286 NLRB 342
Schmidt-Tiago Construction Co.
342
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
Schmidt-Tiago Construction Company and Interna-
tional Brotherhood of Teamsters, Chauffeurs,
Warehousemen and Helpers of America, Local
Union No. 13. Cases 27-CA-7424, 27-CA-
7367-7, and 27-CA-8348
30 September 1987
DECISION AND ORDER
BY CHAIRMAN DOTSON AND MEMBERS
JOHANSEN, BABSON, STEPHENS, AND
CRACRAFT
On 14 November 1984 Administrative Law
Judge Jerrold H. Shapiro issued the attached deci-
sion. The General Counsel filed exceptions and a
supporting brief, and the Respondent filed cross-ex-
ceptions and an answering brief.
The National Labor Relations Board has consid-
ered the decision and the record in light of the ex-
ceptions and briefs and has decided to affirm the
judge's rulings, findings,' and conclusions as modi-
fied.
The judge found that the Respondent violated
Section 8(a)(5) of the Act by unilaterally instituting
a new health and welfare program and increasing
the wages of returning Colorado Springs strikers.
He also found that the Respondent gave the Union
adequate notice and opportunity to bargain over its
cessation of contributions to the fringe benefit plans
of the recently expired collective-bargaining agree-
ment and therefore acted lawfully in that respect.
We adopt the judge's affirmative 8(a)(5) fording but
reverse the accompanying dismissal.
Shortly after an economic strike began on 18
June 1981, the Respondent informed the Union that
it was discontinuing contributions to existing con-
tractual benefit plans (which included a health and
welfare plan, a vacation fund, and a pension fund)
until new "labor agreements" were reached be-
tween the parties.2 This announcement suggested
that the discontinuance was a temporary measure
and that contributions might be expected to be re-
sumed if and when the strike was settled. In any
event, it reflected the fact that at the time of the
announcement no unit employees were working
and therefore none were earning benefits. As soon
as some strikers abandoned the strike and returned
i The General Counsel has excepted to some of the judge's credibility
findings The Board's established policy is not to overrule an administra-
tive law judge's credibility resolutions unless the clear preponderance 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 re-
versing the fmdtings.
The General Counsel did not except to the judge's dismissal of the alle-
gation that the Respondent's unfair labor practices caused the employees'
economic strike to be converted into an unfair labor practice strike.
2 All dates are in 1981
to work in July, the Respondent began to contrib-
ute to a different health and welfare fund on their
behalf and paid them an additional 40 cents an
hour in cash in lieu of contributing to the contrac-
tual vacation fund. Contributions to the pension
fund were simply discontinued with no substitu-
tion.
While the strike continued, contract negotiations
resumed on 23 July. The Respondent then proposed
that the three contractual funds be discontinued.
Under this proposal, the health and welfare fund
and pension fund would be replaced and the vaca-
tion fund moneys would be paid to employees as a
lump sum payment at the end of each calendar
year. The Union's only response at that time was
to request a copy of the substituted health and wel-
fare plan. The parties met next on 29 July. The Re-
spondent gave the Union a description of the
health and welfare plan and informed the Union
that the change embodied in this plan had been im-
plemented. The Union requested further informa-
tion regarding all of the benefit plans that had been
or were intended to be substituted, so that the
Union could "bargain meaningfully . . . concern-
ing any benefit plan." The Respondent modified its
benefit plan proposals by making the 40-cent-an-
hour increase part of the hourly rate, presumably
to be paid weekly as already in effect, rather than
in an annual lump sum. The Respondent deferred
its proposal to discontinue the contractual pension
plan , pending further developments in settling the
strike.3
The parties met for the last time on 31 July. The
Union protested the cessation of contributions to
the contractual benefit funds, stating that the Re-
spondent was obligated to continue these contribu-
tions until the parties reached impasse, which, the
Union stated, they had not.4 The Respondent dis-
agreed with this assessment of its bargaining obliga-
tion. Its representative stated that the Union's op-
tions were either to accept the Respondent's pro-
posals or to file charges with the Board.5
In creating this confusing situation, the Respond-
ent improperly bypassed the Union in establishing
new and permanent terms and conditions of em-
ployment. Contrary to our dissenting colleagues'
characterization, the Respondent's actions belie its
original suggestion, if it was so intended, that these
9 However, as noted above, the Respondent informed the Union previ-
ously that it had discontinued its contributions to the pension plan for the
duration of the strike It never resumed these contributions
4 Previously, the Union had agreed that the parties were at an impasse
regarding other matters. As of 31 July, however, no bargaining over the
Respondent's 23 July proposal to discontinue the contractual benefit
plans had occurred.
5 A third option mentioned by the Respondent was that the Union
could "go to hell "
286 NLRB No. 31
SCHMIDT-TIAGO CONSTRUCTION CO.
343
changes were temporary, strike-related measures,
for it relabeled them as proposals to be incorporat-
ed into a new collective-bargaining agreement and
almost immediately acknowledged that they had
been implemented. The Respondent thereby unilat-
erally set terms and conditions of employment that
presumably would continue in effect until such
time as the Respondent might be persuaded in sub-
sequent bargaining to rescind them.6
Our dissenting colleagues' contention that the
Respondent's changes in the fringe benefit plans for
its Colorado Springs facility were made for the
limited purpose of operating during the strike is
belied further by the fact that at approximately the
same time the Respondent unilaterally made similar
changes at other union-represented facilities where
no strike was either in progress or imminent. The
judge correctly found that the changes made at
these facilities violated Section 8(a)(5), and the Re-
spondent's exception to that finding is limited to a
matter of contract interpretation involving only the
pension fund.7 We conclude that the Colorado
Springs unilateral changes were not made pursuant
to any claim that the strike relieved the Respond-
ent of the duty to bargain.8 Accordingly, we agree
with the judge's finding that the Respondent violat-
ed Section 8(a)(5) of the Act when it unilaterally
instituted a new health and welfare program and
increased the wages of returning strikers at the
Colorado Springs facility.9
6 Such opportunity for future bargaining, after unilateral implementa-
tion, would not in any event cure the violation Golconda Corp. v. NLRB,
474 F.2d 49, 53 (6th Cir 1973), enfg. 194 NLRB 609 (1971) Therefore,
we find no meet in the Respondent's argument based on postimplementa-
tion bargaining.
Contrary to the dissent, we agree with the judge's analysis in finding
that the language in the Declaration of Trust requiring that employer
contributions to the pension fund be "in accordance with a Pension
Agreement" was not clearly and unnustakably intended as a waiver of
the Union's right to bargain over discontinuation of contributions on ex-
piration of the parties' collective-bargaining agreement.
8 Thus, we decline to join our dissenting colleagues in reaching out to
decide the broad and complicated issue-not before us here-concerning
the suspension of an employer's duty to bargain during a strike In fact,
the Respondent's exception to the judge's finding that certain Colorado
Springs changes violated Sec. 8(a)(5) argues only that any violation was
cured by subsequent bargaining, a defense we have rejected. See fn. 6,
supra Moreover, the Respondent's action in unilaterally establishing per-
manent new conditions for all of its Colorado Springs employees exceed-
ed the limits of any arguable strike-related hiatus in the obligation to bar-
gain concerning returned strikers such as that which our dissenting col-
leagues propose
9 Member Cracraft agrees with the majority's conclusions except as
they relate to the unilateral changes affecting the returning economic
strikers at the Respondent's Colorado Springs facility. Because she be-
lieves that the interests of returning economic striker. are more closely
aligned with the interests of strike replacements than with those of the
employees who have chosen to remain on strike, she joins the Chairman's
dissent insofar as he finds that the Respondent is not required to apply
the preexisting terms and conditions of employment to the returning
stokers. Thus, as an employer is not obligated to bargain over the terms
and conditions of employment for strike replacements, Member Cracraft
would not find that such an obligation arises as to the returning strikers.
We disagree, however, with the judge's finding
that the Respondent lawfully ceased making contri-
butions to the fringe benefit plans of the expired
contract. In so finding, the judge treated the Re-
spondent's discontinuance of the contractual bene-
fits as something separate and distinct from the Re-
spondent's partial substitution of different benefits
in their place at the Colorado Springs facility.
Thus, as noted above, the judge found that the Re-
spondent unlawfully substituted a new health and
welfare plan and paid its former 40-cent-an-hour
vacation fund contribution to the employees as in-
creased wages, both without notice to the Union.
On the other hand, he found that the Respondent's
permanent discontinuance of the contractual benefit
plans was not implemented until 10 August, when
the Union already had notice and had either bar-
gained to impasse or waived its right to bargain.
We find that these related unilateral actions are
equally violative of the Respondent's duty to bar-
gain, and that the judge erred in separating the in-
stitution of the new benefits from the cessation of
the old ones in determining the legality of the Re-
spondent's conduct.
The judge arrived at 10 August as the date of
implementation because that was the first date on
which contributions for the strikers who returned
in July were due to be paid to the benefit funds.
Determination of the Respondent's bargaining obli-
gation, however, depends not on the date on which
the Respondent would have been in default on its
contributions, but on the position it presented to
the Union. Having first given the impression that it
was ceasing its contributions because of the strike,
the Respondent announced, shortly after submitting
discontinuance of the plans as a bargaining propos-
al, and without advance notice to the Union, that
replacement of the health and welfare plan had
been implemented. This announcement signified
that the change was permanent, that is, it would
remain in effect until the Respondent chose to re-
scind it. Although it referred explicitly only to the
health and welfare plan, the announced substitution
was part of a pattern of unilateral changes that in-
cluded conversion of the vacation fund contribu-
tions to hourly wages and discontinuance of pen-
sion fund contributions.
The Union recognized
these changes as all of one piece, and, on objecting
to them, was rebuffed as noted above.
The picture thus presented was that any tempo-
rary discontinuance of contributions that may have
been justified by the fact that all of the employees
were out on strike had acquired the earmarks of
permanent changes that were imposed unilaterally
in lieu of bargaining over the Respondent's propos-
al to make those very changes. By engendering
344
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
that perception, the Respondent placed the Union
in the position of having to bargain, if at all, over a
fait accompli. Because these changes were made
before the Union had an opportunity to bargain
about the proposals, the Respondent was not privi-
leged to implement them .1 ° The Union promptly
requested information about the proposed changes
and then protested their unilateral implementation.
Thus, the Union can hardly be said to have waived
its bargaining rights. We therefore find that the Re-
spondent's repudiation of its obligation to make
contributions to any of the contractual benefit
plans for unit employees at work at its Colorado
Springs facility violated Section 8(a)(5). We shall
incorporate the appropriate remedial provisions in
the Order. 1I
ORDER
The National Labor Relations Board orders that
the Respondent, Schmidt-Tiago Construction Com-
pany, Arvado and Colorado Springs, Colorado, its
officers, agents, successors, and assigns, shall
1. Cease and desist from
(a) Refusing to bargain collectively with Interna-
tional
Brotherhood
of
Teamsters,
Chauffeurs,
Warehousemen and Helpers of America, Local
Union No. 13 as the representative of the appropri-
ate units described below, by unilaterally ceasing to
make contributions on behalf of unit employees to
the pension, health and welfare, and vacation trust
funds, as provided in the expired 1978-1981 High-
way,
Heavy
Engineering,
Utility
and
Building
Construction Agreement, by unilaterally paying
unit employees an additional 40 cents an hour
which previously was contributed by the Respond-
ent to the contractual vacation trust fund, and by
unilaterally instituting a new health and welfare
program. The appropriate bargaining units are as
follows:
All employees, excluding supervisors as de-
fined by the Act, employed in the job classifi-
cations covered by the 1978-1981 Highway,
Heavy Engineering, Utility and Building Con-
struction Agreement, who are employed at (a)
10 The Respondent's original announcement of a temporary discontinu-
ance did not constitute a bargaining proposal
Therefore, we disagree
with the judge's conclusion that, assuming that shortly before the unilat-
eral changes the parties reached impasse on other issues, the unilateral
changes were encompassed by the Respondent's pre-impasse proposals
That necessary condition for the "impasse " exception to the rule against
unilateral changes has not been established here See Western Publishing
Co., 269 NLRB 355 (1984)
11 The judge expressed doubts that it would be appropriate, even if the
Colorado Springs benefits were discontinued unlawfully, to restore the
status quo ante because (as the judge found without exception) the parties
had bargained to a general good -faith impasse after the unilateral
changes
However, the record shows that no substantial bargaining on
this issue occurred.
the Company's Colorado Springs, Colorado fa-
cility, and, (b) the Company's other operations
in the State of Colorado.
(b) Refusing to bargain with the Union by deal-
ing directly with employees concerning matters
over which it is obligated to bargain with the
Union.
(c) Telling employees represented by the Union
that the Respondent would never sign a contract
with the Union and that the employees' continued
employment was conditioned on their resignation
from the Union.
(d) In any like or related manner interfering
with, restraining, or coercing employees in the ex-
ercise of the rights guaranteed them by Section 7
of the Act.
2. Take the following affirmative action neces-
sary to effectuate the policies of the Act.
(a) Make whole the unit employees represented
by the Union employed in the State of Colorado
by paying on their behalf all pension and vacation
trust fund contributions, as provided in the expired
1978-1981
Highway, Heavy Engineering, Utility
and Building Construction Agreement, which have
not been paid and which would have been paid but
for the unlawful conduct found here, and continue
such payments until such time as the Respondent
negotiates in good faith to a new agreement or to
an impasse.
(b) Make whole the aforesaid unit employees for
any losses or expenses they may have incurred as a
result of the Respondent's failure from 10 July 1981
and continuing thereafter to make contributions on
their behalf to the pension and vacation trust funds,
as set forth in the remedy section of the judge's de-
cision.12
(c) On written request from the Union, and in
the same manner set forth in the remedy section of
the judge's decision, rescind the Colorado Contrac-
tors
Association
Health and
Welfare
Program
which it instituted in July 1981 and immediately re-
establish the health and welfare program which
was in existence under the 1978-1981 Highway,
Heavy Engineering, Utility and Building Construc-
tion Agreement and resume making contributions
into the health and welfare trust fund established
by that agreement.
12 In accordance with our decision in New Horizons for the Retarded,
283 NLRB 1173 ( 1987), interest on and after 1 January 1987 shall be
computed at the "short-term Federal rate" for the underpayment of taxes
as set out in the 1986 amendment to 26 U.S.C § 6621. Interest on
amounts accrued prior to 1 January 1987 (the effective date of the 1986
amendment to 26 U S.C § 6621) shall be computed in accordance with
Florida Steel Corp, 231 NLRB 651 (1977). Any interest due on trust fund
payments shall be computed in the manner prescribed in Merryweather
Optical Co, 240 NLRB 1213 (1979)
SCHMIDT-TIAGO CONSTRUCTION CO.
345
(d) Notify, in writing, all persons employed after
1 July 1981 in Colorado represented by the Union
that they may be entitled to money damages they
may have incurred due to the Respondent's institu-
tion
of the Colorado Contractors Association
Health and
Welfare Program for the program
which was previously in existence.
(e) Preserve and, on request, make available to
the Board or its agents for examination and copy-
ing, all payroll records, social security payment
records, timecards, personnel records and reports,
and all other records necessary to analyze the
amount of backpay due under the terms of this
Order.
(f) Post at its locations in the State of Colorado
copies of the attached notice marked "Appen-
dix."13 Copies of the notice, on forms provided by
the Regional Director for Region 27, after being
signed by the Respondent's authorized representa-
tive, shall be posted by the Respondent immediate-
ly upon receipt 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 altered, defaced,
or covered by any other material.
(g) Notify the Regional Director in writing
within 20 days from the date of this Order what
steps the Respondent has taken to comply.
IT IS FURTHER ORDERED that the complaint alle-
gations not specifically found are dismissed.
CHAIRMAN DOTSON, dissenting in part.
Although I agree, for the most part, with my
colleagues' and the judge's findings in this case, I
do not agree that the unilateral[ changes instituted
by the Respondent at its Colorado Springs, Colora-
do facility and applied to employees who returned
to work during the course of an economic strike
were unlawful, or that its discontinuance of pen-
sion fund contributions for employees outside its
Colorado Springs facility violated the Act.
As stated in Service Electric Co., 281 NLRB 633
(1986), the Act, in my view, does not require an
employer to apply preexisting terms and conditions
of employment to economic strike replacements on
the strike's termination. Since the interests of re-
turning economic strikers are more closely aligned
with those of strike replacements rather than with
those of the strikers, an employer has no greater
duty to bargain during the strike over the returning
strikers' terms of employment than it does over
13 If this Order is enforced by a judgment of a Umted 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 "
those of the strike replacements. For this reason I
find, contrary to my colleagues, that the unilateral
changes instituted by the Respondent at its Colora-
do Springs facility for its returning strikers did not
violate the Act, as alleged.
Nor, as stated, would I find a violation with re-
spect to the Respondent's decision to discontinue
making pension fund contribution for employees
employed outside its Colorado Springs facility.
Rather, I agree with the Respondent that the
Union in this case waived its right to bargain over
discontinuance of the pension fund once the con-
tract authorizing establishment of the fund expired.
Thus, the Declaration of Trust authorizes employer
contributions only when made "in accordance with
a Pension Agreement" which is defined as includ-
ing "any extension, renewal or replacement there-
of," and is considered to be in effect "on any date
if it provides for employer contributions to be
made to the Trust Fund with respect to employ-
ment on such date." The clear implication of these
limitations is to waive both the employees' right to
receive the benefits of pension fund contributions
and the Union's right to bargain regarding the Re-
spondent's cessation of contributions when the con-
tract
expired without renewal or replacement.'
Under these circumstances, the Respondent's con-
duct in discontinuing its pension fund contributions
was not unlawful and I would, accordingly, dismiss
this complaint allegation.
In all other respects, I agree with my colleagues'
and the judge's findings in this case.
1 Cauthorne Trucking, 256 NLRB 721 (1981), remanded on other
grounds 691 F 2d 1023 (D C Cir. 1982)
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 violated the National Labor Relations Act
and has ordered us to post and abide by this notice.
WE WILL NOT refuse to bargain collectively with
International
Brotherhood of Teamsters, Chauf-
feurs,
Warehousemen and Helpers of America,
Local Union No. 13 as the representative of the ap-
propriate units described below, by unilaterally
ceasing to make contributions on behalf of the unit
employees to the pension health and welfare, and
vacation trust funds, as provided in the expired
1978-1981
Highway, Heavy Engineering, Utility
and Building Construction Agreement, by unilater-
346
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
ally paying unit employees an additional 40 cents
an hour which previously we contributed to the
contractual vacation trust fund, and by unilaterally
instituting a new health and welfare program. The
appropriate bargaining units are as follows:
All employees, excluding supervisors as de-
fined by the Act, employed in the job classifi-
cations covered by the 1978-1981 Highway,
Heavy Engineering, Utility and Building Con-
struction Agreement, who are employed at (a)
our Colorado Springs, Colorado facility, and
(b) our other operations in the State of Colora-
do.
WE WILL NOT refuse to bargain with the above-
named Union by dealing directly with employees
concerning matters over which we are obligated to
bargain with the Union.
WE WILL NOT tell employees represented by the
Union that we will never sign a contract with the
Union and that the employees' continued employ-
ment is conditioned on their resigning from the
Union.
WE WILL NOT in any like or related manner
interfere with, restrain, or coerce you in the exer-
cise of the rights guaranteed you by Section 7 of
the Act.
WE WILL make whole employees represented by
the Union employed by us in the State of Colorado
by paying on their behalf all pension and vacation
trust fund contributions, as provided in the expired
1978-1981 Highway, Heavy Engineering, Utility
and Building Construction Agreement, which have
not been paid and which would have been paid
absent our unilateral discontinuance of such pay-
ments, and WE WILL continue such payments until
such time as we negotiate in good faith to a new
agreement or to an impasse.
