Petition for Writ of Certiorari — Uniglass Industries v. National Labor Relations Board

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7 if Supreme Court, US.

. FILED

96-47

| JUL 15 1986

JOSEPH F. SPANIOL, JR.

CLERK

No.

In The

Supreme Court of the United States

October Term, 1986

UNIGLASS iNDUSTRIES,

A DIVISION OF

UNITED MERCHANTS AND MANUFACTURERS, INC.,

Petitioner,

vs.

NATIONAL LABOR RELATIONS BOARD,

Respondent.

PETITION FOR A WRIT OF CERTIORARI

To the United States Court of Appeals

For The Second Circuit

David C. Hagaman

Clark, Paul, Hoover & Mallard

600 Sussex Place

148 International Blvd., N.E.

Atlanta, Georgia 30303

(404) 522-7500

Counsel for Petitioner

Pandick Technologies, Inc., 1360 Peachtree St., Atlanta, Georgia 30309 404-874-1620

1.

QUESTIONS PRESENTED

Whether the six-month limitations period of

§ 10(b) of the National Labor Relations Act

bars issuance of a compiaint alleging an illegal

refusal to rehire based upon an antinepotism

policy when the sole foundation for the

complaint is an alleged unfair labor practice that

occurred at the time the antinepotism policy was

implemented more than six months before the

charge was filed?

Whether the Court below was correct in

holding the six-month limitations period of

§ 10(b) of the National Labor Relations Act was

equitably tolled until such time as the Company

communicated to the rehire applicants the

precise reason they were rejected for rehire each

month they reapplied?

li

LIST OF PARTIES

Petitioner’s Rule 28.1 list of parent companies,

subsidiaries, and affiliates appears in the Appendix

submitted as part of this Petition at page A-59.

ill

TABLE OF CONTENTS

Page

CQUBSTIOINS PRESTO «wc ssa cnccecencesn i

Fo igs &. | | ere re re ) ii

ey 8 Gf rrr rr eer 1

PE IE v's a von ds ek suc n ee st ee eas 3

gv euii) Bt, Bena aera trae 3

“{e,¥i. 208 de. Se ere 5

REASONS FOR GRANTING THE WRIT ......... 13

I. The Court of Appeals, erroneously and

in conflict with this Court’s decisions,

decided an important § 10(b) question

of law that significantly affects the

administration of the Act ............. 13

Il. This is an important case concerning

equitable tolling issues this Court

should resolve to promote proper

administration and enforcement of

fF ge Serer r er cee 19

ee | ere errr eee eee 22

iV

Page

Delaware State College v. Ricks, 449 U.S. 250

Lo REE AYpad ills city re elite ne eee 10,18

General Marine Transport Corp. v. NLRB,

619 F.20 180 (2d Cir. 1960) ............ 20

Klemens v. Air Line Pilots Association, Int’l,

736 F260 41 Gm Cer. 1986) ............ 20

Local 1104, Communications Workers v. NLRB,

eo ee Fey Le a.) ee 21

Local Lodge No. 1424, International Association

of Machinists (Bryan Manufacturing Co.)

v. NLRB, 362 U.S. 411 (1960) ..... wees 11

Mang v. Blumenthal, 26 FEP Cases 1353

Pe IE nos 4 ooo eb ek aaa kes 9

Nazareth Regional High School v. NLRB,

San TF .se ers Coe Ge. W977) ..........>- 21

Nilsen v. City of Moss Point, Mississippi,

Gzi F.26 117 (5m Cw. 1900) ............. 20

NLRB y. California School of Professional

Psychology, 583 F.2d 1099

ee he ho eek Wk keane 6 20

NLRB vy. Don Burgess Construction Corp.,

S96 F260 378 Cm Cir. 1979) ............. 19

NLRB v. Local 30, International Longshoremen’s

and Warehousemen’s Union,

oan Fae Gee Ge CH. 1977)... 2. 0 oe 20

United Airlines, Inc. v. Evans,

ee RB Be | eae 16

Vallone v. Local Union No. 705,

International Brotherhood of Teamsters,

(oh & be Be Le ae .) Seren 20

Wright Line, Inc., 251 NLRB 1083 (1980),

enforced, 662 F.2d 899 (ist Cir. 1981),

cert. denied, 455 U.S. 989 (1982) ........ 12

Statutes Cited

eo | 3

ee ae 5

90 U.S.C. § 158@)(1) ...................... 3

oe 3,5,6,12

v1

29 U.S.C. § 158(a)(4)

29 U.S.C. § 160(b)

(inves Sek ewe ees 4,5,7,10,11,13,14

15,16,17,18,19

21,22

No.

In The

Supreme Court of the United States

October Term, 1986

UNIGLASS INDUSTRIES,

A DIVISION OF

UNITED MERCHANTS AND MANUFACTURERS

INC.,

Petitioner,

VS.

NATIONAL LABOR RELATIONS BOARD.

Respondent.

PETITION FOR A WRIT OF CERTIORARI

To the United States Court of Appeals

For The Second Circuit

The Petitioner, Uniglass Industries, respectfully prays

that a writ o: certiorari issue to review the Order of the

United States Court of Appeals for the Second Circuit

rendered April 17, 1986.

OPINIONS BELOW

The Court of Appeals issued its Order in a unreported

opinion, affirming and enforcing an Order of the National

Labor Relations Board. The Board’s Order was issued

—

September 24, 1985, and is reported at 276 NLRB No. 35

(1985). This Order affirmed the decision of the

Administrative Law Judge. The unreported Order of the

Court of Appeals, the Board’s Decision and Order, and the

Administrative Law Judge’s Decision appear in the

Appendix submitted as part of this Petition.

~~

JURISDICTION

The judgment of the Court of Appeals was entered

April 17, 1986. The jurisdiction of this Court is invoked

under 28 U.S.C. § 1254(1).

STATUTES INVOLVED

United States Code, Title 29:

§ 158(a)(1):

It shall be an unfair labor practice for an

employer to interfere with, restrain, or coerce

employees in the exercise of the rights

guaranteed in § 157 of this title... .

§ 158(a)(3):

It shall be an unfair labor practice for an

employer by discrimination in regard to hire or

tenure of employment or any term or condition

of employment to encourage or discourage

membership in any labor organization. .

§ 158(a)(4):

It shall be an unfair labor practice for an

employer to discharge or otherwise discriminate

against an employee because he has filed

charges or given testimony under this

subchapter... .

§ 160(b):

[N]o complaint shall issue based upon any

unfair labor practice occurring more than

six months prior to the filing of the charge with

the Board and a_ service of a copy

thereof upon the person against whom such

charge is made... .

~~

STATEMENT OF THE CASE

I. Nature of the Case and Proceedings Below'

On October 17, 1983, the Union filed an unfair labor

practice charge alleging the Company violated §§ 8(a)(1),

(3) and (4) of the Act; that since January 25, 1982, (a date

almost three months outside of the six-month limitation

period) the Company refused to recall from layoff or

rehire Jeanette Pegram; since March 15, 1982, (a date one

month outside of the limitation period) the Company

refused to recall from layoff or rehire Charles Pegram,

Elaine Honeycutt, and Jesse Levan; and since June 16,

1983, the Company discriminatorily discharged Jeffrey

Smith.2 The charge was later amended by the Union on

December 2, 1983, the same day the Board issued the

Complaint, to allege the refusals to recall or rehire Elaine

Honeycutt and Charles and Jeanette Pegram occurred on

April 20, 1983, (a date exactly one day within the

limitations period in § 10(b) of the Act). The Board

issued a Complaint alleging, inter alia, the Company

discriminatorily refused to rehire Honeycutt and the

' For convenience, the Administrative Law Judge is

hereinafter referred to as the “ALJ”; Petitioner is

hereinafter referred to as the “Company”; Respondent,

National Labor Relations Board, is hereinafter referred to

as the “Board”; and the Amalgamated Clothing and

Textile Workers Union, AFL-CIO, CLC (Charging Party in

proceedings before the Board) is hereinafter referred to as

the “Union”. References to the “Act” are to the National

Labor Relations Act, as amended, 29 U.S.C. § 141, et seq.

2 The allegation oa discrimination against Jesse

Levan was not included in the Complaint, and the finding

that the Company discriminatorily discharged Jeffrey

Smith is not at issue in this Petition.

~~ yo

Pegrams on or about April 20, 1983, and discriminatorily

discharged Jeffrey Smith on June 16, 1983.

The case was tried before Board ALJ Hutton S.

Brandon on April 24, 25, and 26, 1984, and decided by

him on August 3, 1984. The ALJ found the Company had

committed unfair labor practices within the meaning of

§§ 8(a)(1), (3), and (4) by refusing to rehire Elaine

Honeycutt, Charles Pegram, and Jeanette Pegram and by

discharging Jeffrey Smith. The Cornpany filed exceptions

to the ALJ’s decision. On September 24, 1985, the Board

issued its Decision and Order affirming the ALJ’s rulings,

findings, and conclusions and adopted the recommended

Order. The Company petitioned the United States Court

of Appeals for the Second Circuit to set aside the Board’s

Order, and the Board filed a cross-application for

enforcement. On April 17, 1986, the Court of Appeals

denied the Company’s petition for review and enforced the

Board’s Order.

II. Statement of the Facts?

Elaine Honeycutt, Charles Pegram, and Jeanette

Pegram were among a group of approximately 150

employees laid off by the Company in 1982 because of

poor business conditions. After being laid off for more

than six months, they were subsequently terminated

according to Company policy. They immediately

3 Petitioner recites only facts that pertain to the statute

of limitations issues raised in this Petition.

me

submitted new applications, but were not rehired because

the Company had no openings at that time. They updated

their applications :..onthly.

In early 1983 the Company’s business improved, and

the Company was flooded with applications from former

employees and prospective new hires. The Company

received over 1600 applications in 1983, including almost

600 by the end of April. From 271 applications submitted

in January and February of 1983, including 64 applications

from former employees, the Company filled 35 jobs.

Honeycutt, who had an application on file, was not hired

in January or February 1983 because the Company hired

more qualified, former employee applicants into her

former position. Charles Pegram was not hired in January

or February 1983 because he had specifically requested his

old job on second shift, and the only positions filled in his

former job were by rehires to the first and third shifts.

Jeanette Pegram was not hired in January or February

1983 because the Company hired a former employee for

the only job that came open for which she was qualified.‘

During this period of expanding business and

substantial hiring, the Company, for entirely legitimate

business reasons, reimplemented an antinepotism policy

4 Over the Company’s objection, the ALJ allowed

Counsel for General Counsel to introduce evidence that

the refusals to rehire the three alleged discriminatees in

early 1983 violated the Act even though the refusals to

rehire were outside of the § 10(b) limitations period. The

ALJ’s decision, enforced by the Board, states but makes no

specific finding that prior to the reimplementation of the

antinepotism policy the positions for which the Pegrams

and Honeycutt were qualified were filled by rehires who

were better qualified.

~~

that had been dormant for many years.6 Among other

things, the policy prohibited hiring immediate family

members of management. Incumbent employees related

tO management were not discharged but were

“grandfathered” in under the policy. This was the same

approach taken when the antinepotism policy was first

adopted. The policy was reimplemented in the latter part

of February 1983. The policy was communicated to all

Company managers, supervisors, and personnel

representatives. The policy was enforced uniformly

without exception from that point forward.®

Elaine Honeycutt and Charles and Jeanette Pegram

continued to update their applications monthly during early

1983. Elaine Honeycutt was not rehired for openings to

her former job during January or February 1983 because

the Company hired more qualified applicants. She was

not hired after February 1983 because of the reinstitution

of the antinepotism policy since her father was a

supervisor and her hiring would have violated the

reinstituted policy, which was uniformly enforced to deny

jobs to all applicants related to management. Charles and

6 The policy was revived when the increased hiring

began in February 1983 when a manager asked the

Company to hire his son, and the Company decided that

hiring immediate relatives of management created

conflicts of interest, favoritism, discipline problems, and

inconsistent treatment that the Company wanted to avoid.

¢ In addition to the alieged discriminatees, six other

applicants related to management were denied

employment due to the reinstituted antinepotism policy,

three in March 1983 and one each in July, August, and

September 1983.

—

Jeanette Pegram were not hired in January or February

1983 for reasons found by the Board to be

non-discriminatory. They were not hired following the

reinstitution of the antinepotism policy because they were

immediate family members of supervisors Buford Clanton

and Rayford Clanton.

When Elaine Honeycutt came by the plant to update

her application, she was told the Company had no job

openings for her and that she could continue updating her

application.7 In June 1983 Honeycutt requested a meeting

with the Company’s personnel manager to ask why she

had not been rehired when the Company had hired persons

into her former position. The personnel manager told her

the Company had reinstituted its antinepotism policy in

February 1983 and that she would not be rehired because

she was a relative of management. On numerous

occasions when the Pegrams came to the plant to update

their applications in early 1983, they were told by

Company representatives the Company had no jobs for

them. Charles Pegram was told in January, February, and

March 1983,“... [T]here wasn’t no openings; they was

claiming they didn’t have no openings time and again, that

it wan’t (wasn’t) no use to come back.” The Pegrams

nevertheless continued to update their applications until

the Company’s personnel manager saw them in the

personnel department in October 1983 and invited them

7 Company policy permitted all applicants, including

rejected applicants, to update their applications monthly.

