Concord Docu-Prep, Inc.Download PDFNational Labor Relations Board - Board DecisionsDec 17, 1973207 N.L.R.B. 981 (N.L.R.B. 1973) Copy Citation CONCORD DOCU-PREP, INC. Concord Docu-Prep, Inc. and Office and Professional Employees Union, Local 29, Office and Profession- al Employees International Union, AFL-CIO. Case 20-CA-7705 December 17, 1973 DECISION AND ORDER BY MEMBERS FANNING, KENNEDY, AND PENELLO On June 21, 1973, Administrative Law Judge Irving Rogosin issued the attached Decision in this pro- ceeding. Thereafter, the Respondent filed exceptions and a supporting brief, the General Counsel refiled his brief to the Administrative Law Judge and, in addition, filed limited cross-exceptions, to which Respondent filed an answering brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. The Board has considered the record and the attached Decision in light of the exceptions and briefs and has decided to affirm the rulings, findings,' and conclusions of the Administrative Law Judge and to adopt his recommended Order. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the recommend- ed Order of the Administrative Law Judge and hereby orders that Respondent, Concord Docu-Prep, Inc., Concord, California, its officers, agents, succes- sors, and assigns, shall take the action set forth in the said recommended Order. i The Respondent has excepted to certain credibility findings made by the Administrative Law Judge. It is the Board's established policy not to overrule an Administrative Law Judge's resolutions with respect to credibility unless the clear preponderance of all of the relevant evidence convinces us that the resolutions are incorrect. Standard Dry Wall Products, Inc., 91 NLRB 544, enfd. 188 F.2d 362 (C.A 3). We have carefully examined the record and find no basis for reversing his findings. DECISION STATEMENT OF THE CASE IRVING RoGosiN, Administrative Law Judge: The complaint, as amended, issued October 20, 1972, alleges 1 Designations herein are as follows: The General Counsel, unless otherwise noted or required by the context, his representatives at the hearing (Messrs. Klein and Kmtz appearing at the pretrial conference); Concord Docu-Prep, Inc., Respondent, the Company, or the Employer; Office and Professional Employees Union, Local 29, Office and Profession- al Employees International Union, AFL-CIO, the Union or the Charging Party; the National Labor Relations Act, as amended (61 Stat. 136, 73 Stat. 519, 29 U.S.C. Sec. 151, et seq. ), the Act; the National Labor Relations 981 that since about August 15, 1972, Respondent has refused to bargain collectively with the Union as exclusive representative of its employees in an appropriate unit, despite the Union's status as majority representative, and since October 1972, has made unilateral changes in wages, hours, or terms and conditions of employment, without first bargaining with the Union as exclusive representative of the unit employees, thereby engaging in unfair labor practices within the meaning of Sections 8(a)(5) and (1) and 2(6) and (7) of the Act.' Respondent's answer to the original complaint, as well as to the amendment, admits the jurisdictional and procedural, but denies the substan- tive, allegations of the complaint. In its answer to the amendment to the complaint, Respondent also raises issues regarding the validity or propriety of the amendment. Pretrial hearing was held before Administrative Law Judge James T. Barker, on February 7, 1973, at San Francisco, California. The General Counsel and Respon- dent were represented by counsel, and were afforded full opportunity to be heard. On prior oral notice to Respon- dent's counsel, the General Counsel filed an amendment to the complaint, alleging that Respondent had further refused to bargain, in October 1972, by instituting unilateral changes in working conditions, without first bargaining with the Union. Respondent strenuously objected to the amendment , and moved for a bill of particulars, additional time in which to answer the amendment, and a continuance of the hearing scheduled for February 20. The amendment to the complaint was allowed, and the General Counsel was directed to furnish Respondent with an informal statement of particulars on which the amendment was based. The General Counsel complied by letter to Respondent's counsel, dated Febru- ary 7, 1973. Request for permission to file an interlocutory appeal from the Administrative Law Judge's ruling was filed with the Board . On February 16, 1973, the Board denied the request with leave to raise the issues at the hearing on the merits. Hearing on the complaint, as so amended, was held from February 20 to 23, both inclusive, and on February 26, 27, and March 20, 1973, at San Francisco, California. The General Counsel and Respondent were represented by Counsel, were afforded full opportunity to be heard, to examine and cross-examine witnesses , to introduce oral and documentary evidence relevant and material to the issues, to argue orally, and to file briefs and proposed findings of fact and conclusions of law. The parties waived oral argument and reserved the right to file briefs. At the outset of the hearing, Respondent renewed its motion to dismiss the allegations contained in the amended complaint upon substantially the same grounds urged at the pretrial conference . The motion was denied.2 At various stages during the hearing, Respondent renewed the motion to dismiss the allegations of the amendment to the Board, the Board. The charge was filed on August 16, 1972. Unless otherwise stated, all events occurred in 1972. 2 The principal ground for the motion was that the allegations of the amendment were not sufficiently related to the facts alleged in the unfair labor practice charge . Although offered additional time to prepare to meet any issues newly raised , Respondent's counsel declined , stating that he required no additional time , In any event, the issues raised by the amendment were fully litigated at the hearing. 207 NLRB No. 145 982 DECISIONS OF NATIONAL LABOR RELATIONS BOARD complaint, objected to and moved to strike the testimony of various witnesses on hearsay and other grounds, and made a variety of other motions. Where rulings on such motions or objections were reserved , said motions are hereby denied and the objections overruled. Pursuant to an extension of time duly granted, briefs were filed on April 24, 1973. No proposed findings of fact or conclusions of law have been filed by any of the parties. Respondent's unopposed motion to correct the record , in stated respects, is hereby allowed and made part of the record. Upon the entire record in the case and, based upon the appearance and demeanor of the witnesses , and the briefs, which have been carefully considered, the undersigned makes the following: FINDINGS OF FACT I. THE BUSINESS OF RESPONDENT The complaint alleges, Respondent has admitted, and it is hereby found that during the 12-month period ending June 30, 1972, E. D. S. Service Corporation, herein called E.D.S., Respondent's predecessor, was engaged in the business of rendering computer data services at its place of business at Concord, California. During said 12-month period, E.D.S. purchased materials directly from suppliers located outside the State of California, valued in excess of $50,000, and provided services directly to customers located outside the State of California, valued in excess of $50,000. The complaint further alleges, Respondent has admitted, and it is hereby found that, on about July 1, 1972, Respondent purchased the