Vogler, Jr. v. McCarty, Inc. Reply Brief on Behalf of Appellant
Public Court Documents
August 30, 1971

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Brief Collection, LDF Court Filings. Vogler, Jr. v. McCarty, Inc. Reply Brief on Behalf of Appellant, 1971. 93309816-c89a-ee11-be36-6045bdeb8873. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/c7dc58c2-0b4d-42c3-83f1-ca8300e5126b/vogler-jr-v-mccarty-inc-reply-brief-on-behalf-of-appellant. Accessed May 12, 2025.
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IN THE United States Court of Appeals FOR THE FIFTH CIRCUIT No. 71-1458 PAUL VOGLER, ei aL Plaintiffs, versus McCARTY, INC., ei al. Defendants-Appellants, LOCAL 53 OF THE INTERNATIONAL ASSOCIATION OF HEAT AND FROST INSULATORS AND ASBESTOS WORKERS, Defendant-Appellee. UNITED STATES OF AMERICA, Plaintiff, versus LOCAL 53 OF THE INTERNATIONAL ASSOCIATION OF HEAT AND FROST INSULATORS AND ASBESTOS WORKERS, Defendant-Appellee, MASTER INSULATOR'S ASSOCIATION OF NEW ORLEANS AND BATON ROUGE, LA, Defendant-Appellant. Appeal from the United States District Court for the Eastern District of Louisiana REPLY BRIEF RY AND ON BEHALF OF APPELLANT-MASTER INSULATOR'S ASSOCIATION OF NEW ORLEANS AND BATON ROUGE, LOUISIANA Counsel: MICHAEL J. MOLONY, JR., (TC) and HORACE A. THOMPSON, III of Jones, Walker, Waechier, Poitevent, Carrere and Denegre 225 Baronne Street New Orleans, Louisiana 70112 TABLE OF CONTENTS Page I. INTRODUCTION ............................................ 2 II. CONTRARY TO THE UNITED STATES’ CONTENTION, A LOGICAL CONSE QUENCE OF THE COURT-ORDER SENIORITY SYSTEM IS THAT EXIST ING MEMBERS OF LOCAL 53 AND TRAVELERS WILL BE FAVORED TO THE DETRIMENT OF NEWLY AD MITTED MEMBERS, AND THIS IS IN FACT THE ADMITTED OBJECTIVE OF THE SYSTEM ........................................ 4 III. THE EFFECTS FLOWING FROM THE FAVORITISM OF SENIOR WHITE MECHANICS DO NOT FURTHER THE ENDS OF TITLE VII AND IN FACT IN CERTAIN RESPECTS ARE ADVERSE TO THE PURPOSES OF THE ACT ............ 5 IV. CONCLUSION ............................................... 10 TABLE OF AUTHORITIES DECISIONS OF THE COURTS United Steel Workers v. NLRB (Roanoke Iron and Bridge Works, 390 F.2d 846 (D. C. Cir. 1967) ................................................................. 10-11 DECISIONS OF THE NLRB International Association of Heat and Frost In sulator’s and Asbestos Workers Local 53 (Mc Carty and Armstrong) 185 NLRB No. 8 9 .........8, 9 IN THE UNITED STATES COURT OE APPEALS FOR THE FIFTH CIRCUIT No. 71-1458 PAUL VOGLER, et al, Plaintiffs, versus McCARTY, INC., et al, Defendants-Appellants, LOCAL 53 OF THE INTERNATIONAL ASSOCIATION OF HEAT AND FROST INSULATORS AND ASBESTOS WORKERS, Defendant-Appellee, UNITED STATES OF AMERICA, Plaintiff, versus LOCAL 53 OF THE INTERNATIONAL ASSOCIATION OF HEAT AND FROST INSULATORS AND ASBESTOS WORKERS, Defendant-Appellee, MASTER INSULATOR’S ASSOCIATION OF NEW ORLEANS AND BATON ROUGE, LA., Defendant-Appellant. 2 Appeal from the United States District Court for the Eastern District of Louisiana REPLY BRIEF BY AND ON BEHALF OF APPEL LANT-MASTER INSULATOR’S ASSOCIATION OF NEW ORLEANS AND BATON ROUGE, LOUISIANA STATEMENT OF THE CASE I. Introduction The Master Insulator’s Association previously filed a brief in the instant case to present its position on the questions of first impression here presented: whether the equity jurisdiction of the District Court pursuant to Sections 708(g) and 707(a) of Title VII of the Civil Rights Act of 1984 is limited to exercises nec essary to accomplish specific statutory objectives, and whether the District Court should, in the exercise of sound discretion, defer to voluntary collective bargain ing over terms and conditions of employment which do not themselves alleviate the present effects of past discrimination. The briefs subsequently submitted by Local 53 of the International Association of Heat and Frost Insulators and Asbestos Workers [hereinafter referred to as Union or Local 53], and particulary by the United States do not deny that the core issue here involved is a definition of the limits of the equity juris diction of a District Court monitoring an order ren dered pursuant to Title VII. However, both the brief of Local 53 and of the United States relate extensively their position that a seniority provision is a desirable 3 feature of a collective bargaining agreement and is in certain ways superior to other alternative systems. Local 53 argues that a seniority system has “an hon orable place in the history of labor relations,” [Brief of Local 53, p. 14], is sanctioned as legal by the Nation al Labor Relations Act [Brief of Local 53, p. 16], pro vides gainful employment for the most senior employ ees [Brief of Local 53, p. 17], and provides job security for older employees [Brief of Local 53, p. 17]. The Unit ed States argues that the Association’s opposition to the seniority system is unnecessary, since they are protected from undesirable employees by an “informal black ball procedure.” [Brief of United States, p. 21]. While each of these arguments could be met with countervailing considerations showing how a preferen tial referral system based on seniority is inimical to the interests of the employer, the younger employee, and the industry as a whole, the Association will not engage in such a fruitless debate. The determination of whether a seniority system is preferable from one point of view or another to a merit system, or to a completely objective referral system, based on the principle of first in-first out, is to be made at the collec tive bargaining table. These arguments are not appro priate before a court or administrative body unless the provision in some way accomplishes the ends sought by Title YII or is otherwise regulated by law. The Association’s entire brief on appeal is directed to this last point and value judgments as to the relative desirability of one provision of a collective1 bargaining agreement over another are irrelevant and unrespon sive to the core issue raised by the Association as Ap pellant. 4 Other portions of the briefs of the United States and of Local 53 seek to counter specific premises of the Association’s brief and the Association’s reply will be addressed to demonstrating the error of these counter arguments. II. Contrary To The United States’ Contention, A Logical Consequence Of The Court-Ordered Seniority System Is That Existing Members Of Local S3 And Travelers Will Be Favored To The Detriment Of Newly Admitted Members, And This Is In Fact The Admitted Objective Of The System. The Association’s previous brief asserted that the system as it operates after the January 22, 1971 order favors existing members of Local 53 and travelers to the detriment of newly-admitted members and non members in terms of access to job opportunities. The United States sought in its brief to cloud this issue by denying the existence of facts in the record estab lishing this contention. [Brief of United States, p. 15]. This attack initially fails to recognize that the As sociation’s statement was based on the logical conse- sequences of the court order. We submit that it can certainly be deduced that seniority systems will favor the most senior to the detriment of the most junior. But the thrust of the United States’ argument is in consistent also with its own a s s u m p t i o n s and statements, and with those of the Union. The United States described a dilemma “where it became a mat ter of choosing between relatively stable employment 5 for a small number of people, or relatively little em ployment for large numbers of people . . . [Brief of United States, p. 11]. It noted, “The preference would become significant only at such time as the num ber of men seeking referrals for employment substan tially exceeded the number of men needed to meet the manpower requirements of insulation contractors who rely on the Local to provide them with asbestos workers.” The United States and the Union agreed with the Association that such a situation currently exists. [Brief of United States, p. 10] [Brief of Local 53, p. 6]. The United States inconsistently argues on the one hand that the record does not establish that newly-ad mitted members and non-members will actually be harmed. On the other hand, it argues in support of the order that the situation had developed where it became necessary to deprive newly-admitted mem bers and non-members of jobs in order to provide steady employment for senior union members. The government’s query as to the number and identity of new members and non-members who will be harmed seems to be a transparent attempt to distract the Court from the core issue, i.e., whether the District Court is empowered to make the value judgment necessary to determine which group of white workers will be al lotted the reduced number of job opportunities avail able. III. III. The Effects Flowing From The Favori tism Of Senior White Mechanics Do Not Further The Ends Of Title VII And In Fact In Certain Respects Are Adverse To The Purposes Of The Act. 6 The Association’s previous brief indicated certain consequences flowing from the January 22, 1971 order which are adverse to the objectives of Title VII of the Civil Rights Act of 1964. The United States offered sev eral counter-arguments in its brief which, the Associa tion submits, are either unfounded or substantially er roneous. The Association’s first point was that new mechanics or permit workers seeking gainful employment at the insulating trade would be virtually excluded from the trade, or at least would be so limited in employment opportunities that they would be discouraged from re maining in the trade. In response to this point, the United States’ brief implicitly conceded that new work ers would be shut out of the trade during the currently depressed economic situation in the insulation indus try, but countered that these consequences would dis appear “at such times as the defendant contractors and other contractors who employ through the Local are utilizing the experienced manpower which is a- vailable.” In effect, the government’s response to the first sug gested consequence is that this objectionable result of the seniority system will disappear as soon as their stated justification for the seniority system disap pears. But more than that, the argument dismisses the immediate consequences of reduced or foreclosed employment opportunities for young insulators as be ing inconsequential, presumably because the conse quences may be only temporary. Not only does the argument viewed in this light reveal an unproven as sumption, i.e., that the economic situation will cer 7 tainly improve; but even if the system were only tem porarily closed to younger workers, the results would be permanent. Jobs and wages lost by young workers in order to insure steadier employment for the older workers could never be regained and the loss to the industry measured in terms of young workers forever discouraged from pursuing the trade would be long- lasting. The second undesirable consequence of the seniority system enumerated in the Associations’ brief was that Local 53’s past nepotistic favoritism of relatives to the exclusion of others seeking to enter the trade would be perpetuated through the “closed shop” created by the seniority system. This point was answered in the United States’ brief with the statement: “Under the system as modified by the January 22 order, new men can get experience at the trade as either mechanics or improvers — but they will have to wait until the experienced men are employed.’’’ [Emphasis Added.] [Brief of United States, p. 16], The United States’ own statement makes the point which the Association seeks to establish, that while job opportunities remain scarce, the new mechanics who previously had been denied membership in the Union because of the Local’s nepotistic practices will be denied employment opportunities in order to bene fit the past recipients of nepotistic favoritism. The United States’ contention that opening the rolls to non-relatives has in some way alleviated the effects of past nepotistic favoritism is, we submit, wholly fal lacious. The contention rests precariously upon the un 8 supported assumption that past nepotism resulted only in deprivation of membership, but not in reduced refer ral opportunities, This assumption is factually false. The National Labor Relations Board, found in Case No. 15-CB-775, International Association of Heat and Frost Insulator’s and Asbestos Workers Local 53 (McCarty and Armstrong) that during the same period of time covered by the finding of the District Court below that Local 53 had been depriving non-relatives of member ship status, the same Local had also been illegally granting preference in referral for overtime work to Union members over non-members. 185 NLRB No. 89. [Copy annexed hereto]. The Association’s third point was that although the seniority preferences among white mechanics would not immediately hinder the job opportunities of black mechanics, eventually, when the referral lists are mer ged, black mechanics may have to compete in terms of seniority with senior white mechanics who receive prejudicially inflated seniority through the preferen tial seniority system. This third point was answered by the United States with assurances that the United States and the plaintiffs would not “agree to an order ending the one-for-one referral system which would operate substantially or significantly to reduce the job opportunities available to blacks.” [Brief of United States, p. 17], The plaintiffs apparently do not feel so secure as the United States, since in their brief they agree with the Association that “provision should be made that additional employment opportunities ac corded to senior white mechanics are not later used, when referral lists are merged, to accord them advan tages over Black employees.” [Brief of Plaintiff, p. 9 3], The plaintiffs recognize, as did the Association, that the zeal of the Local and the United States for a seniori ty system of preferential referral for senior white me chanics could operate to the substantial harm of the Black workers when ultimately the referral lists are merged, which the United States conceded will occur, “hopefully in the not too distant future.” [Brief of Unit ed States, p. 17]. However, the United States has of fered no concrete plan by which senior white mechan ics’ artificially inflated seniority gained during the op eration of the Court Order could at a later time be neutralized. The Association submits that the problem of artificially inflated seniority for the most senior white mechanics is inherent in any seniority system for white mechanics ordered by the Court. The fourth and final undesirable consequence point ed out by the Associations’ brief was that a seniority provision would restrict referral opportunities for Mex ican-Americans in Local 53. The United States’ brief argues that this anticipated consequence is “based on a misreading of the May 31, 1967 order of the District Court.” It interprets that the District Court found that Mexican-Americans and members of other minority groups other than blacks were denied membership in the Local, but not referral opportunities. This is a dis tinction without a difference, since Mexican-Ameri- cans deprived of membership status prior to the order of the National Labor Relations Board in Case No. 15- CB-775 were presumably deprived also through denied overtime referrals of the opportunity to accumulate seniority hours. See: International Association of Heat and Frost Insulator’s and Asbestos Workers Local 53 (McCarty and Armstrong), 185 NLRB No. 89 [Copy annexed.] 10 IV. CONCLUSION The entire draft of the brief of the United States seems to be directed toward the dangerous conclusion that the Justice Department and the courts should have the opportunity pursuant to the equity jurisdiction of the court under Title VII of the Civil Rights Act to review each and every aspect of the collective bargain ing relationship between a union and employer to de termine whether each provision is “fair and equita ble.” Thus the United States would argue that if the employer could not produce legitimate and substantial business justifications for resisting the Union’s de mand for a particular proposal, albeit that the proposal is not necessary to accomplish the specific objectives of Title VII of the Civil Rights Act, a court may impose its judgment of what is a “just” provision. This unpre cedented and startling proposition should not be per mitted to erode the process of free and voluntary col lective bargaining. If this Court allows such an action to remain an accomplished fact, it would not be incon ceivable to foresee the Justice Department and the courts determining pursuant to such overly-broad equi ty powers that union security clauses and dues check off clauses are necessary for “the efficient operation of the court order.” As Mr. Chief Justice Burger (then Judge Burger) stated with respect to a proposal simi lar in its implications: “. . . . [Oj nce such a rule is made, it is clear that ... the courts are immersed in the sub stantive terms of the collective bargaining con tract. This is not their role and the Supreme Court has been quite clear on this point.” Unit 11 ed Steel Workers v. NLRB (Roanoke Iron and Bridge Works, Inc.) 390 F. 2d 846, 856 (D. C. Cir. 1967) (Dissenting Opinion; footnotes omit ted.) For the above-stated reasons, as well as those set forth in the Association’s prior brief, the decision of the Court below should be reversed. Respectfully submitted, MICHAEL J. MOLONY, JR. (T.C.) and HORACE A. THOMPSON, III of Jones, Walker, Waechter, Poitevent, Carrere and Denegre 28th Floor — 225 Raronne Street New Orleans, Louisiana 70112 Counsel for Defendant . MASTER INSULATOR’S ASSOCIATION CERTIFICATE I certify that a copy of the foregoing Reply Brief of the Master Insulators Association was mailed, post age prepaid, certified mail, return receipt requested, this — day of August, 1971, to Counsel of record for opposing parties, in accordance with Rules 31(a) and (b) of the Federal Rules of Appellate Procedure. MICHAEL J. MOLONY, JR. la APPENDIX 185 NLRB No. 89 D-4010 New Orleans, La. UNITED STATES OF AMERICA BEFORE THE NATIONAL LABOR RELATIONS BOARD INTERNATIONAL ASSOCIATION OF HEAT AND FROST INSULATORS AND ASBESTOS WORKERS LOCAL No. 53 (McCarty and Armstrong) and Case 15-CB-775 PAUL A. VOGLER, JR., An Individual DECISION AND ORDER On December 18, 1968, Trial Examiner, Marion C. Ladwig issued his Decision in the above-entitled pro ceeding, 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. He further found that the Respondent had not engaged in certain other unfair labor practices alleged in the complaint and recommended that the complaint be dis missed insofar as it alleged any violations of the Act not specifically found. Thereafter, the General Counsel filed exceptions to the Trial Examiner’s Decision and a supporting brief; the Respondent filed a “Motion to 2a Recuse and Disqualify the Trial Examiner,” excep tions to the Trial Examiner’s Decision, and a support ing brief; and the Charging Party filed a brief in op position to the Respondent’s exceptions, and a motion to reopen the case and admit new evidence. The Board has reviewed the rulings of the Trial Ex aminer made at the hearing and finds that no preju dicial error was committed.1 The rulings are hereby affirmed.* 2 The Board has considered the Trial Exam iner’s Decision, the exceptions and briefs, and the en tire record in this case, and hereby adopts the findings, conclusions, and recommendations of the Trial Ex aminer, as modified below. For the reasons stated below, we find merit in the following contentions by the General Counsel in his exceptions. Fullen should be found to be a discrimina- tee and should be ordered to be made whole; from January 5 until August 1966, the Union refused to refer Vogler because of his nonunion status and the Trial Examiner should have passed on such allegation; as part of the remedy the Trial Examiner should have 'We deny as lacking in merit Respondent’s Motion to Disqualify the Trial Examiner on the ground that he is prejudiced against any individual or organization which allegedly discriminated on a racial or color basis and that he therefore erred in his credibility resolutions and weighing the evidence. It is establish ed Board policy not to overrule a Trial Examiner’s credibility findings, unless, as is not the case here, a clear preponderance of all relevant evidence convinces us that they are incorrect. Standard Dry Wall Products, Inc., 91 NLRB 544, enfd. 188 F.2d 362 (C.A. 3). 