The evidence showed the Company never refused to accept

an application or prohibit an individual to update an

application because of efforts to comply with federal civil

rights laws. See, Mang v. Blumenthal, 26 FEP Cases 1353

(W.D. Pa. 1981).

— oo

into his office. He told them they would not be rehired

because the Company had reinstituted the antinepotism

policy which covered them as immediate family members

of management.

III. The Board’s Disposition of the Question Whether the

Six-Month Limitations Period in § 10(b) of the Act

Barred Issuance of the Complaint

Since the critical event--the Company’s promulgation

of the antinepotism policy and later application of the

policy to bar rehiring Elaine Honeycutt and Charles and

Jeanette Pegram--occurred more than six months before

the filing of the unfair labor practice charge, the Company

challenged the timeliness of the Board’s Complaint. At the

start of the hearing, the Company moved to exclude all

testimony regarding promulgation of the antinepotism

policy and evidence on hiring decisions made by the

Company outside of the limitations period. Counsel for

General Counsel argued that the antinepotism rule was

discriminatorily instituted and that the Company

discriminated against the alleged discriminatees by

refusing to rehire them outside of the limitations period

even before the institution of the antinepotism rule.

Counsel! further stated that although no specific finding of

a violation could result from the introduction of evidence

outside the limitations period, the ALJ should admit the

evidence as background. Overruling the Company’s

objection, the ALJ allowed Counsel for General Counsei to

introduce as background evidence that the implementation

of the antinepotism policy and hiring decisions made

outside the limitations period were iliegal. The ALJ

—

qualified his ruling stating although such evidence was

admissible, he would not predicate a finding of an unfair

labor practice within the six-month limitations period on

such background evidence.

The Board found that issuance of the Complaint was

not barred by the running of the six-month limitations

period. In the Board’s view, the Company’s § 10(b)

“procedural” defense and reliance upon Local Lodge

No. 1424, International Association of Machinists (Bryan

Manufacturing Co.) v. NLRB, 362 U.S. 411 (1960), was

misplaced. The Board held that § 10(b) is subject to

equitable tolling and that the six-month limitations period

did not begin to run until Honeycutt and the Pegrams were

put on actual or constructive notice they were not eligible

for rehire. The Board found it was not until June and

October, 1983, dates within the limitations period, that

Honeycutt and the Pegrams were told they would not be

rehired because of the antinepotism policy. Consequently,

the Board held the Union’s charge was timely.

The Court of Appeals found the charge was timely

filed and enforced the Board’s Order. Neither the Board

nor the Court of Appeals addressed the Company’s

arguments, advanced pursuant to Bryan Manufacturing’s

two-situation test, that the ALJ erred as a matter of law in

allowing Counsel for General Counsel to introduce pre-§

10(b) evidence that the antinepotism policy was unlawfully

implemented and then in relying on the time-barred

evidence to prove an illegal refusal to rehire within the

limitations period.

—

IV. The Board’s Ultimate Findings as to the Merits of

the Unfair Labor Practices Alleged

On the mer'ts, the Board found the critical issue raised

by the refusal to rehire allegation was “whether the return

to the [antinepotism] rule or policy was prompted by

Respondent’s desire to avoid rehiring union supporters.” It

observed that, according to the dictates of Wright Line, Inc.,

251 NLRB 1083 (1980), enforced, 662 F.2d 899 (1st Cir.

1981), cert. denied, 455 U.S. 989 (1982), the General

Counsel established a prima facie case that the union

activity of Elaine Honeycutt and Charles and Jeanette

Pegram was a motivating factor in the Company’s refusal

to rehire them. Accordingly, the Board concluded the

burden shifted to the Company to demonstrate that it

would not have rehired the three alleged discriminatees

even in the absence of their protected conduct.

The Board first examined whether the Company’s

antinepotism policy was discriminatorily implemented

inasmuch as the policy was the sole basis for refusing to

rehire Honeycutt and the Pegrams within the limitations

period. While initially concluding the Company’s

antinepotism policy was based upon “some very obvious

and legitimate purposes,” the Board concluded it was

discriminatorily implemented in late February 1983. Thus,

finding illegality in the February 1983 promulgation of the

antinepotism policy even though outside of the § 10 (b)

period, the Board concluded the Company violated

§§ 8(a)(3) and (4) of the Act by enforcing the policy

against Elaine Honeycutt and Charles and Jeanette Pegram

when they updated their applications each month within

the limitations period or since April 20, 1983.

—_— en

REASONS FOR GRANTING THE WRIT

I.

The Court of Appeals, erroneously and in conflict

with this Court’s decisions, decided an important

§ 10(b) question of law that significantly affects

the administration of the Act.

1. The decision below conflicts with this Court’s

holding in Bryan Manufacturing. In Bryan Manufacturing, a

union committed an unfair iabor practice by entering into

a collective bargaining agreement containing a union

security clause when it did not represent a majority of the

employees in the appropriate unit. Ten to twelve months

after the execution of the agreement charges were filed

with the Board. The Board contended that the execution

and continued enforcement of the bargaining agreement

constituted independent unfair labor practices. The Board,

while conceding that § 10(b) barred any complaint based

upon the execution of the alleged illegal agreement,

contended that evidence as to the execution was

admissible and relevant as background to determine

whether conduct within the limitations period was

unlawful. This Court disagreed holding that the General

Counsel’s complaint was time-barred. This Court held that

continued enforcement of the contract was not an unfair

labor practice without reference to the unlawful execution

that occurred more than six months prior to the filing of

the charge. This Court also rejected the Board’s position

that § 10(b) is a statute of limitations and not a rule of

—"

evidence and fashioned a two-situation test to determine

the admissibility of events outside the limitations period as

bearing upon alleged violations within the limitations

period:

The first is one where occurrences within the

six-month limitations period in and of

themselves may constitute, as a substantive

matter, unfair labor practices. There, earlier

events may be utilized to shed light on the true

character of matters occurring within the

limitations period; and for that purpose, § 10(b)

ordinarily does not bar such evidentiary use of

anterior events. [Footnote omitted.] The second

situation is that where conduct occurring within

the limitations period can be charged to be an

unfair labor practice only through reliance on

an earlier unfair labor practice. There, the use

of the earlier unfair labor practice is not merely

“evidentiary,” since it does not simply lay bare

a putative current unfair labor practice. Rather,

it serves to cloak with illegality that which was

otherwise lawful. And where a complaint based

upon that earlier event is time-barred, to

permit the event itself to be so used in effect

results in reviving a legally defunct unfair labor

practice.

Id. at 416-417.

The facts of this case fall squarely within Bryan

Manufacturing’s second situation. The controlling

time-event in this case is the Company’s implementation

of the antinepotism policy in February 1983, two months

| =

outside of § 10(b)’s limitations period. This time-barred

event is the entire foundation for the refusals to rehire that

occurred within the limitations period. Absent that fact,

the Company’s enforcement of a facially neutral and

otherwise valid antinepotism policy was wholly legal, for

the Board never concluded the policy itself was

discriminatory, only that it was promulgated for unlawful

reasons. Nevertheless, the Board relied upon its conclusion

that the antinepotism policy was illegally implemented not

as mere background, but as the sole evidence upon which

it found a refusal to rehire violation within the limitations

period. The time-barred event was given exclusive

significance by the Board since an unfair labor practice

based upon the Company’s refusal to hire could not be

made out within the limitations period except by reliance

on, the policy’s original unlawful promulgation. Even

assuming the Board correctly found the antinepotism rule

was unlawfully promulgated, the finding has no legal

effect because the rule was promulgated outside the §

10(b) period. Moreover, all the evidence showed it was

applied neutrally within the § 10(b) period. Thus, the

policies underlying § 10(b) and the rule of evidence

established by this Court in Bryan Manufacturing have been

violated by the Board’s reviving a defunct unfair labor

practice and converting an otherwise legal refusal to rehire

into something illegal.

8 In fact, at the beginning of his analysis on the merits

of the unfair labor practice allegations, the ALJ clearly

indicated his intent to rely on time-barred evidence to find

a violation within the period when he stated, “The issue

here is whether the return to the rule or policy was

prompted by Respondent’s desire to avoid rehiring of

union supporters.”

a tx

2. The Board’s decision the Company illegally

refused to rehire the alleged discriminatees within the

limitations period pursuant to an illegally promulgated

antinepotism policy in effect holds that the Company’s

continued enforcement of the antinepotism policy was a

continuing violation, a result proscribed by this Court’s

decisions. The Board concluded the Company’s sole basis

for refusing to rehire the alleged discriminatees was

because they were relatives of management and not

eligible for rehire under the antinepotism policy. In this

context, the three were refused reemployment each month

they updated their applications. The Board’s holding in

effect invokes a doctrine of continuing violation. As this

Court stated in Bryan Manufacturing, even though the

Board’s ruling did not rest on a formal finding that the

execution of the policy amounted to an unfair labor

practice, were that not in fact the case, enforcement of the

policy would carry no taint of illegality. Thus, the Board’s

vice herein is the “particular use of the pre-limitations

facts” at which § 10(b) is aimed to find a continuing

violation within the limitations period contrary to this

Court’s holding in Bryan Manufacturing.

The effect of the Board’s holding in this case creates

an erroneous precedent and conflicts with this Court’s

holdings in Delaware State College v. Ricks, 449 U.S. 250

(1980), and United Airlines, Inc. v. Evans, 431 U.S. 553

(1977), which rejected claims of continuing violations. In

both cases, complainants advanced a claim, similar to the

allegations advanced herein, that time-barred illegal

conduct and its effects caused them harm within the

limitations period. The reasoning in United Airlines is

particularly applicable to this case. There, this Court found

that United’s seniority system, though giving some present

—

effect to a past act of discrimination, was neutral in its

operation. Finding United was entitled to treat its past act

as lawful after complainant failed to pursue a claim within

the limitations period, this Court reasoned as follows:

A discriminatory act which is not made the

basis for a timely charge is the legal equivalent

of a discriminatory act which occurred before

the statute was passed. It may constitute

relevant background evidence in a proceeding

in which the status of a current practice is at

issue, but separately considered, it is merely an

unfortunate event in history which has no

present legal consequences.

Id. at 558.

The Board found the Company’s reimplementation of

the antinepotism policy outside the § 10(b) period was

discriminatory, then proceeded to rely on this finding to

support its conclusion that, within the § 10(b) period, the

Company illegally refused to rehire Honeycutt and the

Pegrams pursuant to the policy. The Board’s giving legal

significance to the reimplementation of the policy, a

time-barred event, directly contravenes this Court’s dictate

in United Airlines that such an event is “merely an

unfortunate event in history which has no _ legal

consequences.” The Board’s decision and the Court of

Appeals’ affirmation of the Board’s decision thus directly

conflict with a prior decision of this Court.

3. | The Company concedes it did not specifically

inform Honeycutt and the Pegrams until within the

limitations period that their applications were being

«<a

rejected each month they reapplied due to the antinepotism

policy. The Board, however, never accurately focused on

the actual “unlawful employment practice” charged in the

Complaint as required by Delaware State College v. Ricks,

449 U.S. at 257. The original unfair labor practice charge

filed by the Union, not by the alleged discriminatees,

charged the Company with “refusing to recall from layoff

or to rehire” Elaine Honeycutt and Charles and Jeanette

Pegram. The Board’s Complaint alleged the Company’s

unlawful employment practice was a refusal to rehire. At

trial, Counsel for General Counsel stated she intended to

prove the Company discriminated against the three

applicants in January and February 1983 (outside the

limitations period and prior to the institution of the

antinepotism rule) when they were passed over for job

Openings in their former classifications. In its Brief to the

Court of Appeals, the Board argued that “Substantial

evidence supports the Board’s finding that the Company

retaliated against this known protected activity by refusing

to rehire the three when positions first became available

for which they were qualified.” Much of the testimony in

this case was offered by Counsel for General Counsel to

prove the Company discriminated against the three

applicants prior to the institution of the antinepotism rule

and outside the limitations period. Counsel for General

Counsel was allowed to admit evidence, including a list of

Company hires back to 1982, to prove her stated position

there was discrimination which preceded the § 10(b)

period. The Company spent a substantial portion of the

trial and in its brief to the ALJ defending against that

~—

allegation.® All parties to this case agree that the three

alleged discriminatees applied for rehire each month

outside the limitations period, but were not rehired into

jobs for which they were otherwise qualified, arguably an

unfair labor practice within the plain meaning of the

“refuse to rehire” Complaint allegation. In sum, these

facts show that the initial “unlawful employment

practice”--the refusal to rehire as alleged in the

Complaint--occurred in January and February 1983

outside of the limitations period. Therefore, either the

three were arguably discriminated against outside of the

limitations period by an illegal refusal to rehire as alleged

in the Union’s charge, the Board’s Complaint, by Counsel

for General Counsel, and the Board, or they were not. If

they were, then the charge alleging a refusal to rehire was

untimely, and the Complaint should have been dismissed.