facility and operations of E.D.S., located at Concord, California. It is further alleged that, projected on a 12-month basis, it may reasonably be expected that Respondent will purchase materials directly from suppliers located outside the State of California, valued in excess of $50 ,000, and will provide services directly to customers located outside the State of Califor- nia, valued in excess of $50,000. On the basis of the foregoing, and upon the entire record, it is hereby found that, at all times material herein, Respondent has been an employer engaged in commerce and in operations affecting commerce within the meaning of Section 2(2), (6), and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED Office and Professional Employees Union, Local 29, Office And Professional Employees International Union, AFL-CIO, the Union herein, is, and at all times material herein has been, a labor organization within the meaning of Section 2(5) of the Act. III. THE UNFAIR LABOR PRACTICES A. Background Prior to July 1, 1972, E.D.S. was engaged in the business of processing data relating to medical, dental, and drug claims for Medicare, Blue Shield, and other governmental agencies and insurance carriers . The actual work of data processing is performed by key disc operators, principally women , constituting the bargaining unit. On or about May 30, 1972, the Board certified the Union as the exclusive bargaining representative of the employ- ees, in the appropriate unit therein described. About July 1, Respondent acquired the business of E.D.S., and has since operated the same business , at the same location, utilizing the same equipment and personnel as its predecessor. There is no issue of successorship in the technical sense, since Respondent admittedly agreed to continue in effect all the terms and conditions of employment, including benefits enjoyed by the employees while the business was conducted by E.D .S. In fact, two notices to this effect were posted in the plant , one over the printed name of John H. Hickey, Respondent 's president, on July 14. On July 6, Union Representative Richard ' Delaney notified E.D.S. by letter of the names of the Union's negotiating committee, consisting of two employees from each of three shifts, with one alternate each for the day and swing shifts. The committee included Terrie Ramsey, swing shift, Alyce Shutzbaugh, day shift, and Susan Moan, grave (yard) shift . Next day, July 7, Delaney wrote Hickey notifying him of the Union's certification, enclosing a copy of a proposed contract covering unit employees, and requesting commencement of negotiations on one of several alternate dates. On July 12, 1972, Robert J. Scolnik wrote the Union that he had been retained as labor counsel for Respondent and confirmed that his client would recognize and bargain with the Union under the Board certification issued in Case 20-RC-10573. Following a series of telephone conversa- tions between Scolnik and Delaney , a meeting was scheduled for July 26. On July 19, Delaney transmitted copies of a proposed contract, together with a copy of the letter previously sent to E.D .S., furnishing the names of members of the negotiating committee. On July 21, in a four-page, single-spaced letter, ad- dressed to Delaney, in his official capacity , sent by certified mail, Scolnik undertook to summarize the substance of the preliminary telephone conversations in which he had engaged with Delaney. Scolnik's letter was devoted chiefly to the issue of whether employee-members of the union negotiating committee should be permitted to attend the bargaining meetings, and asserted that Respon- dent would decline to release employees from working shifts in order to participate in negotiations. In his telephone discussions with Scolnik, Delaney had protested that the Union was entitled to have a representative from each shift present during negotiations , and had maintained that the Board would sustain the Union 's position. The meeting scheduled for July 26, was held at 3:15 p.m. at union headquarters . Present on behalf of Respondent were Scolnik , Respondent's principal negotiator through- out all meetings, and President Hickey; 3 attending on behalf of the Union were Delaney, Terrie Ramsey, and Linda Murphy, of the swing shift, and Kathy McGuire and Sherry Lee, of the graveyard shift. Delaney called Scolnik's attention to what he regarded as- inaccuracies and misstatements in Scolnik 's letter of July 21 . Although there 3 Hickey, though m attendance at the heanng, did not testify. CONCORD DOCU-PREP, INC. 983 was perfunctory discussion regarding other issues, includ- ing modifications in the dress code, later mentioned, and the existing incentive bonus plan, the discussion was devoted primarily to the size and composition of the union negotiating committee. The Company's initial position, as expressed by Scolnik, was that there was no need for employee representation on the negotiating committee or, indeed; for any negotiating committee whatever, on the premise that since the Union was exclusive representative, its business representatives could adequately represent the interests of the employees. The Union at first proposed a committee of six employees, two from each shift. In view of the Company's apparent intransigence on this issue, the union representative indicated that he might find it necessary to file an unfair labor practice charge. The Company maintained that if the Union insisted on its position, the Company would not release any employee- member from his shift to attend a negotiating meeting. This would necessarily result in a committee of four employees, at most, although Respondent gave no indica- tion that a committee of that size would be acceptable, but still adhered to its position that no employee committee was necessary, a position of which Respondent still hoped to convince the Union. The meeting ended inconclusively. On July 28, Scolnik wrote Delaney, by certified mail, that it might 'be desirable to maintain "fairly detailed minutes" of negotiation meetings, and enclosed a four- page, single-spaced typewritten memorandum concerning the July 26 meeting, and requested the union representative to sign two copies and return one to Scolnik. The, letter suggested that Delaney propose revisions or corrections, if necessary, and send Scolnik copies. Scolnik also recom- mended that the parties alternate in preparing minutes and, while charging the Union with -breaking off and refusing to continue negotiations pending the filing of unfair labor practice charges by the Union, offered to resume negotiations, proposing a meeting on August 1, 1972, at Scolnik's office. Delaney did not comply with Scolnik's request to sign and return the minutes, or propose corrections and revisions, primarily because he felt that the general tenor of the minutes left an erroneous impression ' of what had occurred, and that the parties might be better employed engaging in substantive negotiations. After the July 26 meeting, Delaney was succeeded by Senior Union Repre- sentative Joe C. Nedham, who had been on vacation. The next meeting was held on August 9 at Scolnik's office. The Union was represented by Nedham, and a negotiating committee consisting of Terrie Ramsey and Christine Straughn. As the first order of business, Nedham proposed a negotiating committee, consisting of two employees from each of the two nonworking shifts, and one, from the working shift, with the proviso that if negotiations continued into the next shift, one of the two representatives from that