The Electric Auto-Lite Co.Download PDFNational Labor Relations Board - Board DecisionsDec 29, 195092 N.L.R.B. 1073 (N.L.R.B. 1950) Copy Citation In the Matter of THE;ELEcTRIc AUTO-LITE COMPANY and MELVIN ECK, AN INDIVIDUAL In the Matter of LOCAL 12, INTERNATIONAL UNION, UNITED AUTO- MOBILE, AIRCRAFT AND AGRICULTURAL IMPLEMENT WORKERS OF AMERICA, CIO and MELVIN ECK, AN INDIVIDUAL Cases Nos. 8-CA-219 and 8-CB-24.-Decided December 29, 1950 DECISION AND ORDER On May 12, 1950, Trial Examiner Reeves R. Hilton issued his Inter- mediate Report in the above-entitled proceeding, finding that the Respondents had engaged in and were engaging in certain unfair labor practices and recommending that they cease and desist there- from and take certain affirmative action, as set forth in the copy of the Intermediate Report attached hereto:. Thereafter, each of the Respondents filed exceptions to the Intermediate Report and a sup- porting brief. The request on the part of both Respondents for oral argument is denied as we believe that the issues, the positions of the parties, and the arguments are adequately reflected in the record and the briefs. The Board has reviewed the rulings of the Trial Examiner and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Intermediate Report, the exceptions and the briefs, and the entire record in the case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner, with the following additions and modifications : 1. We agree with the Trial Examiner's conclusion that the Re- spondent Union, in violation of Section 8 (b) (2) of the Act, caused the Respondent Company to discharge Melvin Eck with respect to whom membership in the Union had been terminated on some ground other than his failure to tender the periodic dues uniformly required as a condition of retaining membership. As more fully described in the Intermediate Report, Complainant Eck, an employee of 13 years with the Company, was discharged on January 28, 1949, allegedly pursuant to the terms of a valid maintenance-of-membership agreement. The Union requested Eck's discharge following its suspension of Eck's membership on Decem- 92 NLRB No. 171. 1073 1074 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ber 1, 1948, because of his delinquency in paying certain union charges accruing as the result of his failure to attend it, number of union meetings. Whether these charges against Eck are "periodic dues" within the meaning of Section 8 (a) (3) and 8 (b) (2) of the Act presents one of the principal issues in the case. The Union argues that the charges in question were a proper part of the regular monthly dues and that only such dues were owing at the time of Eck's suspension, rather than "fines," as contended by the General Counsel. Testimony on behalf of the Union indicates that in September 1946, the membership of the Auto-late Unit' of the Respondent Union, duly passed a motion increasing the regular monthly dues from $1.50 to $2, with the further provision, how- ever, that those members who attended each of the monthly union meetings would be exonerated, upon appropriate evidence, from the payment of the additional 50 cents. The minutes of the meeting at which this resolution was adopted were not introduced in evidence. In practice, the record shows, the additional charge of 50 cents did not become due until after a member had failed to attend a meeting. Those present at the meeting received attendance cards which fur- nished the basis for their exemption from paying the 50-cent charge. Significantly, this attendance card indicated that a "50-cent assess- ment" would be levied for nonattendance. The constitution of the International Union provides that the dues of each member shall be $1.50 per month, without indicating that local unions, or any subordinate body thereof, may increase this amount. The constitu- tion also specifically authorizes the levying of "fines". for non- attendance at membership meetings. Upon the basis of such evidence, the Trial Examiner concluded that the regular monthly dues were not increased by 50 cents, but that a "fine or assessment" in the same amount was levied against absentee members. Like the Trial Examiner, we believe that, regardless of the means adopted to in- stitute this charge, the necessary and intended effect was to fix a penalty upon those members who did not attend the monthly meet- ings. We cannot consider such a charge, with the conditions attached, as regular monthly dues. In our opinion, it is nothing other than a fine 2 1 The Auto-Lite Unit, whose membership is confined to the employees of the Company, is one of approximately 60 such units comprising the amalgamated local which is the Respondent Union herein . Each such unit is vested with certain autonomous powers subject to the constitution of the International Union and the bylaws of the Respondent Union. 2 However , it is not necessary for the decision herein to determine whether the Union's nonattendance charge is an assessment , as found by the Trial Examiner. Consequently, we do not adopt the Trial Examiner ' s conclusions as to the illegality of such , or of any, assessments. THE ELECTRIC AUTO-LITE COMPANY 1075 The further position of the Union, as indicated in the testimony, was that, in any event, the Union had properly applied the monies checked off from Eck's earnings first to pay his outstanding indebted- ness in respect to the nonattendance charges, and that therefore, at the time of his suspension from membership, Eck was delinquent only in the payment of regular monthly dues. The Trial Examiner did not discuss or rule upon this aspect of the case. In such instances involving delinquent members who were subject to a dues checkoff arrangement,3 the Union invoked a procedure, osten- sibly authorized by the constitution of the International Union,' in which it applied the monthly sum checked off the earnings of such members initially to pay delinquent charges other than the regular monthly dues. Under this procedure, the delinquent member was notified by postal card that such action was being taken and that he should appear immediately at the Union's dues office to "correct his record." b Eck had executed a checkoff authorization on September 1, 1947, instructing the Company to deduct from his earnings each month and pay over to the Union, "the sum of One Dollar and Fifty Cents," plus not more than one assessment per year for the International Union, Local 12, and the Auto-Lite Unit, respectively. Eck had failed to pay the 50-cent nonattendance charges for a number of months in 1948. On three occasions during this period, the Union sent Eck its postal card notification that his checked-off funds were being applied to pay delinquent charges against him. In May and August 1948, Eck appeared at the office of the Union to adjust his dues record in response to the Union's notice. However, he failed to appear to make any ad- justment following the Union's November notice of its application of his checked-off funds. Thereupon the Union suspended him from membership on December 1, 1948. His discharge followed. It cannot be ascribed to mere coincidence that the sum of $1.50 authorized to be checked off from Eck's monthly earnings equalled 8 Authorization for the checkoff of union dues were executed by the employees solely on a voluntary basis. The constitution provides , in part, ". . . where a member has failed to pay an assess- ment within the time required , but has paid dues in advance , the financial secretary of the Local Union shall apply to the payment of the assessment the dues for the last month or months covered by the advance dues payment in which event the dues payment for such month or months shall be automatically cancelled . . In another provision, the constitution defines "assessment " as "special fees levied by the International Union or any of its subordinate bodies in accordance with the provisions of this International Constitution ." It was also provided that dues and assessments are payable on or before the first day of each month. The postal card reads : Dear Member, In posting your record we are applying the [month ' s] deduction for the payment of [delinquent charges] in the amount of $ . You will be expected to correct your record immediately at the Dues Office. 1076 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the amount of the monthly dues provided for in the constitution of the International Union. The intention was clearly to have deducted only the monthly dues and the three specified annual assessments. The fact that the checked-off authorization listed and limited three annual assessments further indicates that no authorization was in- tended to be given the Union to apply, at its complete discretion, Eck's checked-off funds for any and all claims against him. How- ever, irrespective of whether the International constitution required that such procedure be followed, or whether Eck executed a blanket authorization to the Union to apply his checked-off funds, as con- tended, it is quite evident that such a technique could readily be utilized by unions to circumvent the provisions of Section 8 (a) (3) and render meaningless its purpose in limiting enforceable union security to the collection only of "the periodic dues and initiation fees." There is no question that a union member is entitled to pay, if he wishes, all financial claims against him by his union, whether or not the claims can be enforced by discharge under the terms of Section 8 (a) (3). But to give substance to the statute and carry out the declared intent of Congress, we are impelled to the conclusion that an employee's willingness to pay to the union charges other than the regular monthly dues may not be inferred from any blanket checkoff authorization or union constitutional provision, but should be evi- denced by clear and specific authorization as to each such charge. Therefore, we cannot recognize or give effect to any procedure whereby employee payments to a union intended to be applied for regular monthly dues are diverted to pay other union claims against the employee, unless each specific union claim for purposes other than the regular monthly dues is clearly authorized by the employee to be checked off his earnings,e or the employee authorizes the union spe- cifically in each instance to apply fluids checked off for regular monthly dues to pay other charges. In the present situation, we do not regard Eck's adjustment of his dues record in May and August 1948, in compliance with the Union's notice of application of his checked-off funds, as a general acquies- cence on his part in the Union's procedure and a binding authoriza- tion to the Union to make similar applications of his checked-off funds in the future.? We find, accordingly, that at the time of Eck's sus- 9In which case the checked-off sums would be subject to the provisions of Section 302 of Title II of the Act, but would not present any matter for unfair labor practice litiga- tion. Salant & Selant, 88 NLRB 816. 