296 NLRB 450
The Red Food Stores, Inc., Premier Investment Properties, Inc., And Corker Development Corp.
450
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
The Red Food Stores, Inc., Premier Investment
Properties, Inc., and Corker Development Cor-
poration
and
United
Food and Commercial
Workers International. Case 10-CA-21677
August 31, 1989
DECISION AND ORDER
BY CHAIRMAN STEPHENS AND MEMBERS
CRACRAFT AND DEVANEY
On December 15, 1986,
Administrative
Law
Judge Lawrence W. Cullen issued the attached de-
cision. The General Counsel and the Charging
Party filed exceptions and supporting briefs, and
the Respondents filed a brief in opposition to the
exceptions.
The National Labor Relations Board has delegat-
ed its authority in this proceeding to a three-
member panel.
The Board has considered the decision and the
record in light of the exceptions and briefs and has
decided to affirm the judge's rulings, findings, and
conclusions as modified, and to adopt the recom-
mended Order.
The Respondent Red Food Stores , Inc. operates
three grocery stores in the Knoxville, Tennessee
area.' The Red Food Store in Knoxville proper is
part of a small strip shopping center, consisting of
approximately nine other retail establishments, that
is owned by Respondent Premier Investment Prop-
erties, Inc. The Red Food Store faces Kingston
Pike, which is a major four-lane thoroughfare with
additional turn lanes. Traveling west on Kingston
Pike, a right-hand turn lane of 40-50 feet leads to a
private road that becomes the eastern entrance to
the store. Continuing along Kingston Pike, the
western entrance to the shopping center is reached
by turning right from Kingston Pike onto Peters
Road; the shopping center entrance, which has a
traffic light, is on the right. A parking lot for pa-
trons of the shopping center occupies most of the
area between the stores and the adjacent thorough-
fares.
A second Red Food Store is located in Mary-
ville, Tennessee, in the center of a strip shopping
center that is owned by Respondent Corker Devel-
opment Corporation, and contains approximately
six other retail establishments. The shopping center
is surrounded by a parking lot that is adjacent to a
heavily traveled four-lane highway that narrows to
two lanes as it approaches the stores . There are no
separate turn lanes into the parking lot.
A third Red Food Store, which operates under
the name "Super Saver," is located in Alcoa, Ten-
' Red Food operates a total of approximately 50 stores in Tennessee,
Georgia, and Alabama
nessee, a city adjacent to Maryville, in a freestand-
ing building that is owned by Red Food. The area
in front and to the right of the store is used for
parking; the parking area in front of the store ad-
joins a four-lane highway. There are no separate
turn lanes into the parking area . It is approximately
100 feet from the highway to the front of the store.
Red Food, whose employees are not unionized,
was acquired by a French corporation , Promodes
S.A., in 1980. On March 27, 1986,2 the Union
began to picket and handbill at the three Red Food
Stores described above . 3 Six pickets were stationed
at each store, and the picketing and handbilling
were conducted in the parking lots and on the side-
walks adjoining the storefronts where Red Food
and Super Saver displayed various items for sale.4
The pickets carried signs stating that Red Food
and Super Saver were "unfair" and that they paid
"benefits and wages which are inferior to benefits
and wages paid to union employees in the area."
The signs also stated, "We are not asking any em-
ployees to honor this line," and included the name
of the Union. Additionally, during the first days of
the picketing, the pickets carried signs informing
the public that Red Food was foreign owned.
Each of these subjects-wages, benefits, and for-
eign ownership-was addressed in the handbills
distributed by the pickets throughout the course of
the Union's activities. The handbills, which con-
tained a picture of comedian Vicki Lawrence as
"Mama," read as follows:
1
PARLEZ-VOUS "UNEMPLOYMENT"?
Take a lesson in foreign affairs from Mama.
Mama says : "Listen, lamebrains, we've got a
problem. It's foreign-owned stores.
We've got enough trouble with imports
taking jobs away from American workers. .
We don't need to import supermarkets, too.
Especially when those stores could cause our
neighbors working at other supermarkets here
in the Knoxville area to lose their jobs. Re-
member that the next time you think about
shopping at foreign-owned Red Food/Super
Saver."
Don't be fooled. Red Food/Super Saver pay
benefits and wages which are inferior to bene-
fits and wages paid to union employees in the
area.
2 All dates are in 1986 unless otherwise indicated.
a At approximately the same time, the Union commenced a similar
campaign against the Food Lion grocery chain. Like Red Food, Food
Lion is foreign owned and its employees are not unionized.
4 The Red Food Stores permitted various civic and commercial organi-
zations to place advertisements on store windows and on the inside bulle-
tin boards.
296 NLRB No. 62
RED FOOD STORES
451
LISTEN TO MAMA. BE AMERICAN.
SHOP AMERICAN. DON'T SHOP AT
RED FOOD/SUPER SAVER.
