286 NLRB 453
Amoco Oil Co.
AMOCO OIL CO.
453
Amoco Oil Company and Gary L. Hockman. Case
17-CA-9735
30 September 1987
DECISION AND ORDER
BY CHAIRMAN DOTSON AND MEMBERS
JOHANSEN AND BABSON
On 19 May 1981 Administrative Law Judge Wil-
liam L. Schmidt issued the attached decision. The
Respondent filed exceptions and a supporting brief.
The National Labor Relations Board has delegat-
ed its authority in this proceeding to a three-
member panel.
The Board has considered the decision and the
record in light of the exceptions and brief and has
decided to affirm the judge's rulings, findings, and
conclusions only to the extent consistent with this
Decision and Order.
This case was submitted for decision on a stipu-
lated record. The pertinent facts are as follows.
The Respondent (Amoco or the Company) and
Oil, Chemical and Atomic Workers International
Union Local 5-672 (the Union) were parties to a
collective-bargaining agreement covering approxi-
mately 500 production employees at the Respond-
ent's Sugar Creek, Missouri refinery, the only facil-
ity involved here, effective by its terms from 8 Jan-
uary 1979 to 7 January 1981. Pursuant to contract
reopener provisions, several negotiating
sessions
were held regarding certain economic items not
otherwise involved here. When the parties failed to
reach agreement, the Union commenced a lawful
economic strike effective 4 p.m., 8 January 1980,1
which continued until 1 April. Amoco maintained
a "closed gate" policy for the entire period of the
strike, whereby no member of the bargaining unit
was permitted to work, irrespective of whether he
or she was willing and able to do so. Thus, no bar-
gaining unit employees performed or were permit-
ted to perform any work for the Company from 8
January through 1 April, and the Company operat-
ed the refinery solely with supervisors and other
nonbargaining
unit
employees throughout this
period.2
i All dates hereafter are 1980 unless otherwise designated
2 In Amoco Oil Co., 285 NLRB 918 (1987) (Case 14-CA-13423 et al.)
and Amoco Oil Co, 286 NLRB 369, issued this day (Cast 5-CA-12159 et
al.; Amoco 11), we noted that Amoco's closed-gate policy had its genesis,
in part, in strikes at two facilities in the late 1950s, dung which Amoco
had permitted unit employees to cross picket lines and work. Uncontro-
verted testimony in the above cases showed that violence ensued and that
friction and ostracism of employees who crossed those picket lines still
existed at the time of the hearings in those cases . As we further noted
there, the closed-gate policy was also designed to ensure that the refinery
can schedule personnel to "safely and efficiently " run the around-the-
clock operation during a strike We note that the facility involved in this
case is one of those referred to in those cases
We further note that the
General Counsel does not contend that the closed -gate policy is in any
In addition to contractual provisions, the Re-
spondent provides several benefit plans that are
maintained by Amoco's parent company, and are
available to employees of the parent company and
its subsidiaries, including Amoco. Included among
those is the Sickness and Disability (S&D) and Oc-
cupational Illness and Injury (OI&I) Plan. (The
benefits of that plan are also referred to herein as
S&DB payments.) A booklet entitled "Employee
Benefit Plans" summarizes the plans for employees'
convenience, although it specifically does not fully
describe all of their provisions. The booklet notes,
inter alia, that employees are not eligible for S&D
and OI&I benefits while on vacation, leave of ab-
sence, suspension, or layoff, and that employees
will be eligible for such benefits "at the time you
are otherwise due to return to work." The parties
stipulated that the Respondent has at all times ad-
ministered the plan so that employees are eligible
for S&DB payments only when they are (1) sick
and disabled and (2) they are prevented by reason
of such sickness or disability from working a shift
they otherwise would be scheduled to work.
