Crimptex, Inc.Download PDFNational Labor Relations Board - Board DecisionsJun 21, 1974211 N.L.R.B. 855 (N.L.R.B. 1974) Copy Citation CRIMPTEX, INC. 855 Crimptex, Inc. and its affiliates French -Tex of Puerto Rico, Inc ., Hamlet Industries, Inc. and Emtine, Inc. and Union de Trabajadores de la Crimptex, Inc. Afiliada at Sindicato Puertorriqueno de Trabaja- dores de la Amalgamated Meat Cutters and Butch- ers Workmen of North America , AFL-CIO. Case 24-CA-3367 committed the violations of the Act alleged . Upon due notice, the case was tried before me at Hato Rey, Puerto Rico, on January 17, 1974. Representatives of all parties were present and participated in the hearing. Based on the entire record , including the stipulations of the parties , I make the following: FINDINGS AND CONCLUSIONS June 21, 1974 DECISION AND ORDER BY MEMBERS FANNING, KENNEDY, AND PENELLO On March 26, 1974, Administrative Law Judge Jennie M. Sarrica issued the attached Decision in this proceeding. Thereafter, Respondent filed excep- tions and a supporting 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 brief and has decided to affirm the rulings, findings, and conclusions of the Administrative Law Judge and to adopt her 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 Crimptex and its affiliates French-Tex of Puerto Rico, Inc., Hamlet Industries, Inc., and Emtine, Inc., San German, Puerto Rico, their officers, agents, successors, and assigns , shall take the action set forth in the said recommended Order. DECISION STATEMENT OF THE CASE JENNIE M. SARRICA , Administrative Law Judge: This is a proceeding under Section 10(b) of the National Labor Relations Act, as amended (29 U.S.C. § 151, et seq. ), hereinafter referred to as the Act. Based on charges filed on June 22 , 1973,1 as thereafter amended , a complaint issued December 12, and amended at the hearing herein, presenting allegations that Crimptex , Inc. and its affiliates French-Tex of Puerto Rico , Inc., Hamlet Industries, Inc., and Emtine , Inc., hereinafter collectively referred to as the Respondent , committed unfair labor practices within the meaning of Section 8(a)(1) and (5) and Section 2(6) and (7) of the Act. The Respondent filed an answer denying that it I Unless otherwise indicated , all dates are in 1973. I. JURISDICTION Respondent admits and I find that Crimptex, Inc., French-Tex of Puerto Rico, Inc., Hamlet Industries, Inc., and Emtine, Inc., all Puerto Rican corporations, are and at all times material herein have been, affiliated businesses with common officers, owners, directors, and operators, and constitute a single integrated business enterprise. At all times material herein, Respondent has maintained an office and place of business at San German, Puerto Rico, where it is and has been at all times material herein, engaged in the processing, sale, and distribution of nylon yarn and related products. During the past year, which period is representative of its annual operations generally, Respondent, in the course and conduct of its business, purchased and caused to be transported and delivered to its San German plant, goods and materials valued in excess of $500,000, of which goods and materials valued in excess of $50,000 were transported and delivered to its plant in interstate commerce directly from States of the United States. Respondent is, and has been at all times material herein, an employer engaged in commerce within the meaning of Section 2(2), (6) and (7) of the Act. II. THE LABOR ORGANIZATION Respondent admits, and I find, that the Charging Party, Union de Trabajadores de la Crimptex, Inc., Afiliada al Sindicato Puertorriqueno de Trabajadores de la Amalga- mated Meat Cutters and Butchers Workmen of North America, AFL-CIO, hereinafter called the Union, is now, and has been during all times material herein, a labor organization within the meaning of Section 2(5) of the Act. III. THE ALLEGED UNFAIR LABOR PRACTICE A. The Issues Inj substance, it1 is,alleged thatd Respondent . has refused, and is, unlawfully refusing, to bargain within the meaning of the Act by refusing; to execute the agreedupon,collective- bargaining contract and by adopting and announcing the position that the Union is no longer the majority representative of the employees in the existing unit. Respondent affirmatively defends its position as lawful on the grounds that the Union repudiated their agreement by engaging in a material breach thereof before the contract could be executed, through striking in the face of an agreed upon contract no-strike clause, and that the Union lost its majority status through permanent strike replacements. 