Lead Opinion
This case comes before the court on petition by the National Labor Relations Board for enforcement of its decision and order in Big Three Industrial & Gas Equipment Co.,
The controverted actions and issues arise from a summer, 1976 union drive among workers at the employer’s Bayport plant in Pasadena, Texas. At this plant, Big Three manufactured oxygen, acetylene and nitrogen employing a workforce divided into two departments: maintenance workers and operations personnel. From the very beginning, union enthusiasm captured the maintenance department.
From others at the Bayport plant came a very different response. A daunting array of statements by Company supervisors alternately threatened union supporters while offering rewards for union opponents. This barrage commenced on June 29 as Supervisor Lindsay told a worker that a union was “a good way for all of us to get fired,” and continued through August 20 when, in reference to the union, Supervisor Richardson told a worker, “You’re going to get fired just as sure as the world goes around . They’re going to run everybody and bring in contract maintenance.” In addition to threatening union supporters, Big Three operatives dangled rewards before potential union opponents. On several occasions, supervisors indicated to employee Judd that his opposition to the union was well known and thoroughly appreciated. Workers in the operations department were apparently told that they would receive a 40-cent per hour wage increase in exchange for opposing the union.
Not surprisingly, the impetus behind the union drive began to fade. Although 33 of some 35 employees in the maintenance department eventually signed cards, little union zeal emanated from the operations unit. On August 2, with the union campaign at least temporarily stalled, two of its leaders approached the Company’s General Manager, Sid Peters, to suggest the formation of a Company union or committee. Peters flatly rejected this proposal. Efforts to unionize were resumed but with less force than before and with few or no signatures added after August 2.
This diminution of unionist energies, however, did not engender a corresponding reduction in the strident opposition by the Company. On August 9, Supervisor Richardson told union leaders Hurt and Robb they would never get anywhere in the Company because of their activities, and he suggested they find jobs elsewhere. Richardson also disclosed the operation of an anti-union spy, Jim Bowlin, who it was later reported, had been promised a supervisory position in exchange for information about union supporters. On August 17, Richardson told an employee that Bowlin had given the supervisors the names of all employees who signed union cards.
On that same day, amid this continuing background of subtle coercion and outright threats, three employees working overtime ignored a Company directive that they eat dinner on the premises and not leave the plant without punching out or notifying a supervisor. Two of the workers, William Fairless and John Coryell, had signed union
While measures against union supporters pervade this case, they do not comprise the full story. Harm to the Company occurred as well, when, in July, lumber was jammed into a water pump causing damages of $1,200 to $1,300. Another act of apparent sabotage occurred in August as a boiler was discovered with its internal parts ripped out. This necessitated further repairs costing from $2,000 to $3,000. Then, on August 19 and 20 a series of threats were leveled against the Company and several of its supervisors.
The worst of it fell on Supervisor Richardson whose life was threatened by an anonymous telephone caller on the morning of August 19. Additionally, three shots were fired at his house, and sugar was placed in the gas tanks of his automobiles. Threatening phone calls were also made to the homes of other supervisory personnel and received by their wives causing great tension and anxiety. Further intensifying this wave of fear were several telephone bomb threats made to the plant on the evening of August 19 and on the next morning. As a result, the Company permitted the maintenance workforce to leave for the day on August 20. The operations workers, however, elected to continue working in order to prevent the inordinate expense and delay that any halt in production would have occasioned. Some investigation was made of these incidents by law enforcement officials and by the Company itself. However, no conclusive .identifications of the actual wrongdoers resulted.
At this meeting, the plant manager recommended that the maintenance department be replaced by a return to contract maintenance, the means utilized until 1975. On the next day, August 25, Company officials adopted this proposal without attempting to implement alternatives. Later that evening, the Company announced that the maintenance work would be subcontracted and that all thirty-four workers in the maintenance department would be discharged.
From these and similar developments, the Board found that the Company perpetrated unfair labor practices during the period from the launching of the union drive through the mass discharge of the maintenance workforce. The assorted threats, interrogations, promises of benefits and creation of an impression of surveillance constituted violations of § 8(a)(1). The suspension of workers Fairless and Coryell was held to be anti-union discrimination within the proscription of § 8(a)(3). Finally, the mass discharge of all maintenance workers, which the Board found to be motivated by anti-union animus, was found to be a further violation of § 8(a)(3). After separately examining each alleged violation, we find the Board’s determination to be supported by substantial evidence and consistent with the applicable law. We therefore enforce its decision and order.