Il.

This is an important case concerning equitable

tolling issues this Court should resolve to

promote proper administration and enforcement

of § 10(b) of the Act.

The Act’s limitations period in § 10(b) is subject to

equitable tolling as are virtually as statutes of limitations.

As a general rule, federal statutes of limitations begin to

run “when the claimant discovers, or in the exercise of

reasonable diligence should have discovered the acts

constituting the alleged violation.” NLRB v. Don Burgess

Construction Corp., 596 F.2d 378, 382 (9th Cir. 1979).

Courts construing Title VII's limitations period have held

® Approximately 30 percent of the record testimony was

devoted to pre-§ 10(b) allegations.

= yn

that in a refusal to hire context filing periods begin to run

when facts supportive of a charge are or should be

apparent to a reasonably prudent person similarly situated

or upon the happening of events which should have alerted

the average lay person to act to protect his rights. Nilsen v.

City of Moss Point, Mississippi, 621 F.2d 117, 121 (Sth Cir.

1980).

Conceding none of the alleged discriminatees were

told until within the limitations period they were barred

from employment because of the antinepotism policy, the

Company contends equitable tolling was not appropriate in

this case for a number of compelling reasons. The Board

did not find the Company fraudulently concealed the

implementation or application of the antinepotism policy.

Each month the three individuals reapplied, they were

refused employment. They were specifically told there

were no jobs available. The Company communicated to

them a refusal to rehire each month they reapplied.

Therefore, the three individuals could have filed an unfair

labor practice charge to protect their interests each month

the Company refused to rehire them. The record is clear

they knew as early as January 1983 jobs for which they

were qualified were given to other applicants. That is when

they discovered or should have discovered the acts

constituting the alleged violation, i.e. an illegal refusal to

rehire. See, Vallone v. Local Union No. 705, International

Brotherhoed of Teamsters, 755 F.2d 520, 522 (7th Cir.

1985); Klemens v. Air Line Pilots Association, Int’l, 736 F.2d

491, 500 (9th Cir. 1984); General Marine Transport Corp. v.

NLRB, 691 F.2d 180, 188-189 (2d Cir. 1980); NLRB v.

California School of Professional Psychology, 583 F.2d 1099,

1101 (9th Cir. 1978); NLRB v. Local 30, International

Longshoremen’s and Warehousemen’s Union, 549 F.2d 698,

—~—

701 (9th Cir. 1977); Local 1104, Communications Workers v.

NLRB, 520 F.2d 411, 416 (2d Cir. 1975); Nazareth Regional

High School v. NLRB, 459 F.2d 873, 882 (2d Cir. 1977).

Equitable tolling is not appropriate in this case

because the discriminatees’ agent, the Union, as charging

party in this case, had actual knowledge the first alleged

refusals to rehire occurred outside of § 10(b)’s six-month

limitations period. The Union’s first unfair labor practice

charge filed on October 19, 1983, alleged that since

January 25, 1983, the Company refused to rehire Jeanette

Pegram and that since March 15, 1983, it refused to rehire

Elaine Honeycutt and Charles Pegram. Obviously, both

alleged illegal refusal to rehire dates are outside the

limitations period. Significantly, the dates alleged by

charging party prove it knew the first alleged illegal

refusals to rehire occurred outside of the § 10(b) period.

Why else would the charging party Union declare in

writing pre-§ 10(b) dates if it did not believe the initial

illegal refusals to rehire occurred then?° Subsequently,

however, charging party must have realized the statute of

limitations problem because it amended the charge on the

same day the Board issued its Complaint to allege the

refusals to rehire occurred on April 20, 1983,

coincidentally one day within the six-month period from

October 19. April 20, 1983, has no factual significance

other than it is exactly six months prior to October 19.

10 The charge form signed by the Union states “[T}he

statements therein are true to the best of my knowledge

and belief,” and false statements on the charge can be

punished by fine and imprisonment.

Hence, charging party's own documents conclusively

establish it had actual knowledge the unlawful refusal to

rehire occurred outside of the limitations period. This

knowledge should be imputed to the discriminatees.

Charging party’s expedient charge amendment is nothing

more than a subterfuge to mask its actual knowledge that

the initial illegal refusals to rehire occurred outside § 10(b)

and should not defeat the limitations period’s application

to bar issuance of the Complaint.

CONCLUSION

For the foregoing reasons, a writ of certiorari should

issue to review the judgment of the Court of Appeals for

the Second Circuit.

Respectfully submitted,

CLARK, PAUL, HOOVER & MALLARD

By:

David C. Hagaman

600 Sussex Place

148 International Blvd., N.E.

Atlanta, Georgia 30303

404/522-7500

Counsel for Petitioner

APPENDIX

~~

UNITED STATES COURT OF APPEALS

FOR THE

SECOND CIRCUIT

At a stated Term of the United States Court of

Appeals for the Second Circuit, held at the United States

Courthouse in the City of New York, on the 17th day of

April, one thousand nine hundred and eighty-six.

Present:

HONORABLE WALTER R. MANSFIELD

HONORABLE RICHARD J. CARDAMONE

HONORABLE LAWRENCE W. PIERCE

Circuit Judges

UNIGLASS INDUSTRIES, A DIVISION OF UNITED

MERCHANTS & MANUFACTURERS, INC.,

Petitioner-Cross—Respondent,

ORDER

Docket No.

—against- 85-4182(L)

85-4188

THE NATIONAL LABOR RELATIONS BOARD,

Respondent-Cross-Petitioner.

Uniglass Industries, a Division of United Merchants &

Manufacturers, Inc. (Uniglass), brought this action

ow XY, ae

pursuant to § 10(f) of the National Labor Relations Act

(Act), 29 U.S.C. § 160 (1982), to set aside a

September 24, 1985 Order of the National Labor Relations

Board (Board) finding that Uniglass had committed unfair

labor practices in violation of §§ 8(a) (1), (3) and (4). 29

U.S.C. § 158(a)(1), (3), and (4). The Board affirmed the

Administrative Law Judge’s (ALJ) findings. It has filed a

cross-application for enforcement of its Order.

Uniglass operates a plant in Statesville, North Carolina

where it manufactures synthetic fibers. The Amalgamated

Clothing & Textile Workers Union (Union) commenced an

Organizational campaign at Uniglass in early 1980. This

culminated in an election on July 24, 1980, which the

Union lost. Employees Elaine Honeycutt, Charles Pegram,

Jeanette Pegram, and Jeffrey Smith engaged in union

activity at the Uniglass plant in 1980. In early 1981 the

Board conducted a hearing on unfair labor practice

charges arising out of the organizational campaign. Elaine

Honeycutt and Charles Pegram testified at the hearing as

witnesses for the Union. Between January and July 1982

Uniglass laid off the Pegrams and Elaine Honeycutt, and

the employees were terminated pursuant to company

policy after their layoffs. Jeffrey Smith was notified on

June 15, 1983 to meet with his department head to explain

recent absences. Honeycutt came to the meeting to verify

Smith’s illness. Smith’s employment subsequently was

terminated.

The Board found that Uniglass violated § 8(a)(3), (1)

of the Act by refusing to rehire the Pegrams and

Honeycutt, in retaliation for their protected union activities

and by discharging Smith, in retaliation for association

with a union supporter. The Board also found that

Uniglass violated §§ 8(a)(4), (1) by refusing to rehire

Honeycutt and Charles Pegram in retaliation for their

oe

testimony at a Board hearing. Finally, the Board

concluded that Uniglass violated § 8(a)(1) by informing an

employee, Arlene Smith, that Jeffrey Smith would not have

been discharged had he not sought Honeycutt’s assistance,

and by informing Honeycutt that she would not have been

laid off and would have been rehired but for her

involvement in Union activities.

First, we reject Uniglass’ argument that the Board’s

finding of unlawful refusal to rehire is time-barred by the

six-month limitation of § 10(b) of the Act, 29 U.S.C.

§ 160(b). Under the Act, the six-month limitation period

“does not begin to run until the aggrieved party knew or

should have known that his statutory rights were violated.”

Metromedia, Inc. v. NLRB, 532 F.2d 1182, 1189 (8th Cir.

1978); accord NLRB vy. Don Burgess Const. Corp., 596

F.2d 378, 382-83 (9th Cir. 1979); Wis. River Val. Dist.

Council, Etc. v. NLRB, 532 F.2d 47, 53 (7th Cir. 1976).

Here, Uniglass failed to show that Honeycutt or the

Pegrams had actual or constructive knowledge outside the

six-month period that they were barred from

reemployment. The Board found that Honeycutt did not

discover that she was not subject to rehire until June 1983,

when she inquired of Assistant Industrial Relations

Manager Carl Sharpe why she had not been rehired. The

Pegrams learned that they would not be rehired on

October 12, 1983, when they also were notified by Carl

Sharpe. On October 19, 1983 the union filed its charge

aileging a discriminatory refusal to hire. The fact that

other individuals were being hired for positions these

employees had previously held did not serve to put them

on notice that they would never be hired.

Finally, substantial evidence on the record as a whole

supports the Board’s findings that Uniglass violated

§§ 8(a)(3), (1), and in two instances 8(a)(4) of the Act by

ontitllinn

refusing to rehire Honeycutt, and the Pegrams because of

their protected union activities and by discharging

employee Jeffrey Smith because of his association with

Honeycutt. Universal Camera Corp. v. NLRB, 340 U.S.

474, 488 (1951).

Uniglass’ petition for review is denied and

enforcement of the Board’s order is granted.

N.B. Since this

statement does not Walter R. Mansfield, U.S.C.J.

constitute a formal

opinion of this court and

is not uniformly available

to all parties, it shall Richard J. Caradmone, U.S.C.J.

not be reported, cited or

otherwise used in

unrelated cases before

this or any other court. Lawrence. W. Pierce, U.S.C.J.

_S

UNITED STATES OF AMERICA

BEFORE THE NATIONAL LABOR RELATIONS

BOARD

UNIGLASS INDUSTRIES, DIV. UNITED

MERCHANTS & MFRS.

and Case 11--CA--11089

AMALGAMATED CLOTHING AND TEXTILE

WORKERS UNION, AFL--CIO, CLC

DECISION AND ORDER

On 3 August 1984 Administrative Law Judge Hutton

S. Brandon issued the attached decision. The Respondent

filed exceptions and a supporting brief.

The National Labor Relations Board has delegated its

authority in this proceeding to a three-member panel.

The Board has considered the decision and the record

in light of the exceptions and brief and has decided to

affirm the judge’s rulings, findings,1 and conclusions and

to adopt the recommended Order.

‘ The Respondent has excepted to some of the judge’s

credibility findings. The Board’s established policy is not

to overrule an administrative law judge’s credibility

resolutions unless the clear preponderance of all the

relevant evidence convinces us that they are incorrect,

Standard Dry Wall Products, 91 NLRB 544 (1950), enfd.

188 F.2d 362 (3d Cir. 1951). We have carefully examined

the record and find no basis for reversing the findings.

a

ORDER

The National Labor Relations Board adopts the

recommended Order of the administrative law judge and

orders that the Respondent, Uniglass Industries, Div.

United Merchants & Mfrs., Statesville, North Carolina, its

officers, agents, successors, and assigns, shall take the

action set forth in the Order.

Dated, Washington, D.C. 24 September 1985

Donald L. Dotson, Chairman

Patricia Diaz Dennis, Member

Wilford W. Johansen, Member

(SEAL) NATIONAL LABOR RELATIONS BOARD

_

UNITED STATES OF AMERICA

BEFORE THE NATIONAL LABOR RELATIONS

BOARD

DIVISION OF JUDGES

BRANCH OFFICE

ATLANTA, GEORGIA

UNIGLASS INDUSTRIES, DIV. UNITED

MERCHANTS & MFRS.

and Case 11--CA--11089

AMALGAMATED CLOTHING AND TEXTILE

WORKERS UNION, AFL--CIO, CLC

Janet M.'Holland, Esq., for the General Counsel.

David C. Hagaman, Esq., (Clark, Paul, Hoover &

Mallard), of Atlanta, GA, for the Respondent.

Mr. Robert E. Freeman, of Kannapolis, NC, for the

Charging Party.

DECISION

Statement of Case

HUTTON S. BRANDON, Administrative Law Judge.

This case was tried at Statesville, North Carolina,

April 24-26, 1984. The charge was filed on October 19,

1983,' by Amalgamated Clothing and Textile Workers

Union, AFL-CIO, CLC, herein called the Union, and

All dates are in 1983 unless otherwise specified.

wifiiiion

amended on December 2. The complaint and an amended

complaint in the case issued on December 2 and 13,

respectively. The complaint, as amended, alleges that

Uniglass Industries, Div. United Merchants & Mfrs. also,

herein called Respondent or the Company, violated

Section 8(a)(1),(3), and (4) of the National Labor

Relations Act, herein called the Act. The primary issues

are whether Respondent, (a) violated Section 8(a)(3) and

(1) of the Act in discharging its employee Jeffrey Smith

because of his involvement in union or concerted activities,

(b) violated Section 8(a)(4),(3), and (1) of the Act by

refusing to rehire Elaine Honeycutt, Charles Pegram, and

Jeanette Pegram because of their union activities and/or

because they gave testimony under the Act in a prior

proceeding before the Board involving Respondent, and (c)

independently violated Section 8(a)(1) of the Act through

statements of two supervisors to employees to the effect

that the alleged discriminatees were discharged or were

not rehired because of their involvement in union activities

or activities otherwise protected under the Act.

