Sanford Finishing Corp., 366 (1969)

National Labor Relations Board

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Sanford Finishing Corp., 366 (1969)

Sanford Finishing Corporation and Textile Workers Union of America, AFL-CIO. Cases 11-CA-3620 and 11-RC-2718

April 16, 1969 DECISION AND ORDER

BY MEMBERS FANNING, BROWN, AND JENKINS On December 27, 1968, Trial Examiner Harry H.

Kuskin issued his Decision in the above-entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices within the meaning of the National Labor Relations Act, as amended, and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. The Trial Examiner also found that the Respondent had not engaged in certain other unfair labor practices alleged in the complaint and recommended they be dismissed. He further recommended that the representation election held on June 27, 1968, in Case 11-RC-2718, be set aside and a new election held. Thereafter, the Respondent filed exceptions to the Trial Examiner's Decision and a supporting brief.

Pursuant to the provisions of Section 3(b) of the Act, the National Labor Relations Board has delegated its powers in connection with these cases to a three-member panel.

The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions and brief, and the entire record in this case, and hereby adopts the findings, -conclusions, and recommendations of the Trial Examiner with the following modifications.

We agree with the Trial Examiner that the Respondent violated Section 8(a)(1) by, accelerating training program wage increases, promulgating a no-solicitation rule for the discriminatory reasons, restricting employee movement in the plant to prevent union activities, interrogating employees about their union activities and soliciting employees to report on employees' union activities and sympathies. We also find that the Respondent's conduct warrants setting aside the election and the direction of a new election.

However, for the reasons noted hereinafter, we find, contrary to the Trial Examiner, that the announcement on June 7, 1968 (and subsequent implementation) of a general wage increase and an increase in hospitalization insurance coverage neither violated Section 8(a)(1) nor interfered with the election.

With respect to the increase in hospitalization insurance benefits, the record discloses that in May 1967 and November 1967, Profio, the plant manager, had requested the group insurance carrier,

Hospital Care Association of Durham, North Carolina, to 'rework' insurance coverage. On January 6, 1968, Profio wrote to the home office of the Company, requesting the Company to review the insurance benefits and enclosing a letter from the insurance carrier, because the daily rate for hospitals in Sanford had gone up to $14. In his letter he recommended that the coverage be increased from $8 to $14. He further proposed that the hospital insurance increase should become effective with the next regular wage increase 'which will be sometime in June.' With respect to wage increases, the record discloses that in the past several years the Company has granted two wage increases each year. The last wage increase was granted January 1, 1968, and was an increase of 10 cents ari hour. On April 19, the Respondent posted on the bulletin board a notice signed by the plant manager stating a general wage increase would be put into effect in June following general policies of the past. The specific wage increase and its effective date were announced as previously noted on June 7.

Accordingly, as it appears that steps were initiated in January 1968, to increase insurance benefits along with wages in June 1968, and that such action was initiated prior to the advent of the union organizational activities, we conclude that such action did not violate Section 8(a)(1) nor was it motivated by an intent to interfere with the election....

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