adopts the
recommended Order of the , administrative law
judge and orders that the Respondent, Local 2208,
International Brotherhood of Electrical Workers,
AFL-CIO, York Beach, Maine, its officers, agents,
and representatives , shall take the action set forth
in the Order.
1 In agreeing with the judge that Tyco and Simplex are not so inte-
grated as to transform Tyco from a neutral employer into a primary em-
ployer, we emphasize that Tyco does not control the day-to-day labor
relations of Simplex.
Gerald Wolper, Esq., for the General Counsel.
Nathan S. Paven, Esq. (Nathan S. Paven & Associates),
of Quincy, Massachusetts, for the Respondent.
Charles Kelso, Esq., and David Kresser, Esq. (Fisher &
Phillips), ,of Atlanta, Georgia, for the Charging Party.
DECISION
STATEMENT OF THE CASE
FINDINGS OF FACT
BENJAMIN SCHLESINGER, Administrative Law Judge.
On 21 August 1986,1 about 35 members of Respondent
Local 2208, International Brotherhood of Electrical
Workers, demonstrated at 12 noon for an hour on both
sides of the driveway leading to the offices of Tyco Lab-
oratories, Inc. (Tyco). About six persons carried picket
signs, one of which stated: "Tyco Unfair to Labor." The
1 All dates refer to 1986, unless otherwise stated.
285 NLRB No. 111
complaint alleges that the demonstration was a second-
ary boycott within the meaning of Section 8(b)(4)(i) and
(ii) (B) of the National Labor Relations Act. 2 Respond-
ent denied that it violated the Act in any manner. It ad-
mitted, however, and I conclude that Respondent is a
labor organization within the meaning of Section 2(5) of
the Act.
For about 20 years, Respondent has represented two
units of employees, of Simplex Wire and Cable Co., (Sim-
plex), a Massachusetts corporation with its office and
place of business in Newington, New Hampshire, where
it manufactures, sells, and distributes underwater tele-
phone signal and power cables.3 One unit consists of
Simplex's approximately 300 production and maintenance
employees; the other, approximately 50 quality control
employees. The last collective-bargaining agreements for
each unit, 3-year agreements, expired by their terms on
31 July.
The day before, while the parties were negotiating the
terms and provisions of a new agreement to become ef-
fective 1 August, Simplex canceled the work on all shifts
commencing 12:01 a.m., 31 July. Employees who report-
ed to work found two cars blocking Simplex's entrance.4
The date, 1 August, was set aside for Respondent's mem-
bership to vote on the ratification of a contract contain-
ing Simplex's last offer. The employees rejected it, but
Respondent offered that its members would continue to
work while negotiations continued. Simplex rejected that
proposal, continued to block access to its facility, locked
the entrance to the plant, and that weekend placed an
advertisement in the local newspaper for permanent re-
placements. As a result, the Union called a strike, com-
mencing at 12:01 a.m., on 5 August, and picketing then
commenced at the front entrance to Simplex's plant. The
strike and picketing were still continuing as of the dates
of the hearing.
The legality of the 21 August picketing" depends en-
tirely on whether Tyco is a "neutral" employer en-
meshed in a labor dispute not its own. If it is a neutral,
then the picketing had a secondary object of coercing
Tyco to pressure Simplex to resolve its labor dispute, to
which Tyco was not a party.6 On the other hand, if
2 The relevant docket entries are as follows: Tyco filed its unfair labor
practice charge on 25 August; the complaint issued on 24 September; and
the hearing was held in Boston, Massachusetts, on 14-15 January 1987.
2 There is no question that Simplex is subject to the Board's ,jurisdic-
tion. Respondent admitted, and I find, that during the calendar year
ending 31 December 1985, Simplex shipped products valued in excess
$50,000 from its Newington facility directly to points outside New
Hampshire and received materials valued in excess $50,000 at its Newing-
ton facility directly from points located outside New Hampshire. Simplex
has annual sales of $50-$60 million; I conclude that Simplex is an em-
ployer engaged in commerce within the meaning of Sec. 2(2), (6), and (7)
of the Act.
4 By agreement between Simplex and Respondent, employees who re-
ported to work and were prevented from working were paid for their
shift, provided that they signed a register maintained in the guardhouse.
s Lest this proceeding, involving only 1 hour of picketing, be consid-
ered de minimis, the Union has stated that it would consider the resump-
tion of its picketing
B The Union's picketing would be an activity that is "tactically calcu-
lated to satisfy union objectives elsewhere " National Woodwork Mfrs.
Assn. v. NLRB, 386 U.S. 612, 644 (1967).
ELECTRICAL WORKERS IBEW LOCAL 2208, (SIMPLEX WIRE)
835
Tyco and Simplex constitute a single-integrated employ-
er, the Union's picketing would be against the primary
employer in an attempt to force it to make further move-
ment at the bargaining table, and the complaint would
have no substance.?
