NOTICE:  This opinion is subject to formal revision before publication in the bound volumes of NLRB decisions.  Readers are requested to notify the Executive Secretary, National Labor Relations Board, Washington, D.C.  20570, of any typographical or other formal errors so that corrections can be included in the bound volumes.

New Concept Solutions, LLC and Freight Drivers and Helpers Union No. 557 a/w International Brotherhood of Teamsters[1] and Federation of Private Employees, Party in Interest and International Brotherhood of Trade Unions, Local 713, Party to the Contract.  Case 5–CA–30312

May 25, 2007

DECISION AND Order

By Members Liebman, Schaumber, and Kirsanow

On August 12, 2003, Administrative Law Judge C. Richard Miserendino issued the attached decision.  The Respondent filed exceptions and a supporting brief, the General Counsel and Charging Party filed answering briefs, and the Respondent filed a reply brief.  The General Counsel filed cross-exceptions, and the Respondent filed an answering brief.

The National Labor Relations Board has delegated its authority in this proceeding to a three-member panel.

The Board has considered the decision and the record in light of the exceptions and briefs and has decided to affirm the judge’s rulings, findings,[2] and conclusions and to adopt the recommended Order as modified and set forth in full below.[3]

ORDER

The National Labor Relations Board adopts the recommended Order of the administrative law judge as modified and set forth in full below, and orders that the Respondent, New Concept Solutions, LLC, Baltimore, Maryland, its officers, agents, successors, and assigns, shall

1. Cease and desist from

(a) Refusing to hire bargaining-unit employees of Leaseway Motorcar Transport Company (Leaseway), the predecessor employer, because of their union-represented status in the predecessor’s operation, or otherwise discriminating against these employees to avoid having to recognize and bargain with the Freight Drivers and Helpers Union No. 557, a/w International Brotherhood of Teamsters (the Teamsters).

(b) Refusing to recognize and bargain in good faith with the Teamsters as the exclusive collective-bargaining representative of its employees in the following appropriate unit:

 

INCLUDED: All full-time and regular part-time employees who are utilized by the Company in the movement of motor vehicles from motor vehicle manufacturing facilities and/or storage areas and/or loading and unloading of those motor vehicles.

 

EXCLUDED: All other employees, office clerical employees, guards and supervisors as defined in the Act.

 

(c) Unilaterally changing wages, hours, and other terms and conditions of employment of the employees in the above-described unit without first giving notice to and bargaining with the Teamsters about these changes.

(d) Assisting and recognizing the Federation of Private Employees (FOPE) and/or International Brotherhood of Trade Unions, Local 713 (Local 713), as the exclusive representative of its employees.

(e) Entering into and enforcing collective-bargaining agreements with FOPE and Local 713 containing union-security and dues-checkoff provisions.

(f) Coercing its employees to select FOPE and/or Local 713 as the exclusive representative of its employees.

(g) Granting FOPE and/or Local 713 unrestricted access to its facilities and employees in order to solicit members, while denying access to the Teamsters.

(h) Enforcing and/or giving effect to the collective-bargaining agreement with Local 713; provided, however, that nothing in this Order shall authorize or require the withdrawal or elimination of any wage increase or other improved benefits or terms and conditions of employment that may have been established pursuant to the performance of that collective-bargaining agreement.

(i) Telling its employees to ignore the Teamsters and that the Respondent has hired an off-duty police officer to patrol the yard for the employees’ protection.

(j) Telling its employees that the Teamsters had put Leaseway out of business because of the high wages the company had to pay and that the Respondent could not afford to pay those wage rates.

(k) Telling its employees that it was in their best interest to belong to a union, but that the Respondent wanted some control over which union was selected.

(l) In any like or related manner interfering with, restraining, or coercing employees in the exercise of the rights guaranteed them by Section 7 of the Act.

2. Take the following affirmative action necessary to effectuate the policies of the Act.

(a) Notify the Teamsters in writing that it recognizes that Union as the exclusive representative of its unit employees under Section 9(a) of the Act and that it will bargain with it concerning terms and conditions of employment for employees in the above-described appropriate unit.

(b) Recognize and, on request, bargain with the Teamsters as the exclusive representative of the employees in the above-described appropriate unit concerning terms and conditions of employment and, if an understanding is reached, embody the understanding in a signed agreement.

