Dakota Sand & Gravel Co.Download PDFNational Labor Relations Board - Board DecisionsJun 25, 1974211 N.L.R.B. 1026 (N.L.R.B. 1974) Copy Citation 1026 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Dakota Sand & Gravel Co. and Teamsters Local # 123, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Help- ers of America . Case 18-CA-3972-2 June 25, 1974 DECISION AND ORDER BY MEMBERS FANNING, KENNEDY, AND PENELLO On March 18, 1974, Administrative Law Judge Ivar H . Peterson issued the attached Decision in this proceeding . Thereafter , Respondent filed exceptions and a supporting brief, and the General Counsel filed cross -exceptions 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 , cross- exceptions , and briefs , and has decided to affirm the rulings, findings, and conclusions of the Administra- tive Law Judge only to the extent consistent herewith.' We find in agreement with the Administrative Law Judge that Duane Kruckenburg is not a supervisor within the meaning of the Act, and that his interrogation by Plant Manager Richter and Assist- ant Plant Manager Reuer constituted a violation of Section 8(a)(1) of the Act. We further find that Richter's offer to striking employees to arrange a meeting with Respondent's owner (which offer was first communicated to striking employees on the picket line by Reuer), for the purpose of obtaining increased pay and benefits, but only after the strikers' withdrawal from the Union, was an offer of an implied promise of benefit for the withdrawal of these employees from the Union, and as such was a violation of Section 8(a)(1). We additionally find that Respondent's prepara- tion and sponsorship of an employee petition to assist them in withdrawing from the union is a further violation of Section 8(a)(1) of the Act. However , contrary to the conclusions and findings of the Administrative Law Judge, we do not find that Respondent 's granting of an across-the-board wage i The Administrative Law Judge inadvertently found that 20 employees signed the withdrawal petition made available by the Employer , when in fact there are I I signatures. We find in agreement with the Administrative Law Judge that the following unit included in the appendix to his Decision entitled "Notice to Employees" is an appropriate unit for purposes of collective bargaining: All full time and regular part time employees of Dakota Sand & Gravel Company at its ready mix and wash plant operations located on South 12th Street in Bismarck, North Dakota , including ready-nux drivers, increase to all ready-mix drivers during the pendency of the representation petition was a "final payoff" for abandonment of the Union. Respondent Attorney Bucklin offered unrefuted testimony at the hearing that a general company policy had been established for some time to attempt to keep competitive in the payment of wages with rival Atlas, Inc. Additionally, Plant Manager Richter testified as to a business necessity in raising wages to attract and keep qualified workers, even if this meant raising wages of those employees in the unit petitioned for who were previously out on strike. In September laborers were given a general increase of 25 cents per hour when it became apparent after a conversation with the state unemployment office that Dakota' s wages were too low and that needed workers were seeking employ- ment with competitors. On October 1 the truckdri- vers, including the strikers, were granted an increase of 50 cents per hour. Unrefuted testimony was offered that this wage was competitive but no more than wages paid employees of Atlas, Inc. As the violations of Section 8(a)(1) which we find in agreement with the Administrative Law Judge are not, in our view, sufficiently pervasive to undermine the union 's majority status and impede the election process within the meaning of Gissel Packing Co.,2 we shall not issue a bargaining order in this case.3 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 as modified below: 1. Substitute the following paragraph 1(b) for present paragraph 1(b); and insert the following paragraph 1(c), renumbering present paragraph 1(c) as (d). "(b) Offering implied promises of benefit in an attempt to seek employee withdrawal from the Union. "(c) Assisting employees to withdraw from the Union by the preparation or circulation of a petition." 2. Delete paragraph 2(a) and renumber the remaining paragraphs accordingly. sand and gravel drivers, loader operator and wash plant operator, excluding office clerical employees , construction crew employees, guards and supervisors as defined in the Act. 2 395 U.S. 575 ( 1969). 3 Member Fanning would find the October wage raise an additional violation of Sec . 8(axl), as did the Administrative Law Judge, and in view of the Respondent's interrogation, implied promise of benefit for withdraw- al from the Union, and assistance to employees by making a withdrawal petition available, would affirm the recommended Gissef bargaining order. 