211 NLRB No. 152 856 DECISIONS OF NATIONAL LABOR RELATIONS BOARD B. The Events Involved According to the stipulation of the parties , the Respon- dent and the Union have been parties to several successive agreements , the last of which expired on March 5. Negotiations for a new agreement were undertaken and on March 23 , the Respondent and the Union reached agreement on a collective-bargaining contract encompass- ing all terms and conditions of employment covering employees in the established appropriate unit . Respondent reduced that agreement to writing on March 28 and submitted a copy to the Union with a covering letter on March 29 .2 On March 28, employees at Respondent 's plant began a strike3 which lasted until May 9 . By letter dated April 27, the Respondent advised the Union that it viewed the strike as a direct violation and repudiation of their agreement4 and that it was, therefore , rescinding the written but unexecuted agreement reached on March 23. By its terms the contract which included a no-strike clause was to "become effective on the date of its execution " On May 9, Respondent and the Union signed a strike settlement agreement , entitled stipulation , in which it was agreed, inter alia, that: The economic terms and conditions of the Collective Bargaining Agreement agreed upon by the parties the 23rd of March 1973, shall become effective for the striking employees who may return to work from the date of their return to work. Immediate reinstatement of all strikers was thereupon requested . Pursuant to this strike settlement agreement 42 strikers were reinstated. On March 28, when the strike began there were 103 unit employees , 85 of whom were union members pursuant to a union shop clause contained in the expired contract ; the 18 nonmembers being at that time within their first 30 days of employment. When the strike ended on May 9, there were 71 working replace- ments .5 Respondent 's general manager, Henry Pelletier, testified that the economic terms and conditions of the March 23 agreement were made effective for all returning strikers and new employees (presumably striker replace- ments). s That letter reads as follows: Attached you will find a copy of the contract proposal to be signed by and between [Respondent and the Union ] , which we trust contains all the agreements reached at [sic ] by the parties dur.ng the negotiations. We will appreciate that you give us your approval of same and the date when it can be signed. The letter and drafted contract were received as joint exhibits 9 It was stipulated that the strike was for the purpose of obtaining removal of a supervisor. 4 On April 2, the Respondent had filed a charge against the Union, later withdrawn , alleging violation of Section 8(bX3), refusal to bargain by refusing to execute a collective-bargaining agreement. No other charges, petitions, or other proceedings in connection with the matters related herein , were initiated by the Respondent against the Union with the National Labor Relations Board. 3 These are all the statistics supplied by the stipulation of the parties and no other evidence was presented on this question . Respondent's counsel indicated in the course of argument that more than 80 percent of the strike replacements were currently working, and that it was only after hiring such Thereafter, by letters dated May 11 and June 18 and 29, the Union requested the Respondent to sign the agreed- upon written but unexecuted collective -bargaining agree- ment . Receipt of these letters is acknowledged but Respondent made no reply and has not to date executed said agreement. C. Analysis and Findings The burden of Respondent 's defenses to the charges herein rests on the legal effect of the Union's conduct after bargaining for a new contract culminated in an oral agreement which had not yet been executed . It is settled law that the existence of a strike does not suspend the obligation on the part of an employer to bargain with the bargaining representative of its employees .6 Even assuming that union actions in delaying execution of the written contract submitted by the Respondent was in violation of Section 8(bX3), and that the strike was an unlawful one because of its purpose, the employer's duty to bargain with the incumbent Union was not removed , but only suspend- ed for the duration of the unlawful conduct . ? Nor can the employer challenge the Union's majority on the ground that the strike was in violation of the agreed upon no-strike provision and therefore unprotected activity, for even if Respondent had a right to discharge striking employees for that reason