7 Eck's dues deducted for the month of June had been applied by the Union, in part, to pay the 1947 Labor Day parade assessment of $1. As noted, Eck made adjustment at the union office in August at which time he paid to the Union, over and above his checked- off dues the sum of $1.50. The Union's application of payment having been improper and hence, ineffectual , the necessary effect of Eck 's additional payment in August served at THE ELECTRIC AUTO-LITE COMPANY 1077 pension from membership he was delinquent only in the payment of fines for failure to attend certain union meetings." 2. The basic issue must therefore be resolved, whether the Union's charge for nonattendance at membership meetings, as a fine, is en- compassed within the term "periodic dues" in Section 8 (a) (3) and 8 (b) (2) of the Act, and is thus protected thereunder. Section 8 (a) (3) and 8 (b) (2) prohibit the discharge of an em- ployee under a union-security agreement where union membership was denied or terminated for reasons other than the failure of the employee to tender the periodic dues and the initiation fees uniformly re- quired as a condition of acquiring or retaining membership. Without passing upon the Trial Examiner's analysis of the legisla- tive history, we are able to reach the same conclusion on a reading and application of the clear terms of the statute, i. e., that the term "periodic dues" does not encompass the nonattendance fine here in question. The statute specifies that the "periodic dues" be "uniformly re- quired." This we read essentially to include the requirement that such dues be charged to all members alike or that any distinctions in amount be based upon reasonable general classifications. A charge which distinguishes between individual members who attend particular meet- ings and those who do not attend particular meetings, in our opinion, is not one "uniformly" applied. Moreover, we do not doubt that a member's attendance at a union meeting is highly desirable and salu- tary to carry out-the democratic process. But, as we have already held ,0 the Act as written may not be used as a means of requiring such attendance. The Act's machinery is equally unavailable to enforce the collection of a fine to accomplish this union objective. The Union argues, in effect, that its constitution defines member- ship dues to include such a fine,10 and that therefore the nonattendance fee was levied as a "due," which fact was within the knowledge of all parties including Eck and the Respondent Company. We must reject, least to cancel out the $1 Labor Day parade assessment . Thus, we need not determine whether such parade assessment constitutes "periodic dues." 8 To our dissenting . colleague who fails to see what our decision here serves to accomplish other than to require the Union to engage in "detailed bookkeeping" and "innumerable cash transactions," we point first to our function to carry out the intention of Congress as expressed in the statute rather than to seek abstract accomplishment . But, in any case, the manifest achievement of the majority opinion, while serving the clear intent of Con- gress , is indeed a salutary one in this particular regard, in requiring the Union to make unmistakably plain to all concerned whether it is properly increasing its dues rather than by indirect means, adopting a procedure for levying fines which are outside the sanction of Section 8 (a) (3). 9 Union Starch & Refining Company , 87 NLRB 779. 10 Membership dues are defined in the constitution, inter atia, as "special fees levied by the International Union or any of its subordinate bodies . . . . 1078 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Union's definition as determinative of the intrinsic meaning of the statutory term "periodic dues." We note that the constitutional definition here advanced was initially adopted by the International Union in 1947, shortly after the enactment of the Labor Management Relations Act. The International could not by the simple expedient of altering a definition bring within the statute's limiting words "periodic dues and initiation fees," all of the various fines and assess- ments theretofore applied against its membership. We conclude, therefore, as did the Trial Examiner, that the Union's charges against Eck for his failure to attend membership meetings were not "periodic dues uniformly required as a condition for retaining membership"; that the Union suspended Eck from membership and caused the Com- pany to discharge Eck because he failed to pay such charges; and that, by such conduct, the Union violated Section 8 (b) (2) and 8 (b) (1) (A) of the Act. 3. We agree with the Trial Examiner that the Respondent Com- pany cannot "justify" its discrimination against Eck under the pro- visions of Section 8 (a) (3) (B). It is already established that the Respondent Company regularly checked off from Eck's earnings and paid over to the Union, sums sufficient to pay all of the Union's claims against Eck for "periodic dues." On the basis of such knowledge by the Company, we find, like the Trial Examiner, that the Company did have "reasonable grounds for believing" that Eck's membership was terminated 11 for reasons other than his failure "to tender the periodic dues and initiation fees uniformly required as a condition of acquiring or retaining membership." 12 The Remedy We have found, as did the Trial Examiner, that the Respondent Company discriminated against Melvin Eck and that the Respondent Union caused the Respondent Company to discriminate against Eck. Therefore, as recommended by the Trial Examiner, we shall order the Respondent Company to offer Eck immediate reinstatement to his former or substantially equivalent position without prejudice to his seniority or other rights and privileges.1.3 11 We construe the term "terminated" necessarily to encompass the suspension of a . member from good standing, as in the case of Eck. 12 The Trial Examiner found, in effect, that union-security provisions could be enforced under the Act only as to those financial charges of a union against a member which accrued during the term of the current contract. As such a conclusion is not necessary to a determination of the case, we do not pass upon it. 13 In its brief, the Company advised the Board that Eck had been reinstated to his former position a day or two after the hearing. As this fact is not established in the :record itself, we shall nevertheless order that Eck be reinstated with back pay. Such order cannot result in prejudice, if Eck has, in fact, been properly reinstated. THE ELECTRIC AUTO-LITE COMPANY 1079 As we have found that both Respondents are responsible for the discrimination against Eck, in accordance with the Trial Examiner's recommendation, we shall order the Respondents jointly. and severally to make Eck whole for the loss of pay that he may have suffered by reason of the discrimination against him 14 However, the Board has recently held 15 that a union may relieve itself from further back-pay liability by notifying the employer in writing that it has no objection to the reinstatement of discriminatorily discharged employees. We therefore provide that the Respondent Union shall not be liable for any back pay accruing 5 days after the submission of such notice. We shall also conform the back-pay order recommended by the Trial Examiner with formula promulgated in F. W. Woolworth Com- pany, 90 NLRB 289, for the reasons stated therein, by ordering that the loss of pay on the part of Eck be computed on the basis of each separate calendar quarter or portion thereof during the period from the Respondent Company's discriminatory action to the date of a proper offer of reinstatement. The quarterly periods, hereinafter called quarters, shall begin with the first day of January, April, July, and October. Loss of pay shall be determined by deducting from a sum equal to that which Eck would normally have earned for each such quarter or portions thereof, his net earnings,'6 if any, in other .employment during that period. Earnings in one particular quarter shall have no effect upon the back-pay liability for any other quarter. We shall further order, in accordance with the Woolworth decision, supra, that the Respondent Company, upon request, make available to the Board and its agents all pertinent records. The Trial Examiner recommended that a broad cease and desist order be entered against the Respondent Union. However, as it appears that the Respondent Union's violation consisted only in misapprehension as to the applicability of a union-security agreement under the peculiar facts here present, which does not suggest the like- lihood of the commission of other unfair labor practices in the future, we shall confine our cease and desist order to the unfair labor practices found, and any like or related conduct.'' 14 Acme Mattress Company Inc., 91 NLRB 1010. " See Pinkerton's National Detective Agency, Inc., 90 NLRB 205. 1e By "net earnings" is meant earnings less expenses, such as for transportation, room., and board, incurred by an employee in connection with obtaining work and working else- where than for the Respondent Company, which would not have been incurred but for the unlawful discrimination and the consequent necessity of his seeking employment elsewhere. See Crossett Lumber Company, 8 NLRB 440. Monies received for work performed upon Federal, State, county, municipal , or other work-relief projects shall be considered as earnings. See Republic Steel Corporation v. N. L. R. B., 311 U. S. 7. 21 New York Shipbuilding Corporation, 89 NLRB 1446. 1080 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ORDER Upon the entire record in the case, and pursuant to Section 10 (c) of the National Labor Relations Act, the National Labor Relations Board orders that : A. The Respondent Company, The Electric Auto-Lite Company, Toledo, Ohio, its officers, agents, successors, and assigns, shall: 1. Cease and desist from : (a) Encouraging membership in Local 12, International Union, United Automobile, Aircraft and Agricultural Implement Workers of America, CIO, or in any other labor organization of its employees, by discriminating in regard to their hire or tenure of employment or any term or condition of their employment; (b) In any like or related manner interfering with, restraining, or coercing its employees in the exercise of the rights guaranteed in Section 7 of the Act, except to the extent that such rights may be affected by an agreement requiring membership in a labor organiza- tion as a condition of employment as authorized by Section 8 (a) (3) of the Act. 2. Take the following affirmative action, which the Board finds will effectuate the policies of the Act : (a) Offer to Melvin Eck immediate and full reinstatement to his former or substantially equivalent position without prejudice to his seniority or other rights and privileges; (b) Jointly and severally with the Respondent Union, make him whole for any loss of pay he may have suffered by reason of the discrimination against him, in the manner set forth in the section entitled "The Remedy," in the Intermediate Report attached hereto; (c) Upon request, make available to the National Labor Relations Board, or its agents, for examination and copying, all payroll records, social security payment records, time cards, personnel records and reports, and all other records necessary for a determination of the amount of back pay due and the right of reinstatement under the terms of this Order; (d) Post at its plant at Toledo, Ohio, copies of the notice attached hereto and marked Appendix A.18 Copies of said notice to be fur- nished by the Regional Director for the Eighth Region, shall, after being duly signed by the Respondent Company's representative, be posted immediately upon receipt thereof, and be maintained by it for a period of at least sixty (60) consecutive days thereafter, in conspicu- ous places, including all places where notices to employees are cus- 18 In the event that this Order is enforced by decree of a United States Court of Appeals, there shall be inserted in the notice , before the words "A Decision and Order," the words, "A Decree of the United States Court of Appeals Enforcing." THE ELECTRIC AUTO- LITE COMPANY 1081 tomarily posted. Reasonable steps shall be taken by the Respondent Company to insure that such notices are not altered, defaced, or covered by any other material; (e) Notify the Regional Director for the Eighth Region in writing, within ten (10) days from the date of this Decision and Order what steps the Respondent Company has taken to comply therewith. B. The Respondent Union, Local 12, International Union, United Automobile, Aircraft and Agricultural Implement Workers of Amer- ica, CIO, Toledo, Ohio, its officers, agents, successors, and assigns, shall : 1. Cease and desist from : (a) Causing or attempting to cause The Electric Auto-Lite Com- pany, or any other emmployer, to discriminate against an employee in violation of Section 8 (a) (3) of the Act; (b) In any like or related manner restraining or coercing employees of The Electric Auto-Lite Company, its officers, agents, successors, and assigns, in the exercise of the rights guaranteed in Section 7 of the Act. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act : (a) Jointly and severally with the Respondent Company make whole Melvin Eck for any loss of pay he may have suffered by reason of the discrimination against him, in the manner set forth in the section entitled "The Remedy" of the Intermediate Report attached hereto ; (b) Post at its offices at Toledo, Ohio, and post, or offer to post at the plant, of The Electric Auto-Lite Company of the same place, copies of the notice attached hereto and marked Appendix B.19 Copies of said notice to be furnished by the Regional Director for the Eighth Region shall, after being duly signed by the Respondent Union's representative, be posted by it immediately upon receipt thereof and be maintained by it for a period of at least sixty (60) consecutive days thereafter in conspicuous places, including all places where notices to members are customarily posted. Reasonable steps. shall be taken by the Respondent Union to insure that such notices are not altered, defaced, or covered by any other material. Copies of the notice shall be posted or attempted to be posted at the plant of the Respondent Company and maintained in the fashion set out above; (c) Notify the Regional Director for the Eighth Region in writing within ten (10) days from the receipt of this Decision and Order what steps it has taken to comply therewith. 19 Ibid. 929979-51-vol. 92-70 1082 DECISIONS OF NATIONAL LABOR RELATIONS BOARD MEMBER STYLES , dissenting : I would find no violation here. I am convinced on the basis of all the evidence that Eck was suspended from union membership and thereafter discharged under the valid union-security clause be- cause he was delinquent only in the payment of his regular monthly dues. It is beyond dispute that such dues come within the term "periodic dues" in the proviso to Section 8 (a) (3) and that, therefore, Eck's discharge was not proscribed by that section. We all agree that Eck's union membership was suspended and his employment terminated because he was delinquent in his financial obligations to the Union. But what did Eck owe at the time of his suspension? On the evidence before us I can only conclude that Eck was in arrears with respect to the basic $1.50 a month in dues, since the Union-in a manner I regard as wholly proper-had already credited Eck with respect to the additional 50 cents per month arising out of his nonattendance at meetings. Thus, however we may regard the additional 50 cents per month, the plain fact is that it was not delinquency in that regard that provoked Eck's.discharge. I reach this conclusion on the basis of the following considerations. As substantially detailed in the Intermediate Report and the majority opinion, it is undisputed that in May, June, and November 1948, the Union formally notified Eck, under the long-etablished procedure, that it was applying monies checked off from his earnings to cover his indebtedness resulting particularly from his failure to attend certain union meetings. On two of these occasions, i. e., in May and August, Eck appeared at the union dues office and made adjust- ment of his dues record. It was Eck's failure to respond to the Union's November application notice that brought about his sus- pension from membership on December 1, 1948. His discharge was not finally effected until January 28, 1949, and until such date Eck had full notice and opportunity to settle his dues record with the Union. Moreover, in my view, the Union's authority to make such applica- tion of checked-off funds is unassailable. Eck had executed a checkoff authorization to the Company to deduct "the sum of One Dollar and Fifty Cents," without specifying the purpose therefor.20 Proper 20 I take issue with the opinion of the majority that the intention of the checkoff authori- zation was to have deducted only the monthly dues and the specified annual assessments. First, the checkoff authorization must be read in conjunction with the constitutional provision, recited in the text below, permitting the Union to apply advance payments of dues against other delinquent charges. Secondly, the wording of the authorization is plain, and its plain meaning indicates that it must have been intended for just such a purpose as the Union's application of the deducted sum to pay charges other than regular monthly dues. It is significant to me that the three annual assessments were carefully specified in the checkoff authorization while the purpose of the monthly $1.50 deduction was very carefully left open. THE ELECTRIC AUTO-LITE COMPANY 1083 authorization to apply these checked-off funds to pay the delinquent charges before that of the current monthly dues was contained in the constitution of the International Union, which provided, in part: Where a member has failed to pay an assessment within the time required, but has paid dues in advance, the Financial Secretary of the Local Union shall apply to the payment of the assessment the dues for the last month or months covered by. the advance dues payment in which event the dues payment for such month or months shall be automatically cancelled. .21 [Emphasis added.] Dues are specifically made payable on or before the first day of each month. My colleagues maintain, nonetheless, that checked-off dues are not "advance payments." The above-quoted provision of the constitution would make no sense if this were so. One would hardly expect delinquent members to make advance payments leaving their past delinquencies unpaid. Moreover, since 1946 the Union has been applying checked-off dues under the authority of this constitu- tional provision. Thus, the construction placed upon this provision by the parties themselves demonstrates that checked-off dues were viewed as advance payments.22 As a member of the Union, Eck implicitly acquiesced in and was subject to the provisions of the constitution. Furthermore, Eck spe- cifically acquiesced in this procedure when he readily responded in all previous instances to the Union's notice of application and ad- justed his dues record. Indeed, the record here shows that even as to the Union's application of his checked-off funds again in November preliminary to his suspension, Eck had no real objection. On January 28, 1949, after his discharge had already been effected, he attempted to settle his dues record, as he had in past instances, but this time lie was too late .23 His own testimony shows that his failure to pay the delinquent charges this time resulted only from a mistake on his part as to the final date of grace available to him under the established union-security procedure. It is well settled in common law that such acquiescence by Eck provided sufficient ground to bind him to the "It is not disputed that the definition of "assessment" in the constitution , noted in footnote 4, supra, , would include the nonattendance charge here involved. a In case of doubt, a contract interpretation given by the parties themselves will be adopted by the court . E. g., Barnett v. West Coast Company, 69 F. 2d 266 (C. A. 50 - See also Restatement of Contracts , Sec. 235. za The record discloses that Eck has been suspended from membership for dues delin- quencies on at least two previous occasions but had settled his accounts with the Union during the period of grace afforded employees before discharge. 1084 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Union's application of his checked-off funds under the particulars herein.2' As the majority admits, there can be no challenge of Eck's right to pay any of the charges the Union levied against him, regardless of their enforceability under the Act. Conceding this, it becomes im- material how Ecic exercised his right to pay, if such was the legal effect of his action. Nothing explicit in the Act or in its legislative history can be construed to proscribe the union procedure, as utilized in this case, of applying checkoff funds to pay charges other than the regular monthly dues. My colleagues are alarmed by the possibility that unions may, if allowed, seize upon such a procedure as a device to circumvent the intendment of Section 8 (a) (3). However, if in conjectural situations, unions might adopt such a procedure, clearly legal in itself, to collect charges not includable in the term "periodic dues" in Section 8 (a) (3), and this appears to contravene the ob- jective of the statute, the remedy lies with Congress. These possibili- ties do not privilege the Board to lay down rules, as my colleagues undertake to do, stringently limiting unions in the allocation of funds in their possession. The Board is not empowered to effectuate even a most salutary policy by "administrative amendment of the statute." 25 In view of these considerations, therefore, I conclude that all that Eck owed when he was suspended from membership related to the basic $1.50 monthly dues, which, beyond doubt, were "periodic dues" within the meaning of the proviso to Section 8 (a) (3). But I would reach the result that the Act was not violated in this case even if I were to concede that the Union was not free to credit Eck's payments against the obligations arising out of his failure to attend union meetings. For, in my opinion, even if we must assume that Eck's delinquency included the 50 cents per month charged for failure to attend meetings, that charge was not a fine, but was a part of the regular monthly dues. The Respondent Union introduced evidence of a duly adopted resolution increasing the regular monthly dues from $1.50 to $2 with the further provision that members attending union meetings would be exonerated in each instance from paying the additional 50 cents. This was proper, probative evidence which was umcontroverted by the Gen- eral Counsel. 