After receiving the Union's strike notice, the Re-
spondent on 7 January sent a letter to all bargain-
ing unit employees, informing them of the strike
notification, that the Respondent intended to oper-
ate the refinery with supervisory and unrepresented
personnel, that no work would be made available
to employees in the bargaining unit, and detailing
the status of compensation and other benefits while
they were not working. On 9 January, the day
after the strike began, Amoco sent a letter to all
bargaining unit employees receiving S&DB pay-
ments, informing them that until work was made
available, payments would be suspended in accord-
ance with the terms of the plan. On 28 March the
Union and the Respondent entered into a settle-
ment agreement that provided, inter alia, (1) that
the strike would end the day after the employees
ratified the settlement, (2) that "In accordance with
existing Company practice, an employee who is
unable to work on his first scheduled return-to-
work day after the Strike because of sickness or ac-
cident" would receive benefits under the plan, and
(3) that the Union would withdraw all unfair labor
practice charges, lawsuits, and/or grievances relat-
ing to, inter alia, S&D benefits.3 Effective on 1
manner unlawful and we express no opinion on the lawfulness of this
policy or its application to the Sugar Creek refinery
3 A "blanket" charge, which had been filed by the Union on 28 Janu-
ary, was withdrawn on 3 April The Respondent in its exceptions renews
its contentions that the Union and the Respondent settled the legal issue
presented here at the bargaining table in accord with past practice, that
the General Counsel's underlying theory cannot reasonably contradict
what the parties themselves had stipulated that practice to be, and that
Continued
286 NLRB No. 39
454
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
April, concurrent with its lifting of the closed gate,
the Company resumed S&D payments to those em-
ployees eligible for such payments under the plan.
The sole issue, as alleged in the complaint, is
whether the Respondent violated Section 8(a)(3)
and (1) of the Act by suspending S&D and OI&I
payments from 8 January to 1 April for employees
who had been receiving them prior to 8 January.4
The judge concluded that the Respondent "auto-
matically reclassified" employees as strikers, and
that "contrary to the allegation of the complaint,"
affected employees should be made whole for "all
losses" that he deemed attributable to discriminato-
ry conduct by the Respondent. In so doing, he
relied in part on the Board's decision in Emerson
Electric.5 For the reasons indicated below, we do
not adopt the judge's analysis and shall dismiss the
complaint.6
In Texaco, Inc., 285 NLRB 241 (1987), the Board
extensively reviewed the analyses of both Board
and court cases in this area, and expressly over-
ruled the "coercive effects" theory of Emerson
Electric. Rather, the Board (at 245) concluded that
the "question of whether an employer violates Sec-
tion 8(a)(3) or (1) by refusing to continue benefit
payments to a disabled employee on commence-
ment of a strike will be resolved by application of
the
Great Dane test for alleged unlawful con-
duct."7
the Board should give effect to that agreement. We find it unnecessary to
pass on these contentions here, in light of our disposition of the case on
other grounds. But see Texaco, Inc, 273 NLRB 1335 (1985).
4 The Respondent's suspension of other benefits, or suspension of cer-
tain company-paid insurance premiums, is not alleged to be unlawful.
5 Emerson Electric Co, 246 NLRB 1143 (1979), enfd as modified 650
F.2d 463 (3d Cir. 1981), cert. denied 455 U.S 939 (1982)
6 The Respondent in its exceptions contends, inter alts, that the judge
misapprehended certain evidence, failed to consider other stipulated evi-
dence in his analysis, erred in relying on a finding of fact made by an-
other administrative law judge in a different proceeding; and made find-
ings outside the scope of the complaint While we find meet in certain of
the Respondent's exceptions, we find it unnecessary to treat them specifi-
cally, in light of the grounds for dismissal of the complaint set forth infra.
In so doing, we do not adopt certain gratuitous comments by the judge
at par. 7 and fn. 10 of the "Additional Findings and Conclusions" section
of his decision.
7 As the Board noted in Texaco, supra, at 243 fn 12, citing 388 U S at
34
More recently, in Amoco Oil Co., 285 NLRB 918
(1987) (Case 14-CA-13423 et al.), the Board, ap-
plying the principles articulated in
Texaco,
the
basic facts virtually indistinguishable from those in
this case, reversed the judge's findings that the Re-
spondent violated the Act and dismissed the com-
plaint.
In concluding there that the Respondent had
come forward with legitimate and substantial busi-
ness justification for its suspension of benefits suffi-
cient to rebut a prima facie case made out by the
General Counsel, the Board relied on the follow-
ing.
The Respondent's S&D and OI&I plan is de-
signed to protect wages that disabled employees
would otherwise have earned. The employee bene-
fit handbook notes certain situations in which pay-
ments are discontinued, including, inter alia, leaves
of absence, vacations, and layoffs; and provides
that benefits will resume when a disabled employee
is "otherwise due to return to work." The Board
concluded that the listed events illustrated the gen-
eral requirement that "work must be available in
order for a disabled employee to be entitled to con-
tinued
payment of disability benefits."
(Amoco,
supra at 923.) The Board further cited undisputed
testimony there by the director of benefits plans
and personnel policy for the Respondent and its
parent company, that "this general requirement has
been applied by the Respondent consistently in the
past on a corporatewide basis to various situations
including lockouts." (Ibid.)