Tyco, a publicly held
Massachusetts corporation
whose stock is traded on the New York Stock Ex-
change, has its principal office and place of business in
Exeter, New Hampshire, where it is engaged as a hold-
ing company, wholly owning Simplex and four other
corporations: Grinnel Corporation, whose headquarters
are in Exeter, New Hampshire, and that is the largest
manufacturer and installer of fire protection systems in
the United States and the largest manufacturer and dis-
tributor of products that control the flow of water;
Ludlow Corporation, whose headquarters are also in
Exeter and manufactures fabric for lawn furniture and
packaging products, principally laminations for various
types of paper, foils, and plastics; Tyco Printed Circuit
Group, headquartered in Stafford Springs, Connecticut, a
manufacturer of printed circuit boards for use in comput-
ers and telecommunications; and Armand Corporation, a
manufacturer of , polyethylene film in Jersey City, New
Jersey. The manufacturing plants of these entities are lo-
cated throughout the United States: Grinnel, in North
Carolina, Texas, and Pennsylvania, among others with
distribution outlets and other offices in 75 other loca-
tions; Ludlow, in Massachusetts, Mississippi, Louisiana,
and Ohio; Tyco Printed, in Connecticut, North Carolina
in Florida; and Armand, in New Jersey, North and
South Carolina, Oklahoma, and California. In all, the
subsidiaries, with total sales of
$ 1.2
billion,
employ
10,500-11,000 employees.8 Simplex's sales comprise less
than 5 percent of the total sales of Tyco's subsidiaries.
Tyco does not manufacture anything and employs
only 35 employees, who are not represented by any
labor organization . Tyco has a financial department that
handles its financial affairs and employs controllers,
bookkeepers, and accountants; a tax department that han-
dles Tyco's' tax affairs; a legal department that handles
Tyco's legal affairs and provides some assistance to some
of the subsidiaries when they have no available counsel
to represent them in certain areas; a public communica-
tions department that handles relations with Wall Street;
a mergers and acquisitions department; and an insurance
department that assists in the placing of insurance and
the handling of insurance claims, including worker's
compensation. Its principal officers are John Fort, presi-
dent, chairman of the board of directors, and chief exec-
utive officer; Irving Guten, vice president and general
counsel; Richard Power, vice president and chief finan-
cial officer; Curtis, vice president of corporate develop-
ment; and Hartley, vice president and tax counsel.
Tyco serves two principal functions for its subsidiaries.
First, it acts as a "banker." It maintains "lock box" or
central accounts at various banks where each subsidiary
7 National Woodwork at 645.
8 In the year preceding the hearing in this proceeding , Tyco purchased
and received its annual report, valued in excess of $50 ,000, directly from
points located outside New Hampshire I conclude that Tyco is an em-
ployer engaged in commerce within the meaning of Sec 2 (2), (6), and (7)
of the Act and a person within the meaning of Sec. 8(b)(4)
has its own accounts.9 Deposits to and withdrawals from
the subsidiary's accounts are made solely by the subsidi-
ary, but, through control by the bank, each subsidiary's
account finishes the day with a zero balance. That results
from the transfer of the subsidiary's credit balance to
Tyco's account, resulting in a loan from the subsidiary to
Tyco, for which Tyco pays interest to its subsidiary; or,
in the alternative, in the case of the subsidiary's debit bal-
ance, a transfer of money from Tyco to the subsidiary
the amount to bring the account back to zero resulting in
a loan from Tyco the subsidiary, for which the subsidi-
ary pays interest to Tyco.10 This arrangement normally
results in Tyco's obtaining cash , with which it repays its
own loans, resulting in a yearly savings of millions of
dollars in interest. Tyco accounts monthly to Simplex re-
garding the amount Simplex or Tyco owes as interest."'
Second, because of the combined size of all of its sub-
sidiaries, Tyco is able to negotiate certain benefit pack-
ages that it then makes available to its subsidiaries. Fed-
eral Express provides a discounted rate; some subsidiaries
use it, others do not. Tyco has a car rental arrangement
with National Car Rental, that subsidiaries may use.
Tyco has a short- and long-term disability program. Tyco
has also established a plan whereby employees of its sub-
sidiaries
may, through payroll deductions,
purchase
Tyco's stock. Tyco pays its stockbroker for the stock
and charges back the expense to its subsidiaries. Tyco
has negotiated with a life insurance company for a rate
per thousand dollars of benefits that is available to the
subsidiaries to provide coverage for their employees.12
Tyco sponsored a medical insurance plan that it nego-
tiated with Northwestern Life, but Simplex elected' not
to join that plan, opting for its own insurance with Blue
Cross-Blue Shield. Tyco also provides, and requires its
subsidiaries to utilize, a workmen's compensation policy,
the premium for which is based on the payrolls of each
subsidiary and adjusted on the basis of each subsidiary's
experience. When a refund is granted based on the sub-
sidiary's favorable experience, the refund is credited to
that subsidiary. Tyco also requires its subsidiaries to be
covered under its fire insurance and extended coverage
policy, charging its subsidiaries according to their valu-
ations of the amounts of coverage they choose.