24 Generally , the application of payment for a designated purpose cannot be diverted by a creditor without the consent of the debtor. But the latter will be bound thereby if by acquiescence or other acts he indicates his acceptance of the condition or his ratification of the creditor 's application . See 48 Corpus Juris 464 ; The Quickstep, 227 Fed. 355. 21 Colgate -Palmolive-Peet Co. v. N. L. R. B., 338 U. S. 355. THE ELECTRIC AUTO-LITE COMPANY 1085 The fact, mentioned by the Trial Examiner and my colleagues in the majority, that the meeting minutes evidencing this resolution were not introduced in the record does not serve to refute the established fact that the resolution was adopted , as testified . Nor do the other factors relied upon by the Trial Examiner and the majority: (a) It is true that the Company was never notified by the Union of the dues increase ; but no reason appears in the contract or elsewhere why the Company should have been so advised formally. Checkoff authori- zations were not required of the members nor was the regular deduction limited specifically to the fixed monthly dues. (b) The Trial Ex- aminer's statement that the Union never collected monthly dues, as such, in the increased amount does not fairly reflect the facts. The uncontested evidence shows that the Union did collect the increase in dues, in many cases for periods substantially in advance of their due date. ( c) My colleagues point to the provisions in the constitution of the International Union (1) that monthly membership dues shall be $1.50, and ( 2) that "fines" may be levied for nonattendance at member- ship meetings . But the mere existence of the latter provision cannot preclude a proper increase in dues by the Union or alter the fact that it had done so. Nor is there any indication in the former constitutional provision, or elsewhere , that local unions or subordinate bodies of the International may not increase the dues above the normal or base sum of $1.50 provided by the International .26 (d) That the Union chose to suspend collection of the increase in dues until after the union meeting for a particular month , as a realistic matter must be assigned to the Union 's desire for convenience and efficiency, and does not alter the legal effect of the adopted resolution increasing the dues. Likewise, the reference to "a 500 assessment" on the attendance card given to members present at union meetings is perhaps an inaccurate choice, of language by the Union but as a matter of evidence , is not competent to controvert the testimony that a motion to increase the dues was duly adopted. Notwithstanding this evidence , the Trial Examiner, with my col- leagues now assenting , is able to conclude-as a fact-that the regular monthly dues were not increased , but rather that a "fine" had been levied against absentee members. With this I cannot agree. True, 26 Cf . Arbitration Award of Clarence M. Updegra f re John Deere Waterloo Tractor Works, (June 26, 1950), 14 LA 910, which held that a strike assessment voted at a UAW-CIO convention levying the sum of $1 per member upon the locals, which the locals in turn added to the monthly claim against the members, constituted dues required to be checked off by the Company. The arbitrator reasoned that the provision for dues of $1.50 in the UAW-CIO constitution (which is the same constitution here in question) indicated only the "normal" dues, thus implying that such dues may legally be expanded by the International Union or by a local under particular circumstances. 1086 DECISIONS OF NATIONAL LABOR RELATIONS BOARD one may say that the effect of the increase in dues, with the provision for conditional exoneration appended, was to penalize absentee mem- bers, but this does not make it a "fine," for with equal logic the ar- rangement may be viewed as a reward to members who attended the meetings. Indeed, it is clear that the intention was so to induce membership attendance.27 But, however the arrangement may be viewed, it is clear to me that it was accomplished by virtue of a dues increase and whatever may be the other restrictions of Section 8 (a) (3) respecting the en- forcement of union-security agreements, that section clearly places no limitation upon a union increasing its regular monthly dues. This the Union has legally done in the present case. Nor does the Act operate to restrict the common trade union practice of exonerating members from the payment of financial charges for particular reasons.' And here the Union's power to exonerate members from financial charges against them was specifically provided for in the International con- stitution.28 In fact, my colleagues concede that a proper increase in dues on the part of the Union and the granting of a rebate to members who attend meetings, would serve as a valid defense to the discharge. This being so, it appears that the only thing the majority decision accomplishes is to require the Union to undergo the needless burden and expense of installing and maintaining a detailed bookkeeping system and engaging in innumerable cash transactions. Thus, by collecting the $2 before the monthly meetings and then returning the 50 cents to those who attended the meeting, the Union would perhaps have made its purpose clearer, but. the result would be the same as is now in effect. I would, therefore, have reversed the Trial Examiner's factual finding that the dues were not increased, and on that ground, as well as the ground discussed above, dismiss the complaint. MEMBER HOUSTON took no part in the consideration of the above Decision and Order. APPENDIX A NOTICE TO ALL EMPLOYEES Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, as amended, we hereby notify our employees that : "To me it is plain that the insurance of democratic control of a union depends upon the full participation of its memlership. 28 This constitutional provision reads : "where Local Unions deem it necessary they may exonerate certain members from the payment of dues to the Local Union. However, such members, with the exception of those holding gratuitous life membership, shall be &dtl- sidered as dues-paying members and per capita tax shall be paid on such members." THE ELECTRIC AUTO-LITE COMPANY 1087 WE WILL NOT encourage membership in LoCAL 12, INTER- NATIONAL UNION, UNITED AUTOMOBILE, AIRCRAFT AND AGRICUL- TURAL IMPLEMENT WORKERS OF AMERICA, CIO, or in any other labor organization of our employees, by discriminatorily dis- charging any of our employees or discriminating in any manner in regard to their hire or tenure of employment, or any terms or conditions of employment. WE wnLL NOT in any like or related manner interfere with, restrain, or coerce our employees in the right to refrain from any or all of the concerted activities guaranteed them by Sec- tion 7 of the Act, except to the extent that such right may be affected by an agreement requiring membership in a labor organi- zation as a condition of employment, as authorized in Section 8 ( a) (3) of the Act. WE WILL offer to Melvin Eck immediate and full reinstatement to his former or substantially equivalent position without prej- udice to any seniority or other rights and privileges previously enjoyed, and make him whole for any loss of pay suffered as the result of the discrimination against him. All our employees are free to become, remain, or to refrain from becoming or remaining, members in good standing of the above- named union or any other labor organization except to the extent that this right may be affected by an agreement in conformity with Section 8 (a) (3) of the amended Act. THE ELECTRIC AUTO-LITE COMPANY, Employer. By --------------------------------------- (Representative ) ( Title) - Dated -------------------- This notice must remain posted for sixty (60) days from the date hereof, and must not be altered, defaced, or covered by any other material. APPENDIX B NOTICE TO ALL MEMBERS OF LOCAL 12, INTERNATIONAL UNION, UNITED AUTOMOBILE, AIRCRAFT AND AGRICULTURAL IMPLEMENT WORKERS OF AMERICA, CIO, AND TO ALL EMPLOYEES OF THE ELECTRIC AUTO- LITE COMPANY, TOLEDO, OHIO Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, as amended, we hereby notify you that : 1088 DECISIONS OF NATIONAL LABOR RELATIONS BOARD WE WILL NOT cause or attempt to cause THE ELECTRIC AUTO- LITE COMPANY, its agents, successors, or assigns, to discharge or otherwise discriminate against employees because they are not members in good standing in LOCAL 12, INTERNATIONAL UNION, UNITED AUTOMOBILE, AIRCRAFT AND AGRICULTURAL IMPLEMENT WORKERS of AMERICA, CIO, or in any other manner cause or attempt to cause that Company, its agents, successors, or assigns, otherwise to discriminate against its employees in violation of Section 8 (a) (3) of the Act. WE WILL NOT in any like or related manner restrain or coerce employees of THE ELECTRIC AuTo-LITE COMPANY, in the exercise of their rights to refrain from any or all of the concerted activities guaranteed to them by Section 7, except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment, as author- ized by Section 8 (a) (3) of the Act. WE WILL make Melvin Eck whole for any loss of pay he may have suffered because of the discrimination against him. LOCAL 12, INTERNATIONAL UNION, UNITED AUTOMOBILE, AIRCRAFT AND AGRICUL- TURAL IMPLEMENT WORKERS OF AMER- ICA, CIO, Union. By --------------------------- ---------------- (Representative ) ( Title) Dated -------------------- This notice must remain posted for sixty (60) days from the date hereof, and must not be altered, defaced, or covered by any other material. INTERMEDIATE REPORT AND RECOMMENDED ORDER Messrs. Bernard Ness and Carroll L. Martin for the General Counsel. James P. Falvey, of Toledo, Ohio, for the Company. Lovell Goerlich, of Toledo, Ohio, for the Union. STATEMENT OF THE CASE Upon charges duly filed by Melvin Eck, an individual, the General Counsel of the National Labor Relations Board; by the Regional Director of the Eighth Region (Cleveland, Ohio), issued his complaints dated January 16, 1950, against The Electric Auto-Lite Company, herein called the Company or the Respondent Company, and Local 12, International Union, United Automobile, Aircraft and Agricultural Implement Workers of America, CIO, herein called the Union or i The General Counsel and his representative at the hearing are called herein the Gen• eral Counsel; the National Labor Relations Board is called the Board, THE ELECTRIC AUTO-LITE COMPANY 1089' the Respondent Union, alleging that the Respondent Company and the Respond- ent Union had engaged in and were engaging in unfair labor practices affecting commerce within the meaning of Section 8 (a) (1) and ( 3) and Section 8 (b) (1) (A) and ( 2), respectively , and Section 2 (6) and ( 7) of the National Labor Relations Act, 49 Stat . 449, as amended by the Labor Management Relations Act, 1947 , 61 Stat. 136 , herein called the Act or the amended Act. The Regional Director duly issued an order consolidating the cases for hearing . Copies of the complaints , the charges , the order of consolidation , and notice of hearing were duly served upon the parties. With respect to the unfair labor practices , the complaint in Case No. 8-CA-219 alleged in substance that the Respondent Company, at the request of the Respond- ent Union , discharged and thereafter refused to reinstate Eck because of his nonmembership in the Union , although the Respondent Company had reasonable grounds for believing that his membership was terminated for reasons other than failure to tender periodic union dues, and thereby violated Section 8 (a) (1) and (3 ) of the Act . With respect to Case No . 