Section 8(a)(1): Threats, Promises and Supervisory Status
Section 8(a)(1) of the National Labor Relations Act prohibits employers from interfering with, restraining, or coercing employees in the exercise of the rights to
We begin our assessment of the scope of Big Three’s imputed liability by acknowledging the manifest supervisory status of Lindsay, Osborn, Richardson, and the others. These men were held to be supervisors by the Board and we owe deference to this resolution of a fact question and a matter of practical application by the Board to the infinite gradations of authority within a particular industry. NLRB v. Swift & Go.,
However, the fact that perpetrators of anti-union interference are supervisors for Section 2(11) purposes may not conclusively establish an employer’s liability. The definition contained in § 2(11) does not, by its terms, delineate parameters of managerial liability.
If the words or deeds of the supervisory employees, taken in their setting, were reasonably likely to have restrained the employees’ choice and if the employer may fairly be said to have been responsible for them, they are a proper basis for the conclusion that the employer did interfere.
Thus, even if perpetrators of anti-union conduct are § 2(11) supervisors, the specific
Accordingly, we find in the present case that because the guilty actors are supervisors, Big Three is presumptively liable for their words and deeds. To dispel this presumption, various means are available. For example, a company’s sufficient repudiation of supervisory misconduct may absolve it of liability for unfair labor practices. E. g., Imco Container Co. v. NLRB,
A recent case forgiving an employer for interference by low ranking supervisors is our decision in Federal-Mogul Corp. v. NLRB,
. these statements were made by low-echelon foremen and supervisors who were friends of the employees and knew them on a first-name basis, the statements were made at the work stations or during work breaks in friendly conversations, and that the statements were isolated and innocuous and were not threats or promises of the Company.
Id. at 1257. See also NLRB v. M&W Marine Ways, Inc.,
The coercion by Big Three supervisors was not isolated. We do not face a single conversation such as that immunized in Dierks Forests, Inc. v. NLRB,
Further, there is no showing that these inhibitive exchanges transpired in casual settings that obviated the usual work place relationships. Respondent has not asserted that anti-union remarks issued between old friends at a bar, the situation in Dierks Forests, Inc., supra, or that the speaker expressly disclaimed any authorization by the Company as in Schwob Mfg. Co. v. NLRB,
The one criterion weighing against imputed liability is the low Company rank of Lindsay, Richardson and the rest. This alone, however, cannot absolve the employer. In NLRB v. Kaiser Agr. Chem. Div. of Kaiser A&C Corp.,
We conclude that the words and acts of Big Three’s supervisors intruded unacceptably upon prerogatives safeguarded by the National Labor Relations Act. The employer failed to repudiate its supervisors at the time they interfered with protected rights; the disavowal attempted in this appeal comes too late. Holding that Big Three is responsible for these unfair labor practices, we enforce the appropriate portion of the Board’s order and decision.
Section 8(a)(3): The Suspension of Fair-less and Coryell
Section 8(a)(3) of the Act prohibits discrimination in regard to tenure or other conditions of employment to discourage union membership. American Ship Building Co. v. NLRB,
Both workers admittedly disobeyed a Company directive by leaving the premises without punching their time clocks or notifying a supervisor. We emphasize, though, that an otherwise valid rule may not be discriminatorily applied to penalize those who assert rights protected under the Labor Act. When selective enforcement is propelled by union animus, the strictures of § 8(a)(3) are contravened. See e. g., NLRB v. Heck’s, Inc.,
To establish that this disparate treatment was unlawful, it must be shown that the employer’s conduct was inspired by anti-union motivation, which is the primary determinant of § 8(a)(3) violations. NLRB v. Great Dane Trailers,
While the Board did not dispute factual findings by the Administrative Law Judge, it reached a contrary result through a different legal analysis of the suspensions. Accepting that Superintendent Borey was unaware of Judd’s rule-breaking, the Board focused on the action by a Company operative who did know that all three workers had broken the Company rule. Supervisor Richardson had observed Fairless, Coryell and Judd leaving the plant without punching out. Yet Richardson reported only the two union supporters for disciplinary action. This intentional disparate treatment was held by the Board to constitute an unfair labor practice.
In assessing conflicts between the Administrative Law Judge and the Board as to conclusions rather than specific factual findings, we must defer to the Board if their determination is supported by substantial evidence. NLRB v. W.R. Grace & Co., Const. Products,
We find substantial evidence that the Company violated § 8(a)(3) when Richardson, its supervisor, insured that only union adherents would be punished for their rule-breaking. The Board’s order and remedy for the unlawful suspension of Fairless and Coryell is enforced.