2We deny the motion of the Charging Party to admit additional evidence. Even assuming as true the factual matters raised in his motion, we find that they would not affect the determina tions herein made. 3a required Respondent to operate a non-discriminatory hiring hall if it operates any; such remedy should also include provisions requiring Respondent to make the discriminatee permit men whole for being prevented by discrimination from having sufficient hours to qual ify for the welfare fund; the Trial Examiner should have ordered that records be kept of the hiring hall and pension funds with such records being available to the Board for inspection; and the Order and Notice should be amended to prohibit the Respondent from causing the Employer to hire union members because a non-member is on the job if such hire results in the displacement of the nonmember. The Trial Examiner found that the Union illegally induced McCarty to transfer permit men Vogler, Kerr, Horace D. Brown, and Juan B. Galaviz from an over time job because of their lack of union membership and in order to give preference to union members in the assignment of overtime, but made no findings as to Brooks Fullen, Jr., on the ground that the General Counsel failed to name him as one of the discrimina te es. Section 15 of the complaint alleges that from on or about January 2, 1966, to date, and at all times ma terial herein, Respondent attempted to cause McCarty to deny overtime employment to employees Juan Gala viz, Vogler, and others (emphasis supplied) because they were not members of Respondent and/or to pro vide additional overtime opportunities for members of Respondent. Accordingly, and as the record shows that Fullen was treated in exactly the same manner as Vogler, Kerr, Brown, and Galaviz, who were includ ed in the Trial Examiner’s findings, we hereby include Fullen in this finding. 4a On the ground that the remedy for such violation would be cumulative, the Trial Examiner found it un necessary to pass on the allegation that from. January 5, 1966, until about August 1966, the Union refused to refer Vogler for employment because of this nonunion status. We disagree with the Trial Examiner and make the following findings: The record shows that although Vogler remained a- vailable for referral after he was laid off from the International Trade Mart job and, in fact, unsuccess fully solicited referrals from various employers, Busi ness Agent O’Brien admitted that he refused to refer Vogler at least until sometime in March 1966. This oc curred even though it was stipulated that other refer rals were made during this period from January 1, 1966, through March 3, the date Vogler went to work, and also from July 13, 1966, through August 1966. It is clear that Vogler had notified O’Brien of his avail ability. In March 1966, O’Brien discovered that Vogler was working at Eagle Asbestos Company, where he had been employed on his own and without O’Brien’s knowledge. Vogler worked on the Eagle job until June 9, when he and others were laid off in anticipation of a possible strike. About August 17 or 18, Eagle of fered Vogler a job again, but about August 22 told him that under a new policy he would have to obtain a permit from the Union before he could go to work. Vogler then reported to O’Brien that he had been of fered a job by Eagle but that he had to obtain a permit from O’Brien. O’Brien refused to send Vogler to the Eagle job but instead referred him to Union Carbide, to which Vogler reported. As it is clear that a card member of the Union could obtain his own job without O’Brien’s approval, it was discriminatory for O’Brien to refuse to send nonmember Vogler to the job Vogler had obtained on his own. Moreover, the referral to an employer other than Eagle is clearly a discrimina tory referral of Vogler. In these circumstances, we find that Respondent by refusing to refer Vogler for jobs from January 5 until sometime in March 1966, and by refusing to allow Vogler to obtain his own job in August 1966 while a card member of the Union was permitted to obtain his own job, Respondent violated Section 8(b) (2) and (1) A) of the Act. Conclusions of Law In accordance with our above findings of violations of the Act not found by the Trial Examiner, we hereby amend his Conclusions of Law as follows: Amended Conclusions of Law 1. By causing McCarty, Armstrong, and other em ployer-members of the Association, through a discrim inatory oral understanding, arrangement, and prac tice, to give priority in employment on the basis of union membership, in violation of Section 8(a) (3) of the Act, the Union has engaged in unfair labor prac tices affecting commerce within the meaning of Sec tion 8(b) (2) and (1) (A) and Section 2(6) and (7) of the Act. 2. By causing Armstrong discriminatorily to deny overtime to Bill Wonzer and Olan Wonzer on and after November 6, and to lay them off on November 12, be 6a cause of their nonunion status, the Union violated Sec tion 8(b) (2) and (1) (A) of the Act. 3. By causing McCarty discriminatorily to transfer Kerr and Brown on December 29, and Yogler, Galaviz, and Fallen on December 31, to deny them overtime thereafter, and to lay off Vogler and Galaviz on Jan uary 5, because of their nonunion status, the Union violated Section 8(b) (2) and (1) (A) of the Act. 4. By refusing to refer Vogler for employment from January 5, 1966, until about August 1966, because of his nonunion status, the Union violated Section 8(b) (2) and (1) (A) of the Act. The Remedy Although the Trial Examiner found that the Re spondent’s hiring arrangement was illegal because of discrimination based on union membership, neverthe less he made no recommendation as to remedy be cause of the outstanding injunction by the U. S. District Court affecting the hiring hall. Contrary to the Trial Examiner, we shall provide our usual remedy for op erating a hiring hall which is illegal on the ground of union preference. We therefore shall order that the Respondent cease and desist from operating the hiring arrangement herein found to be unlawful and, if it con tinues to operate a hiring hall, to operate one that is not discriminatory. As we have found that Brooks Fullen, Jr., along with Volger, Galaviz, Kerr, and Brown, was denied an over time job because of his nonunion status, we find that 7a Fullen should be made whole for his loss of wages in the same manner provided for by the Trial Exam iner in his remedy with respect to Vogler, Galaviz, Kerr, and Brown. In his remedy, the Trial Examiner failed to include any provision requiring Respondent to make whole the discriminates permit men, who, because of the dis crimination against them, were prevented from ac quiring the requisite number of hours to qualify for the joint union and employer welfare fund. The record shows that the Employer, during the critical period herein, made contributions to the welfare fund in an amount of 10 or 15 cents per hour, and an employee qualifies if he works 480 hours in a 6-month period. It is clear in the instant situation that Vogler, Brown, Galaviz, Kerr, and Fullen would have worked on their job until it ended sometime in March 1966, and would have qualified for the fund but for the discriminatory transfers. In these circumstances, we shall order that these employees receive a credit by the Respondent for the welfare fund for the hours that they would have worked if they had not been discriminatorily trans ferred. We further shall order, if Respondent is re quired under the welfare plan to make these contribu tions, that Respondent make the contributions neces sary to make these employees whole for the discrim ination against them. We shall also order that the Re spondent keep full records of its nondiscriminatory hir ing hall and its welfare and pension funds, and to make such records available to the Board for periodic in spection. Finally, we find merit in the exception that the Trial Examiner’s Order and Notice should be a- mended so that Respondent is prohibited from causing 8a any employer to hire a union member because a non- member is on the job if such hire results in the dis placement of such nonmember. ORDER Pursuant to Section 10(c) of the National Labor Re lations Act, as amended, the National Labor Relations Board hereby orders that the Respondent, Internation al Association of Heat and Frost Insulators and Asbes tos Workers Local No. 53, its officers, agents, and rep resentatives, shall: 1. Cease and desist from: (a) Causing or attempting to cause McCarty, Inc., and Armstrong Contracting and Supply Corpora tion, members of the Master Insulators Association, or any other employer, to discriminate against employ ees or prospective employees by refusing to hire them on the unlawful basis of union membership or main taining, performing, or enforcing, by agreement or otherwise, any like or related arrangement in a man ner whereby referrals to available jobs are based on the unlawful basis of union membership. (b) Causing or attempting to cause McCarty, Inc., and Armstrong Contracting and Supply Corpora tion, members of the Master Insulators Association, or any other employer, to deny any employee over time, to lay off or transfer him, or to discriminate against him in anyway, because of his nonunion status. 