With certain exceptions, there is no similiarity between
the officers of Tyco and Simplex, each of which has
their own officers. Jim Gard, Tyco's former vice presi-
dent of operations,
is
Simplex's
employer-designated
9 Simplex has four bank accounts : petty cash, payroll, Government re-
ceipts, and commercial. Simplex does not consult with Tyco regarding
how much it may bill to customers, nor does it require Tyco's permission
to pay any amounts, with certain exceptions
10 Of course, if a subsidiary owed money to Tyco, and the subsidiary
had a credit balance on a particular day, that money would be applied to
reduce, the subsidiary's debt to Tyco Tyco sets the interest rate, and the
rate of interest that it or its subsidiary pays is the same.
11 To the extent that these findings conflict with the testimony of John
McIntyre, Simplex's president, I find McIntyre's testimony incorrect and
have credited the testimony of Neil Garvey, Simplex's vice president and
controller, and Guten, who were indefinitely more familiar with the Sim-
plex-Tyco lock box account
12 Tyco pays the premium based on its subsidiaries' reports of how
much insurance they had in effect and then charges its subsidiaries for
their proportionate premiums
836
DECISIONS OF,THE NATIONAL LABOR RELATIONS BOARD
trustee for, Simplex's hourly employees' pension plan, an
employer-administered plan with employee nonvoting
participation. 13 In addition, Simplex's board of directors
is controlled by three of Tyco's officers; it consists of
McIntyre, Fort, Guten, and Power.
With one major exception, Tyco is not involved in the
selection of any of its subsidiaries' employees, the excep-
tion being the president of each subsidiary, who is select-
ed by Tyco and serves at Tyco's pleasure, and whose
salary and bonus, if any, is established by Tyco's board
of directors. But all expenses of the subsidiary, including
the president's salary and bonus, are paid by the subsidi-
ary, each of which maintains its own profit -and-loss
statements. McIntyre sets the policy and makes the deci-
sions for Simplex, often in consultation with other Sim-
plex officers, but without any involvement of Tyco, for
the purchase of materials, the establishment of prices, the
products to be manufactured, the development of prod-
uct lines, the process of manufacturing, the billing and
sales procedures, the employees' wages, fringe benefits,
and working conditions, the number of employees to be
hired and their jobs and classifications, and the hiring,
firing, and disciplining of employees.
Tyco audits Simplex's books and records periodically.
Tyco also provides certain guidelines to Simplex: Sim-
plex may expend on its own only up to $25,000 for cap-
ital expenditures; above that, it must obtain Tyco's ap-
proval. ' Simplex is limited to $20,000 in its purchase of
each company automobile.14
Simplex has its own personnel department, 15 maintains
its own bookkeeping department and its own daily ledg-
ers, pays its own payroll and bills, maintains its own
bank 'accounts and writes its own checks, 16 has its own
sales staff, manufactures and sells its own (and no one
else's) products, and administers its own labor agree-
ments-all without Tyco's participation. It does not sell
its products to Tyco or any of Tyco's other subsidiaries,
nor do the other subsidiaries work on products manufac-
tured by Simplex. Out of $30 million in yearly purchases,
it does not purchase anything from Tyco's other subsidi-
aries, except that it buys annually $100,000-200,000 of
jute from Ludlow, for which Simplex pays Ludlow.
There have been no transfers of Simplex's bargaining
unit employees to Tyco or any of its other subsidiaries.
Simplex submits in advance to Tyco for its approval of
preliminary and final budgets, which include labor costs
for succeeding years. Discussions have been held be-
13 Gard was, prior to his employment with Tyco, Simplex's vice presi-
dent and controller He created the plan and served on it from its incep-
tion He was removed as a trustee in late December At the time of the
hearing, Gard had left Tyco's employ
14 There are also some Tyco guidelines about who is entitled to drive
a company automobile.
is The personnel department keeps records for Simplex's hourly and
other employees and administers its fringe benefits programs
is Sometimes, however, a payee requires immediate payment of its bill,
not subject to the several days' delay inherent in a payment by check
Tyco has facilities for a wire transfer of funds, and Simplex has utilized
these, for example, for payment of its- Blue Cross-Blue Shield premiums.