it did not do so, they remained employees,8 and the Union remained their representative. Considering first the Union's poststrike majority status, contrary to the import of Respondent 's contention strike replacements do not displace striking employees from the unit for purposes of determining the Union's continued majority and the employer's continuing duty to bargain. For, under established precedent, even though economic strikers are permanently replaced , they must be counted as employees for unit representation purposes .9 Further, there is a presumption that the majority status of an incumbent union continues and it is the burden of the party challenging that status to establish loss of majority or reliance on objective grounds for a good faith doubt.10 Here, absent evidence to the contrary, it is assumed that there were 103 strikers , none of whom have been shown by Respondent to have withdrawn from the Union the right to represent them . It cannot be assumed that the 18 non- replacements in early May that the parties entered into strike settlement negotiations. 6 See General Electric Company, 163 NLRB 198, 213, and cases cited therein , enfd. in pertinent part 400 F .2d 713 (C.A. 5, 1968) r See International Shoe Corporation of Puerto Rico, 152 NLRB 699, 702; 423 F.2d 503 (C.A. 1, 1970); Litho-Graphic Press, Inc., 159 NLRB 1, 4. 6 The employee status of strikers, within the meaning of the Act, is not automatically severed because a strike is in violation of their agreement. Dorsey Trailers, Inc., 80 NLRB 378. 9 See Cantor Bros., Inc, 203 NLRB No. 116, quoting pertinent parts of C H. Guenther & Son, Inc , d/b/a Pioneer Flour Mills, 174 NLRB 1202, enfd. 427 F .2d 983 (C.A. 5, 1970), and other relevant cases . The court decision in Pioneer specifically approved the Board 's reversal of the Stoner Rubber Company, Inc., 123 NLRB 1440, practice of excluding permanently replaced economic strikers in ascertaining majority status, on the basis of rationale underlying the 1959 amendments and Section 9(c)(3) of the Act. See also Dobbs House, Inc., 188 NLRB 546; Keystone Trucking Co., 196 NLRB 574, 575 , fn. Il. Accordingly, Respondent's argument based on Higgins Inc., 90 NLRB 184, is without merit. io Nu-Southern Dyeing & Finishing, Inc., 179 NLRB 573, enfd . in part 444 F.2d 11 (C .A. 4, 1971 ); also see discussion in Cantor Bros., Inc., supra. CRIMPTEX , INC. 857 members who had been employed less than 30 days when the strike began did not desire that the Union represent them. Even assuming that none of the 71 strike replace- ments desired the Union to represent them, they are only part of an overall employee complement of 174 employ- ees.11 Respondent has therefore not demonstrated that the Union no longer represented a majority of the employees nor has it established that objective considerations existed on which it entertained a good faith belief that the Union lost its majority. Since the strike settlement , Respondent has not replied to the various communications from the Union but has withheld recognition and bargaining. Accordingly, I find that Respondent has refused to bargain with the statutory representative of its employees in violation of Section 8(a)(5) and (1) of the Act. There remains the question of whether, as alleged in the complaint, the Respondent also violated Section 8(a)(5) and (1) of the Act by refusing, after the strike ended, to sign the previously negotiated contract. As noted above, Respondent relies upon the Union's alleged refusal to execute the written contract and breach of the no-strike provision of their agreement as not only a material breach thereof but also a repudiation of the agreement which justified Respondent's own rescission of that agreement. For the proposition that such actions on the part of the Union and its election to rescind relieved it of any further obligation with respect to the agreement, Respondent relied on a case involving a Section 301 suit to recover damages for breach of contract. 