9a (c) Causing any employer to hire a union mem ber because a nonmember is on a job if such hire re sults in the displacement of such nonmember. (d) Threatening any employer with a strike, or with the withdrawal of skilled labor, for refusing to deny overtime, to lay off, or to otherwise discriminate against a nonunion employee because of his nonunion status. (e) In any like or related manner restraining or coercing nonmembers in the exercise of their rights as employees under Section 7 of the Act. 2. Take the following affirmative action necessary to effectuate the policies of the Act: (a) If Respondent continues to operate a hiring arrangement or hall, to operate one that does not dis criminate on the basis of union membership. (b) Make whole Paul A. Vogler, Jr., Juan B. Gal- aviz, Leon Kerr, Horace D. Brown, Bill Wonzer, and Olan Wonzer, as provided in the section of the Trial Examiner’s Decision entitled “The Remedy,” and make whole Brooks Fullen, Jr., as provided herein un der “The Remedy.” (c) Credit Paul A. Vogler, Jr., Juan B. Galaviz, Leon Kerr, Horace D. Brown, Bill Wonzer, Olan Won- er and Brooks Fullen, Jr., for application of the wel fare fund, with the number of hours they would have worked if they had not been discriminatorily laid off and/or transferred; and credit them with any contri 10a bution to the fund which Respondent may be required to make and which these employees would have re ceived but for the discrimination against them. (d) Keep full records of its nondiscriminatory hiring hall and its welfare and pension funds and make such records available to the Board for periodic inspec tion. (e) Post in the Respondent’s business offices and meeting halls copies of the attached notice marked “Appendix.”3 Copies of said notice, on forms provided by the Regional Director for Region 15, after being duly signed by an authorized representative of the Re spondent, shall be posted immediately upon receipt thereof, and be maintained for 60 consecutive days thereafter. Copies shall be posted in conspicuous places, within clear view of all persons seeking re ferrals by the Respondent, and all persons entering the Respondent’s hiring halls. Reasonable steps shall be taken by the Respondent to ensure that the notices are not altered, • defaced, or covered by any other ma terial. Upon request of the Regional Director, Respond ent shall supply him with a sufficient number of signed copies for posting by McCarty, Inc., and Armstrong Contracting and Supply Corporation, and members of the Master Insulators Association of New Orleans and Baton Rouge, Louisiana, Inc., if desired by them. sin the event this Order is enforced by a Judgment of the United States Court of Appeals, the words in the notice reading “POST ED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD” shall read “POSTED PURSUANT TO A JUDGMENT OF THE UNITED STATES COURT OF APPEALS ENFORC ING AN ORDER OF THE NATIONAL LABOR RELATIONS BOARD.” 11a (f) Notify the Regional Director of Region 15, in writing, within 10 days from the date of this Order, what steps the Respondent has taken to comply here with. Dated, Washington, D. C. Edward B. Miller, Chairman John H. Fanning, Member Gerald A. Brown, Member NATIONAL LABOR RELATIONS BOARD (SEAL) D-4010 Member Jenkins, concurring and dissenting: I concur in the legal conclusions reached by my colleagues that the Union’s conduct, as described by the Board majority, violated Sections 8(b) (2) and 8(b) (1) (A) of the Act for the reasons therein stated. In short, the Board finds, and I agree, that the Charging Parties were discriminated against because they were not union members. I I dissent from the Board’s unwillingness to find the conduct violative of these same sections of the Act for the additional reason that the discrimination was based on race and national origin. The central criti cal fact underlying this litigation is the unlawful at tempt of the Union to exclude from jobs under its con trol all black and Mexican-American employees. The Trial Examiner did not pass on whether the hiring arrangement was discriminatory on the additional ground of race and national origin because1 he con cluded, as a matter of comity between the branches of the Federal Government, it was not proper to rule on these additional matters which were similar to the racial issues before the United States District Court. At the time of the Trial Examiner’s Decision, the Unit ed States District Court for the Eastern District of Lou isiana, New Orleans Division, in Civil Actions Nos. 66- 749 and 66-833 had issued a temporary injunction en joining racial discrimination in membership require ments and referrals by Respondent.4 That injunction was in effect at the time of the trial of the instant case. It is my view that when violations of the National Labor Relations Act are alleged, the Board has the primary responsibility to rule on them and I would resolve any conflict with the court order at the compli ance level. The instant case is within the Board’s jurisdiction. The Board has already held, with Court approval, that 4Paul Vogler, Jr. v. McCarty, Inc., 294 F.Supp. 368 (D.C.La.), affd. sub nom. Local 53 of the Inti. Assn, of Heat & Frost Insulators v. Paul Vogler, Jr., 407 F.2d 1047 (C.A. 5, 1969), in which an injunction issued against Respondent for discriminating against Negroes and Mexican-Americans in employment on account of their race, color, or national origin. 13a Title 7 of the Civil Rights Act of 1964 in no way limits the Board’s powers and duties under the National La bor Relations Act.3 Further, it is well established that it is within the jurisdiction of the Board, under the National Labor Relations Act, to rule on alleged viola tions arising out of hiring practices or arrangements that discriminate on the basis of race or national ori gin.6 Accordingly, I would rule on whether the Re spondent’s hiring practices violate the Act for racial reasons. The record shows that Respondent’s business agent, O’Brien, testified that since “sometimes along in, the ’60’s” only sons and nephews of members were con sidered for membership,7 and at that time he did not know of any Negro members. It was stipulated that during the months of October, November, and Decem ber of 1965 and January of 1966 there were no Negroes in the membership of Respondent. Moreover, O’Brien further testified that it was the policy of the Union during the winter of 1965 not to admit Negroes into membership; and in the winter of 1965 no Negroes were referred out to work. It was stipulated that C'asimere Joseph, a Negro and the first to apply for membership, applied “for the Union” around the end of December sLocal Union No. 12, United Rubber, Cork, Linoleum & Plastic Workers of America, AFL-CIO (The Business League of Gads den), 150 NLRB 312, 320-322, enld. 368 F.2d 12 (C.A. 5), cert, denied 389 U.S. 837. 6Houston Maritime, Inc., and Its Member Companies, 168 NLRB No. 83, enforcement denied on other grounds, 426 F.2d 584, (C.A. 5), decided May 12, 1970; Cargo Handlers, Inc., 159 NLRB 321, and cases cited therein. 7It appears that membership thus was barred to Negroes and to Mexican-Americans. 14a 1965. O’Brien testified that the policy of the Union dur ing October, November, December of 1965 and January 1966 was not to refer Negroes out for employment. The first Negroes who applied to the Union for em ployment were referred on November 19, 1965, and on November 23, respectively by the1 Urban League, and Respondent refused to send them out for employment. It is also alleged by the General Counsel that Re spondent discriminated against Mexican-Amerioans. While the evidence is clear with respect to the Re spondent’s policy not to admit Negroes to- membership and not to refer them to jobs, it also appears that Re spondent had a policy against admitting Mexican-A- mericans to membership. Thus O’Brien testified that Respondent had been working three Mexican brothers from Mobile but that, in effect, there were not enough Mexicans in New Orleans to be a problem. O’Brien also stated that “if you were over in San Antonio or El Paso .. . they could probably charge you with dis crimination . . . . ” In this connection we also note the statement of union steward Jimmy Lawrence to Gala- viz that “ they wanted to keep the Negroes and Mexi cans out of the Local.” This statement is not denied by Lawrence. It is also noted that Vogler made unsuc cessful attempts to inquire about getting Galaviz, a Mexican-American, into the Local.8 sSee Vogler v. McCarty, Inc., supra, in which an injunction issued against Respondent for discriminating against Negroes and Mexican-Americans in employment on account of their race, color, or national origin. 15a Based on the facts detailed above, I would find that the Respondent on the critical dates herein involved maintained a preferential hiring arrangement which discriminated against Negroes and Mexican-Ameri cans because of race and national origin. I would also find that the Respondent, by maintaining a hiring ar rangement which gave preference on, the basis of race or national origin as well as preference on the basis of union membership, violated Section 8(b) (2) and (1) (A) of the Act. To remedy such violation, I would order that the Respondent cease and desist from op erating a hiring arrangement which is unlawful on the basis of race as well as union membership and, if it continues a hiring hall, to operate one that is not dis criminatory on either of these two grounds.9 Dated, Washington, D. C. Howard Jenkins, Jr., Member NATIONAL LABOR RELATIONS BOARD sHouston Maritime Association, Inc., and Its Member Companies, 168 NLRB No. 83, enforcement denied solely on the ground of insufficient evidence to support a finding of racial discrimina tion during the 10(b) period, 426 F.2d 584 (C.A. 5), decided May 12, 1970; Cargo Handlers, Inc., 159 NLRB 321. Cf. Local Union No. 12, United Rubber, Cork, Linoleum & Plastic Work ers of America, AFL-CIO (The Business League of Gadsden), 150 NLRB 312, enfd. 368 F.2d 12 (C.A. 5), cert, denied 389 U.S. 837; Local 1367, International Longshoremen’s Association, AFL-CIO (Galveston Maritime Association, Inc., et al.), 148 NLRB 897, enfd. 368 F.2d 1010 (C.A. 5); Independent Metal Workers Union, Local No. 1 (Hughes Tool Company), 147 NLRB 1573, where the Board held that discrimination based on racial considerations, when engaged in by a statutory bargain ing representative, constitutes inherently unfair representa tion. 16a APPENDIX NOTICE TO MEMBERS POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT cause or attempt to cause McCarty, Inc., and Armstrong Contracting and Supply Corpora tion, members of the Master Insulators Association, or any other employer, to discriminate against employ ees or prospective employees by refusing to hire them on the unlawful basis of union membership or main tain, perform, or enforce, by agreement or otherwise, any like or related arrangement