In Tyco's monthly accounting to Simplex, Tyco charges Simplex for
amounts paid by Tyco on Simplex's account In addition, certain other
charges, such as audit expenses by an outside accountant and corporate
income taxes on Tyco's consolidated return, are paid by Tyco and appor-
tioned and charged to Tyco's subsidiaries
tween McIntyre and Gard and, on occasion, Fort, re-
garding sales,and profitability and, for 1986, the upcom-
ing negotiations in general terms; that is what were the
national, regional, and local labor trends and the Union's
expected demands. The budget is merely a working doc-
ument, subject to revision from month to month; and
Simplex retains the right to exceed the amounts in the
budget, so there is no limit to the amount of wages and
other employee expenses that Simplex might negotiate
-
with the Union. 17
The General Counsel's witnesses uniformly testified
that no one from Tyco participates in labor negotiations
between its subsidiaries and the labor organizations rep-
resenting the subsidiaries are not required to obtain, nor
do they obtain, Tyco's approval on matters negotiated
with the labor organizations. 18 Tyco does not require
the presidents of its subsidiaries to prepare in advance a
policy regarding the labor decisions that they are -going
to make in negotiating new collective-bargaining agree-
ments, but Tyco is advised about contract 'expiration
dates, new contracts to be negotiated, and the status of
negotiations. There is continuing communication about
proposals submitted by the parties who are negotiating,
and Fort conceded that, on occasion; he would give
advice. As Gutman testified: "We don't live in a vacuum.
We obviously are interested and want to, know what's
happening and subsidiary presidents will tell, us what's
happening. They advise us of what's going on but we do
not tell them what to do."
In the most recent negotiations, Simplex's proposal
were prepared by officers and representatives of Sim-
plex, in consultation with Simplex's attorney, who was
hired by McIntyre. They were approved by McIntyre
and were not required to be approved by anyone from
Tyco.
McIntyre admitted, , however, that
Gard was
present at one or two meetings when Simplex's officers
discussed the upcoming negotiations and that McIntyre
may have sought advice from Tyco regarding health and
welfare benefits and proposals. Only, Simplex's officers
and representatives participated in the negotiations, and
matters agreed to had to be approved by McIntyre
alone, not anyone associated with Tyco, which was not
involve. McIntyre testified that in the 1980 and 1983 ne-
gotiations, no one from Tyco was involved;19 the only
persons responsible for setting wage rates for Simplex's
employees were McIntyre and Simplex's personnel direc-
tor and controller, and the only persons responsible for
determining fringe benefits and working conditions for
employees were McIntyre and Simplex's personnel direc-
tor.
Respondent cites two incidents to demonstrate, Tyco's
participation in Simplex's labor policies. Near the end of
17 Indeed, it might be considered an advantage for Simplex to negoti-
ate a higher wage and benefit package because over 90 percent of its con-
tracts are "cost-plus" contracts If Simplex increased its base expenses, its
profits would increase.
18 In addition to Simplex, others of Tyco's subsidiaries have 45-50
labor agreements with unions who represent the employees of these re-
spective subsidiaries.
19 Fort was Simplex's president from 1970-1979, He, too, testified that
he alone approved the final agreement, and he was not required to
obtain, and did not seek, Tyco's approval.
ELECTRICAL WORKERS IBEW LOCAL 2208 (SIMPLEX WIRE)
negotiations in 1977 for a new agreement, Gard, Sim-
plex's principal negotiator, announced that Simplex's rep-
resentatives had to leave to consult with Joe Graziano,
then Tyco's president. When they returned 3 hours later,
they reached an agreement . In 1980, Gard, who was
then a member of Simplex's negotiating team, but not the
principal spokesman, stated that the parties had reached
a tentative agreement but "he had to clear it by Tyco."
He left, returned 2 hours later , and signed the agree-
ments.20 During the 1986 negotiations, no Simplex repre-
sentative stated that Tyco had to approve an agreement,
and no approval was sought.
During the strike, some of Tyco's officers visited Sim-
plex. On 6 August, Fort visited the plant ("He was .. .
very interested in the machinery," McIntyre testified)
and Gard visited on 7 August. John Armacost, president
of Ludlow, also visited on 7 August, as did Stephen
Foss, a director Tyco, to offer encouragement. Guten
and Power also visited, at McIntyre's invitation, a moti-
vational visit, he testified, to keep everybody happy.
The relevant portions of Section 8(b)(4)(B) of the Act
provide as follows:
(b) It shall be an unfair labor practice for a labor
organization or its agents-
(4)(i) to engage in, or to induce or encourage
any individual employed by any person engaged
in commerce or in an industry affecting com-
merce to engage in, a strike or refusal in the
course of his employment" to use, manufacture,
process transport, or otherwise handle or work
on any goods, articles, materials, or commodities
or to perform any services ; or (ii) to threaten,
coerce, or restrain any person engaged in com-
merce or in an industry affecting commerce,
where in either case an object thereof is-
(B) forcing or requiring any person to cease
using, selling, handling, transporting, or other-
wise dealing in products of any other producer,
processor, or manufacturer, or to cease doing
business with any other person, or forcing or re-
quiring any other employer to recognize or bar-
gain with a labor organization as the representa-
tive of his employees unless such labor organiza-
tion has been certified as the representative of
such employees under the provisions of section 9:
Provided, That nothing contained in this clause
(B) shall be construed to make unlawful, where
20 There was also testimony that Simplex's chief negotiator in 1983
had to consult with "someone" before finalizing the labor agreement, but
that person, a representative of Simplex or Tyco or ,"someone" else, was
not identified; and I find the testimony not probative and meaningless
Fort's testimony raises serious questions about the accuracy of Respond-
ent's testimony Since Gard reported to Fort in 1977, Fort then being
Simplex's president, it would have been a breach of the corporate chain
of command for Gard to consult directly with Graziano, thus bypassing
Fort, In 1980, Gard would have bypassed both McIntyre, then Simpex's
president, and Fort, then Tyco's vice president of operations Gard was
not called as a witness, but the record shows that he was no longer an
employee of Simplex or Tyco That, of course, does of prove that he was
unavailable to testify Graziano was deceased.
