The National Labor Relations Board (hereinafter the Board) petitions for enforcement of its order requiring respondent
In a representation election conducted by the Board on October 21, 1977, the Union was selected by a majority of certain production workers at Van Gorp as their bargaining representative.. The vote was 51 to 46 with no challenged ballots. Van Gorp made timely objections to the Board over conduct of the election. A Board hearing officer, after conducting a hearing on the objections, recommended on February 3, 1978, that the Board overrule all the objections and certify the Union as bargaining representative for an appropriate unit. Ow March 6,1978, the Board’s regional director issued a decision accepting the recommendatiоns of the hearing officer and rejecting Van Gorp’s exceptions. In May, 1978, the Board, suggesting that Van Gorp had not raised any substantial issues, declined to review this decision.
Van Gorp, however, continued to object to the certification of the Union, and therefore refused to bargain with the Union as representative of its employees. On June 22, 1978, the Union filed a charge of unfair labor practice, and on February 7, 1979, the Board issued the bargaining order now before us. Van Gorp Corporation, 240 N.L.R.B. No. 86 (1979).
Only by refusing to bargain could Van Gorp obtain judicial review of the Board’s decision certifying the Union as the bargaining agent for Van Gorp’s workers.
See LaCrescent Constant Care Center, Inc. v. NLRB,
I.
The standard for determining if an election should be set aside on the basis of a misrepresentation was set forth by the Boаrd in
Hollywood Ceramics Co.,
We believe that an election should be set aside only where there has been a misrepresentation or other similar campaign trickery, which involves a substantial departure from the truth, at a time which prevents the other party or parties from making an effective reply, so that the misrepresentation, whether deliberate or not, may reasonably be expected to have a significant impact on the election.
This standard has been reaffirmed by the Board in
General Knit of California, Inc.,
239 N.L.R.B. No. 101 (1978), and it is the standard applied by this court.
See, e. g., LaCrescent Constant Care Center, Inc. v. NLRB, supra,
The most serious misrepresentation in this case involved a contract between the Union and Emerson Electric Company (hereinafter Emerson), which owned Van Gorp. The contract covered Emerson’s Pittsburgh, Pennsylvania, plant known as the Wiegand plant. There was undisputed testimony before the Board that the Wiegand contract provided a cost of living adjustment (COLA) allowing a maximum of twelve cents pay increase each year for the three-year duration of the contract. However, on its face the wording of the Wiegand contract is confusing and ambiguous. See appendix. A Union official, taking advantage of the difficulty a lay persоn would have in understanding the contract, repeatedly attempted to convince workers that the Wiegand COLA was a maximum of twelve cents per quarter, rather than twelve cents per year.
Union representatives persisted in this misrepresentation in such a way that effective rebuttal would have been nearly impossible. Company officials repeatedly told workers that the Wiegand COLA was limited to a maximum of twelve cents per year. The day before the election at a mandatory meeting of all workers in the prospective bargaining unit, Van Gorp’s vice president for labor relations offered a $500 reward to anyone who could prove false Van Gorp’s assertion that the Wiegand COLA had a twelve cent annual maximum. That night at a voluntary Union meeting for members of the prospective bargaining unit, a Union representative replied that on the basis of the wording of the Wiegand contract itself, he could collect the $500 reward. He gave Union supporters copies of the contract to use in demonstrating to other workers that
The Board contends in this court that no misrepresentation of the Wiegand contract was made by Union officials. But, it is not at all clear that the Board made any such finding in its decision on the refusal to bargain. When Van Gorp objected on the basis of the Wiegand COLA misrepresentation to the certification of the Union, the Board’s hearing officer recommended that the objection be rejected for two reasons: beсause he found no substantial departure from the truth and because he found that the employer had sufficient opportunity to respond to the alleged misrepresentation. The hearing officer’s recommendation was adopted without further comment by the Board in certifying the Union as bargaining representative. In the proceedings involving Van Gorp’s subsequent refusal to bargain, however, the Board reevaluated Van Gorp’s objection concerning this misrepresentation and summarily declared the objection meritless without any hint whether this conclusion was based on а finding that the representation was true, or a finding that Van Gorp had sufficient opportunity to respond, or some other finding, e. g., that the misrepresentation was not important enough to warrant overturning the election. Van Gorp Corporation, supra, 240 N.L.R.B. No. 86 (slip opinion at 5 n.2).
