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Bonwit Teller, Inc. v. National Labor Relations Board
197 F.2d 640
2d Cir.
1952
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*1 scope language say indicate than whether .its testimony sufficient it and forfeiture from authorizes seizure which these findings might be made. Perhaps, ex- only “about to be goods when the are further will hearing be neces- sary. modi- ported” although Fourth Circuit subsequent by making somewhat fied it Accordingly, the judgment of the Dis- by agents retroactive designated seizure trict Court will be reversed and the cause by other the time of the initial seizure remanded for further proceedings con- designated in Sec- law not officers sistent with opinion. this language of We conclude that the tion 1. alternative 1 leaves no other us cases hold that than to restricted ex- goods are “about 1 con-

ported”. It to us that Section . seems probable

templates whenever cause war arms or

believe munitions exported in violation about TELLER, BONWIT Inc. v. NATIONAL exists, made should be law seizure LABOR RELATIONS BOARD. necessary support be- investigation 250, No. Docket 22208. course. in due lief should follow Appeals, fly States attempt United Court case, In this Second Circuit. at the Newark airplane abroad was made 29, does 1948. It Airport on December Argued 14, April 1952. any effort record whether appear not Decided 1952. June airplane prior to to seize the was made claimant, Mur- 12, 1949. However January plane was held rell, testified days. Airport for several the Newark and the facts detention of this

The nature airplane surrounding transfer of Airport not clear Teterboro appear that does before us.

the record to Murrell the title transferred LaBeulla "alsoevidence There is January

on finding record, although there is no in the court, that Mur- to the effect fact intention to have abandoned rell had Europe airplane flown exported not about airplane 1949. There January on prior January Murrell 29, 1948, he subsequent to December part. Judge, Swan, dissented at- Chief made some crew and discharged the plane in dispose of the

tempts to

country. of these statements

Regardless exportation of

claimant, possible that it is January airplane imminent question of it is a the trial court determination of for the fact will, therefore, case remand the regard. -in this further transcript prior entire Since us, now before we cannot

proceedings is *2 Leff, City,

Drechsler & New York Horowitz, (David Drechsler Mortimer City, counsel), for Teller, Inc., petitioner-appellant. Bott, Counsel, George General David J. A, Counsel, Findling, Associate General P. Somers, Assistant General Norman Coun- Ratner, sel, Assistant Mozart General G. Beeson, Counsel, and Duane Washington, C., Board, National Labor for D. Relations respondent. -Mullin,

Sheppard, Richter & Balthis and Cal., Richter, Jr., Angeles, Los George R. Dry Ass’n, Goods National Retail curiae. amicus Bloom, City, Schlesinger & New York Intervenors, Retail Clerks Internation- al, F. L. A. SWAN, Judge, and AU- stores at