(c) At the request of the Teamsters, rescind any departures from terms and conditions of employment that existed immediately prior to the Respondent’s takeover of predecessor Leaseway’s operation, retroactively restoring preexisting terms and conditions of employment, including wage rates and benefit plans, until it negotiates in good faith with the Teamsters to agreement or to impasse.

(d) Make whole, in the manner set forth in the remedy section of the judge’s decision, the unit employees for losses caused by the Respondent’s failure to apply the terms and conditions of employment that existed immediately prior to its takeover of predecessor Leaseway’s operation, subject to Respondent demonstrating in a compliance hearing that, had it lawfully bargained with the Teamsters, it would have, at some identifiable time, lawfully imposed less favorable terms than those that had existed under its predecessor.

(e) Withdraw and withhold all recognition from Local 713 as the exclusive collective-bargaining representative of its employees.

(f) Reimburse, with interest as provided in New Horizons for the Retarded, 283 NLRB 1173 (1987), all present and former employees for all initiation fees, dues, and other moneys paid by them or withheld from them pursuant to the terms of dues-checkoff and union-security provisions of the collective-bargaining agreements between the Respondent and FOPE and the Respondent and Local 713.

(g) Within 14 days of the date of this Order, offer employment to the following named former unit employees of the predecessor, Leaseway, and other similarly situated employees who would have been employed by the Respondent but for the unlawful discrimination against them, in their former positions or, if such positions no longer exist, in substantially equivalent positions, without prejudice to their seniority or any other rights or privileges previously enjoyed, discharging if necessary any employees hired in their place.

 

Gil Brooks, Sr.                               Harry Smith

Victor Estrada                               Al Sturtevant

Sharon Evans                                               Charles Sussan

James Holland, Jr.                        Ricky Swick

Howard Kohlahafer                     Roger Vandevender

Jeff Kotch                                      William C. Whitelaw

John H. Moe                                 James A. Wilkes

David Rawls                                  Norman Yuille

 

(h) Make the employees referred to in the preceding paragraph 2(g) and other similarly situated employees whole for any loss of earnings and other benefits they may have suffered by reason of the Respondent’s unlawful refusal to hire them, in the manner set forth in the remedy section of the judge’s decision.

(i) Within 14 days from the date of this Order, remove from its files any reference to the unlawful refusal to hire the employees named in the preceding paragraph 2(g) and, within 3 days thereafter, notify them in writing that this has been done and that the refusal to hire them will not be used against them in any way.

(j) Preserve and, within 14 days of a request, or such additional time as the Regional Director may allow for good cause shown, provide at a reasonable place designated by the Board or its agents, all payroll records, social security payment records, timecards, personnel records and reports, and all other records, including an electronic copy of such records if stored in electronic form, necessary to analyze the amount of backpay due under the terms of this Order.

(k) Within 14 days after service by the Region, post at its Baltimore, Maryland facility copies of the attached notice marked “Appendix.”[4]  Copies of the notice, on forms provided by the Regional Director for Region 5, after being signed by the Respondent’s authorized representative, shall be posted by the Respondent and maintained for 60 consecutive days in conspicuous places including all places where notices to employees are customarily posted.  Reasonable steps shall be taken by the Respondent to ensure that the notices are not altered, defaced, or covered by any other material.  In the event that, during the pendency of these proceedings, the Respondent has gone out of business or closed the facility involved in these proceedings, the Respondent shall duplicate and mail, at its own expense, a copy of the notice to all current employees and former employees employed by the Respondent at any time since December 1, 2001.

(l) Within 21 days after service by the Region, file with the Regional Director a sworn certification of a responsible official on a form provided by the Region attesting to the steps that the Respondent has taken to comply.

Dated, Washington, D.C.  May 25, 2007

 

 

Wilma B. Liebman,

Member

 

 

 

 

Peter C. Schaumber,

Member

 

 

 

 

Peter N. Kirsanow,

Member

 

 

 

 

     (Seal)          National Labor Relations Board

 

APPENDIX

Notice To Employees

Posted by Order of the

National Labor Relations Board

An Agency of the United States Government

 

The National Labor Relations Board has found that we violated Federal labor law and has ordered us to post and obey this notice.

 

federal law gives you the right to

 

Form, join, or assist a union

Choose representatives to bargain with us on your behalf

Act together with other employees for your benefit and protection

Choose not to engage in any of these protected activities.