211 NLRB No. 147 DAKOTA SAND & GRAVEL CO. 3. Substitute the attached notice for that of the Administrative Law Judge. APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT discourage membership in or activities on behalf of Teamsters Local # 123, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Help- ers of America by questioning our employees about their union membership, activities, or sympathies, or those of their fellow employees. WE WILL NOT offer implied promises of benefit to employees in an attempt to seek their with- drawal from Teamsters Local # 123, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America. WE WILL NOT assist our employees to withdraw from Teamsters Local # 123, affiliated with International Brotherhood of Teamsters, Chauf- feurs, Warehousemen and Helpers of America by preparing or circulating a petition to that effect. WE WILL NOT in any like or related manner interfere with, restrain, or coerce employees in the exercise of their rights guaranteed by Section 7 of the Act. DAKOTA SAND & GRAVEL CO. (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 compli- ance with its provisions may be directed to the Board's Office, 316 Federal Building, 110 South Fourth Street, Minneapolis, Minnesota 55401, Tele- phone 612-725-2611. DECISION STATEMENT OF THE CASE IVAR H. PETERSON, Administrative Law Judge: I heard 1027 this case in Bismarck, North Dakota, on January 22 and 23, 1974, upon the complaint issued by the Regional Director for Region 18, on December 5, 1973, based upon charges filed on September 6, 1973, by Teamsters Local # 123, affiliated with International Brotherhood of Team- sters, Chauffeurs, Warehousemen and Helpers of America, herein called the Union. Briefly stated, the complaint alleged that Dakota Ready Mix (Dakota Sand & Gravel Co.) violated Section 8(a)(1) and (5) of the Act. In its answer, the Respondent admitted certain jurisdictional allegations of the complaint and that Larry Richter was a supervisor.' In effect, the Respondent denied the remain- ing allegations of the complaint. In substance, the issues raised by the complaint are (a) whether the Respondent unlawfully questioned an employee, Duane Kruckenburg, about his activities on behalf of the Union; (b) whether Richter and Reuer impliedly promised employees in- creased benefits if they would resign from the Union and return to work; (c) whether Reuer caused a petition to be formulated and circulated among the employees which provided for their withdrawal of membership in the Union; (d) whether on or about October 1 it granted a wage increase to its employees during a period that a question concerning representation was pending in order to discour- age activities on behalf of the Union; (e) whether a unit of "all full-time and regular part-time employees of the Respondent at its ready-mix and wash plant operations ... in Bismarck, North Dakota, including ready-mix drivers, sand and gravel drivers, loader operator and wash plant operator, excluding office clerical employees, con- struction crew employees, guards and supervisors as defined in the Act, constitute an appropriate unit for purposes of collective bargaining within the meaning of Section 9(b) of the Act"; and (f) whether the Respondent should be required to recognize and bargain with the Union, which represented a majority of the Respondent's employees in the foregoing unit at all times after June 25 until on or about August 28 or 29, because its unfair labor practices destroyed the opportunity for a free and fair election. Upon the entire record in the case and from my observation of the witnesses as they testified, and consider- ation of the briefs filed herein, on or about February 13, I make the following: FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The Respondent, a North Dakota corporation, with its principal office and place of business in Bismarck, is engaged in a variety of distinct operations. It is involved in sand and gravel production for sale and for use in its own operations, and the production of ready-mix for sale and for use in its own ready-mix construction, owns a shopping center, and holds controlling interest in Earth Builders, Inc., a highway construction firm. During the construction season, from spring to fall, it employs from 60 to 70 persons in all its operations; in the winter season, it employs between 5 and 15 persons. I find that the 1 At the hearing , the Respondent also stipulated that Timothy Reuer was a supervisor. 1028 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Respondent is an employer engagqd in commerce within the meaning of Section 2(6) and (7) of the Act, and that the Union is a labor organization within the meaning of Section 2(5) of the Act. II. THE ALLEGED UNFAIR LABOR PRACTICES A. Interrogation In the latter part of June , Kruckenburg, a ready-mix truckdriver , following conversations with other employees, went to the Union to obtain information about joining. As a result of this meeting, Kruckenburg began to distribute union authorization cards to his fellow workers . Shortly thereafter, virtually all of Respondent 's ready-mix drivers attended an organizational meeting held at the union hall. On or about July 2, Richter , the manager of Respondent, called Kruckenburg into his office. Reuer, who is manager of the ready-mix plant , was also present . Richter indicated that he had heard that "some of the guys" had been at the union hall on the previous Tuesday and wanted to know how many and whether they had signed up. Kruckenburg replied that all the dump truck , gravel truck , and cement truckdrivers had attended and signed up. In answer to a question as to why they had signed union cards , Krucken- burg said that it was "to try and get better wages and vacation ...: . Both Reuer and Richter admitted that the questioning of Kruckenburg had in fact occurred. The Respondent appears to contend that Kruckenburg, as assistant ready-mix plant manager , was a "supervisor" within the meaning of the Act. On the other hand, counsel for the General Counsel contends that Kruckenburg's testimony "clearly establishes that he possessed none of the customary indicia of supervisory authority. At best the evidence shows that he merely implemented the routine instructions of Ready-Mix Plant Manager Reuer in Reuer's absence . This evidence is entirely inadequate to show that Kruckenburg 's responsibilities in this regard require the exercise of any independent