During this period of time the Union also publi-
cized its "Be American. Shop American" campaign
through several television and radio commercials in
the Knoxville area. Specifically, from March 26
through April 15, the Union advertised in a total of
166 30-second spots on 2 Knoxville television sta-
tions and 4 Knoxville radio stations , at a total cost
of $22,420. The commercials featured Vicki Law-
rence urging customers not to shop at foreign-
owned "supermarkets." No specific stores were
named, although French names and phrases ap-
peared throughout some of the messages.5
On March 27, the day the Union began picketing
the Red Food Stores, representatives of Red Food
at each of the three stores asked the pickets to
leave and threatened to take legal action if they did
not do so. The pickets, however, refused to move
from the parking lots and sidewalks adjoining the
storefronts, and the following day the Respondents
obtained injunctive relief against the Union in state
court. Thereafter, the Union conducted its activity
at the perimeters of the three Red Food Stores
until June 16.6
There are no sidewalks on the perimeter of the
Knoxville and Maryville stores; the Union picketed
on the grassy areas separating the parking lots from
the adjoining thoroughfares.7 At the Alcoa store,
the Union picketed on the public sidewalk adjacent
to the parking lot.8
Union International Representative Dan Eaker,
who was involved in organizing the Union 's activi-
ties at the Red Food Stores, testified that the pe-
rimeter picketing was less effective than picketing
near the customer doors . Specifically, Eaker testi-
fied that the Union could not effectively handbill at
the perimeter entrances to the parking lots because
virtually all customers entered the lots by car, and
the police had threatened arrest if traffic were ob-
structed. Eaker also testified that it was difficult to
talk to customers from the perimeters of the stores
because of the noise from the highways . He further
stated that from the perimeters of the Knoxville
and Maryville strip center stores, customers of Red
Food could not be readily distinguished from cus-
tomers of the other shops.
8 The judge erroneously found that the commercials specifically men-
tioned the Red Food Stores by name.
8 After Food Lion obtained injunctive relief against the Union, all
picketing and handbilling at the Food Lion stores ceased.
7 At the Knoxville store, the perimeter picketing occurred along Peters
Road as well as below an embankment along the more heavily trafficked
Kingston Pike.
8 The Union employed a total of 15 to 20 pickets at $4 per hour for 40
hours per week.
The judge analyzed the access issue here under
Fairmont Hotel,
282
NLRB 139 (1986), which
issued after the hearing in the instant case. The
judge initially found that the Union's picketing and
handbilling activities were organizational in nature.
He based his finding on the General Counsel's fail-
ure to demonstrate that the Union had undertaken
any investigation to determine if the Red Food
Stores paid substandard wages and benefits , noting
that there was, in fact, evidence to the contrary.9
The judge also inferred an organizational purpose
from the lack of evidence of a "coordinated ongo-
ing national campaign" conducted by the Union
against foreign-owned supermarkets generally. In
this regard, he found that the Union 's campaign
was limited to the Knoxville area and appeared to
be directed only at foreign-owned stores that were
not unionized.10 Further characterizing the Union's
message against foreign ownership as an appeal to
"nativistic prejudice," the judge found that the
Union's effort to encourage consumers to boycott
the Red Food Stores because of their foreign own-
ership is contrary to public policy and therefore
not protected under Section 7 of the Act. 11 More-
over, the judge found that the foreign-owned
aspect of the Union's campaign was so enmeshed
with its overall organizational campaign as to pre-
clude any protection under Section 7. Finally, even
assuming that the Union's picketing and handbilling
activities were protected by Section 7 so as to re-
quire a balancing of the rights asserted , the judge
found that the Respondents' property rights should
prevail based on the public policy considerations
mentioned above, the economic harm potential to
Red Food, the interest of Respondents Premier and
Corker in Red Food's financial stability, and the
Union's ability to effectively communicate its mes-
sage through the media and from the perimeter.
The judge therefore recommended that the com-
plaint be dismissed. We affirm the judge's conclu-
8 The judge erroneously found that Red Food's vice president, James
Bowen, testified that both wages and benefits at Red Food were higher
than those at another grocery store in the area. The record indicates that
Bowen, although testifying that Red Food pays higher wages than A &
P, simply stated regarding benefits that Red Food has an "excellent" in-
surance plan and a "good" pension plan.
10 As further evidence of a lack of an organized national campaign, the
judge noted that the Union withdrew from Food Lion immediately after
being enjoined from the premises, but continued to picket the Red Food
Stores for a period of 3 months after injunctions were obtained.
i i In support of this finding the judge cited the Convention of Estab-
lishment between France and the United States, 11 US T 2398, which
encourages mutual investment by citizens of each country in the country
of the other, Title VII of the Civil Rights Act of 1964 , which prohibits
discrimination because of national origin; and
YKK (U.S.A.). Inc., 269
NLRB 82 (1984), in which the Board set aside a representation election
based on, inter alia, appeals to racial and national origin prejudice on
matters unrelated to election issues.
452
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
Sion that the Respondents did not violate the Act,
but we do so on the basis of the following analysis.
Subsequent to the judge's decision, the Board
issued
Jean
Country,
291
NLRB 11 (1988), in
which it reevaluated the analytical approach for re-
solving conflicts between Section 7 and private
property rights set forth in Fairmont Hotel, above,
and clarified that the availability of reasonable al-
ternative means is a factor that must be considered
in every access case in which a legitimate property
interest and a Section 7 right must be accommodat-
ed.12 The Board further held:
Accordingly, in all access cases our essential
concern will be the degree of impairment of
the Section 7 right if access should be denied,
as it balances against the degree of impairment
of the private property right if access should
be granted. We view the consideration of the
availability of reasonably effective alternative
means as especially significant in this balancing
process. In the final analysis, however, there is
no simple formula that will immediately deter-
mine the result in every case . [Id. at 14.]
The Board in Jean Country found that the fol-
lowing factors may be relevant to assessing the
weight of a property right: the use to which the
property is put; the restrictions, if any, that are im-
posed on public access to the property; and the
property's relative size and openness . The factors
that may be relevant to the consideration of a Sec-
tion 7 right include: the nature of the right; the
identity of the employer to which the right is di-
rectly related (e.g., the employer with whom a
union has a primary dispute); the relationship of
the employer or other target to the property to
which access is sought; the identity of the audience
to which the communications concerning the Sec-
tion 7 right are directed; and the manner in which
the activity related to that right is carried out. Fi-
nally, factors that may be relevant to the assess-
ment of alternative means include : the desirability
of avoiding the enmeshment of neutrals in labor
disputes; the safety of attempting communications
at alternative public sites; the burden and expense
of nontrespassory communication alternatives; and
the extent to which exclusive use of the nontrespas-
sory alternatives would dilute the effectiveness of
the message.