WE WILL make the bargaining unit employees
described immediately above whole, with interest,
for any losses or expenses they may have incurred
as a result of our failure from 10 July 1981 and
continuing thereafter to
make contributions on
their behalf to the pension and vacation trust funds
of the expired 1978-1981 Highway, Heavy Engi-
neering, Utility and Building Construction Agree-
ment.
WE WILL, on written request from the Union, re-
scind the Colorado Contractors Association Health
and Welfare Program which we instituted in July
1981, and immediately reestablish the health and
welfare program which was in existence under the
1978-1981 Highway, Heavy Engineering, Utility
and Building Construction Agreement and resume
making contributions into the health and welfare
trust fund established by that agreement.
WE WILL notify, in writing, all persons em-
ployed by us in Colorado after 1 July 1981 and
who were represented by the Union that they may
be entitled to financial reimbursement for damagaes
they may have incurred due to our unilateral insti-
tution of the Colorado Contractors Association
Health and Welfare Program in place of the pro-
gram which was previously in existence.
SCHMIDT-TIAGO CONSTRUCTION COMPANY
William J. Daly and Arturo E. Roybal, Esqs., for the Gen-
eral Counsel.
Daniel J. Collyar (Mountain States Employers Council),
for the Respondent.
DECISION
STATEMENT OF THE CASE
JERROLD H. SHAPIRO, Administrative Law Judge. The
hearing in this proceeding, which was held May 22-23,
1984, was based on unfair labor practice charges filed by
International
Brotherhood of Teamsters ,
Chauffeurs,
Warehousemen and Helpers of America, Local Union
No. 13 (Union), in Cases 27-CA-7424, 27-CA-7336-7,
and 27-CA-83481 against Schmidt -Tiago Construction
Company (Respondent), and on a fourth amended con-
solidated complaint issued May 31, 1983 , by the Regional
Director of Region 27 of the National Labor Relations
Board on behalf of the Board's General Counsel, alleging
that Respondent has engaged in unfair labor practices
within the meaning of Section 8(a)(1), (3), and (5) of the
National Labor Relations Act.
The complaint alleges that in violation of Section
8(a)(1) of the Act Respondent told striking employees
that in order to return to work they would have to
resign from the Union and show Respondent proof of
their resignations, told employees that Respondent would
never sign a collective-bargaining contract
with the
Union, and promulgated and maintained an illegal no-so-
licitation rule. The complaint also alleges that in viola-
tion of Section 8(a)(3) and (1) of the Act, Respondent al-
lowed striking employees to return to work and granted
them a pay raise if they resigned from the Union and
showed Respondent proof of their resignations , and con-
structively discharged 13 named striking employees by
conditioning their continued employment on their resign-
ing from the Union and showing Respondent proof of
their resignations . The complaint further alleges that in
violation of Section 8(a)(5) and (1) of the Act, Respond-
ent bypassed the Union and instead dealt directly with
employees represented by the Union, denied union busi-
ness agents access to its facilities, and, without affording
the Union a reasonable opportunity to bargain, engaged
in the following unilateral conduct: Implemented a new
' The charge in Case 27-CA-7367 was filed June 22, 1981, and amend-
ed April 19, 1982. The charge in Case 27-CA-7424 was filed July 21,
1981, and amended July 28 , 1981 The charge in Case 27-CA-8348 was
filed April 18, 1983
SCHMIDT-TIAGO CONSTRUCTION CO.
347
health insurance plan for its employees; ceased making
employee fringe benefit payments to the several trust
funds established by its recently terminated contract with
the Union; increased the wage rates of employees who
returned to work during the Union's strike; changed the
manner of paying its employees by paying directly to
nonstriking employees moneys that previously had been
contributed by Respondent on their behalf lo a pension
trust fund. Last, the complaint alleges that a strike of Re-
spondent's employees represented by the Union was pro-
longed by the above-described alleged unfair labor prac-
tices. Respondent filed a timely answer denying the com-
mission of the alleged unfair labor practices.2
On the entire record, and from my observation of the
demeanor of the witnesses, and having considered the
posthearing briefs, I make the following
FINDINGS OF FACT
1. THE ALLEGED UNFAIR LABOR PRACTICES
A. The Evidence
1. Background
During the time material, the Respondent, a corpora-
tion, as admitted by its answer, was engaged in business
as a paving contractor in the construction industry con-
structing roads, dams, and similar heavy construction
projects in the State of Colorado with its principal place
of business in Arvado, Colorado, and with other offices
and places of business in other locations in Colorado.
The record further reveals that during the time material
that Respondent in addition to its paving work on heavy
construction, such as highways, also did paving work on
smaller projects such as parking lots for commercial
buildings. At all times Respondent has operated one
fixed-location asphalt plant situated in Colorado Springs,
Colorado, where Respondent's employees transport and
process sand and gravel into asphalt.
The Union for more than 30 years has represented all
the truckdrivers, warehousemen, truck maintenance em-
ployees, and truckdriver helpers employed by Respond-
ent in the State of Colorado. These employees have been
represented by the Union as a part of a multiemployer
bargaining unit consisting of Respondent's employees
and the employees of over 20 other contractors who do
business in the State of Colorado. The employers in this
multiemployer unit have been represented by the Signa-
tory Labor Committee appointed by the Colorado Con-
tractors Association, Inc. (SLC), and the collective-bar-
gaining contracts entered into between the Union and
the SLC covering the employees in the multiemployer
unit have been entitled "[Union] Highway, Heavy Engi-
neering, Utility and Building Construction Agreement"
(union heavy highway contract). The most recent union
heavy highway contract between SLC and the Union,
which covered all the Respondent's employees employed
2 Respondent admits that the Union is a labor organisation within the
meaning of Sec 2(5) of the Act Likewise, Respondent admits that it
meets the Board's applicable discretionary jurisdictional standard and is
an employer engaged in commerce within the meaning of Sec . 2(6) and
(7) of the Act
in Colorado, was effective from May 1, 1978, to May 1,
1981.
In 1978 the Union negotiated a collective- bargaining
contract with four paving contractors-Brannan Sand &
Gravel, Asphalt Paving Company, Flatiron Paving Com-
pany of Boulder and Western Paving Construction Com-
pany-who were not part of the multiemployer unit en-
compassed by the 1978-1981 union heavy highway con-
tract. This contract was entitled the "Asphalt Paving In-
dustry Group" contract (union asphalt paving group
contract), and was negotiated jointly on behalf of all four
employers by Kermit Darkey, the chief executive officer
of the Mountain States Employers Council. All the rele-
vant provisions of the union asphalt paving group con-
tract, including its effective dates, are identical to the
provisions of the 1978 union heavy highway contract.
2. The negotiations for a successor to the 1978-1981
union heavy highway contract
The negotiations between the Union and SLC for a
successor contract to the 1978-1981 union heavy high-
way contract, which was scheduled to terminate May 1,
1981, began March 11, 1981, and seven negotiation meet-
ings were held between March 1981, with the seventh
and final meeting taking place June 16, 1981.
During the June 16, 1981 negotiation meeting the SLC
conditioned
continued contract negotiations on the
Union's consent to the untimely withdrawal of seven of
the employer members from the multiemployer bargain-
ing unit.3 Thereafter, on June 29, 1981, the SLC disband-
ed the multiemployer bargaining unit and refused to
meet and to bargain with the Union on a multiemployer
unit basis.
The Union in the months of June and July 1981 filed
unfair labor practice charges with the Board in Cases 27-
CA-7369 and 27-CA-7369-2 challenging the SLC's
above-described conduct. The Board's General Counsel,
based on these charges, on September 14, 1981, issued an
amended consolidated complaint alleging that Respond-
ent and 24 other named respondent employers were a
multiemployer bargaining unit represented by the SLC,
that all the drivers employed by these 25 respondent em-
ployers constituted an appropriate bargaining unit, and
that the 25 respondent employers and the SLC, which
had been designated as their agent, all violated Section
8(a)(5) and (1) of the Act "by conditioning further nego-
tiations on the Union's consent to the untimely with-
drawal from the multiemployer unit of certain of re-
spondent employers" and "by disband[ing] the multiem-
ployer bargaining unit and by thereafter failing and re-
fusing to meet and bargain with the Union as a multiem-
ployer bargaining unit."
A hearing was held in Cases 27-CA-7369 and 27-CA-
7369-2 on October 15-16, 1981, before Administrative
Law Judge Holmes who issued a decision on February 8,
1982. On May 28, 1982, the Board issued its Decision
and Order affirming the rulings, findings, and conclu-
sions of Judge Holmes in their entirety , and adopted his
3 Respondent was not one of these seven employers.
348
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
recommended Order.4 The Board concluded that the
SLC was the respondent employers' agent for the pur-
pose of negotiating a successor agreement to the 1978-
1981 union heavy highway contract, that the employees
of the respondent employers in the job classifications
covered by that contract constituted an appropriate mul-
tiemployer bargaining unit, that the employees were rep-
resented by the Union, and that the respondent employ-
ers and their agent, the SLC, violated Section 8(a)(5) of
the Act by "(a) conditioning further contract negotia-
tions with the union on the union's multi-employer bar-
gaining unit" and by "(b) disbanding the respondent em-
ployers from the multi-employer unit, and failing and re-
fusing to meet and bargain with the union as a multi-em-
ployer bargaining unit."
In addition to the unfair labor practices filed in Cases
27-CA-7369 and 27-CA-7369-2, the Union, during the
negotiations for a successor contract to the 1978-1981
union heavy highway contract, filed an unfair labor prac-
tice charge against the Respondent in Case 27-CA-7371
on June 23, 1981, alleging that Respondent was refusing
to bargain with the Union in violation of Section 8(a)(5)
and (1) of the Act, as follows: "By conditioning entry
into a successor agreement to the [1978-1981 union
heavy highway contract] upon exclusion of its fixed
based stationary operation located at Colorado Springs,
Colorado." Shortly thereafter the Union withdrew this
charge. The circumstances surrounding the filing and
withdrawal of this charge are undisputed and are as fol-
lows.
During the June 12, 1981 bargaining session the Re-
spondent's representative Wally Schmidt requested that
Respondent's fixed-base asphalt plant located in Colora-
do Springs be excluded from the multiemployer unit
being bargained for and insisted that the Union agree to
this request. The Union's representative took the position
that the SLC represented all the Respondent's operations
in the State of Colorado and filed a charge in Case 27-
CA-7371.
On June 24, 1981, the day after filing the charge, the
Union's lawyer John McKendry spoke to David Gor-
such, the lawyer representing the Respondent in connec-
tion with the Board's investigation of the charge, 5 and
explained to Gorsuch why the charge had been filed and
that it was the Union's position that SLC represented all
of Respondent's operations in Colorado including the
Colorado Springs location. Gorsuch stated that this was
correct and that he would acknowledge this in the
future. McKendry stated that he would accept Gorsuch's
representation, confirm it in writing, and based on it,
4 Signatory Labor Committee, 261 NLRB 1459 ( 1982). On February 29,
1983, the Board's Order was enforced in its entirety by the United States
Court of Appeals for the Tenth Circuit. Previously, in December 1982,
the court granted the Board's motion for temporary injunctive relief
under Sec 10(e) of the Act enforcing the Board's Order in full, pendente
lite.
6 The law firm in which Attorney Gorsuch is a partner , Gorsuch,
Kirgis, Campbell, Walker, and Grover, represented Respondent in the
litigation before the Board and court in Cases 27-CA-7369 and 27-CA-
7369-2 and was also Respondent's counsel in this litigation until April 2,
1982, when it withdrew. Also at all times material Attorney Gorsuch's
law firm has represented the SLC
advise the Union to withdraw its charge. The same day
one of McKendry's associates wrote Gorsuch as follows:
Re: Teamsters Local No. 13 and Schmidt-Tiago
Construction Co.; (1981 Collective Bargaining Ne-
gotiations) NLRB Case No. 27-CA-7371
Dear Mr. Gorsuch:
This letter will serve to confirm your discussion
by telephone of June 24, 1981 with John McKen-
dree [sic]
wherein
you represented that the
Schmidt-Tiago Construction Company has and will
continue to designate the Colorado Contractors As-
sociation, Inc. as its sole and exclusive bargaining
representative for the purpose of negotiating on its
behalf with the Teamsters Construction Workers
Local Union No. 13 of the International Brother-
hood of Teamsters, Chauffeurs, Warehousemen and
Helpers of America for all its Colorado operations
including its fixed based stationary operations locat-
ed at Colorado Springs, Colorado.
In consideration of the foregoing representations
made in the above-mentioned telephone conversa-
tion, the Union will withdraw without prejudice to
refile its Unfair Labor Practice charge in the above-
captioned matter.
The negotiations between the SLC and the Union for
a successor contract to the 1978-1981 union heavy high-
way contract resumed briefly in February and March
1982 when three or four negotiation meetings were held.
These negotiations ended late in March 1982 when At-
torney Charles Grover, a partner in the law firm of Gor-
such, Kirgis, Campbell, Walker, and Grover, which was
representing the SLC, informed the Union's negotiators
on behalf of the SLC, that "it has been consistently our
position that the SLC represented all of [Respondent]
state wide, with the exception of the Colorado Springs
operation." The Union's lawyer John McKendry, who
was present at this negotiation session, emphatically
denied that this had been the position of the SLC and
stated that all the Respondent's operations including its
Colorado Springs operation were represented by SLC in
the negotiations . The Respondent's representatives stated
that if that was the Union's position, that they were leav-
ing and left the meeting room, whereupon the Union's
negotiators also walked out, thus ending the negotiations.
It was not until early 1983 that the contract negotia-
tions between SLC and the Union resumed and these ne-
gotiations continued until March or April 1984 without
success in reaching an agreement to replace the 1978-
1981 union heavy highway contract.6 During one of
these bargaining sessions , early in February 1983, Robert
Prevost, who at the time was one of Respondent's vice
presidents and its general manager in charge of the Colo-
rado Springs operation, informed the Union's negotiators
that the SLC was negotiating on behalf of Respondent
6 These negotiations were apparently resumed by the SLC in comph-
ance with the court's grant of temporary injunctive relief to the Board in
December 1982 in connection with the Board 's petition to enforce its
Order in Cases 27-CA-7369 and 27-CA-7369-2, and continued thereafter
when the court enforced the Board's Order in those cases
SCHMIDT-TIAGO CONSTRUCTION CO.
349
and all of its operations including the Company's Colora-
do Springs fixed-based operations.
3. The negotiations for a successor to the 1978-1981
union asphalt paving contract
On April 1, 1981, contract negotiations began for a
contract to succeed the 1978-1981 union asphalt paving
group contract, which by its terms was scheduled to ter-
minate May 1, 1981. As indicated previously, the 1978-
1981
agreement
covered
four
employers-Asphalt
Paving Company, Brannan Sand & Gravel, Flatiron
Paving Company of Boulder, and Western Paving Con-
struction Company. However, prior to the start of the
negotiations for a new contract, Kermit Darkey, the
chief executive officer of the Mountain States Employers
Council, which represented the employers who were sig-
natory to the 1978-1981 contract, notified the Union in
writing that four more employers were being added to
this
group-Broderick-Gibbons Inc., Flatiron Paving
Company of Greeley, Sterling Paving Company, and Re-
spondent. Darkey also told the Union that the eight em-
ployers "are members of the Asphalt Paving Industry
multiemployer bargaining group for their commercial as-
phalt paving operation and/or their fixed based station-
ary operations" and were ready to meet with the Union
to negotiate the wages, hours, and terms and conditions
of employment of their employees employed in these op-
erations. As will be described in detail infra, starting on
April 1, 1981, the parties held several negotiation meet-
ings. Although Darkey was the spokesperson for the em-
ployers at these meetings, there was at least one repre-
sentative for each employer present at most of the meet-
ings. Present for the Respondent at most meetings was
Robert Prevost, its then vice president and general man-
ager in charge of its Colorado Springs operation. The
Union's spokesperson during the negotiations was its
president, Jack Parker.
During the April 1, 1981 negotiation meeting Darkey
on behalf of the employers presented a written contract
proposal. The proposal did not include a wage provision
and proposed that the existing fringe benefit provision of
the 1978-1981 asphalt paving group contract remain un-
changed.7
At the outset of the meeting Parker told Darkey that
he did not understand Respondent's presence in the ne-
gotiations because Respondent, Parker stated, was "rep-
resented by the SLC as well." Darkey responded by stat-
ing that he did not know anything about that, but only
knew that he was instructed that Respondent was a part
of the group of employers on whose behalf he was nego-
tiating. Parker did not press the matter and expressed no
objection to Respondent being covered by the asphalt
paving contract negotiations, nor did he object to the
presence of Robert Prevost, Respondent's vice president
and general manager in charge of the Colorado Springs
operation.
As I have noted supra , these provisions as well as all other contrac-
tual provisions relevant to this case in the 1978-1981 asphalt paving
During the April 1 meeting Darkey and Parker,
among other things, discussed and identified the portions
of the employers' businesses that were going to be cov-
ered by negotiations, and at this time Parker asked
whether Respondent's Craig, Colorado operation was in-
cluded in the negotiations. Darkey replied that only Re-
spondent's Colorado Springs facility would be included
in the negotiations.
The next two negotiations meetings were held April 9
and 14, 1981, and at neither meeting did Parker object to
Respondent's
inclusion in the negotiations.
Nor did
Parker object to Prevost's presence at the April 9 meet-
ing.8
On April 21, 1981, the next negotiation meeting took
place. Parker raised no objection to the inclusion of Re-
spondent as one of the employers for whom Darkey was
bargaining nor did Parker object to Prevost's presence.
During this meeting Darkey submitted an amended and
modified contract proposal on behalf of the employers,
which proposed a contract of 3-year duration. This pro-
posal provided that in 1981, 1982, and 1983 on May 1 of
each of those years, there would be wage increases of 55
cents an hour or 80 percent of the union heavy highway
contract settlement, whichever was greater. Regarding
fringe benefits, the proposal provided that fringe benefit
provisions of the existing contract remain unchanged and
that employers' payments into the contractual pension
and vacation trust funds remain unchanged for the dura-
tion of the contract as would the employers' payments
into the industry advancement program or asphalt indus-
try program. With respect to contributions to the health
and welfare trust fund, the employers' proposal called
for hourly increases of 5 cents the first year, 6 cents the
second year, and 6 cents the third year.
The next negotiation session took place May 6, 1981.
Parker raised no objection to the inclusion of Respond-
ent as one of the employers for whom Darkey was bar-
gaining nor did he object to Prevost's presence. Darkey
modified the employers' April 21 contract proposal in
several respects. The fringe benefits provisions remained
the same, but with respect to wages the employers now
proposed that on the effective date of a new agreement
that employees working on or out of portable asphalt
plants or producing aggregate for portable asphalt plants
receive a 53-cent-an-hour increase and that employees
working on or working out of or producing for a fixed-
based commercial asphalt paving plant shall receive an
hourly rate increase equal to 80 percent of the above
rate. The employers further proposed that effective 1
year and 2 years after the new agreement, the identical
pay raise be granted.