Finally, the Board found that the Respondent's
implementation of the plan's dual eligibility require-
ments-i.e., of being both disabled and scheduled
to work-was not discriminatory. Rather, it was
consistent "with the terms of the plan and the Re-
spondent's past practice with respect to disabled
employees for whom no work was available both
due to lockouts and for reasons other than a lock-
out." (Amoco, supra at 923.) Finally, the Board
found that there was no record evidence to support
a conclusion that the Respondent's conduct was in-
herently destructive of employee rights. (Ibid.)
That decision is controlling here.8 As in that case,
no work was available to represented employees
pursuant to the closed-gate policy, which has not
been alleged to be unlawful, regardless of employ-
ees'
union membership or participation in the
6 As noted above, the basic facts here are virtually indistinguishable
from those in Amoco, supra The events here involve the same corpor-
atewide plan (with minor details not relevant here ) and the same applica-
tion of the Respondent's closed-gate policy during a nationwide strike
called by OCAW International and its locals at several facilities of the
Respondent as well as certain other employers.
The Court in [NLRB v.] Great Dane [Trailers, 388 US 26 (1967),]
articulated the following test for alleged unlawful motivation
First, if it can reasonably be concluded that the employer's dis-
cnminatory conduct was "inherently destructive" of important
employee rights, no proof of an antiunion motivation is needed
and the Board can find an unfair labor practice even if the em-
ployer introduces evidence that the conduct was motivated by
business considerations
Second, if the adverse effect of the dis-
criminatory conduct on employee rights is "comparatively slight,"
an antiunion motivation must be proved to sustain the charge if
the employer has come forward with evidence of legitimate and
substantial business justifications for the conduct Thus, in either
situation, once it has been proved that the employer engaged in
discriminatory conduct which could have adversely affected em-
ployee rights to some extent, the burden is upon the employer to
establish that he was motivated by legitimate objectives since
proof of motivation is most accessible to him
AMOCO OIL CO.
strike. Accordingly, we shall dismiss the complaint
in its entirety.
ORDER
The complaint is dismissed.
Richard C. Auslander, Esq., for the General Counsel.
Stanley E. Craven, Esq. (Spencer, Fane, Britt & Brown), of
Kansas City, Missouri, and Robert M. O'Connell, Esq.,
of Chicago, Illinois, for the Respondent.
DECISION
STATEMENT OF THE CASE
WILLIAM L.
SCHMIDT, Administrative Law Judge.
This matter was submitted to me on the basis of a stipu-
lation executed by all parties on January 27, 1981. The
case is based on an original charge and an amended
charge filed by Gary L. Hockman (Charging Party), an
individual, and a complaint issued on behalf of the Gen-
eral Counsel, which alleges that Amoco Oil Company
(Respondent) violated Section 8(a)(1) and (3) of the Act
by discontinuing the payment of disability benefits to 10
workers during a 1980 strike at its Sugar Creek, Missouri
facility.' As will be more fully discussed below, the Re-
spondent's answer admits the preliminary allegations of
the complaint, but denies the commission of the alleged
unfair labor practices.2
On the entire record submitted herein and the timely
briefs filed by the General Counsel and the Respondent,
S I make the following
FINDINGS OF FACT
1. THE ALLEGED UNFAIR LABOR PRACTICES
A. The Events and Circumstances
This matter involves only the Respondent's facility lo-
cated at Sugar Creek, Missouri, where it is engaged in
the processing, nonretail sale, and distribution of petrole-
um and related products.4 At the times material, the Re-
' The charge was filed on June 12, 1980, and amended on July 7, 1980.
The complaint was issued by the Regional Director for Region 17 on
July 25, 1980.
2 The answer reflects that it was served on July 17, 1980 It also al-
leges that "some or all of the claims" are bare ed by Sec 10(b) of the Act
This affirmative defense was never explained or withdrawn. To the
extent that it is predicated on the statute of limitations contained in Sec
10(b), it lacks merit as the charge, as amended, is timely in all respects
a By order dated January 30, 1981 , I fixed the time for the filing of
bnefs by all parties In so doing, the request that the parties be permitted
to file reply briefs was granted and the time for the filing of reply briefs
was fixed at March 6 , 1981 The same order specifically provided that in
order to be timely filed and considered, brief s would have to be received
at the Division of Judges, Branch Office, Sari Francisco, California on or
before the date due The Respondent and the General Counsel filed
timely opening briefs, which have been carefully considered. The Gener-
al Counsel filed no reply brief The Respondent filed a reply brief reflect-
ing that it was mailed from Kansas City, Missouri, on March 6, 1981 It
was received on March 9, 1981 As the reply brief was not timely filed
and no motion was made for an extension of time in which to file or to
excuse the obviously late filing, it has not been considered
4 The Respondent admits that it is an employer engaged in commerce
within the meaning of Sec. 2(2), (6), and (7) of the Act and that it meets
the Board's discretionary jurisdictional standards on the basis of the
455
spondent's Sugar Creek facility was managed by G. R.