12 In reaching this conclusion the Board emphasized that , under the
Supreme Court's decision in NLRB Y. Babcock & Wilcox Co., 351 U.S.
105 (1956), and Hudgens v. NLRB, 424 U.S 507 (1976), the Board is
"charged with seeking to avoid the 'destruction' of [Sec 7 and property]
rights, if at all possible, and with permitting infringements on one right
only to the extent necessary to maintain the other " Jean Country, supra
at 12-13
Applying the Jean Country analysis to this case,
we initially find regarding the nature of the Re-
spondents' property interests that Respondent Red
Food owns the Alcoa store and the land on which
it is located. Respondent Red Food also has lease-
hold interests in the Knoxville and
Maryville
stores, and the shopping centers in which these
stores are located are owned by Respondents Pre-
mier and Corker, respectively. We therefore find
that the Respondents' conduct with respect to the
union pickets was based on legitimate property in-
terests.13
Regarding the factors relevant to assessing the
weight of the Respondents' property rights, we
note that all the stores are open to the public with-
out substantial limitation . Access to the parking
lots adjacent to the stores is not restricted and the
lots are not enclosed by fences or other barriers.
The fact that the Respondents permit various orga-
nizations to advertise on store windows and bulle-
tin
boards does not significantly diminish the
strength of the property rights asserted. Although
there are differences in the relative strengths of the
freestanding and strip shopping center stores, we
find that the Respondents' property rights at each
of the locations are not insubstantial . See Mountain
Country
Food Store,
292
NLRB 967, 968-969
(1989).
Next, examining the nature of the Union's con-
duct, we note that the language on the Union's
picket signs communicated an area standards objec-
tive. Further, the Union publicized its simultaneous
"Be
American.
Shop
American"
campaign on
picket signs, in handbills, and in the media as an in-
formational protest directed at customers of the
Red Food Stores.
Area standards activity, a form of consumer pub-
licity, is protected by Section 7 because a union has
a legitimate interest in protecting the wage stand-
ards of its members who are employed by competi-
tors of a picketed employer. Area standards picket-
ing is, however, protected to a lesser extent than
activity that furthers a "core" purpose of the Act.
See Sears, Roebuck & Co. v. Carpenters, 436 U.S.
180, 207 fn. 42 (1978). Assuming without deciding
that the Union's conduct in this case is protected
13 The General Counsel contends that on March 27 Respondent Red
Food acted in conjunction with Respondents Corker and Premier in
asking the pickets to move from the parking lots and storefront side-
walks. On the other hand, the Respondents contend that although Corker
and Premier joined Red Food in petitioning the state court for injunctive
relief against the Union, the only demand to leave the Respondents' prop-
erty was made by Red Food . Although not addressed by the judge, in
view of our disposition of the case we find it unnecessary to reach issues
regarding any separate liability of the Respondents.
RED FOOD STORES
453
area standards/informational activity, 14
we find
that the right asserted falls at a relatively weak
point along the continuum of possible activities
protected by Section 7.
Next to be addressed is the availability of reason-
able effective alternative means of communication.
Considering the Union 's conduct as having an area
standards/informational objective, we find that its
target audience was primarily the customers of the
Knoxville, Maryville, and Alcoa Red Food Stores.
For the reasons set forth below, we find that the
General Counsel has not demonstrated that the al-
ternatives employed by the Union-picketing and
handbilling on the public property at the perim-
eters of the stores and advertising through the
media-were not effective alternatives.
First, we note that the Union picketed and hand-
billed at the perimeters of the stores for approxi-
mately 3 months. The pickets covered the entire
lengths of the stores'
perimeters,
including the
areas near the driveway entrances to the stores.
Regarding the Union's contention that it could not
effectively handbill from the perimeters, we note
that the Union's picket signs addressed the same
subjects as the handbills-wages, benefits, and for-
eign ownership. The essential message-the request
not to patronize-is readily conveyed by pickets.
Further, there is no evidence that customers were
unable to read the picket signs either from the Re-
spondents' private property or as they entered and
exited the stores' parking lots . 15 There is also no
evidence that picketing at the perimeter presented
appreciable safety risks.
Additionally, with respect to the Knoxville and
Maryville strip center stores, we find that the pe-
rimeter picketing presented no substantial risk of
dilution of the Union's message or of enmeshing
neutrals. In this regard, the strip shopping centers
here are distinguishable from the mall in
Jean
Country in terms of, inter alia, shorter distances
from the parking lot entrances to the picketed em-
ployer and fewer stores and customers on the
premises. See Jean Country, above at 16.
Moreover, during the same period as the Union's
picketing and handbilling, the subject of foreign
ownership of grocery stores was given further ex-
posure through the Union's extensive media cam-
14 In light of our analysis as well as our conclusion that the Respond-
ents' conduct at the three stores did not violate the Act , we find it unnec-
essary to pass on the judge's findings regarding the object and character
of the Union's activity
15 We note that the General Counsel 's only contention regarding the
embankment on the Kingston Pike perimeter at the Knoxville store was
that it hindered the pickets' ability to see the Red Food Store, and not
that the embankment prevented customers of Red Food from reading the
picket signs
Moreover, as found above, the Union also picketed that
store along the Peters Road perimeter where there was no embankment.
paign, consisting of a total of 166 30-second spots
on 2 local television stations and 4 local radio sta-
tions. In this case the General Counsel contends
that the commercials were not reasonable alterna-
tives to picketing and handbilling on the Respond-
ents' property because they were "generic" and did
not mention Red Food by name. We note that the
Board in Jean Country, above at 12, stated that
only in "exceptional" cases will the use of newspa-
per, radio, and television be feasible alternatives to
direct contact. Although we would be reluctant to
impose the cost of a media campaign on a union,
the Union here in fact utilized a media campaign
and the circumstances of this case do not persuade
us that the commercials here, considered in con-
junction with the picketing and handbilling at the
perimeters of the stores, were not an effective al-
ternative means.