On the entire record, including my observation of the

demeanor of the witnesses and after consideration of the

oral argument at the hearing by the Union and the post

hearing briefs filed by the Generali Counsel and

Respondent, I make the following:

Findings of Fact

I. Jurisdiction

Respondent is a corporation operating a plant in

Statesville, North Carolina, where it is engaged in the

manufacture of synthetic fibers. During the 12-month

period preceding issuance of complaint, Respondent, at its

Statesville plant, received goods and raw materials valued

a, Meprray

ae

in excess of $50,000 directly from outside the State of

North Carolina. During the same period, Respondent

manufactured, sold, and shipped goods valued in excess of

$50,000 from its Statesville plant directly to points outside

the State of North Carolina. On these admitted facts, the

complaint alleges, Respondent admits, and I find, that

Respondent is an employer engaged in commerce within

the meaning of Section 2(6) and (7) of the Act. The

complaint also alleges, Respondent admits, and | further

find, that the Union is a labor organization within the

meaning of Section 2(5) of the Act.

II. The Alleged Unfair Labor Practices

A. Bac und

The union activity alleged to provide the impetus for

Respondent’s actions in the refusals to rehire and the

discharge in this case began among Respondent's

employees sometime in early 1980. All of the alleged

discriminatees herein testified to various activities in

behaif of the Union, and Respondent through Carl Sharpe,

its assistant director of industrial relations, admitted to

knowledge of the Union inclinations and sympathies of

Honeycutt and Charles Pegram. Moreover, both

Honeycutt and Charles Pegram had given testimony

against Respondent in a prior unfair labor practice hearing

before the Board in early 1981. That case was settled by

the parties during the hearing and prior to any decision on

the issues involved.

Respondent’s knowledge of Jeanette Pegram’s union

inclinations could be inferred from the fact that she was

married to Charles Pegram and likely shared his views on

—A-10—

the Union. However, such an inference is unnecessary

because Rayford Clanton, Jeanette’s brother and a

department manager and supervisor for Respondent,

admitted to remarks related in more detail below revealing

Respondent's knowledge that Jeanette in fact shared in her

husband’s union support.

Jeffrey Smith testified that he was active in the union

campaign to the extent of passing out union leaflets,

attending meetings, and wearing a union T-shirt in the

plant. Respondent does not admit to any knowledge of

Smith’s union activity which in any event would have

antedated his most recent period of employment by

Respondent beginning on March 14. However, as detailed

infra, the General Counsel primarily relies upon Smith’s

involvement with known union adherent Honeycutt to

supply the basis for Respondent’s knowledge of his likely

union support and the predicate for retaliatory action

against him.

The record indicates that the Union’s campaign

culminated in an election on July 24, 1980, and the Union

lost. The record does not establish that the old union

campaign was continuing during the period when

Respondent took the alleged discriminatory action herein

or that a new campaign had started at any relevant time.

B. The Refusals To Rehire

1. The material facts

a. Honeycutt

Elaine Honeycutt’s first period of employment by

Respondent began in about 1973. On three separate

occasions she quit. Her fourth and last period of

i eal — ee oe

—A-11—

employment began in September 1978. At the time of her

layoff in July 1982, she was a weaver. Neither the layoff

nor Honeycutt’s selection for layoff was discriminatory.

Under Respondent’s policies in effect at the time of

Honeycutt’s layoff laid off employees retained recall rights

for a period of 6 months.2 Under this policy, Honeycutt’s

recall rights expired in January, and it then became

necessary for her to reapply for c.aployment with

Respondent. She did so in January. Moreover, as

required under Respondent’s policies, Honeycutt

“updated” her application monthly by advising

Respondent’s offices of her continued interest in

employment. Honeycutt testified herein that upon visits or

calls to Respondent to update her application she was told

by Judy Lamberth, then Respondent’s assistant personnel

manager, to rest assured that when a job became available

for which she was qualified she would be called.

Honeycutt was not recalled to work, however, in spite

of the undisputed fact that beginning in February,

Respondent began to hire new employees including six in

Honeycutt’s weaver classification. Additional weavers

were hired in March. Further, seven new employees were

2 Respondent changed this policy July 1983, to extend

recall rights for a full year.

—A-12—

hired in February in the loom fixer classification, a

position in which Honeycutt had received 13 weeks of

training in 1980.3

Honeycutt testified that after becoming aware that

Respondent had employed a large number of employees

she arranged a meeting with Sharpe in June. At the

meeting she asked Sharpe why she had not been recalled.

Sharpe replied that it was because Respondent had decided

to enforce a previously existing policy against hiring

applicants with relatives in Respondent’s management or

supervision. It is undisputed that Honeycutt’s father,

George Honeycutt, was at all material times employed by

Respondent in a position qualifying him as supervisor

within the meaning of the Act. Honeycutt asked Sharpe

why Randy Gardner, a son of a weave room supervisor,

had been hired in February, and Sharpe indicated that the

return to the old policy did not take effect until March 1.5

3 Honeycutt conceded that it takes approximately 26

weeks of training to become proficient in loom fixing. She

was bumped back from the position prior to completion of

her training due to an economic layoff.

4 The policy, appearing in the Employee Handbook

generally distributed to employees, is as follows:

To avoid misunderstandings, no member cf

management shall employ and/or supervise any.

member of his or her immediate family. The

immediate family is defined as a parent, brother,

sister, spouse, child, grandparent or corresponding

in-laws. (This policy does not affect any situations

existing when this policy was established.)

5 When it was decided that the old policy would be

enforced, relatives of management who were already

employed were “grandfathered” in and not discharged.

aii 3—

The remarks attributed to George Honeycutt by his

daughter mark the development of a deep familial rift

caused by Elaine Honeycutt’s union support. Thus, she

testified that prior to her testimony in the earlier Board

proceeding her father asked her not to testify, told her he’d

rather she stay out of the matter, and told her if she

testified she would lose her job and would have to leave

the State to find another one. The day following her

testimony, he told her that she had disgraced him, that

Respondent was going to close its doors, that neither he,

Elaine, nor her sister Wanda, also an employee of

Respondent who worked against the Union, would have a

job. According to Honeycutt, her father repeated these

remarks and made similar remarks on severai subsequent

occasions. More specifically, about 3 weeks following her

layoff, he told her after what she had done and the shame

she had put on him Respondent would never recall her to

work. He further told her that if she hadn’t “run” her

mouth and had not testified, she would still have been

working at Respondent, that her actions had put a black

mark on his name, that she wasn’t worth much, and

probably wouldn’t get another job in town.

The General Counsel contends that Respondent’s

failure to rehire Honeycutt during February when it rehired

other employees and Respondent’s subsequent decision to

enforce its “anti-nepotism” policy were discriminatory

actions designed to avoid reemployment of Honeycutt.

This contention is supported by further uncontradicted

testimony of Honeycutt concerning conversations with

herfather about the union campaign and Honeycutt’s

efforts to be reemployed.

The last remark on this subject attributed by

Honeycutt to her father was made in a telephonic

conversation between the two a month or two prior to the

ttt

hearing herein. Upon her question as to whether she

would be recalled by Respondent, George Honeycutt

ambiguously replied that he didn’t think she would be

called back, not because of the Company but because of

the Union.

Further evidence of Respondent’s animosity toward

Honeycutt due to her union activity was revealed in the

testimony of employee Arlene Smith. She testified about a

conversation she had with Raymond White, Respondent’s

weave division manager, around June 28, regarding the

discharge of Jeffrey Smith, another alleged discriminatee

and Arlene’s son. According to Mrs. Smith, White

reported to her at her work station concerning his post

discharge efforts in behalf of Jeffrey Smith undertaken at

Jeffrey Smith’s request. White told here there was nothing

he could do about the discharge but if he had known about

it before it happened, he could have stopped it. However,

he added that “they were saying” that Jeffrey made an

implied threat to Respondent when he brought Honeycutt

with him when he came to see his supervisors just prior to

the discharge. Mrs. Smith replied that the only purpose

for Honeycutt’s presence was verification of Jeffrey

Smith’s illness which occasioned the absences which in

turn precipitated Smith’s discharge interview. Mrs. Smith,

Jeffrey’s mother, added that her son had initially asked her

to come and verify his illness to his supervisors rather than

Honeycutt but she had declined, and Honeycutt who lived

with the Smiths volunteered. White replied that had

Mrs. Smith come or had Jeffrey come alone he would still

be employed. White added that if one had an argument

one would not go out and get one’s worst enemy to

arbitrate. Mrs. Smith asked White if Honeycutt was his

worst enemy and White answered, “The way she dragged

our ass through court/?7,” and the conversation ended.

—A-15—

Arlene Smith testified regarding two additional

conversations she had with White concerning Honeycutt.

The first was in January when she asked White if

Honeycutt would be hired back. On that occasion, White

said he thought a lot of Mrs. Smith,* and of Honeycutt’s

father, and he would do his best but he had a lot of

opposition from “across the street,” a reference to the

personnel office. Subsequently in March, White reported

to her that he and Wendell Cook, superintendent of

weaving, had “tried” hard to get Honeycutt back but just

weren’t going to be able to do it.

Respondent’s explanation for not recalling Honeycutt

in early February, as related through Sharpe, was that

Respondent hired other former employees in preference to

Honeycutt since they had better work records.

Specifically, in this regard, Sharpe testified that during her

employment, Honeycutt had received 12 “talk sheets” and

4 written reprimands while the others rehired did not have

disciplinary records as bad as Honeycutt. Sharpe’s

explanation for the subsequent failure to recall Honeycutt

was based on Respondent’s decision to reinforce its

“anti-nepotism” policy. In this regard, Sharpe testified

that his attention was called to the “anti-nepotism” policy,

Or more specifically, the failure to enforce it, when

supervisor Doug Gentle requested him in February to hire

Gentle’s son. Sharpe, then the personnel manager,

resisted but learned that Randy Gardner, son of a

department manager in weaving, had just been hired. He

concluded that it was time to correct the problem by

6 It appears to have been common knowledge that

Honeycutt lived in Mrs. Smith’s home. Further, Honeycutt

identified Mrs. Smith as being the grandmother of

Honeycutt’s daughter.

—A-16—

enforcing the existent policy. Accordingly, after

conferring with Bob Rogers, Respondent’s general

manager, the decision was made to enforce the

anti-nepotism policy, and the decision was communicated

to Bob Foster, employee relations director, and Lamberth.

Sharpe confirmed the determination to enforce the policy

with a memo to Rogers dated March 1. He testified that

since reinstitution of the policy, Respondent has made no

exceptions in its application and pointed out that in

addition to Honeycutt, Respondent has, since March 1,

declined to hire six relatives of management officials

including the son of Doug Gentle.

Sharpe admitted talking to Honeycutt about the

decision not to rehire her because of reinstitution of the

anti-nepotism policy. However, 1e placed their

conversation in late March or early April rather than June

as Honeycutt had testified.

White, called as a witness by Respondent,

acknowledged that he talked to Arlene Smith about Jeffrey

Smith’s discharge. He generally denied the remarks

attributed to him vy her on that occasion and conceded

only that he told her that if she had come to see him

before the events had taken place he possibly could have

helped Jeffrey.

b. Charles and Jeanette Pegram

Charles Pegram was employed by Respondent for

approximately 20 years. He worked as a loom cleaner

prior to his layoff about March 15, 1982. His wife,

Jeanette Pegram, was also a long time employee of

Respondent having started work there in 1964. Like

Charles, Jeanette, a banker in the preparation department,

had prior layoffs, one lasting from September 1976 to

—A-17—

November 1979. Her last period of employment ended

with her layoff on January 25, 1982.

Under Respondent’s policy already noted, the Pegrams

lost seniority and recall rights 6 months following their

layoffs. However, they put in new applications and

monthly thereafter updated their applications by visits to

the plant personnel office. They were never rehired

although Respondent, beginning in late January and

continuing over the next several months, rehired a number

of loom cleaners and bankers. Moveover, it is undisputed

that the Pegrams were never told by Respondent they were

not going to be rehired or the reason they were not until

October 12, when Sharpe observed them during their visit

to the plant to “update” their applications and called them

to his office. ' There he explained to them, in effect, that

they were wasting their time, that they would not be

rehired because Respondent had on March 1, reinstituted

its policy against hiring close relatives of supervisors or

management. It is undisputed that Jeanette Pegram’s

brothers Rayford and Buford Clanton were employed by

Respondent as supervisors at all material times.