837
not otherwise unlawful , any primary strike or pri-
mary picketing;
.
.
. Provided further, That for the purposes of
this
paragraph
(4) only, nothing contained in
such paragraph shall be construed to prohibit
publicity, other than picketing, for the purposes
of truthfully advising the public, including con-
sumers and members of a labor organization, that
a product or products are produced by an em-
ployer with whom the labor organization has a
primary dispute and are distributed by another
employer, as long as such publicity does not have
an effect of inducing any individual employed by
any person other than the primary employer in
the course of his employment to refuse to pick
up, deliver, or transport any goods, or not to per-
form any services, at the establishment of the em-
ployer engaged in such distribution.
Respondent's answer admits that, in furtherance of its
dispute with Simplex, it established a picket line at
Tyco's , premises about 21 August and that at no time had
Respondent had any dispute with Tyco. Respondent's
brief, however, questions these admissions, placing "pick-
eting" in quotes and arguing that Tyco so controlled
Simplex that Respondent's, dispute was not only with
Simplex but also with Tyco.
Respondent's admission that it engaged in picketing is
binding on it. Its admission removed as an issue at trial
the fact that it picketed, and Respondent may not now
argue that it did not, because counsel for the General
Counsel was put on notice that the issue was conceded
and, therefore, may not have adduced at the hearing all
the evidence he had as to the nature of Respondent's ac-
tivities. In any event, I am persuaded that there is suffi-
cient evidence in this record that picketing occurred.
Guten identified six signs being carried and he recalled
the precise wording of one of them. Although Guten's
testimony was contradicted by Respondent , to the extent
that its president, Norman Duplessie, stated that the
demonstration was by two groups on either side of the
driveway and that the picketers talked with no one other
than
Gard.
Guten testified that the demonstrators
crossed over the driveway and talked with the people as
they entered and exited Tyco's premises. Guten's testi-
mony, that as vehicles passed by and through Tyco's
main entrance, the picketers moved their signs up and
down to display the sign's contents, was not denied. In
any event, I believe Guten because his testimony was
given forthrightly and with precision. To the contrary, I
find it improbable that groups of Respondent's demon-
strators established themselves on both sides of the en-
tranceway, never crossed over, and never talked with
anyone but Gard.
That no vehicle was actually prevented from entering
Tyco's premises or that no vehicle turned away from the
premises makes no difference . The legality of the picket-
ing is determined not by its effect, although that may be
persuasive for determining the legality of peacefully
handbilling under the second proviso to Section 8(b)(4)
838
DECISIONS OF ,THE NATIONAL LABOR RELATIONS BOARD
quoted above, but by its object. Plumbers Local 398
(Robbins Plumbing), 261 NLRB 482, 485 (1982). If an
object of the picketing is to threaten or coerce a neutral
employer within the meaning of Section 8(b)(4), then the
activity is secondary and unlawful. Ibid. I conclude that
that was the object of Respondent's picketing, which, al-
though publicizing its dispute with Tyco that it was
"unfair to labor," also sought to persuade persons not to
cross the picket line to travel onto Tyco' s premises. In
this sense, Respondent sought to induce individuals to re-
fusing to perform services for Tyco, in violation of Sec-
tion 8(b)(4)(i) and to restrain any person, in violation of
Section 8(b)(4)(ii), where Respondent's object was to
force or require any person to cease doing business with
Tyco. The ultimate goal was to disrupt Tyco's operation
and to coerce it to pressure Simplex to conform its nego-
tiating posture to the bargaining goals of Respondent.
Printing Pressmens Local 46 (Knight Newspapers),
138
NLRB 1346 (1962), enfd. 322 F.2d 405 (D.C. Cir. 1963);
Teamsters Local 391 (Vulcan Materials), 208 NLRB 540
(1974), enfd. 543 F.2d 1373 (D.C. Cir. 1976), cert. denied
430 U.S. 967 (1977). In Food & Commercial -Workers
Local P-9 (Hormel & Co.), 281 NLRB 986 (1986), the
union picketed banks, neutral employers with which
Hormel, whom the Union had a primary dispute with,
had financial dealings. The picket signs characterized the
banks as corporate allies of Hormel and claimed that
they were "unfair to labor," the language that appears on
Respondent's sign. The Board found a violation of Sec-
tion 8(b)(4)(ii)(B).