shift would return to work so that no more than one employee would be away from his shift at a time. Scolnik said that he would respond to this proposal after he had had an opportunity to caucus with his client that day. Later, Scolmk reported that he had not had an opportunity to discuss the matter, and that he would notify the Union of Respondent's position later in the week. Among other topics discussed, the matter of the dress code was relatively high on the list of priorities. Admitted- ly,- E.D.S. had enforced a rigid dress code, which regulated the type of apparel that could be worn at work. Suggestions were made by both sides as to the type of apparel which might be acceptable, with the understanding that a joint announcement would be made to the employees of the dress code finally agreed upon, for a trial period. Employees wearing unacceptable attire would be furnished with smocks, instead of being sent home, under former policy, it being understood that the negotiating committee would participate in "policing" the dress code. Although various types of apparel were discussed, no final agreement was reached as to which items were or were not acceptable. It was agreed that Respondent would submit to the Union a summary of items of attire which would be regarded acceptable or unacceptable and as to which the Union could comment .4 On August 10, Scolnik wrote Nedham, enclosing a copy of minutes purporting to reflect what occurred at the meeting the day before. According to these minutes, Nedham had proposed to compromise the issue concerning the number of members on the negotiating committee by reducing the size of the committee to one employee from each shift instead of two. Under Scolnik's version of this proposal, if this was acceptable to the Company, the Union would waive its right to file unfair labor practice charges with the Board. According to these minutes, Scolnik stated that the Company would consider the problem and advise the Union of its position, and that this was acceptable to Mr. Nedham. Other subjects brought up at this meeting, related primarily to the matter of the dress code, which Respondent had agreed to relax in certain areas. Again, a place was provided for Nedham's signature to these minutes. Nedham declined to sign these minutes because of what he regarded as misstatements, distortions, and "editorializing" by Scolnik. In any event, it should be noted that the Union had at no time agreed that Scolnik should take official minutes of the negotiation meetings, much less to be bound by them unless it raised specific objections to the contents of the minutes or proposed minutes of its own. Nor could counsel by this stratagem impose a'duty on the Union to object to the contents of the minutes on peril of being held- to have assented to or acquiesced in the matters contained in the minutes. Enclosed with the covering letter was a draft of a Revised Dress Code, purporting to enumerate various items of attire which were acceptable, as well as those which were not. Also enclosed was a document, entitled "Joint Announcement to All Employees," purporting to set forth the policies with regard to the relaxation of the strict rules of the dress code, under an agreement to be jointly 4 By way of illustration, these involved the issue of whether wearing regard to the relatively few male employees, the issue of whether they would nylon hose, colored or otherwise , so-called coordinated slack outfits, hot be permitted to wear dress slacks, long- or short -sleeved shirts, colored pants, jumpsuits, deans , Levis, or denims , halter tops, zones, clogs or treads, shirts, long hair, beards and mustaches , were all subjects to be considered long dresses , and niicromim skirts would or would not be acceptable. With under a revised dress code. 984 DECISIONS OF, NATIONAL LABOR RELATIONS BOARD arrived at with the Union, on a 30-day trial basis. As appears from the document itself, both the Company and the Union were expected to sign this document. According to Nedham, it was not until August 14 that he saw for the first time the letter dated August 10, enclosing copies of the proposed minutes, as well as the letter of August. 11, enclosing drafts of the statement of company policy and joint announcement. Having already arranged for the attendance of the employee negotiating committee, Nedham decided to wait until the meeting to notify Scolnik of his misunderstanding of the Union's position with respect to the size of the negotiating committee. The next, and final, meeting was held at the Union's conference room in Oakland on August 15 at 10 a.m. Scolnik and Hickey appeared for Respondent, and the Union was represented by Nedham and five employee- members of the negotiating committee, consisting of two employees from each of the two nonworking shifts, and one employee from the working shift. When Scolnik and Hickey realized that the Union was apparently adhering to its position, that it was entitled to have a committee of five, Scolnik and Hickey caucused briefly, and then announced that unless two employees were dismissed, Respondent would refuse to negotiate further. The Union declined to accede to Respondent's request. Charging the Union with bad faith, and breach of its agreement to reduce its negotiating committee to three, Scolnik and Hickey walked out of the meeting, but Scolnik asked Nedham if he would prepare the minutes of that meeting. Nedham replied jocularly that Scolnik was being paid enough to prepare the minutes himself. No further negotiations were held. Instead, Scolnik wrote Nedham on August 15, by certified mail, advising him that the Company was ready and willing to resume negotiations "upon request," at the same time and place, presumably at the Union's headquarters. When Scolnik failed to receive an immediate reply, he again wrote Nedham, on August 18, withdrawing his previous request to hold a meeting at the union conference room, and proposed instead that his original suggestion that the location of meeting places be alternated and that the next meeting should therefore be held in his office. In other respects, Scolnik stated that the Company was ready and willing to resume negotiations, upon request. On August 28, Scolmk wrote Nedham, purportedly furnishing certain information requested at the August 9 meeting in regard to the Respondent's incentive bonus plan, which is not in issue in this proceeding. On August 31, Scolnik submitted a copy of the minutes of the August 15 meeting together with a covering letter. On September 29, Nedham wrote Scolnik reiterating the Union's position as to the size of the negotiating commit- tee, namely two from each nonworking shift, and one from the working- shift, and proposed that negotiations be resumed, pending investigation by the Board, and offering to negotiate with a committee of three limited to one from each shift. The letter also commented with regard to items on the dress code, and requested further information regarding the incentive plan. On October 4, Scolnik replied to Nedham's letter, asking for clarification with respect to the Union's offer to resume negotiations "conditionally." More importantly, however, Scolnik charged the Union with a breach of the agreement, allegedly reached on the size of the negotiating committee, and, in effect, called upon the Union to acknowledge that it had committed a breach of its agreement, and to assure that this would not happen again. Reiterating that the Union had failed to bargain in good faith, and was attempting to repudiate