Section 8(a)(3): The Discharge of Every Maintenance Worker
The most serious violation of the Act found by the Board was the allegedly discriminatory discharge of all thirty-four workers in the maintenance department. The Company defended this termination as a necessary response to a rash of problems erupting in the maintenance unit during July and August. The Board rejected the Company’s asserted justification as a deception painted over actions more accurately characterized as the retaliatory firing of union supporters. While we find some truth in the claims of both parties, considerations of policy and law compel affirmance of the Board.-
This court has recently decided a case in which the jobs of an entire workforce were weighed against a myriad of destructive acts directed at an employer. In Johns-Manville Products Corp. v. NLRB,
Our starting point is the recognition that Big Three’s purported justification for the allegedly discriminatory decision to subcontract differs qualitatively from the usual business explanations proffered in such cases. Here, the unit replacement is not an asserted consequence of changed business conditions, subcontracting economics or other forces of universal application to each worker. E. g., NLRB v. Gopher Aviation, Inc.,
A necessary predicate to the Johns-Man-ville holding was the determination that, as a matter of law, an in-plant strike had occurred. Because the personnel were deemed strikers, the discharge and permanent replacement of the entire workforce was held to be sanctioned under NLRB v. MacKay Radio & Telegraph Co.,
A second crucial feature of Johns-Man-ville is the complete absence of anti-union motivation in that case. Anti-union purpose is the principle determinant of § 8(a)(3) violations. NLRB v. Great Dane Trailers,
However, even though we endorse the Board’s finding of anti-union animus, we do not entirely discount the Company’s assertions that honest business purposes contributed to its decision to subcontract. The Board did not specifically discredit the words of company officials who attested to the legitimacy of their business justification. Furthermore, we do not doubt that a company with a trouble-ridden workforce would want to eliminate further inconvenience and expense by eliminating the workforce. Cf. NLRB v. R. C. Mahon,
Accepting the Board’s finding of anti-union motivation, and yet assuming the existence of some legitimate business purpose, we are found with a decision activated by two goals: one legitimate, and one that we must condemn. In this circuit, the threshold for illegality is crossed if the force of invidious purpose is “reasonably equal” to the lawful motive prompting conduct. Cramco, Inc. v. NLRB,
In addition to the severity of misconduct, and the purpose behind resulting discharges, a third factor compellingly distends this case from the reach of Johns-Manvffle. The employer in that case exhausted various alternatives before resorting to the unusual and severe solution of unit-wide job termination. In Johns-Manvffle, the employer endured weeks of destruction, gradually accelerating its responses to the spiralling destruction. The Company twice consulted with union leaders asking their help in com-batting the tide of disruption. When that failed, brief lay-offs were effected in the hope of deterring future sabotage. Next, the Company tried to operate with temporary replacements of its trouble-ridden workforce. None of these measures, however, impeded the flow, of the vandalism. Then, after weeks of harm created unacceptable job place tensions, and monthly losses to the Company averaging $300,000, the employees’ jobs were terminated. This exhaustion of alternatives contrasts profoundly with the action of the Big Three employer. Here, an employer faced with much less onerous mischief, reacted almost reflexively and .without considering the jobs and livelihood of its workers. Just five days after the series of threatening phone calls, the Company responded to its problem with the solution most injurious to its employees and their rights under the Labor Act. So swift and harsh a reaction is not acceptable. It tainted the employer’s intentions; further, it cast honest workers into unemployment along with the few miscreants even though such an unfairness might have been avoided.
We do not say that a company plagued with overwhelming troubles from a work unit must invariably endure industrial turmoil until any particular level of harm has accumulated for a court to permit termination of the workforce. But we do say that in this case the Board’s conclusion that matters had not reached such a pass is supported by substantial evidence. The Draconian measure of unit-wide job information is not to be lightly countenanced. The stake of workers in their company is a substantial one. Their employment represents a means of paying bills and supporting their families. It may also reflect the years of hard work and pride invested to better the company and enhance their own job security. This interest of workers is obliterated by job termination. When an entire unit is discarded, the impact on these men and women, and all who would support unions, is profound. “No conduct more drastic, or more likely to have lingering, ineradicable effects can be imagined.” NLRB v. Townhouse T. V. & Appliances, Inc.,
ENFORCED.
Notes
. The immediate catalyst for the union campaign was the employer’s plan to lay off four people in maintenance due to overstaffing in that department.
. Two telephone bomb threats had been recorded; however, no conclusive identification of the perpetrators resulted. Two witnesses reported the caller to be union advocate, Mike Robb. The assistant maintenance supervisor identified the voice as that of alleged Company spy, Jim Bowlin.
. Section 2(11) of the Act defines a supervisor as:
. . . any individual having the authority, in the interest of the employer, to hire, transfer, . . . assign, reward or discipline other employees, or responsibility to direct them ... or effectively recommend such action, if in connection with the foregoing, the exercise of such authority is not of a merely routine or clerical nature, but requires the use of independent judgment.