Respondent, through Sharpe, conceded at the hearing

that the Pegrams had good work records and contended

that the refusal to recall them was based solely upon the

decision to enforce the anti-nepotism policy. Sharpe in his

further testimony explained the failure to rehire the

Pegrams during the period between the beginning of

Respondent’s rehiring of employees in the Pegrams’ work

classifications and the date of the reinstitution of the

anti-nepotism policy. Thus, with respect to the one

banker, Elizabeth Steelman, rehired during that period,

Sharpe testified that Steelman was selected over Jeanette

Pegram because of her need for work and her advanced

age. Further according to Sharpe, while the work records

i 1e—

of the two were about equal, Jeanette Pegram presented a

slightly greater safety risk in view of a back injury which

had caused her to lose work time during her previous

employment.

With respect to Charles Pegram, Sharpe testified that

one vacancy in the loom cleaner classification was filled

on the third shift around February 20, and another on the

second shift sometime later but after the decision had been

made to reinstitute the anti-nepotism policy. Charles

Pegram was not considered for the first vacancy because

he had asked for employment on the second shift (a fact

he admits), and he was ineligible for the second shift

position when it was filled due to the anti-nepotism policy

and his relationship to supervisors Rayford and Buford

Clanton.

To support her contention that the refusal to rehire the

Pegrams was based upon unlawful union considerations, -

the Generai counsel relies upon the testimony of Jeanette

Pegram and Ralph Cianton, another of Jeanette’s brothers.

Ralph Clanton testified about two telephone conversations

he had with Rayford Clanton on September 18, during a

visit to the Pegram home.” He called to inquire when that

“hole” was going to rehire the Pegrams. Rayford Clanton

took offense at the reference to Respondent which he

perceived to be uncomplimentary, and the conversation

between the two brothers went downhill from that point.

More specifically, Ralph Clanton testified that Rayford

explained that the Pegrams had no recall rights and

7 Ralph Clanton initially testified to only one telephone

conversation with Rayford but on cross-examination

explained that Rayford hung up on him at one point but

called him back within a minute or two.

kee en eee, eer ee a ee eee

eee Sor

—A-19—

rejected a suggestion that he could do anything abow

getting them rehired saying that it was up to the personnel

department. Rayford also added that had the Pegrams

“not shown their asses by trying to organize that stupid

union, they might still have been” employed by

Respondent. The brothers concluded their conversations

but not before exchanging uncomplimentary remarks and

discussing a meeting for the purpose of fighting.

Jeanette Pegram attributed a similar remark to

Rayford Clanton about October 12 after being told by

Sharpe she and Charles would not be rehired. She

telephoned Rayford and asked him what he had meant in

the remark to Ralph Clanton about having showed “our

ass.” Rayford replied that it was on account of their

taking part in the damn Union and added that if they had

not showed their asses they would have been back to work

“by now.”

Rayford Clanton in testifying for Respondent admitted

that he had told Ralph that the Pegrams had showed their

asses by being involved with the Union. However, he

related that it was Ralph who asked if Rayford was saying

that the Pegrams would still have been employed if it had

not been for their union involvement. To this, Rayford

responded that he had not said that. Rayford Clanton did

not in his testimony respond to the remarks attributed to

him by Jeanette Pegram, and thus did not contradict them.

While admitting to having an interest in seeing the

Pegrams return to work, Ralph Clanton had _ the

appearance of a dispassionate witness. He impressed me

as being totally unaffected, very straightforward, and

guilelessly honest. Moreover, I find it plausible and

believable that Rayford Clanton, having expressly admitted

to his dissatisfaction with the Pegrams’ union involvement,

—A-20—

would in a heated discussion have attributed their lack of

employment status to such involvement. Finally, Ralph’s

testimony is more probably accurate in view of Jeanette

Pegram’s uncontradicted testimony attributing an identical

remark to Rayford Clanton. I, therefore, credit Ralph

Clanton’s testimony as well as that of Jeanette Pegram

over that of Rayford Clanton who I found less persuasive

as a witness.

2. Arguments and conclusions

Initially, the General Counsel argues that Rayford

Clanton’s statement to Jeanette Pegram was coercive and

violative of Section 8(a)(1) because it conveyed to an

employee applicant that Respondent would not rehire her

because she had engaged in union activities. Further, the

General Counsel contends that White’s statement to Arlene

Smith similarly violated Section 8(a)(1) of the Act because

it implicitedly and coercively threatened an employee that

employees were subject to discharge if they sought

assistance of other employees or individuals who were, or

had been engaged in union activity. Respondent's

arguments in defense of the allegations are predicated

solely on the testimony of its witnesses Rayford Clanton

and Raymond White.

The testimony of Rayford Clanton has already been

rejected herein where it contradicts the testimony of Ralph

Clanton and Jeanette Pegram. I likewise reject the

testimony of White where it differs from that of Arlene

Smith. Arlene Smith’s recollection appeared reasonably

good and her delivery was convincing, and, I am

persuaded, truthful. Furthermore, her version was

reasonable for it is undisputed that White had admittedly

agreed with Jeffrey Smith that he would inquire into

Jeffrey's discharge and report to Mrs. Smith. Lastly, as

—A-21—

the General Counsel's brief points out, Mrs. Smith, as a

current employee of Respondent, was testifying at some

risk to her pecuniary interest so that her testimony was

more likely to be true. Gold Standard Enterprises, Inc., 234

NLRB 618,619(1978). I have considered, however, the

possibility of bias on the part of Mrs. Smith based upon

her relationship with Jeffrey Smith. However, I have

discounted such bias, since it appears that as a long time

employee of Respondent she had more to lose than gain by

false testimony. | White’s testimony in contrast to

Mrs. Smith was more equivocal and his recall less specific

and certain. Accordingly, I credit Mrs. Smith where her

testimony differs from that of White.

Considering the credited testimony of Ralph Clanton,

Jeanette Pegram, and Arlene Smith, I concur in the

arguments of the General Counsel that the remarks of

Rayford Clanton and White tended to be coercive and

conclude that Respondent violated Section 8(a)(1) of the

Act as alleged through such remarks.

With respect to the unlawful refusal to hire the

Pegrams and Honeycutt, the General Counsel contends

that the reimplementation of the anti-nepotism policy was

simply a pretext hit upon as a device to avoid the rehire of

union adherents in violation of Section 8(a)(3) and (1).

Thus, Respondent had not enforced the rule for many

years, and even though during much of that time Sharpe

had served as the plant personnel manager he had not

found the failure to enforce the rule to be a substantial

problem. Even when the rule was reimplemented, current

suggests that the date of reimplementation of March 1 was

—A-22—

fabricated because Sharpe’s March 1 memo refers to the

application of Scott Gentle as a motivating factor for the

action even though Gentle’s application was not submitted

until March 1. Further in this regard, the Generai Counsel

points to the fact that neither the Pegrams nor Honeycutt

were advised of the reimplementation until months after

the claimed reimplementation date. Lastly, and

specifically with respect to Charles Pegram, the General

Counsel asserts that a loom cleaner was hired on

February 28, before the rule was implemented. The rule

could not, therefore, have been a factor in the refusal to

rehire Charles Pegram according to the General counsel.

Yet, clearly it was the only factor relied upon by

Respondent in not rehiring him.

The General Counsel argues that White’s statement to

Arlene Smith clearly establishes the 8(a)(4) violation with

respect to the Pegrams and Honeycutt because it reveals

Respondent’s animosity toward Honeycutt for dragging

Respondent through the court. Such animosity may also

be inferred for Charles Pegram who likewise testified

against Respondent in a prior case.®

¢ The complaint alleged, and the General Counsel

asserted, that the refusal to rehire Jeanette Pegram was

also violative of Section 8(a)(4). However, the General

Counsel appears to have abandoned this position in her

brief. According, and since Jeanette Pegram did not

previously testify against Respondent or, insofar as the

record aon, give any information or affidavit to the

Board in relation to the prior case, and because no

authority or reasonable theory has been advanced upon

which an 8(a)(4) violation by Respondent with respect to

Jeanette Pe can be predicated, I shall recommend that

this allegation of the complaint be dismissed.

hi

Respondent’s initial defense to the refusals to rehire

Honeycutt and the Pegrams is a procedural one. In its

brief and in argument at the hearing, Respondent relied

upon Local Lodge 1424, Machinist (Bryan Mfg. Co.) v.

NLRB, 362 U.S. 411 (1960), contending that any finding of

a violation in the refusals to rehire Honeycutt and the

Pegrams is barred by the 6-month period of limitation set

forth in Section 10(b) of the Act. More specifically,

Respondent argues that the refusal to hire Honeycutt and

the Pegrams can be found to be unfair labor practices only

if the pre 10(b) decision to reimplement the anti-nepotism

policy is found to be discriminatorily motivated.

Respondent asserts that under Bryan, surpa, “where a

complaint based on that earlier event [the decision to

implement the anti-nepotism policy] is time barred, to

permit the event itself to be so used [as evidence to cloak

with illegality that which is otherwise lawful] in effect

results in reviving a legally defunct unfair labor practice.”

In making this argument, Respondent fails to distinguish

the substantial body of Board law, however, which holds

that Section 10(b) is subject to equity principles so that it

may be tolled where a Respondent has fraudulently

concealed unlawful conduct and the person adversely

affected by Respondent’s actions is not put on notice of

such action. See, e.g. Jackson Engineering Co., 265 NLRB

1688 (1982); Drukker Communications, Inc., 258 NLRB 734

(1981); K & E Bus Lines, Inc., 255 NLRB 1022 (1981);

Crown Cork & Seal Company, Inc., 255 NLRB 14 (1981);

V M Construction Co., Inc., 241 NLRB 584 (1979); Safety

Electric Corporation., 239 NLRB 40 (1978).

On the basis of the cited cases the further authority

cited in Respondent’s brief, NLRB v. McCready and Sons,

Inc., 482 F.2d 872 (6th Cir. 1973), and Bowen Products

Corporation, 113 NLRB 731 (1955), is inapposite, for in

Respondent cases, the adversely affected parties had clear

—A-24—

notice of the alleged unlawful actions more than 6 months

before the filing of the charge with the Board.

In the instant case, the 6-month period of limitations

prior to filing the charge, I conclude, runs from the time

that Honeycutt and the Pegrams were put on notice, actual

or constructive, that they were not subject to rehire. Since

the limitation period provided under Section 10(b)

constitutes an affirmative defense, the burden of

establishing the facts upon which the defense rests is upon

the Respondent. St. Mary’s Home, Inc., 258 NLRB 1024

(1981). It is quite clear that the Pegrams were not told

until October that they were not subject to rehire and the

reason they were not, i.e., the reimplementation of the

anti-nepotism rule. The reason expressed for the refusal

to rehire is less important than the communication that

they would not be hired. The fact remains that prior to

October they were not in anyway discouraged from

“updating” their applications. Respondent points to no

substantive evidence to establish actual or constructive

knowledge on the Pegr=iiis’ part outside the 10(b) period

that they would not be rehired. The fact that Respondent

may not have actively concealed its reimplementation of

the anti-nepotism policy does not constitute conveyance of

a notice to the Pegrams of their ineligibility for rehire. See

AMCAR Div., AFC Industries, Inc., 234 NLRB 1063 (1978),

enfd. as mod. 596 F.2d 1344 (8th Cir. 1979).

On the basis of this record until October, the Pegrams

were entitled to believe that they were subject to being

rehired and even that their probability of rehire was good,

in light of their prior work record with Respondent which

Respondent admits was good. Accordingly, I conclude that

the Section 10(b) period did not begin to run with respect

to the Pegrams until they were advised by Sharpe that they

would not be rehired. Since that information was given

—A-25—

them on October 12 and the initial charge herein was filed

on October 19, the charge was clearly timely under

Section 10(b).

Whether Respondent’s 10(b) defense is valid with

respect to Honeycutt’s case depends upon whether one

believes Honeycutt or Respondent’s witnesses, Sharpe and

Judy Lamberth, the assistant personnel manager at the

relevant time. Honeycutt testified it was in June that

Sharpe told her she would not be rehired. If in fact

Honeycutt received such notice any time in June, then the

charge’ with respect to Honeycutt was timely under

Section 10(b). However, Sharpe testified he told

Honeycutt that she would not be rehired and the reason in

late March or early April. Lamberth’s testimony was that

Sharpe told her in late March that he had advised

Honeycutt that she would not be rehired. A March

revelation of this information to Honeycutt would make the

charge untimely in her case. Honeycutt’s testimony on the

time frame of her meeting with Sharpe on the subject of

her rehire was unequivocal if not precise with respect to

the exact date. Notwithstanding the importance of her

testimony on this point, Respondent chose not to

extensively question her on it during cross—examination.

Moreover, her testimony generally was not substantially

contradicted. Sharpe’s testimony was no more precise

than Honeycutt’s on the date of their meeting. His

uncertainty as to the date does not preclude the possibility

that his discussion with Honeycutt tool place after

April 21, the earliest date the charge would be timely

under Section 10(b) with respect to Honeycutt’s case.

Lamberth also admitted uncertainty in her testimony

placing the meeting between Honeycutt and Sharpe in

March. Furthermore, Lamberth when pressed was unable

to convincingly explain exactly why she recalled March

was the month that Sharpe told her Honeycutt had been

—A-26—

told she would not be rehired. Under these circumstances

and because Lamberth admitted that Honeycutt continued

to “update her” application after March, and because there

is no evidence that Honeycutt did so after June, I am

convinced that Honeycutt’s testimony as to the date should

be credited. Accordingly, I conclude that Respondent has

failed to affirmatively establish that Honeycutt had notice

that Respondent definitely would not rehire her more than

6 months prior to the filing of the charge.