in a manner whereby referrals to available jobs are based on the unlawful basis of union membership. If we continue to operate a hiring hall or arrangement, we will operate one that does not discriminate on the basis of union member ship. WE WILL NOT cause or attempt to cause McCarty, Inc., and Armstrong Contracting and Supply Corpora tion, members of the Master Insulators Association, or any other employer, to deny any employee over time, to lay off or transfer him, or to discriminate against him in any way, because of his nonunion status. WE WILL NOT cause any employer to hire a union member because a nonmember is on a job if such hire results in the displacement of such nonmember. WE WILL NOT threaten any employer with a strike, or with the withdrawal of skilled labor, for refusing 17a to deny overtime, to lay off, or to otherwise discrim inate against a nonunion employee because of his non union status. WE WILL NOT in any like or related manner restrain or coerce nonmembers in the exercise of their rights as employees under Section 7 of the Act. WE WILL pay to Paul A. Vogler, Jr., Juan B. Galaviz, Leon Kerr, Horace D. Brown, Bill Wonzer, Qian Won zer, and Brooks Fullen, Jr., all the regular and over time wages they have lost since 1965 as a result of being replaced on overtime jobs by union members, plus 6 percent interest. WE WILL credit Paul A. Vogler, Jr., Juan B. Galaviz, Leon Kerr, Horace D. Brown, Bill Wonzer, Olan Won zer, and Brooks Fullen, Jr., for application of the wel fare fund, with the number of hours they would have worked if they had not been discriminatorily laid off and/or transferred for applicability of the welfare fund. WE WILL credit Paul A. Vogler, Jr., Juan B. Galaviz, Leon Kerr, Horace D. Brown, Bill Wonzer, Olan Won zer, and Brooks Fullen, Jr., with any contributions which Respondent may be required to make to the welfare fund and which these employees would have received but for the discrimination against them. WE WILL keep full records of our nondiscriminat or y hiring hall and our welfare and pension funds and 18a make s-uch records available to the Board for periodic inspection, INTERNATIONAL ASSOCIATION OF HEAT AND FROST INSULATORS AND ABESTOS WORKERS LOCAL No. 53 (Labor Organization) D ated ________ By —.---------------------- -------------------- — (Representative) (Title) THIS IS AN OFFICIAL NOTICE AND MUST NOT BE DEFACED BY ANYONE This Notice must remain posted for 60 consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concerning this Notice or compliance with its provisions may be directed to the Board’s Of fice, 701 Loyola Ave., New Orleans, Louisiana 70113, Telephone 504-527-6361. TXD-743-68 New Orleans, La. UNITED STATES OF AMERICA BEFORE THE NATIONAL LABOR RELATIONS BOARD DIVISION OF TRIAL EXAMINERS WASHINGTON, D. C. 19a INTERNATIONAL ASSOCIATION OF HEAT AND FROST INSULATORS AND ASBESTOS WORKERS LOCAL No. 53 arid Case No. 15-CB-775 PAULA. VOGLER, JR., an Individual Alan L. Rolnick, Esq., and Thomas D. Johnston, Esq., for the General Counsel. C. Paul Barker, Esq. (Dodd, Hirsch, Barker & Meu- nier) and Mr. Gerald O’Brien, of New Orleans, La., for the Respondent. Mr. Paul A. Vogler, Jr., the Charging Party. TRIAL EXAMINER’S DECISION Statement of the Case MARION C. LADWIG, Trial Examiner: This case was tried at New Orleans, Louisiana, on April 2-5 and 8-10, 1968, pursuant to a charge filed on January 13, and amended February 11, 1966,’ by Paul A. Vogler, Jr., an employee of McCarty-Branton, Inc., herein called McCarty, against the Respondent, International Association of Heat and Frost Insulators and Asbestos Workers Local No. 53, herein called the Union, and pursuant to a complaint issued June 2, 1967. ’All dates, unless otherwise indicated, are in the period from Octo ber 1965 to January 1966. The Union, with a restricted membership of about 260, was the recognized bargaining representative of about 1,200 insulator mechanics and helpers employed by McCarty, Armstrong Contracting and Supply Cor poration, herein called Armstrong, and the other insu lation contractors in the Master Insulators Association of New Orleans & Baton Rouge, La., Inc., herein called the Association. The primary issues are whether the Union was a party to an oral understanding, arrange ment, and practice which gave priority in employment to union members, and whether the Union caused the contractors discriminatorily to deny overtime employ ment to Vogler and five other nonmember “permit men,” and to transfer and/or lay them off, in violation of Section 8(b) (2) and (1) (A) of the National Labor Relations Act, as amended. Upon the entire record,2 including my observation of the demeanor of the witnesses, and after due con sideration of the briefs filed by the General Counsel and the Union, I make the following: Findings of Fact I. The Business of the Employers and the Labor Organization Involved McCarty and Armstrong each was a Louisiana cor poration, with its principal place of business in New Orleans, Louisiana, and was engaged in the insulation contracting business, receiving annually goods and materials valued in excess of $50,000 directly from out 2The General Counsel’s motion to correct the record, dated October 8, 1968, is granted and the record is corrected accordingly. 21a side the State. The Union admits, and I find, that Mc Carty and Armstrong was each engaged in commerce within the meaning of Section 2(6) and (7) of the Act, and that the Union is a labor organization within the meaning of the Act, The Union also admits that Mc Carty, Inc., has been the successor of McCarty since June 30, I960, and that the Association, composed of about 12 employers in the New Orleans and Baton Rouge area, represents the employer members in the negotiation and administration of collective-bargain ing agreements with the Union. II. The Alleged Unfair Labor Practices A. Background In 1957 when Gerald W. O’Brien was elected busi ness agent, the Union had a membership of “a little over 200,” and only 120 jobs. By the fall of 1965, during a boom in industrial construction and following Hurri cane Betsy, there were around 1,200 jobs in the New Orleans and Baton Rouge area, and a critical shortage of qualified insulators. The Union, with restrictive membership policies, then had about 260 members. This case arose in January 1966, when insulator me chanic Paul A. Vogler, Jr., filed a charge against the Union, alleging that it was discriminating against non union employees. Thereafter, and before issuance of the complaint herein, the United States District Court for the Eastern District of Louisiana, New Orleans Di vision, in Civil Actions No. 66-749 (Paul Vogler, Jr. and Casimer Joseph, III v. McCarty, Inc., and the Un ion), and No. 66-833 (United States of America, 2.2a by Ramsey Clark, Attorney General v. Local. 53 of the International Association of Heat and Frost Insulators and Asbestos Workers) held a hearing on January 19-20 and 24, 1987, concerning alleged violations of the Civil Rights Act of 1964. On May 31, 1968, the Court issued a temporary injunction (which remained in effect at the time of trial of the present case), enjoining racial discrimination in membership requirements and re ferrals. The Court did not have before it the unfair labor practices discussed herein, and therefore did not rule upon them. (The Union’s motions to dismiss and not to rule, filed in the present proceeding, are denied for lack of merit.) B. The Illegal Hiring Procedure The evidence is undisputed that although there was no mention of a hiring or referral procedure in the Association-Union collective-bargaining agreement during the period in question (the fall and winter of 1965-1966), McCarty, Armstrong and the other employ er members of the Association followed the practice of securing their insulator mechanics and “improvers” (helpers or apprentices) from the Union. Under this practice, “card men” (members of the Union) were permitted to solicit their own jobs and to work without union referrals, and were given first preference by the Union in making referrals to the contractors. When a sufficient number of card men was unavailable to supply a contractor’s request for applicants, the Union gave second preference to “travelers” (members of other locals of the same International) who, like card men, paid dues to the Union. When additional employ ees were needed, the Union would either refer non 23a members, or give referrals to persons sent to the union hall by the contractor. These nonmember “permit men” paid no dues. There was undisputed testimony that the contractors orally agreed to this long-standing hiring and referral procedure in order to have access to qualified insulator mechanics. However, the undisputed evidence also shows that preference was given on the basis of union membership, not on the basis of ability, residence, etc. Even those union members who were considered un satisfactory as employees were given preference over those nonmembers who were highly skilled, long ex perienced, and highly regarded as employees — de spite their inability to join the Union. It is clear that the Union, in being a party to this oral understanding, arrangement, and practice, of giv ing preference in referrals and hirings on the basis of union membership, violated Section 8(b) (2) and (1) (A) of the Act. C. Discrimination against Permit Men 1. Overtime denied Bill and Qian Wonzer Under the collective-bargaining agreement, all work outside the regular 8 hours a day, Monday through Friday, was overtime, at double pay. On October 28, when Armstrong’s job at the Ameri can Cyanamid plant went on an overtime basis, all five of the mechanics on the job were permit men. They began working 2 hours a day overtime, raising 24a their daily wage from $34.80 (8 hours @ $4.35) to $52.20 (8 hours plus 2 hours @ $8.70). The next week, 11 mechanics were added to the job. These included two card men, two travelers, permit men Bill and Olan Wonzer, and another permit man, hired on Wednesday, November 3. The four others hired later that week were a permit man hired on Thursday, and a permit man and two travelers on Friday. (Concerning these last two persons, the parties agreed what one was a traveler, but