Because I have found, as admitted by Respondent in
its answer and based on the record, that Respondent en-
gaged in picketing, Respondent's argument that its signs
merely reflected publicity for the purpose of truthfully -
advising the public, subject to the second proviso to Sec-
tion 8(b)(4), has no weight. That proviso specifically per-
mits only "publicity, other than picketing." Boxhorn's Big
Muskego Gun Club v. Electrical Workers, 798 F.2d 1016,
1019 (7th Cir. 1986);
Typographical
Union Local 37
(Hawaii Press), 167 NLRB 1030, 1031 (1967), enfd. 401,
F.2d 952 (D.C. Cir. 1968).21 Accordingly, Respondent's
reliance on leafleting and consumer boycott case in
which the alleged offending union did not picket are ut-
terly inapposite. Particularly inapposite is Respondent's
emphasis on the issue of whether "a product or products
are produced by an employer with whom the labor orga- -
nization has a primary dispute and are distributed by an-
other empoyer," an issue that is relevant solely to hand
billing and like publicity, permitted by the proviso, from
which picketing is expressly excluded. Thus, Respond-
ent's reliance on Steelworkers (Pet), 244 NLRB 96 (1979),
revd. and remanded 641 F.2d 545 (8th Cir. 1981), and
Edward J. DeBartolo Corp. v. NLRB, 463 U.S. 147 (1983),
is singularly unhelpful.
Rather, of sole significance is whether Respondent's
picketing of Tyco was justified because, although Tyco
is a corporation separate from Simplex, Tyco is nonethe-
less so integrated or allied with Simplex that Respond-
ent's picketing was against the primary employer, and
not a secondary, neutral employer. There is little support
for Respondent's position. It is true that Tyco, wholly,,
owns Simplex, that Tyco names Simplex's four-person
board of, directors, the fourth person being Simplex's
president, and, that three Tyco officers are members of
Simplex's president, who Tyco has selected. However,
comon ownership and potential control of the day-to-day
activities of corporate divisions are not to be accorded
weight. Teamsters Local 749 (Transport), 218 NLRB 1330
(1975), -enfd. 543 F.2d 417 (D.C. Cir. 1976); Vulcan Mate-
rials,
208 NLRB at 541; Newspapers Guild Local 69
(Hearst Corp.),
185 NLRB 303 (1970), enfd. 443 F.2d
1173 (9th Cir. 1971). Tyco makes certain insurance and
benefits programs available to Simplex; but the same was
true in Hearst Corp. and Vulcan Materials, and the Board'
did not consider it a factor to be accorded significant
weight. That Tyco pays for certain of these benefits and
then charges Simplex for the expenses is not determina-
tive; in Teamsters Local 560 (Curtin Matheson Scientific),
248 NLRB 1212 (1980), the Board held that the fact that
all invoices and payroll checks issued at corporate head-
quarters was not significant. Accord: Food & Commercial
Workers Local 1059 (Days Inn), 268 NLRB 595 (1984).
That Tyco acts as Simplex's banker is unimportant; the
banks in Hormel, above, were considered neutrals. That
Simplex's president was hired by Tyco is also of no sig-
nificance; the president of the division in Vulcan Materi-
als was also named by the parent corporation's board of
directors, and this was not found important. That a
number of Tyco's officers and directors and an officer of
another subsidiary of Tyco visited the Simplex plant
during the strike does not support Respondent's conten-
tion that-Tyco controlled Simplex's labor relations.
In Vulcan Materials, the parent corporation maintained
an industrial relations staff which, on request of a divi-
sion president, would participate in the division's collec-
tive-bargaining negotiations and, in fact, did so. The
Board still refused to hold that the parent was not a neu-
tral; finding that the division president maintained final
authority to make agreements. Accord: Food & Commer-
cial Workers Local 1439 (Price Enterprises), 271
NLRB
754 (1984). For this reason, even if I were to credit the
testimony regarding Simplex's checking with Tyco re-
garding final approval, I find that that was only for the
purpose of advice and was not required by Fort or
McIntyre. Gard's participation in the pension plan also
has little significance. Although he is a trustee, 22 the sole
function of the trustees is to, invest and manage the
money in the trust, and that has been delegated to the
Union Mutual Insurance Company since at least 1981.
Other than the fact that Gard is a named, trustee, the
record does not show what he did, if anything, as trust-
ee. The day-to-day administration of the plan is conduct-
ed by the pension board, composed equally of represent-
atives of Respondent and Simplex, which has appointed
only Simplex's officers and representatives. The board
22 The plan provides for not more than four voting employer-designat-
21 There is no contention by Respondent that its picketing was lawful
ed trustees and one nonvoting Respondent-appointed trustee The record
consumer picketing under NLRB v Fruit & Vegetable Packers Local 760,
is not clear how many of the other employer-designated positions were
377 US 58 (1964).
filled, there appears to be at least one other trustee
ELECTRICAL WORKERS IBEW LOCAL 2208 (SIMPLEX WIRE)
839
makes all decisions concerning participants' rights to
benefits. On one occasion, the counsel to the plan wrote
to Tyco's vice president setting forth the plan's interpre-
tation of the eligibility of employees who return to work
from voluntary absences of more than 6 months. No
showing was made that the letter represented anything
more than a reply to an inquiry, that the letter was an-
swered, that Tyco gave advice, and that, most impor-
tantly, there was any requirement that the advice of
Tyco be followed. In these circumstances, I cannot find
that Tyco dictated the day-to-day administration of Sim-
plex's pension plan.