Turning to the merits of the complaint allegations

regarding Honeycutt and the Pegrams, it must initially be

observed that the General Counsel under the dictates of

Wright Line, a Division of Wright Line, Inc., 251 NLRB 1083

(1980), enfd. 622 F.2d 899 (ist Cir. 1981), must first

prove a prima facie case sufficient to support the inference

that protected conduct was a motivating factor in the

Respondent’s failure to rehire the three employees. Once

a prima facie case is established, the burden then shifts to

the employer to demonstrate the same action would have

taken place even in the absence of protected conduct.oo

The General Counsel’s prima facie case with respect

to Honeycutt and the Pegrams is established, I conclude,

by the statements I have found to have been made by

Rayford Clanton and Raymond White. The uncontradicted

statements of George Honeycutt to Elaine Honeycutt also

support the General Counsel’s case. Thus, the statements

of Rayford Clanton, White, and George Honeycutt

establish Respondent’s knowledge of the union activities

and inclinations of the three alleged discriminatees,

Respondent’s hostility to the three because of such activity

and inclinations, and Respondent’s determination not to

rehire the three specifically due to that hostility. The other

record evidence supporting the General Counsel’s case is

found in the uncontradicted fact that the three were not

-

rehired for positions in which they were qualified even

though they had work records which would not bar their

rehire and Respondent had vacancies in those positions.

Furthermore, Sharpe in his testimony conceded that

Respondent’s decision to reimplement the anti-nepotism

policy was prompted to some extent by a desire to avoid

the family riffs between management officials and

employee relatives occasioned by union organization

issues.

The General Counsel’s prima facie violation with

respect to the 8(a)(4) and (1) allegations concerning

Charles Pegram and Honeycutt is made out by the

resentment of Respondent demonstrated in White’s

Statement regarding Honeycutt is “having dragged”

Respondent through “court.” The resentment to Charles

Pegram for the same reason may reasonably be inferred

since he also testified against Respondent in the same

NLRB proceeding. Accordingly, I conclude that the

burden shifts to Respondent under Wright Line to

demonstrate that it would not have rehired the three

alleged discriminatees even in the absence of their

protected conduct under the Act.

There can be no doubt, as Respondent argues, that its

anti-nepotism policy had some very obvious and legitimate

purposes. Indeed, the policy was initially formulated and

instituted many years prior to the advent of the union

Organization issue in the plant. However, it had been

universally ignored for many years so _ that

reimplementation had the effect of creating a new policy.

The issue here is whether the return to the rule or policy

was prompted by Respondent’s desire to avoid rehiring of

union supporters.

There are several factors pointed to by Respondent

which tends to support its case that the return to the old

—A-28—

policy would have been made without regard to the rehire

issue of the Pegrams and Honeycutt. Thus, there is

Sharpe’s testimony not specifically contradicted, that the

request of supervisor Doug Gentle in February that his son

be hired by Respondent called Sharpe’s attention to the

nepotism problem, not the rehire applications of the

Pegrams and Honeycutt. And, contrary to the contention

of the General Counsel, Sharpe testified with

corroboration from Lamberth and personnel clerk Brenda

White that the decision to return to the old policy was

made in late February even though the memo on the

subject was not written until March 1. Moreover, there is

little evidence to contradict Sharpe’s further testimony that

prior to the reimplementation of the anti-nepotism policy,

the positions for which the Pegrams and Honeycutt were

qualified were simply filled with rehires who were better

qualified. | Accordingly, Respondent asserts that the

General Counsel has failed to establish disparate

treatment.

As further evidence of the lack of disparate treatment

of the three and in support of its argument that it has

rebutted the General Counsel’s case, Respondent points

out that all the new hires placed into the positions for

which the Pegrams and Honeycutt were qualified were

former employees rather than completely new hires. To

the extent such rehires may not have been senior to the

Pegrams and Honeycutt, Respondent asserts that the

Pegrams and Honeycutt like all the rehires who had been

off more than 6 months did not have seniority so that

seniority was not a consideration.

—A-29—

Finally, Respondent argues’ that following

reimplementation of the anti-nepotism policy, the rule has

been rigidly enforced and presented evidence that six other

applicants have been denied employment under the policy

since March 1.9

After careful consideration of the arguments and the

record I am persuaded that the preponderance of the

evidence supports the complaint allegations and

Respondent has not successfully rebutted the General

Counsel’s case. The record initially would suggest that

neither Honeycutt nor the Pegrams so distinguished

themselves in union activities as to make them likely

targets for discrimination. However, one must consider

that at least Charles Pegram and Honeycutt did distinguish

themselves in giving testimony in the prior Board

proceeding before Respondent. Further, one must also

consider that they were distinguished in their union activity

by virtue of their relationship to Respondent’s supervisors.

It was that relationship which served as a particular

embarrassment to Respondent as revealed by the

comments attributed to George Honeycutt by his daughter

to the effect that he felt himself disgraced by her union

activity. A similar embarrassment to Rayford Clanton by

the Pegrams’ union activity may be inferred from

Clanton’s remarks that the Pegrams “showed their ass” in

such activity. Thus, the record clearly establishes not only

the identification by Respondent of the Pegrams and

Honeycutt as union activists and supporters but also their

distinction as probable objects of retaliation for such

® None of these applicants, however, appear to be

rehires as opposed to new hires.

—A-30—

activism. And both George Honeycutt and Rayford

Clanton directly related to the alleged discriminatees as

already set forth herein that it was their union activism

which would preclude their reemployment.

To the extent that Respondent admits that its

reimplementation of the anti-nepotism policy was based

upon its desire to avoid internal family disputes brought

about by union organization issues, Respondent admits a

discriminatory purpose with respect to rehire situations. It

is one thing to return to the anti-nepotism policy and to

apply it to prospectively to new hires in order to avoid

family squabbles over union issues. It is quite another

thing to reimplement the policy and apply it retroactively

to avoid the rehire of former employees because they

unfortunately encountered internal family disputes

involving members of Respondent’s management simply

because they exercised their rights under the Act to engage

in union activity. In the latter case, the discrimination is

clear for it is a direct response too past union activity. A

further intent to discriminate may be inferred from the

result accomplished and the absence of evidence here to

show that rehire applicants who were related to

management but who had supported Respondent against

the Union were similarly denied reemployment after the

implementation of the anti-nepotism policy.

That there was no great urgency or underlying concern

of great moment in the rush to reapply the anti-nepotism

policy to rehires aside from retaliation for union

considerations is demonstrated by the fact that Respondent

“grandfathered” in its current employees. Every argument

Respondent advances for its decision to reinforce the

anti-nepotism policy applies with equa! force to its current

employees so as to logically dictate their terminations.

—A-31—

This includes an argument by Sharpe that a consideration

for reimplementation was the establishment of a

liberalized job bidding procedure’® in the plant in July

which increased the possibility that employee relatives of

supervision would wind up being supervised by their

relatives, a _ situation which would also _ violate

Respondent’s rules. I specifically reject Sharpe’s

testimony that this was a consideration because the

liberalized policy procedure was not initiated unti’

months after the decision to reimplement the

anti-nepotism rule. On the basis of this record, this

defense is pure afterthought.

I do not agree with the General Counsel’s argument

that the record establishes that Respondent decided to

reinstitute the anti-nepotism rule sometime later than

March 1. That argument is based on pure speculation and

goes against the clear weight of the evidence including the

uncontradicted testimony of Sharpe, Lamberth, and White

that the decision was made in the latter part of February.

Nevertheless, based upon the clear evidence of

Respondent’s clear knowledge of the union activity and

inclinations of the three discriminatees, the evidence of

specific union animus against them including comments by

management representatives already discussed which

connects the refusal to rehire with the discriminatees’,

involvement in prior union activity, Respondent’s

concession that an effort to avoid internal family

10 The change in the job bidding in effect allowed on the

basis of plant seniority rather than department seniority as

had previously been the case. At the same time,

Respondent extended recall rights to laid off employees to

one year rather than 6 months. This change was not

applied retroactively and therefore was not applicable to

Elaine Honeycutt.

—A-32—

squabbles between management and employee relatives

due to employee union activity was a consideration in

thereturn to the anti-nepotism rule, and the disparate

application of the anti-nepotism rule to refuse to to rehire

union adherents whose oniy disqualification for

employment was their relationship to management officials

while Respondent retained in its employ employees who

were relatives of management, I conclude that Respondent

has failed to successfully rebut the Genera! Counsel’s

prima facie case. In short, Respondent has not

demonstrated that Honeycutt and the Pegrams would not

have been rehired in the absence of their protected

conduct. I, therefore, find that Respondent violated

Section 8(a)(3) and (1) of the Act in refusing to rehire the

Pegrams and Honeycutt.

I further find, as alleged and argued by the General

Counsel, that Respondent violated Section 8(a)(4) and (1)

of the Act in refusing to rehire Charles Pegram and Elaine

Honeycutt. In reaching this conclusion, I rely specifically

on the remark by White reflecting Respondent’s deep

animosity toward Honeycutt, and inferentially Pegram, for

their temerity in taking Respondent to “court” in the prior

unfair labor practice proceeding.

C. Tre Discharge of Smith

1. The material facts

Jeffrey Smith began working for Respondent on a

summer job at the age of 16 but quit. He was rehired in

December 1978 and worked until he again quit in July

1981. It is undisputed that his job performance and

attendance record during that period of empioyment was

so unimpressive that when he again sought employment by

Respondent in March, it was necessary for Arlene Smith, a

—A-33—

20-year employee of Respondent, to intercede in his

behalf and persuade representatives of management,

including Sharpe, to rehire him. Jeffrey Smith was rehired

on March 14, but conceded herein that he was told upon

rehiring that Respondent had reservations about it, that he

would have to abide by all the rules and regulations on

attendance, and that he would be carefully watched.

Smith agreed that he would be a better employee.

Smith began his 90-day probationary period as a loom

cleaner but subsequently bid into a weaver position. He

missed a day of work on April 13 due to illness. He was

absent on April 16 but was given permission for the

absence"! and Mrs. Smith worked in her son’s place on

that date. On April 29, Smith was given a talk sheet for

poor job performance. Smith was again ill and absent on

May 2, and was given a talk sheet for the absence.'2 On

May 26, he left work due to illness, and on June 14 and

15, he again missed work due to illness. When Smith

reported for his next scheduled shift after June 15, he was

sent home and told to come back the next day to see

weaving superintendent Cook and department head J. C.

Waugh.

11 In spite of the permission to be off work on April 16,

Smith’s absence was not excused under the terms of

Respondent’s attendance control procedures. In short, the

absence was counted against him.

2 A “talk sheet” is a written recording of a critical

supervisory comment to an employee regarding job

performance. Under Respondent’s procedures, three talk

sheets given to an employee within their 90-day

probationary period was basis for an “automatic

discharge.” Attendance policies provided for a verbal

warning rather than a talk sheet for the first absence of a

probationary employee.

=f 34

Suspecting that he might be discharged, and upon

advice of an attorney who was representing him in a

bankruptcy proceeding to take a witness with him to the

meeting with Cook and Waugh to verify that his absence

was due to illness, Smith took Elaine Honeycutt with him

to the plant on June 16. There he met initially with Cook

in Cook's office. Cook refused to allow Honeycutt to

attend even though at the outset of the meeting Smith

explained that he had brought Honeycutt to verify that he

had been ili during his absence on June 14 and 15.

Although Cook allowed Smith to bring a tape recorder into

the meeting, he declined Smith's request to use it. Cook

began the meeting inquiring of Smith about any problems

he was having on the job, and Smith replied that he had

none adding the one he had had previously with the loom

fixers had improved. At about this point, according to

Smith's testimony, Waugh entered the meeting and the

discussion turned to Smith's absences. Smith protested

that one of those days he had been off with permission,

but White responded that he didn’t care and asked Smith

what he thought ought to be done. Smith replied that he

would do better if he was given a chance. White ended the

meeting saying that he wanted to talk the matter over with

Waugh.

Smith returned to the plant lobby and waited. White

and Waugh thereafter came and got him and took him to

the personnel office where the three met with Sharpe.

Sharpe advised Smith that his services were no longer

needed because he had been out too many days during his

probationary period. Sharpe offered some suggestions to

Smith regarding changes he might make before looking for

other employment, but Smith curtly responded with his

own suggestion that Sharpe mind his own business. The

meeting ended after an argument over whether Smith was

—A-35—

entitled to his paycheck on the spot and Sharpe’s threat to

call the police if Smith did not leave.

Still according to Smith, about a week after his

discharge, he returned to the plant to clean out his locker

and talk to White. While there he saw Waugh and asked

him if Waugh thought he had been belligerent in his

discussion with Cook and Waugh. Waugh refused to

comment saying only that Smith was trying to catch him in

the middle of things. Subsequently, Smith talked to White

and explained that his absences were occasioned by illness

and he could not understand why he had been treated as

he was particularly since his last 2-day illness had come

beyond the completion of 90-calendar day probationary

period. White's response was that his hands were tied and

there was nothing he could do, but added that if Smith had

come and talked to White before talking to Cook and

Waugh on the day of the discharge, Smith would not have

lost his job. Nevertheless, White told Smith he would look

into the matter and see if anything could be done and

would thereafter communicate with Mrs. Smith. White's

subsequent report to Arlene Smith has already been

related.