When the parties next met on May 12, 1981, there was
a Federal mediator present. Parker did not object the in-
clusion of Respondent as one of the employers for whom
Darkey was bargaining, nor did he object to Prevost's
presence. Darkey presented to Parker a written contract
proposal
which was entitled "Best,
Last and Final
Offer." In pertinent part this proposal provided for a
group contract were identical to the provisions in the 1978-1981 union
8 Neither Prevost nor any other representative of Respondent attended
heavy highway contract
the April 14 meeting
350
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
contract of 2-year duration, provided for a wage increase
of 80 cents an hour effective the first day of the month
following the contract modification, and a further in-
crease of 70 cents an hour effective May 1, 1982. With
respect to fringe benefits, the only mention of that sub-
ject in this proposal concern health and welfare and on
that subject the Employer proposed that their hourly
contributions be increased by 10 cents effective the first
day of the month following the contract's ratification
and that effective May 1, 1982, be increased by another
10 cents.
No further negotiation meetings were held in May
1981 and none were held in June 1981, when on June 18
the Union struck all eight of the employers represented
by Darkey in these negotiations. The Union only struck
the Respondent's Colorado Springs location, not Re-
spondent's other locations or jobs.
The strike shut down Respondent's Colorado Springs
operation as all the employees employed at that location
who were represented by the Union supported the strike.
However, the first week of July 1981 Respondent re-
sumed operations at its Colorado Springs operation using
a combination of returning strikers and striker replace-
ments.
On June 18, 1981, Darkey on behalf of the employers
wrote Union President Parker as follows:
1. As you are aware, the individual member em-
ployers of the Asphalt Paving Industry Group each
made their best, last and final offer May 12, 1981.
The Union has now struck the individual employers
or directed its members to honor picket lines estab-
lished by other Unions. The Employers have care-
fully reviewed the situation and have concluded
that it is their intention to resume and continue their
operations in spite of the strike.
Accordingly, the Employers intend to hire per-
manent replacements. Letters will be mailed to the
employees advising them of the Employer's inten-
tions to resume operations and hire permanent re-
placement employees.
2. Be advised, effective immediately, the Group
Employer members are discontinuing enforcement
of the Union Membership and Hiring Procedure
provisions of the Collective Bargaining Agreement.
Likewise, contributions will not be paid to any
jointly trustee benefit plan or to any vacation or ap-
prenticeship plans.
3. As you are aware the Industry Group negotiat-
ed jointly albeit, as individual employers. Accord-
ingly, because of the impasse which exists in the
current bargaining situation each Employer member
individually reserves the right to impasse the wage
rate offer made to the Union May 12, 1981.
The individual Employers stand ready and able
to meet at a mutually convenient date and time.
On June 29, 1981, Darkey, on behalf of the employers,
wrote Union President Parker, as follows:
In reference to the position of the individual em-
ployers of the Asphalt Paving Industry, and specifi-
cally in regard to contributions and payments to be
made to respective Health and Welfare and Vaca-
tion Fund Plans, the amounts owed will be paid on
the basis of the contribution schedule of the labor
agreement which terminated May 1, 1981, when the
strike commenced. Employers were advised prior to
the commencement of the strike that payments were
due and payable.
However, as you were advised in our letter dated
June 18, 1981, contributions will not be paid to any
jointly trusted benefit plan or to any vacation or ap-
prenticeship plan for the period after June 18, 1981,
unless and until subseqeunt labor agreements are
agreed to and ratified between the Union and indi-
vidual employers.
The individual employers continue ready and
able to meet at a mutually convenient date and
time.
Those strikers who returned to work, starting in the
first week of July 1981, received the 80-cent-an-hour pay
raise that was contained in the employers' May 12, 1981,
"Best, Last and Final Offer." Also the returning strikers
were paid the 40 cents an hour that had been previously
paid by Respondent on behalf of the employees to have
the vacation trust fund provided for in the 1978-1981
union heavy highway contract. Besides discontinuing to
make the contractual vacation trust fund contributions
on behalf of its employees, Respondent effective June 18,
1981, also discontinued making payments on behalf of its
employees into the health and welfare and pension trust
funds provided for in the 1978-1981 union heavy high-
way contract, as well as the industry advancement funds
payments provided for by that contract. Respondent
since June 18, 1981, has not made any payments into the
aforesaid trust funds on behalf of not only just its Colo-
rado Springs employees but on behalf of all of its em-
ployees in the State of Colorado. Also in the first week
of July 1981, Respondent placed all of its employees rep-
resented by the Union employed in the State of Colora-
do under a health and welfare program maintained by
the Colorado Contractors Association and since that time
has been making payments on behalf of these employees
into the Colorado Contractors Trust for their health and
welfare benefits.
Following the May 12, 1981 negotiation meeting, it
was not until July 23, 1981, that Darkey, the Asphalt
Paving Groups negotiator, and Parker, the Union's nego-
tiator,
next
met. The circumstances surrounding this
meeting are as follows. Prior to July 23, 1981, when Bill
Keller, the president of Asphalt Paving Company, one of
the employer members of the Asphalt Paving Group,
asked Parker to negotiate with his company, Parker
agreed to the July 23, 1981 negotiating meeting. Present
at this meeting were Keller and Darkey for the Asphalt
Paving Company, Parker, and another union official for
the Union. None of the officials of the several other em-
ployers in the Asphalt Paving Group, who Darkey rep-
resented, was present as would have been the case if this
had been scheduled as a negotiating meeting that con-
cerned the other employers.
During the July 23 meeting Darkey handed Parker a
typed document dated July 23, 1981, which stated in sub-
SCHMIDT-TIAGO CONSTRUCTION CO.
351
stance that Flatiron Paving Company of Boulder, Fla-
tiron Paving Company of Greeley, Sterling Paving Com-
pany, Asphalt Paving Company, and Respondent were
unwilling to increase their economic offer that was re-
jected on May 12, 1981, by the Union, that they were
now proposing that the industry advancement fund in-
cluded in the recently expired contract be terminated,
and with respect to the subjects of health and welfare,
vacation, and pension were presenting new contract pro-
posals."
Asphalt Paving Company's July 23 proposals regard-
ing health and welfare, vacation, and pension were set
out in a separate typed document that Darkey gave to
Parker. The record does not reveal the substance of
these proposals.
Flatiron Paving Company of Boulder, Flatiron Paving
Company of Greeley, and Sterling Paving Company pro-
posed in their July 23 proposals that the health and wel-
fare provision of the recently expired contract he deleted
and that the health and welfare plan provided by the
Colorado Contractors Association be substituted, that the
vacation provision in the recently expired contract be de-
leted and the moneys previously paid under that contract
to a vacation trust fund be added to the employees'
hourly rates of pay and paid to them directly, and that
the pension plan provided for in the recently expired
contract be deleted and that the moneys previously paid
by the employer under that contract to a pension trust
fund be added to the employees' hourly rate of pay and
paid directly to the employees.
Respondent's July 23, 1981, health and welfare, vaca-
tion, and pension proposals insofar as they concerned
health and welfare were identical to the above-described
proposals of the other employers, but differed with re-
spect to pensions and vacations. While proposing that
the vacation plan provided for in the recently expired
contract
be deleted,
Respondent proposed that the
moneys previously paid to the contractual vacation trust
fund be paid directly to the employees in a lump-sum
payment at the end of each calendar year and, while pro-
posing that the pension plan in the recently expired con-
tract be deleted, Respondent proposed that a different
pension plan be established using the money formerly
paid by the Respondent into the contractual pension trust
fund, to fund the new pension plan's benefits.
There was no discussion about the above-described
proposals. However, Parker asked Darkey to furnish the
Union with a copy of the Colorado Contractors Associa-
tion's health and welfare plan.
There was one matter in dispute concerning the July
23 meeting. Parker testified that when Darkey handed
him the above-described written proposals, that Parker,
on observing Respondent's name, asked why Darkey was
speaking on Respondent's behalf and that Darkey stated
that he represented Respondent. Parker further testified
that he then asked whether Darkey knew about the
unfair labor practice charge settlement between Attor-
9 The reason why the July 23, 1981 proposals did not include the other
three employer members of the Asphalt Paving Group-Brannan Sand &
Gravel, Brodenck-Gibbons Inc, and Western Paving Construction Com-
pany-was that these companies had reached agreements with the Union
neys McKendry and Gorsuch in which it was settled
that Respondent would be represented by SLC for all of
its operations throughout the State. Darkey, according to
Parker, replied by stating that he had no knowledge of
this and that as far as he was concerned he represented
Respondent because those were his instructions. Darkey
specifically denied that this conversation took place.
When Darkey denied that the above-described disput-
ed conversation occurred, Darkey's testimonial demean-
or was good. I also note that in an affidavit given July
23, 1981, in connection with the charges filed in this
case, Parker failed to mention this disputed conversation.
Quite the opposite, Parker stated in the affidavit that
after Darkey handed him the July 23, 1981 proposals
that the subject he discussed with Darkey concerned
whether the employers had made contributions to the
various trust funds since June 18, 1981, not the subject of
Respondent's inclusion in the Asphalt Paving Group of
employers. As a matter of fact even though Parker in his
affidavit specifically mentioned the negotiations between
the Union and the Asphalt Paving Group of employers,
including Respondent, Parker significantly failed to men-
tion that the Union questioned Respondent's right to be a
part of that Group. Quite the opposite, Parker in his July
23, 1981 affidavit stated that Parker had been engaged in
negotiations with a group of eight Asphalt Industry Em-
ployers, one of whom was Respondent, that the employ-
ers' spokesperson was Darkey, and that with respect to
Respondent and four of the other employers that the ne-
gotiations were continuing. It is for all of these reasons
that I credit Darkey's testimony that the subject of Re-
spondent's representation by Darkey was not brought up
during the July 23, 1981 meeting.
On July 29, 1981, the next bargaining session took
place. It was attended by a Federal mediator who ar-
ranged for the meeting. Besides Darkey and Parker and
several other union representatives, also present was As-
phalt Paving Company's president, Keller. No officials
from any of the other employers were present.
The July 29 meeting started with Darkey informing
the Union's negotiators that the five Asphalt Paving
Group of employers, including Respondent, who were
being struck by the Union had implemented the Colora-
do Contractors Association health and welfare plan in
place of the former contractual plan to be sure that the
employees had uninterrupted health and welfare cover-
age. Also, pursuant to the Union's July 23 request,
Darkey gave Parker a copy of the booklet describing the
Colorado Contractors Association health and welfare
plan. Parker then handed Darkey a July 29 letter which,
on behalf of the Union, requested "information regarding
any benefits plans . . . implemented or to be implement-
ed by" the five Asphalt Paving Companies, including
Respondent, being represented by Darkey in the negotia-
tions. The letter explained that "to bargain meaningful
with these employers [referring to Respondent and the
other four Asphalt Paving Companies] concerning any
benefit plan, the Union . . . must have relevant informa-
tion concerning those plans," and requested certain enu-
merated information about the benefit plans that the em-
352
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
ployers had either implemented or were proposing to im-
plement.
At this point in the July 29 meeting Darkey gave
Parker a document dated July 29, 1981, which at the top
contained the names of Respondent and the other four
Asphalt Paving Companies represented by Darkey, and
which read as follows:
Incorporating the understanding of the individual
proposals made July 23, 1981, the following is the
position of the individual employers.
(1) Driver employees and employees within the
jurisdiction of the Teamsters Union will be covered
by the Hospital and Surgical benefits provided
under the Colorado Contractors Association Plan.
(2) Monies formerly paid into the Vacation Fund
will be added to the individual employee's hourly
rate of pay and paid directly to each eligible em-
ployee.
(3) Because a strike is in progress and because the
eligible employees are not covered by a labor agree-
ment, the individual employers will defer its propos-
al regarding deleting the Pension Plan provided for
in Article 26.
If a labor agreement is subsequently agreed to be-
tween the parties or any of the parties on or before
January 1, 1982, the above individual employers
agree to re-negotiate the Teamsters Western Con-
ference Pension Plan. This Plan will be in lieu of
the C.C.A. retirement plan or an individual I.R.A.
plan.
There was discussion between Darkey and the Union's
negotiators about the above-described employers' July 29
statement of position, but only insofar as the statement of
position related to Asphalt Paving Company whose
president was in attendance. The record is silent about
the nature of this discussion.
The meeting ended "with a discussion that [the parties]
were at an impasse" and the Federal mediator also stated
that in his opinion the parties were at an impasse and
that he saw no reason at that time to schedule another
meeting.
On July 31, 1981, another negotiation meeting took
place. The record does not reveal who, if anyone, other
than Darkey and Parker, was present for this meeting.
The meeting was arranged by Darkey for the purpose of
making it plain to the Union that the statement of posi-
tion given to the Union during the July 29, 1981 meeting
was not only the position of Asphalt Paving Company
but was the position of the other Asphalt Paving Compa-
nies, including Respondent, who Darkey represented in
the negotiations.
It is undisputed that there was general discussion be-
tween Darkey and Parker about the contractual issues
over which the parties were in dispute, and that the par-
ties were unable to narrow their differences.
The meeting ended as follows. Parker protested the
cessation by the employers of the various fringe benefit
payments on behalf of the employees which the employ-
ers had previously made to the fringe benefit trust funds
contained in the recently expired contract. Parker stated
to Darkey that it was the Union's position that the em-
ployers were obligated to continue making these pay-
ments until impasse was reached in negotiations and that
no impasse had been reached and warned Darkey that if
the employers had in fact ceased making such payments
to the trust funds that the Union would have to pursue
the matter acting on the advice of its lawyer. Darkey re-
plied by stating that the union's lawyer was ignorant of
the law, that if the Union pursued the matter in that
fashion that it would be very distasteful, and that the
Union had the employers' proposals, and had the option
of accepting the proposals or going to the Board and
filing unfair labor practice charges, or going straight to
hell. It was at this point that the meeting ended.' 0
Lastly before leaving these negotiations, I note that
the July 31, 1981 negotiation session was the last one be-
tween the Union and Respondent that occurred in the
context of the Asphalt Paving Group negotiations. I also
noted that it is undisputed that at no time during these
negotiations did the Union advance any counterproposals
to Respondent's proposals with respect to health and
welfare, wages, pension, or vacations. Also it is undis-
puted that from May 12 through July 31, 1981, that there
was no change in the Union's bargaining position in
these negotiations.
4. Respondent's conversations with the strikers
On June 18, 1981, as I have found supra, the Union
struck Respondent's Colorado Springs facility. All the
approximately 85 employees employed at that location,
who were represented by the Union, supported the
strike, thus forcing Respondent to shut down its Colora-
do Springs operation."" However, starting the first week
of July 1981 Respondent resumed operations at Colorado
Springs using a combination of striker replacements and
returning strikers.12 Previously, by letter dated June 28,
10 The description of how the meeting ended is based on Parker's testi-
mony that was given in a straightforward and sincere manner Darkey
did not specifically deny Parker's account, but only generally testified
that the Union did not ask that the employer discontinue the Colorado
Contractors Association health and welfare plan I have credited Parker's
above-described description because his testimonial demeanor was good
when he so testified, whereas Darkey failed to specifically deny his testi-
mony
l i Respondent's vice president and general manager, Prevost , testified
that he guessed that at the time of the Union 's June 18, 1981 strike there
were 50 to 60 union represented employees employed at the Colorado
Springs facility
Prevost's guess was incorrect
An examination of A.
Exh 7, the list of the union represented employees employed by Re-
spondent in the State of Colorado between June 1, 1981, and February 1,
1983, as interpreted by the parties' stipulation (Tr 21, LL 4-5), estab-
lishes that there were 73 strikers who returned to work at Colorado
Springs after the start of the strike
The record also reveals that there
were at least another 12 strikers, those alleged as discrimmatees , who did
not return to work Thus, Respondent employed at least 85 union repre-
sented employees at its Colorado Springs facility at the time of the June
18, 1981 strike
12 The Union has never ended the strike and asked Respondent to
recall those strikers who have not returned to work for Respondent.
However, there has been no picketing of the Respondent since July 23,
1982, when striker Frank Luckman ceased picketing Luckman , who was
retired and receiving social security, had been picketing the Colorado
Springs facility for the Union by himself for the 6-month period prior to
July 23, 1982
SCHMIDT-TIAGO CONSTRUCTION CO.
353
1981, Respondent's vice president and general manager
in charge of the Colorado Springs facility, Robert Pre-
vost, wrote the striking employees that it was Respond-
ent's intention to resume and continue its operations in
spite of the strike, and advised the strikers:
For those employees who wish to work and to
return to work, employment is available. If you
choose not to return to work, it will be necessary to
seek a permanent replacement for you. Needless to
say, if such a replacement is hired before you make
an offer to return to work, you will not have a job
with us at that time. The decision as to whether or
not to return to work is yours. If you decide to
return to work, we will put into effect our best, last
and final offer which we proposed to your union.
You have a right, which is guaranteed by law, to
return to your job without threats or coercion from
anyone for doing so. The Supreme Court has ruled
that if a striking employee resigns his or her mem-
bership in the Union, the employee can not be fined
by the Union for crossing the picket line.
Thereafter, on June 30, 1981, Prevost wrote the strikers
that "the decision has been made to resume operation
with our trucks on Monday, July 6, 1981 at 7:30 a.m. If
you do not return to work on the above date, you are
subject to being replaced immediately."
The General Counsel contends, as alleged in the com-
plaint, that during the course of the strike the Respond-
ent violated Section 8(axl), (3), and (5) of the Act by
making certain statements to striking employees. The
pertinent evidence, which is in dispute, is set forth and
the disputes resolved in this section.
a. Leslie Lynn Allison
Allison, a truckdriver for Respondent, supported the
June 18, 1981 strike and was a member of the Union. He
resigned from the Union by letter dated July 13, 1981,
and immediately thereafter crossed the picket line and
returned to work, at which time he showed Truck Fore-
man Duane Paradise the post office receipt from his
letter of resignation." These facts are not in dispute. In
dispute is whether Prevost told Allison and other strikers
that they had to resign from the Union in order to return
to work.
During the first week of the strike Allison met with
Prevost in the temporary office being used by Respond-
ent to interview striker replacements. Allison testified
that he asked Prevost "what was the deal for us to come
back to work" and that, in response, Prevost stated that
the strikers would receive the benefits contained in the
Respondent's last contract offer, that they would receive
an 80-cent-an-hour wage increase and would have health
insurance and vacation benefits and that Respondent
would try to implement a retirement plan that would
enable the employees to retain what they had vested in
the Union's retirement plan. Allison further testified that
18 Allison was not able to remember whether it was Prevost, Paradise,
or one of the strikers who told him to show Paradise proof of his resigna-
tion from the Union.
Prevost then stated, "we could not stay in the Union.
We'd have to resign from the Union to come back to
work," and explained to Allison that the Respondent's
lawyer had said that it was the employees' constitutional
right to resign from any organization at any time. Allison
testified that he responded by asking whether he could
take a withdrawal from the Union rather than resign,
and that Prevost, "no, we had to resign."
Shortly before returning to work, Allison with five
other strikers-Greg Nil], Gilbert Garbiso, Tommy Cor-
nell, Charles Crippen, and Don Waters-met with Pre-
vost in Prevost's office. Allison testified that one of them
asked Prevost, "what we had to do to come back to
work." Allison further testified that in response Prevost
stated that "we would have to resign from the Union to
come back," and that their jobs would remain open until
the following Monday morning, and that then there
would be "bodies" in the trucks. Allison testified that he
asked Prevost about his retirement benefits and that Pre-
vost told them that the company was working on imple-
menting a retirement plan for the employees.
Prevost did not deny meeting with Allison during the
first week of the strike, but testified that he did not tell
Allison that he would have to resign from the Union in
order to return to work. Prevost failed to testify about
what he did say to Allison when they met . Regarding his
meeting with Allison, Nill, Garbiso, Cornell, Crippen,
and Waters, Prevost testified that he recalled this meet-
ing but the only thing he could remember being said was
that Crippen asked a question about his union pension
that Prevost was not able to answer. Prevost testified
that he did not tell the employees at this meeting that
they had to resign from the Union in order to return to
work.