Except as indicated above, Simplex is administered on
a day-to-day basis by its officers. Respondent argues that
under Massachusetts law, G.L. c.156B, sec. 47, "the busi-
ness of every corporation shall be managed by a board
of directors." However, this record shows that McIntyre
made all the final decisions,23 and no minutes of Sim-
plex's board of directors were introduced to prove the
contrary.
In
addition,
McIntyre,
Fort,
Guten, and
Power, Simplex's directors, testified.
Only McIntyre
stated that he operated Simplex; the others either denied
that they made day-to-day decisions or were not asked.
Curtin Matheson Scientific, heavily relied on by Re-
spondent, is not helpful to its defense. There, common
ownership, the offer of common companywide insur-
ance, pension, and salary continuation programs, and the
issuance of all invoices and payroll checks at corporate
headquarters were not considered overly significant by
the Board. Rather, its emphasis was on a finding that the
parent was a national warehousing business operating
through local warehousing branches, and the business of
the branches was as much the parent's business as it was
the branch's. That was illustrated by the Board's finding
that over 50 percent of the dollar amount of merchandise
shipped by one branch was ordered by and shipped to
customers of other branches, which then received credit
for the profit made. It was this pattern of cross shipping
which, the Board found, represented management policy
at the corporate level, because any branch could suffer
an interruption of its warehousing operation, such as a
strike, without an immediate effect on its business. The
branch would continue to seek and take orders as usual.
Price Enterprises, above, 271 NLRB at 755-756. Here, to
the contrary, Simplex manufactures its own product, and
Tyco has nothing to do with that product. If the Union's
strike against Simplex--had been fully successful, there is
nothing that Tyco could have done to avoid the inter-
ruption of Simplex's operation.
One of Respondent's many other contentions is that
employees of Simplex are stockholders of Tyco and, as
such, "have an interest in appealing to the officers of,
Tyco. Although there is evidence of a stock purchase
plan, there is no evidence that any of the picketers
owned Tyco's stock. In any event, the picketing was not
the act of stockholders but was sponsored by Respond-
ent. Respondent also contends that a labor organization
may picket at the home of the primary employer's sole
33 Respondent seemingly so concedes stating at p 7 of its brief, that
"the control of Simplex's affairs ..
may be left to the discretion of Mr.
McIntyre on a day-to-day basis "
stockholder. Assuming that that principle is valid, the
picketing must in any event be limited to the dispute
with the primary employer. Here, Respondent's sign
complained not that Simplex was unfair to labor, but ex-
panded he dispute to Tyco, with which Respondent had
no labor dispute, and alleged that Tyco was unfair, to
labor. Finally, Respondent contends that its picketing
falls within the free speech protection of the first amend-
ment to the United States Constitution. Whatever the
merits of its contention may be,24 the Act prohibits its
picketing; and the Board had traditionally presumed the
constitutionality of the Act it administers. Florida Build-
ing Trades Council (DeBartolo Corp.), 273 NLRB 1431,
1432 (1985).
I conclude that Simplex is an independent entity
wholly in charge of its own destiny, including its labor
relations, without meaningful interference by Tyco, and
that Tyco is not integrated with Simplex so as to trans-
form Tyco from a neutral to a primary employer. Ac-
cordingly, I conclude that Respondent has violated Sec-
tion 8(b)(4)(i) and (ii)(B) of the Act and that its activities,
occurring in connection with Tyco's operations, have a
close and intimate relationship to trade, traffic, and com-
mence among the several States and tend to lead to labor
disputes burdening and obstructing the free flow of com-
merce.
THE REMEDY
Having found that Respondent violated Section
8(b)(4)(i) and (ii)(B) of the Act, I shall order Respondent
to cease and desist therefrom and order it to post an ap-
propriate notice and to supply Tyco with copies of the
notice, if it chooses to do so. Counsel for the General
counsel has, as is customary for about a year, requested
that I also include in the relief a visitatorial clause, and
will permit the Board to obtain discovery concerning
any compliance matter. Although I specifically requested
counsel to include in his brief argument concerning why
it is necessary in a secondary boycott case to obtain dis-
covery, he failed to do so. I can think of no reason why
such additional relief is warranted, as apparently counsel
could not, and I will not grant the relief.