12 In that case, the United States Court of Appeals for the Ninth Circuit held that: [A]t the time immediately after the strike began when Boeing elected to terminate the contract the union had been guilty of a material breach which fell short of abandonment or total repudiation of the contract. The power of termination which accrues to the wronged party as a result of such a breach and was exercised by Boeing in this case is a right of rescission which leaves neither party with any basis thereafter to complain of the conduct of the other as a breach of the contract. However, that decision clearly is limited to actions involving private rights in breach of contract and liability under the contract, and is not dispositive of any question concerning fulfillment of the duty to bargain, which involves a public issue. It is well settled that technical rules of contract law are not necessarily controlling in cases arising under the Act.13 11 The 174 consists of 71 replacements , 42 reinstated strikers and 61 replaced strikers . The figure of 61 replaced strikers is arrived at by subtracting the 42 reinstated strikers from the total complement of 103 employees when the strike began all of whom presumably went on strike. It is not clear from the record whether the excess of 10 replacements over the number not yet reinstated represents an increase in total employment or the number of replacements who did not remain in Respondent's employ, alluded to by counsel. (See In . 5, supra. ) In any event, these figures are the most favorable to Respondent 's position. 12 Boeing Airplane Co. v. Assn. of Machinists, 188 F.2d 356, affg. 91 F.Supp. 596, cert . denied 342 U.S. 821. However, also in a Section 301 suit involving the rights of the parties to a contract , it has been held that the alleged violation of a no -strike clause does not automatically entitle an employer to repudiate the contract . The issue of whether the Union evinced an intent to repudiate the agreement, or whether they violated it at all must Clearly absent mitigating circumstances, the Respondent was obligated to sign the agreement reached with the statutory representative of its employees, and failure to do so upon request violated Section 8(a)(5) of the Act.14 This obligation is not merely a ministerial act, but encompasses liability for benefits provided by the agreement.15 As to whether such mitigating circumstances exist, the General Counsel asserts that neither the Union's earlier refusal to execute the agreement, nor any breach of the no- strike clause has any legal consequence, for the "unclean hands" doctrine is not a defense to allegations of unfair labor practices 16 and, in any event, there could have been no breach of the agreement because, by its terms, the contract was to take effect only upon execution. While the first proposition advanced by the General Counsel reflects a correct statement of the general rule in labor law, and the second is factually correct, I do not believe such conclusions adequately meet the total implica- tions of the Respondent's defense. Unfortunately, I do not have the benefit of briefs to elucidate the arguments supporting the opposing positions. If the reasoning of Respondent's position is that by the Union's conduct in failing to arrange for execution of the written contract submitted by Respondent and, at the same time, engaging in a strike which was contrary to a contract clause it had just agreed to, the Union demonstrated an intent to repudiate that agreement, I must reject such contention. It could as logically be argued that the Union delayed signing the agreement, which by its terms took effect upon execution, precisely because it did not wish to repudiate that agreement. As Respondent took steps to specifically rescind the agreement, it would appear that Respondent is contending that the Union's conduct created changed circumstances which warranted its rescission of contract proposals previously agreed to. I believe such a position to be without merit. For, there is no question but that the parties had reached a full understanding and that no further negotia- tions were contemplated. Therefore, cases involving changed circumstances warranting withdrawal of contract proposals or concessions previously made are not applica- ble.17 In view of the fact that the last preceding contract between the parties had expired, and there is no evidence herein of any provisions thereof, Respondent's allegation that the strike was a violation of the no-strike clause agreed to by the Union suggests the assertion that until the written contract could be prepared and executed the parties were bound by the provisions of an oral agreement which took be determined in the first instance . See Cast Optics Corp v. Textile Workers, 75 LRRM 2169. 13 See Restaurant Association of the State of Washington, Inc., 190 NLRB 133, 138-139, and cases cited therein. 14 H. J Heinz Company v. N .LR.B, 311 U.S. 514, 525, Sec 8(d) of the Act. 15 See, e.g., Ogle Protection Service Inc., 149 NLRB 545, enfd 375 F 2d 497 (C A. 6, 1967); Roesch Transportation Co., 157 NLRB 44; Tanner Motor Livery, Ltd., 160 NLRB 1669. 16 The General Counsel relies upon Plumbers Union of Nassau County, Local 457, 131 NLRB 1243. 