Helffrich, a supervisor and agent within the meaning of
Section 2(11) and (13), respectively, of the Act. The Re-
spondent and Oil, Chemical and Atomic Workers Inter-
national Union, Local No. 5-672 (the Union), are parties
to a collective-bargaining agreement applicable to certain
of the Respondent's Sugar Creek employees.5 By its
original terms, the collective-bargaining agreement is ef-
fective for the period from January 8, 1979, through Jan-
uary 7, 1981.6 The agreement-which was executed in
February 1979-contained a "contract reopener," which
granted the Union the right to strike during the term of
the agreement, but not prior to January 8, 1980, if the
Respondent and the Union could not successfully negoti-
ate certain economic terms.7
In the period immediately prior to January 8, 1980, 10
employees (including the Charging Party) were absent
from work and drawing benefits pursuant to the Sickness
and Disability and Occupational Illness and Injury Plan
(S&DB plan) maintained by the Respondent. The S&DB
plan and other fringe benefit plans are incorporated, in
effect, into the aforementioned collective agreement at
article XI, section 1. A booklet entered in evidence de-
scribes most of the fringe benefit plans specified in the
collective agreement.8 Among other things, this booklet
shows that in some instances, provision is made for the
continuation of the coverage by some fringe benefits
even though the employee is not actively working and in
at least one instance even when the employee is on an
excused leave without pay. Thus, under the description
of the comprehensive medical expense plan, which re-
quires an employee contribution only in the event a
spouse and a child are insured together with the employ-
ee or a dependent child between the ages of 19 and 25 is
insured with the employee, the following is provided:
Also, you may continue insurance under this plan
while you are on leave of absence (other than mili-
tary leave), suspension, or layoff by continuing your
required contributions.
direct inflow and direct outflow at the facility involved Accordingly, I
find that it would effectuate the purposes of the Act to assert jurisdiction
in this dispute
5 The Respondent admits that the Union is a labor organization within
the meaning of Sec 2(5) of the Act and I so find The unit specified in
the collective agreement is
All employees, including messengers, under the supervision of the
manager of the Sugar Creek, Missouri, refinery of the Respondent,
excluding supervisory, professional, clerical , office and plant protec-
tion employees
The term of the original agreement was extended for a period of I
year at the conclusion of the strike involved herein
' This and other findings herein related to the "reopener" are in
accord with the parties' stipulation The "reopener" provision is not self-
evident, however, in the copy of the collective agreement in evidence
8 In view of the result reached herein, a determination of which of the
benefit plans specified in the descriptive booklet in evidence here and
their precise operation with respect to the disabled employees is left to
the compliance stage of the proceeding
Suffice it to say that not all plans
described in the booklet are specifically named in art XI, sec
I This fact
does not necessarily appear to be controlling, however, as the January 7,
1980 letter to unit employees (discussed below) makes specific reference
to the employee stock ownership plan (which is not specified in art. XI)
in a manner that indicates unit employees also participated in that plan
456
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
Under the vacation policy, the following appears:
Absences with pay or Sickness and Disability
plan benefits or for military duty will not reduce
your vacation.
Under the savings plan, which is incorporated in the col-
lective agreement and which obliges the Respondent to
match a specified savings amount designated by the em-
ployee, the following appears:
If you are on an approved absence without pay
up to a limit of 30 consecutive calendar days, a Sav-
ings plan deduction will be made from your earn-
ings upon your return to work equal to what would
have been deducted if you had not been absent. If
you do not wish the deduction made, you must
advise the company in writing within 7 days after
you return to work.
The total absences for which you can make up
Savings plan deductions cannot exceed 75 sched-
uled workdays in a calendar year.
And under the retirement plan, the following appears:
If you are on an approved leave of absence with-
out pay for other then [sic] military service in
excess of 90 days, you will accumulate retirement
plan service for the regular hours of service that
you would have worked during the first 30 consec-
utive calendar days of each such absence. In any
one calendar year, the total retirement plan service
accumulated while so absent cannot exceed that ap-
plicable to 75 workdays.