When Allison gave the above-described testimony his
demeanor was good, whereas, Prevost's testimonial de-
meanor was poor. I also note that there was no evidence
that Allison's interest were antagonistic toward Respond-
ent's or in sympathy with the strikers inasmuch as he re-
turned to work during the strike and was employed by
Respondent until August 26, 1983, when due to a physi-
cal injury he voluntarily left Respondent's employment.
As a matter of fact the record reveals that if Allison
bears any ill-will toward any of the parties to this pro-
ceeding, that it would be toward the Union because the
Union fined him $1000 for resigning and crossing the
picket line to return to work. It is for these reasons that I
have credited Allison's above-described testimony and
rejected Prevost's.
b. Jim Clementi
Clementi, a truckdriver for Respondent, supported the
June 18, 1981 strike and was ammember of the Union. His
supervisor was Duane Paradise, the Respondent's truck
foreman.
Clementi testified that approximately 2 days after the
strike he telephone Paradise and, after asking how Para-
dise was doing, Clementi testified, "I asked him if I was
going to be able to go back to work" and that "he [Para-
dise) told me yes . . . but the way it looks now, if you
want to get back you will have to drop out of the Union
354
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
to go back to work." Clementi further testified that Para-
dise told him he had approximately a week or a week
and a half to decide whether he wanted to return to
work and that if he decided not to return to work that
Paradise would find someone else to drive his truck.
Paradise testified that during the strike there never
was a conversation between himself and Clementi, let
alone a conversation between them about Clementi's re-
turning to work and further testified that he never told
Clementi that he ought to resign from the Union and
come back to work.
Clementi's testimonial demeanor was good when he
gave his above-described testimony, whereas Paradise's
was poor. It is for this reason that I have credited Cle-
menti's testimony and rejected Paradise's testimony.
c. Herman Chavez
Chavez, a truckdriver for Respondent, supported the
June 18, 1981 strike and was a member of the Union. As
described in detail below, Chavez testified that he met
on July 3, 1981, with Prevost in Prevost's office. Prevost
testified that no such meeting occurred and that other
than casually greeting Chavez in passing the only time
he spoke to Chavez during the strike was in Respond-
ent's parking lot in connection with an argument be-
tween Chavez and a striker replacement.
Chavez testified that on July 3, 1981, while on the
picket line he observed several strikers including John
Teeter leaving Prevost's office and he asked him what
Prevost was offering. According to Chavez, Teeter re-
plied that if he wanted to know that, Chavez would have
to go into Prevost's office himself. Teeter testified that
Chavez did not speak to him during the strike while on
the picket line and that Teeter did not, as Chavez testi-
fied, tell Chavez to talk with Prevost.
Chavez initially testified that when he entered Pre-
vost's office on July 3, "I just asked him what [Respond-
ent] was going to do" and Prevost answered, "they were
going to go non-union" and "that in order for me to con-
tinue working, I'd have to resign from the union, and I'd
have to have proof of resignation." Chavez further testi-
fied that he then asked Prevost what protection Re-
spondent would give him if he went nonunion and Pre-
vost told him that Respondent would have employment
benefits somewhat like the Union's. When asked to place
Prevost's resignation statement in its context, Chavez tes-
tified, "I asked him about the job-my job status" and
that Prevost replied, "I had a job as long as I would go
non-union, because they are going to go non-union." Up
to this point Chavez did not attribute any statement to
Prevost concerning Respondent's collective-bargaining
contract with the Union. Now when asked if anything
was said about a union contract, Chavez testified that
Prevost stated, "They weld not going to sign a contract
with the Union." When asked to place this statement in
its context, Chavez testified that Prevost made this state-
ment "when I asked him . . . if I went non-union what
my protection would be-I said what happens if you
sign with the Union. He said, `we're not going to sign
with the Union."'
During cross-examination, Chavez testified that when
he entered the office the first thing he stated to Prevost
about his job was, "What was going on," and in response
Prevost stated, "They were going to go to work without
the Union, but then testified that Prevost's words were
"without union membership." Chavez further testified
that Prevost's words were, "They were not going to sign
with the Union" and that in response Chavez asked what
protection he would have if he returned to work and Re-
spondent signed with the Union. Prevost, according to
Chavez, replied that Respondent was not going to sign
with the Union and Chavez could go to work for him if
he got a letter of resignation and presented proof of his
resignation. Later during cross-examination Chavez testi-
fied that in response to his inquiry about what protection
he would have if Respondent did sign a contract with
the Union, Prevost stated, "we are not going to sign
with the Union and in order for you to go to work you
have to have a resignation and proof of resignation."
Also during cross-examination Chavez testified that
Prevost told him that if he accepted Respondent's pro-
posal he would have the same employment benefits as
the office help and that Respondent was working on a
pension plan and if Chavez returned to work Respondent
would try to give him the same benefits that he would
have had with union representation.
I reject Chavez' aforesaid testimony that he met with
Prevost. Chavez' testimonial demeanor was poor. In ad-
dition, as described in detail supra, he gave several dif-
ferent accounts of what was stated about significant mat-
ters during the alleged meeting, and did not testify in a
straightforward manner, rather his testimony was charac-
terized by embellishments and internal inconsistencies.
Also his version of what prompted him to visit Prevost's
office is disputed by John Teeter who impressed me as a
credible witness. Lastly, Chavez' testimony that he inter-
rogated the last paragraph of Prevost's June 28, 1981
letter-"you have a right, which is guaranteed by law, to
return to your job without threats or coercion from
anyone for doing so. The Supreme Court has ruled that
if a striking employee resigns his or her membership in
the Union, the employee can not be fined by the Union
for crossing the picket line"-to mean that he had to
resign from the Union in order to return to work for Re-
spondent, indicates that Chavez was not a reliable wit-
ness. It is for all of these reasons that I am persuaded
that relatively speaking, Prevost was a more credible
witness. Accordingly, I have rejected Chavez' testimony
in its entirety.
d. Wayne Sell
Sell, who was employed by Respondent as a truck-
driver, supported the June 8, 1981 strike was a union
member. It is undisputed that during the second week of
the strike that a group of four of the striking employees,
which included Wayne Sell, Garry Eiferd, and Dick
Conrad went into Prevost's office to speak with Prevost.
In dispute is what was stated during this meeting.
Sell testified that one of the employees in the group
told Prevost, "We come in just to-more or less to find
out what was going on" and in response, Prevost stated
"They were going to resume work, and if he wanted to
come back to work, we had to resign from the Union
SCHMIDT-TIAGO CONSTRUCTION CO.
355
and have a receipt of resignation, and then we could go
back to work." On hearing this Sell testified that he
turned around and walked out of the office leaving the
others there.
Prevost testified that he did not say to the employees
who were present at this meeting that they had to resign
from the Union in order to return to work or mention
anything to them about showing proof of such a resigna-
tion. Rather Prevost testified that the employees "wanted
to know how they went about going to work" and what
Respondent had to offer them and what was going to
happen about their pension money and their health and
welfare benefits and that, in response, Prevost talked to
them about Respondent's May 12, 1981, "Best, Last and
Final Offer."
Sell's testimonial demeanor when he gave the aforesaid
testimony was good, whereas, Prevost's was poor. I
therefore credit Sell's and reject Prevost's testimony.
e. Arthur Brautigam, Paul Forsett, and Edward Mayo
On July 10, 1981, at approximately
11 a.m. strikers
Arthur Brautigam, Paul Forsett, Edward Mayo, and
Clem Leyba initiated a meeting with Respondent's vice
president and general manager, Prevost, in Prevost's
office that lasted for approximately 20 minutes. Also
present during this meeting was Respondent's truck fore-
man Duane Paradise.14 It is undisputed that during this
meeting that the subject of the strikers resigning from
the Union was brought up and discussed and that the
strikers
asked Prevost how Respondent intended to
handle their fringe benefits such as health and welfare
and pension benefits if they decided to return to work.
Otherwise everything of significance that took place
during this meeting is disputed. Brautigam, Forsett, and
Mayo testified for the General Counsel and Prevost and
Paradise on behalf of Respondent. An examination of
their testimony follows.
Brautigam testified that he asked about the require-
ments for himself and the other three strikers to return to
work and specifically asked whether they would have to
resign from the Union in order to return to work for Re-
spondent. Prevost answered "yes" and stated that in
order to return to work they would have to send a letter
of resignation to the Union by certified mail and provide
proof to Respondent that they had resigned. Brautigam
asked what his guarantee of being employed by Re-
spondent would be, if in fact he went ahead and resigned
from the Union. Prevost stated that Brautigam would
have to trust him. Brautigam further testified that he
asked what the employees fringe benefits such as medical
insurance, pensions, and vacations would be if they re-
turned to work. With respect to pensions, Prevost stated
that the Company would set up a pension plan for the
employees and that the Government would transfer the
striker's money from the Union's plan into the Compa-
ny's plan. Lastly, Brautigam testified that Forsett and
14 Brautigam, Forsett, and Mayo each placed Paradise at this meeting
Paradise testified that he walked in during the middle of the meeting and
only stayed 4 or 5 minutes Prevost did not corroborate Paradise' s testi-
mony.
Mayo also questioned Prevost about the strikers' wages
and fringe benefits if they returned to work.
Mayo testified that Forsett asked what would be re-
quired of the four strikers if they wanted to return to
work and Prevost replied by stating that they would
have to resign from the Union and show proof of their
resignations in order to work. Mayo then testified that
either himself or Brautigam asked whether they would
have a pension plan if they returned to work and that
Prevost stated that he would try to get a pension plan
for the employees that was the same as the office work-
ers pension plan. At this point, according to Mayo, Pre-
vost stated that he would never sign a contract with the
Union again under any circumstances. Mayo also testi-
fied that he and Forsett discussed the subject of health
and welfare benefits with Prevost, and that Prevost told
them that he was going to try to work something out
with the Union about having the funds from the existing
plan transferred. Finally Mayo testified that in the con-
text of Brautigam's statement that he felt Truck Foreman
Paradise had been picking on him unnecessarily during
his last few weeks of employment before the strike, that
they asked Prevost whether it might not be a good idea
to have a union to serve as a "buffer" between the em-
ployees and the employer and that Prevost stated that he
did not think the Company needed such a "buffer."
Forsett testified that Brautigam asked what the four
strikers would have to do if they chose to return to work
for Respondent and Prevost replied by stating that in
order to return to work they would have to resign from
the Union and that Prevost would accept a post office
receipt showing that they had mailed the resignation let-
ters as proof of their resignation. Also, according to For-
sett, Prevost stated that Respondent was not going to
sign a contract with the Union at that time and was
never going to sign a contract with the Union. On the
question of what, if any, pension plan strikers would
have if they returned to work, Forsett testified that Pre-
vost told them that while he had not yet discussed the
matter with the Union, he would attempt to absorb the
pension contributions made on behalf of the strikers to
the Union's plan into a pension plan instituted by the
Company. On the subject of health and welfare, Forsett
testified that Prevost stated that he intended to try to get
group insurance plan coverage for the employees
through the Company. In response to Forsett's questions,
Prevost stated that the employees' vacation and overtime
benefits would remain the same as they were before the
strike, but he intended to pay the strikers an 80-cent-an-
hour increase, which was the Company's last offer to the
Union, if they returned to work. In response to Forsett's
inquiry about what Prevost intended to pay the striker
replacements if the strikers did not return to work, Pre-
vost stated that he intended to pay the striker replace-
ments $2 an hour less than the strikers who cross the
picket line, but in response to Forsett's further question-
ing advised Forsett that in order to avoid hard feelings
on the part of the striker replacements over this disparate
treatment that Respondent would eventually reduce the
wages of the returning strikers to the level of the striker
replacements. Last, Forsett testified that Brautigam asked
356
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
Prevost about the job protection, as he explained that he
felt that Truck Foreman Paradise during the weeks im-
mediately prior to the strike had been picking on him un-
necessarily. Prevost replied by stating that he would
back his foreman and that he did not want to see the
Union come between the bosses and the employees.
Prevost testified that the strikers at the July 10, 1981
meeting, "all wanted to know what to do," and "they
asked about the pension, how we were going to handle
it, the health and welfare, the vacation, et cetera," and
that Prevost responding by "explain[ing] that to them
from our best, last, final offer" of May 12, 1981.15 Pre-
vost also testified that the strikers "asked about resigna-
tion" and when asked "what did they say about resigna-
tion," testified that this question was asked by the strik-
ers in the context of "what they had to do to go to
work." Prevost further testified that he did not tell them
that they had to resign in order to return to work, but
that in response to their questions concerning resignation
he told them that he had heard rumors that other strikers
who already returned to work had resigned from the
Union.
Paradise testified that the meeting was already in
progress when he entered Prevost's office and he stayed
for only 3 or 4 minutes and left while the meeting was
still in progress. He did not recall anyone asking or
bringing up the topic of coming back to work or that
Prevost said anything about resigning from the Union.
Paradise admitted that he was not able to recall anything
that he heard during the period he was present in the
office.
Of the five witnesses who testified about the July 10,
1981
meeting, the testimonial demeanor of Forsett,
Mayo, and Brautigam was good, whereas, Prevost's and
Paradise's was poor. I therefore credit Forsett's, Mayo's,
and Brautigam's above-described testimony and reject
Prevost's and Paradise's wherever there is a conflict. In
evaluating the credibility of Forsett, Mayo, and Brauti-
gam I have especially considered the following: their
status as interested witnesses; the variance in the exact
words that they attribute to as well as the chronology in
which the subjects were discussed; that with respect to
certain matters their corroboration of one another was
skimpy;16 that Brautigam failed to corroborate Forsett's
and Mayo's testimony that Prevost stated Respondent
would never sign a contract with the Union;17 that
15 Prevost's testimony that in answer to the strikers questions concern-
ing what their fringe benefits would be if they returned to work that he
told them that he would grant them Respondent's May 12, 1981, last,
best, final contract proposal, is inherently incredible because it is undis-
puted that insofar as the employees health and welfare and pension bene-
fits were concerned, that the Respondent by July 10, 1981 , had disregard-
ed its last, best, final contract offer that had provided for the Union's ex-
isting health and welfare and pension plans and instead had instituted a
new health and welfare program and had eliminated the employees' pen-
sion plan without substituting a new one
i 6 Although in certain respects Forsett's, Mayo, and Brautigam's cor-
roboration of each others testimony was skimpy, the testimony of anyone
of them did not contradict the testimony of the others and with respect
to matters of significance their testimony was mutually consistent
11 I note that Prevost did not deny Mayo's and Forsett's testimony
that he stated that Respondent would never sign a contract with the
Union.
Mayo and Forsett disagreed about whether it was Brauti-
gam or Forsett who brought up the subject of resigna-
tion; that all three admitted that Prevost's letter of June
28, 1981, to the strikers raised a question in their minds
of whether they would have to resign from the Union in
order to return to work; and that strikers John Teeter
and Glen Schroeder who returned to work after resign-
ing from the Union, testified in effect that neither Pre-
vost nor Paradise told them that they had to resign in
order to return to work.' 8 Nonetheless I am of the opin-
ion that these circumstances, whether viewed singly or
in their totality, do not warrant the rejection of the testi-
mony of Forsett, Mayo, or Brautigam as being incredible
when as here in terms of their testimonial demeanor each
one of them seemed to be sincere and conscientious wit-
nesses, whereas, Prevost's and Paradise's demeanor was
poor.
Based on a composite of Mayo's, Forsett' s, and Brauti-
gam's testimony concerning their July 10,
1981 meeting
with Prevost and the portion of Prevost's testimony that
is not inconsistent with their testimony, I find that the
following took place at this meeting . In response to the
questions of the strikers about what conditions would be
like if they decided to return to work, Prevost stated
that in order to return to work Mayo, Forsett , Brauti-
gam, and Leyba would have to resign from the Union
and submit proof of their resignations and that the Re-
spondent would never sign a contract with the Union,
but if they decided to return to work Respondent would
try to do the following: establish a pension plan for the
employees that would be the same as the pension plan
that now covered the Respondent's office workers and
while it had not as yet discussed this with the Union the
Respondent would attempt to have the contributions that
had previously been made on the strikers behalf to the
Union's plan transferred into the Company's plan; Re-
spondent would try to establish a company health and
welfare program to cover the employees and try to work
out something with the Union about transferring funds
from the plan that had previously covered the employ-
ees; that overtime benefits and vacation benefits would
remain the same as they were before the strike; that the
stnkers would be granted an 80-cent-an-hour pay raise,
which was the Company 's last offer to the Union, while
the striker replacements would be paid $2 less an hour
than the strikers, but that the Company at a later date
might reduce the strikers' wages to the level of the strik-
er replacements' in order to avoid any hard feelings by
the striker replacements over this disparate treatment.
Last, when one of the striking employees suggested that
union representation was a good thing because it served
as a "buffer" between supervisors and the employees so
as to protect employees from unjustified discipline by su-
pervisors, Prevost stated that he did not feel the Compa-
ny needed such a "buffer" and that he did not want to
see the Union come between supervisors and the em-
ployees.
18 Likewise in evaluating the credibility of Forsett, Mayo, and Brauti-
gam I have not relied on the fact that other strikers corroborated their
testimony by testifying that either Prevost or Paradise told them that
they had to resign from the Union in order to return to work.
SCHMIDT-TIAGO CONSTRUCTION CO.
357
f. Donnie Burrell, Charles Trafton Jr., and James
Machak
Following their July 10, 1981 above-described meeting
with Prevost, strikers Forsett, Brautigam, Mayo, and
Leyba went back outside to the picket line and spoke to
the approximately six other strikers who were there.
They informed these other strikers that Prevost had told
them that in order to return to work that Forsett, Brauti-
gam, Mayo, and Leyba would have to resign from the
Union. Among the other strikers on the picket line to
whom they told this were Donnie Burrell, Charles Traf-
ton Jr., and James Machak, each of whom was a member
of the Union. Trafton responded by saying that he would
not resign from the Union and Burrell responded by
saying that he could not afford to resign from the Union
because he would lose certain union retirement benefits
and that he would have to go to work for a union con-
tractor. 19
The next day, July 11, 1981, Machak on his way home
from picket line duty met Truck Foreman Duane Para-
dise
at a truckstop where they ate lunch together.
During the course of their conversation, Paradise, who
was
Machak's supervisor, told
Machak that unless
Machak by Friday of the next week resigned from the
Union and showed Respondent some kind of proof of his
resignation, Machak would not have his truck because
Paradise would give it to a new driver. Machak respond-
ed by stating that he could not afford to give up the
Union because he had too much time in the Union's pen-
sion fund to give it up.
Machak's above-described conversation
with Truck
Foreman Paradise is based on Machak's testimony. Para-
dise denied eating lunch or talking with Machak at a
truckstop after the start of the strike and denied that he
ever told or suggested to Machak that he resign from the
Union. I have credited Machak's and rejected Paradise's
testimony because Machak's demeanor was good, where-
as Paradise's was poor. I have carefully considered Ma-
chak's testimony that he understood that the last para-
graph in Prevost's June 28, 1981 letter to the strikers
"meant that I would have to give up my union card to
keep working." However, Machak's misinterpretation of
this letter does not, in my opinion, impugn his testimony
concerning his conversation with Paradise where, as
here,
Paradise's testimonial demeanor in denying the
conversation was poor and Machak's testimonial demean-
or in describing the conversation was that of a sincere
and conscientious witness.
g. William Hall
William Hall was employed by Respondent at the time
of the strike as a truckdriver. He was a member of the
Union and initially supported the strike. However, on
Friday, July 17, 1981, he wrote the Union a registered
letter submitting his resignation and the next workday,
Monday, July 20, 1981, crossed the picket line and re-
turned to work. The circumstances surrounding Hall's
19 Neither Trafton nor Burrell ever offered to return to work for Re-
spondent During cross-examination, when asked why he never offered to
return to work for Respondent, Trafton testified, "[b]ecause I would not
resign from the Union "
resignation from the Union and his return from work are
as follows.