 

We will not refuse to hire bargaining-unit employees of Leaseway Motorcar Transport Company (Leaseway), the predecessor employer, because of their union-represented status in the predecessor’s operation, or otherwise discriminate against these employees to avoid having to recognize and bargain with the Freight Drivers and Helpers Union No. 557, a/w International Brotherhood of Teamsters (the Teamsters).

We will not refuse to recognize and bargain in good faith with the Teamsters as the exclusive collective-bargaining representative of our employees in the following appropriate unit:

 

INCLUDED: All full-time and regular part-time employees who are utilized by us in the movement of motor vehicles from motor vehicle manufacturing facilities and/or storage areas and/or loading and unloading of those motor vehicles.

 

EXCLUDED: All other employees, office clerical employees, guards and supervisors as defined in the Act.

 

We will not unilaterally change wages, hours, and other terms and conditions of employment of our employees in the above-described unit without first giving notice to and bargaining with the Teamsters about these changes.

We will not assist or recognize the Federation of Private Employees (FOPE) or International Brotherhood of Trade Unions, Local 713 (Local 713), as the exclusive representative of our employees.

We will not enter into and enforce collective-bargaining agreements with FOPE and Local 713 containing union-security and dues-checkoff provisions.

We will not coerce our employees to select FOPE or Local 713, or any other labor organization, as the exclusive representative of our employees.

We will not grant FOPE or Local 713 unrestricted access to our facilities and employees in order to solicit members, while denying access to the Teamsters.

We will not enforce or give effect to the collective-bargaining agreement with Local 713.

We will not tell our employees to ignore the Teamsters and that we have hired an off-duty police officer to patrol the yard for their protection against the Teamsters.

We will not tell our employees that the Teamsters put Leaseway out of business because of the high wages the company had to pay and that we could not afford to pay those wage rates.

We will not tell our employees that it is in their best interest to belong to a union, but that we want some control over which union they select.

We will not in any like or related manner interfere with, restrain, or coerce our employees in the exercise of the rights set forth above.

We will notify the Teamsters in writing that we recognize that Union as the exclusive representative of our unit employees under Section 9(a) of the Act and that we will bargain with it concerning terms and conditions of employment for employees in the above-described appropriate unit.

We will recognize and, on request, bargain with the Teamsters as the exclusive representative of our unit employees concerning terms and conditions of employment and, if an understanding is reached, embody the understanding in a signed agreement.

We will, at the request of the Teamsters, rescind any departures from terms and conditions of employment that existed immediately prior to the date we took over Leaseway’s operation, retroactively restoring preexisting terms and conditions of employment, including wage rates and benefit plans, until we negotiate in good faith with the Teamsters to agreement or to impasse.

We will make whole the unit employees for losses caused by our failure to apply the terms and conditions of employment that existed immediately prior to our takeover of Leaseway’s operation, subject to our demonstrating in a compliance hearing that, had we lawfully bargained with the Teamsters, we would have, at some identifiable time, lawfully imposed less favorable terms than those that had existed under Leaseway.

We will withdraw and withhold all recognition from Local 713 as the exclusive collective-bargaining representative of our employees.

We will reimburse, with interest, all present and former employees for all initiation fees, dues, and other moneys paid by them or withheld from them pursuant to the terms of dues-checkoff and union-security provisions of the collective-bargaining agreements between ourselves and FOPE and ourselves and Local 713.

We will, within 14 days from the date of the Board’s Order, offer employment to the following named former unit employees of the predecessor, Leaseway, and other similarly situated employees who would have been employed by us but for our unlawful discrimination against them, in their former positions or, if such positions no longer exist, in substantially equivalent positions, without prejudice to their seniority or any other rights and privileges previously enjoyed, discharging if necessary any employees hired in their place.

 

Gil Brooks, Sr.                               Harry Smith

Victor Estrada                               Al Sturtevant

Sharon Evans                                               Charles Sussan

James Holland, Jr.                        Ricky Swick

Howard Kohlahafer                     Roger Vandevender

Jeff Kotch                                      William C. Whitelaw

John H. Moe                                 James A. Wilkes

David Rawls                                  Norman Yuille

 

We will make the above-named employees and other similarly situated employees whole for any loss of earnings and other benefits they may have suffered by reason of our unlawful refusal to hire them, less any net interim earnings, plus interest.

