The Wm. H. Block Company v. National Labor Relations Board

367 F.2d 38, 63 L.R.R.M. (BNA) 2024, 1966 U.S. App. LEXIS 5132
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 22, 1966
Docket15438
StatusPublished
Cited by4 cases

This text of 367 F.2d 38 (The Wm. H. Block Company v. National Labor Relations Board) 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
The Wm. H. Block Company v. National Labor Relations Board, 367 F.2d 38, 63 L.R.R.M. (BNA) 2024, 1966 U.S. App. LEXIS 5132 (7th Cir. 1966).

Opinions

ENOCH, Circuit Judge.

The petitioner, Wm. H. Block Company, filed its petition to review and set aside an Order of the National Labor Relations Board, respondent, and the Board filed its Petition to Enforce that Order.

Two complaints were issued charging the petitioner with violations of § 8(a) (1), (3) and (4)1 of the National Labor Relations Act, as amended, in the discharge of two employees, Allen Maxwell and Paul Harlan, because of their union activity and because they gave testimony before the Trial Examiner in a hearing on two prior cases.

The two complaints were consolidated for hearing. The Trial Examiner deter[39]*39mined that neither employee was discharged because of union activity or testimony in the prior hearing but on the contrary had been discharged for cause. He recommended dismissal of the complaints.

On exceptions filed by the General Counsel, the Board found that both employees were discriminatorily discharged and ordered them reinstated and given back pay. The petitioner seeks to review and set aside the Board’s Order and the Board seeks to enforce its Order. The facts are largely undisputed.

The petitioner operates five retail department stores in Indiana. It also has a Service Building at which both these employees worked.

The manager of operations and assistant to the president of the petitioner was Edwin Hinnefeld. He made the decision to discharge the two employees. Until he left the petitioner’s employ in February, 1964, Thomas Kimberlin was personnel director. He reported directly to Mr. Hinnefeld. The manager of the Service Building at the pertinent time was Charles Roller who also reported directly to Mr. Hinnefeld. The two employees were under the supervision of Raleigh Wininger who was general receiving and marketing manager. He reported to Mr. Roller, who succeeded Francis Cunningham as manager of the Service Building in November, 1963.

At the pertinent times the petitioner had distributed to new employees a book entitled “You” which contained a copy of the petitioner’s no-solicitation rule, as follows:

“No solicitations, subscriptions, sale of tickets or posting of placards may be made in the store for any need or project without the knowledge and approval of the Personnel Director.”
“It is a store policy that associates refrain from soliciting contributions at any time for a gift to those in supervisory or executive positions. Associates are requested not to make any such contributions if approached.”

Paul Harlan was employed in the Service Building as a “lister” counting and checking merchandise against orders and putting it on a conveyor line to be marked.

During the latter part of March and April, 1963, the Retail, Wholesale and Department Store Union, AFL-CIO, was trying to organize the Service Building employees. Mr. Harlan signed a union card, attended meetings, and, with another employee, Larry Bolton, solicited other employees by passing out cards during working time. When Mr. Roller advised him of the no-solicitation rule, he signed an acknowledgment of receiving notice of such a rule but continued the solicitation during working time. He and Larry Bolton were both laid off for one week in April, 1963. This lay-off was the subject of an unfair labor practice charge and complaint. Mr. Harlan testified on behalf of the General Counsel at the hearing on that complaint. The Trial Examiner found both men were discriminatorily laid off on the ground that solicitation had been permitted with impunity for many purposes and that the rule against solicitation had been invoked here with the illegal motive of prohibiting only union solicitation. The Board carefully distinguished between the oral rule stated to Mr. Harlan in March, 1963, and the rule in the “You” book quoted above which was not being specifically found invalid.

Later Mr. Harlan received three warning slips for unsatisfactory conduct and performance. One was for leaving his work area within 30 minutes of his relief break, proceeding to the dock area and engaging in conversation with other employees who were working there, stopping off in the restroom there to smoke. Mr. Wininger said that Mr. Harlan not only left his own work but interfered with others who were working. The warning slip said that Mr. Harlan showed no ambition or initiative. Mr. Wininger said Mr. Harlan shuffled along getting back from relief periods appearing not to care if he got there or not.

[40]*40Mr. Harlan said variously that his work took him to the dock and he stopped on the way to smoke and that it was pay day and he went to the dock to pick up his pay.

On the second occasion, Mr. Harlan again left his work, within 45 minutes of his relief break and went to the more distant of the two restrooms in the vicinity to smoke. He testified that he and other employees used both restrooms and he knew of no rule about them.

The third warning was for overstaying his 15-minute relief period by 10 minutes. Mr. Wininger testified that he informed Mr. Harlan about the time allowance and put a warning slip in the record because he felt that Mr. Harlan was “daring” him to do something about it. In connection with Mr. Harlan’s attitude, it is perhaps noteworthy that the Trial Examiner states that Mr. Harlan’s demeanor while testifying convinced him that the warnings were justified.

Subsequently, in September, 1963, Mr. Harlan came into possession of some cigarettes which he testified were damaged and which he acquired at $1 per carton. He tried to sell these to fellow employees at the same price, speaking to some six or seven of them during working hours. One of these he approached was Mr. Harlan’s immediate supervisor who reported the incident to Mr. Roller who in turn passed it on to Mr. Hinnefeld. When Mr. Hinnefeld heard of this incident, he asked Mr. Harlan’s supervisor to investigate and to get some statements. Catherine McCune testified that she gave a statement that Mr. Harlan approached her about buying some cigarettes and indicated that they were “Hot.” Mr. Harlan denied saying that. Mr. Wininger testified that he turned over the statements secured with his recommendation that some action be taken on what he thought was a flagrant violation of the no-solicitation rule. He also testified that he had wanted Mr. Harlan discharged because Mr. Harlan caused unrest and dissatisfaction in the department ; that he felt that Mr. Harlan was pushing him to see how much he would tolerate. A check with the petitioner’s legal counsel resulted in a warning from a representative of the State Excise Tax Division that such sale of cigarettes was illegal, and that petitioner should stop it to avoid potential liability. After this, Mr. Hinnefeld told Mr. Kimberlin to discharge Mr. Harlan. Mr. Hinnefeld testified that Mr. Harlan had been given more consideration than he would have received had he not been identified with the union organization.

Although there were some contradictions in his evidence, Mr. Harlan did testify that he knew that petitioner had a rule prohibiting all solicitation during working hours.

Whatever had been the case in the past, there was a known attempt to enforce the no-solicitation rule at this, time, although there were some clandestine violations by way of “pools” which were hidden from the supervisors. One employee testified that he knew these would have been stopped had they come to the notice of Mr. Roller, Mr. Wininger or Mr. Cunningham.

Mr.

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367 F.2d 38, 63 L.R.R.M. (BNA) 2024, 1966 U.S. App. LEXIS 5132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-wm-h-block-company-v-national-labor-relations-board-ca7-1966.