National Labor Relations Board v. Cement Transport, Inc.

490 F.2d 1024
Court of Appeals for the Sixth Circuit·Decided March 4, 1974·No. 73-1260·Published·Cited by 53 cases

Opinions

CELEBREZZE, J., delivered the opinion of the Court, in which MILLER, J., joined.

O’SULLIVAN, J., dissented in part.

CELEBREZZE, Circuit Judge.

The National Labor Relations Board petitions for enforcement of its Order of December 11, 1972, reported at 200 NLRB No. 122. In its Order and accompanying Decision, the Board adopted the Administrative Law Judge’s conclusion that Respondent violated section 8(a)(1) and 8(a)(3) of the National Labor Relations Act.1 The Board ruled [1027] that the Company improperly interrogated its employees about their union sympathies before a representative election and illegally discharged Edgar Ray Thompson because of his organizational activities. It ordered Cement Transport to cease and desist from section 8(a)(1) and 8(a)(3) violations, to reinstate Thompson and make him whole, and to post appropriate notices.

Respondent contends that Thompson was an independent contractor, not an employee, that it committed no offense by questioning its drivers about their union leanings, and that Thompson was properly discharged for misconduct apart from his union activities. We turn first to the independent contractor issue.

Cement Transport, Inc., hauls cement for the Kosmos Portland Cement Company. While Cement Transport owns the trailers used in its business, it leases tractors from various individuals. Edgar Ray Thompson was one such lessor. A single owner-driver, Thompson had a standard lease with Respondent which provided that the tractor would be operated under the Company’s direct supervision and control and “shall be devoted exclusively to the [Company’s] business of transportation as much and as often as may be reasonably required by such business.”

In Ace Doran Hauling and Rigging Co. v. N. L. R. B., 462 F.2d 190 (6th Cir. 1972), this Court held that in appropriate cases owner-drivers working for contract carriers could be considered employees rather than independent contractors, so that the Board had jurisdiction over single owner-drivers.2 “The rationale behind our holding is based on both ‘additional controls’ and the control and supervision exercised pursuant to ICC requirements.” 462 F.2d at 194. Ace Doran was reaffirmed by this Court in N. L. R. B. v. Pony Trucking, Inc., 486 F.2d 1039 (6th Cir. 1973).

Cement Transport’s operations are quite similar to those of Ace Doran, entailing both government-required supervision and additional controls. Cement Transport argues that Ace Doran can be distinguished because Doran paid for its drivers’ cargo insurance (Respondent holds its drivers liable for stolen cargo), Doran got a percentage of revenues from its owner-drivers’ backhauls (Respondent allows its owner-drivers to haul for others and keep the profit, but subjects them to recall at its behest), and Doran limited the routes its owner-drivers could take on deliveries (Respondent leaves the choice of roads to its drivers as a matter of practice but has the right to direct the routing.) Dor-an’s discipline procedures may be more strict than Respondent’s but they exist.3

While Respondent cites differences of fact, it has not shown differences of principle. Cement Transport has a sufficient right to control its single owner-drivers to sustain a finding that they are employees rather than independent contractors. It is the right to control, not its exercise, that determines an employee relationship, N. L. R. B. v. A. S. Abell Co., 327 F.2d 1, 4 (4th Cir. 1964); N. L. R. B. v. Steinberg, 182 F.2d 850, 857 (5th Cir. 1950).

Our review of the Board’s decision is limited. If substantial evidence in the record supports the Board’s conclusion, this Court is bound by such findings, even though the Board chose between “two fairly conflicting views” of the employee-independent-contractor distinction. N. L. R. B. v. United Insurance Co., 390 U.S. 254, 260, 88 S.Ct. 988, 19 L.Ed.2d 1083 (1968). We find that the Board has done so in this case and [1028] affirm its conclusion on the basis of Ace Doran4

Second, Respondent objects to the Board’s finding that it violated Section 8(a) (1) of the Act by coercively interrogating its employees before a representative election. The record shows that shortly after the 1971 campaign to organize Respondent’s drivers began, Respondent’s general manager asked three employees on five separate occasions whether they had signed Union cards and whether Edgar Thompson was asking their help in his organizing efforts. He did not caution the employees that no retaliation would flow from their answers. The untruthful responses of two of the employees demonstrated their natural fears about such questioning. We agree that under the circumstances, the general manager’s questioning constituted inherently coercive interference with the employees’ right freely to choose a bargaining representative, under Section 8(a)(1) of the Act. See N. L. R. B. v. Gissell Packing Co., 395 U.S. 575, 85 S.Ct. 1918, 23 L.Ed.2d 547 (1969); Capital Broadcasting Corp. v. N. L. R. B., 479 F.2d 329 (6th Cir. 1973). Substantial evidence in the record considered as a whole supports the Board’s conclusion on this point. N. L. R. B. v. Armstrong Circuit, Inc., 462 F.2d 355, 357 (6th Cir. 1972).

Third, Respondent argues that the Board erred in holding that the Company fired Thompson because of his union activities.

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National Labor Relations Board v. Cement Transport, Inc., 490 F.2d 1024 (6th Cir. 1974).

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