Before Chief FRANK, union, HAND Circuit choice voting GUSTUS for no or the C.R. A., Judges. or the Amalgamated Clothing Work- America, ers of C. I. O. *3 HAND, Judge. Circuit N. AUGUSTUS proved inconclusive, election with neither the polled votes, R. C. I. A. which Inc., petitioned to re- 446 the Teller, Bonwit has Amalgamated Clothing Workers which of the National re- an order and set aside view votes, ceived 146 nor the Board, Board has 305 and the Relations Labor who voted union, for no obtaining major- its or- of cross-petitioned for enforcement ity of the Board, votes. The therefore, Board the di- der. before The rected that a run-off Interna- election be by Retail Clerks held and the were initiated eliminated the Amalgamated Association, Clothing called (hereinafter AFL tional Workers from the objections with ballot. The second elec- which “Union”), filed the , tion—from which stem charges Teller the of un- Bonwit that to the effect Board the practices fair labor by the held on held election interfered in an —was 15, ber 1949 and repre- resulted in a vote for no bargaining to determine Board by union a majority The employees. 668 to 225. of Bonwit’s sentative viola- charge of filed subsequently period Throughout up Union leading National (1) 8(a) 15, 1949, September tion of Section election of Bonwit 158(a) Act, 29 U.S.C.A. § Relations policy Labor forbidding Teller maintained a all substantially Teller, based by Bonwit (1), by organizers solicitation union in its stores as asserted previously conduct employees’ either time election. with the stituting they interference duty.2 were off Organizers or when rep- with the consolidated charge iwas entered the stores were This who asked to leave proceeding.1 they organ resentation were as soon as detected. by the Union izational drive was conducted controversy for the most is present by distribution of leaflets to drawn inferences with part concerned they entered left the stores and at meet Act to facts application from and headquarters were held at ings which Union undisputed. Bon- substantially which are rented halls the Union for that operates several Teller, Inc., owns wit purpose. dispute While some throughout the in various'cities retail stores successfully the no solicitation rule how States, principal store its United eastern was enforced Bonwit do not consider we in New Fifth Avenue at being located 721 importance fact of since it that is undis employs about City where York puted Bonwit had a no solicitation rule part of 1949cam- early During the people. attempted in effect and to enforce it when unions to rival conducted paigns were ever violations came to the attention of employees at its New organize personnel. supervisory store branch City its store York York, having Plains, Friday, September 9, latter days On six before White 30,, held, On was to approximately the run-off election the em- June both City election ployees held an at the New were store the. requiring Bonwit final order under to its order reviewable Section 1. In addition Act, 160(f). 10(f) from certain and desist cease Teller practices, specified the Board unfair Ordinarily, such a rule would consti of the election results set aside 8(a) (1). a violation of § tute public See Re held at a new election be Corp. directed B., Aviation v. L.N. R. brief, In the future. time some requests we also re the Board has exception department Board. But i action view this retail in the case of t power so, do we have no clear that which allows the stores for selling F. v. N. solicitation on the A. L. L. R. bid floors B. May g., Department 84 L.Ed. S.Ct. L. R. B of the store. See e. Cir., Stores, R. LaSalle Steel 59 N. B. 976. For L. rea exception stated, 1, because the was not sons hereinafter 832 n. order applicable in the case at bar. meeting employees’ meetings, mental that an constituted informed reasonably 5 P. employees, floor at benefit selling main held on the M., voting normal store’s calculated to deter hour before the one-half finding Sep- no the RCIA election The Board made run-off closing time.3 15, 1949, compelled to at- thereby violating tember 8(a) may (1) interfering meeting and assume tend this meeting, election. urged go freedom choice in the store Respondent is immaterial did not they were free to leave although expressly condition granting do so. if wished to increases on RCIA’s losing election. Roy assembled, employees were After the It is purpose, sufficient natural Bonwit’s, de- *4 president of Rudolph, effect, of the announcement to con- urged strongly speech in which livered a employees vince the did not need at Union against the employees to vote a union order to wage obtain increases found Board The coming election. improvements or other in their conditions except for speech, with wrong nothing employment.” Rudolph an- in which paragraph, the last Bonwit’s assertion September 12, a Union swered On which was the Mon- pay increase to a entitled employees day following speech- store-wide es, as follows: the Union’s vice-president, Samuel Meyers, notified register- know, your year you a twice “As ed mail that he opportunity desired an to rec- salary and raises is reviewed address all of at the waiting Raises have been ommended. store “on Wednesday, Now, February. you since 14, 1949, p. m., ber 5:00 or at some time process, addi- review in with our Fall before the date of the run-off election on being recommended. tional raises 15, 1949, September mutually which will put through could raises These put through now to both of request cannot be convenient us. I further then and election, lest be accused you accord me before the same privilege of practice by R.'C.I. labor unfair speaking during working hours pay to a don’t dues A. You have will be so that I assured of the same com- raise at get a Bonwits.” union to plete you your- audience availed No answer to self.” was ever repeated following speech was The Union, by the and received the Board held employees of White morning that Bonwit’s refusal to honor this re- copies speech and of the Plains store quest violation of Section 8(a) (1). There- of both stores. mailed to September day of after, until 15—-the and practices unfair The other found Rudolph informally with met election — by the consisted of statements made departmental meet- groups of employees by employees, two supervisory with them ings discussed and and On Neimark Burchett. one occasion and prevailing in the stores then ditions departmental following speech by Ru- urge them vote continued to dolph, group were having a Barnes, According to the witness Union. and, discussion according meet- Rudolph of the told at one Dercole, Dorothy “Mr. came Neimark increase would ings wages] “the [in us if any questions over asked we had union, after affair with after come * * * And he said if the union was voted with.” over the union was get the immediately we would out increase “ * * * the an- Board found it was voted in get The and if we would not pendency wage in- year, of the nine months or nouncement even a because it Rudolph’s long negotiate in President take that creases a contract depart- and in September Burchett, them.” was head with who already store customers’ entrances to the the store were allowed complete M., shopping. were closed but customers P. 6U department,

the alteration told several em- that all depart- in his ployees department if the Union ment could expect at least one wage in, change was voted Bonwit would have to year, increase each and that his 'recom- system layoffs (which past in the usually mendations were followed. This family been based on need procedure, conditions except in some instances rather seniority) than on and thát its exist- department head, in violation ing policies wage promotion based instructions, failed acquaint em- merit go ployees “would window.” These out the it, was generally known statements the Board found to contain reprisal.