17 Cf. Caroline Farms Division of Textron, Inc, 163 NLRB 854, enforcement denied 401 F.2d 205 (C.A. 4, 1968), for varying views of the effect of intervening events. 858 DECISIONS OF NATIONAL LABOR RELATIONS BOARD effect when bargaining was concluded on March 23. However, relinquishment of statutory rights such as the right to strike are not lightly inferred, but must be clearly and unmistakably established . Although the Board has had occasion to find that a no-strike commitment existed based on an oral interim agreement governing terms and conditions of employment between contracts, it did so only on specific evidence not only as to intent but also evidence of a quid pro quo commitment to make any wage increases retroactive to the expiration of the preceding contract.18 There is no such evidence here . Significantly, Respondent is not contending that it was bound by and obligated to put into effect immediately the terms and conditions of employment it had agreed to at the same time . I conclude that the parties clearly intended none of the provisions of their bargain to become operative until the final written contract was executed . Accordingly, I find that the strike did not bestow on Respondent a right to rescind the bargaining agreement previously reached with the Union and that by failing to comply with the Union's requests of May 11, June 18 and June 29, Respondent violated Section 8(a)(5) of the Act. CONCLUSIONS OF LAW 1. Respondent is an employer engaged in commerce within the meaning of Section 2 (2), (6), and (7) of the Act. 2. Union de Trabajadores de la Crimptex, Inc., afiliada al Sindicato Puertorriqueno de Trabajadores de la Amalga- mated Meat Cutters and Butchers Workmen of North America, AFL-CIO is a labor organization within the meaning of Section 2 (5) of the Act. 3. All production and maintenance employees em- ployed by Respondent at its plant located at San German, Puerto Rico, including mechanics and chauffeurs; but excluding executive employees , professional and adminis- trative employees , office clerical employees, foremen, guards and supervisors as defined in the Act, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act. 4. By refusing to execute the agreement consummated as a result of negotiations between the Respondent and the Union, and by withdrawing and withholding recognition from the Union as the collective-bargaining representative of its employees in the appropriate unit, Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(5) of the Act. 5. By the foregoing conduct Respondent has interfered with, restrained, and coerced its employees in the exercise of their statutory rights within the meaning of Section 8(a)(l) of the Act. 6. The aforesaid unfair labor practices are unfair labor practices within the meaning of Section 2(6) and (7) of the Act. THE REMEDY Having found that Respondent engaged in and is engaging in unfair labor practices, it will be recommended that it cease and desist therefrom and take certain affirmative action necessary to effectuate the policies of the Act. Having found that Respondent unlawfully withdrew and withheld recognition from the Union as the exclusive representative of its employees in the appropriate unit I recommend that Respondent be ordered to recognize and bargain with the Union upon request . As I have found that Respondent unlawfully refused to execute a contract encompassing the terms and conditions of employment on which it and the Union had mutually reached complete accord, I recommend that the Respondent be ordered to execute such contract upon request by the Union. Because the Respondent , pursuant to the strike settlement agree- ment entered into before the Union 's request for execution of contract , placed into effect the economic terms of their agreement , I shall not require that Respondent give retroactive effect to that agreement . 19 I also recommend that the Respondent post at its place of business the notice attached to this Decision marked "Appendix." Upon the foregoing findings of fact, conclusions of law, and the entire record, and pursuant to Section 10(c) of the Act, I hereby issue the following recommended: ORDER 20 The Respondent, Crimptex , Inc., and its affiliates French-Tex of Puerto Rico, Inc., Hamlet Industries, Inc., and Emtine, Inc., its officers , agents, successors, and assigns, shall: 1. Cease and desist from: (a) Refusing to bargain collectively by withdrawing and withholding recognition of Union de Trabajadores de la Crimptex, Inc., affiliada al Sindicato Puertorriqueno de Trabajadores de la Amalgamated Meat Cutters and Butchers Workmen of North America, AFL-CIO, as