On July 17, 1981, Hall spoke to Respondent's vice
president and general manager, Robert Prevost, in the
Company's reception room and asked what he would
have to do to return to work. Prevost instructed him to
speak to Repondent's truck foreman Duane Paradise.20
Hall immediately went to Paradise's office and in the
presence of a couple of drivers asked Paradise what he
would have to do in order to go back to work. Paradise
told him that he would have to send a registered letter of
resignation to the Union and show Paradise the postal re-
ceipt from this letter before Paradise would put him back
to work. Hall stated that this was okay with him and
asked if he resigned and crossed the picket line would
the Union be able to take disciplinary action against him.
Paradise answered in the negative. The following work-
day, after sending his July 17, 1981 letter of resignation
to the Union, Hall reported to Paradise for work at
which time he showed Paradise the postal receipt from
his letter of resignation and Paradise assigned him a
truck to drive.
The above description of Hall's conversation with Par-
adise and what took place when Hall returned to work is
based on Hall's testimony. Paradise denies ever speaking
to Hall in his office after the start of the strike or that
Paradise ever told Hall to resign and denies that Hall
showed him any sort of document indicating he had re-
signed from the Union when Hall returned to work.
Rather, Paradise testified that when hall returned to
work that he merely asked, "what truck do I take?" and
that Paradise assigned him a truck.
I credit Hall's above-described testimony and reject
Paradise's because when Hall testified his demeanor was
good, whereas, Paradise's was poor.
5. The no-solicitation rule
During the time material to this case a memo dated
February 4, 1982, signed by Respondent's vice president
and general manager, Robert Prevost, was posted at the
Respondent's Colorado Springs facility for the employ-
ees to read. This memo read as follows:
SCHMIDT-TIAGO CONSTRUCTION CO.
MEMO-DATE February 4, 1982
TO: All personnel including hourly
FROM : Robert R. Prevost, Vice President
SUBJECT: Talking or visiting to anyone other than
employees during working hours
TO ALL EMPLOYEES:
Our company policy allows no salaried or hourly
employees who are on the payroll to converse,
visit, etc., etc. with anyone other than job related
functions
during
business
hours.
This includes
friends, associates, union officials, or anyone else
who is not on our company payroll. All conversa-
tions will be conducted by employees on thier own
20 The above-described description of Hall's conversation with Prevost
is based on the undemed testimony of Hall.
358
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
time at lunch or before or after working hours, off
the premise of the job, pit, yard or in travel with
material to the job, pit, yard, etc., etc.
Violation to this will cause for immediate repri-
mand or discharge if this violation continues.
The policy set forth in the memo was placed in effect by
Respondent several years prior to the February 4, 1982
and was in effect at all times material to this case.
6. Alleged denial of access to the Union to
Respondent's premises
Article 12, the "Job Admission" provision, of the
1978-1981 Union Heavy Highway Contract that covered
Respondent's Colorado Springs facility until it expired
on May 1, 1981, reads as follows:
The Employer and the contractor shall not restrict
and will assist representatives of the Union to gain
access to all jobs where employees covered by this
Agreement are employed or where work is covered
by this Agreement is being performed, but the rep-
resentatives of the Union shall not cause any unnec-
essary interference with the work and shall comply
with safety and security regulations to the same
extent as required of any employees on the job. The
Union Representative shall identify himself to the
Contractor's Representative when the Union Repre-
sentative first appears on the job site.
On February 4, 1983, George Delmonte, a union busi-
ness agent, telephoned Respondent's vice president and
general manager, Robert Prevost, and told him that he
had been advised by the Union's lawyer that even
though the Union's contract with the Respondent had
expired the terms of the expired contract, other than the
union-security provision, could be enforced. Delmonte
told Prevost that from time to time there could be a
union business agent visiting Respondent's jobs to con-
duct a "job check." Prevost asked what Delmonte meant
by a "job check." Delmonte explained that the business
agents would check to see whether there were any em-
ployees with grievances and that the correct employees
were doing the correct jobs, i.e., that the operating engi-
neers were not doing teamsters' work. Prevost asked
whether Delmonte intended to stop any of Respondent's
trucks. Delmonte told him that he would not stop the
Company's trucks or otherwise interfere with the em-
ployees' production, but that, as was the practice in the
past, the union business agent visiting a jobsite would
only speak to employees during lunch hour or while the
employees were waiting in line for their trucks to be
loaded or weighed. The conversation then ended with
Prevost stating, "if any unauthorized people showed up
on any of his projects, he would call the police and have
them put in jail."2 i
21 The description of Delmonte's February 4, 1983 telephone conver-
sation with Prevost is based on Delmonte's testimony . I have rejected
Prevost's version of this conversation that differs from Delmonte's be-
Delmonte testified that if a union business agent went
to one of Respondent's jobsites and visited employees
before first identifying himself to a representative of the
Company, the business agent would be considered "an
unauthorized visitor" under the terms of article 12 of the
1978-1981 Union Heavy Highway Contract. Delmonte
also testified that prior to the strike he was informed by
Respondent's truck foreman Duane Paradise that Prevost
was unhappy with Delmonte because Delmonte had
been visting employees at the Colorado Springs facility
before first identifying himself to a representative of the
Company at the Company's main office.
B. Conclusionary Findings and Analysis
1. The independent 8(a)(1) allegations
The complaint alleges that at various times after the
start of the June 18, 1981 strike Robert Prevost, the Re-
spondent's vice president and general manager in charge
of Respondent's Colorado Springs facility, and Duane
Paradise, the truck foreman at that facility,22 told strik-
ing employees that in order for them to return to work
they would have to resign from the Union and show Re-
spondent proof of their resignation, and that Respondent
by engaging in this conduct violated Section 8(a)(1) of
the Act. In support of these allegations , as described in
detail supra, the General Counsel presented the follow-
ing credible evidence : During the first week of the strike
Prevost told striker Leslie Allison that in order to return
to work the strikers could not stay in the Union but
would have to resign; during the week of July 6, 1981,
Prevost met with strikers Leslie Allison, Greg Nill, Gil-
bert
Garbiso,
Tommy Cornell ,
Charles Crippen, and
Don Waters and told them that they would have to
resign from the Union in order to return to work; about
June 20, 1981, Paradise told striker Jim Clementi that if
he wanted to get back to work with Respondent he
would have to drop out of the Union; during the second
week of the strike Prevost met with striking employees
Wayne Sell, Garry Eiferd, and Dick Conrad and told
them if they wanted to return to work for Respondent
they had to resign from the Union and show Respondent
proof of resignation; on July 10, 1981, Prevost met with
strikers Arthur Brautigam , Paul Forsett, Edward Mayo,
and Clem Leyba and told them in order to return to
work they would have to resign from the Union and
submit to Respondent proof of their resignation ; on July
11, 1981, Paradise told striker James Machak that unless
Machak resigned from the Union and showed Respond-
ent proof of this resignation Respondent would not rein-
state him; on July 17, 1981, Paradise told striker William
Hall that in order to return that Hall would have to
resign from the Union and show Paradise proof of his
resignation. By engaging in the aforesaid conduct-tell-
ing striking employees that if they wanted to return to
work they would have to resign from the Union-Re-
spondent violated Section 8(a)(1) of the Act . Randle-
Eastern Ambulance Service, 230 NLRB 542 fn. 2 (1977).
cause Prevost's testimonial demeanor was poor, whereas, Delmonte's was
22 Prevost and Paradise are admitted statutory supervisors and agents
good.
of Respondent
SCHMIDT-TIAGO CONSTRUCTION CO
359
The complaint alleges that on July 10, 1981, Respond-
ent violated Section 8(a)(1) of the Act when Prevost told
striking employees that Respondent would never sign a
contract with the Union. As described in detail supra, on
July 10, 1981, when Prevost met With striking employees
Brautigam, Forsett, Mayo, and Leyba, besides informing
them that they would have to resign from the Union in
order to return to work, Prevost also told that that Re-
spondent would never sign a contract with the Union.
By engaging in this conduct-telling
employees
Re-
spondent would never sign a contract with the Union-
Respondent violated Section 8(a)(1) of the Act. El
Rancho Market, 235 NLRB 468, 471-472 fn. 18 and cases
cited therein (1978).
The complaint alleges that Respondent's posted rule
dated February 4, 1982, entitled "Talking or visiting to
anyone other than employees during working hours," set
forth in detail supra, constitutes an overly broad no-solic-
itation rule that violated Section 8(a)(1) of the Act.23 I
disagree. On its face the rule unambiguously prohibits
employees from talking or visiting only with
nonem-
ployees on the Company's premises. Thus the caption of
the rule expressly informs employees that it deals with
the subject of "talking or visiting to anyone other than
employees during working hours," and, in explaining its
application, the rule limits its application to those persons
"who [are] not on our company payroll" and instructs
employees that they can talk with these nonemployees
on their own time at lunch or before or after working
hours off the premises of their jiobs. Because the rule
merely prohibits employees from visiting or talking with
nonemployees on the Company's premises or jobsites and
there is no showing that it has been discriminatorily ap-
plied, it is not proscribed by the Act. I therefore shall
recommend that this allegation be dismissed.
2. The 8(a)(5) and (1) allegations involving
Respondent's Colorado Springs facility
a. The collateral estoppel issue
As described in detail supra, when Respondent during
the first week of July 1981 resumed operating its Colora-
do Springs facility, it changed certain terms and condi-
tions of employment at that location. The complaint
herein alleges that these changes in the employees' terms
and conditions of employment violated Section 8(a)(5)
and (1) of the Act because they were made unilaterally
without affording the Union an opportunity to bargain.
As discussed infra, Respondent's defense to these allega-
tions is based in substantial part on what occurred during
the Respondent's negotiations with the Union for its Col-
orado Springs operation as a part of the Asphalt Paving
Group of employers. The General Counsel, invoking the
doctrine of collateral estoppel,24 argues that the Board's
23 There is no evidence to support the complaint's allegation that this
rule was not promulgated until February 4, 1983.
24 "Under collateral estoppel, once a court has decided an issue of fact
or law necessary to its judgment, that decision may preclude rehtigation
of the issue in a suit on a different cause of action involving a party to
the first issue." Allen v. McCurry, 449 U S . 90, 94 ( 1980). Generally speak-
ing the doctrine of collateral estoppel may be applied only if all the fol-
lowing questions are answered in the affirmative: "Whether the issue
Decision and Order in Cases 27-CA-7369 and 27-CA-
7369-225 precludes Respondent from raising this defense
because the Board in those cases concluded that Re-
spondent, as a part of the multiemployer bargaining unit
represented by the SLC, was legally obligated to bargain
with the Union for all of its employees, including those
employees employed at the Colorado Springs operation.
The complaint in Cases 27-CA-7369 and 27-CA-
7369-2 alleged and the Board concluded that the SLC
was the agent of the 25 respondent employers, including
Respondent, for the purpose of negotiating a successor
agreement to the 1978-1981 Union Heavy Highway
Contract, that the employees of the respondent employ-
ers in the job classifications covered by that agreement
constituted
an appropriate
multiemployer
bargaining
unit, that the employees were represented by the Union,
and that in June 1981 the respondent employers and their
agent, the SLC, violated Section 8(a)(5) and (1) of the
Act by "(a) conditioning further contract negotiations
with the union on the union's consent to the untimely
withdrawal of certain respondent-employers from the
multiemployer bargaining unit" and by "(b) disbanding
the respondent-employers from the multiemployer unit,
and by failing and refusing to meet and bargain with the
union as a multiemployer bargaining unit."
My analysis of the complaint, the answer, and the
Board's Decision and Order in Cases 27-CA-7369 and
27-CA-7369-2 persuades me that the unit issue involved
in those cases was whether the employees of the re-
spondent employers employed in the job classifications
covered by the 1978-1981 Union Heavy Highway Con-
tract constituted an appropriate multiemployer bargain-
ing unit. The issue of whether all or part of the respond-
ent employers' business operations were a part of that
multiemployer unit was not posed by the pleadings nor
litigated. The parties' attention in that proceeding was
not focused on whether all or part of the business oper-
ations of the respondent employers was a part of the
multiemployer unit. Insofar as the Board's conclusion
that the employees of the respondent employers em-
ployed in the job classifications covered by the 1978-
1981 Union Heavy Highway Contract constituted an ap-
propriate bargaining unit implies that all of the respond-
ent employers operations were included within the ap-
propriate unit, such a finding was not necessary to the
Board's Decision and Order. All that was necessary for
the Board's Decision and Order, with respect to the ap-
propriate bargaining unit, was a finding that the respond-
ent employers were obligated to bargain with the Union
as a multiemployer unit represented by the SLC for
those employees whose job classifications were covered
by the 1978-1981 Union Heavy Highway Contract. The
scope of that unit-whether it consisted of all or a part
of the employer's operations-was not necessary to the
Board's decision. The Board's Decision was not depend-
sought to be concluded is the same as that involved in the prior action,
was litigated in the prior action; was in fact judicially determined in the
prior action; and whether the judgement in the prior action was depend-
ent upon the determination made of the issue " lB Moore's Federal Prac-
tice, Par. 0.443(1), pp. 759-760 (2d ed. 1983).
as Signatory Labor Committee, 261 NLRB 1459 ( 1982).
360
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
ent on a determination of the exact scope of the multiem-
ployer unit, whether all or only some of the respondent
employers' operations were included in that unit, and this
issue was neither posed by the pleadings nor litigated. It
is for this issue that I find that the Board's Decision and
Order in Cases 27-CA-7369 and 27-CA-7369-2 does not
preclude Respondent from relying on its negotiations
with the Union as a part of the Asphalt Paving Group of
employer as a defense to its alleged illegal unilateral
changes made at its Colorado Springs operation.26
b. Whether the Union consented to bargain for
Respondent's Colorado Springs facility employees as a
part of the Asphalt Paving Group negotiations
The complaint alleges that when Respondent resumed
operating its Colorado Springs facility in the first week
of July 1981, it instituted certain changes in the terms
and conditions of employment of the employees at that
facility without bargaining with the Union, thus violating
Section 8(a)(5) and (1) of the Act. Respondent's defense
to these allegations is based for the most part on its ne-
gotiations with the Union for the Colorado Springs facil-
ity as a part of the Asphalt Paving Group. The General
Counsel takes the position that when the Asphalt Paving
Group negotiations started on April 1, 1981, that Re-
spondent's Colorado Springs facility was a part of the
multiemployer unit represented by the SLC and that the
record fails to establish the Union's "clear and unequivo-
cal consent" to bargain with Respondent for the Colora-
do Springs facility in the Asphalt Paving Group negotia-
tions. The Respondent during the hearing and in its
posthearing brief conceded that its Colorado Springs fa-
cility was still a part of the multiemployer unit represent-
ed by the SLC at the commencement of the Asphalt
Paving Group negotiations, but that the Union by its
conduct during those negotiations consented to the with-
drawal of the Colorado Springs facility from the multi-
employer unit represented by the SLC and consented to
negotiate with Respondent for that facility in the Asphalt
Paving Group negotiations.27 I am persuaded, for the
reasons set forth hereinafter, that during the time materi-
al to this case, the Union and the Respondent mutually
agreed to the withdrawal of Respondent's Colorado
Springs operation from the multiemployer unit represent-
ed by the SLC and to negotiate a separate agreement
covering the Respondent's Colorado Springs employees.
As described in detail supra, from April 1, 1981, until
June 12, 1981, the Union negotiated without objection
with Respondent's collective-bargaining agent Darkey,
on behalf of the employees represented by the Union em-
ployed at the Respondent's Colorado Springs facility.28
96 Lehigh Lumber Co., 238 NLRB 675 (1978), relied on by the General
Counsel, is factually distinguishable from the instant proceeding in signifi-
cant respects.
$'i "At the outset, the Respondent concedes the Union's consent was
necessary for the proper withdrawal of its Colorado Springs operation
from the SLC bargaining and its proper inclusion in the Asphalt Paving
Industry Group negotiations Respondent 's position, quite simply, is the
Union did consent." (R Br. 22)
28 The Union's negotiator Parker at the start of the negotiations on
April 1, 1981, stated to Darkey that he did not understand why Respond-
ent was present in the Asphalt Paving Group negotiations because Re-
spondent was represented "by the SLC as well " However, when Darkey
It was not until June 12, 1981, that for the first time a
representative of the Union told a representative of the
Respondent that the Colorado Springs facility was a part
of the SLC multiemployer bargaining unit for purposes
of collective-bargaining negotiations.29
During this 2-
1/2-month period, as described in detail supra, the Union
knew that it was Darkey's position that he was negotiat-
ing on behalf of Respondent for its Colorado Springs fa-
cility. Also during this period the Union's negotiators ob-
served that Respondent's vice president and general man-
ager,
Prevost, who was in charge of the Colorado
Springs facility, was present at the negotiating meetings,
yet at no time did the Union's negotiators expressly or
by implication take the position that Respondent's Colo-
rado Springs facility was not a part of these negotia-
tions.90 It was only after the Union's negotiations with
the Respondent, as part of the Asphalt Paving Group,
had reached an impasse, as I have found infra, that the
Union on June 12, 1981, for the first time indicated to
Respondent that it was the Union's position that the Col-
orado Springs facility was still a part of the SLC-repre-
sented unit. In other words, after bargaining for several
weeks with Darkey in the Asphalt Paving Group negoti-
ations for a contract to cover Respondent's Colorado
Springs employees in a unit separate from Respondent's
other employees, the Union objected to the severance of
this facility from the rest of Respondent's operations
only after the Asphalt Paving Group negotiations had
proved to be unsuccessful and resulted in a bargaining
impasse. Under the circumstances, the Union's change of
heart was untimely.
In any event the record reveals that despite the
Union's June 12, 1981 objection and its June 23, 1981
replied that he only knew that he had been instructed that Respondent
was one of the employers on whose behalf he was negotiating, Parker
dropped the matter and did not object Indeed, later during the meeting
when Darkey and Parker discussed and identified the portions of the em-
ployers' businesses which were going to be covered by the Asphalt
Paving Group negotiations, Parker asked whether Respondent's Craig,
Colorado facility was included in the negotiations and Darkey replied
that only Respondent's Colorado Springs facility would be included.
29 As described supra, on June 12, 1981, at a negotiating meeting be-
tween the Union and the SLC for a successor agreement to the 1978-
1981 Union Heavy Highway Contract, in response to Respondent's insist-
ence that the Colorado Springs facility be excluded from the SLC negoti-
ations, a representative of the Union told a representative of the Re-
spondent that it was the Union's position that the Colorado Springs facili-
ty was a part of the SLC-represented multiemployer bargaining unit.
Thereafter, on June 23, 1981, the Union filed its unfair labor practice
charge in Case 27-CA-7371 against Respondent that reiterated this posi-
tion.
so Parker testified that the reason he continued to meet with Darkey
despite the fact that Darkey stated he was bargaining on behalf of Re-
spondent's Colorado Springs facility was because Parker felt that it was
important to the Union to bargain with those other employers being rep-
resented by Darkey who were properly members of the Asphalt Paving
Group. This, however, does not explain why Parker did not object to
Prevost's presence during the negotiations or otherwise inform Darkey
that the Union's negotiation meetings with him should not be construed
as an agreement to negotiate on behalf of Respondent's Colorado Springs
facility Moreover, Parker's July 23, 1981 affidavit, in which Parker in-
formed the Board's General Counsel that Respondent was one of the em-
ployers represented by Darkey in the Asphalt Paving Group negotiations
and that the Union prior to July 23, 1981, had been negotiating with Re-
spondent as a part of that group and intended to continue these negotia-
tions with Respondent in the future, contradicts Parker's above-described
testimony.