threats of “In Febrauary rep- while the Bonwit Teller contends that resentation proceeding was pending, the supervisors proceeding should be set be whole aside began process the merit cause Board lacked a General Counsel ratings recommendations. part hearing before the Trial According to Treasurer Leonard a large con Examiner. Board overruled this number had been completed or ' tention, reading literal of Sec partially based on a completed when management 153(d), 3(d) tion issued supervisors instructions *5 in the General Counsel which vests ex discontinue processing them. The rea- prosecute complaints. authority clusive to son for this action, testified, Leonard’ the General resignation Before'his Counsel was that ‘we decided that we did not representative at the delegated grant any want increases -at that prosecute authority to the com hearing particular time because of the pending impropriety a plaint. no in such We find labor situation.’ Of ratings and objection that procedure hold and processed up reviews time, that 250 properly overruled. it-was to 300 contained recommendations for wages Some, though all, increases. not that of the Board The conclusion were aware of the Rudolph speeches and the statements of n supervisors stop Thus in order. March April and Burchett in Niemark 1949, group a Depart- of tailors asked benefit promises or threats volved ment Head hap- Burchett what had to have been errone reprisal seems us pened spring wage reviews. Bur- Rudolph, his remarks to ous: As to responded: chett told T I that waiting wage increases effect that pass any could not increases. That than an nothing more n personnel an order from the de- why policy explanation of - partment. Because of the labor sitúa- reviews and wage semi-annual recommen tion that activities, time and union stopped. Trial Examiner dations had on, pass and not so we could increases report that described his intermediate in that time.’ It was to this situation leading up to the policy and the events Rudolph that in referred Rudolph, Bur Niemark and speeches, ber 9 and 10 and in the de- as follows: chett partmental meetings.” (cid:127) that in establishes “The evidence policy Under the Respondent a circumstances think, instituted we 1947 Rudolph supervisors the communications of having rate to his em- ployees went February-March no further than yearly, to indicate twice pay would on the increases follow August-September, character the or- dinary -practice employer making recom- performance, fell promising individual merit short of benefits to the employees as to mendations against if should vote Generally some in- wage increases. Union. In- deed, though to forbid granted, not neces- such creases are communications would (cid:127) everyone, prohibit result seem as a of these all discussions sarily to between em- ployer employee of germane Bur- and recommendations. issues reviews (cid:127) subject chett, Respondent’s of unionization. head of altera- testified, 158(c); department, example, N. L. R. B. tion v. American Tube A.L. Bending Co., Cir., erty-during non-working time even where R. Virginia away B. Electric showing L. R. v. no that solicitation plant & Co., Power 62 S.Ct. from would ineffective. Re be public Aviation, Corp. N.L.R.B., U. S. 89 L.Ed. 1372. This is Likewise, Nie- we think the remarks of so place because of work has been mark ought and Burchett to the place to be the most effective interpreted not in reason to threats for the communication of information and reprisal if voted favor opinion concerning seems ^unionization. the Union. statement Niemark’s Board, however, has allowed retail de to have no' been more than -reasonable partment privilege stores prohibiting argument process bargaining all solicitation within the selling areas of inevitably delay increase the store during both working and non carry did threat not it the hours,6 g., e: In May the Matter of company delay. Bur- would cause such Department Stores 59 N.L.R.B. chett’s utterances think cannot be 981. Bonwit Teller to avail chose itself of meaning. no reason to sinister We have and, privilege having so, done was in suppose preferred, opinion required to abstain cam our classification than on based on merit rather the Union on the paigning same true the seniority, that were and unless premises: which the Union was denied by Burchett could mentioned change access; otherwise, prac if should regarded detrimental possibly advantage event it who was tical It seems to us them. argument involving than an was no more opposed unionization would constitute *6 . reprisal employer. the no threats of right serious interferénce with the of his principle employees organize. This is the question to be decided Appeals Court the for holding that of the Board’s correctness of the 8(a)(1)4 violated Teller consisting Bonwit a court § Seventh Circuit —in by failing grant the Union’s Act Kerner, Lindley, Minton