Assuming the Board, indeed, found that the Union official did not misrepresent the Wiegand contract by claiming it allowed twelve cents per quarter COLA, the Board’s finding is not supported by substantial evidence. The record before the Board contained undisputed testimony that in fact the Wiegand contract provided only a twelve cent per year COLA. The Union was a pаrty to the Wiegand contract and in a position to have authoritative knowledge about how much the COLA actually was under that contract. Yet in the subsequent proceedings before the Board, the Union presented no evidence to refute Van Gorp’s position that the COLA was only twelve cents annually.
The only support offered by the Board for a finding of no misrepresentation is that the Wiegand contract on its face is complex and confusing. This is not substantial evidence in a record which contains uncontradicted testimony demonstrating how the Wiegand contract in fact was interpreted. The confusing wording of the Wiegand contract does not support any finding that the Union’s interpretation was correct or that the Union was not in a position to understand the actual meaning of the words. To the contrary, the confusing wording of the Wiegand contract made the Union’s misrepresentations more insidious and more misleading to Van Gorp workers and made it nearly impossible for Van Gorp to respond effectively. As Van Gorp points out, workers would be likely to give special weight to a Union official’s interpretation of the language of a collective bargaining agreement to which the Union is a party, especially when the Union official purports to back up his position with the language of the agreement.
See NLRB v. Millard Metal Service Center, Inc.,
The record in this case also compels the conclusion that misrepresentations relating to cost of living provisions were likely to affect the outcome of the election. Emerson had obtained ownership of Van Gorp in 1976, and at that time had eliminated a
Moreover, the disparity between a maximum COLA of twelve cents per year and twelve cents per quarter would amount to over a dollar an hour in pay by the third year of a contract. In a recent case involving misrepresentations rеlating to a comparable amount of money, we noted that
[t]he representations challenged in this case go to what is perhaps the most crucial issue of any organization effort: whether the company is paying the bargaining unit employees as much as it would if the employees were represented by the union. While we make due allowance for some degree of “puffing” which any election contest engenders, we do not take the same view with respect to factual assertions made by either party to the contest. Promises are oftеn written on the wind, but statements of fact are the stuff upon which men and women make serious value judgments. In the context of an election, rank and file employees must largely depend upon the company and the union to provide the data “on which the arguments pro and con are based. If either side departs substantially from the truth, that side must accept the consequences if the misrepresentation, whether or not intended, could reasonably be expected to affect significantly the outcome of the election.
J.I. Case Co. v. NLRB,
II.
Van Gorp also objected that coercive conduct by Union supporters made it impossible for employees to exercise free choice in the election. In fact, the hearing officer found that four separate incidents of coercion occurred. First, in early August, 1977, shortly after the Union filed a petition for a representation electiоn, Terry Davis, a day shift employee who was apparently a Union supporter, threatened a night shift employee, Dennis Wares, that “there is likely to be some broken windows” in Wares’ car if the night shift did not support the Union. Then, in mid-August, Union supporter Benny Faughan told employee Krestin Spriggs to help the Union’s campaign, “or else.” Third, in mid-September, Faughan told another employee, Vance Light, that if the night shift employees would not support the Union he would start breaking arms and putting screwdrivers through radiators.
The most serious incident occurred early in October, 1977, about two weeks prior to the election. Night shift employee Paul Schumacher, an open Union opponent, first was told by Davis that opposition to the Union would lead to “serious trouble.” A few days later, while Schumacher was coming to work at about five o’clock, he was met at the time clock by Ray Vander Linden, a day shift Union supporter who was clocking out. As they argued, Vander Linden hit or shoved Schumacher and threatened to set fire to Schumacher’s car or house or harm his family. 5 Schumacher reported the incident to his supervisors and left work early that day, upset by the incident.
By examining each incident of coercion independently from the rest, the hearing officer concluded that the threats amounted to no more than “tough talk” which might not have been taken seriously and that there was no specific evidence that any votes were changed. The decisiоn treated the assault as relatively insignificant, in part because Van Gorp did not report the incident to the police or take disciplinary action against VanderLinden or lodge a complaint with the Union or the Board.
