Opinion ID: 355175
Heading Depth: 3
Heading Rank: 1

Heading: The Alleged 8(a)(1) Violation

Text: 41 The complaint alleges that Respondent withheld implementation of a new wage plan because its employees joined or assisted the Union. The General Counsel relies upon the principle that An employer's legal duty in deciding whether to grant benefits while a representation case is pending is to determine that question precisely as he would if the Union were not in the picture. 3 Therefore, according to the General Counsel, since Respondent had decided to grant a wage increase before it received notice of the Union petition for an election, its decision not to implement such an increase because of the presence of the Union was a violation of Section 8(a)(1). 42 3. McCormick Longmeadow Stone Co., Inc., 158 NLRB 1237, and other cited cases. 43 Respondent contends that it had not reached a decision to implement a specific wage plan at the time it decided to postpone any possible increases until after the election. It asserts that the General Counsel has failed to prove that its motivation for withholding the wage increase was to influence its employees to vote against the Union, and affirmatively argues that the employees were fully aware of the reason for withholding any contemplated wage increases. 44 The contentions of the parties are illustrative of the potential confusion in the rules that can make it illegal to withhold a wage increase and at the same time make it illegal to grant that same increase. An employer who has been contemplating or planning a wage increase, and subsequently learns of a union petition for an election among his employees, is placed between the proverbial devil and the deep blue sea. He can grant the wage increase and face the risk of unfair labor practice charges and/or objections for trying to buy off his employees, or he can withhold the increase and face similar charges and/or objections for trying to influence the vote of his employees in the election. The Supreme Court summarized the problem in the following words: 45 The danger inherent in well-timed increases in benefits is the suggestion of a fist inside the velvet glove. Employees are not likely to miss the inference that the source of benefits now conferred is also the source from which future benefits must flow and which may dry up if it is not obliged, N.L.R.B. v. Exchange Parts Co., 375 U.S. 405, 409, 84 S.Ct. 457, 460, 11 L.Ed.2d 435 (1964). 46 The basic approach to this problem by the Board in numerous cases follows the reasoning of Gates Rubber Co., 182 NLRB 95, which utilizes the simple standard that the employer must proceed as if the Union were not on the scene. 47 The Board in Sugardale Foods, Inc., 221 NLRB 1228 (1975) focused upon the motivation of the employer who withheld wage increases to several employees who became eligible for increases just before the election. It had been the Employer's consistent past practice to consider employees for wage increases on the anniversary dates of their employment. The Board reversed the Regional Director's decision to set aside the election, stating that: 48 We find no evidence that the employer sought to undermine the position of the Union or to influence the votes of employees in the impending election by deferring the increases, or that the employees believed such to be the case. 49 Similarly, the Board in Heckethorn Mfg. Co., 208 NLRB 302, 306, aff'd. 504 F.2d 425 (C.A. 6, 1974), found no violation where there was no indication that the company intended the withholding of the wage increase to have an effect upon the outcome of the election, or that the employees believed such to have been the case. See also Uarco, Inc., 169 NLRB 1153 (1968). 50 In the instant case, although the wage survey had been completed in the Fort Smith plant, and Plant Manager Borden had formulated his own recommendations to present to Finley on August 18, no decision had been reached as to the amount of a wage increase, if any, nor the exact date for such an increase, by the individual who had the ultimate authority to do so Finley. Although Finley went to Fort Smith on August 18 with the knowledge of the union petition, he took no action regarding formulating an increase, but rather reached a determination that to implement any wage increase prior to the election would be too hazardous a course under the circumstances. This decision was reached in good faith after consideration of several factors, such as the union handbill, the Board notice and the previous unfair labor practice charges filed by the Union. 51 The fact that the Respondent had budgeted an anticipated wage increase in June 1976 for the last part of 1976 is also immaterial as far as proving that Respondent had formulated a definite wage plan as of the time it announced that it would put off any possible increases. The 10 percent figure was merely for the purpose of establishing projected budget goals and was not a definite decision to grant a certain wage increase as of a particular time. 52 Although it was made clear to the employees by the Respondent's communications to them that it was the filing of the petition that caused the moratorium on any wage adjustment, it cannot be said that the deferral was coercive in nature or that the Respondent was trying to undermine the Union, or attempting to influence the votes of the employees, particularly when it referred to other unfair labor practice charges against it and expressed its concern that additional charges would be filed were it to make the wage adjustments before the election. 53 Under the facts and circumstances of this case, I find that the withholding of the wage adjustment did not violate Section 8(a)(1) of the Act.B. The Objection to Conduct Affecting the Results of the Election 54 For the reasons expressed above, and because the Respondent's conduct did not create an atmosphere which interfered with the employees' exercise of a free choice in the election, I shall recommend the objection be dismissed and that the Board issue a certification of results of the election.