agreements allegedly reached regarding the dress code, Scolnik concluded by saying that the only solution appeared to be litigation. On October 27, Nedham replied to Scolnik's letter of October 4, reiterating the Union's willingness to resume negotiations upon Respondent's terms with regard to the size of the negotiating committee, reserving its right, however, to a five-person committee in the event of a favorable determination of that issue by the Board.5 Respondent failed to reply to Nedham's letter. The evidence fairly establishes that Respondent abruptly terminated negotiations on August 15, and has since failed to meet with the Union, ostensibly because of Respon- dent's claim that the Union had breached its agreement on August 9, regarding a three-member committee. Respon- dent argues that the logic of the situation supports its position that the Union had agreed to a three-member committee as a compromise between the Union's initial position, that it was entitled to six employees on the committee (two from each of the three shifts), and Respondent's original position that there was no necessity for a negotiating committee consisting of employee members. According to Scolnik, Nedham did not mention the figure two or five during this discussion, merely proposing a total of three employees, one from each shift. It is undisputed, however, that there was some discussion as to what would happen if the negotiating meeting ran beyond the shift on which a member of the committee was employed. If Scolnik's version of the Union's proposal is correct, and there were to be only three employees on the committee, the release of an employee to return to work on his shift could deprive the Union of a representative from that shift during negotiations. The issue, however, is not whether a union is entitled to have a specified number of employees on a negotiating committee, or whether an employer may determine the number of employees who may serve on such committee. While admittedly an employer may not dictate the choice of bargaining representative, by the same token, a union may not arbitrarily decide on the number of employee representa- tives it chooses to serve on such committee. Such determinations must obviously be made on the basis of reason and necessity, including the dimensions and scope of the employer's operations, the number of employees involved, the number of shifts, and other relevant factors.6 The question to be determined is whether Respondent's 5 In explaining his delay in answering Scolnik's letter of October, 4, employees who were becoming increasingly impatient . Under the circum- Nedham testified that he regarded Scolnik's letter as a final determination stances, Nedham's delay in replying to Scolnik's letter can hardly be to resort to litigation instead of further negotiations , but that he finally took regarded as evidence of the Union's unwillingness to continue negotiations the initiative in an effort to resume negotiations at the behest of the 6 There were approximately 150 employees working for E.D.S. on three CONCORD DOCU-PREP, INC. action in admittedly breaking off negotiations on August 15, allegedly because it had concluded that the Union had reneged on its agreement to conduct negotiations with a three-member committee, constituted a refusal to bargain. Scolnik was positive that agreement had been been reached, fortifying his position by his account in the minutes of the meeting which he had prepared, a copy of which he had sent the Union. Needham was equally certain that no such agreement was reached and rejected any suggestion that his failure to challenge the accuracy of Scolnik's minutes constituted acquiescence in Scolnik's assertions. It may be assumed that Nedham was under no legal duty to respond, and that his failure to do so did not result in agreement with Respondent's position on the subject of the three-member committee. It is obvious that there was a misunderstanding and that wishful thinking on both sides had influenced their conclusions. In any event, it is evident that there was no meeting of the minds on the subject matter. Be that as it may, the evidence fairly establishes that Respondent insisted upon agreement on the size and constituency of the Union's negotiating committee, a nonmandatory subject of collective bargaining, as a precondition to further negotiations. Furthermore, by refusing to continue negotiations on the ground that the Union had allegedly breached its agreement regarding a nonmandatory subject of collective bargaining, Respon- dent compounded its refusal to bargain. Judged in retrospect, by the contents of Respondent's reply of October 4, to Nedham's offer to resume negotiations upon Respondent's terms regarding the size of the negotiating committee, the, conclusion is all but inescapable that Respondent utilized the issue of disagreement as to the size and composition of the committee to frustrate collective bargaining regarding mandatory subjects. Nor is Respondent's contention, that it was unwilling to resume negotiations because the Union had failed to keep its alleged agreement regarding the dress code, substantiat- ed by the record. Contrary to Scolnik's testimony, that the revised dress code proposal represented an agreement reached with the Union on August 9, it is apparent from Scolnik's letter of August 11, and the proposed joint announcement that agreement had not been reached on a variety of items- of apparel, Furthermore, it is obvious that the parties intended to issue a joint announcement after agreement had been reached between the parties, as exemplified by Respondent's draft of the revised dress code. 1. The alleged unilateral changes a. The withholding of wage increases Official policy with regard to "Performance, Salary And Promotions," adopted without change by Respondent, is contained in what has been referred to as the E.D.S. Blue Book, entitled "you and your company." Copies of this booklet were furnished all newly hired employees who were required to sign a form in the back of the booklet shifts, at the time of the representation proceeding, and presumably the same number were employed by Respondent. 985 acknowledging that the employee has received and read its contents. Under the heading "Performance Evaluations," after a probationary period, an evaluation is made at least once every 6 months by the supervisor or manager to discuss the employee's "production, attitude and attendance," with suggestions as to possible need for improvement. Prod- uction is defined as including (1) "amount of data prepared, (2) the degree of correctness, (3) the efficient use of your time." The concluding paragraph of this section reads: Salary will not be discussed in this evaluation. The purpose is to keep you informed about your perform- ance and thereby assist you in increasing your effectiveness in your job and the company. Under the "Salary Increases," the booklet provides: Salaries are reviewed within sixty days after a Performance Evaluation for all employees other than those who are in the introductory period of their employment. Increases must be earned by each individual based solely upon their merits of production, attendance, and attitude. Passage of time only becomes a factor when an employee has reached a high level of performance and maintains it. Cost of living increments are built into raises achieved by our employees. Witnesses for the General Counsel,7 however, all of whom had been employed by E.D.S. about 2-1/2 years, testified that when they were hired, they were