On these findings of fact and conclusions of law and
on the entire record,25 I issue the following recommend-
ed26
24 For authority contrary to Respondent's contention, see Electrical
Workers IBEW Local 1501 v NLRB, 341 U S 694, 705 (1951); NLRB v
Retail Store Employees, 447 U.S. 607, 616 (1980)
35 The transcript of the 15 January 1987 hearing is about the worst I
have had the displeasure to read. Those who participated in the hearing
probably are aware of what words were spoken and hopefully, on
review, the meaning of the transcript will be decipherable One important
amendment must be made, the correctness of which is apparent from the
question that follows The transcript at 237 L. 12 is corrected to insert
the word "not" between "did" and "need." Some of the witnesses could
not recall with complete assurance the state in which Tyco was incorpo-
rated Respondent attached to its brief certifications of the secretary of
State of Massachusetts showing that both Tyco and Simplex were incor-
porated in Massachusetts I will order those certifications made part of
the record, ALJ Exhs 1 and 2, respectively
36 If no exceptions are filed as provided by Sec 102.46 of the Board's
Rules and Regulations, the findings, conclusions, and recommended
Order shall, as provided in Sec 102.48 of the Rules, be adopted by the
Continued
840
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
ORDER
The Respondent, Local 2208, International Brother-
hood of Electrical
Workers; AFL-CIO, Newington,
New Hampshire, its officers, agents, and representatives,
shall
1. Cease and desist from
(a) Inducing or encouraging any individual employed
by Tyco Laboratories or any other person engaged in
commerce or in industry affecting commerce, to engage
in a strike or a refusal in the course of his employment to
use, manufacture, process, transport, or otherwise handle
or work on any goods, articles, materials, or commod-
ities, or to perform any services where an object thereof
is to force or require Tyco Laboratories, to cease doing
business with persons engaged in commerce or in an in-
dustry affecting commerce, or to force require persons
engaged in commerce or in an industry affecting to cease
doing business with Tyco Laboratories.
(b) Threatening, coercing, or restraining Tyco Labora-
tories, or any other person engaged in commerce or in
an industry affecting commerce, where an object is to
force or require Tyco Laboratories to cease doing busi-
ness with persons engaged in commerce or in an industry
affecting commerce, or to force or require persons en-
gaged in commerce or in an%industry affecting commerce
to cease doing business with Tyco Laboratories.
2. Take the following affirmative action necessary to
effectuate the policies of the Act.
(a) Post at its offices and meetings halls copies of the
attached notice
marked "Appendix." Copies of the
notice, on forms provided by the Regional Director for
Region 1, after being signed by the Respondent's author-
ized representative, shall be posted by the Respondent
immediately upon receipt and maintained for 60 consecu-
tive days in conspicuous places including all places
where notices to members are customarily posted, Rea-
sonable steps shall be taken by the Respondent to ensure
that the notices are not altered, defaced, or covered by
any other material.27
(b) Sign and return to the Regional Director for
Region I sufficient copies of the notice for the posting
by Tyco Laboratories, if willing, at all places where it
customarily posts notices to its employees'. Such copies
shall be furnished to Respondent by the Regional Direc-
tor.
Board and all objections to; them shall be deemed waived for all pur-
poses.
27 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 Nation-
al Labor Relations Board" shall read "Posted Pursuant to a Judgment of
the United States Court of Appeals Enforcing an Order of the National
Labor Relations Board."
(c) Notify the Regional Director in writing within 20
days, from the date of this Order what steps the Re-
spondent has taken to comply.
IT IS FURTHER ORDERED that , pending final disposition
of this proceeding, Respondent's Rejected Exhibits 8 and
9 shall continue to remain sealed exhibits and shall not be
disclosed to any person other than the Board and its
agents and representatives.
APPENDIX
NOTICE To EMPLOYEES AND MEMBERS
POSTED BY ORDER OF THE
NATIONAL LABOR RELATIONS BOARD
An Agency of the United States Government
WE WILL NOT induce or encourage any individual em-
ployed by Tyco Laboratories, or any other person en-
gaged in commerce or in an industry affecting com-
merce, to engage in a strike or a refusal in the course of
his employment to use, manufacture, process, transport,
or otherwise handle or work on any goods, articles, ma-
terials, or commodities, or to perform any services where
an object thereof is to force or require Tyco Laborato-
ries, to cease doing business with persons engaged in
commerce or in an industry affecting commerce, or to
force or requires persons engaged in commerce or in in-
dustry affecting commerce to cease doing business with
Tyco Laboratories, Inc.
WE WILL NOT threaten, coerce, or restrain Tyco Lab-
oratories, or any other person engaged in commerce or
in an industry affecting commerce, where an object
thereof is to force or require Tyco Laboratories, to cease
doing business with persons engaged in commerce or in
an industry affecting commerce, or to force or require
persons engaged in commerce or in an industry affecting
commerce to cease doing business with Tyco Laborato-
ries.
LOCAL 2208, INTERNATIONAL BROTHER-
HOOD OF ELECTRICAL WORKERS, AFL-
CIO