8-CB-24, the complaint alleged in substance that the Respondent Union by causing the Company to discharge Eck because of his nonmembership therein ., when his membership had been ter- minated for reasons other than failure to tender periodic dues, violated Section 8 (b) (1) (A ) and (2 ) of the Act. In its duly filed answer , the Respondent Company admitted that it discharged Eck at the demand of the Union because of his failure to pay dues to the Union, but denied that it had reasonable grounds for believing that the Respondent Union had terminated Eck's membership therein for reasons other than the failure of Eck to tender periodic dues to the Union. The Respondent Union, in its answer , entered a general denial that it had engaged in unfair labor practices as alleged . in the complaint ; as an affirmative defense the Respondent Union averred that the allegations in the complaint alleging that it has engaged in unfair labor practices within the meaning of Section 8 (b) (1) (A) of the Act are barred by the Statute of Limitations and further that the final discharge of Eck was the sole action of the Respondent Company. Both Respondents denied the commission of unfair labor practices. Pursuant to notice a hearing was held at Toledo, Ohio, on February 28, 1950, before the undersigned Trial Examiner duly designated by the Chief Trial Examiner . The General Counsel, the Respondent Company and the Respondent Union were represented by counsel and participated in the hearing . Full oppor- tunity to examine and cross-examine witnesses and to introduce evidence bear- ing upon the issues was afforded to all parties . At the close of the General Counsel 's case-in-chief , a motion by the Respondent Union to dismiss the com- plaint, for lack of proof , was denied. At the close of the hearing , motions by the Respondents, respectively , to dismiss the complaint, were taken under ad- visement and are now denied for the reasons appearing in the findings of facts and conclusions of law made below. After the taking of evidence the Trial Examiner granted, without objection , the General Counsel's motion to conform the pleadings to the proof in respect to matters of form. All parties waived oral argument before the Trial Examiner at the close of the hearing , and the Re- spondents and the General Counsel, respectively , have filed briefs with the undersigned. As stated above, the Respondent Union, as part of its affirmative defense, alleged in its answer that the relief sought by the complaint is barred by the 1090 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Statute of Limitations particularly in respect to the alleged violation of Section 8 (b) (1) (A) of the Act. While the Respondent Union did not urge the fore- going as the basis for either of its motions to dismiss made at the hearing, the affirmative defense is now considered and treated as a motion to dismiss, which motion is hereby denied for the following reasons. The original charge, alleging violation of Section 8 (b) (2) was duly filed on June 15, 1949, and a copy thereof served upon the Respondent Union the same day. Subsequently, on January 16, 1950, a second amended charge was filed and served upon the Union which reiterated the previous unfair labor practices and further alleged that by reason of such conduct the Respondent Union violated Section 8 (b) (1) (A) as well as Section 8 (b) (2) of the Act. The complaint was based upon the second amended charge and the allegations therein refer only to unfair labor practices occurring within 6 months preceding the filing of the original charge, hence the complaint is not subject to dismissal on the ground that the second amended charge was not timely filed and served as provided in Section 10 (b) of the Act 2 Upon the entire record in the case and from my observation of the witnesses, I make the following : FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT COMPANY The Respondent Company is an Ohio corporation and maintains its principal office and plant at Toledo, Ohio, where it is engaged in the manufacture, sale, and distribution of automobile accessories. In the conduct of its operations the Company, at its Toledo plant, annually purchases raw materials of an approxi- mate value in excess of $500,000 of which in excess of 50 percent is shipped to the Company's plant from places outside the State of Ohio. The Company annually sells and delivers finished products having a value in excess of $500,000, of which in excess of 50 percent is sold and delivered to customers outside the State of Ohio. The parties stipulated at the hearing that the Company is engaged in commerce within the meaning of the Act. II. THE LABOR ORGANIZATION INVOLVED Local 12, International Union, United Automobile, Aircraft and Agricultural Implement Workers of America, CIO, is a labor organization admitting to mem- bership employees of the Respondent Company. III. THE UNFAIR LABOR PRACTICES A. The certification of the Respondent Union and its agreement with the Company On August 3, 1948, the Company and the "Auto-Lite Unit" of the Respondent Union entered into a collective bargaining agreement effective for a period of 2 years. The signatories to this agreement are the Company, the officers of the Auto-Lite Unit, and the Regional Director of the International Union, United Automobile, Aircraft and Agricultural Implement Workers of America, CIO, herein called the International Union. While the Union raised no objection to its being named as a party Respondent in its answer or at the hearing, the Union now urges that since its representatives did not execute the agreement it "is not the offending union," in this proceeding. This contention is rejected. 2 Cathey Lumber Company, 86 NLRB 157; Jaques Power Saw Company, 85 NLRB 440. THE ELECTRIC AUTO-LITE COMPANY 1091 In December 1938, the Board certified 3 the Respondent Union as the exclusive representative of the Company's production and nonproduction factory employees, with. certain exclusions, for the purposes of collective bargaining in respect to wages, hours of employment, and other, conditions of employment. Thereafter, the Company and the Union executed agreements, which, since 1942, have con- tinuously provided that employees shall become and remain members of the Union. The Respondent Union is an "amalgamated local" composed of about 60 Units, including the Auto-Lite Unit. Each Unit thereof is restricted to members em- ployed in a particular manufacturing unit or by a particular company. Member- ship in the Unit constitutes membership in the Respondent Union and applicants for membership must be approved by majority vote of the appropriate unit members. The Auto-Lite Unit (herein sometimes called the Unit) has approxi- mately 5,000 members, all of whom are employed by the Company in the bar- gaining unit mentioned above. The Unit, except as limited by the constitution ,of the International Union and the bylaws of the Respondent Union, is autono- mous in matters concerning the Unit and elects officers, conducts bargaining negotiations, processes grievances, and polices its agreements. The unit agree- ments, however, must be approved by the International Union. In addition. the Respondent Union maintains the unit membership records, collects dues • and :assessments from- the- Company or the unit member and remits such monies to the unit. The Respondent Union alone is responsible for the administration of the unit agreement with respect to the check-off of dues and maintenance-of- membership provisions. Admittedly, the officers of the Unit have not complied with the noncommunist affidavit requirements of Section 9 (h) of the Act. On July 16, 1948, the Board, pursuant to a petition ° filed by the International Union, issued its certification that the Union was authorized to make an agree- ment with the Company requiring membership therein as a condition of em- ployment, in conformity with the provisions of the Act. The foregoing indicates that while original Board certification was directed only to the Respondent Union, the Union in performing its dut'es as the bar- gaining representative of the Company's employees found it expedient to utilize to a certain degree the services of both the Auto-Lite Unit and the International Union. In doing so the Union was merely conducting its internal affairs in the manner it desired, which it had the right to do, and clearly there was no indica- tion that the Union intended to abandon or to assign the rights granted to it under the Board certification to any other labor organization.. On the contrary the Respondent Union, concedes that it is responsible for the administration and -enforcement of the union-security provisions in the agreement which provisions constitute the principal issue in this case. It is therefore found that the Union is the proper party Respondent. B. The discharge of Ecle On January 28, 1949, the Company, at the request of the Union discharged Eck because of his alleged failure to maintain membership in good standing in 10 NLRB 665. Case No. 8-UA-994. The petition averred that the Respondent Union was the recog- nized or certified bargaining agent for the employees in the unit described therein. Fol- lowing the filing of the petition an election was conducted among the employees upon the question, as stated in the ballot, as to whether they desired to authorize the International Union to enter into an agreement with the Company which required membership in the Union as a condition of continued employment. 