NLRB v. Peerless Products, Inc.

• Decision Date: 17 March 1959
• Docket Number: No. 12444.,12444.
• Citation: 264 F.2d 769
• Parties: NATIONAL LABOR RELATIONS BOARD, Petitioner, v. PEERLESS PRODUCTS, INC., Respondent.
• Court: U.S. Court of Appeals — Seventh Circuit

264 F.2d 769 (1959)

NATIONAL LABOR RELATIONS BOARD, Petitioner, v. PEERLESS PRODUCTS, INC., Respondent.

No. 12444.

United States Court of Appeals Seventh Circuit.

March 17, 1959.

Thomas J. McDermott, Associate Gen. Counsel, Betty Jane Southard, Jerome D. Fenton, Gen. Counsel, Marcel Mallet-Prevost, Asst. Gen. Counsel, Fannie M. Boyls, Attys., National Labor Relations Board, Washington, D. C., for petitioner.

Simon Herr, Chicago, Ill., for respondent.

Before DUFFY, Chief Judge, HASTINGS and KNOCH, Circuit Judges.

HASTINGS, Circuit Judge.

Upon the petition of the National Labor Relations Board (the Board) we are asked for enforcement of its order of May 15, 1958, issued against respondent, Peerless Products, Inc. (the Company),¹ following the usual proceedings under Section 10 of the National Labor Relations Act (the Act), as amended, 61 Stat. 136, 29 U.S.C.A. § 151 et seq. The Board's decision and order are reported at 120 NLRB No. 136.

In affirming the determination of the Trial Examiner the Board found that the Company violated Section 8(a) (1) of the Act by interfering with the organizational affairs of its employees through interrogation, threats and withdrawal of economic benefits because of its employees' activities on behalf of the Allied Crafts Division, United Textile Workers of America, AFL-CIO (the Union). The Board further found that the Company violated Section 8(a)(3) and (1) of the Act by discriminatorily discharging an employee, Mary Britt, in retaliation for her union activities, including her attendance at a Board hearing, and by refusing to reinstate employees, Mary Benson and Verbie Lee Nichols,² following an unfair labor practice strike protesting the discharge of Britt.

The Company employed about 20 persons, mostly women, and was operated by Marshall Maltz, as president, and his father, Benjamin Maltz, as general manager. Early in February, 1957, employee Britt was consulted by a Union representative about organizing her fellow employees and during the following week signed up the first five members, including Benson and Nichols. Union meetings were held in February and early March, and Britt was selected as chairman of the organizing committee which also included Nichols. It was agreed that if any employee were discharged or laid off because of union activities all would walk out. After fifteen of the employees had signed union cards, the Union filed a petition for certification with the Board, and on March 4, 1957 the Company was notified of the Union's representation claim. The next day the Company sent a letter to the Board's Regional Director challenging the Union's representation claim. The representation hearing was held on March 19 and was attended by the two Maltzes and most of the employees.

Britt was discharged on March 25 (under circumstances later set out), and there was a general protest strike by the employees from March 25 to March 27 when the Union made an unconditional offer on behalf of all employees to return to work. In the meantime, fearing a prolonged strike, Maltz had canceled orders and instructed his salesmen not to accept new ones. As the strikers came back to work, Maltz told various ones he would call them back as they were needed.

Between March 28 and April 23, the Company reinstated all of the strikers except Benson and Nichols. The Company scheduled overtime work after May 5; and, on July 2, began hiring new employees, without recalling Benson and Nichols. The representation election was held on June 3, 1958, and the employees, at that time, voted 15 to 1 against the Union. Hearings were held by the Trial Examiner on the unfair labor practice charges on September 24, 25 and 30, 1957; and, on September 30, the Company declared its willingness to reinstate Benson and Nichols. It was agreed that back pay for them would terminate as of that date and that it would not be necessary to enter an order that the Company reinstate them.

After being notified on March 4 of the representation petition, both the president and general manager of the Company, at various times, interrogated the employees about the progress of the union campaign. Most of the employees denied having signed Union cards. During the course of this interrogation the employees were told they could have a union if they wanted one, and there was substantial evidence indicating that the one isolated statement found to have been a threat was in truth uttered in jest. The Trial Examiner found that Benjamin Maltz was "a frank, straightforward, and honest witness" and there is nothing to indicate that Marshall Maltz was otherwise.

The evidence shows that both President Maltz and Manager Maltz made small personal loans from time to time through the years to many employees, repayment being made in...