The parties stipulated that, historically, the Respond-
ent has administered the S&DB plan in such a manner
that employees are eligible for S&DB payments only
when they are sick and disabled and they are prevented
by reason of such sickness or disability from working a
shift they otherwise would be scheduled to works How-
ever, a careful reading of the plan description in the em-
ployee booklet makes no reference to a broad "otherwise
scheduled to work" rule in describing the provisions of
the plan. Instead, eligibility is described in the following
manner:
What This Plan Provides
The Sickness and Disability and Occupational Ill-
ness and Injury plan pays the wages or salaries of
eligible employees in full or part when they are not
able to work because of sickness and disability. One
part of this plan applies to sickness or disability that
is unrelated to your job; the other applies to occu-
pational sickness or disability.
Who Is Eligible?
All regular wage and salary employees, in the case
of occupational sickness or disability, are covered
from the day they report to work. Non-occupation-
al sickness and disability benefits are available to
Hereinafter sometimes referred to as the "otherwise scheduled to
work" rule.
such wage or salary employees after a year of cred-
ited service.
Disqualifying circumstances under the S&DB plan (apart
from the years of service requirement) are described in
the following manner:
You are not eligible for benefits while you are on
vacation, leave of absence,
suspension, or layoff.
You will become eligible for these benefits at the
time you are otherwise due to return to work.
Benefits will not be paid for any disability result-
ing from intoxication, improper use of drugs, unlaw-
ful acts, or willful intent to injure yourself or an-
other person, or as a result of working for another
employer.
In another proceeding involving this Respondent's oper-
ation at another location, an administrative law judge
specifically found "the plan does not require being
scheduled for work as a necessary condition precedent to
eligibility." See Amoco Oil Co., JD-(SF)-109-80, slip op.
at 11 (1980).
Pursuant to the contract reopener provision, the Union
timely notified the Respondent of its desire to reopen the
agreement and negotiate with respect to a wage increase
and certain fringe benefits. There is no evidence that the
matters that the Union sought to negotiate pursuant to
the reopener in any way fell outside those matters that
were contemplated by the reopener. Several negotiating
sessions were held with regard to the issues raised by the
Union's reopening notice prior to January 8, 1980. There
is no evidence that those sessions produced an acceptable
agreement.
On the contrary, the parties' stipulation
shows that on January 8, 1980, at 4 p.m., the Union com-
menced a strike against the Respondent that continued
thereafter until April 1, 1980.
In apparent anticipation of strike action, the Respond-
ent, by a letter dated January 7, 1980, undertook to
advise all of its employees of the policies it intended to
implement in the event a strike occurred as threatened.
Apart from advising employees that they would not be
paid wages while they engaged in a strike, the letter goes
on to state that medical insurance premiums paid by the
Respondent would not be paid during strike; that in the
event a striker allowed his medical insurance to lapse,
satisfactory proof of good health would be required
before the individual could again participate in the plan;
that under the retirement plan, hours not worked during
the strike would not count as hours of service and peri-
ods of no earnings in the 3 years preceding retirement
would adversely affect the retirement benefit; that contri-
butions to the savings plan would be suspended during
the strike; that the period of no earnings during the strike
would adversely affect the allocation of stock under the
employee stock ownership plan; that S&DB benefits
would not be paid for a disability that began during the
period of the strike; that no vacations would be sched-
uled during the strike unless circumstances warranted
otherwise and that for each 30 consecutive days in
which employees were not working, the first 2 weeks of
their vacation would be reduced in accord with policy
AMOCO OIL CO.
457
concerning vacations; that employees would not be eligi-
ble for leaves for military reserve or militia duty during
the strike; and that no funeral or jury pay would be
granted during the strike . With respect to the group life
insurance and long-term disability insurance,
the Re-
spondent advised employees that it would continue its
regular contributions during the strike and advised em-
ployees that their portion of the premium for this insur-
ance would be required . In addition, the January 7 letter
advised the unit employees that the Respondent would
implement a lockout so that no work would be made
available to unit employees who might otherwise desire
to work. The letter advised those employees who desired
to work to notify the Respondent so that in the event a
decision was made to make work available to unit em-
ployees during the strike, they could be notified . There is
no evidence that any Sugar Creek employee (including
any of the disabled employees) transmitted their desire to
work during the strike.
Following the commencement of the strike, the Re-
spondent, by letter dated January 9, 1980, notified each
of the disabled employees as follows:
Today the OCAWIU, Local 5-672 commenced a
strike at the Sugar Creek refinery . This has necessi-
tated our establishing a staff program with supervi-
sory and unrepresented personnel so that operations
may continue safely, efficiently, and without inter-
ruption. Accordingly, at this lime no work has been
made available to employees in the bargaining unit
who might otherwise be willing to work.