Respondent's version of the discharge of Smith was

related through Cook and Sharpe. Cook testified that

Smith was rehired for his last period of employment only

with some reluctance in view of his earlier attendance and

attitude problems. Cook testified that after each absence

during Smith's last employment he talked to Smith about

the absence, and after the May 2 absence told Smith that

he was exceeding the absentee guidelines and not living up

to his commitment on better attendance he made when

rehired. When Smith missed June 14 and 15, Cook

discussed the matter with Sharpe and it was decided that

he should be called in to talk with Cook and Waugh. Cook

we =

concedes that there was no decision to discharge Smith at

that point and that that decision was only made after the

meeting with Smith when Smith flippantly told Smith there

was no need of talking, that they should go ahead and do

whatever they wanted, that whatever Smith had to say

would make no difference, that Smith was not going back

out and work for supervisor Clint Billings, that all the

supervisors wanted was to push employees without any

concern for why employees have to be absent from work.

Further, Smith added, according to Cook, that there were

certain supervisors he could not and did not plan to work

for and complained of the treatment of specific

supervisors. Cook sent Smith back to the lobby and then

proceeded with Waugh to see Sharpe. Cook testified that

he recommended to Sharpe that in view of Smith’s attitude

to the effect he didn’t need to be corrected and also

because of his absentee record Smith should be

discharged. More particularly with respect to Smith’s

absences, Cook testified it was not the basis for the

absences which concerned him but rather the number of

absences. Sharpe agreed with the recommendation and

Smith was called in and discharged.

Sharpe’s testimony generally corroborated that of

Cook. Further, according to Sharpe, the reason for the

discharge decision which he, Waugh and Cook arrived at

was Smith's failure to live up to his commitment on rehire

and their belief that it would be putting off the inevitable if

he was not discharged at the point of leaving his

probationary period and before becoming a regular

employee. Moreover, Sharpe pointed out that Respondent

had grounds for automatically discharging Smith after his

May 2 absence. In this regard, Sharpe pointed out that

under normal procedures, Smith should have received a

talk sheet after his April 16 absence so that after his

May 2 absence, he would have had a total of three talk

fp St—

sheets rather than two. Smith’s failure to receive a talk

sheet after the April 16 absence was simply due to the

oversight of the attendance clerk according to Sharpe.

2. Arguments and conclusions

The General Counsel argues regarding Jeffrey Smith

that he was discharged simply because he antagonized and

provoked Respondent by bringing a known union adherent,

Honeycutt, to assist him on June 16. This was

demonstrated, according to the General Counsel, by

Cook’s admission that no discharge decision was made

until Smith reported to the plant on June 16, and by

White’s statement to Arlene Smith to the effect that the

presence of Honeycutt constituted an implied threat to

Respondent and had it not been for that, Jeffrey would still

have had his job. Further, the General Counsel argues

that Cook, in effect, admitted to Arlene Smith that Jeffrey

Smith had not said anything in his meeting with Cook to

demonstrate a bad attitude. Arlene Smith’s testimony in

this regard was that on June 16 after Jeffrey’s discharge,

Cook explained to her that he had intended to put him

back to work but that he had come in with a “mistrustful

attitude.” When she asked him what Jeffrey Smith had

said or told him, Cook replied, “Well, you can have a bad

attitude without saying or doing anything, it is more how

you act.” Finaily, the General Counsel contends that

Respondent’s evidence does not in fact establish that

Jeffrey Smith had a “bad attitude” on June 16 prior to the

time his discharge was announced.

8 Arlene Smith’s testimony regarding Cook’s comments

was not specifically contradicted by Cook. Accordingly,

and because I found Arlene Smith to be a credible witness,

I find Cook made the remarks attributed to him by her.

—A-38—

Based on the factors enumerated above, I find that the

General Counsel established a prima facie violation of

Section 8(a)(3) and (1) of the Act with respect to Jeffrey

Smith’s discharge. Respondent’s evidence and argument

in rebuttal must be considered next.

Respondent’s defense is based essentially upon Cook’s

testimony already set forth regarding Jeffrey Smith’s

“attitude” on June 16. Comparison of the testimony of

Jeffrey Smith and Cook shows relatively little conflict. In

short, much of what each attributed to the other is not

specifically denied on the record. Therefore, I conclude

that Jeffrey Smith did in fact display a less than totally

cooperative attitude in the meeting with Cook and Waugh,

and subsequently in the meeting with Sharpe. The critical

issue to be resolved, however, is whether Smith was

initially contrite and subsequently provoked into

belligerency by actions or remarks by Cook reflecting the

futility of attempting to placate Respondent. That he was

initially provoked was clearly the case in the meeting with

Sharpe for the evidence reflects Smith’s impudent

responses were made after Sharpe announced the

discharge. I am also persuaded this was also the case in

the earlier meeting with Cook. In reaching this conclusion,

I note that Cook admitted that Smith asked him for

another chance. It would be illogical and unreasonable for

Smith to assert that he was not going back out and work

with his supervisors and then shortly thereafter ask for a

second chance. It is more reasonable to believe that the

request for a second chance came first in a spirit of

contrition.

It is beyond dispute that Smith had a poor attendance

record, but Respondent had not seen fit to discharge him

for either that reason or his work performance prior to

June 16. Further, Smith’s last absence occurred outside

=~

his normal probationary employment. Indeed, Respondent

admits that it had no intention of discharging Smith for the

absences when Cook arranged to meet with him on

June 16. In view of this, and in light of Smith’s early

request for another chance, and since Respondent had no

significant “attitude” problem with Smith before June 16,

Cook’s recommendation that Smith be discharged, I

conclude, masks a clear ulterior motivation.

Any doubt as to that ulterior motivation is removed by

White’s remarks to Arlene Smith which unquestionably

established that it was Honeycutt’s accompaniment and

support of Jeffrey Smith and Respondent’s extreme

animosity to Honeycutt as a result of her union

involvement which prompted the discharge decision.

White put it very succinctly in stating that if someone other

than Honeycutt had accompanied Smith he would have

retained his job.

It is true, of course, that White did not participate in

the decision to discharge Smith. Under such

circumstances, one might be inclined to dismiss his

remarks on the subject as simply an opinion, albeit

coercive. See e.g Garrett Flexible Products, Inc. and Plastic

Processors, Inc., 270 NLRB No. 173 (1984). Here,

however, it must be noted that White made his remarks to

Arlene Smith only after he had investigated the matter.

Further, after the investigation, he specifically attributed to

Respondent the basis for the decision by reporting to

Arlene Smith “they were saying” that Jeffrey made an

implied threat when he brought Honeycutt with him on

June 16. That was the “attitude” problem that Respondent

found most distasteful, for White related no other

“attitude” problem to Arlene Smith. Cook himself was no

—A-40—

more specific in his subsequent conversation with Arlene

Smith regarding Jeffrey Smith’s “mistrustful attitude.”

Considering the foregoing, the elements of the General

Counsel’s prima facie case, and upon evaluation of all the

record evidence, I conclude that Respondent has failed to

demonstrate that Jeffrey Smith would have been

discharged without regard to his accompaniment on

June 16 by Honeycutt, an individual who had incurred

Respondent’s animosity due to her earlier protected

activities. Accordingly, I conclude that Smith’s discharge

constituted discrimination under the Act in violation of

Section 8(a)(3) and (1).

Conclusions of Law

1. Respondent, Uniglass Industries, Div. United

Merchants & Mfrs., is an employer engaged in commerce

within the meaning of Section 2(6) and (7) of the Act.

2. Amalgamated Clothing and Textile Workers

Union, AFL-CIO, CLC, is a labor organization within the

meaning of Section (2)(5) of the Act.

3. Respondent by it supervisor and agent Rayford

Clanton on October 12, 1983, violated Section 8(a)(1) of

the Act by informing employees that they would not have

been laid off and would have been rehired but for their

involvement in union activities.

4. Respondent by its supervisor and agent

Raymond White on June 28, 1983, violated Section 8(a)(1)

of the Act by informing employees that certain other

employees would not have been discharged had they not

sought the assistance of an employee involved in union or

other protected concerted activity.

~S

5. By refusing to rehire employee applicants Elaine

Honeycutt and Charles Pegram because of their prior

involvement in union activity and because they gave

testimony under the Act, Respondent violated

Section 8(a)(4), (3), and (1) of the Act.

6. Respondent in refusing to rehire Jeanette

Pegram because of her activities on behalf of the Union

violated Section 8(a)(3) and (1) of the Act.

7. Respondent did not violate Section 8(a)(4) of

the Act in refusing to rehire Jeanette Pegram.

8. The aforesaid violations of the Act constitute

unfair labor practices affecting commerce within the

meaning of Section 2(6) and (7) of the Act.

oie

The Remedy

Having found that Respondent has engaged in certain

unfair labor practices, I find it necessary to order it to

cease and desist therefrom and to take certain affirmative

action designed to effectuate the policies of the Act.

Having found that Respondent discriminatorily refused

to employ applicants Elaine Honeycutt, Charles Pegram,

and Jeanette Pegram as a result of its reimplementation of

its anti-nepotism rule and application of that rule to the

three, it will be recommended that Respondent be required

to offer these three individuals employment in positions

for which they are qualified and in which they would have

been employed but for the discrimination against them. It

will be further recommended that Respondent be required

to make them whole for any loss of earnings or other

benefits, computed on a quarterly basis from the date that

they would have been employed but for the discrimination

against them to the date of a proper offer of employment,

less any net interim earnings, as prescribed in F. W.

Woolworth Co., 90 NLRB 289 (1950), plus interest as

computed in Florida Steel Corporation, 231 NLRB 651

(1977).'* Because it has also been found that Jeffrey Smith

was unlawfully discharged, Respondent must be required

to offer him reinstatement and make him whole for any

loss of earnings and other benefits, computed on a

quarterly basis, from the date of discharge to the date of

proper offer of reinstatement, less any interim earnings

plus interest under the authorities cited above. Consistent

with the Board’s decision in Sterling Sugars, 261 NLRB 472

(1982), it will also be recommended that Respondent be

required to expunge from its files any reference to the

discharge of Jeffrey Smith or the refusals to rehire Elaine

enerally, /sis Plumbing & Heating Co., 138 NLRB

16 71 -721 ( 962).

~A-43—

Honeycutt, and Charles and Jeanette Pegram and notify

them in writing that this has been done and that evidence

of the unlawful discharge or refusals to rehire will not be

used for future personnel actions against them.

On the foregoing findings of fact, conclusions of law,

and on the entire record, I issue the following

recommended:'5

ORDER

Respondent, Uniglass Industries, Div. United

Merchants & Mfrs., Statesville, North Carolina, its

officers, agents, successors, and assigns shall:

1. Cease and desist from:

(a) Informing employees that they would have

been rehired but for their involvement in activities on

behalf of Amalgamated Clothing and Textile Workers

union, AFL-CIO, CLC.

(b) Informing employees that other employees

would not have been discharged if they had not sought the

assistance of employees previously involved in protected

concerted activities.

‘6 If no exceptions are filed as provided in Sec. 102.46 of

the Board’s Rules and vy weep the findings,

conclusions, and recommended Order shall, as provided in

Sec. 102.48 of the Rules, be adopted by the Board and all

objections to them shall be deemed waived for all

purposes.

—A-44—

(c) Discharging, refusing to hire, or otherwise

discriminating against any employee because of their

activity on behalf of the the above named Union or any

other labor organization or because they gave testimony

under the Act.

(d) In any like or related manner interfering

with, restraining, or coercing employees in the exercise of

the rights guaranteed them by Section 7 of the Act.

2. Take the following affirmative action necessary

to effectuate the policies of the Act:

(a) Offer Jeffrey Smith immediate and full

reinstatement to his former job, or, if that job no longer

exists, to a substantially equivalent position, without

prejudice to his seniority or other rights and privileges

previously enjoyed, and make him whole for any loss of

earnings and other benefits as a result of the

discrimination against him in the manner set forth in the

Remedy section of this Decision.

(b) Employ Charles Pegram, Jeanette Pegram,

and Elaine Honeycutt into those positions for which they

are qualified and in which they would have been employed

but for the the discrimination against them, or, if those

positions no longer exist, to substantially equivalent

positions, without prejudice to their seniority or other

rights or privileges, and make them whole for any loss of

earnings or other benefits suffered as a result of the

discrimination against them in the manner set forth in the

Remedy section of this Decision.

(c) Remove from its files any references to the

unlawful discharge of Jeffrey Smith and the unlawful

refusal to employ Charles Pegram, Jeanette Pegram, and

—A-45—

Elaine Honeycutt, and notify them in writing that this has

been done and that the discharges or refusals to employ

will not be used for future personnel actions against them.