1092 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Union pursuant to the terms of then existing agreement between the Com- pany and the Union. The pertinent provision of the agreement is as follows : For the duration of this contract, it is agreed that all employees covered by the contract who are members of the Union in good standing at the execu- tion of this contract, and employees who may thereafter become members, shall, as a condition of employment, remain members of the Union in good standing as provided in the constitution and by-laws of the Union. Before a dismissal becomes effective in the case of a member who is not in good standing because of delinquency in the payment of dues, the employee will be given an opportunity on the first occurrence only to reinstate himself in good standing within two (2) weeks from the date dismissal is requested by the Union. The clause further provides that any request to the Company for a dismissal shall contain a certification by the Union that the employee involved was a member in good standing on the effective date of the agreement or subsequently became a member thereof, and any dispute concerning the "good standing" of any member shall be referred to the United States Conciliation Service for final settlement. The General Counsel does not contend that the agreement is invalid but asserts that Eck was discharged because of his nonmembership in the Union when the Company had reasonable grounds for believing his membership was terminated for reasons other than Eck's failure to tender periodic union dues. The Respondents urge that Eck was dismissed because of his failure to pay dues to the Union. At the time of his discharge Eck was working as a machine operator, in the unit covered by the agreement, and had been in the employ of the Company for about 13 years. He became a member of-the Union shortly after he was first employed and was a member in good standing in August 1948, when the agreement was executed. On September 1, 1947, Eck authorized the Company, in writing, to deduct monthly union dues and assessments from his earnings and to pay over these amounts to the Union. Thereafter, the Company, through January 1949, regularly deducted from Eck's wages the sum of $1.50 per month for union dues which it paid monthly to the Union. In addition, the Company made deductions covering various union assessments' as set forth in the authorization. During December 1948, Eck received a form postal card from the Union inform- ing him that 1 months' dues deduction had been applied to the payment of union fines levied against him and requested Eck to immediately report to the union office and correct the matter. Eck admitted he failed to attend 3 meetings between August and November 1948. Although Eck had received a similar, but not identical, notice from the Union in 1947, which he adjusted,' he failed to contact the Union as requested in the notice mentioned above. Thereafter, on January 12, 1949, the Respondent Union, through Randolph Gray, its financial secretary, addressed a letter to the Company stating that Eck and about 80 5 The Company deducted and paid over to the Respondent Union the following assess- ments, each in the sum of $1 ; October 12, 1947, and December 12, 1948, Auto-Lite Unit ; March 7, 1948, Respondent Union ; and May 9, 1948, International Union. 6 Eck admitted he was suspended in June 1947, but that he went to the union office and paid the "fine." Since Eck continued to work after this date his membership in good standing was obviously restored. 4 All subsequent dates refer to 1949 , unless otherwise stated. THE ELECTRIC AUTO-LITE COMPANY 1093 other employees were "delinquent in the payment of their dues" and requested their dismissal. under the maintenance-of-membership clause. In the letter, the Union "certified" that Eck and the other individuals were members of the Union in good standing when the contract was signed. Upon receipt of this communication, the Company notified Eck, by letter dated January 14, that the Union had requested his discharge because of delinquency in his union dues and advised Eck that he had a 2-week grace period, commencing January 12, in which to correct his delinquency. A copy of the maintenance-of-membership provision was enclosed with the letter. Admittedly, the letter with the enclosure was delivered to Eck's home on January 15. Since the letter, according to Eck, granted a 2-week grace period, he "figured" this period commenced from the date of delivery of the letter rather than January 12 as stated therein and de- clared it was his intention to go to the union office at the conclusion of his work on January 28 for the purpose of adjusting his delinquency. In the mean- time, the Company, on January 19, informed the Union in writing that it had sent a "two weeks' notice" letter to Eck and subsequently, the Union, by letter dated January 2d, advised the Company that Eck's "delinquency" had not been corrected as of that date. Upon receipt of this letter the Company discharged Eck as of January 27 and so notified the Union on January 31. Eck did not work on January 27 but when he reported the morning of January 28, he was told by his foreman, Busdecker, that his "timecard had been pulled" and that he was discharged. At the direction of Busdecker, Eck went to the Company's employment office where he was informed that he had been discharged but the reason therefor was not given to him. Several days later, however, Eck re- ceived a written notice from the Company stating that he had been "Discharged for non-payment of union dues." On the morning of his discharge, Eck went to the office of the Union and asked Gray and the union cashier why the Union considered him delinquent in dues, as stated in the union card of December 1948, when the Company had deducted monthly dues regularly from his earnings in accordance with his written authorization. Gray explained that Eck was $1.50 in arrears because the Union had applied 1 months' dues to the payment of fines in an equal amount, levied by the Union by reason of his failure to attend union meetings. Eck thereupon offered to pay his "meeting fines," which offer the Union rejected. On the same clay Eck gave the above union card to a committee member of the Auto-Lite Unite but the circumstances under which this occurred are not stated. Sometime in the early part of February, Eck met with the committee of the Auto-Lite Unit and Gray for the purpose of discussing his discharge and during the course of the meeting Eck again inquired of Gray as to how the Union determined he was delinquent in his dues when the Company had regularly deducted the same and he had check stubs to prove these de- ductions, to which Gray replied, "that still don't prove anything:" Eck had no further meetings with the Union, nor has his membership therein ever been restored. The Union contends Eck was suspended on December 1, 1948, because of de- linquency in dues which occurred in the following manner. About September 1946, the membership of the Auto-Lite Unit, according to John Begg its chairman, adopted a "motion" to increase the regular dues from $1.50 to $2 per month.' The purpose of the "motion" was to encourage attend- 8 The card was not returned to Eck , nor was it produced at the hearing . However, the Union produced an identical card which was offered and received in evidence. Neither a copy of the motion nor the minutes of the meeting at which it was adopted were produced at the hearing. 1094 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ance at unit meetings and after the adoption thereof members present at meet- ings were exonerated from the payment of the additional 50 cents while members not attending were assessed and required to pay that sum to the Union. The IT nit, in order to accurately determine the presence or absence of members at its meetings, adopted a plan whereby each member was required to fill out an `.attendance card" certifying that he was present at that particular meeting. The "attendance card" plainly stated that the member must leave the card with the unit officers upon conclusion of the meeting otherwise an assessment in the amount of 50 cents would be levied for nonattendance. The Respondent Union claims that on August 26, 1948, Eck was "$2.00 in arrears" with the Union, which represented dues for that month plus an assess- ment for failure to attend the August meeting. In respect to this arrearage, Gray testified that Eck was delinquent in April 1948, because of his failure to pay a "parade assessment" of $110 and an assessment of 50 cents for nonattendance at the April meeting. Subsequently, when the Union received Eck's regular monthly dues from the Company covering June 1948, it applied this amount to the pay- ment of the assessments leaving, the Union reasoned, his June dues unpaid and thereafter future dues deductions were credited by it to those allegedly owing for the preceding month. Thus, under this formula, Eck on December 1, 1948, was indebted to the Union in the sum of $3.50, based upon the $2 August arrearage and meeting assessments for September, October, and November. Both the con- stitution of the International Union and the bylaws of the Respondent Union provide for the automatic suspension of any member who becomes 2 months in arrears in the payment of his dues or assessments. Accordingly, the Respond- ent Union suspended Eck from membership on December 1, 1948. The Company admits that, pursuant to its agreement with the Union, it dis- charged Eck as of January 28, at the insistence of the Union for alleged delin- quency in union dues. Although the Company concedes that it had continuously deducted Eck's monthly dues for the period of September 1947 to January 1949, and paid over the same to the Union, it nevertheless accepted without question the Union's certification that Eck was delinquent in his dues because this matter was purely an internal union affair and of no concern to the Company. C. Conclusions The issues as framed by the pleadings and litigated at the hearing are : (1) did the Union terminate Eck's membership therein and cause the Company to dis- charge him for reasons other than Eck's failure to tender periodic dues uniformly required as a condition of retaining union membership; and (2) did the Com- pany in discharging Eck at the Union's request have reasonable grounds for believing that Eck's membership in the Union had been terminated for reasons other than his failure to tender periodic dues uniformly required as a condition of retaining his membership. Each of these questions must be answered in the affirmative. On August 3, 1948, the effective date of the agreement, Eck was a member of the Union in good standing and the Union so "certified" on January 12, 1949, when it demanded his discharge. Further, the Company for almost 1 year prior to the effective date of the agreement had regularly deducted Eck's monthly 10 This assessment was levied because of Eck's nonattendance at the Labor Day parade of 1947 ; through an "oversight" on the part of the Union it was not collected at the time. THE ELECTRIC AUTO-LITE COMPANY 1095 dues from his earnings and remitted the same to the Union in accordance with Eck's written check-off authorization. In support of its contention that Eck's suspension from membership on December 1, 1948, was caused by his failure to pay periodic dues rather than fines, the Union adduced evidence to the effect that the Unit at a meeting held in September 1946, voted to increase its regular dues from $1.50 to $2 per month. The announced object of this action was to encourage attendance at meetings by exonerating members attending from pay- ment of the 50-cent increase while requiring absentee members to pay this amount to the Union. At no time did the Union or the Unit notify the Company that union dues had been increased, nor did the Union ever collect monthly dues, as such, in the increased amount. Again, although Eck signed his check-off authorization about 1 year after the action taken by the Unit, the authorization plainly shows the regular dues to be $1.50 and not $2 per month. Finally, the constitution of the International Union fixes regular union dues at $1.50 per month. The constitution further provides that "Local Unions may levy fines for non-attendance at membership meetings and for other reasons ..." not to exceed $1. Since the action of the Unit in increasing dues had for its purpose the encouragement of attendance at meetings, the increase as thus adopted and applied served as a reward for members attending meetings and a punishment directed against absentee