Until such time as the strike ends or work is
made available to employees in the bargaining unit,
whichever occurs sooner, your current OI&I pay-
ments are hereby suspended in accordance with the
terms of the Plan. During the time these payments
are suspended, however, you will continue to re-
ceive your statutory workmen's compensation pay-
ments.
With respect to the status of your other forms of
compensation and benefits, I direct your attention to
my letter to all Sugar Creek refinery employees repre-
sented by OCAWIU, Local 5-672 dated January 7,
1980.
It is our earnest hope that this dispute will be
quickly resolved and normal operations can be im-
mediately resumed. [Emphasis added.]
Prior to the discontinuance of the S&DB benefits, the
Respondent made no investigation to determine whether
any of its disabled employees (who were all union mem-
bers in good standing) were engaging in any conduct ev-
idencing public support of the strike , or whether or not
they continued to be disabled.
During the course of the aforementioned strike, the
Respondent continued the operation of the refinery with
supervisors and nonunit employees. The Respondent, in
fact, implemented a lockout with respect to the bargain-
ing unit employees so that even if a unit employee de-
sired to work during the course of the strike , he or she
was not permitted to do so.
As noted above, the strike continued until April 1,
1980. The strike was concluded pursuant to a memoran-
dum of agreement entered into on March 28, 1980. That
agreement provides terms for the conclusion of the strike
as well as substantive terms of employment. With respect
to the former, the Union specifically agreed to withdraw
"all unfair labor practice charges . . . relating to benefits
such as . . . sickness and disability benefits." On April 3,
1980, the Union withdrew a pending unfair labor prac-
tice charge (Case 17-CA-9428) wherein it alleged, inter
alia, that the Respondent violated Section 8(a)(1), (3),
and (5) of the Act by suspending or terminating "acci-
dent and sickness benefits" and "disability benefits." In
addition, the agreement provides for the resumption of
the payment of S&DB benefits on the conclusion of the
strike. The agreement concludes with a provision provid-
ing that representatives of the Union "have accepted the
terms set forth as described herein." There follows two
signatures under the Respondent's name and seven signa-
tures under the Union's name, including the of one
"Lowell W. Rafferty." Although the General Counsel's
complaint includes a "Lowell Rafferty" among the al-
leged discriminatees, the Respondent made no alternative
argument herein that it had information to the effect that
the Rafferty alleged in the complaint actively participat-
ed in the strike or gave public support for the strike.
B. Additional Findings and Conclusions
The complaint here alleges that the Respondent violat-
ed Section 8(a)(1) and (3) of the Act by suspending the
S&DB plan payments of January 8, 1980, and from that
time until the first week in April 1980, failing and refus-
ing to make S&DB plan payments to the 10 employees
who had been receiving such benefits immediately prior
to the start of the Union's strike. In his brief, the General
Counsel asserts that by refusing to pay the S&DB bene-
fits to employees excused from work because they are
physically disabled when the able-bodied employees go
on strike in circumstances where there is no evidence
that the disabled employees actively participated in the
strike or publicly supported the strike constitutes unlaw-
ful discrimination. In support of that position, the Gener-
al Counsel relies on the Board's decision in
Emerson
Electric Co., 246 NLRB 1143 (1979), enfd. as modified
650 F.2d 463 (3d Cir. 1981).
The Respondent contends that Emerson is not applica-
ble here because, at the commencement of the strike, it
locked out all unit employees so that no work was
scheduled for the duration of a strike by those employ-
ees. The Respondent further argues that in order to be
eligible to receive S&DB benefits, employees must be
absent from work that they would otherwise be sched-
uled to perform because they are disabled or ill. As no
unit employee was scheduled for work during the strike
(even if they desired to work), the disabled employees
failed to meet all the criteria for the payment of benefits
under the S&DB plan during the 1980 strike. According-
ly, the Respondent asserts that it did not violate Section
8(a)(1) and (3) of the Act by refusing to pay S&DB ben-
efits as alleged in the complaint
458
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
In addition, the Respondent contends that this action is
barred by the agreement the Union entered into on
March 28, 1980, wherein the Union specifically agreed to
withdraw the unfair labor practice charge it had filed
concerning the S&DB benefits.