In this regard , because the commercials were di-
rected at customers of all foreign-owned grocery
stores, their target audience included the customers
of Red Food. In fact, for those persons familiar
with the Union's
campaign against Red Food
Stores,
the
commercials
would reinforce the
Union's message in the context of Red Food (and
conversely). Based on the above, we find that the
Union's communication of its message from the pe-
rimeters of the stores-together with the media
campaign that was undertaken by the Union-was
a reasonable, effective alternative to entry onto the
Respondents' property.
Accommodating the private property and Sec-
tion 7 rights pursuant to the Board 's analysis in
Jean Country, we find that the Union's relatively
weak Section 7 right (taking into account the avail-
ability of reasonable, effective alternative means of
communication)
would not be significantly im-
paired if access to the Respondents' property were
denied. On the other hand, the Respondents' prop-
erty interests, which are not insubstantial, would be
significantly impaired if access were granted to the
Union.
Accordingly, as the impairment of the
property rights would be greater if access were
granted than would be the impairment of the Sec-
tion 7 right if access were denied, we conclude that
the Respondents did not violate Section 8(a)(1) by
prohibiting the Union from picketing and handbill-
ing in the parking lots and walkways in front of the
stores.
Accordingly,
we shall dismiss the com-
plaint.
ORDER
The recommended Order of the administrative
law judge is adopted and the complaint is dis-
missed.
454
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
CHAIRMAN STEPHENS, concurring.
I agree with my colleagues that the complaint in
this case should be dismissed, but I reach that con-
clusion on grounds somewhat similar to those on
which the judge relied. I would find that the Gen-
eral Counsel did not establish that the Union was
engaging in activity protected by Section 7 when it
was picketing and handbilling on the private prop-
erty involved here . Hence there was no Section 7
right to be accommodated under the Jean Country
test.
It is undisputed that the handbills and picket
signs displayed in the Union's appeal carried essen-
tially two messages : that Red Food Stores paid
lower wages and benefits than those paid to union-
represented employees in that area and that Red
Food Stores was "foreign-owned." Certainly the
area standards message is classifiable as an appeal
protected by Section 7 of the Act, and ordinarily
that would be enough to establish that a union was
exercising a Section 7 right to be accommodated
with the property interests of the owner of the
land on which the union sought to communicate its
appeal. Here, however, as the judge noted, the
Union's International representative who organized
the picketing and handbilling was the General
Counsel's only witness, and he testified that he was
unaware what wages and benefits were enjoyed by
the employees of Red Food Stores and that he had
no idea whether they were comparable to area
standards.
Furthermore, the Respondents offered
testimony, credited by the judge, that Red Food
Stores paid higher wage rates than at least one of
its area competitors. Although I would not usually
look behind the message of union signs or handbills
so as to question the existence of a Section 7 right
in an access case, the facts elicited in this unusual
case warrant a conclusion that the Union was not
engaged in genuine area standards picketing.'
As to the appeal to boycott Red Food Stores be-
cause of its foreign ownership, I need not, like the
judge, go so far as to find this protest to be an
"appeal to nativistic prejudice"
that is against
public policy . It is enough that Section 7 does not
extend to the protection of appeals against owner-
ship of companies by persons of foreign nationali-
ties, at least where there is no claim that workers
are being discriminated against or otherwise mis-
treated or that jobs are being exported.2 The
' In its brief to the Board, the Charging Party Union argues that even
if Red Food Stores' wage levels were above area standards, the Union
could still make a valid area standards appeal because only through the
protection of a collective -bargaining agreement do workers have any
"real rights." Whatever the truth of this assertion, it has no basis in any
accepted definition of area standards picketing.
8 Of course the "mutual aid and protection" clause of Sec. 7 extends to
efforts by employees "to improve terms and conditions of employment or
otherwise improve their lot as employees through channels outside the
Charging Party argues that its message is protected
by the first amendment, and this is undoubtedly
true. But where, as here, the question presented is
the right of union picketers or handbillers to enter
onto privately owned property, the first amend-
ment is not at issue . Rather, "the rights and liabil-
ities of the parties in this case are dependent exclu-
sively upon the National Labor Relations Act."
Hudgens v.
NLRB, 424 U.S. 507, 521 (1976). I
would find that, under the circumstances of this
case, the Act gave the Union no right to dissemi-
nate its message on the Respondents' property.
immediate employer-employee relationship " Eastex, Inc. Y. NLRB, 437
U.S. 556, 565 (1978). But a protest simply against the fact that a company
has been acquired by a French corporation seems to me to have so at-
tenuated a relationship to employees' interests as employees that it falls
outside the ambit of that clause. Id. at 567-568.
Richard P. Prowell, Esq., for the General Counsel.
Frank P. Pinchak, Esq. (Hutcheson, Moseley, Pinchak &
Powers), of Chattanooga, Tennessee, for Respondents
Red Food Stores, Inc. and Corker Development.
Lewis Hagood and Robert Townsend, Esgs (Arnett, Draper
& Hagood), of Knoxville, Tennessee, for Respondent
Red Food Stores, Inc.