judgment . Further, Respondent 's self-serving statements that, in the absence of Richter and Reuer from the plant , they looked to Kruckenburg to run the operations is clearly specious where, as here , the Respondent admits that "that eventuali- ty has never occurred." B. Alleged Unlawful Promises of Increased Benefits On or about August 20 , the drivers of Respondent went on strike . On August 28, while the strike was still in progress, Reuer spoke with some of the strikers on the picket line, including Richard Roller and Roger Eckroth. Both of the latter credibly testified that during the conversation Reuer stated that he could not see that the Union had done anything for the employees and that they probably could get just as much by meeting directly with the owners of the Respondent , the Wachters . Reuer offered to arrange such a meeting. It should be noted that Reuer's offer to arrange a meeting with the owners was not in response to any urging or request on the part of the strikers. On August 28, while the strike was still in progress, Reuer spoke with a group of strikers on the picket line. Richard Roller and Roger Eckroth were among that group and both testified that during this conversation Reuer said he could not see that the Union had done anything for the employees and that they probably could get just as much by meeting directly with the owners of the Respondent, the Wachters . Reuer offered to arrange a meeting with the Wachters . It should be noted that Reuer's offer to arrange a meeting with the owners was not made at the urging of the strikers. On August 28 and 29 , Richter spoke with some of the strikers . The first conversation occurred in the office at the ready-mix plant shortly after the foregoing conversations that Reuer had had with the strikers . During this conversation , Richter stated that he could arrange a meeting between the strikers and the owners for the purpose of obtaining the increased wages and benefits the employees were seeking. However , he added that the Respondent could do no talking until the employees had withdrawn from the Union. On the morning of August 29, after the employees had abandoned the strike but before they returned to work, Richter met with the employees in the ready-mix plant lunchroom . During this conversation he again stated that a meeting could be arranged with the owners for the purpose of obtaining better wages and benefits . There is no evidence that, before the foregoing conversations between Richter and the employees, the question of withdrawing from the Union had been discussed by the employees . Accordingly, counsel for the General Counsel states that it is "therefore evident that Richter's offer to have Respondent meet and negotiate directly with employees after they had withdrawn from the Union was the sole reason striking employees attempted to withdraw from the Union and ultimately abandoned the strike." On August 29, an antiunion or withdrawal petition was made available to the employees at the office of the ready- mix plant . This petition was on Reuer's desk and the employees read it and signed it as they came into the office to pick up delivery tickets. One employee testified that he was called to the office by Reuer and asked to read the petition . This petition, addressed to the Union, read as follows: Each of us signing below withdraw and resign from the Union. We are giving a copy of this to our employer so that they will know that after today they can talk directly to us about our jobs, and we want to talk to our employer directly. It bore the signatures of 20 employees . There is no dispute that the discussions regarding the petition and the actual signing of it occurred during substantial periods of working time . The petition was prepared by the Respondent's attorney, Leonard Bucklin , who was first contacted about this matter by Reuer. There is no evidence that the petition was prepared at the request of any of the employees, and there is evidence that the employees had never discussed such a petition among themselves and that no employee requested that the Respondent prepare such a petition or any similar document for them to present to the Union. Moreover , while the envelope in which the petition was mailed to the Union bore the return address of Roger DAKOTA SAND & GRAVEL CO. 1029 Eckroth, the latter testified that his address was used at the request of Richter and Reuer, apparently for the reason that the Respondent feared that the petition would be destroyed by Nelson of the Union if he saw the Respondent's address on it. C. The Alleged Unlawful Pay Increase On or about October 1 , the Respondent gave an across- the-board pay increase of 50 cents per hour to the ready- mix drivers which was in addition to an increase of 25 cents per hour given them during the spring of 1973. The record shows that on August 30 the Union filed a petition for certification of representatives with the Regional Office which covered a unit of truckdrivers including pickup truckdrivers . This petition was being processed at the time of the October 1 wage increase and the record shows that counsel for the Respondent was fully aware that a question concerning representation existed . In its answer and testimony the Respondent characterized the October 1 increase as a "normal wage increase " and that it was necessary to grant it in order to make the Respondent's wage scale "competitive." It should be noted that the Respondent did not come forward with any of its books and records to support its contention that this was a normal increase . Counsel for the General Counsel con- tends that this failure "further supports the obvious inference that the 50 -cent per