The record taken as a whole simply does not support the conclusion that the threats were not taken seriously and the conclusion cannot stand. The record shows that there was an escalating series of threats culminating in an incident of violence. Moreover, proof that particular votes were changed is not requirеd in challenging an election on the basis of coercive behavior. “[Representation elections will be set aside where . . . conduct is shown to have created ‘an atmosphere of fear and reprisal such as to render a free expression of choice impossible.’ ”
NLRB v. Griffith Oldsmobile, Inc.,
If the election were challenged only on the basis of the coercive incidents in this record, this case would present a difficult question.
Compare NLRB v. Urban Telephone Corp.,
Van Gorp urges that we should attach more seriousness to the coercive behavior in this case, because the Union supporters as an, informal in-house organizing committee had at least apparent authority to act for the Union.
See NLRB v. Georgetown Dress Corp.,
III.
We cannot close our eyes to the cumulative effect of the serious last minute misrepresentation by the Union and the coercive conduct of Union supporters. We review the Board’s decision in light of the record as a whole. 29 U.S.C. § 160(e). “[I]t is the totality of the circumstances in any particular case that determines whether a free and fair election was held.”
Sonoco Products Co. v. NLRB,
The hearing officer’s decision approved by the Board in this case has two flaws: it does not adequately address the serious misrepresentation of wage rates by the Union, and it fails to consider the cumulative effect of coercive conduct by Union supporters along with the Union’s misrepresentation. While, of course, the Board must carefully examine each separate alleged impropriety which may tend to influence the election, the goal of this inquiry is to determine whether employees had an opportunity to exercise free and fair choice of bargaining representative.
NLRB v. Savair Manufacturing Co.,
While we emphasize the need to consider the overall conduct of an election campaign, we caution that such an approach may not be used to turn a number of insubstantial objections to an election into a serious challenge.
See NLRB v. Southern Paper Box Co., supra,
As the Board points out, the employer has a “heavy burden” in a case like this where it seeks to set aside a misrepresentation election approved by the Board.
NLRB v. Griffith Oldsmobile, Inc., supra,
This course of conduct during the election campaign must be evaluated in light of the closeness of the outcome.
NLRB v. Skelly Oil Co.,
Accordingly, the Board’s рetition for enforcement is denied.
APPENDIX
The Wiegand contract provided:
ARTICLE 43 — COST OF LIVING:
(a) There will be added to each employee’s hourly earnings a Cost of Living Allowance (hereinafter termed Allowance and meaning the total Cost of Living adjustment payable), in accordance with the following formula:
(b) The Cost of Living Allowance will be determined in accordance with changes in the official Consumer Price Index-U. S. City Average for Urban Wage Earners and Clerical Workers (including single workers) published by the Bureau of Labor Statistics, U. S. Department of Labor (1957-59 equals 100) and hereinafter referred to as the “B.L.S. Consumer Price Index’’.
(с) Adjustments in the Cost of Living Allowance will be made quarterly at the following times:
Based on B.L.S. Effective Date Consumer Price of Adjustment Index
On or after Jan. 1 ..............November
On or after April 1 ..............February
On or after July 1...................May
On or after October 1..............August
In no event will a decline in the B.L.S. Consumer Price Index below 176.7, September, 1974 provide a basis for a reduction in wage rates.
The amount of the Cost of Living Allowance which shall be effective for any quarter as provided in Paragraph (c) of this section shall be determined as follows:
(1) For the four calendar quarters commencing on or after January 1, 1975 quarter, an amount equal to .01c for each full 0.040 that the index upon which the allowance is based exceeds 176.7, but in no event shall the allowance for any such quarter exceed .12.
There is to be a yearly Cost of Living Guarantee of .12/hour. If the Cost of Living increases during the year do not total .12 there shall be a special Cost of Living Supplementary Adjustment to make up the difference. The Supplementary Adjustment will become effective October 31,1975 and will in no way affect whatever Cost of Living adjustment is due on January 1, 1976.
