National Labor Relations Board v. Transamerican Freight Lines, Inc.

275 F.2d 311, 45 L.R.R.M. (BNA) 2864, 1960 U.S. App. LEXIS 5229
CourtCourt of Appeals for the Seventh Circuit
DecidedMarch 3, 1960
Docket12740
StatusPublished
Cited by7 cases

This text of 275 F.2d 311 (National Labor Relations Board v. Transamerican Freight Lines, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Labor Relations Board v. Transamerican Freight Lines, Inc., 275 F.2d 311, 45 L.R.R.M. (BNA) 2864, 1960 U.S. App. LEXIS 5229 (7th Cir. 1960).

Opinion

ENOCH, Circuit Judge.

Pursuant to Section 10(e) of the National Labor Relations Act, as amended, 29 U.S.C.A. § 151 et seq., the National Labor Relations Board here seeks enforcement of its Order of January 21, 1959, against Transamerican Freight Lines, hereinafter called “Transamerican”.

With one exception (discussed below) the Board adopted the findings of fact, conclusions of law and recommendations, of the Trial Examiner’s Intermediate Report and Recommended Order.

Transamerican was charged with (1) refusal to bargain collectively with Automotive Mechanics Lodge No. 510, International Association of Machinists, AFL-CIO, hereinafter called the “Union”; (2) discriminatory discharge of one employee and transfer of another employee for union activity; and (3) interrogation of employees respecting union activity.

Transamerican is a common carrier of interstate and local freight by truck. Its terminal and garage at Milwaukee, Wisconsin, are in the charge of District Manager Jerome L. Cleaveland. We are concerned only with the garage employees who handle maintenance of operating equipment.

The Trial Examiner found that Transameriean had increased the garage personnel in the Milwaukee garage from two employees to four, in 1956. Garage personnel increased country-wide in a program of renovation to conform to Interstate Commerce Commission directives. It was anticipated that $6 million in new equipment would be acquired (as it was, in fact) making future economies in maintenance possible, but in April, 1957, garage staffs in the entire, system had risen from 121 in January, 1956, to a high of 140. They were cut back to 123 by April, 1958.

Frank Matteoni testified that when hired, late in 1956, he stated on his employment form that he held a withdrawal card from the Union, and that District Manager Cleaveland then told him the garage was not “union” and that Cleave- *313 land would like to keep it that way. The drivers and dock men were covered by contracts with a teamsters’ union.

The Trial Examiner found that about 3:00 or 3:30 P.M., May 21, 1957, District Manager Cleaveland received a letter from Union Representative Julius Drozewski in which Drozewski requested a conference to discuss a collective bargaining agreement, stating that a majority of the garage mechanics had authorized the Union to represent them.

About an hour later, Cleaveland discharged Matteoni, with the explanation that Cleaveland had orders to cut expenses. The Trial Examiner found that although reduction in force was being considered, Cleaveland had not, at that time, been instructed by his superiors to reduce his force in the Milwaukee garage. Evidence was adduced to show that decreasing profits dictated attempts to cut expenditures, that other garages of Transamerican operated with less help, that Cleaveland’s action was economically motivated, and that Matteoni was the junior man in the garage.

From the coincidence of the time element and the fact that only Matteoni’s union affiliation was then known to Cleaveland, the Trial Examiner inferred that the discharge was improperly motivated by Matteoni’s union activity.

On May 24, 1957, Union Representative Drozewski called on Cleaveland and proffered signed membership cards of Matteoni, Melvin Olson, and James Getchell, which Cleaveland did not inspect. The Trial Examiner concluded that Cleaveland was not acting in good faith in declining to bargain when there was no doubt of majority representation. Transamerican argues that there were bona fide questions about the appropriate bargaining unit: as to whether it could properly include Frank Gage (who was subsequently found by the Trial Examiner to be a supervisor and not part of the unit) and whether the three other employees qualified as “mechanics”.

On May 28th, Cleaveland transferred Getchell from the garage to the dock, assertedly to reduce both garage expense (by reducing staff) and dock expense (by cutting dock overtime.) Getchell was then junior man in the garage, but, as to Transamerican as a whole, he was senior to Olson, having previously worked on the dock.

Olson testified that Garage Supervisor Gage said he wished Olson had discussed joining the Union with Gage first, and that Cleaveland told Olson he could still back out of the Union. Getchell testified that Gage told him he would not have been transferred had he first talked to Gage.

C. J. Williams, associated with an employers’ organization which contracts with the Union, testified that in a telephone conversation, Cleaveland had said he could not sign a contract with the Union because it did not represent a majority of the employees in the garage, that he had had other reasons for discharging Matteoni and transferring Getchell, mentioning dock overtime and need to cut expense, and that “he felt this was the best way out because then there would be no labor problem.”

As with much of the evidence on which the Trial Examiner relied, this statement was susceptible of two inferences. Transamerican argues that the “labor problem” was one of excessive expense for personnel in the garage and excessive overtime expense on the dock. The Trial Examiner concluded that the “labor problem” referred to the majority representation by the Union of an appropriate bargaining unit which Cleaveland had thus dissipated. The Trial Examiner considered it of no significance that economic reasons might have justified a reduction in force because he found that the changes made were not, in fact, economically motivated.

The Board considering exceptions filed to the Intermediate Report and Recommended Order agreed with the Trial Examiner that Transamerican had discriminated in regard to tenure and conditions of employment; discouraged membership in the Union; failed and refused to bargain collectively with the Union; interfered with, restrained, and coerced *314 employees in the exercise of rights guaranteed. by the Act.

With respect to the coercive effect of a question on union affiliation in the employment form blank, the Board did not adopt the Trial Examiner’s theory that the interrogatory constituted a per se violation, but'found that in the context of the unfair labor practices committed, the interrogatory had a coercive effect. Transamerican asserts that the last use of the interrogatory was in November 1956, and that the six-month limitation period of Section 10(b) of the Act precludes its designation as an unfair labor practice in the charge here which was filed July 3, 1957. As the Board based its finding, not on the original query, but on its relation to the subsequent use which was made of the information within the six-month period, we do not believe that designation of the interrogatory in this manner was precluded.

Transamerican was ordered, inter alia, to take affirmative action to offer Matteoni and Getchell full reinstatement; to make them whole for loss of pay; to bargain collectively with the Union as the representative of the employees in the appropriate unit.

Transamerican asserts that the findings of unlawful discrimination and unlawful refusal to bargain are not supported by substantial evidence.

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275 F.2d 311, 45 L.R.R.M. (BNA) 2864, 1960 U.S. App. LEXIS 5229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-transamerican-freight-lines-inc-ca7-1960.