questioned wheth er the other was a traveler or a permit man. From all the evidence, I find that both were travelers.) On Friday, November 5 (their third day on the job), permit men Bill and Olan Wonzer asked Foreman Charles Feraci if they could work that weekend. Feraci (according to the Wonzers’ undisputed testimony) an swered no, the overtime was reserved for the card men only. That weekend, Bill and Olan Wonzer, and the five other permit mechanics then remaining on the job, did not work. (I note that one of these five permit men, Barney Jordan, worked as a superintend ent on this job on December 11-12 and 17-19.) However, both card men and all four of the travelers on the job did work that Saturday, November 6, as did six mechanics who worked elsewhere during the week. These latter six were all card men, except permit man Paul McCarthy who was permitted to join the Union shortly thereafter. (In some instances, permit helpers were permitted to work overtime when permit me chanics were not. All travelers were mechanics, and at least 90 percent of the “improvers” in the Union 25a were upgraded to mechanics.) There is no direct evidence that the job steward, card man Charles Kraemer, participated in this dis crimination against the permit men on the job. How ever, permit man Vogler (who was then working a- cross the road on the- McCarty job at the American Cyanamid plant) credibly testified that one day in the latter part of October, steward Kraemer came to the McCarty job, seeking mechanics to work overtime. Vogler volunteered, but the McCarty job steward, James Lawrence, told Kraemer, “No, no, he is a per mit man.” Kraemer told Vogler, “Well, I can’t use you then.” (Vogler believed that this work was to be performed during the evening, but the Armstrong pay roll records show that 10 hours of overtime was per formed on Saturday, October 29, by 10 mechanics, in cluding General Foreman Michael Marino from the McCarty job. All 10 were card men, except Paul Mc Carthy, mentioned above.) Permit man Vogler also credibly testified that sometime around Thanksgiving, he saw some of the mechanics leaving the McCarty job to work overtime on the weekend “up the river” at Little Gypsy. Vogler again volunteered, but job ste ward Lawrence refused, saying, “No, we don’t need any men, just card men going up there.” (I discredit Lawrence’s denial that he had anything to do with the assigning of overtime. He did not impress me as a trustworthy witne s s.) Despite the lack of direct evidence that job steward Kraemer participated in the November 6 discrimina tion against the permit men in the assignment of week end overtime, I draw an inference that the job steward 26a did on that occasion, as did he and other union repre sentatives on other occasions (as herein found), carry out the union policy, discussed hereafter, of inducing employers to give preference to card men in the as signment of overtime. Accordingly I find that the1 Un ion violated Section 8(b) (2) and (1) (A) by causing Armstrong to deny overtime employment to permit men Bill Wonzer and Olan Wonzer on November 6 and thereafter. 2. Layoff of Bill and Olan Wonzer The following week, Armstrong hired two travelers on Monday (November 8), two on Tuesday, and two on Wednesday, and a card man on Thursday — totaling six new travelers and one new card man on the job. On Friday (November 12) the four permit mechanics on the job were laid off, because of “No1 work.” (The payroll records show that the fifth permit man, Barney Jordan, “worked on another job during week.” ) The employees were still working 10-hour days. Thus, after 2 weeks of overtime on the job, the 5 permit mechanics had been replaced with 3 card men and 10 travelers. The following week, four of the travelers (Tillman, Galloway, Williams, and Lose) were laid off because of “No work,” and one (Logan) quit — leaving three card men and five travelers on the job, and no permit mechanics. Before considering what permit men Bill and Olan Wonzer were advised on the day of their layoff, I note that this apparent “loading down” on the job with card men and travelers, until the permit men were laid off, was not an isolated occurrence. First, as discussed 27a below in connection with the McCarty job, Union Busi ness Agent O’Brien admitted that he sent two card men out to a job, and that the foreman “told me that he never ordered the two men.” O’Brien responded, “Well, try and make room for them, because I do un derstand t-hat you have a couple of permit men left on that job.” O’Brien later testified, “I always request a foreman to give the first consideration to our mem bers; those are the ones I represent and who pay my salary.” He admitted that a “lot of times” he would ask the foreman “about using our members for over time,” and that “Most of the time” this was in response to “pressure” from his members. Secondly, a union witness, McCarty Field Superintendent Salvadore Gen ovese, testified that “It has been a practice that as long as you have a permit man there, a card man can come on that job,” and that if there are extra card men on the job, the permit men “are the first ones to get laid off.” “That has always been the prac tice,” because card men “are dues paying members of the Local.” Thirdly, Association President James Poche credibly testified that during his company’s job at the American Cyanamid ammonia plant, Business Agent O’Brien on occasions would tell him, “Jim, you know you have got some permit men on the job and I have got a couple of card men.” Poche would refuse to replace the permit men with card men, but later would find that, contrary to company policy, the job steward and the foreman (both card men) had replaced the permit men with card men. Poche added that “this is a practice that we know of; we don’t take part in it; it is strictly a union function.” 28a Returning to the Armstrong job, on the morning of the Wonzers’ November 12 layoff (according to their u n d i s p u t e d testimony), the Union’s job steward, Charles Kraemer, told them “that he had had a call from the business agent [O’Brien] about all permit men and not to go to work until he had a chance to call him back.” A few minutes later, steward Kraemer told them, “you all go ahead and go to work, that it will be1 around 8:30 o’clock before I can get ahold of the business agent.” Later that morning, the steward told them that they would be laid off that afternoon, but that they could finish the day. They were laid off that afternoon. Their work was satisfactory — the fore man having complimented them for doing “real good” work. After considering all the evidence and the circum stances, including the job steward’s actions on the morning of the layoffs, I find that the General Counsel has proved by a preponderance of the evidence that the Union caused the discriminatory layoff of these two permit men — even if the union steward had not been an agent of the Union and his statements are not considered for their truthfulness. This finding is supported by the fact that, as argued by the General Counsel, the Union “introduced no testimony to rebut General Counsel’s prima facie case.” Moreover, the evidence establishes that the job steward was the Union’s agent. In Business Agent O’Brien’s words, the job steward “is my policeman on the job.” In view of all the circumstances, I find that the statements made by steward Kraemer are properly considered as admissions against the Union’s 29a interest, and that the Union induced the contractor to lay off the permit men because of their nonunion stat us. Accordingly, I find that the Union caused Armstrong on November 12 to lay off Bill and Olan Wonzer dis- criminatorily, in violation of Section 8(b) (2) and (1) (A) of the Act. 3. Transfer of permit men from overtime job Another overtime job was the McCarty job at the American Cyanamid plant. There the employees were usually working 10 hours a day, Monday through Fri day, until late December, when weekend overtime be gan. a. Implied threat of work stoppage Sometime in December, Business Agent O’Brien went to the McCarty jobsite and talked to Vice Presi dent Tom Branton, Field Superintendent Salvador Genovese, and Engineer Bill Cobb concerning the em ployment of card men on the job and the distribution of overtime. (Although Branton remembered the visit having occurred earlier in December, I find that it occurred sometime after December 14, when the last permit mechanic, Leon Kerr, was referred by the Un ion and hired on the job.) According to Branton’s credited testimony, O’Brien told them that “ his mem bership would be given preference on that job” over permit men and travelers “as long as there was over time available . . . . The gist of the conversation was either that the Union was assured that the member 30a ship would be given preference to the overtime on the job, or that we would not have men on any job. My answer was that if this be the case, we ask only for one consideration and that was that we be advised as soon as possible the intent to send any men to that particular job, so that we might prepare, as best we could, for that membership.” (Emphasis supplied.) When called as a union witness, Superintendent Geno vese denied being present when Vice President Bran- ton and Business Agent O’Brien discussed overtime on the job, but later admitted that he was present when “Mr. O’Brien told Mr. Branton, as long as we had per mit men on this job, any time a card man showed up at the gate, we would have to put him to work.” As indicated above, Genovese also testified that when there are extra men on the job, the permit men are “the first ones to get laid off.” (I discredit O’Brien’s denial that he threatened to shut down the job if his members did not make the overtime, and his claim that it was months earlier, before the overtime began, when he met with Branton and Genovese and said that “when this job goes overtime, I would like to see Local 53 members making the overtime.” ) b. Transfer of permit men On Monday, December 27, the permit mechanics on the job were Vogler, Kerr, Horace D. Brown, and Brooks Fullen, Jr. (plus Juan B. Galaviz, who* had been granted a leave of absence). On Tuesday, two travelers were sent to the job. On Wednesday, one card man was sent, and on Thursday, two additional card men. In the meantime, on that Wednesday, December 29, 31a McCarty transferred permit men Kerr and Brown to a straight-time job. That left Vogler and Fullen as the only permit mechanics then working on the overtime job. On Friday, December 31, McCarty transferred Fullen to a straight-time job, and transferred Vogler (with Galaviz) to the International Trade Mart, anoth er straight-time job. Business Agent O’Brien admitted that sometime that month, “I believe I sent .. . two card men out to the [McCarty] job and [General Foreman Michael Mari no] told me that he never ordered the two men, and I said, ‘Well, try and make room for them, because I do understand that you have a couple of permit men left on that job.’ ” He also admitted telling Marino that Marino ought to talk to Field Superintendent Gen ovese “about the possibility” of transferring the “two permit men that were on the job.” (The payroll records show that the last week in December was the only time during the month when such remarks would have been applicable.) O’Brien testified that it was his nor mal duties to try to secure the best overtime opportuni ties for his members, that “I always request a foreman to give the first consideration to our members; those are the ones I represent and who pay my salary,” and that “Most of the time,” it was in response to some pressure from his members when he spoke to the foreman about getting some card men on an over time job. (In his January 10, 1967, deposition given in the district court proceeding, Business Agent O’Brien made further admissions. He testified, “I sent a pair one day and a couple of days later I sent another pair. Mike [Marino] called and said that he hadn’t 32a ordered anybody, and I said, ‘Mike, as long as you got overtime on that job, they are going to bother me to death, so why don’t you transfer two- permit men?’ ” ) General Foreman Marino finally admitted that there had been such a conversation in which Business Agent O’Brien “said that he had been having complaints that a lot of the card men wanted the overtime jobs, and it would save a lot of confusion and trouble, if [the permit men] would be transferred,” and that O’Brien “had sent a few men out . . . so I just assigned the two men or the four men, whatever it was . . . and put them to work.” (When claiming that this conversa tion occurred weeks earlier, Marino appeared to be attempting to support his prior answers, which I dis credit, that in late December, he did not get a telephone call from Business Agent O’Brien concerning permit men on the job, or putting on card men, or about over time, or transferring the permit men.) On Sunday, January 2 (the first weekend after 2 travelers and 3 card men were sent to the job for the overtime, and 5 permit men were transferred to straight-time jobs), 16 travelers and card men on the job, and 6 card men transferred in for the 1 day, each worked 10 hours of overtime. No permit mechanic was left on the job. On the two succeeding weekends, the employees worked both Saturday and Sunday. (The overtime wage for a mechanic working 10 hours on Sunday was $87, and for working 10 hours on both Sat urday and Sunday was $174 — the same pay as for 40 hours a week on a straight-time job. I discredit Gen 33a eral Foreman Marino’s claim that permit man Vogler “volunteered” to be transferred to the ITM job.) Marino admitted that Vogler, Galaviz, Kerr, and Brown did satisfactory work. Vogler has been an in sulator mechanic since 1941; Galaviz has worked in the trade for about 19 years; Kerr has been a mechanic 4 years; and Brown has been an insulator 10 years. Apart from all other evidence, the above demon strates that the Union induced McCarty to transfer the permit men from the overtime job because of their lack of union membership, and in order to give prefer ence to union members in the assignment of overtime. (Without explanation, the General Counsel failed to name Fullen as one of the discriminatees. I therefore make no findings as to him.) c. Corroborating evidence There is much credible evidence corroborating the discriminatory inducements. Permit man Kerr, who was transferred on December 29, credibly testified that General Foreman Marino “ came around and said that he was going to have to transfer us to another job, that they had to make room for the card men.” Kerr asked if it was “because of poor work or anything,” and Markin answered, “No, I am real satisfied with your work. It is something that I have to do . . . . ” Similarly permit man Brown, who was also transferred on December 29, credibly testified that Marino “told us .. . he was transferring us to another job. He said that he had to make room 34a for the card men.” Marino had told them, that there would be more overtime on the job. (I discredit Mari no’s denial that there was not any way in late Decem ber of knowing whether the job “was going on over time.” ) Vogler, who was transferred on December 31, credi bly testified that both General Foreman Marino and Field Superintendent Genovese told him that Business Agent O’Brien said that they had to get the permit men off the job, and that he complained, stating that this was not fair. On Saturday, January 1, the day after Vogler and Galaviz were transferred to the ITM job, Galaviz tele phoned Marino' who (in Galaviz’ words) “told me that they were having trouble with the local . . . that he had to transfer me from the American Cyanamid job to the International Trade Mart job, with Mr. Vogler, because he had been instructed to lay off all of the permit men.” Galaviz also credibly testified that Mari no “wanted to know why I had not come back, that they needed me, they wanted me to come back. And he had told Mr. Vogler several times to tell me to come back.” (General Foreman Marino had given Gal aviz a leave of absence on December 3, to visit his sick father-in-law in Texas. Instead of returning in a- bout a week as planned, Galaviz had worked on an overtime job for a while in Texas before deciding to return. I discredit Marino’s denial that he had given Galaviz a leave of absence, and also- his testimony — which was contrary to McCarty’s payroll records — that Galaviz had quit. Marino testified that he “possi bly” could have placed Galaviz back on the job if he had been a card man.) In his brief, the General Counsel “respectfully sub mits that Marino’s primary allegiance was to his Un ion, and, in carrying out the general union policy of discriminating against permit men, Marino’s actions and comments, made in his agency capacity, are bind ing on the Union,” citing such cases as Local 1016, United Brotherhood of Carpenters etc. (Booher Lum ber Co., Inc.), 117 NLRB 1739, 1744 (1957). The evidence shows that Marino is an active member of the Union and a former vice president, and had been a member of the union executive board for 3 years, until Novem ber 1964. When testifying about the union obligations of foremen members, Business Agent O’Brien testified that “They have sworn under oath when they become a member to look out for the welfare of their brother members,” that they are subject to union charges, and that when the Union sends a man from the hall without a “call-in” for men and there is an excess of men on the job, the foreman is “expected” to “make room for them.”' Marino admitted that since he became a foreman, he has been directed to appear before the executive board. Also in connection with the control the Union exercises over the foremen members, I note that in the minutes of the March 18, 1966, union mem bership meeting, a motion was passed “that all fore men send to Union office copy of time sheet.” I agree with the General Counsel’s contention, and find that General Foreman Marino’s statements are properly considered as admissions by the Union. (I find it unnec essary to rule on the General Counsel’s further conten 36a tion that Field Superintendent Genovese — a former union official who has a current union membership withdrawal card and who likewise is subject to union discipline — also acted in a dual-agency capacity, rep resenting both McCarty and the Union.) However, with or without this corroborating evi dence, I find that the Union induced McCarty to trans fer Kerr and Brown on December 29, and Vogler and Galaviz on December 31, from the overtime job to straight-time jobs because of their nonunion status and in order to provide more overtime for union mem bers, and induced McCarty to deny overtime employ ment to Kerr and Brown on and after December 30, to Vogler on and after January 2, and to Galaviz after January 2, in violation of Section 8(b) (2) and (1) (A) of the Act. 4. Layoff of Vogler and Galaviz On Monday morning, January 3, permit men Vogler and Galaviz reported to work on the “inside” ITM job, which was sclieduled by McCarty to last several months. However on Wednesday, January 5, McCarty Field Superintendent Genovese laid them, off, and Busi ness Agent O’Brien admittedly refused to refer them to other jobs. At one point, Business Agent O’Brien testified: Q. In the conversation with Mr. Genovese concerning Vogler and Galaviz, did you say to Mr. Genovese, “Tell them if they are not satisfied with the job, get off of it? A. Right. Yes sir. 37a Q. And, “I told Sal if they ain’t satisfied with the job, get rid of them?” A. Right. Yes, s ir ---- Similarly in the injunction proceeding, he testified on January 10, 1987: A. . . . Genovese called me and complained about these two never being satisfied with forty hours, that they were mad because they ŵ ere moved off the overtime job . . . . So . .. when Sal called me, he sounded up set that these guys are never satisfied. All they’re looking for is overtime . . . . So I told Sal, “If they ain’t satisfied with the job, run them, get rid of them.” .. . Despite these admissions, which I credit, Business Agent O’Brien denied inducing Genovese to lay off the two permit men. Concerning what happened that week, O’Brien and other union witnesses gave highly conflict ing and implausible versions which, because of their content and because of the demeanor of the witnesses on the stand, I find to have been largely