members. Upon all the evidence it is, therefore, found that the regular monthly union dues were not increased from $1.50 in September 3.946, but that on and after that date the Union levied a fine or an assessment against individual members who failed to attend meetings in the amount of 50 cents per meeting. Concerning Eck's delinquency the Union offered evidence, principally its financial records, which disclosed that on December 1, 1948, Eck was indebted to the Union to the extent of $3.50 which included assessments for failure to attend five meetings, namely, April, August, September, October, and November 1948, as well as an additional assessment of $1 for nonattendance at the Labor Day parade of 1947. Eck admitted he failed to attend the meetings in August, September, and October but stated that he was present at the November meeting. In view of Eck's direct testimony that he was present at the November meeting and the fact that the Union's contrary assertion is based merely upon its financial records, which are neither clear nor persuasive, it is found that Eck was present at the November meeting. Eck did not testify concerning the fines or assess- ments levied for nonattendance at the April 1948 meeting or the 1947 Labor Day parade but this is immaterial because they antedated the execution of the agree- ment." Moreover, the Union advised the Company on January 12, that Eck was a member of the Union in good standing on August 3, 1948. The remaining question to be determined is, whether fines or assessments are "periodic dues" as that term is used in the Act. Section 8 (a) (3) of the Act declares it an unfair labor practice for an em- ployer to encourage or discourage membership in any labor organization in regard to the hire or tenure of employment or any term or condition of employ- ment, except that he may discharge an employee under a union-security agree- inent provided such agreement is executed in conformity with the provisions of "The first proviso in Section 8 ( a) (3) permits the making of an agreement "to require as a condition of employment membership [ in the union ] on and after the thirtieth day following the beginning of such employment or the effective date of such agreement which- ever is the later ." This language indicates that union -shop agreements operate only prospectively. 1096 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Section 8 (a) (3), the second proviso (herein called the proviso) therein stating as follows : , That no employer shall justify any discrimination against an employee for non-membership in a labor organization-if he has reasonable grounds for believing that membership was denied or terminated for reasons other than the failure of the employee to tender the periodic dues and the initia- tion fees uniformly required as a condition of acquiring or retaining mem- bership : 12 Section 8 (b) (2) of the Act similarly prohibits such discrimination on the part of labor organizations unless the discrimination is protected for the same reasons as stated in the foregoing proviso. The legislative history of the pertinent provisions of Section 8 (a) (3) and Section 8 (b) (2) of the Act seems to warrant fully the conclusion that Congress intended to include only "periodic dues and initiation fees" and to exclude assessments. Thus, the original House Bill as passed by the House declared it unlawful for an employer : to dominate or interfere with the formation or administration of any labor organization by assisting any labor organization (i) through deducting from the wages of any employees dues, fees, assessments, or other contributions payable by the employee.13 The original Senate Bill as reported out of Committee provided that an employer may not lawfully discharge an employee : If he has reasonable grounds for believing that membership was denied or terminated for reasons other than the failure of the employee to tender dues and initiation fees uniformly required as a condition of acquiring or retaining membership,14 When the Senate received the House Bill it struck out the entire House Bill and substituted the Senate Bill, thereby deleting the words fees, assessments, and other contributions from the Act, and substituting the words dues and initiation fees. The bill then went to conference and there the word "Periodic" was added to the language of the Senate Bill, and with that change the Section was enacted into law. In the light of the legislative history, as appears below, it seems that the term "periodic dues" clearly limits the liability of an employee to the payment only of regular dues as required by a particular union of its entire membership, which payments accrue at definite, stated intervals. The phrase "periodical payments" is defined in Bouvier's Law Dictionary (Rawles, Third Edition) as "payments occurring periodically, that is, at fixed times from some antecedent obligation and not at variable periods at the discretion of individuals." That Congress was not merely substituting words without intended change of meaning and substance is plainly indicated by the following Congressional comment : Senator Taft (April 25, 1947, re S. 1126) The bill further provides that if the man is admitted to the union, and is subsequently fired from the union for any reason other than non-payment 12 All underscoring added unless otherwise indicated. 13 H. R. 3020; Section 8 (a) (2) (c) (i). 14 S. 1126. THE ELECTRIC AUTO-LITE COMPANY 1097 of dues, then the employer shall not be required to fire that man. Under this bill the employer would not have to fire that man unless he did not pay his union dues." Senator Ellender (April 28, 1947, re S. 1126) One of the cases was that of Cecil B. De Mille, who, as we. know is a producer of motion pictures on the west coast. He is also a radio com- mentator. Mr. De Mille was forced to join a union in order to be able to appear on the radio. Soon after he joined the union he was asked to make a contribution to a cause in which he did not believe. He refused to make such a contribution, then what happened? The union kicked him out; it said, "We do not want you as a member any more." Up to this moment, Mr. President, Mr. De Mille has not been able to make any further broadcasts on the radio, simply because he violated the rules of the union to which he belonged, now here was a man called upon to put up a contribution to fight a cause in which he did not believe and because he refused to pay the assessment made on him he was kicked around and he is now unable to pursue his work. Such a situation is intolerable and must be corrected. The pending measure-corrects such an evil.16 Senator Ball (re S. 1126) The union shop, under which employees must join the union within 30 days, and maintenance-of-membership clauses are left valid, but can be bargained for only after approved in a secret election by a majority of all the employees affected. Even then, no employee can be fired by an em- ployer if he is denied membership in or expelled from a union for any reasons other than non-payment of regular dues and. initiation fees." The Senate Report lB upon its bill (S. 1126), after citing examples of abuses affecting the rights of minority members of unions under closed-shop agreements, stated : If trade-unions were purely fraternal or social organizations, such in- stances would not be a matter of congressional concern, but since membership in such organizations in many trades or callings is essential to earning a living, Congress cannot ignore the existence of such power. Under the amendments which the committee recommends, employers would still be permitted to enter into agreements requiring all the employees in a given bargaining unit to become members 30 days after being hired if a majority of such employees have shown that their intent by secret ballot to confer authority to negotiate such an agreement upon their repre- sentatives. But in order to safeguard the rights of employees after such a contract has been entered into, three additional safeguards are provided: (1) Membership in the union must be available to an employee on the same terms and conditions generally applicable to other members; (2) expulsion from a union cannot be a ground of compulsory discharge if the worker is not delinquent in paying his initiation fee or dues ... 15 93 Cong. Rec. 3952. Ie 93 Cong . Rec. 4258 . See also statement of Senator Kern relating to the discharge of two veterans in St. Louis because of their refusal to buy chances in a lottery conducted by the union. 93 Cong. Rec. A 2378. 17 93 Cong. Rec. A 2378. Is Senate Report 105, 80th Cong., p. 7. "The third safeguard relates to the right to change the bargaining representative. This provision was eliminated by the Joint Conference Committee. 929979-51-vol. 92-71 1098 DECISIONS OF NATIONAL LABOR RELATIONS BOARD It seems to us that these amendments remedy the most serious abuses of compulsory union membership and yet give employers and unions who feel that such agreements promote stability by eliminating "free riders" the right to continue such arrangements. In view of the exhaustive legislative history of this Section of the Act it seems reasonable to assume that had Congress intended to include "fines" and "assessments" in the proviso it would have specifically done so. Again, in addi- tion to the omission of these words from the proviso there is a complete absence of references to "fines" in the Congressional debates and reports, which seemingly include all phases of the subject then under consideration. It is therefore the conclusion of the undersigned that the term "periodic dues" as used in Section 8 (a) (3) and Section 8 (b) (2) of the Act was not intended to include "fines" or "assessments." It is further concluded by the undersigned that the provisions of Section 302 of the Act, restrictions on payments to employee representatives, do not materially relate to or bear upon the matters under consideration. Section 302 prohibits the payment to, or receipt by, an employee representative of any money or thing of value, where payment is made by the employer. Violations of this Section are subject to criminal prosecution and, upon conviction, the offender is liable to criminal penalties. Section 302 further provides : (c) The provisions of this section shall not be applicable- (4) with respect to money deducted from the wages of employees in pay- ment of membership dues in a labor organization. Thus, Section 302 directed only against payments to employees representatives is criminal in nature, and creates no unfair labor practices, whereas the purpose of Section 8 (a) (3) and Section 8 (b) (2) is to protect the employees' job, each is remedial in character and each proscribes unfair labor practices. Conse- quently, the interpretation placed upon the term "periodic dues" as used in Section 8 (a) (3) and Section 8 (b) (2) would not be controlling in respect to "membership dues" as used in Section 302, or vice versa, because of the funda- mental differences in the Sections. Finally, the Union contends that since its letter of January 26, merely advises the Company of the "true status" of Eck's membership in the Union and requests his dismissal under the agreement, such statements, unaccompanied by any threat of reprisal, force, or promise of