Contrary to the Respondent' s alternate argument, I
find for the reasons stated by Judge Ricci and the Third
Circuit in Emerson that this action is not precluded by
the Union's agreement on March 28 to withdraw a simi-
lar charge that it had filed. This argument is even less
compelling here than in Emerson, where the charge was
initiated by the Union that made a similar agreement
whereas the instant charge was filed by an aggrieved em-
ployee.
It is unmistakable that the Respondent, by its January
9, 1980 letter to the disabled employees undertook to
treat those employees as though they were strikers. This
is evident from the language of the letter that advised
the disabled employees that all benefits other than the
S&DB benefit would be handled in accord with its Janu-
ary 7, 1980 letter wherein the Respondent announced its
plan to discontinue fringe benefit contr;butions and cred-
its in the event of a strike. In these circumstances, the
Respondent's claim that it was contractually privileged
to discontinue the S&DB benefits is an unconvincing ex-
planation for its conduct. In a previous case, the Re-
spondent explained that it implemented its lockout policy
at several locations during the 1980 strike for the pur-
pose of maintaining industrial peace now in the future
because of events that occurred at this and another loca-
tion during and after a 1959 strike. (See Amoco Oil Co.,
285 NLRB 918 (1980).) Even assuming that the Re-
spondent's lockout objective is the product of a legiti-
mate concern for labor peace, it does not follow that this
objective is in any way enhanced by extending the lock-
out policy to employees already unable to work in any
instance because of their physical condition. When these
facts are considered together with the fact that the "oth-
erwise scheduled to work" rule is, at the very least, an
expansive reading of the actual qualifying and disqualify-
ing language in the S&DB plan, the fact that the Re-
spondent could apply additional pressure
against the
striking employees by lumping the disabled employees
into their ranks and the fact that the Respondent avoided
a significant expenditure by so construing the S&DB
plan, the Respondent's motives for discontinuing the
S&DB as well as other benefits to its disabled employees
appears significantly less pristine than its
argument
admits. On the contrary, I find that the clear preponder-
ance of the evidence here demonstrates that the Re-
spondent acted on January 9 to automatically alter the
status of those employees who had been excused from
work for medical reasons prior to the strike to the status
of strikers once the strike began.
Two of the three Board members who joined in the
conclusion that the employer in Emerson acted unlawful-
ly in discontinuing the payment of disability benefits at
the outset of a strike were of the view that an employer
was not justified in taking such action unless it had infor-
mation that the disabled employees had acted affirma-
tively to demonstrate public support for the strike.
Member Jenkins, the third participant in the Emerson
majority, was of the view that inasmuch as the majority
had concluded that the disability benefit was an accrued
benefit, a disabled employee was entitled to receive that
benefit for as long as he continued to be disabled and
without regard to whether he participated in strike ac-
tivities. The Third Circuit essentially adopted the latter
view and modified the Board's order accordingly. To
date, the Board has not indicated whether it now acqui-
esces in the view of the Third Circuit. I am bound in my
considerations by the precedent of the Board until the
Board acts otherwise or the Supreme Court rules other-
wise. Iowa Beef Packers, 144 NLRB 615 (1963).
Because of the variance in the analytical approach be-
tween the Board and the Third Circuit, I deem it essen-
tial to explain what I perceive to be material differences
between this case and Emerson. In Emerson, the sole
focus of the inquiry concerned the denial of disability
benefits. Here, the Respondent's January 9 letter leaves
no doubt that the Respondent acted to treat the disabled
employees as strikers in all respects. On the basis of the
language in that letter, it may be reasonably inferred that
disabled
employees here suffered losses significantly
beyond the benefit provided in the S&DB plan. What-
ever else they may have lost, the discriminatory act in
this case is the Respondent's action automatically reclas-
sifying its disabled employees as strikers and in this cir-
cumstance, I fail to perceive why it is necessary to ana-
lyze whether each benefit lost by each disabled employee
was accrued or not as the employee should be entitled to
be made whole for all losses suffered as a result of that
discriminatory act. i ° With the possible exception of Raf-
ferty, there is no evidence that any of the discriminatees
engaged in any activities supportive of the strike. Hence,
entirely apart from the fact that I am bound by the exist-
ing Board precedent, it would seem to make no logical
sense in this case to utilize the accrued benefit analytical
approach unless the Board desires to return, sub silentio,
to the presumption made in Southwestern Electric Power
Co., 216 NLRB 522 (1975), that all disabled union mem-
bers become strikers when their union calls a strike. Ac-
cordingly, contrary to the allegation of the complaint, I
find that the Respondent here violated Section 8(a)(1)
and (3) of the Act by treating the 10 disabled employees
named in the complaint as strikers from the outset of the
strike in the absence of information that any of them
acted affirmatively to demonstrate public support for the
strike. Emerson Electric, supra. Having so found, I shall
recommend that those individuals be made whole for all
losses suffered as a result of the discrimination against
them and not merely the loss incurred from the denial of
disability benefits.