fabrications. After considering all the credible evidence, I find that Business Agent O’Brien instructed Field Superin tendent Genovese to lay off the two permit men, not only because of the above-quoted reason stated by O’Brien, but also because of at least one additional discriminatory reason: card men were complaining that they had been “rained out” that week on outside construction jobs while these two permit men were working on the “inside” ITM job. I also find that neith 38a er of them would have been laid off if they had been working as card men instead of as permit men. Accordingly, I find that on January 5, the Union in duced McCarty discriminatorily to lay off Vogler and Galaviz, in violation of Section 8(b) (2) and (1) (A) of the Act. D. Other Allegations The complaint alleges that the Union engaged in vio lations of the Act through racial discrimination. How ever, under the circumstances of this case, I deem it proper, as a matter of comity between branches of the federal government, not to rule on these additional matters which apparently are similar to the racial is sues before the U.S. District Court. The complaint also alleges that from January 5 until about August 1966, the Union refused to refer Vogler because of his nonunion status. However, inasmuch a:s the remedy for such a violation would be cumula tive, I find it unnecessary to rule on the allegation. Conclusions of Law 1. By causing McCarty, Armstrong, and other em ployer members of the Association, through a discrim inatory oral understanding, arrangement, and prac tice, to give priority in employment to union members in violation of Section 8(a) (3) of the Act, the Union has engaged in unfair labor practices affecting com merce within the meaning of Section 8(b) (2) and (1) (A) and Section 2(6) and (7) of the Act. 39a 2. By causing Armstrong discriminatorily to deny overtime to Bill Wonzer and Olan Wonzer on and after November 6, and to lay them off on November 12, be cause of their nonunion status, the Union violated Sec tion 8(b) (2) and (1) (A) of the Act. 3. By causing McCarty discriminatorily to transfer Kerr and Brown on December 29, and Yogler and Gal- aviz on December 31, to deny them overtime there after, and to lay off Yogler and Galaviz on January 5, because of their nonunion status, the Union violated Section 8(b) (2) arid (1) (A) of the Act. The Remedy Having a policy of not charging “permit men” any dues, the Respondent has openly and flagrantly violat ed the Section 7 rights of this large group of nonmem bers which it represents, by causing the insulation con tractors to give preference to dues-paying members in hirings, assignment of overtime, transfers, and lay offs, on the basis of union membership. As a result, permit mechanics Vogler, Galaviz, Kerr, Brown, and Bill and Olan Wonzer were denied overtime (at double pay) and laid off or transferred from overtime jobs because of their nonunion status. This occurred during an employment boom (following Hurricane Betsy, a large influx of industrial work in the area in 1965, and increased commercial work in the area since then), and during a period of a labor shortage, when the con tractors were attempting to retain qualified insulators by transferring them from job to job. Consequently, when the Respondent induced the contractors to re 40a place the permit men because of their nonmembership, it deprived the permit men of virtually full-time em ployment in the area, plus the overtime when required. Because of these circumstances, I find that the mere payment of earnings lost on the particular jobs to which these six employees were assigned at the time of the discrimination would not make them whole or provide an effectual remedy. In order to vindicate these employees’ Section 7 rights, and to make them whole, I find it essential for the Respondent to be or dered to pay them for all regular and overtime wages lost, from the dates of the discrimination to the time the notice required herein is posted, as a result of the discrimination induced by the Respondent, preventing the respective contractors from continuing to employ them, and to transfer them from job to job, as needed. Such loss of earnings shall be computed in the manner set forth in F. W. Woolworth Com.pany, 90 NLRB 289, with interest at 6 percent per annum as provided in Isis Plumbing & Heating Co., 138 NLRB 716. The Respondent must also be ordered to cease and desist from various unfair labor practices found, and to take other affirmative action, which I also' find nec essary to remedy and to remove the effect of the unfair labor practices and to effectuate the policies of the Act. Because of the U. S, District Court’s prior injunc tion, regulating the operation of the Respondent’s hir ing hall, I shall not make any recommendation con cerning a remedy for the discriminatory oral under standing, arrangement, and practice, giving priority in employment and referrals on the basis of union membership. 41a Accordingly, on the basis of the foregoing findings and conclusions, and on the entire record, I recom mend pursuant to Section 10(c) of the Act, issuance of the following: ORDER Respondent, International Association of Heat and Frost Insulators and Asbestos Workers Local No, 53, its officers, agents, representatives, and successors, shall: 1. Cease and desist from (a) Causing or attempting to cause McCarty, Inc., Armstrong Contracting and Supply Corporation, members of the Master Insulators Association, or any other employer, to deny any employee overtime, to lay off or transfer him, or to discriminate against him in any way, because of his nonunion status. (b) Causing any employer to hire a union mem ber because a nonmember is on a job. (c) Threatening any employer with a strike, or with the withdrawal of skilled labor, for refusing to deny overtime, to lay off, or otherwise discriminate against a nonunion employee because of his nonunion status. (d) In any like or related manner restraining or coercing nonmembers in the exercise of their rights as employees under Section 7 of the Act. 2. Take the following affirmative action necessary to effectuate the policies of the Act: (a) Make whole Paul A. Vogler, Jr., Juan B. Gal- aviz, Leon Kerr, Horace D. Brown, Bill Wonzer, and Olan Wonzer, as provided in the section of the Trial Examiner’s Decision entitled “The Remedy.” (b) Post in the Respondent’s business offices and meeting halls copies of the notice attached hereto and marked Appendix.3 Copies of such notice on forms pro vided by the Regional Director for Region 15, after being duly signed by an authorized representative of the Respondent, shall be posted immediately upon re ceipt thereof, and he maintained for 60 consecutive days thereafter. Copies shall be posted in conspicuous places, within clear view of all persons seeking refer rals by the Respondent, and all persons entering the Respondent’s hiring1 halls. Reasonable steps shall be taken by the Respondent to ensure that the notices are not altered, defaced, or covered by any other ma terial. Upon request of the Regional Director, Respond ent shall supply, him with a sufficient number of signed copies for posting by McCarty, Inc., Armstrong Con tracting and Supply Corporation, and members of the Master Insulators Association of New Orleans & Baton Rouge, La., Inc., if desired by them. slf this Recommended Order is adopted by the Board, the words “ a Decision and Order” shall be substituted for the words “ the Recommended Order of a Trial Examiner” in the notice. In the further event that the Board’s Order is enforced by a decree of a United States Court of Appeals, the words “a Decree of the United States Court of Appeals Enforcing an Order” shall be substituted for the words “a Decision and Order.” (c) Notify the Regional Director of Region 15, in writing, within 20 days from the date of the receipt of this Decision, what steps the Respondent has taken to comply herewith,4 It is also ordered that the complaint be dismissed insofar as it alleges any violation of the Act not spe cifically found herein. Dated at Washington, D. C. (Signed) MARION C. LADWIG Marion c. Ladwig Trial Examiner APPENDIX NOTICE TO ALL MEMBERS OF INTERNATIONAL ASSOCIATION OF HEAT AND FROST INSULATORS AND ASBESTOS WORKERS LOCAL No. 53 Pursuant To The Recommended Order of a Trial Examiner of the National Labor Relations Board and in order to effectuate the policies of the National Labor Relations Act (As Amended) we hereby notify you that: 4In the event that this Recommended Order is adopted by the Board, this provision shall be modified to read: ‘Notify the Regional Director for Region 15, in writing, within 10 days from the date of this Order, what steps have been taken to comply herewith.” 44a WE WILL PAY to these permit men all the regular and overtime wages they have lost since 1965 as a result of being replaced on over time jobs by union members (plus 6 percent interest) Paul A. Vogler, Jr. Bill Wonzer Juan B. Galaviz Horace D. Brown Leon Kerr Olan Wonzer WE WILL NOT induce any contractor to deny overtime to any employee because he is not a union member. WE WILL NOT induce any contractor to trans fer any employee because he is not a union member. WE WILL NOT induce any contractor to hire a union member because a nonmember is on the job. WE WILL NOT induce any contractor to lay off a permit man, becuase he lacks union mem bership, before laying off a card man or travel er. WE WILL NOT threaten to strike any contrac tor for refusing to deny permit men overtime, or to transfer or lay them, off first, because of nonmembership in the Union. INTERNATIONAL ASSOCIATION OF HEAT AND FROST INSULATORS AND ASBESTOS WORKERS LOCAL No. 53 (Labor Organization) Dated__________ By _____________ __________ _ (Representative) (Title) This Notice must remain posted for 60' consecutive days from the date of posting, and must not be altered, defaced, or covered by any other material. If members have any question concerning this Notice or compliance with its provisions, they may communi cate directly with the Board’s Regional Office, T8024 Federal Building (Loyola), 701 Loyola Avenue, New Orleans, La. 70113, Tel. No. (504) 527-6391. Scofields’ Quality Printers, Inc. — New Orleans, La.