SCHMIDT-TIAGO CONSTRUCTION CO.
361
unfair labor practice charge against Respondent, that the
Union continued to negotiate with the Respondent as a
part of the Asphalt Paving Group for a contract cover-
ing only Respondent's Colorado Springs facility. On
June 18, 1981, in support of its bargaining position in the
Asphalt Paving Group negotiations, the Union struck all
the employers who were being represented by Darkey in
those
negotiations, including
Respondent's
Colorado
Springs facility. The Union did not strike any of Re-
spondent's other locations where the Union represented
employees, nor were any of the other employers in the
SLC multiemployer unit struck. This conduct warrants
an inference that the Union as of June 18, 1981, 6 days
after its objection to Respondent's withdrawal of the
Colorado Springs facility from the SLC negotiations,
was still intent on reaching an agreement on a contract
with
Respondent
covering
Respondent's
Colorado
Springs facility. Thereafter, when negotiations resumed
in the Asphalt Paving Group on July 23, 1981, Parker
did not object, when Darkey, on behalf of the Asphalt
Paving Group of employers, handed Parker a contract
proposal which on its face stated that it was being of-
fered on behalf of Respondent. Parker not only failed to
object to Darkey's bargaining on behalf of Respondent,
but in an affidavit submitted on July 23, 1981, in connec-
tion with the charges filed in this case, Parker stated that
Respondent was one of the employers being represented
by Darkey in the Asphalt Paving Group negotiations
and that the Union prior to July 23 had been negotiating
with Respondent as a part of that group and intended to
continue these negotiations with Respondent. Consistent
with this statement in his July 23 affidavit, Parker at the
next Asphalt Paving Group negotiation meetings of July
29 and July 31, 1981, did not object when Darkey sub-
mitted contract proposals on behalf of Respondent. Quite
the opposite during the July 31, 1981 meeting, Parker
gave Darkey a letter that, in pertinent part, asked for in-
formation concerning the benefit plans that had been im-
plemented or were going to be implemented by Re-
spondent so that the Union, as the letter stated, could
bargain intelligently with Respondent.
It is for the foregoing reasons that I am persuaded that
during the times material to this case, that the Union
clearly and unequivocally consented to the withdrawal
of the Respondent's Colorado Springs facility from the
multiemployer bargaining unit represented by the SLC
and consented to the negotiation of a separate agreement
covering these employees. 3 i By engaging in this con-
duct, I further find that during the times material to this
case, that the Union and Respondent mutually agreed to
negotiate a contract to cover the employees represented
by the Union employed at the Respondent's Colorado
Springs facility separate and apart from the union-repre-
sented employees employed at Respondent's other loca-
tions.
c. The impasse issue
Respondent takes the position that negotiations be-
tween the Union and Respondent for a contract to cover
the union-represented employees at Respondent's Colora-
do Springs facility were at an impasse when that facility
resumed operating in the first week of July 1981, after
having been closed on June 18, 1981, because of the
Union's strike . 32 I agree for the following reasons.
There was a lapse of slightly more than 2-1/2 months
between the start of the negotiations on April 1, 1981,
and the Union's June 18, 1981 strike. During this period
the parties held six negotiation sessions. The last of these
sessions was held over 1 month before the strike. There
is a lack of evidence that during the more than 2-1/2
months between the start of the negotiations and the
strike that Respondent was engaged in bad-faith bargain-
ing within the meaning of Section 8(a)(5) of the Act.
During the 2-1/2 months of negotiations immediately
prior to the June 18, 1981 strike, Respondent offered a
series of contract proposals that granted the Colorado
Springs employees a substantial pay raise, substantially
the same fringe benefits as they had been receiving under
the most recent contract, and increased the Respondent's
contractual fringe benefit contributions. The last in this
series of proposals was made at the sixth negotiation ses-
sion held on May 12, 1981 when Respondent presented
its "Best, Last and Final Offer" which the Union reject-
ed. Neither at that time nor at any other time did the
Union offer Respondent a counterproposal with respect
to wages or fringe benefits and there was no change in
the Union's bargaining position between the Union's re-
jection of Respondent's May 12, 1981 offer and the re-
opening of the facility in the first week of July 1981. As
a matter of fact no contract negotiation sessions were
held in May 1981 after the Union's rejection of Respond-
ent's May 12 offer and no negotiation sessions had been
held in June 1981 when on June 18, in support of its bar-
gaining position, the Union struck the Respondent's Col-
orado Springs facility.
The aforesaid circumstances establish that as of the
June 18, 1981 strike there was no realistic possibility that
the continuation of collective-bargaining negotiations be-
tween Respondent and the Union for a contract covering
the Colorado Springs facility would have been fruitful.
And although in some circumstances a strike will break a
bargaining impasse, this was not such a case. Here, fol-
lowing the strike, the parties did not hold a negotiating
meeting for another 5 weeks and when they did meet, it
was not because their negotiators felt that another nego-
tiation meeting would be fruitful, but they met at the in-
stance of the president of the Asphalt Paving Company,
one of the employers in the Asphalt Paving Group, who
apparently
wanted to bargain individually with the
Union. In any event, when the parties did meet on July
23, 1981, after a hiatus of approximately 2-1/2 months,
the Union's bargaining position was the same as it had
ii When "there was no realistic possibility that continuation of discus-
s' In reaching this conclusion I have found it unnecessary to decide
sion
would have been fruitful ," it is reasonable to conclude that on-
whether the Respondent and the other employers who were a part of the
passe was reached . Television & Radio Artists v. NLRB, 395 F 2d 622, 628
Asphalt Paving Group, constituted a multiemployer bargaining unit
(D C Cir 1969)
362
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
been when it rejected the Respondent's May 12, 1981
offer and the Respondent's new proposal was less favor-
able to the Union than the May 12, 1981 offer. All of
these circumstances warrant the inference that the June
18, 1981 strike did not break the impasse in bargaining.
Based on the foregoing I find, in agreement with Re-
spondent, that negotiations between the Union and Re-
spondent for the employees employed at Respondent's
Colorado Springs facility were at an impasse when, in
the first week of July 1981, that facility resumed oper-
ations.
I further find that when the negotiations ended on July
31, 1981, after their resumption on July 23, 1981, that
they were at an impasse for the following reasons. As I
have found supra, the negotiations were at an impasse on
May 11, 1981, when the Union rejected the Respondent's
"Last, Best and Final Offer" and were still at an impasse
when Respondent in the first week of July 1981 resumed
business operations . During the negotiations which fol-
lowed the July
1981 reopening,
the Union did not
change its bargaining position and the Respondent of-
fered the Union less favorable terms than were on the
table when on May 11, 1981 the negotiations had initially
deadlocked. In addition at the conclusion of the July 29,
1981 negotiation session the parties indicated that the ne-
gotiations were at an impasse and the Federal mediator
stated that he agreed that the negotiations were at an im-
passe and stated that because of this that he did not be-
lieve that it was feasible to schedule another negotiation
meeting. However, since the parties during the July 29,
1981 negotiation session only discussed the employers'
bargaining proposal insofar as the proposal related to the
business of the Asphalt Paving Company, the negotiator
for the Asphalt Paving Group of employers met with the
Union's negotiator on July 31, 1981, and explained to the
Union's negotiator that the Respondent's bargaining posi-
tion and the bargaining position of the other employer-
members of the Asphalt Paving Group was the same as
the Asphalt Paving Company's position. During this
meeting there was discussion between the negotiators
about the contractual issues over which the parties were
apart but they were unable to narrow their differences.
The aforesaid circumstances demonstrate that by the end
of the July 31, 1981 negotiating meeting that the negotia-
tions between the Union and the Respondent covering
the Respondent's Colorado Springs facility remained at
an impasse.
In concluding that on July 31, 1981, at the conclusion
of the bargaining session held on that date, that the nego-
tiations remained at an impasse, I have considered, as I
have found infra, that Respondent previously had violat-
ed Section 8(a)(5) and (1) of the Act on July 10, 1981, by
dealing directly with four of the unit employees and in
the first week of July 1981 by unilaterally instituting a
new health and welfare program and by unilaterally in-
creasing the wages of the returning strikers by including
as a part of their wages the 40 cents an hour formerly
paid into the contractual vacation trust fund. However,
the evidence does not establish that the July 31, 1981
bargaining deadlock would not have occurred absent
these unfair labor practices or that these unfair labor
practices contributed to the deadlock. Rather, the evi-
dence, as described in detail supra, reveals that the illegal
direct dealing involved only 4 of the approximately 85
bargaining unit employees and that when negotiations re-
sumed late in July 1981 that Respondent included these
two unilateral changes as a part of its contract proposals,
that the Union's and Respondent's negotiators discussed
these proposals, and that Respondent explained why it
instituted a new health and welfare program and gave
the Union a booklet which presumably explained the
coverage, benefits, and other matters pertinent to the
new program. Also, as described in detail supra, the
record reveals that even before the Respondent early in
July 1981 dealt directly with the four employees and
even before it made the unilateral changes herein, that
the parties had been hopelessly deadlocked in negotia-
tions since May 11, 1981, and that the Union's June 18,
1981 strike did not break this deadlock and that the
Union's bargaining position on economic matters, which
included the subjects encompassed by illegal unilateral
changes, had remained unchanged since the start of ne-
gotiations, and that the Union's overall bargaining posi-
tion had not changed since May 11, 1981, when the ne-
gotiations first impassed. In view of the aforesaid circum-
stances I shall not infer that Respondent's direct dealings
with four employees and its unvacated unilateral changes
were a contributing cause to the parties July 31, 1981
bargaining impasse.
d. Alleged unilateral changes in the Colorado Springs
employees' terms and conditions of employment
Sections 8(a)(5) and 8(d) of the Act impose on an em-
ployer an obligation to refrain from unilaterally institut-
ing changes in established terms and conditions of em-
ployment which constitute mandatory subjects of bar-
gaining . Fibreboard Products Corp. v. NLRB, 379 U.S.
203, 209-210 (1964); NLRB v. Katz, 369 U.S. 736, 742-
743 (1962). Because an employer's obligation to refrain
from unilaterally instituting changes applies to all estab-
lished employment terms and conditions which constitute
mandatory bargaining subjects, it extends not only to
terms and conditions established by a collective-bargain-
ing contract which is still in effect but also to terms and
conditions established by a collective-bargaining contract
that has expired. NLRB v. Carilli, 648 F.2d 1206, 1213-
1214 (9th Cir. 1981); Peerless Roofing Co. v. NLRB, 641
F.2d 734, 735-736 (9th Cir. 1981). "The principal excep-
tion to this rule occurs when the negotiations reach an
impasse: when impasse occurs, the employer is free to
implement changes in employment terms unilaterally so
long as the changes have been previously offered to the
Union during bargaining." Huck Mfg. Co. v. NLRB, 693
F.2d 1176, 1186 (5th Cir. 1982); see also Latrobe Steel Co.
v. NLRB, 630 F.2d 171, 179 (5th Cir. 1980). Also another
situation in which an employer is privileged to change
the terms and conditions of employment established by a
recently terminated contract is when "the employer
gives timely notice of its intention to modify a condition
of employment and the Union fails to timely request bar-
gaining" Bay Area Sealers, 251 NLRB 89, 90 (1980), for
when an employer notifies a union that it intends to
make changes that will effect employees' terms and con-
SCHMIDT-TIAGO CONSTRUCTION CO.
363
ditions of employment, it is incumbent on the union to
act with due diligence in requesting bargaining. Rochester
Institute of Technology, 264 NLRB 1020 fn. 2 (1982). See
also City Hospital of East Liverpool, 234 NLRB 58 (1978),
and Clarkwood Corp., 233 NLRB 1172 (1977).
In the first week of July 1981 when Respondent re-
sumed operating its Colorado Springs facility it changed
the union-represented employees terms and conditions of
employment, as follows. The strikers who returned to
work were granted an 80-cent-an-hour pay raise and
were additionally paid a 40-cent-an-hour contribution
that Respondent previously made on their behalf into the
vacation trust fund established by the recently expired
contract. A new health and welfare plan was instituted
for all the union represented employees. Also about
August 10, 1981, Respondent ceased paying contributions
on behalf of the union represented employees to the
health and welfare, pension, and vacation trust funds es-
tablished by the recently expired contract.33 The afore-
said employment changes made by Respondent at the
Colorado Springs facility are alleged in the complaint as
being unilateral changes in the union represented em-
ployees' terms and conditions of employment that violat-
ed Section 8(a)(1) and (5) of the Act.34 I shall now
evaluate these allegations.
The allegation that the 80-cent-an-hour pay raise
granted to the returning strikers when the Colorado
Springs facility resumed operations in the first week of
July 1981 was an illegal unilateral change in the employ-
ees wages, is without merit. As I have found supra,
when this pay raise was granted, the collective-bargain-
ing negotiations between Respondent and the Union for
the Colorado Springs facility were at an impasse and the
amount of the pay raise, 80 cents an hour, had been pre-
viously offered to the Union. It is for this reason that I
shall recommend that this allegation be dismissed.
Also without merit, insofar as it pertains to the Colora-
do Springs employees, is the allegation that Respondent
engaged in unilateral conduct in violation of Section
8(a)(5) and (1) of the Act by ceasing its contractual
health and welfare, pension, and vacation trust fund pay-
ments. As I have found supra, it was on August 10, 1981,
99 The record reveals that Respondent was obligated under the recent-
ly expired contract to make the above-described trust fund contributions
on the 10th day of the month following the month foi which they were
paid In other words Respondent's trust fund contributions for June 1981
were due July 10, 1981, and its July 1981 contributions were due August
10, 1981. On July 10, 1981 , Respondent paid the contributions to the sev-
eral funds for the period June 1 to June 18, 1981 As described supra, no
union-represented employees were employed between June 18, 1981, and
the first week of July 1981, due to the Union's strike. Thus, August 10,
1981, was the first date on which Respondent's trust fund contribution
payments were due during the time material to this cast.
a* Respondent's 80-cent-an-hour pay raise to the returning strikers, the
payment of the additional 40-cent-an -hour wage increase to them which
was formerly paid to the vacation trust fund, and Respondent's cessation
of contributions on behalf of the employees to the health and welfare,
pension, and vacation trust funds, constitute mandatory subjects of bar-
gaining
However, Respondent's contribution on behalf of the unit em-
ployees to the Industry Advancement Program Fund , an industry promo-
tional fund, does not constitute a mandatory subject of bargaining There-
fore, Respondent was not obligated under Section 8(a)(5) of the Act to
afford the Union an opportunity to bargain about its decision to discon-
tinue contributing to this fund Finger Lakes Plumbing Co, 254 NLRB
1399 (1981); FML Supply, 258 NLRB 604 fn. 3 (1981).
that Respondent cease contributing to the health and
welfare, pension, and vacation trust funds on behalf of
the Colorado Springs employees. However, as described
in detail supra, Respondent, through its collective-bar-
gaining representative, Darkey, by letters of June 18 and
29, 1981, notified the Union of its decision to engage in
this conduct and advised the Union that it was "ready
and able" to meet with the Union to discuss this and
other matters. Although the Union received notice of
these proposed changes in the employees' terms and con-
ditions of employment, it admittedly did not request bar-
gaining about these matters . 35 Rather the Union's re-
sponse, as described in detail supra, was Parker's July 31,
1981 statement to Darkey that if the Respondent had in
fact stopped making the contributions to the several
fringe benefit trust funds that its conduct constituted ille-
gal unilateral conduct and the Union would refer the
matter to its attorney. In failing to exercise its right to
meet and bargain, the Union cannot now claim that Re-
spondent unlawfully refused to bargain. The Union by its
conduct has effectively waived its right to assert that the
Respondent's conduct in ceasing to make the aforesaid
trust fund payment constitutes unilateral action in viola-
tion of Section 8(a)(5) and (1) of the Act. Rochester Insti-
tute of Technology, 264 NLRB 1021, 1024-1025 fn. 2
(1982); Citizens National Bank of Willmar, 245 NLRB
389, 390 (1979). Moreover, as I have found supra, on
July 31, 1981, several days before Respondent imple-
mented its decision to stop making its contributions to
the fringe benefit trust funds, the Respondent and the
Union bargained to an impasse, thus Respondent was
privileged to stop contributing to the trust funds since
this conduct was encompassed by its preimpasse bargain-
ing proposals. I therefore find that Respondent did not
violate Section 8(a)(5) and (1) of the Act by discontinu-
ing making the contributions on behalf of the Colorado
Springs employees to the recently expired contractual
health and welfare, pension, and vacation trust funds.
Pursuant to the terms of the 1978-1981 Union Heavy
Highway Contract, Respondent paid 40 cents an hour to
a vacation trust fund for each hour worked by its union-
represented Colorado Springs employees for their vaca-
tion benefits. Also there Colorado Springs employees
were covered by a health and welfare program under
that contract. In the first week of July 1981, as I have
found supra, when Respondent reopened its Colorado
Springs facility, it instituted a new health and welfare
program, the Colorado Contractors Association Health
and Welfare Program, and increased the hourly wages of
the returning strikers by paying them an additional 40
cents an hour that previously was contributed by Re-
spondent, on their behalf, to the vacation trust fund. The
General Counsel, as alleged in the complaint, contends
that this conduct violated Section 8(a)(5) and (1) of the
Act because it was done unilaterally without affording
ss It would be unwarranted for me to conclude that if the Union made
a timely response to Darkey's June 18 or 29, 1981 letters, that Respond-
ent would have gone ahead and ceased making the trust fund payments
without first affording the Union an opportunity to bargain about the
matter until either agreement or impasse was reached.
364
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
the Union an opportunity to bargain. I agree for the fol-
lowing reasons.
Unlike the situation involving Respondent's cessation
of its fringe benefit trust fund contributions, discussed
supra, where the Union received notice prior to the im-
plementation of that decision, here the decision to insti-
tute a new health and welfare program and increase the
returning strikers wages by 40 cents an hour were actual-
ly placed into effect before the Union received notice of
the Respondent's intentions. As described in detail supra,
it was not until July 23, 1981, that the Union was noti-
fied about these decisions. This was at least 2 weeks after
Respondent's decisions had already been implemented
and placed into effect.36 Obviously this did not satisfy
Respondent's bargaining obligation under Section 8(a)(5)
because,
as
the
court stated in
Garment
Workers
(McLaughlin Mfg) v. NLRB, 463 F.2d 907, 919 (D.C.
Cir. 1972)..3 7
[N]otice to be effective must be given sufficiently in
advance of actual implementation of a decision to
allow reasonable scope for bargaining. Indeed "(n)o
genuine bargaining . . . can be conducted where
[the] decision had already been made and imple-
mented" . . . notice of a fait accompli is simply not
the sort of timely notice upon which a waiver de-
fense is predicated.