the collective-bargaining representative of its employees in the appropriate unit and by refusing to sign the agreement negotiated with the said Union. (b) In any like or related manner interfering with, restraining, or coercing its employees in the exercise of rights of self-organization, to form, join, or assist any labor organization, to bargain collectively through representa- tives of their own choosing, and to engage in concerted activities for the purposes of collective-bargaining or other mutual aid or protection , or to refrain from any or all such activity 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 by Section 8(aX3) of the Act. 2. Take the following affirmative action which is necessary to effectuate the policies of the Act: (a) Recognize and bargain with the above -named Union is See The Kroger Co. (Cleveland Div.), 177 NLRB 769, enfd. sub nom. Rules and Regulations of the National Labor Relations Board, the findings, Alvin Silbaugh v. N.LR. B., 429 F .2d 761 (C.A.D.C., 1970). conclusions , and recommended Order herein shall, as provided in Sec. 19 Cf. Roesch Transportation Company, 157 NLRB 441 ; Ogle Protection 102.48 of the Rules and Regulations , be adopted by the Board and become Service, Inc., 149 NLRB 545, enfd . 375 F.2d 497 (C.A. 6, 1967). its findings , conclusions , and order, and all objections thereto shall be 20 In the event no exceptions are filed as provided by Sec. 102.46 of the deemed waived for all purposes. CRIMPTEX, INC. 859 as the exclusive representative of its employees in the appropriate unit ' and, upon request , execute with the above-named Union the collective-bargaining agreement negotiated by them and concluded on March 23, 1973. (b) Post at its place of business in San German, Puerto Rico, copies of the attached notice marked "Appendix." 21 Copies of said notice, in English and Spanish to be furnished by the Regional Director for Region 24, after being signed by an authorized representative of Respon- dent, shall be posted by Respondent immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter , in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondent to insure that said notices are not altered , defaced, or covered by any other material. (c) Notify the Regional Director for Region 24, in writing, within 20 days from the date of this Order, what steps the Respondent has taken to comply herewith. 21 In the event that the Board 's Order is enforced by a Judgment of a United States Court of Appeals , the words in the notice reading "Posted by Order of the National Labor Relations Board" shall be changed to read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government After a trial at which all sides had the chance to give evidence , it has been decided that we, Crimptex, Inc., and its affiliates French-Tex of Puerto Rico, Inc., Hamlet Industries, Inc., and Emtine , Inc., have violated the National Labor Relations Act and we have been ordered to post this notice. WE WILL, upon request , recognize and bargain with Union de Trabajadores de la Crimptex, Inc., affiliada al Sindicato Puertorriqueno de Trabajadores de la Amalgamated Meat Cutters and Butchers Workmen of North America, AFL-CIO, as the exclusive bargaining representative of all employees in the unit consisting of: All production and maintenance employees employed by us at our plant located at San German, Puerto Rico , including mechanics and chauffeurs; but excluding executive employees, professional and administrative employees, office clerical employees, foremen, guards and supervi- sors as defined in the Act, with respect to rates of pay, wages, hours of employ- ment and other terms and conditions of employment. WE WILL, upon request, execute with the above- named Union, the collective-bargaining agreement negotiated by us and concluded on March 23, 1973. WE WILL NOT refuse to bargain collectively with your bargaining representative by withdrawing and with- holding recognition or by refusing to execute an agreed upon contract, or in any like or related manner interfere with, restrain, or coerce our employees in the exercise of their rights to self-organization, and to bargain collectively through representatives of their own choosing. CRIMPTEX, INC., AND ITS AFFILIATES FRENCH-TEX OF PUERTO RICO, INC., HAMLET INDUSTRIES, INC., AND EMTINE, 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 concerning this notice or compliance with its provisions may be directed to the Board's Office, Pan Am Building - 7th Floor, 255 Ponce de Leon Avenue, Hato Rey, Puerto Rico 00919, Telephone 622-0247. 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