G.
Wendell Thomas Jr., Esq. (Kennerly, Montgomery &
Finley), of Knoxville, Tennessee, for Respondent Pre-
mier Investment Properties, Inc.
James G. Stranch III, Esq. (Branstetter, Kilgore, Stranch &
Jennings), of Knoxville, Tennessee, for the Charging
Party.
DECISION
STATEMENT OF THE CASE
LAWRENCE W. CULLEN, Administrative Law Judge.
This case was heard before me in Knoxville, Tennessee,
on 15 July 1986. The original charge was filed by United
Food and Commercial Workers International (the Charg-
ing Party or the Union) on 8 April 1986 against The Red
Food Stores, Inc. (Red Food), Premier Investment Prop-
erties (Premier), and Corker Development Corporation
(Corker), and the complaint was issued by the Regional
Director for Region 10 of the National Labor Relations
Board (the Board) in this case on 15 May 1986, and al-
leged that Respondents Red Food, Premier, and Corker
had violated Section 8(a)(1) of the National Labor Rela-
tions Act (the Act), by since on or about 27 March 1986
prohibiting the Union from picketing and handbilling in
the public parking lots and walkways in the front of Red
Food facilities, thus precluding the Union from any rea-
sonable and/or safe alternative method by which it could
communicate its message to employees, customers, and
suppliers of Red Food. The picket signs are alleged in
the complaint to have stated,"
' There was evidence at the hearing that certain of the signs have this
language and other signs used on the first days of the picketing referred
to Red Food foreign ownership.
RED FOOD STORES
RED FOOD [or SUPERSAVER] UNFAIR
Pays benefits and Wages Which are inferior to ben-
efits and wages paid to union employees in the area
We are not asking any employees to honor this line.
United Food & Commercial Workers International
Union-AFL-CIO, CLC
The leaflets alleged to have been passed out by the
Union contained a picture of comedienne Vicki Law-
rence and read as follows:
PARLEZ-VOUS "UNEMPLOYMENT"?
Take a lesson in foreign affairs from Mama.
Mama says :
"Listen, lamebrains, we've got a
problem. It's foreign-owned stores.
We've got enough trouble with imports taking jobs
away from American workers.
We don't need to import supermarkets, too. Espe-
cially when those stores could cause our neighbors
working at other supermarkets here in the Knox-
ville area to lose their jobs . Remember that the next
time you think about shopping at foreign-owned
Red Food/Super Saver."
Don't be fooled. Red Food/Super Saver pay bene-
fits and wages which are inferior to benefits and
wages paid to union employees in the area.
Listen to Mama. Be American. Shop American.
Don't Shop at Red Food/Super Saver.
Respondents Red Food and Corker filed a joint answer
to the complaint on 28 May 1986 and Respondent Pre-
mier filed its answer to the complaint on 28 May 1986.
The answers deny the commission of any violations of
the Act.
On the entire record, including my observation of the
demeanor of the witnesses, and after due consideration of
the closing argument and supplemental brief submitted
by the General Counsel and briefs submitted by the
Charging Party and the Respondents, I make the follow-
ing
FINDINGS OF FACTS
I. JURISDICTION
The complaint alleges, the Respondents admitted indi-
vidually on their own behalf, and I find the following.
Respondent Red Food is a Delaware corporation en-
gaged in the retail sale of groceries at facilities leased
from Respondent Premier in the vicinity of Knoxville,
Tennessee, and Respondent Corker in the vicinity of
Maryville, Tennessee, and at its own facility in the vicin-
ity of Alcoa, Tennessee. During the past calendar year
prior to the filing of the complaint, a representative
period, Red Food received gross revenues in excess of
$500,000 and purchased and received at its Tennessee fa-
2 The findings of fact include a composite of the testimony of the wit-
nesses, admitted exhibits, and admissions made by the Respondents.
455
cilities goods valued in excess of $50,000 directly from
suppliers located outside the State of Tennessee.
Respondent Premier is a Tennessee corporation en-
gaged in leasing real estate in the vicinity of Knoxville,
Tennessee, and at all times material herein has leased
retail facilities in its shopping mall in the vicinity of
Knoxville, Tennessee, to various businesses including Re-
spondent Red Food. During the past calendar year prior
to the filing of the complaint, a representative period,
Premier received gross revenues in excess of $100,000 of
which in excess of $25,000 was derived from Red Food.
Respondent Corker is a Tennessee corporation en-
gaged in the leasing of real estate in the vicinity of Mar-
yville, Tennessee, and at all times material herein has
leased retail facilities in its mall in the vicinity of Mary-
ville, Tennessee, to various businesses including Red
Food. During the past calendar year prior to the filing of
the complaint, a representative period, Corker received
gross revenues in excess of $100,000 of which in excess
of $25,000 was derived from Red Food. Respondents
Red Food, Premier, and Corker are, and have been at all
times material herein, each an employer engaged in com-
merce within the meaning of Section 2(6) and (7) of the
Act.
II. THE LABOR ORGANIZATION
The complaint alleges, the Respondents admit, and I
find, that United Food and Commercial Workers Inter-
national is, and has been at all times material herein, a
labor organization within the meaning of Section 2(5) of
the Act.