and Judges opportunity reply to an opinion wrote Judge Minton —which conditions, namely, speech under similar that this form of discrimination held on meeting to be held employer was evidence of interference thq premises. company’s Bonwit Teller self-organiza right of its is the Board’s decision con- contends that Co., N.L.R.B. v. American Furnace tion. it 8(c) of the Act because con- trary § Similarly, in F.2d N.L.R.B. 376. employer’s right exercise of the ditions Steamship Corp., Waterman speak extending to his on Supreme 84 L.Ed. opportunity the same to the Union —a ships’ issuance of Court held is in 8(c). not contained dition § passes representatives of one union and However, 8(c) any neither nor issue of § passes such to a refusal to issue rival speech” “employer involved in this free is practice an unfair under union was labor case. former Act. See also In the 8(1) of the May Department Normally, an cannot Matter Stores company supra, page N.L.R.B. 979. prop- union solicitation on' forbid provisions practice practice 4. an unfair under “It shall be expression employer— an if such contains no this reprisal “(1) with, restrain, or force to interfere or co- or threat employees in the exercise of of benefit.” erce rights guaranteed in 7.” section Apparently Bonwit’s no-solicitation rule expressing “(c) views, selling restricted to the ar- was not areas gument, alone, opinion, or the for there that union dissemination thereof, written, organizers por- printed, driven out of whether in form, other premises graphic, when or visual shall not con- tions of the were at- tempting to solicit stitute be evidence of an unfair labor pres- order in its in the Board’s criticized decision as too restrictive broadly Brothers, ent form drawn. has been too 70 N.L.R.B. Con Clark requires gress Teller to and desist employer, Bonwit cease intended the have the “* * * making antiunion right company from: to address his speeches Respondent’s employees property.1 time and sugges is no There Respond- and on the hours tion that if he must right he exercised the upon premises, according, ent’s without representatives accord to union a similar request,, opportunity to opportunity. My apparently reasonable a similar brothers n organi- agree address the to the labor not, need in unless he has ef zation which such are di- fect a I no-solicitation rule.- am unable to above, rected.” As we have indicated relevancy see the rule in in of such discriminatory ap- terpretation violation here was the 8(c). to section plication If of the no-solicitation rule. Reynolds says As Board member well rule, abandon that opinion: were to dissenting required it would then be we do not think legislative history “The attendant opportunity the Union a similar accord enactment 8(c) of Section re- is Ru- each to address the time plete passage with assurances that speech. 'Nothing dolph made an anti-union speech em- guarantee free compels such “an in reason nor Act That ployers disputes. in labor result for a tooth” eye, tooth eye for an encompassed speech freedom of of communication the avenues long as so plant, employees in the address right to open to sides. kept both President, be- Respondent’s did is denied and the order Enforcement Act or yond Nowhere question. remanded to the however, history, does legislative in its accordance proceed in with directions of this a concomitant appear opinion. with this provide a obligation to right Indeed, for unions. forum of debate Judge (dissenting SWAN, Chief speak employer’s right hinging part). available make upon his readiness to opinion as much *7 from so I dissent arguments, which his the means employer’s no- that because holds nullified, views, opinions ef- can be an unfair rule it was solicitation 8(c) emasculates fectively grant union’s practice not to employer applies right of an reply to opportunity to for' an employees.” address conditions. Section speech under similar persuasive amended, find the authorities U.S.C.A. Nor do I Act 8(c) opinion support my privilege brothers’ cited 158(c), grants the They part their decision.2 without against unionization arguing 8(c). section expression prior to except that the of decided enactment any limitation of the order should be contain “no threat of re- I think enforcement must views pro remand further benefit.” It denied without force or prisal or history, ceedings. legislative clear 1372; Report B. v. American N. L. R. Furnace No. 105 S. 1. Senate History Cir., Legislative L. the Labor Man- R. B. Steamship Corp., p. Act, 1947, agement v. Waterman Republic Corp. B., Aviation v. N. L. R. S.Ct. L.Ed.

Case Details

Case Name: Bonwit Teller, Inc. v. National Labor Relations Board
Court Name: Court of Appeals for the Second Circuit
Date Published: Jun 17, 1952
Citation: 197 F.2d 640
Docket Number: 250, Docket 22208
Court Abbreviation: 2d Cir.
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