We will, within 14 days from the date of the Board’s Order, remove from our files any reference to our unlawful refusal to hire the above-named employees, and we will, within 3 days thereafter, notify them in writing that this has been done and that the refusal to hire them will not be used against them in any way.

 

New Concept Solutions, llc

Thomas P. McCarthy, Esq., for the General Counsel.

Stephen D. Shawe, Esq., Arthur M. Brewer, Esq., and Laura A. Pierson Scheinberg, Esq., for the Respondent.

James F. Wallington, Esq., for the Charging Party.

DECISION

Statement of the Case

C. Richard Miserendino, Administrative Law Judge. This case was tried in Baltimore, Maryland, on October 30, 31, and November 1, 18, and 19, 2002.  In October 2001, the Respondent, New Concept Solutions, LLC (NCS) was awarded a contract through competitive bidding for the releasing and loading of motor vehicles onto car carriers and rail cars at the General Motors Corporation (GM) Baltimore Assembly Plant, Baltimore, Maryland.1  For over 44 years, this work had been performed at the Baltimore assembly plant by the Leaseway Motorcar Transport Company (Leaseway).  For 35 years, the Leaseway employees at the Baltimore assembly plant were represented for collective-bargaining purposes by the Freight Drivers and Helpers Union No. 557 a/w International Brotherhood of Teamsters, AFL–CIO (Union or Teamsters).

At the time NCS was awarded the GM contract it had only three employees, all of whom were managerial. A precondition of the contract awarded to NCS was that its work force had to be unionized. In December 2001, NCS hired 12 new employees. No Leaseway employees were hired.  A few days after the 12 new hires began orientation and training, NCS recognized the Federation of Private Employees (FOPE) as its employees’ exclusive representative for collective-bargaining purposes and entered into a collective-bargaining agreement. About 2 months later, FOPE withdrew as the exclusive bargaining representative of the NCS employees. A short time later, NCS recognized the International Brotherhood of Trade Unions, Local 713 (Local 713) as its employees’ exclusive representative for collective-bargaining purposes and signed a collective-bargaining agreement with Local 713, which effectively was the same as the FOPE contract.

The amended complaint alleges that the Respondent violated Section 8(a)(3) of the Act by refusing to hire former Leaseway employees because of their Teamsters membership in order to avoid a successorship obligation to recognize and bargain with the Union and to avoid paying the union wage scale; that the Respondent violated Section 8(a)(2) of the Act by prematurely recognizing and providing unlawful assistance to FOPE and by providing unlawful assistance to Local 713; that the Respondent violated Section 8(a)(3) of the Act by executing a contract with FOPE and Local 713 containing a union-security clause and dues-checkoff provisions; that the Respondent violated Section 8(a)(1) of the Act by admonishing its employees not to talk to the Teamsters, by telling them that it had hired an off-duty police officer to protect them from the Teamsters, by telling them that the Teamsters put Leaseway out of business with higher wages and that it could afford to operate only because it was not paying Teamsters’ wage scale, and by discouraging employees from contacting the Steelworkers Union and telling them that it wanted some control over which union represented its employees; that the Respondent violated Section 8(a)(5) of the Act by refusing to bargain with the Teamsters and by making unilateral reductions in wages, as well as other unilateral changes in terms and conditions of employment.

On the entire record, including my observation of the demeanor of the witnesses, as well as my credibility determinations based on the weight of the respective evidence, established or admitted facts, inherent probabilities, and reasonable inferences drawn from the record as a whole, and after considering the posthearing briefs filed by the General Counsel, the Respondent, and the Charging Party Union,2 I make the following

Findings of Fact

i. jurisdiction

The Respondent, a limited liability corporation, provides transportation and logistics services to customers in the automotive manufacturing industry with an office and place of business in Baltimore, Maryland. Since January 1, 2002, in conducting business at its Baltimore, Maryland facility, the Respondent has purchased and received goods valued in excess of $50,000 directly from points located outside of the State of Maryland.  