III. THE ALLEGED UNFAIR LABOR PRACTICES
On 27 March 1986, the Union commenced a campaign
against Red Food and another grocery chain entitled
Food Lion. The campaign against Red Food entailed the
hiring of persons to picket on the premises of the Re-
spondents at the three stores as set out above with the
two signs as set out above, one of which expressed that
Red Food paid lower wages and benefits than those pre-
vailing in the area and the other of which informed the
public that Red Food was foreign owned . The picketers
also handed out leaflets to customers of Red Food as set
out above urging them not to shop at Red Food/Super
because they are foreign owned . Super Saver is a Red
Food store operating under the name of Super Saver in a
freestanding building owned by Red Food in Alcoa,
Tennessee. The Red Food and Food Lion stores were
foreign owned and the Union did not represent the em-
ployees of either employer. Red Food is a Delaware cor-
poration acquired by Promodes S.A., a French corpora-
tion in 1980. Additionally, the Union conducted a televi-
sion and radio advertisement campaign utilizing the
"Mama" commercials with Vicki Lawrence urging con-
sumers not to shop at Red Food stores because they are
foreign owned and its message was seen or heard exten-
sively at a media cost of over $22 ,000 to the Union. It is
undisputed that Respondent Red Food asked the picket-
ers to leave its property and that Red Food, Premier,
and Corker obtained injunctive relief in state court to
prevent the Union from further picketing on Respond-
456
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
ents' premises thus giving rise to the charge by the
Union and the issuance of the complaint. The picketing
of Red Food's three stores by the Union on public right
of way continued until 16 June 1986.
The General Counsel and the Charging Party contend
that the Union was merely engaging in area standards
picketing and thus should be accorded the right to picket
on the Employers' premises in order to permit them to
advise the public of the alleged lower wages and benefits
paid by Red Food in the prevailing area relying on Giant
Food Markets v. NLRB, 633 F.2d 18 (6th Cir. 1980). The
Respondents contend that the Union was engaged in or-
ganizational picketing rather than area standards picket-
ing. In this regard the Respondents contend the Union's
interest was protected by permitting it to picket from
public roads or right of ways accessible to the stores.
The Respondents also contend that neither Board law
nor public policy support the right of the Union to enter
their property for the purpose of urging the public to re-
frain from shopping at Red Food because it is foreign
owned.
In support of its case, the General Counsel produced a
single witness, Dan Eaker, an international representative
and organizer for the Union , who testified that he had
been told to picket the Red Food stores and stores
owned by Lion Foods, another foreign-owned food store
chain. Prior to the obtainment of an injunction by Re-
spondents, the pickets carried signs concerning area
standards and at least for the first day or two concerning
Red Food's foreign ownership and distributed leaflets
concerning Red Food's foreign ownership. Eaker ac-
knowledged that he had no knowledge as to whether
Red Food's wages and benefits were comparable to area
wide wages and benefits. He was unaware of what
wages and benefits Red Food paid or gave to its employ-
ees or what the wages and benefits were paid or given to
employees by other retail grocery chains in the area nor
had he made any attempt to verify the amount of the
wages or benefits paid by Red Food. Eaker also testified
that after the union picketers were required to move off
of the Respondents' premises, they were required to
picket on public roads and right of ways and were
unable to safely pass out leaflets to cars which were pull-
ing into the malls or parking lots from busy high traffic
roads as the cars would not stop to take the leaflets. Al-
though he is aware that A & P is a foreign-owned store,
A & P was not picketed as there was a union contract
for the employees at that store. Eaker acknowledged that
he was later told by his supervisor, Joe Price, to with-
draw the pickets from Lion Foods but that picketing
continued at Red Food stores. Although International
Union Representative Price was sitting at the General
Counsel's and Charging Party's counsel table throughout
the hearing, he was not called to testify.
The Respondents called James Bowen, a vice presi-
dent of Red Food , who testified concerning the wages
and benefits paid by Red Food and compared them with
the contract of another store in the area and testified that
as compared with this particular contract, Red Food
wages and benefits were higher.
When the picketing
began the picketers carried signs and distributed leaflets
at the entrance to the Red Food stores on the sidewalk
in front of the stores at the shopping centers, where mer-
chandise was on the sidewalks, and also in the parking
lots.
Discussion
In the recent case of Fairmont Hotel, 282 NLRB 139
(1986), the Board reviewed rulings by the Supreme
Court considering conflicts between Section 7 rights and
property rights . See NLRB v. Babcock & Wilcox Co., 351
U.S. 105 (1956); Hudgens v. NLRB, 424 U.S. 507 (1976);
Central Hardware Co. v. NLRB, 407 U.S. 539 (1972), and
Sears, Roebuck & Co. v. San Diego District County Coun-
cil of Carpenters, 436 U.S.
180 (1978). See also the
Board's decision in Giant Food Markets, 241 NLRB 727
(1979). In Fairmont Hotel, the Board observed that in
Babcock the Supreme Court had concluded that employ-
ees of the employer were not inaccessible to nonem-
ployee union organizers and that the employer was not
required to yield its property right to deny union orga-
nizers access to its private industrial plant parking lot. In
Hudgens, the Court considered picketing by employees
of one of their employer's retail stores in an enclosed
shopping mall. The Board in Fairmont Hotel, supra at
140, stated that the court in Hudgens had determined
"that the rights of the pickets were dependent exclusive-
ly upon the Act, and not the first amendment," citing the
Court's statement in Hudgens that "under the Act, the
task of the Board . . . is to resolve conflicts between
Section 7 rights and private property rights," "and to
seek a proper accommodation between the two," and
"the locus of that accommodation . . . may fall at differ-
ing points along the spectrum depending on the nature
and strength of the respective Section 7 rights and pri-
vate property rights asserted in any given context." The
Board also observed in Hudgens that differences in the
Section 7 activity involved such considerations as wheth-
er employees or nonemployees were involved, and
whether the property interests impinged on were those
of the employer or of another. In Fairmont Hotel, the
Board stated that in the Sears case, the Court had ob-
served that in the context of trespassory organizational
solicitation by nonemployees, an employer 's right under
Babcock to bar union organizers from its property re-
mains the general rule ; to gain access, a union bears the
"heavy" burden of showing that "no other reasonable
means of communicating its organizational message to
the employees exists or that the employer's access rules
discriminate against union solicitation."