told that, after a 90-day probationary period, and every 6 months thereafter, they could expect a regularly scheduled wage increase if their performance met adequate standards of production, attitude, and attendance. In accordance with this policy, employees received periodic evaluations by their shift supervisors, and this evaluation was discussed with the employees in a private interview with the manager. If, according to General Counsel's witnesses, performance in regard to production, attendance, and attitude was satisfactory, the employee would receive a raise shortly after the review. Both Ramsey and Kessler received wage increases while employed by E.D.S. after their probationary period, Ramsey receiving more than one raise while so employed. Shutzbaugh received a raise at the end of her probationary period, although she conceded that other employees did not receive a raise at the expiration of their probationary period. Kessler testified that, although she did not receive her raise promptly after her evaluation and review, this was contrary to company policy as stated to her by E.D.S. management representatives. It is evident, however, that Kessler was probably denied later raises, at least in part, because of the imposition of governmental wage and price controls. Moan did not receive her wage increase following completion of her period of probation until more than 6 weeks later, and then only after repeatedly complaining to her supervisor and manager. Her increase, moreover, was not retroactive to the completion of her probation. On July 14, when Respondent posted the notices announcing that it was continuing the terms, conditions of 7 Teme Ramsey, Sue Moan, Alyce Shutzbaugh, and Kathy Kessler. 986 DECISIONS OF NATIONAL LABOR RELATIONS BOARD employment, and benefits which had prevailed under E.D.S., Ramsey asked Supervisor Patricia B. "Pat" Finkelstein whether existing wage policies would be continued . Her supervisor said that they would. In about mid-October, when, according to her calculations, she would have become entitled to a wage increase, Ramsey asked Finkelstein when she could expect her raise. Finkelstein told her that no raises could be granted because of the breakdown in union negotiations, and that all raises would have to be approved by the union negotiating committee . Ramsey told Finkelstein that she had discussed the matter with a Board agent, and had been informed that regularly scheduled raises were permissible during negotiations,, and could not be granted or withheld on the basis of union considerations. Finkelstein retorted that that was not her understanding. On or about November 20, Ramsey asked Richard Finucan, Respondent's manager, whether the employees could expect any raises. Finucan told her that he had a list in his desk drawer of employees who were due for raises, which he had submitted to Hickey, but that Hickey told him, on advice of counsel, to withhold all raises because of the state of negotiations. Ramsey repeated what she had been told by the Board agent, regarding the granting or withholding of wage increases during negotiations, and protested that the Company could grant raises but was refusing to do so. Finucan, according to Ramsey, acknowl- edged that that was essentially correct. In mid-January 1973, Ramsey again discussed the subject of wage increases with Finucan. Again, he referred to lists in his desk drawer of employees who were due to receive raises , stating that he had submitted the list to President Hickey but that Hickey had again said that he had been instructed by counsel to withhold raises because of the breakdown in negotiations. In November, Moan had a 6-month evaluation interview with Finucan in his office. Because, according to Moan, her production had increased substantially, she asked him if she could expect a raise. Fmucan told her that no raises would be forthcoming because of the breakdown in negotiations, and that all raises would have to be submitted to the Union for approval. During this discussion, Finucan mentioned that he had three, separate lists of employees: one for employees who were overdue for raises; another for employees who were then due for raises; and a list of employees scheduled to receive raises in the future. In September or October, Kessler also spoke to Finucan about the matter of raises. On this occasion, Finucan removed from his desk drawer a list, containing two columns, and explained to Kessler that one consisted of employees due for raises in November, and the other for 8 The above findings are based on the credible and substantially uncontradicted testimony of the named employees. Finucan did not testify. On Tuesday, February 27, 1973, while the hearing was in progress, Respondent moved for a 60-day continuance, upon the representation, supported by a doctor's certificate, that Finucan had been hospitalized with a heart condition, and would be unable to testify for at least 3 weeks. Respondent was thereupon granted a continuance until March 20, 1973. When the hearing was reconvened, on March 20, Respondent 's counsel announced that he did not intend to call Finucan as a witness, and that his decision was not based on reasons relating to Fmucan's health or physical condition. Under all the circumstances , the testimony of the witnesses concerning remarks made to them by Finucan, related above, are credited those due after the first of the year. Finucan told Kessler that, according to records and policies of E.D.S., she would be due for a raise after the first of the years According to Finkelstein, when she was originally hired by Hank Falck, manager of E.D.S., she was told that she would be "eligible for consideration" for a raise after a 90- day probationary period and every 6 months thereafter. This is consistent with Respondent's position, as expressed in the Blue Book, that while evaluations were to be made at least once every 6 months, and salaries reviewed within 60 days thereafter, "increases [would have to be] earned by each individual based solely upon their merits of prod- uction, attendance, and attitude." Thus, it is evident that Respondent's policy did not contemplate automatic, regularly scheduled wage increases even where the employee had satisfied all the performance requirements. Whatever may be said as to the fairness or equity of such a policy, the record fairly establishes that Respondent retained absolute discretion in the granting of wage increases, irrespective of whether the employee merited an increase based on the criteria laid down in the Blue Book. Nor does the fact that employees who testified for the General Counsel actually received raises after given periods warrant a contrary conclusion. The most that can be said is that under Respondent's policy merit raises in unspecified amounts might be granted at the Employer's sole discretion. The record reveals, however, that Respondent had decided to grant raises to some unidentified employees but withheld such action because the Company was engaged in negotiations with the Union. Thus, at least two employees testified credibly and without contradiction that Manager Finucan had told them that he had prepared several lists of categories of employees who were entitled to raises or whose raises were overdue, as well-as those who would become entitled to raises in November.9 It is significant that, according to the unrefuted testimo- ny of witnesses for the General Counsel, both Supervisor Finkelstein and Manager Finucan told them that the Company had determined that no wage