The record here is not sufficient to conclusively deter-
mine if the Rafferty named in the complaint is the same
10 In my judgment, this case illustrates the shortcomings of the ac-
crued benefit approach as a legal analytical tool in cases of this nature.
Where, as here, the Respondent's vacation plan provides that employees
receiving S&DB benefits continue to accrue vacation credits, it does not
require a great deal of imagination to perceive of a situation where a
sinking union's picket line could be manned entirely by disabled employ-
ees entitled to receive vacation credits Such an anomalous result is en-
tirely predictable if these problems are analyzed strictly from a contrac-
tual point of view without any regard to the impact of Sec. 7 of the Act.
AMOCO OIL CO.
459
Rafferty who appears as a union signatory to the March
28 agreement . Be that as it may, I find and conclude that
active negotiating committee members are tantamount to
spokespersons for the economic strikers and are making
common cause with the economic strikers . Accordingly,
the make-whole remedy recommended herein will specif-
ically preclude negotiating committee
members from
being made whole on and after the date of active partici-
pation on the Union's negotiating committee during the
course of the 1980 strike . The determination of the iden-
tity of any such individual and 1 he commencement of
their active participation on the Union 's negotiating com-
mittee is left to the compliance stage of the proceeding.
II. THE EFFECT OF THE UNFAIR LABOR PRACTICE ON
COMMERCE
The unfair labor practices of the Respondent found to
exist in section I, above, occurring in connection with
the Respondent's operations described therein, have a
close, intimate, and substantial relation to trade, traffic,
and commerce among the several States and tend to lead
to labor disputes burdening and obstructing commerce
and the free flow of commerce.
Rafferty or others actively participated on the Union's
negotiating committee, the Respondent's obligation to
make them whole shall be limited to any period preced-
ing such active participation . The computation of back-
pay herein shall be in the manner provided by the Board
in F.
W.
Woolworth Co., 90 NLRB 289 (1950), with in-
terest as provided by the Board in
Olympic Medical
Corp., 250 NLRB 146 (1980), and Florida Steel Corp., 231
NLRB 651 (1977). And see, generally, his Plumbing Co.,
138 NLRB 716 (1962). To the extent that it may be de-
termined in the compliance stage of this proceeding that
the Respondent must reimburse any trust fund in order
to fully make the Charging Party whole for their losses,
interest on such amounts shall be determined in accord-
ance with the Board's discussion of that question in Pull-
man Building Co., 251 NLRB 1048 (1980), and cases
cited therein. It is also recommended that the Respond-
ent be ordered to post the attached notice to employees
[omitted from publication] at its Sugar Creek, Missouri
refinery and to thereafter notify the Regional Director
for Region 17 of the steps that it has taken to comply
with the recommended order [omitted from publication]
entered hereinafter.
THE REMEDY
Having concluded that the Respondent has violated
the Act in the manner specified above, it is recommend-
ed that the Respondent be required to cease and desist
therefrom and to take certain affirmative action designed
to effectuate the purpose of the Act.
Having concluded that the Respondent treated those
10 employees who were excused from work for medical
reasons when the Union's strike commenced on January
8, 1980, as strikers in all respects, it is recommended that
the Respondent be required to make those employees
whole for all the losses they suffered as a consequence of
the Respondent's action in this regard . To the extent that
Stanley Johnson may have retired on February 1, 1980,
and the Charging Party may have been released by his
physician to return to work on March 3 , 1980, the period
for which the Respondent is obliged to make those two
employees whole shall be so limited . To the extent that
CONCLUSIONS OF LAW
1. The Respondent is an employer within the meaning
of Section 2(2) of the Act, engaged in commerce or a
business affecting commerce within the meaning of Sec-
tion 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. By automatically altering the employee status of
Stanley Johnson,
William
Duncan,
Danny
Maxwell,
Alice Ledbetter, C. Miller, Robert Wysong, Lowell Raf-
ferty, Tom Harrison, John Lucas Jr., and Gary Hock-
man on January 8 , 1980, from that of employees excused
from work for medical reasons to that of employees en-
gaged in a strike against it, the Respondent has violated
Section 8(a)(1) and (3) of the Act.
4. The aforesaid unfair labor practices affect commerce
within the meaning of Section 2(6) and (7) of the Act.
[Recommended order omitted from publication.]