New York State Labor Relations Board v. Frank G. Shattuck Co.

260 A.D. 315, 20 N.Y.S.2d 949, 7 L.R.R.M. (BNA) 731, 1940 N.Y. App. Div. LEXIS 4585
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 28, 1940
StatusPublished
Cited by13 cases

This text of 260 A.D. 315 (New York State Labor Relations Board v. Frank G. Shattuck Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York State Labor Relations Board v. Frank G. Shattuck Co., 260 A.D. 315, 20 N.Y.S.2d 949, 7 L.R.R.M. (BNA) 731, 1940 N.Y. App. Div. LEXIS 4585 (N.Y. Ct. App. 1940).

Opinion

Callahan, J.

The order of the Board required the appellant to cease and desist from interfering with its employees’ joining labor unions, from discriminating against employees who associated themselves with such unions, and from keeping under surveillance the union activities of its employees.

The order of the Board also directed appellant to reinstate four employees with back pay, upon the ground they had been discharged or refused employment because of labor activities.

The Board’s order was based on charges of a labor union. This complaint was issued in March, 1938. Hearings were had before a trial examiner, which lasted many months. After several of the rulings of the trial examiner, excluding evidence, were overruled by the Board, additional evidence was received. In July, 1939, the decision and the order of the Board above referred to were issued.

The principal question to be determined on this appeal is whether there was substantial evidence to support the decision of the Board. Substantial evidence is more than a mere scintilla. It means such relevant evidence as a reasonable mind may accept as adequate to support a conclusion. (See Edison Co. v. Labor Board, 305 U. S. 197, 229.) Under the statute creating the Board, it is free from the restrictions of the technical rules of evidence. This freedom does not, however, justify orders without a basis in substantial evidence of rational probative force. Mere uncorroborated hearsay or rumor does not constitute substantial evidence. (See Edison Co. v. Labor Board, supra.)

It is not the duty of the courts to weigh the evidence, or to reject a choice made by the Board where it sees fit to believe one witness as against another, or where the evidence is conflicting and room [318]*318for the Board’s choice exists. (See Matter of Stork Restaurant, Inc., v. Boland, 282 N. Y. 256.)

The New York State Labor Relations Act leaves an employer free to employ or discharge his employees as he sees fit, for good reason or for poor reason, or for no reason at all — subject only to one limitation, that he may not require an employee, or one seeking employment, as a condition of employment, to join any company union, or to refrain from forming or joining or assisting a labor organization of his own choosing. (Matter of Stork Restaurant, Inc., v. Boland, supra.)

Keeping in mind these cardinal views as controlling, we must determine whether there Was that substantial evidence in the present case which the law requires to support the Board’s order. This case differs in several respects from many others which have come before us. It differs first in that there is no claim in the present case that the employer favored or attempted to form any company union, or that it ever refused to treat with union representatives. No election of a representative for collective bargaining was ever held or sought. The second distinguishing feature is that a great part of the testimony received to support the alleged acts of discrimination by the employer in this case related to occurrences which took place before the State Labor Relations Act went into effect. The effective date of the statute was July 1, 1937. One of the reinstated employees involved herein was discharged before the effective date of the statute.

Another somewhat unusual feature is that one of the reinstated employees admitted that she voluntarily resigned her employment, but claimed that she did so because she was discriminated against by the employer’s harassing tactics, which rendered her extremely nervous. The two remaining reinstated employees were discharged after the law took effect for conduct occurring during the pendency of the statute. The question as to them is whether the proof discloses that union activities was the real reason for the discharge of either of them.

It appears from the evidence in this case that the employer, Frank G. Shattuck Co., conducts a large chain of restaurants and candy stores. It has thirty stores in the metropolitan district, and others in other parts of New York State, and in nearby States. All of these stores are conducted in the name of Schrafft’s.” The employer has some 5,700 employees, and the annual turnover in personnel is said to be about 4,000 employees. A great deal of the employer’s business is done through personal service rendered to customers, who come to purchase food, drink, candy or cakes. [319]*319It needs hardly to be said that the success of such a business depends upon maintaining discipline among the employees, so as to assure a high standard of service to the public.

The proof discloses that at a time several months before the effective date of the statute, when there was no legislative definition of “unfair labor practice,” nor any declared public policy with-respect to the right of unionization or collective bargaining, the employer discharged a group of employees. These employees at the time of their discharge were attempting to organize a union among appellant’s employees. Since their discharge they have been actively employed as organizers by one union or another which has continued the effort to unionize appellant’s employees.

A great deal of the testimony in the record relates to the circumstances concerning the discharge of this group which took place prior to the effective date of the statute. Much of the decision of the Board relates to the discharge of this group.

When testimony concerning acts prior to the effective date of the statute was first offered, the trial examiner of the Board questioned the propriety of receiving it. Counsel for the Board contended that acts occurring before the law went into effect would lead to the inference that facts occurring subsequent to the effective date of the statute were true, and that the prior acts should be admitted in evidence for that purpose. He said that he realized that such acts could not be deemed unfair labor practices, but contended they were competent to show motive. With respect to this contention, the examiner inquired in substance as to what would become of the presumption that everyone acts in accordance with law, if he determined the motive subsequent to the effective date of the statute on the basis of 'acts that took place before the law went into effect.

He further said:

“ You now proceed with testimony that shows that respondent committed certain acts which, if they had been committed after the law went into effect, would be a violation of the law. From which you would reason, as I take it, that inasmuch as there was motive prior to the law went into effect, in engaging in anti-union activities, therefore, we may deduce motive to violate the law after the law became into effect, by reason of similar actions.
“ Now, I don’t believe that this is logical and I don’t think it is fair, because I can conceive of a respondent employer being bitterly anti-union before the law went into effect, and being equally anti-union after the law went into effect but nevertheless realizing that being the law, it had to be followed, it had to be obeyed, it had to be complied with. And, therefore, when you proceed with testi-
[320]

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260 A.D. 315, 20 N.Y.S.2d 949, 7 L.R.R.M. (BNA) 731, 1940 N.Y. App. Div. LEXIS 4585, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-state-labor-relations-board-v-frank-g-shattuck-co-nyappdiv-1940.