The Board further stated in Fairmont Hotel that the
"court's decisions in Babcock, Hudgens, and Sears pro-
vide firm guidance for the resolution of conflicting
claims of property rights and Section 7 rights." In this
regard, the Board considered Giant Food Markets (cited
by the General Counsel and the Charging Party in this
case) wherein the Union had engaged in area standards
picketing by nonemployees of Giant and handbilling
against Giant in front of the Giant store where Giant
shared "subdivided portions of a privately owned build-
ing separated by the street by a private parking lot for
the use of the customers of the two businesses." After
the picketing was enjoined by a temporary restraining
RED FOOD STORES
457
order obtained by Giant, another store, and the property
owner, the picketers moved to a grassy area outside the
property. In the Giant case, the Board held that the in-
tended audience, the consumers of Giant, were less easily
identifiable than in Babcock & Wilcox (the employees)
and found a violation had been committed by the remov-
al of the pickets from in front of the Giant store as the
Union had not had a reasonable alternative basis. How-
ever, the Board in Fairmont Hotel stated that the sugges-
tion in Giant that where area standards picketing was in-
volved, it would be easier to establish the right to access
than in cases of organizing activity "is not a mode of
analysis contemplated by the Supreme Court." In this
regard, the Board noted that the rights of the parties
"will have varying degrees of strength depending on the
facts of the particular case ." The Board also observed
that, "not every Section 7 right that is asserted will be
equally compelling," and
factors that may affect the relative strength or
weakness of a claim of Section 7 rights include, but
are not limited to, the nature of the right asserted,
the purpose for which it is being asserted, the em-
ployer that is the target of the activity, the situs of
the activity, the relationship of the situs to the
target, the intended audience of the activity, and,
possibly, the manner in which the right is being assert-
ed. [Emphasis added.]
The Board then declared that
it is the Board's task first to weigh the relative
strength of each party's claim. If the property
owner's claim is a strong one, while the Section 7
right at issue is clearly a less compelling one, the
property right will prevail. If the property right is a
tenuous one, and the Section 7 right is clearly more
compelling, then the Section 7 right will prevail.
Only in those cases where the respective claims are rela-
tively equal in strength will effective alternative means
of
communication
become determinative,
but
see
Member Stephens' concurring opinion wherein he states
he is
not ready to embrace an access right's test under
which we would be barred from inquiry into the
availability of reasonably effective alternative means
of communication with the target and audience
unless we found that the property rights at issue
were of relative equal strength with Section 7 rights
implicated in the activity on the affected property.
Applying the guidelines of the Supreme Court as ar-
ticulated by the Board in the recent Fairmont case and
other relevant decision authority which will be herein-
after cited, I will proceed to discuss what type of activi-
ty was involved. Initially, I find that the picketing and
handbilling conducted by the Union was organizational
in nature and was not area standards picketing. In so
doing, I have considered several factors . The General
Counsel did not demonstrate that the wages and benefits
paid by Employer Red Food to its employees were
below the standards in the area. Rather, the evidence ad-
duced from the General Counsel's sole witness was that
he made no attempt to determine what the wages or ben-
efits paid by Red Food to its employees were . Rather, he
picketed as ordered by his supervisor, Price, who, al-
though sitting in the courtroom at the General Counsel's
table, was not asked to testify in this case. I find that the
failure to call Price as a witness warrants the inference
that he would not have testified contrary to Eaker con-
cerning the lack of investigation to determine whether
Red Food paid substandard wages and benefits to its em-
ployees. At a minimum, Eaker's testimony stands unre-
butted on the record and the General Counsel has thus
failed to prove the Union's area standards message was
truthful.
Moreover,
the
Respondents introduced the
labor contract of at least one competitor in the area
which contained wage rates below that paid by Red
Food to its employees. The Charging Party's counsel
elicited testimony on cross-examination from Red Food's
vice president, Bowen, that the wage contracts of an-
other competitor of Red Food which accounted for a
substantial market share of the area were not presented
by Respondent Red Food at the hearing. However, they
were also not presented by the General Counsel or the
Charging Party . The record as it stands thus shows that
the Union proceeded to picket Red Food ostensibly as
part of an area standards campaign without any knowl-
edge or investigation having been undertaken as to
whether Red Food paid substandard wages and benefits
and there is evidence on the record that Red Food paid
its employees higher wages and benefits than those paid
by at least one other area grocery .
See Sheet Metal
Workers Local 3 (McCarthy Heating),
253 NLRB 330
(1980); Electrical Workers Locals 211 and 334 (Atlantic
County Improvement Authority), 248 NLRB 168 (1980);
Carpenters Local 1622 (Paul E. Iacono Structural Engi-
neers), 250 NLRB 416 (1980); Carpenters Local 745, 178
NLRB 684, enfd. 450 F.2d 1255 (9th Cir. 1971), where
the Board found the unions were engaged in organiza-
tional picketing under similar circumstances.
