Sinсe 1963 Local 455 of the Retail Clerks Union and the grocery stores of the Kroger Company in southern Texas have agreed to collective bargaining contracts which include a so-called “additional store clause.” Under such clauses
A similar chain of events occurred in Pocatello, Idaho. During 1971 contract negotiations with the Pocatello Multiemployers Bargaining Association, Local 560 of the Retail Clerks Union was able to obtain agreement to an “additional store clause.” A few weeks before the Association and Union agreed to a new contract, Smith’s Management Corporation, an Association member, purchased an independent grocery — Frazier’s Market — and authorized the Association to represent it in bargaining with respect to Frazier’s. Smith’s did sign the agreed-to contract, but only after striking the words “and future” from the “additional store clause” mentioned above and here set out in the margin.
On March 28, 1972 Smith’s opened Mark-It, a new Pocatello store. On July-17 the Union requested recognition in Mark-It on the basis of the “additional store clause” and also proffered cоncededly valid union authorization cards from a majority of the new store’s employees.
In both the Kroger case and the Mаrk-It case, the Board found that the employer was under no obligation to recognize and bargain with the Union and thus did not violate § 8(a)(5).
In two cases decided after Linden Lumber but before the instant cases, the Board held that “additional store clauses” were a legal subject of bargaining. Smith’s Management Corporation
The Board in the Kroger case, and by implication in the Mark-It case, purported to reaffirm Smith and White Front Stores. However, at a minimum the Board must admit that it has altered the holdings of those two cases. In the instant cases the Board not only requires a sufficient presentment of majority support for the union to avoid § 8(a)(2) problems but further requires specific evidence that the employer has “waived” resort to Board election procedures. We • would be inclined to affirm even this sub silentio modification if we were convinced that the Board’s “waiver” argument is sound. However, we think it is not and on that ground reversе the Board’s determination in these two cases.
The Board’s “waiver” argument in couched in terms of contract interpretation. Though we recognize that it is interpretation with an eye to existing
labor policy, a certainly permissible practice, it is interpretation nevertheless. The Board’s argument to the extent it relies on contract interpretation alone, and not enunciation of policy, is entitled to no particular deference.
The answer to the question is that the “additional store clause” can have no purpose other than to waive the employеr’s right to a Board ordered election. If the clause is “interpreted” to permit the employer to petition for a Board election, then the clause means nothing to the union. The union and the employer have under the NLRA a right to seek an election. They do not need a contract clause to grant them that right.
A careful reading of the Board’s opinion in the Kroger case suggests that the true purpose of the ruling was not to interpret the contract but to declare that “additional store clauses” are inconsistent with authorization card policy and, therefore, illegal. Both in its opinion and at oral argument, the Board intimates that authorization cards (and perhaps other non-election recognition procedures) are insufficiently reliable and inherently coercive of the § 7 rights of employees and that any employer agreement in advance to recognize on the basis of such procedures is not
So ordered.
Notes
. The Kroger contract read:
The Union shall be the sole and exclusive bargaining agent for all employees em-. plоyed by the Houston Division of Kroger Food Stores in stores operating in the State of Texas, excluding all persons employed in the meat departments.
. See National Labor Relations Act § 8(a)(5), 29 U.S.C. § 158(a)(5) (1970) which proscribes an employer’s illegal refusal to bargain with a union. Before Bemel Foam Prods. Co.,
.The contract read:
The employer hereby recognizes the Union ... as the sole and exclusive bargaining agent, for all employees of the employer employed in the employer’s present and future retail food stores situated within the area of Pocatello, Idаho and immediate vicinity except: [three listed exceptions].
There is no dispute that the additional stores involved in this suit are covered by these contract clauses.
. Retail Clerks representation of Frazier’s Market employees is not in dispute in this case.
. Houston Div., Kroger Co., 208 N.L.R.B. No. 122 (1974); Smith’s Management Corp. d/b/a Mark-It Foods, 208 N.L.R.B. Nо. 123 (1974). In these opinions the Board conceded the validity of the authorization cards proffered by the two union locals.
A predicate for the Board’s decision which is not challenged by either party is that the additional stores “may constitute a separate appropriate [bargaining] unit”, Melbet Jewelry Co.,
. § 9(c)(1)(B), 29 U.S.C. § 159(c)(1)(B) (1970).
. See Mike Vela, Sr. d/b/a R & M Electric Supply Co., 200 N.L.R.B. No. 59 (1972), applying the Linden Lumber decision.
. In so holding, the Board interpreted one of the more ambiguous old chestnuts in the authorization card field, Snow & Sons, 134 N.L. R.B. 709 (1961), enforced,
.
. Local 870, Retail Clerks,
. 29 U.S.C. § 158(b)(2) (1970).
. This is the principle of Melbet Jewelry Co.,
. See NLRB v. Universal Services, Inc.,
. Houston Div., Kroger Co., 208 N.L.R.B. No. 122 (1974), Joint App. at 39 (Members Fanning & Jenkins, dissenting): “If the majority’s interpretation of these clauses means that the employer can voluntarily recognize the Union or demand an election, then such an interpretation renders these clauses totally meaningless and without effect, for the Unions need no contract authorization to establish their representation status in a Board-ordered election.”
While the Board does not raise the point, it could be argued that these clauses are sаved from complete oblivion by an interpretation which gives the Union a right to require the employer to petition for an election, a right' which the Unions do not have under present authorization card practice founded in Linden Lumber. However, nothing in the record indicates that Linden Lumber was considered by the parties in formulating the contract clauses in issue here and the employers who сertainly would make this contention if it had been contemplated have not suggested the point either before the Board or on appeal. Furthermore, as noted the Board did not rely on this point. We thus do not think the clause can be so interpreted.
. It is a settled rule of contract interpretation that contraсt language should not be interpreted to render the contract promise illusory or meaningless. See Ludwig Honold Mfg. Co. v. Fletcher,
Counsel for the Board at oral argument suggested that the “additional store clause” was really an agreement as to the appropriate bargaining unit. However, it is absolutely clear that the Board and the Board alone has the power under the Act to designate appropriate bargaining units. NLRA § 9(b), 29 U.S.C. § 159(b) (1970). While the Board may defer to arbitration on the issue of accretion to an existing unit, both the Board and the courts have required that any award be consistent with Board bargaining unit policy. See Boire v. International Bhd. of Teamsters,
. In this case neither the Board nor the employer voiced any concern with recognition other than through a Board conducted election. We thus limit our decision to a holding that the “additional store clause” does not permit resort to a Board conducted election.
. For a discussion of the dangers to § 7 rights involved in the use of authorization cards, see Note, Union Authorization Cards: Linden’s Peacemaking Potential, 83 Yale L.J. 1689, 1698-1707 (1974) and authorities cоllected. The most obvious danger is that described by counsel for the Board in response to a question from Judge Robb: with cards, the potential union member hears only one side of the story while in an election he or she will hear two or more sides.
. Linden Lumber Div., Summer & Co. v. NLRB,
. See Local 413, Truck Drivers v. NLRB,
. We further note that the Board’s interpretation process in this case shows insufficient regard for the integrity of collective bargaining agreements, a most basic policy of the national labor law. See § 301 of the NLRA, 29 U.S.C. § 185(a) (1970); S.Rep.No.105, 80th Cong., 1st Sess. 15-18 (1947); cf. Danielson v. Painters Dist. Council No. 20,