It is for this reason that I find that Respondent violated
Section 8(a)(5) and (1) of the Act, when during the first
week of July 1981 at its Colorado Springs facility, it uni-
laterally and without affording the Union a reasonable
opportunity to bargain instituted a new health and wel-
fare program, the Colorado Contractors Association
Health and Welfare Program, and increased the hourly
wages of the returning strikers by paying them an addi-
tional 40 cents an hour which previously was contribut-
ed to the vacation trust fund established by the recently
expired 1978-1981 contract.38
e. Alleged direct dealing with the Colorado Springs
employees
The complaint alleges that Respondent violated Sec-
tion 8(a)(5) and (1) of the Act when, through its vice
president and general manager, Prevost, about July 9 and
10, 1981, it "bypassed the Union and dealt directly with
employees . . . by discussing wages, hours of employ-
ment, health insurance, pension benefits, vacation pay,
and other terms and conditions of employment with
86 In its posthearmg brief Respondent concedes that it implemented its
decision to institute the Colorado Contractors Association Health and
Welfare Program and to grant the returning strikers the above -described
40-cent-an-hour pay raise before the Union was notified about these
changes in the employees' terms and conditions of employment Respond-
ent's argument is without merit that because the parties subsequently bar-
gained to an impasse over these changes, that this after-the-fact bargain-
ing removed the taint of illegality from its prior unilateral conduct
90 See also NLRB v. Northeast Oklahoma City Mfg. Co., 631 F 2d 669
(10th Cir 1980).
98 The law is settled that Respondent violated Sec 8(aX5) and (1) of
the Act by its unilateral conduct of paying the returning strikers an addi-
tional 40 cents an hour that previously was contributed on their behalf to
the vacation trust fund. Excavation-Construction,
248 NLRB 649, 651
(1980)
those employees." This allegation refers to Prevost's July
10,
1981
meeting with striking employees Brautigam,
Forsett, Mayo, and Leyba, which has been described in
detail previously.
I agree with the allegations of the complaint that Pre-
vost's statements to the strikers at the July 10, 1981
meeting constituted impermissible direct dealing in dero-
gation of the Union's status as the employees' exclusive
collective-bargaining representative. I do so because Pre-
vost did more than simply urge the striking employees to
accept as their terms and conditions of employment the
Respondent's bargaining proposals previously offered to
the Union. Rather Prevost offered the strikers certain
terms and conditions of employment before even afford-
ing the Union an opportunity to consider them. Thus, as
I have found supra, Prevost told this group of strikers
that if they decided to return to work that the Respond-
ent would attempt to establish new health and welfare
and pension programs to replace the programs that exist-
ed prior to the strike and would attempt to arrange with
the Union to transfer the contributions made on their
behalf by Respondent from the old programs to the new
ones. Also, as I have found supra, Prevost told them that
there would be a two-tier system of wages, with the
striker replacements receiving $2 an hour less than the
returning strikers and advised the strikers that the Re-
spondent at a later date might reduce the returning strik-
ers' wages to the same level as the striker replacement
wages in order to eliminate the hard feelings generated
by this disparate treatment.
When Prevost on July 10, 1981, made the above-de-
scribed proposals to the strikers in his office, Respondent
had already unilaterally implemented a new health and
welfare program for the unit employees without notify-
ing the Union. Indeed, Respondent's last bargaining pro-
posal submitted to the Union proposed the continuance
of the health and welfare program that was in existence
prior to the strike, with an increase in Respondent's level
of contributions. Likewise no contract proposal had been
made to the Union as of July 10, 1981, concerning a new
pension program to replace the one in existence prior to
the strike. Nor had Respondent indicated to the Union
that it was contemplating lowering the wages of the re-
turning strikers from what had been proposed to the
Union to that being paid to the striker replacements.
In making the aforesaid proposals on July 10, 1981, to
the group of four striking employees before affording the
Union an opportunity to bargain or otherwise discussing
these matters with the Union, Prevost engaged in the
kind of conduct that constitutes direct dealing with the
striking employees in derogation of the union status as
their exclusive collective bargaining and that was calcu-
lated to disparage the Union in the eyes of the employ-
ees. Moreover, when viewed in the context of Prevost's
contemporaneous July 10, 1981 illegal statement to this
group of strikers that Respondent would never sign a
contract with the Union, it is clear that the intended
effect of Prevost's aforesaid conduct at the July 10, 1981
meeting was to wean the strikers away from the Union
and to deal directly with them concerning matters on
which Respondent was obligated to bargain with the
SCHMIDT-TIAGO CONSTRUCTION CO.
365
Union. By engaging in such conduct Respondent not
only interfered with employees' Section 7 rights in viola-
tion of Section 8(aXl) of the Act, but also undermined
the Union and its legitimate bargaining position in viola-
tion of Section 8(a)(5) of the Act. It is for these reasons
that I find that as alleged in the complaint that Respond-
ent violated Section 8(a)(5) and (1) of the Act by bar-
gaining
directly with employees represented by the
Union on matters subject to collective bargaining.
3. The 8(a)(5) and (1) violations involving
Respondent's union represented employees not
employed at Colorado Springs
On July 10, 1981, as described in detail supra, Re-
spondent ceased making contributions to the health and
welfare, pension, and vacation trust funds on behalf of all
of its union represented employees in the State of Colo-
rado, not just those employed at its Colorado Springs fa-
cility. Likewise at this time Respondent placed all of its
union represented employees, not just those employed at
its Colorado Springs facility, under the Colorado Con-
tractors Association Health and Welfare Program in
place of the program that existed under the 1978-1981
Union Heavy Highway Contract. The complaint alleges
that by engaging in this conduct Respondent violated
Section 8(a)(5) and (1) of the Act because these changes
in the employees terms and conditions of employment
were instituted unilaterally without affording the Union
an opportunity to bargain. For the reasons set forth here-
inafter, I agree.
It is undisputed that Respondent's union-represented
employees employed in the State of Colorado outside of
the Colorado Springs facility were not included with the
union represented Colorado Springs employees in the
Asphalt Paving Group negotiations. Indeed, Respondent
during the hearing and in its posthearing brief conceded
that all of its union represented employees who are not
employed at its Colorado Springs facility remained a part
of the multiemployer bargaining unit in which Respond-
ent was represented by the SLC. There is no contention
or evidence that in July 1981 when Respondent stopped
contributing to the several fringe benefit trust funds of
the 1978-1981 Union Heavy Highway Contract and sub-
stituted the Colorado Contractors Association Health
and Welfare Program for the existing health and welfare
program, that the SLC, on behalf of Respondent, in its
negotiations with the Union had proposed these changes
or comparable changes in the employees' terms and con-
ditions of employment. Also no evidence was presented
that at the time in question that the SLC negotiations
were at an impasse . Quite the opposite, 1 he Board in Sig-
natory Labor Committee,
261 NLRB 1459 (1982), held
that during the material period of time that those negoti-
ations were not at an impasse. In other words the record
establishes that in July 1981 when Respondent ceased
contributing to the health and welfare, pension, and va-
cation trust funds on behalf of the non-Colorado Springs
union represented employees, and substituted the Colora-
do Contractors Association Health and 'Welfare Program
for these employees' existing program, that Respondent
acted unilaterally without affording the Union an oppor-
tunity to bargain about these changes in the employees
terms and conditions of employment. I therefore find
that by engaging in this conduct Respondent violated
Section 8(a)(5) and (1) of the Act.
In concluding that Respondent's above-described uni-
lateral cessation of its pension trust fund contributions on
behalf of the non-Colorado Springs union represented
employees violated Section 8(a)(5) and (1) of the Act, I
have considered Respondent' s argument that under the
terms of the pension trust fund agreement to which Re-
spondent and the Union were bound, that Respondent's
obligation to make pension trust fund contributions de-
pended on the existence of a current collective-bargain-
ing contract. I shall now set out the provisions of the
various pension trust fund documents that are relevant
for an evaluation of this argument and explain my rea-
sons for rejecting it.
Contemporaneously with the execution of the 1978-
1981 Union Heavy Highway Contract, which included a
provision calling for the Respondent to make contribu-
tions on behalf of its union represented employees into a
pension trust fund, the Respondent and Union executed
an "Employer-Union Pension Certification." This pen-
sion certification, in pertinent part, provides that, "[Re-
spondent] and [Union] hereby certify that a written labor
agreement is in effect between the parties providing for
contributions to the Western Conference of Teamsters
Pension Trust Fund [Trust Fund] and that such agree-
ment conforms to the trustee policy on acceptance on
Employer contributions and is not otherwise detrimental
to the plan," and further provides that, "the [Union] and
[Respondent] agree to be bound by the Western Confer-
ence of Teamsters Agreement and Declaration of Trust
and Pension Plan as now constituted or as hereinafter
amended."
The pension certification and the declaration of trust
each contained the following provision:
It is the policy of the Trustees of the Western Con-
ference of Teamsters Pension Trust Fund to accept
as Employer Contributions only payment made in
accordance with a Pension Agreement that is not
detrimental to the Plan. The determination of
whether or not a Pension Agreement is detrimental
to the Plan shall be made by the Trustees in their
sole discretion. However, the list of provisions that
follows is furnished as an illustration of those whose
inclusion in a Pension Agreement may result in a
determination by the Trustees that the
Pension
Agreement is detrimental to the Plan.
Section 9, article I of the trust declaration, entitled
"Definitions," defines "Employer Contributions" as fol-
lows:
The term Employer Contributions as used herein
shall mean payments to the Trust Fund by an em-
ployer in accordance with a Pension Agreement.
Any contribution to the Trust Fund which are dis-
covered not to have been made pursuant to a valid
pension agreement, or which are subsequently dis-
covered to be unacceptable for any other reason,
shall be withdrawn from the Trust Fund and cred-
366
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
ited to a Segregated Account pending the determi-
nation of the person or persons entitled thereto.
Section 10, article I of the trust declaration, entitled
"Definitions," defines "Pension Agreement," as follows:
The term Pension Agreement as used herein shall
mean a written agreement between any Union and
any Employer which, among other thing, requires
payments to the Trust Fund on behalf of employees
of such Employer who are represented by such
Union. Such agreement may not provide for pay-
ments to the Trust Fund with respect to employees
not so represented.
The term Pension Agreement shall include any
extension, renewal or replacement thereof. A Pen-
sion Agreement shall be considered as being in
effect on any date if it provides for Employer Con-
tributions to be made to the Trust Fund with re-
spect to employment on such date.
Respondent argues that by virtue of the above-de-
scribed language of the pension certification and declara-
tion of trust, that the Union has waived its right to bar-
gain regarding the Respondent's cessation, at the expira-
tion of the 1978-1981 union heavy highway contract, of
payments into the pension trust fund, absent a renewed
agreement to continue such payments. In support of this
argument Respondent relies on Cauthorne Trucking, 256
NLRB 721 (1981), in which a pension trust fund agree-
ment contained the following language. Id. at 722:
IT IS UNDERSTOOD AND AGREED that at the expira-
tion of any particular collective bargaining agree-
ment by and between the Union and any Compa-
ny's obligation under this Pension Trust Agreement
shall terminate unless, in a new collective bargain-
ing agreement, such obligation shall be continued.
This language clearly and unmistakably established that
it was the Union's intent to waive its statutory right to
bargain about the discontinuance of the trust fund pay-
ments when the existing collective-bargaining contract
expired. I do not believe that in the instant case there is
an adequate basis for implying the existence of such a
waiver, without a more compelling expression of it than
appears in the above-described language of the pension
certification and declaration of trust. This language does
not on its face, as in Cauthorne Trucking, specifically
state that Respondent's obligation to contribute to the
pension trust fund ends with the expiration of the current
collective-bargaining contract. Moreover, the provisions
of the pension certification and the declaration of trust,
relied on by Respondent in support of its waiver argu-
ment, appear from their language to have been drafted
with the intent of complying with the requirements of
Section 302 of the Act,39 rather than with the idea of
39 Sec. 302 of the Act states in relevant part:
(a) It shall be unlawful for any employer . . . to pay, lend, or de-
liver ... any money or other thing of value -
(2) to any labor organization
which represents .
any of the
employees of such employer... .
circumscribing the Union's statutory right to bargain
over cessation of the trust fund payments at the expira-
tion date of the 1978-1981 union heavy highway con-
tract. It is for these reasons that I am of the opinion that
the language of the pension certification and declaration
of trust, relied on by Respondent, fails to clearly and un-
mistakably evidence an intent by the Union to waive its
statutory right to bargain over the Respondent's discon-
tinuance of the pension trust fund contributions when the
1978-1981 union heavy highway contract expired.40 I
therefore reject Respondent's waiver defense. Cf. Ameri-
can Distributing Co. v. NLRB, 715 F.2d 446 (9th Cir.
1983), enfg. 264 NLRB 1413, 1415 (1982).
4. The 8(a)(5) and (1) allegations involving the
denial of access to Respondent's facilities to union
representatives
The General Counsel contends, as alleged in the com-
plaint, that on February 4, 1983, Respondent's vice presi-
dent and general manager in charge of its Colorado
Springs facility, Robert Prevost, denied union representa-
tives access to Respondent's facilities in violation of Sec-
tion 8(a)(5) and (1) of the Act. The theory of this allega-
tion is that Prevost denied union business agents access
to Respondent's premises and jobsites in derogation of
article 12, the "job admission" provision, of the 1978-
1981 union heavy highway contract.
The facts pertinent to this allegation have been de-
scribed in detail previously. I am persuaded that this alle-
gation is without merit because the evidence is insuffi-
cient to establish that Respondent acted in derogation of
the "job admission" provision of the 1978-1981 Union
Heavy Highway Contract. The fact that Prevost ended
his February 4, 1983 conversation with Union Business
Representative Delmonte by declaring that he would
have the police jail any "unauthorized people" who
showed up on Respondent's projects, does not establish
that he intended to deny access to union business repre-
sentatives. Rather it is just as likely that in making this
statement that Prevost's intent was to place Delmonte on
notice that it was his intent to enforce the portion of the
"job admission" provision that provides that "[t]he union
representative shall identify himself to the contractor's
representative when the union representative first ap-
pears on the job site." In this regard Union Representa-
tive Delmonte testified that if a union business agent
went to one of Respondent's jobsites and visited employ-
ees before first identifying himself to a representative of
the Respondent that the business agent would be consid-
ered "an unauthorized visitor" under the "job admission"
(c) The provisions of this section shall not be applicable .. .
(5) with respect to money . . . paid to trust fund established by
such representative, for the sole and exclusive benefit of the employ-
ees of such employer .
: Provided, That .
(B) the detailed basis
on which such payments are to be made is specified in a written
agreement with the employer.
40 The law is settled that an inference that parties to a contract intend
to waive a statutorily protected right will not be inferred from a general
contractual provision or provisions. Rather such a waiver must be clear
and unmistakable. See generally Metropolitan Edison Ca v. NLRB, 460
U.S. 693 fn. 12 (1983).
SCI-EVIDT-TIAGO CONSTRUCTION CO.
367
provision. Delmonte also admitted before the strike that
he was told by Respondent's Truck Foreman Paradise
that Prevost was not happy because he thought Del-
monte was visiting employees at the Colorado Springs
facility before first identifying himself to a representative
of the Company at the Company' s main office. Under
the circumstances, I am of the opinion that the General
Counsel has failed to establish that on February 4, 1983,
Prevost acted in derogation of the job admission provi-
sion of the 1978-1981 Union Heavy Highway Con-
tract.41 I therefore for this reason shall recommend that
this allegation be dismissed.
5. The alleged 8(a)(3) and (1) violations42
a. Allegations that returning strikers who resigned
from the Union were accorded preferential treatment
The record establishes that Respondent immediately
prior to the Union's June 18, 1981 strike employed ap-
proximately 85 employees at its Colorado Springs facility
who were represented by the Union and that all of these
employees ceased work and supported the union strike.
Thereafter when Respondent resumed operating its Colo-
rado Springs facility in the first week of July 1981, and
continuing thereafter, most of the strikers returned to
work and were granted pay raises consistent with Re-
spondent's preimpasse bargaining proposal.43 The record
also shows that a substantial number of these returning
strikers resigned their union membership prior to return-
ing to work. The complaint alleges that Respondent gave
preferential treatment to the returning strikers who re-
signed from the Union by only allowing this group of
strikers to return to work and by granting this group of
strikers a pay raise, thus violating Section 8(a)(3) and (1)
of the Act. I am persuaded that this allegation is without
merit because the record fails to establish that it was
only the group of strikers who resigned from the Union
*1 In view of this conclusion I have not considered Respondent's argu-
ment that a union visitation provision in a collective -bargaining contract
is similar to a union-security provision that does not survive the expira-
tion of the contract
•s The General Counsel offered into evidence as G C Exh 7 all the
resignation letters submitted to the Union by those strikers whom the
record shows returned to work for Respondent after the start of the June
18, 1981 strike; a total of 29 letters
There is no question about the au-
thenticity of these letters or that they were sent and received by the
Union. They were offered by the General Counsel to corroborate the tes-
timony of those witnesses who testified that representatives of Respond-
ent told them that if they resigned from the Union they could return to
work In his posthearing brief the General Counsel further argues that
these letters are also relevant because they establish that each one of the
signers was told that they had to resign from the Union in order to
return to work I rejected G.C. Exh 7 for the reason that union members
who resume working after the start of a union strike at their place of em-
ployment frequently resign from the Union before they resume working
in order to avoid being disciplined by the Union for working during the
strike, therefore it would be impermissible for me to draw the inferences
from these letters which the General Counsel requests After reviewing
the record as a whole I see no reason to change my ruling in this respect.
However, I am now persuaded, as noted infra, that G.C. Exh. 7 is rele-
vant to evaluate the parties contentions concerning the alleged violations
of Sec 8(aX3) of the Act, and for this reason admit it into evidence
43 As I have found supra, at this point in time, the collective-bargain-
ing negotiations between the Union and the Respondent for a contract
covering the Colorado Springs facility were at an impasse and the pay
raises granted to the returning stokers were consistent with Respondent's
preimpasse bargaining proposal
who were reinstated and granted pay raises. Rather, as
described below, the record establishes that a significant
number of the strikers who returned to work after the
start of the strike and who received pay raises did not
resign from the Union.
The record, Joint Exhibit 3 and General Counsel's Ex-
hibit 7, reveals that numerous strikers who returned to
work across the picket line during 1981 and 1982 and
who did not resign from the Union, were reinstated and
granted pay raises comparable to the raises granted to
the returning strikers who resigned from the Union. I
note that included among this large group of returning
strikers who did not resign, yet were reinstated with pay
raises, there were several who returned to work in July
1981: Max Abeyta; Lewis Crippen; Lewis Crippen Sr.,
Jack Isenhart Jr., Melvin Pribble, Raymond Pribble Jr.,
Ronald Snook, and Jimmy Woods. I also note that an-
other returning striker Glen Schroeder, was reinstated
early in July 1981 before Respondent learned that he had
resigned from the Union. Under the circumstances, the
General Counsel has failed to establish, as alleged in the
complaint, that Respondent gave preferential treatment
to those strikers who resigned from the Union over those
who did not resign. I therefore for this reason shall rec-
ommend that this allegation be dismissed.
b. Alleged constructive discharges
As described in detail supra, on June 18, 1981, the ap-
proximately 85 union represented employees employed at
Respondent's Colorado Springs facility stopped work in
support of the Union's economic strike against Respond-
ent, thereby forcing Respondent to cease doing business
at this facility until the first week of July 1981 when it
resumed operations. On the resumption of operations a
number of the strikers returned to work and additional
ones returned in the days and weeks that followed.44
The General Counsel contends, as alleged in the com-
plaint, that 10 of the strikers, who did not return to work
for Respondent, were constructively discharged in viola-
tion of Section 8(a)(3) and (1) of the Act because "Re-
spondent refused to allow [them] to return to work by
placing unlawful conditions upon their continued em-
ployment, to wit, requiring them to resign from the
Union and to show proof of their resignations to Re-
spondent."45 The evidence pertinent to this allegation,
insofar as it relates to each of the 10 alleged discrimina-
tees, has for the most part been previously set forth in
** Although picketing ceased July 23, 1982, the Union has not in-
formed Respondent that the strike had ended nor ,has the Union ever
asked the Respondent to reinstate the strikers
45 The complaint actually named 13 alleged discnminatees in this alle-
gation, but the General Counsel in his posthearing brief asked that the
names of 3 of the alleged discriminatees-Frank Lukman, Leroy Van
Cleave, and Harry Hubbard-be withdrawn because Lukman and Van
Cleave testified that Respondent's conduct had no effect whatsoever on
their action in not returning to work and , with respect to Hubbard, no
evidence was presented concerning his case . The record supports the
General Counsel's position. I therefore shall treat the General Counsel's
request as a motion to strike the names of Lukman, Van Cleave, and
Hubbard from the complaint and I grant the motion.