increases would be granted pending the outcome of the negotiations. This supports the inference that Respondent had decided upon the granting of merit increases to certain employees, but resorted to the pendency of negotiations as justification for the denial of these wage increases. It is well settled that the decision of whether to grant or withhold merit wage increases must be determined without regard to questions of union considerations.10 It should be noted that at no time did Respondent notify the Union that it had decided to grant certain eligible employees merit wage increases and request the Union's approval of such action. Instead, 9 Although the General Counsel subpenaed the production of these lists, Respondent's counsel, in declining to comply with the subpena, represented that no such lists existed , although no probative evidence was offered to support this statement . As has already been noted, Finucan did not testify. It is, therefore, found that, whether lists such as those described by the General Counsel's witnesses had, in fact, been compiled or were in existence , Fmucan told these employees, in effect, that the Company had determined to grant merit increases to employees who had become entitled to them 10 Pacific Southwest Airlines, 201 NLRB 647; The Gates Rubber Co, 182 NLRB 95. Cf. N.LR.B. v. Katz, 369 U.S. 736 (1962). CONCORD DOCU- PREP, INC. 987 Respondent sought to place the onus for the withholding of such increases on the Union. It is, therefore, found that, although Respondent did not maintain a policy of granting automatic , regularly sched- uled wage increases after performance evaluations, Res- pondent had decided to grant merit increases to various eligible employees, which it subsequently withheld, ostensi- bly because of the pendency of bargaining negotiations. By so doing, Respondent has unilaterally changed the terms and conditions of employment of its employees, without first notifying or negotiating with the Union , as exclusive bargaining agent, in violation of Section 8(a)(5) and (1) of the Act. b. The institution of the revised dress code As has already been found, no final agreement had been reached between the parties regarding the revised dress code prior to August 15 or at any time thereafter. The fact that the parties had contemplated the posting of a "Joint Announcement to All Employees," embodying the revised policy, which never materialized, is ample evidence that no agreement had been reached. Nevertheless, although no impasse on this issue had been reached , in about mid- September, Respondent unilaterally instituted a revised dress code. Aside from its contention that the parties had reached agreement on this issue at the August 9 meeting, a position not borne out by the record, Respondent maintains that employees on the first and third shifts, having learned that changes in the dress code had been discussed between the Company and the Union, in effect, jumped the gun, and put the changes into effect on their own initiative. When employees on the second or night shift protested to Supervisor Finkelstein that they were being unfairly discriminated against by being required to adhere strictly to the existing dress code , while employees on the other shifts were being permitted to disregard it, Finkelstein consulted President Hickey. He instructed her to notify the employees on her shift that the revised code would be applied uniformly to all employees. After commending her employees for exercising restraint in not following the lead of the employees on the other shifts, Finkelstein informed them of Hickey's decision. The implication in Respondent's argument, that the situation somehow got out of hand after employees learned of negotiations concerning the dress code, is unconvincing. Considering 'the' strictness with which the code had previously been enforced , it is difficult to believe that Respondent would have tolerated any deliberate deviation from the code. Without regard to whether disciplinary action might have been warranted , all that was required was to apprise the employees that negotiations regarding a revised dress code were underway, and that a joint announcement would be issued when agreement was reached. Failing to do this, Respondent confirmed and ratified the action of its employees, and unilaterally instituted the revised dress code. c. Reduction in cleanup time In or about mid-September Supervisor Finkelstein announced to all unit heads under her supervision that cleanup time at the end of the swing shift would be reduced from 5 to 3 minutes . According to her, all units of employees on the second shift , excepting those processing so-called Boston claims , had always been allowed only 3 minutes cleanup time. In or about mid-1971 , while E.D.S. was still the employer, employees handling Boston claims were allowed an additional 2 minutes, for a total of 5 minutes cleanup time because of the additional work involved. In July or August 1972, work on the Boston claims was discontinued, and, according to Finkelstein, the Company reverted to its former policy of 3 minutes cleanup time. Finkelstein made the announcement of the change in cleanup time to all unit heads, notwithstanding that only two of the units had worked on the Boston claims. Apart from the testimony of General Counsel's witnesses, notably Shutzbaugh, who had worked for Respondent and its predecessor for a total of 2 1/2 years, that cleanup time had always been 5 minutes on all- shifts , it is undisputed that employees processing Boston claims had been allowed 5 minutes cleanup time. As to these employees, at least, the Union was entitled to prior notice and an opportunity to bargain about the reduction in cleanup time . Whether Respondent took the action with respect to all employees because of the loss of the Boston claims or because, as Respondent claimed, employees generally had been abusing the cleanup time allowed, the fact remains that Respondent took unilateral action on a matter involving the terms and working conditions of its employees, without affording their exclusive representative an opportunity to bargain on the subject. As a change in working conditions , this was a subject concerning which Respondent had a duty to bargain with the Union, and by failing to do so, Respondent has violated Section 8 (a) (5) and (1) of the Act. Summary and Conclusions It is undisputed that only three negotiating meetings took place between the parties , on July 26, August 9, and August 15 . The first meeting was devoted primarily to the size and composition of the Union 's negotiating commit- tee, a nonmandatory subject of collective bargaining. Despite some desultory discussion on contract matters, the issue concerning the negotiating committee overshadowed all other issues . The August 9 meeting was occupied largely with the subject of the dress code, and procedures for revising and implementing the code, with the understand- ing that a joint announcement would be made by Respondent and the Union . The final meeting on August 15, terminated abruptly with the Respondent's insistence that the Union had breached an agreement allegedly arrived at as to the number of persons to serve on the negotiating committee . With regard to the dress code, despite its commitment to issue a joint announcement, Respondent unilaterally instituted a revised code , ostensi- bly because employees on one shift had, on their own initiative , put the changes into effect. At each stage of the negotiations , Respondent, through Scolnik, its principal