hour increase was the final payoff for the employees ' abandonment of the strike and the Union ." Moreover , counsel for the General Counsel asserts that none of the witnesses for the Respondent could recall "any prior instances when an across-the -board wage increase had been granted in the Fall of the year," and that it is also significant that none of the across-the-board wage increases granted in previous years "ever exceeded 25 cents per hour." D. The Alleged Refusal To Bargain k As set forth above, the complaint alleged that the appropriate unit consisted of all "full-time and regular part-time employees of Respondent at its ready-mix and wash plant operations located . . . in Bismarck, North Dakota, including ready-mix drivers, sand and gravel drivers, loader operator and wash plant operator, excluding office clerical employees, construction crew employees, guards and supervisors as defined in the Act." In its answer, the Respondent asserted that the Union "delayed the raising of any question concerning representation until such time as constituted an attempt to block normal wage increases to the employees" and that if the Respondent had withheld and refused the 1973 wage increase "it would have constituted a penalty to the employees and a violation of the rights of the employees granted under the Act." Furthermore, the Respondent asserted that there had been a long delay in any complaint or processing of unfair labor practice charges and that "in this seasonal construction business, there normally would be a substantial change in identity of the employees by the time any election is held." Finally, the Respondent contends that the Union peti- tioned for an election for a different unit than either "(a) the unit for which the Union previously demanded recognition or (b) the unit sought by the NLRB." The Respondent contends that the appropriate bargaining unit is not the one defined in the complaint nor the one for which the Union demanded recognition, nor the one for which the Union petitioned for an election . The Respon- dent asserts that the appropriate unit is "all full-time and regular part-time employees of Respondent turning time- cards in to, and supervised out of," the Bismarck office, excluding office clerical employees, guards and supervisors as defined in the Act. In his brief, counsel for the General Counsel points out that it is a well-settled principle that the bargaining unit a labor organization seeks to represent need not be the most appropriate unit. He therefore contends that the unit set forth in the complaint "clearly constitutes an appropriate unit." Reuer testified that, as ready-mix plant manager, he directly supervised the 10 ready-mix truckdrivers and the 3 gravel truckdrivers and that he also supervised the individual who operated the loader and that this person also served as the wash plant operator. In addition, he testified that, although the Respondent had other employ- ees, such as heavy equipment operators and the ready-mix construction crews, these employees worked under his supervision only for limited periods in the winter. Moreo- ver, on these limited occasions, the persons who substituted for the drivers sought herein were supervisory personnel, and generally were foremen on the construction crews. The record shows that during the winter months the Respon- dent employed from 5 to 15 men and that at least approximately one-third of these are foremen. During the summer months, which is a peak construction season, it is primarily in cases of illness or absences that a substitute truckdriver is used. Furthermore, Reuer testified that in these instances the person substituted is a laborer who has been designated as a "stand-by truckdriver." Finally, the evidence clearly shows that the ready-mix operation is physically separate and distinct and that none of the other supervisors ever supervised the ready-mix operations. The Respondent presented no evidence to show that the truckdrivers ever operate heavy equipment, work on construction crews, or participate in any other of the Respondent's operations. Richter testified that during the peak operational period the only employees who would actually be performing their jobs on the Respondent's premises were the ready-mix and dump truck drivers and the operator of the loader and wash plant. He further related that there is no overall wage scale in effect, that wages vary from employee to employee, that only some of the employees receive health and life insurance, that some receive paid vacations but that none received paid holidays, and that none received sick leave or pension benefits. There is no timeclock for employees, with the result that all ready-mix plant employees turn in their timecards to the "batch man," whereas all other employees turn in their time directly to the office. In view of these factors, counsel for the General Counsel submits that the unit set forth in the complaint "is a separately supervised, homogeneous group of employees at a separate location who do not perform work in the multitude of other operations engaged in by this Respondent " He argues that the "mere fact that on limited occasions employees from 1030 DECISIONS OF NATIONAL LABOR RELATIONS BOARD other operations perform truck driving work in the ready- mix operation is not sufficient to show that all the employees in the Respondent's other operations share a community of interest with the employees sought herein especially, as here, the substitutes are primarily foremen from the Respondent's construction operation whom the Respondent employs year around." He concludes, there- fore, that the unit set forth in the complaint is "an appropriate unit" and with "a minor