(2) For each of the next four succeeding quarters commencing with January, 1976 * an amount equal to lc for each full 0.040 that the index upon which the Allowance is based exceeds the index for the previous September, but in no event shall the Allowance for any such quarter exceed .12 plus the cumulative total of the Allowance in effect during the October, 1975 quarter.
There is to be a yearly Cost of Living guarantee of .12/hour. If the Cost of Living increase during the year do not total .12 there shall be a special Cost of Living Supplementary Adjustment to make up the difference. The Supplementary Adjustment will become effective October 31, 1976 and will in no way affect whatever Cost of Living adjustment is due January 1, 1977.
There is to be a yearly Cost of Living guarantee of .12/hour. If the Cost of Living increases during the year do not total .12 there shall be a special Cost of Living Supplementary Adjustment to make up the difference. The Supplementary Adjustment will become effective October 31, 1977.
Provided that the sum of any quarterly Allowance plus the cumulative total of the Allowances in effect during any of the four quarters starting with the January, 1977 quarter shall but exceed .36 and provided further that the Allowance in all quarters commencing with the January quarter, 1975 and continuing through the July quarter, 1977 shall be adjusted in conformance with the following:
176.7- 177.0 ........................None
177.1- 177.4 .......................... lc
177.5- 177.8 .......................... 2c
177.9- 178.2 .......................... 3c
178.3- 178.6 .......................... 4c
178.7- 179.0 .......................... 5c
179.1- 179.4 .......................... 6c
179.5- 179.8 .......................... 7c
179.9- 180.2 .......................... 8c
180.3- 180.6 .......................... 9c
180.7- 181.0..........................10c
181.1- 181.4..........................11c
181.5- 181.8..........................12c
181.9- 182.2..........................13c
182.3- 182.6 ..........................14c
182.7- 183.0 ..........................15c
183.1- 183.4 ..........................16c
183.5- 183.8 ..........................17c
183.9- 184.2 ..........................18c
184.3- 184.6 ..........................19c
184.7- 185.0 .......................... 20c
185.1- 185.4 .......................... 21c
185.5- 185.8 .......................... 22c
185.9- 186.2 .......................... 23c
186.3- 186.6 .......................... 24c
186.7- 187.0 .......................... 25c
187.1- 187.4 .......................... 26c
187.5- 187.8 ..........................27c
187.9- 188.2 .......................... 28c
188.3- 188.6 .......................... 29c
188.7- 190.0 .......................... 30c
190.1- 190.4 ..........................31c
190.5- 190.8 ..........................32c
190.9- 191.2 .......................... 33c
191.3- 191.6..........................34c
191.7- 192.0 ..........................35c
192.1- 192.4 ..........................36c
(3) One penny of the Cost of Living payable in each quarter between January, 1975 and October, 1977 — a maximum total of .02 in each year of the contract to a maximum of .06 to be diverted to help pay for Dental Care and the new fringe benefits.
Notes
. One exception is where the Board, even if correct in its findings, has clearly exceeded its statutorily granted powers.
Compare Leedom v. Kyne,
. The Board reconsidered the certification proceedings to clarify the standard under which it evaluated Van Gorp’s objections to the certification of the Union as bargaining representative of its workers. In 1962, the Board set forth its standards for setting aside an election because of misrepresentations by a party in
Hollywood Ceramics Co.,
. Van Gorp also challenges the certification on grounds of improper conduct of the election and improper card solicitation by the Union. Because of our refusal to enforce the Board’s order on other grounds, we do not reach these challenges.
. We do not suggest that the kind of misrepresentation present in this case regarding pay rates will always compel invalidation of a representation election; other factors may compel a different conclusion. For example, there may be evidence of discussions sufficient to enable workers to evaluate the claims about pay rates, or other relevant circumstances.
See, e. g., NLRB v. Allis-Chalmers Co., supra,
. There is some question as to whether any other employees witnessed this incident. Schumacher testified specifically that there were no other employees present. Terry Davis, however, testified that he and other employees had been present when VanderLinden and Schumacher argued at about five o’clock on some day in October, 1977, but that Davis did not see any physical contact.
. Van Gorp advises us that the two foremen left its work force to go into business for themselves during the election campaign.
. Van Gorp inappropriately relies on the decision in
NLRB v. Intertherm Corp.,
—quarter [sic]