negotiator , by the stratagem of submitting purported minutes of the meetings, sought to 988 DECISIONS OF NATIONAL LABOR RELATIONS BOARD obtain firm commitments concerning subjects raised at these meetings , by regarding the Union's failure to respond as acquiescence in Respondent's position. When the Union attempted to set the record straight, at subsequent meetings, it was sharply denounced for having allegedly revoked its interim agreement. The technique of attempt- ing to reduce to writing interim agreements at each stage of negotiations may have a salutary purpose. But to attempt to accomplish this by preparing self-serving minutes of negotiation meetings, and imposing the burden on the other side of refuting the contents of the minutes, could conceivably lead to an interminable controversy over whether the minutes correctly reflected what had taken place at the meetings. Had the Union notified Respondent of its objection to the minutes and drafted and submitted its own minutes, Respondent would undoubtedly have found matters over which to take issue. Such collective- bargaining techniques would have the effect of substituting debate over form for genuine negotiation over matters of substance. Moreover, the insistence on agreement on issues at each stage of negotiations before proceeding to the next stage is not conducive to genuine, good-faith collective bargaining. It is common knowledge that parties may, during later stages of negotiations , make concessions as a quid pro quo over matters on which they had been unwilling to yield earlier. Respondent's policy of insisting on interim agreements had the effect of fragmenting the collective- bargaining process and replacing flexibility with rigidity. In fact, Respondent's approach to collective bargaining by the use of its minutes, especially when considered in light of its final letter to the Union, proposing that the controversy had perhaps best be litigated, strongly suggests that in the drafting of these minutes, Respondent was concerned more with making a record for use in any future litigation than with furthering the purposes of collective bargaining. Upon the basis of the foregoing, and upon the entire record, it is hereby found that, by terminating or suspending negotiations on August 15, and thereafter failing and refusing to resume negotiations upon request, purportedly because the Union had failed to adhere to an agreement allegedly reached regarding the size and composition of the negotiating committee, and the revised dress code, Respondent has engaged in unfair labor practices within the meaning of Section 8(a) (5) and (1) of the Act. It is further found that, by its unilateral action in withholding merit wage increases, instituting a revised dress code, and reducing employees' cleanup time, without prior notice to and negotiation with the Union, Respon- dent has engaged in further unfair labor practices within the meaning of Section 8(a)(5) and (1) of the Act. The record clearly establishes that, on September 29, the Union offered to resume negotiations on Respondent's own terms regarding the size of the Union's negotiating committee. On October 4, Respondent rejected this offer, contending that it was not required to bargain on a conditional basis, demanded an apology from the Union for its alleged breach of purported interim agreements, and, in effect, defied the Union to proceed to litigation of the refusal to bargain issues. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of Respondent, set forth in section III, above, occurring in connection with the operations of Respondent, described in section 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 burdening and obstructing commerce and the free flow of commerce. V. THE REMEDY Having found that Respondent has engaged in unfair labor practices within the meaning of Section 8(a)(5) and (1) of the Act, it will be recommended that Respondent cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. It has been found that Respondent has refused to bargain collectively with the Union as the exclusive representative of its employees in an appropriate unit despite the Union's majority status. It will, therefore, be recommended that Respondent bargain collectively with said Union upon request. It has further been found that Respondent unlawfully withheld merit increases from employees whom it had found eligible for such increases, thereby unilaterally changing the wages and terms and conditions of employ- ment of its employees without prior consultation and negotiation with the Union. It will, therefore, be recom- mended that Respondent be required to grant those employees the increases to which they would have been entitled, under Respondent's preexisting policy (except to the extent that any such increases may have been affected by existing governmental wage regulations). It has also been found that Respondent unilaterally, and without prior notice to and negotiation with the Union, reduced employees' allotted cleanup time. It will, therefore, be recommended that Respondent be required to restore to all its employees the amount of cleanup time previously enjoyed by the employees in accordance with preexisting company policy. Nothing herein shall be deemed to require or permit Respondent to alter or modify changes in the dress code or other terms and conditions of employment previously accorded to its employees. Upon the basis of the foregoing findings of fact and upon the entire record in the case, I make the following: CONCLUSIONS OF LAW 1. Concord Docu-Prep, Inc., Respondent herein, is, and all times material herein has been, an employer engaged in commerce and in an industry affecting commerce within the meaning of Section 2(2), (6), and (7) of the Act. 2. Office And Professional Employees Union, Local 29, Office And Professional Employees International Union, AFL-CIO, the Union herein, is, and at all times material herein has been, a labor organization within the meaning of Section 2(5) of the Act. 3. All full-time and regular part-time clerical and data CONCORD DOCU-PREP, INC. 989 processing employees employed by Concord Docu-Prep, Inc., at its California location, including all _ key disc operators, control clerks and unit heads; excluding confidential employees, managerial employees, sales per- sonnel, guards, and supervisors as defined in the Act, constitute, and at all times material herein have constitut- ed, a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act. 4. Office And Professional Employees Union, Local 29, Office And Professional Employees International Union, AFL-CIO, herein called the Union, was on July 1, 1972, and at all times material thereafter has been, the exclusive representative of all the employees in the aforesaid appropriate unit, for the purposes of collective bargaining within the meaning of Section 9(a) of the Act. 5. By refusing, since August 15, 1972, and at all times thereafter, to bargain collectively with Office And Profes- sional Employees, Local 29, Office And Professional Employees International Union, AFL-CIO, as the exclu- sive representative of Respondent's employees in the aforesaid appropriate unit, making unilateral changes in wages, hours, or terms or conditions of employment, including withholding merit wage increases, in disregard of its preexisting policy because of union considerations; instituting a revised dress code; and reducing employees' cleanup time, without notification to or negotiation with the exclusive representative of Respondent's employees, in September and October 1972, thereby refusing to bargain collectively with Office And Professional Employees Union, Local 29, Office And Professional Employees International Union, AFL-CIO, as the exclusive represent- ative of Respondent's employees in the aforesaid appropri- ate unit, Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(5) and (1) of the Act. 6. By the foregoing conduct, Respondent has interfered with, restrained, and coerced its employees in the exercise of rights guaranteed in Section 7 of the Act, thereby violating Section 8(a)(1) thereof. 7. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2(6) and (7) of the Act. Upon the basis of the foregoing findings of fact and conclusions of law, and upon the entire record, and pursuant to Section 10(c) of the Act, I make the following recommended: ORDERI' Concord Docu-Prep, Inc., Respondent herein, its offi- cers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Refusing to bargain collectively with Office And Professional Employees Union, Local 29, Office And Professional Employees International, AFL-CIO, as the 11 In the event no exceptions are filed as provided by Sec. 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings, conclusions , and recommended Order herein shall, as provided in Sec. 102.48 of the Rules and Regulations , be adopted by the Board and become its findings, conclusions, and order, and all objections thereto shall be deemed waived for all purposes. exclusive representative of all the employees in the appropriate unit above described. (b) Unilaterally making any changes in wages, hours, or terms or conditions of employment, including withholding of merit increases in disregard of its preexisting policy; instituting a revised dress code; and reducing employees cleanup time , without prior notification to or negotiation with the Union, as exclusive representatives of its employ- ees in the appropriate unit. (c) In any like or related manner interfering with, restraining , or coercing its employees in the exercise of the right to self-organization, to form labor organizations, to join or assist Office And Professional Employees Union, Local 29, Office And Professional Employees International Union, AFL-CIO, or any other labor organization, to bargain collectively through representatives of their own choosing, and to engage in other protected concerted activities for the purposes of collective bargaining or other mutual aid or protection' guaranteed in Section 7 of the Act, or to refrain from any or all such activities, 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 authorized in Section 8(a) (3) of the Act, as amended. 2. Take the following affirmative action which, it is found, will effectuate the policies of the Act: (a) Upon request, bargain collectively with Office And Professional Employees Union, Local 29, Office And Professional Employees International Union, AFL-CIO, as the exclusive representative of all its employees in the appropriate unit described above and, if an understanding is reached, embody such understanding in a signed agreement. (b) Grant those employees who would have been entitled to merit increases under Respondent's preexisting policy, such increases (except to the extent that any of such increases may have been affected by existing governmental wage regulations). (c) Restore to all its employees the amount of cleanup time previously enjoyed by the employees in accordance with preexisting company policy. (d) Post at its place of business in Concord, California, copies of the attached notice marked "Appendix." 12 Copies of this notice on forms to be furnished by the Regional Director for Region 20, shall, after being signed by Respondent's duly authorized representative, be posted by Respondent immediately upon receipt thereof, and be maintained for 60 consecutive days thereafter, in conspicu- ous places, including all places where notice to employees are customarily posted. Reasonable steps shall be taken by Respondent to ensure that said notices are not altered, defaced, or covered by other material. (e) Notify the Regional Director for Region 20, in writing, within 20 days from the date of this Order, what steps Respondent has taken to comply herewith. It is 12 In the event the Board's Order is enforced by a Judgment of the United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." 990 DECISIONS OF NATIONAL LABOR RELATIONS BOARD further recommended that, in all other respects, the complaint be dismissed. APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT refuse to bargain collectively with Office And Professional Employees Union, Local 29, Office And Professional Employees International Union, AFL-CIO, as the exclusive representative of our employees in the appropriate unit described below. WE WILL NOT unilaterally make any changes in wages, hours, or terms or conditions of employment, including withholding of merit increases in disregard of our preexisting policy; institute a revised dress code; or reduce employees cleanup time, without prior notifica- tion to or negotiation with the Union, as exclusive representative of the employees in the appropriate unit. WE WILL NOT in any like or related manner interfere with, restrain, or coerce our employees in the right to self-organization, to form labor organizations, to join or assist Office And Professional Employees Union, Local 29, Office And Professional Employees Interna- tional Union, AFL-CIO, or any other labor organiza- tion, to bargain collectively through representatives of their own choosing, to engage in concerted activities for the purpose of mutual aid or protection or to refrain from any and all such activities, except to the extent that said right may be affected by an agreement requiring membership in a labor organization as provided in the proviso to Section 8(a)(3) of the Act, as amended. WE WILL bargain collectively with the above-named Union, as the exclusive representative of our employees in the appropriate unit described below, with respect to rates of pay, hours of employment, or other conditions of employment and, if an understanding is reached, embody such understanding in a signed agreement. WE WILL grant those employees who would have been entitled to merit increases under our preexisting policy, such increases (except to the extent that any such increases may have been affected by existing governmental wage regulations). WE WILL restore to all our employees the amount of cleanup time previously enjoyed by them in accordance with our preexisting policy. The appropriate bargaining unit is: All full-time and regular part-time clerical and data processing employees employed by Concord Docu-Prep, Inc., at its Concord, California location, including all key disc operators, control clerks and unit heads; excluding confidential employees, managerial employees, sales person- nel guards and supervisors as defined in the Act. All our employees are free to become and remain or refrain from becoming or remaining members of the above-named labor organization or any other labor organization. CONCORD DOCU-PREP, INC. (Employer) Dated By (Representative) (Title) This is an official notice and must not be defaced by anyone. This notice must remain posted for 60 consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concern- ing this notice or compliance with its provisions may be directed to the Board's Office, 13018 Federal Building, Box 36047, 450 Golden Gate Avenue, San Francisco, California 94102 Telephone 415-556-0335. Copy with citationCopy as parenthetical citation