368
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
detail and, other than in the case of Herman Chavez,46 is
briefly summarized as follows.
(1) Jim Clementi
Two days after the start of the June 18 strike Cle-
menti, a striker who never returned to work for Re-
spondent, phoned Truck Foreman Paradise and "asked
him if [Clementi] was going to be able to go back to
work." Paradise responded by stating that if Clementi
wanted to return to work that he would have to "drop
out of the Union" and gave him 1-1/2 weeks to decide.
Clementi testified, "no," when asked, "[D]id you ever
offer to return to work for [Respondent]?"
(2) Gregory Nill
During the second week of July 1981, Nill, a striker
who never returned to work, spoke to Vice President
and General Manager Prevost with four other strikers
and one of the strikers asked "what [they] had to do to
come back to work?" Prevost replied by stating "[they]
would have to resign from the Union to come back."
(3) Wayne Sell
During the second week of the strike, Sell, a striker
who did not return to work, met with Vice President
and General Manager Prevost accompanied by two
other strikers. One of the strikers told Prevost that the
three strikers had come to speak to him to learn "what
was going on." Prevost responded by stating that the
Respondent intended to resume work and that if they
wanted to return to work that they had to resign from
the Union and show proof of their resignations.
(4) Arthur Brautigam, Paul Forsett, Edward Mayo,
and Eusaivo Leyba
On July 10, 1981, Vice President and General Manag-
er Prevost met with Brautigam,
Forsett,
Mayo, and
Leyba, all of whom were strikers who never returned to
work. When they asked what the working conditions
would be like if they decided to return to work, Prevost
told them that in order to return to work they would
have to resign from the Union and submit proof of their
resignations.
(5) Donnie Burrell, Charles Trafton Jr., and James
Machak
On July 10, 1981, strikers Brautigam, Forsett, Mayo,
and Leyba after their above-described meeting with Pre-
vost returned to the picket line where they spoke with
Burrell, Trafton and Machak, who were strikers that
never returned to work. They told Burrell, Trafton, and
Machak that Prevost had told them that in order for
Brautigam, Forsett, Mayo, and Leyba to return to work
that they would have to resign from the Union. Trafton
responded by stating that he would not resign from the
as For the reasons set forth supra, I have rejected Chavez' testimony
on which this allegation is based I therefore for this reason shall recom-
mend that this allegation be dismissed insofar as it names Chavez as a dis-
cnminatee
Union.47 Burrell responded by stating that he could not
afford to resign from the Union because he would lose
his union retirement benefits and that he would just have
to go to work for a union contractor.
The next day, July 11, 1981, Machak was told by
Truck Foreman Paradise that unless Machak resigned
from the Union and showed Respondent proof of his res-
ignation by Friday of the next week, that Machak would
be replaced by a striker replacement. Machak replied
that he could not afford to resign from the Union be-
cause of the amount of time he had accumulated in the
Union's pension fund.48
Citing Hayden Electric, 256 NLRB 601, 605 (1981), the
General Counsel argues that the above-named strikers
were constructively discharged because they made un-
conditional offers to return to work and in response the
Respondent conditioned their reinstatement on an illegal
condition.
Citing
Kamminga & Roodvoets Inc.,
198
NLRB 208 (1972), the General Counsel further argues
that even if these strikers did not make unconditional
offers to return to work, that Respondent's conduct of
informing them that their reinstatement was conditioned
upon their resigning from the Union, constituted a con-
structive discharge of those strikers who quit. In the al-
ternative citing Eagle International, 223 NLRB 29 (1976),
the General Counsel argues that even if the strikers did
not make unconditional offers to return to work and
were not otherwise constructively discharged that at the
very least they became discriminatees as of the date they
abandoned the strike because it would have been futile
for them to have made offers to return to work because
the only offer Respondent would have accepted was an
offer accompanied by their resignation from the Union.
Last the General Counsel contends that even though an
agent of Respondent did not directly communicate to
strikers Burrell and Trafton that their employment was
conditioned on resigning from the Union, that Respond-
ent is responsible for their receipt of this information be-
cause striker Mayo who communicated this information
to them had been speaking to Vice President and Gener-
al Manager Prevost on behalf of all the strikers in his ca-
pacity as union steward. For the reasons set forth herein-
after I am persuaded that each of the General Counsel's
arguments, in the circumstances of this case, are without
merit.
First, it is evident from the description of their conver-
sations with representatives of the Respondent that none
of the above-named strikers made an unconditional offer
to return to work, thus cases such as Hayden Electric are
inapposite. Second, there is insufficient evidence that any
of the above-named strikers quit their employment,49
49 When asked on cross-examination why he never offered to return to
work, Trafton testified, "because I would not resign from the Union "
48 In response to a question on cross-examination Machak testified that
if there had not been a requirement that he resign from the Union that he
would still be working for the Respondent, as the Respondent was a
good company to work for.
19 Striker Lukman's testimony that he was picketing alone because
"the other fellows got jobs" is not competent to establish that in fact any
of the above-named strikers went to work for other employers and in any
event fails to establish that they quit their employment with Respondent.
Continued
SCHMIDT-TIAGO CONSTRUCTION CO.
369
thus cases such as Kamminga & Roodvoets Inc. are also
inapposite.50 Third, Eagle International, and the cases
cited therein, are inapposite because they all involve em-
ployees who, unlike the instant alleged discriminatees,
were found to have been discharged while on strike. In
any event there is no showing that it would have been
futile for the alleged discriminatees in this case to have
successfully offered to return to work without having to
resign from the Union. Rather the record, Joint Exhibit 3
and General Counsel's Exhibit 7, reveals that of the ap-
proximately 73 strikers who cross the picket line during
the strike to return to work, approximately 60 percent
did not resign from the Union. Last, there is no evi-
dence, as contended by the General Counsel, that in
speaking to Prevost with the other three strikers on July
10, 1981, that striker Mayo was speaking in his capacity
as union steward on behalf of all the employees or that
Prevost should have realized this. But more significant is
the fact that Prevost could not have reasonably expected
that his July 10, 1981 statements concerning union resig-
nations made to Mayo and the other three strikers would
be communicated to the other strikers inasmuch as Pre-
vost's resignation statements, described supra, were di-
rected to Mayo and the other three strikers personally
and not to all of the strikers. Compare Martin Arsham
Sewing Co., 244 NLRB 918 (1979)
It is for all the foregoing reasons that I am persuaded
that there is no merit to the General Counsel's conten-
tion that strikers Clementi, Nill, Sell, Brautigam, Forsett,
Mayo, Leyba, Burrell, Trafton, and Machak were con-
structively discharged in violation of Section 8(a)(1) and
(3) of the Act. I therefore shall recommend that these al-
legations be dismissed.
(6) The nature of the strike
The strike which began on June 18, 1981, was motivat-
ed by a desire of the Union and the employees whom it
represented at Respondent's Colorado Springs facility to
bring economic pressure to bear on Respondent to
secure what the Union and the employees considered to
be an acceptable contract. As such it was an economic
strike. The General Counsel concedes this, but takes the
Assuming Burrell's
above-described spontaneous declaration that he
would lust have to work for a union contractor rather than resign from
the Union, constitutes evidence that he quit his employment with Re-
spondent, his quit does not constitute a constructive discharge because as
discussed infra, he was informed by other employees not by an agent of
Respondent that resignation from the Union was a condition of reinstate-
ment. Last, with respect to Machak's self-serving testimony that if there
had been no requirement that he resign from the Union that he would
still be working for the Company, this is not the type of evidence on
which a finding may be based that Machak quit his employment I am of
the opinion that such a finding must be based on objective evidence, i e.,
the conduct of the striker during the time in question, as evidenced by his
words or actions
50 "A constructive discharge is not a discharge at all but a quit which
the Board treats as a discharge because of the circumstances which sur-
round it." Fred Lewis Carpets, 260 NLRB 1343, 850 (1982), citing Comgen-
era! Corp, 251 NLRB 653, 657 (1980). Even in those cases involving the
issue of whether strikers have been constructively discharged, other than
the cases where the strikers have made unconditional offers to return to
work, the General Counsel must establish that the strikers actually quit
their employment as a result of the employers unfair labor practices See
Kamminga d Roodvoets Inc, 198 NLRB 208 (1972), American Distilling
Co, 245 NLRB 454, 460 (1979)
position, as alleged in the complaint that Respondent's
subsequent unfair labor practices converted the strike to
an unfair labor practice strike.
The law is settled that "[a]n unfair labor practice does
not convert an economic strike to an unfair labor prac-
tice strike unless a casual connection is established be-
tween the unlawful conduct and the prolongation of the
strike." Robbins Co., 233 NLRB 594 (1977). For the rea-
sons set forth below, I am persuaded that the General
Counsel failed to establish a casual connection between
the unfair labor practices found herein and the continu-
ation of the strike.
An economic strike that is caused by an impasse in
collective-bargaining negotiations may be prolonged by
an employer's subsequent unfair labor practices if the
strike is expanded to include a protest over the unfair
labor practices or, if the unfair labor practices obstruct
the collective-bargaining negotiations, thereby prolong-
ing the strike and its settlement.
The only evidence in the instant case that the strikers
expanded the strike to include a protest over the Re-
spondent's unfair labor practices is the testimony of 3 of
the approximately 80 odd strikers-Trafton, Burrell, and
Machak-to the effect that they did not return to work
because of the Respondent's statement that their employ-
ment was conditioned on their resigning from the Union.
Obviously this is not sufficient to establish that the strik-
ers as a group expanded the purpose of the strike to in-
clude a protest over the Respondent's unfair labor prac-
tices. Nor will I infer that the Respondent's illegal con-
duct, telling approximately 17 strikers that their contin-
ued employment was conditioned on their resigning from
the Union, by its nature was calculated to obstruct the
collective-bargaining negotiations or to cause the strikers
to expand the purpose of strike to include a protest over
this unfair labor practice. For the record reveals that Re-
spondent did not in fact have a policy of conditioning
continued employment upon the strikers resigning from
the Union. There is no evidence that even one striker
was refused reemployment because he or she refused to
resign from the Union. Quite the opposite, at least 60
percent of the strikers crossed the picket line and re-
turned to work without resigning from the Union, which
included several strikers who returned to work in July
1981. Under the circumstances, I will not infer that Re-
spondent's statements to less than 20 percent of the strik-
ers that their continued employment was conditioned on
resigning from the Union either expanded the purpose of
the strike or obstructed the collective-bargaining negotia-
tions.
Regarding the issue of whether the remaining unfair
labor practices by their very nature obstructed collec-
tive-bargaining negotiations so as to have the necessary
effect of prolonging the strike, the record, for the rea-
sons I have found supra, reveals that Respondent's uni-
lateral conducts' and its statement to four strikers that
Respondent would never sign a contract with the Union,
Si Of course, the only unilateral conduct relevant to this issue is the
conduct that effected the Respondent's Colorado Springs employees.
370
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
did not contribute to the continuing deadlock in the ne-
gotiations.
Based on the foregoing, I find that Respondent's unfair
labor practices did not prolong the June 18, 1981 eco-
nomic strike. I therefore shall recommend that this alle-
gation be dismissed.
CONCLUSIONS OF LAW
1. Respondent is an employer engaged in commerce
within the meaning of Section 2(6) and (7) of the Act.
2. The Union is a labor organization within the mean-
ing of Section 2(5) of the Act.
3. Respondent's employees, excluding supervisors as
defined in the Act, employed in the job classifications
covered by the 1978-1981 highway, heavy engineering,
utility and building construction agreement and em-
ployed by Respondent at its Colorado Springs, Colorado
facility, constituted an appropriate bargaining unit.
4. Respondent's employees, excluding supervisors as
defined in the Act, employed in the job classifications
covered by the 1978-1981 highway, heavy engineering,
utility and building construction agreement and em-
ployed by Respondent in the State of Colorado other
than at Respondent's Colorado Springs facility, consti-
tute an appropriate bargaining unit.
5. At all times material the Union has been the collec-
tive-bargaining representative of all the employees in the
aforesaid bargaining units for the purposes of collective
bargaining within the meaning of Section 9(a) of the Act.
6. Respondent has engaged in unfair labor practices
within the meaning of Section 8(a)(1) of the Act by tell-
ing employees represented by the Union at its Colorado
Springs facility that Respondent would never sign a col-
lective-bargaining agreement with the Union and that if
the employees wanted to continue being employed by
Respondent they would have to resign from the Union.
7. Respondent has engaged in unfair labor practices
within the meaning of Section 8(a)(5) and (1) of the Act
by taking unilateral action without affording the Union
an opportunity to bargain, as follows: Instituting a new
health and welfare program, the Colorado contractors
association health and welfare program, for its Colorado
Springs employees represented by the Union; increasing
the hourly wages of the strikers at the Colorado Springs
facility who returned to work, by paying them an addi-
tional 40 cents an hour that previously was contributed
by Respondent on behalf of the employees to the vaca-
tion trust fund established in the 1978-1981 highway,
heavy engineering, utility and building construction
agreement.
8. Respondent has engaged in unfair labor practices
within the meaning of Section 8(a)(5) and (1) of the Act
by dealing directly with employees represented by the
Union at its Colorado Springs facility about matters sub-
ject to collective bargaining, thereby bypassing their ex-
clusive collective-bargaining representative.
9. Respondent has engaged in unfair labor practices
within the meaning of Section 8(a)(5) and (1) of the Act
by engaging in unilateral conduct without affording the
Union an opportunity to bargain, as follows: Ceased
making contributions on behalf of the employees in the
unit described in paragraph 4 above, to the health and
welfare, pension and vacation trust funds established by
the 1978-1981 highway, heavy engineering, utility and
building construction agreement; discontinued the health
and welfare program under which these employees cov-
ered by the aforesaid health and welfare trust fund had
been receiving benefits and in its place substituted a new
health and welfare program, the Colorado contractors
association health and welfare program.
10. The aforesaid unfair labor practices affect com-
merce within the meaning of Section 2(6) and (7) of the
Act.
11. Respondent has not otherwise violated the Act.
THE REMEDY
In order to effectuate the policies of the Act, I fmd it
necessary that Respondent be ordered to cease and desist
from the unfair labor practices found and from like or re-
lated invasions of the employees ' Section 7 rights, and to
take certain affirmative action.
Regarding
Respondent's illegal
unilateral
conduct
committed in the Colorado Springs unit of instituting the
Colorado Contractors Association Health and Welfare
Program and increasing the wages of the returning strik-
ers by paying them monies which previously were paid
to the vacation trust fund, I have not provided for af-
firmative relief in the form of directing the Respondent,
at the Union's request, to discontinue these benefits and
to reinstate the preexisting situation. The reason for this
omission is that in the Colorado Springs unit the Re-
spondent has not been found to have illegally discontin-
ued the health and welfare program that the Colorado
contractors association health and welfare program re-
placed or that Respondent's cessation of contribution to
the vacation trust fund was illegal. Iny any event, I note
that there is a serious question of whether such affirma-
tive relief would be appropriate where , as I have found
supra, the Respondent after engaging in this unilateral
conduct at the Colorado Springs facility bargained to a
good-faith impasse. Compare NLRB v. Cauthorne, 691
F.2d 1023, 1025-1026 (D.C. Cir. 1982), with Allied Prod-
ucts Corp., 218 NLRB 1246 (1975 ). See also J. D. Luns-
ford Plumbing, 254 NLRB 1360, 1365-1366 (1981).
Having found that Respondent violated Section 8(a)(5)
and (1) of the Act by unilaterally discontinuing making
contributions on behalf of the non -Colorado Springs unit
employees to the pension, health and welfare , and vaca-
tion trust funds as required by the 1978-1981 highway,
heavy engineering,
utility
and building construction
agreement and by unilaterally discontinuing the health
and welfare program under which the non-Colorado
Springs unit employees covered by the aforesaid trust
fund had been receiving benefits and in its place unilater-
ally substituting the Colorado contractors association
health and welfare program, I shall recommend that Re-
spondent make whole these employees by paying all pen-
sion and vacation contributions to the trust funds that
have not been paid and that would have been paid but
for the unlawful conduct found herein' 52 and to continue
62 Since Respondent has provided the employees with alternative
health and welfare coverage in the form of the Colorado Contractors As-
Continued
SCHMIDT-TIAGO CONSTRUCTION CO.
371
such payments until such times as the Respondent nego-
tiates with the Union to a new contract or impasse. I
shall also recommend that Respondent make whole the
employees in the non-Colorado Springs unit, with inter-
est,ss for any expenses or loss of benefits they may have
incurred as the result of the Respondent's aforesaid
unfair labor practices. 54 Respondent will also be re-
quired to preserve and, on request, make available to au-
thorized agents of the Board all records necessary or
useful in determining compliance with the Order herein.
sociation Health and Welfare program , they would not benefit from a re-
quirement that Respondent now duplicate that coverage retroactively.
Such a requirement would be punitive. Accordingly, the remedial order
should not be construed to mcorporate such an order . See Wayne's Dairy,
223 NLRB 260, 266 (1976), and Hassett Maintenance Corp, 260 NLRB
1211 (1982).
as Any interest due on trust fund payments shall be made in accord-
ance with the criteria set forth in Merryweather Optical Co, 240 NLRB
1213 (1979) Interest on the remaining backpay sums shall be paid in the
manner prescribed in F W.
Woolworth Co., 90 NLRB 289 (1950), and
Florida Steel Corp, 231 NLRB 651 (1977). See generally Isis Plumbing
Co., 138 NLRB 716 (1962)
64 In measuring actual damages, employees should be reunbursed for
their actual costs For example, with respect to health and welfare ex-
penses the employees shall be reunbursed for only those costs that would
have been paid by the health and welfare program in existence under the
contractual health and welfare trust fund , minus costs that were actually
paid by Respondent's insurer, the Colorado contractors association health
and welfare program.
Having found the Respondent violated Section 8(aX5)
and (1) of the Act by unilaterally substituting the Colora-
do contractors association health and welfare program
for the health and welfare program that previously cov-
ered the non-Colorado Springs unit employees, I shall
recommend that Respondent be ordered to restore, on
the Union's written request, the health and welfare pro-
gram that was in effect previously and its contributions
on behalf of said program to the 1978-1981 highway,
heavy engineering,
utility
and building construction
agreement's health and welfare trust fund. In order to
allow the Union ample opportunity to consider whether
to request the reinstatement of the previous health and
welfare program and the accompanying trust fund con-
tributions, while not leaving the matter open indefinitely,
I shall recommend that the Union be required to make
its decision within 20 days of the date of the Board's de-
cision. Respondent will have 40 days after the receipt of
the Union's written request to replace the Colorado Con-
tractors Association Health and Welfare Program with
the previous program and to resume making its trust
fund contributions on behalf of that program. If the
Union makes no such request nothing contained herein
shall be construed as requiring Respondent to revoke the
Colorado contractors association health and welfare pro-
gram.
[Recommended Order omitted from publication.]