Moreover, with respect to the Union's campaign to
discourage consumers from shopping at Red Food, the
evidence presented at the hearing showed that the Union
spent in excess of $22,000 and reached a substantial audi-
ence through its television and radio campaigns. Al-
though these advertisements by the Union mentioned
area standards, they stressed the foreign nationality of
the owners of Red Food and alleged loss of jobs caused
by foreign-owned supermarkets although there was no
evidence presented by the General Counsel that the em-
ployees of Red Food were not American citizens or that
any loss of jobs was occurring. Moreover, there was no
evidence of any coordinated ongoing national campaign
conducted by the Union against foreign-owned super-
markets in general but rather this campaign appeared
limited to the greater Knoxville area and was conducted
against only two employers , Red Food and Lion Food
although International Representative Eaker acknowl-
edged that at least one other store which was foreign
owned was not picketed as there was a union contract
there. Moreover, when Lion Food filed for injunctive
relief, the Union without explanation, withdrew its pick-
458
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
ets from that employer whereas it continued to picket
Red Food for a period of about 3 months. Under all of
these circumstances, I conclude that both the Union's al-
leged area standards picketing and its campaign against
foreign-owned supermarkets were a pretext utilized to
mask its true purpose of organizing Red Food 's employ-
ees without being subjected to the proscriptions of Sec-
tion 8(b)(7)(C) prohibiting recognitional picketing by a
union in excess of 30 days if no petition for an election
has been filed. The alleged area standards picketing
would have also afforded it more favorable treatment in
the balancing of interests test that the Board had previ-
ously appeared to have accorded to area standards pick-
eting over organizational picketing in the Giant case. As
I conclude that the picketing was organizational in
nature, I also conclude that any picketing in excess of 30
days without the filing of an election petition as occurred
herein was not protected.
I also have reviewed the facts of this case and the cita-
tions by the Respondents and conclude that the Union's
activities in seeking the boycott by consumers of Red
Food stores because of its foreign ownership were not
protected by Section 7 of the Act. At the outset, it
should be noted that while the Union and its members
have a free speech right to encourage consumers to re-
frain from patronizing foreign -owned supermarkets, there
appears to be no Section 7 right to do so . In the instant
case, the General Counsel did not undertake to prove
that jobs were being lost as a result of the foreign owner-
ship of grocery stores or that foreign nationals as op-
posed to Americans were being employed by the for-
eign-owned stores so as to effect a corresponding loss of
job opportunities for American citizens . Rather, I find
that the foreign ownership campaign was selectively uti-
lized as a vehicle to enhance the Union 's organizational
campaign to organize Red Food and Lion Food while
ignoring another foreign-owned store where there was
already a union contract. I note also in this regard that
the targeting of grocery stores for this picketing was at
least in part done by the Union's local unions in the area
according to the testimony of Faker.
In view of the above, I conclude that the picketing
and leafletting of Red Food was organizational picketing
rather than area standards picketing . I further conclude
that the Union's appeal to nativistic prejudice was not
protected under Section 7 of the Act. Rather, I find the
Union's attempt to work economic harm upon Red Food
by encouraging consumers to boycott its stores because
of its foreign ownership is inconsistent with the public
policy expressed by Congress in the Convention of Es-
tablishment between France and the United States, 11
U.S.T. 2398, encouraging mutual investment by citizens
of each country in the country of the other. Moreover,
the Union's foreign-owned campaign appears to be at
odds with at least the spirit of Title VII of the Civil
Rights Act of 1964 prohibiting discrimination because of
national origin . I note also that the Board has expressed
disapproval of campaigns against others because of rea-
sons such as race or national origin . See YKK (U.S.A.),
Inc., 269 NLRB 82 (1984). Considering all of the above,
I thus find that the General Counsel has failed to prove
that the Union and its hired picketers had a Section 7
right to engage in trespassory picketing on the private
property of Respondents to attempt to persuade custom-
ers to boycott Red Food stores because of their foreign
ownership. I further find that this aspect of the Union's
campaign (foreign owned) was so enmeshed with the
overall organizational campaign of the Union so as to
preclude any Section 7 right of the Union to picket on
Respondent's property under the circumstances of this
case.
Assuming arguendo that the Union may have had a
Section 7 right to picket on Respondents ' premises, any
picketing in excess of 30 days (as occurred in this case)
would not have been protected as the Union was prohib-
ited from engaging in organizational activity in excess of
30 days without the filing of a petition under Section
8(b)(7)(C) of the Act. Moreover, assuming arguendo that
the Union may have had a Section 7 right to picket on
Respondents' property under the Act for the initial 30-
day period such as to require a balancing of the Union's
interest with that of the property owners to prohibit
these activities on their private premises , I conclude that
the Respondents' interest should prevail as a result of the
public policy considerations discussed above, the eco-
nomic harm potential to Red Food, and the interest of
the other property owners, Premier and Corker, in Red
Food's financial stability as a lessee of their property and
as a result of the evidence of the Union's substantial abil-
ity to effectively disseminate its message through televi-
sion and radio as occurred in this case. Moreover, I con-
clude that the Union had the opportunity to adequately
display their signs on public property at each of the
stores' locations although their effectiveness in leafletting
was diminished as a result of the traffic congestion on
the public roads which adjoined the private property of
Respondents.
I, accordingly, find that the General Counsel has failed
to prove a prima facie case of a violation of Section
8(a)(1) of the Act by the Respondents . Assuming ar-
guendo that the General Counsel has proven a prima
facie case of a Section 8(a)(1) violation , I find that it has
been rebutted by the preponderance of the evidence.
On the above findings of fact and on the entire record,
I make the following
CONCLUSIONS OF LAW
1. Respondents, The Red Food Stores, Inc., Premier
Investment Properties , Inc., and Corker Development
Corporation, are each employers engaged in commerce
within the meaning of Section 2(6) and (7) of the Act.
2. The Respondents did not violate Section 8(a)(1) of
the Act as alleged.
RED FOOD STORES
459
On these findings of fact and conclusions of law and
on the entire record, I issue the following recommend-
ed3
ORDER
The complaint is dismissed.