benefits, are expressions of opinions and views and are therefore protected under Section 8 (c) of the Act2° Of course, the purpose of this provision is to protect the right of both employers and labor organizations to free speech. However, the right is limited to. the expression of views, arguments or opinions relating to labor matters unaccompanied by threats, or force, or promise of benefits. The Union in demanding that the Company discharge Eck pursuant to its agreement obviously was not- merely expressing its views, arguments, or opinions that Eck was not a member of the Union in good standing but was in fact directing and ordering the Company to dismiss Eck for the stated reason that he was no longer a member thereof within the meaning of the maintenance-of-membership provision in the agree- ment. To excuse this conduct by reading Section 8 (c) into Section 8 (b) (2) 20 Section 8 (c) provides: The expressing of any views, argument, or opinion, or the dissemination thereof, whether in written, printed, graphic, or visual form, shall not constitute or be evidence of an unfair labor practice under any of the provisions of this Act, if such expression contains no threat of reprisal or force or promise of benefit. THE ELECTRIC AUTO-LITE COMPANY 1099 would be to completely destroy the effectiveness of the latter provision and to condone acts which Congress has expressly prohibited . In considering the effect of Section 8 (c) upon Section 8 (b) (4) (A), the Board in Wadsworth Building Company, Inc., and Klassen & Hodgson , Inc. (81 NLRB 802, 814-815 ), held that peaceful picketing as a means of inducement and encouragement in furtherance of an unlawful object was not protected because to apply Section 8 (c) to Section 8 (b) (4) (A) would lead to "absurd or futile results" ; further it was the duty of the Board to enforce the public policy embodied in the Act and to follow the "purpose [of. Section 8 (b) (4) (A)] rather than the literal words [of Section 8 (c) ]." (See also , International Brotherhood of Electrical Workers v. N. L. R. B., 181 F. 2d 34, February 24, 1950, C. A. 2.) Again, the Board, in the Inter- national Typographical Union case ( 86 NLRB 951 ), held that intraunion publi- cations stating the position of the union and its agents with respect to collective bargaining policy, which policy was actually followed and enforced in collective bargaining negotiations , were not expressions of views, arguments , or opinions, but were in the nature of admissions , directions , instructions or other verbal acts and properly admissible in evidence. But any serious doubt concerning the intention of Congress to restrict the purpose and scope of Section 8 (b) (2) through the application of Section 8 (c) is clearly removed upon examination of the legislative history of that provision. The original bill as passed by the Senate ( S. 1126 ) declared , in Section 8 (b) (2), it an unfair labor practice for a labor organization "to persuade or attempt to persuade" an employer to dis- criminate against an employee , except under specified conditions . When the bill went to joint conference, the House conferees objected on the ground that the language contained therein "seemed inconsistent with the provision guarantee- ing all parties freedom of expression" and accordingly the conferees "clarified this language so that it now reads 'to cause or attempt to cause' " an employer to thus discriminate against an employee, in order to conform with Section 8 (e)2' The Union's demand therefore that the Company discharge Eck, as set forth in its letters of January 12 and January 26, clearly bears upon the issue of whether the Union unlawfully caused or attempted to cause the Company to discriminate against Eck , hence the letters, to the receipt of which the Re- spondents interposed no objection , were properly received in evidence and must be considered in resolving the issue thus presented. The Company attempts to justify its discharge of Eck upon the grounds that it relied upon the Union "certification " that Eck was no longer a member in good standing. The Company further argues that it could not inquire into the correctness of this certification because any inquiry would necessitate delving into the internal affairs of the Union and such conduct is prohibited by Section 8 (a) (2) of the Act. Under Section 8 (a) (2), as under the original Act, it is declared an unfair labor practice for an employer to dominate or interfere with the formation or administration of any labor organization or to con- tribute financial or other support to it. Neither the provisions of the Act nor the decisions of the Board warrant the conclusion urged by the Company. More- over, if an employer is permitted to discharge an employee upon the bare as- sertion by a labor organization that an employee is not a member in good standing in accordance with the terms of a valid union-security agreement then the ad- ministration and enforcement of Section 8 (a) (3) is frustrated . To hold other- wise would be to place in the hands of the employer and the labor organization a convenient device whereby either or both could remove an individual from his 2193•Cong. Rec. p. 6600 ( June 5, 1947). 1100 DECISIONS OF NATIONAL LABOR RELATIONS BOARD job with impunity ; this is the precise conduct Congress intended to eliminate in enacting the proviso in Section 8 (a) (3). Under the checkoff authorization Eck's dues had been paid for all periods subsequent to August 3, 1948, the effective date of the agreement and that fact was well known to the Company who made the checkoff and remitted the dues to the Union. It is therefore obvious that there was, to the knowledge of the Company and the Union, no period covered by the agreement for which Eck had failed to pay periodic dues uniformly required as a condition of retaining mem- bership in the Union. Under the foregoing circumstances and upon the entire record, it is con- cluded and found that the Respondent Company discharged Eck on January 28, 1949, because of his suspension from membership in good standing by the Union. Since the Company had reasonable grounds for believing Eck's member- ship in the Union had been terminated for reasons other than his failure to tender periodic dues, uniformly required as a condition of retaining membership in the Union, it is found that the Respondent Company discriminated in regard to hire or tenure of employment to encourage membership in the Union in viola- tion of Section 8 (a) (3) of the Act, and thereby also interfered with, restrained, and coerced employees in the exercise of the rights guaranteed in Section 7, in violation of Section 8 (a) (1) of the Act. It is further found that the Respondent Union suspended Eck from membership in good standing because of Eck's failure to pay fines or assessments for non- attendance at the meetings of August, September, and October 1948, and demanded that the Respondent Company discharge Eck for that reason. As the Respondent Company violated Aection 8 (a) (3) in making the discharge which the Respond- ent Union demanded, it is found that the Respondent Union caused the Com- pany to discriminate against Eck, and thereby violated Section 8 (b) (2) of the Act. It is further found that by causing the Respondent Company discriminatorily to discharge Eck for reasons other than failure to tender periodic dues, the Respondent Union restrained and coerced Eck in the exercise of the rights guaranteed in Section 7 and thereby violated Section 8 (b) (1) (A) of the Act. Union Starch and Refining Company, 87 NLRB 779. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent as set forth in Section III above, occurring in connection with the operations of the Respondent Company set forth in Sec- tion I above, have a close, intimate, and substantial relation to trade, traffic, and commerce among the several States and tend to lead to labor disputes burden- ing and obstructing commerce and the free flow of commerce. V. THE REMEDY Having found that the Respondents, and each of them, have engaged in unfair labor practices, it will be recommended that they cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. It has been found that the Respondent Company on January 28, 1949, dis- criminated against Melvin Eck in regard to hire and tenure of employment to encourage membership in the Respondent Union, and thereby interfered with, restrained, and coerced employees in the exercise of the rights guaranteed in Section 7, and that the Respondent Union committed an unfair labor practice by causing the Respondent Company so to discriminate thereby 91gd 11QgtFg1[1iHg i.nd coercing Eck in the exercise of the rights guaranteed in Section 7 of the Act. THE ELECTRIC AUTO-LITE COMPANY 1101 It is therefore recommended that the Respondent Company offer to Eck immediate and full reinstatement to his former or substantially equivalent position'22 without prejudice to his seniority or other rights and privileges. As it has been found that both the Respondent Company and the Respondent Union are responsible for the discrimination suffered by Eck, it will be recom- mended that they jointly and severally make Eck whole for any loss of pay he may have suffered by reason of the discrimination against him by payment to him of a sum of money equal to the amount that he normally would have earned as wages from January 28, 1949, the date of the Respondent Company's dis- crimination, to the date of the Respondent's offer of reinstatement less his net earnings during that period. Upon the basis of the foregoing findings of fact and upon the entire record in the case the undersigned makes the following : CoNCLusIoNs of LAW 1. The Electric Auto-Lite Company is engaged in commerce within the meaning of Section 2 (6) and (7) of the Act. 2. The Respondent Union, Local 12, International Union, United Automobile, Aircraft and Agricultural Implement Workers of America, CIO, is a labor organization within the meaning of Section 2 (5) of the Act. 3. By discriminating in regard to the hire and tenure of employment of Melvin Eck, thereby encouraging membership in the Respondent Union, the Respondent Company, The Electric Auto-Lite Company, has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (a) (3) of the Act. 4. By interfering with, restraining, and coercing its employees in the exercise of the rights guaranteed in Section 7 of the Act, the Respondent Company has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (a) (1) of the Act. 5. By causing the Respondent Company to discriminate. against Melvin Eck in violation of Section 8 (a) (3) of the Act, the Respondent Union has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (b) (2) of the Act. 6. By restraining and coercing employees in the exercise of the rights guaran- teed in Section 7 of the Act, the Respondent Union has engaged and is engaging in unfair labor practices within the meaning of Section 8 (b) (1) (A) of the Act. 7. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2 (6) and (7) of the Act. [Recommended Order omitted from publication in this volume.] 22 In accordance with the Board 's consistent interpretation of that term , The Chase National Bank of the City of New York, San Juan, Puerto Rico, Branch, 65 NLRB 827. Copy with citationCopy as parenthetical citation