29 U.S.C. § 152(11). Courts have repeatedly emphasized that these criteria are enumerated disjunctively so that the possession of any single function will suffice. E. g., NLRB v. Security Guard Service, Inc.,
. The statutory definition of “employer” includes “any person acting as an agent of an employer, directly or indirectly” and does not use the term “supervisor.” 29 U.S.C. § 152(2). Accordingly, the statutory test for imputing liability is based upon principles of agency to be applied expansively in accordance with the underlying policy of the Act. See Furr’s, Inc. v. NLRB,
. See also Jays Foods, Inc. v. NLRB,
Other cases focus on the alleged illegality of supervisory acts while assuming, without explications, that if the conduct is illegal, it is attributable to the employer. NLRB v. Pope Maint. Corp.,
. If anything, conduct by high ranking Big ' Three officers tended to corroborate an impression of Company-wide antipathy to the Union. In the middle of the campaign, the plant manager held a meeting to promise greater responsiveness from management, apparently to minimize any perceived needs for a union. Additionally, the Company’s unfair labor practices at other facilities were familiar to workers at the Bayport plant. E. g., NLRB v. Big Three Industries, Inc.,
. Compare Sturgis Newport Bus. Forms, Inc. v. NLRB,
. Park’s professed union sympathies were characterized as “corporate b-sh-” by one worker. The Company contends that Richardson did not act in its behalf because he reported anti-union measures to union supporters. We observe that these reports, irrespective of Richardson’s loyalties, carried a message of Company retaliation against union adherents, a message inimical to § 8(a)(1). Moreover, Richardson’s role in the discriminatory suspension of two pro-union workers convincingly belies the claim that he served the Union.
. The ALJ did not separately examine the context of each item of supervisory interference to ascertain whether the employer’s authorization had attached. In his written opinion, he equated “agent” with “supervisor.” Big Three Industrial Gas & Equipment Co., case 23-CA-6190 at 4-5 (1977). Lacking some showing that these supervisors did not represent their employer, it was enough that the guilty persons were determined to fall within § 2(11).
. See also NLRB v. Moore Business Forms, Inc.,
. MacKay held that economic strikers — workers engaged in protected activity and free from any wrongdoing — could be replaced so that an employer could continue to run his business. In a related fashion, Johns-Manville authorized the replacement of workers, including those innocent of wrongdoing, where no realistic alternative would permit company operations to continue. Thus, the “in-plant strike” characterization, as used in Johns-Manville, evidently connotes a level of misconduct so outrageous as to significantly impair continued operations by the employer. Because the misconduct in that case was continuing without an end in sight, Johns-Manville can be distinguished from the cases cited by Judge Wisdom involving employer sanctions after the fact of specific items of employee misconduct. Clearly, an employer punishing past wrongs must separate the guilty from the innocent. Arguably an employer faced with an unstoppable flood of misconduct may be unable to make a differentiation. One Student commentator agrees with Judge Wisdom. See Recent Decision, 12 Ga.L. Rev. 131 (1977). A petition for certiorari in the Johns-Manville case has recently been denied. See Oil, Chemical & Atomic Workers v. Johns-Manville Products Corp.,
. At the Johns-Manville facility, the company manufactured organic felt. Breaks in the sheets could be accomplished by striking a water mixture or finished sheet with one’s finger or some utensil. These paper breaks could be “carried out surreptitiously, making it difficult if not impossible to observe the guilty individual or individuals.”
In the present case, the principal damage actually inflicted was to two machines. As the Board points out, the Company’s report on maintenance department misconduct did not include any mention of such damage.
. We further note that there is no reason to believe that the identities of the actual culprits were known to the other workers. The placement of phone calls, the nighttime firing of gunshots and other misdeeds were not committed in the midst of fellow employees during work hours.
. The Board found that § 8(a)(3) was violated notwithstanding the absence of evidence of actual discriminatory intent. Relying upon the rule of per se discrimination enunciated in NLRB v. Great Dane Trailers,
. See also NLRB v. Longhorn Transfer Service, Inc.,
. The Company insists that, at the time of the mass discharge, the union campaign had already failed and become a “dead issue.” This claim was rejected as the ALJ specifically determined that organizational efforts continued up to the time of the decision to subcontract.
. The special concurrence suggests that Jobns-Manville permits some anti-union motivation in a decision to replace a workforce. We note, though, that the Board as well as the majority in that case specifically found that no anti-union animus was present; in fact, the union did not even assert its existence.
Concurrence Opinion
Specially Concurring:
I concur in the result and in all of the court’s opinion save its ascertaining of a “complete absence of anti-union animus” as a factor which distinguishes this from the Johns-Manville situation.
. Johns-Manville Products Corp. v. N. L. R. B.,