and insignificant exception, the unit alleged in the Complaint is the same unit in which the Union sought recognition by its letter of July 2." The Respondent does not dispute that the Union represented a majority of the employees in the appropriate unit . The evidence, both by way of direct testimony and by the authenticated authorization cards introduced into evidence, clearly establishes that at all times between June 25 and August 28 the Union represented a very substantial majority of the employees in this unit. There is nothing in the record to show that the Respondent denies that the Union made a sufficient request for recognition and bargaining when it sent the Respondent the July 2 letter. Indeed, to the contrary, the Respondent through its attorney suggested a meeting to discuss the matter and a meeting was held between the parties on July 10. There is no indication that the Respondent doubted the Union's majority status at that time inasmuch as it refused the Union's offer to examine the authorization cards. I conclude and find that the Respondent attempted to bribe the employees to abandon the Union in exchange for a substantial increase in pay. Moreover, the Respondent questioned an employee in an effort to find out the employees were seeking union representation and, thereaft- er, declined to recognize the majority representative and attempted to get them to abandon their strike in the Union in return for an increase in pay and benefits. Finally, the Respondent assisted the employees in withdrawing from the Union and then, a month later, granted them the largest hourly increase they had ever received. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth above, have a close , intimate , and substantial relationship 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 the Respondent has engaged in unfair labor practices, it will be recommended that it cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. 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. The Respondent , Dakota Sand & Gravel Co., is an employer within the meaning of Section 2(6) and (7) of the Act. 2. Teamsters Local # 123, affiliated with International Brotherhood of Teamsters , Chauffeurs , Warehousemen and Helpers , of America, is a labor organization within the meaning of Section 2(5) of the Act. 3. By questioning employees concerning their union and concerted activities , the Respondent violated Section 8(a)(1) of the Act. 4. By making promises of increased benefits to employ- ees if they would withdraw from the Union , the Respon- dent violated Section 8 (a)(1) of the Act. 5. By granting an across-the-board wage increase on October 1 , 1973, thereby attempting to bribe the employees to abandon the Union , the Respondent violated Section 8(a)(1) of the Act. 6. By refusing to bargain collectively with the Union, which represented a majority of the employees in the appropriate unit found above , the Respondent violated Section 8(a)(5) and (1) 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 ORDER2 Upon the basis of the above findings of fact and conclusions of law, and upon the entire record in the case, it is recommended that the Respondent, Dakota Sand & Gravel Co., Bismarck, North Dakota, its agents, officers, successors , and assigns , shall: 1. Cease and desist from: (a) Discouraging membership in or activities on behalf of Teamsters Local # 123, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, or any other labor organization, by unlawfully questioning any employee concerning his union or protected concerted activities. (b) Offering increases in pay or other benefits to employees in return for their withdrawal from membership or support of the Union. (c) In any other manner interfering with, restraining, or coercing its employees in the exercise of their right to self- organization, to form labor organizations, to join or assist the above-mentioned Union or any other labor organiza- tion, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any and all such activities. 2. Take the following affirmative action which will effectuate the policies of the Act: (a) Upon request, bargain collectively with the above- named union as the exclusive representative of the employees in the unit described above concerning rates of pay, wages, hours of employment, and other conditions of 2 In the event no exceptions are filed as provided by Sec. 102.46 of the ed in Sec. 102.48 of the Rules and Regulations, be adopted by the Board Rules and Regulations of the National Labor Relations Board , the findings , and become its findings , conclusions , and Order , and all objections thereto conclusions , recommendations, and recommended Order herein , as provid - shall be waived for all purposes. DAKOTA SAND & GRAVEL CO. employment and, if an understanding is reached, embody such understanding in a signed agreement. (b) Post at its place of business and plant in Bismarck, North Dakota, copies of the notice attached hereto as an Appendix.3 Copies of said notice, on forms to be provided by the Regional Director for Region 18, shall, after being duly signed by a representative of Respondent, be posted immediately upon receipt thereof, and be maintained for a 3 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 read "Posted Pursuant 1031 period of 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken to insure that said notices are not altered, defaced, or covered by any other material. (c) Notify the Regional Director for Region 18, in writing, within 20 days from the date of this Order, what steps the Respondent has taken to comply herewith. to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." Copy with citationCopy as parenthetical citation