(d) Preserve and, upon request, make

available to the Board or its agents for examination and

copying, all payroll records, social security payment

records, timecards, personnel records, and reports, and all

other records necessary to analyze the amount of backpay

due under the terms of this order.

(e) Post at its facility in Statesville, North

Carolina, copies of the attached notice marked

“Appendix.”'® Copies of the notice, on forms provided by

the Regional Director for Region II, after being signed by

Respondent’s authorized representative, shall be posted by

Respondent immediately upon receipt thereof and

maintained for 60 consecutive days in conspicuous places

including all places where notices to employees are

customarily posted. Reasonable steps shall be taken by

Respondent to ensure that the notices are not altered,

defaced, or covered by any other material.

ae

(f) Notify the Regional Director in writing

within 20 days from the date of this Order what steps

Respondent has taken to comply.

1¢ If this Order is enforced by a Judgment of a United

States Court of Appeals, the words in the notice readin

“POSTED BY ORDER OF THE NATIONAL LABO

RELATIONS BOARD” shall read “POSTED PURSUANT

TO A JUDGMENT OF THE UNITED STATES COURT

OF APPEALS ENFORCING AN ORDER OF THE

NATIONAL LABOR RELATIONS BOARD.”

—A-46—

IT IS FURTHER ORDERED that the complaint be

dismissed insofar as it alleges violations of the Act not

specifically found.

Dated, Washington, D.C. August 3, 1984.

Hutton S. Brandon

Administrative Law Judge

wo.

UNITED STATES OF AMERICA

BEFORE THE NATIONAL LABOR RELATIONS

BOARD

REGION 11

UNIGLASS INDUSTRIES, DIV. UNITED

MERCHANTS & MERS.

and Case No. 11-—CA-11089

AMALGAMATED CLOTHING AND TEXTILE

WORKERS UNION, AFL-CIO, CLC

COMPLAINT AND NOTICE OF HEARING

It having been charged by Amalgamated Clothing and

Textile Workers Union, AFL-CIO, CLC, herein called the

Union, that Uniglass Industries, Div. United Merchants &

Mfrs., herein called Respondent, has engaged in, and is

now engaging in, unfair labor practices affecting

commerce as defined in the National Labor Relations Act,

as amended, 29 U.S.C. Sec. 151, et seq., herein called the

Act, the General Counsel of the National Labor Relations

Board, herein called the Board, on behalf of the Board, by

the undersigned, hereby issues this Complaint and Notice

of Hearing, pursuant to Section 10(b) of the Act, and

Section 102.15 of the Board’s Rules and Regulations,

Series 8, as amended, and alleges as follows:

1.

The charge was filed by the Union on October 19,

1983, and was served on Respondent on October 19, 1983.

An amended charge was filed by the Union on

—A-48—

December 2, 1983, and was served on Respondent on

December 2, 1983.

2.

Respondent is now, and has been at all times material

herein, a corporation operating a plant in Statesville, North

Carolina, where it is engaged in the manufacture of

synthetic fibers.

3.

During the preceding 12 months, which period is

representative of all times material herein, Respondent

received goods and raw materials from directly outside the

State of North Carolina valued in excess of $50,000.

4.

Respondent, during the preceding 12-month period,

which period is representative of all times material herein,

manufactured, sold and shipped goods valued in excess of

$50,000 directly to points outside the State of North

Carolina.

5.

Respondent is now, and has been at all times material

herein, an employer engaged in commerce within the

meaning of Section 2(6) and (7) of the Act.

6.

The Union is a labor organization within the meaning

of Section 2(5) of the Act.

Section 2(11) of the Act:

Raymond White Plant Manager

Carl Sharpe Personnel Manager

Rayford Clanton ~ Supervisor

8.

Since on or about April 20, 1983, Respondent failed

and refused and continues to fail and refuse to rehire its

Respondent discharged and thereafter failed and

refused to reinstate its employee named below, on or

about the date set opposite his name:

Jeffrey Smith - June 16, 1983

10.

Respondent failed and refused and continues to fail

and refuse to rehire its employees named in paragraph 8

above, and discharged and failed and refused and

continues to fail and refuse to reinstate its employee

<i

named in paragraph 9 above, because said employees

joined or assisted the Union or engaged in other union

activity or concerted activities for the purpose of collective

11.

Respondent failed and refused and continues to fail

and refuse to rehire its employees named in paragraph 8

above, because said employees gave testimony at an unfair

labor practice hearing before the National Labor Relations

Board in Cases Nos. 11-CA-9076, 11-CA-9258,

11-CA-9546, 11-CA-9605, and 11-CA-9809.

12.

Respondent by the acts described above in paragraphs

8, 9, 10 and 11, and by each of said acts, has engaged in,

and is engaging in, unfair labor practices within the

meaning of Section 8(a)(1) of the Act.

13.

Respondent, by the acts described in paragraphs 8, 9,

and 10, and by each of said acts, has engaged in, and is

engaging in, unfair labor practices within the meaning of

Section 8(a)(3) of the Act.

14.

Respondent, by the acts described in paragraphs 8 and

11 above, and by each of said acts, has engaged in, and is

now engaging in, unfair labor practices within the meaning

of Section 8(a)(4) of the Act.

15.

The acts of Respondent described above constitute

unfair labor practices affecting commerce within the

—A-51—

meaning of Section 8(a)(1), (3), and (4) and Section 2(6)

and (7) of the Act.

PLEASE TAKE NOTICE that in Statesville, North

Carolina, at a time and date to be designated, a hearing

will be conducted before a duly designated Administrative

Law Judge of the National Labor Relations Board, on the

allegations set forth in the above complaint, at which time

and place you will have the right to appear in person or

otherwise and give testimony. Form NLRB-4668,

Statement of Standard Procedures in Formal Hearings

Held Before the National Labor Relations Board in Unfair

Labor Practice Cases, is attached.

You are further notified that pursuant to Section

102.20 and Section 102.21 of the Board’s Rules and

Regulations, Series 8, as amended, you shall file with the

Regional Director, acting in this matter as agent of the

National Labor Relations Board, an original and four

copies of an answer to the said complaint within 10 days

from service thereof and that unless you do so, all the

allegations in the above complaint shall be deemed to be

admitted to be true and may be so found by the Board.

Immediately upon the filing of its answer, Respondent

shall serve a copy thereof on each of the other parties.

—A-52—

Dated at Winston-Salem, North Carolina, this 2nd day

of December 1983.

/s/Hugh Frank Malone

Hugh Frank Malone

Acting Regional Director

National Labor Relations Board

Region 11

447 Federal Building

251 North Main Street

Winston-Salem, N.C. 27101

ehd~

UNITED STATES OF AMERICA

BEFORE THE NATIONAL LABOR RELATIONS

BOARD

REGION 11

UNIGLASS INDUSTRIES, DIV. UNITED

MERCHANTS & MFRS.

and Case No. 11-CA-11089

AMALGAMATED CLOTHING AND TEXTILE

WORKERS UNION, AFL-CIO, CLC

AMENDED COMPLAINT AND NOTICE OF

HEARING

It having been charged by Amalgamated Clothing and

Textile Workers Union, AFL-CIO, CLC, herein called the

Union, that Uniglass Industries, Div. United Merchants

and Mfrs., herein called Respondent, has engaged in, and

is mow engaging in, unfair labor practices affecting

commerce as defined in the National Labor Relations Act,

as amended, 29 U.S.C. Sec. 151, et seq., herein called the

Act, and a Complaint and Notice of Hearing having issued

on December 2, 1983, the General Counsel of the National

Labor Relations Board, herein called the Board, on behalf

of the Board, by the undersigned, hereby issues this

Amended Complaint and Notice of Hearing, pursuant to

Section 10(b) of the Act, and Section 102.15 and 102.17 of

the Board’s Rules and Regulations, Series 8, as amended,

and alleges as follows:

1.

The charge was filed by the Union on October 19,

1983, and was served on Respondent on October 19, 1983.

—A-54—

An amended charge ‘was filed by the Union on

December 2, 1983, and was served on Respondent on

December 2, 1983.

2.

Respondent is now, and has been at all times material

herein, a corporation operating a plant in Statesville, North

Carolina, where it is engaged in the manufacture of

synthetic fibers.

a

During the preceding 12 months, which period is

representative of all times material herein, Respondent

received goods and raw materials from directly outside the

State of North Carolina valued in excess of $50,000.

4.

Respondent, during the preceding 12-month period,

which period is representative of all times material herein,

manufactured, sold and shipped goods valued in excess of

$50,000 directly to points outside the State of North

Carolina.

5.

Respondent is now, and has been at all times material

herein, an employer engaged in commerce within the

meaning of Section 2(6) and (7) of the Act.

6.

The Union is a labor organization within the meaning

of Section 2(5) of the Act.

—A-55—

Be

At all times material herein, the following-named

persons occupied the positions set opposite their names,

and have been, and are now, agents of Respondent, acting

on its behalf, and are supervisors within the meaning of

Section 2(11) of the Act:

Raymond White - Plant Manager

Carl Sharpe - Personnel Manager

Rayford Clanton - Supervisor

8.

Since on or about April 19, 1983, and continuing to

date, Respondent, by its following-named agents and

supervisors at its Statesville, North Carolina, plant, on or

about the date set opposite their names, has interfered

with, restrained and coerced, and is interfering with,

restraining and coercing its employees in the exercise of

rights guaranteed in Section 7 of the Act, by the following

acts and conduct:

(a) Informed its employees, by telephone, that

they would not have been laid off or that they would have

been rehired if they had not engaged in union activities:

Rayford Clanton - October 12, 1983

(b) Informed its employees that certain

employees would not have been discharged if they had not

sought the assistance of other employees who had engaged

in union and/or other protected concerted activities:

Raymond White - June 28, 1983

—A-56—

9.

Since on or about April 20, 1983, Respondent failed

and refused and continues to fail and refuse to rehire its

employees named below:

Elaine Honeycutt

Charles Pegram

Jeanette Pegram

10.

Respondent discharged and thereafter failed and

refused to reinstate its employee named below, on or

about the date set opposite his name:

Jeffrey Smith - June 16, 1983

il.

Respondent failed and refused and continues to fail

and refuse to rehire its employees named in paragraph 9

above, and discharged and failed and refused and

continues to fail and refuse to reinstate its employee

named in paragraph 10 above, because said employees

joined or assisted the Union or engaged in other union

activity or concerted activities for the purpose of collective

bargaining and mutual aid and protection.

12.

Respondent failed and refused and continues to fail

and refuse to rehire its employees Elaine Honeycutt and

Charles Pegram named in paragraph 9 above, because said

employees gave testimony at an unfair labor practice

hearing before the National Labor Relations Board in

—A-57—

Cases Nos. 11-CA-9076, 11-CA-9258, 11-CA-9546,

11-CA-9605, and 11-CA-9809.

13.

Respondent by the acts described above in paragraphs

8, 9, 10, 11, and 12, and by each of said acts, has engaged

in, and is engaging in, unfair labor practices within the

meaning of Section 8(a)(1) of the Act.

14.

Respondent, by the acts described in paragraphs 9, 10,

and 11, and by each of said acts, has engaged in, and is

engaging in, unfair labor practices within the meaning of

Section 8(a)(3) of the Act.

15.

Respondent, by the acts described in paragraphs 9 and

12 above, and by each of said acts, has engaged in, and is

now engaging in, unfair labor practices within the meaning

of Section 8(a)(4) of the Act.

16.

The acts of Respondent described above constitute

unfair labor practices affecting commerce within the

meaning of Section 8(a)(1), (3), and (4) and Section 2(6)

and (7) of the Act.

PLEASE TAKE NOTICE that on the 9th day of

January 1984, at 10 a.m., EST, in the Courtroom, United

States Post Office, Statesville, North Carolina, a hearing

will be conducted before a duly designated Administrative

Law Judge of the National Labor Relations Board, on the

-—~ =

allegations set forth in the above complaint, at which time

and place you will have the right to appear in person or

otherwise and give testimony. Form NLRB—4668,

Statement of Standard Procedures in Formal Hearings

Held Before the National Labor Relations Board in Unfair

Labor Practice Cases, is attached.

You are further notified that pursuant to Section

102.20 and Section 102.21 of the Board’s Rules and

Regulations, Series 8, as amended, you shall file with the

Regional Director, acting in this matter as agent of the

National Labor Relations Board, an original and four

copies of an answer to the said complaint within 10 days

from service thereof and that unless you do so, all the

allegations in the above complaint shall be deemed to be

admitted to be true and may be so found by the Board.

Immediately upon the filing of its answer, Respondent

shall serve a copy thereof on each of the other parties.

Dated at Winston-Salem, North Carolina, this 13th

day of December 1983.

/s/Willie L. Clark, Jr.

Willie L. Clark, Jr.

Regional Director

National Labor Relations Board

Region 11

447 Federal Building

251 North Main Street

Winston-Salem, N.C. 27101

—A-59—

List of Parent Company, Subsidiaries and Affiliates:

Sudamtex de Uruguay S.A.

S.C.I. de La Grande Rocade

Polimeros Uruguayos S.A.

Valchem (Australia) Pty. Limited

S.C.I. Barbusse Bobigny

Telmartex C.A.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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