The Respondent admits and I find that it is an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. The Respondent also admits and I find that the Union is a labor organization within the meaning of Section 2(5) of the Act.  The Respondent further admits and I find that FOPE and Local 713 are labor organizations within the meaning of Section 2(5) of the Act.

ii. alleged unfair labor practices

A.  Leaseway

The GM Baltimore assembly plant produces Chevy Astro vans. As the vehicles come off the production line, they are released to the releasing agent, who processes the vehicle and ships it to the appropriate destination.  (Tr. 141.)  The releasing agent is responsible for bringing the units, or Chevy Astro vans, into the yard where it is determined if the vehicle is to be delivered by rail or truck.  If the vehicle is to be delivered by truck, a “driveaway” employee drives the vehicle from the plant to the yard where it is tagged and then taken to an area where the truckdrivers, or “truckaways,” load the vehicle onto their rigs.  If the vehicle is to be delivered by rail, the driveaway takes the vehicle to the yard where it is tagged and then to the rail loading bays, where the vehicle is loaded onto a rail carrier. (Tr. 146, 448.)

Leaseway performed the yard and truckaway work for General Motors at the Baltimore assembly plant for over 44 years.  (Tr. 530.)  For 35 years, the Leaseway employees were represented by the Teamsters under a collective-bargaining agreement. (GC Exhs. 3 and 5.) Specifically, the Teamsters represented the truckaway (big rig drivers), mechanics, and driveaways (take unit from plant), as well as the yard personnel, who also did the rail-loading and unloading.  (Tr. 448.) Jack Hamm was the Teamsters shop steward for the drivers and John Moe was the Teamsters shop steward for yard personnel.  (Tr. 456.)

B. NCS

NCS was formed as a non-asset based business in March 2001 by David Johnson.  (Tr. 886; GC Exhs. 7–16.)  In July 2001, his father, Charlie Johnson, became actively involved with the Company.  (Tr. 917.)  Charlie Johnson started in the car hauling business in 1985. He eventually operated a nonunion company known as Active Transportation Company, and acquired another trucking company known as Safety Carrier, Inc.  Active Transportation was organized by the Teamsters 2 years after it began operating.  Safety Carrier had a collective-bargaining agreement with the International Association of Machinists (Machinists) at the time it was acquired.  (Tr. 149.)

From 1995–2000, Charlie Johnson served on the Employer Bargaining Committee for the National Master Automobile Transporters Agreement with the International Brotherhood of Teamsters and Local Unions covering eastern area truckaway, driveaway, yard and shop personnel. (Tr. 40.) Charlie Johnson’s company, Active Transportation, as well as Leaseway Motor Transport Company were parties to the master agreement.

In 1999, Charlie Johnson learned that GM was soliciting bids from nonunion competitors of Active Transportation which, according to Johnson, placed his company at a competitive disadvantage because he was required to pay his drivers at the Teamsters wage rate.  (Tr. 47, 183; GC Exh. 6.)  In January 2001, at an industry meeting in Detroit, Charlie Johnson sought to persuade the Teamsters to “cost-down” the wage rate under the master agreement to $15 an hour in order to make Active Transportation, and other Teamsters organized truck carriers, more competitive with the nonunionized truck companies. The Teamsters rejected his request.  In July 2001, Charlie Johnson sold his ownership interest in Active Transportation and by letter, dated July 27, 2001, advised the chairperson of the Employer Bargaining Committee that he was relinquishing his seat on the employer bargaining committee.  (R. Exh. 1.)

C. Preparing to Bid for Leaseway’s Work

In 2001, David Johnson prepared an alternative “cost opportunity” proposal to present to General Motors, whereby a new company, New Concept Solutions, would receive, release, and deliver cars and trucks. (GC Exh. 17; Tr. 59.)  The NCS proposal projected that GM would save an estimated $10 million per year on its plant releasing and rail loading/unloading “using an AFL–CIO recognized work force (where receiving and vehicle staging is not currently accomplished by UAW employees) and to work to develop lane building opportunities to increase velocity thus reducing average delivery times by utilizing Independent Contractors to provide haul away dealer direct delivery.”  (GC Exh. 17.)  David Johnson included this language in the proposal because GM told him that the work force had to be unionized. (Tr. 890.)

In May 2001, David and Charlie Johnson, accompanied by a GM representative, toured the GM assembly plants located in Linden, New Jersey, Orion, Michigan, and Baltimore, Maryland, in anticipation of NCS making a bid for the yard work, which at the time was performed by Leaseway at all three locations. (Tr. 65, 889–890.)  On May 31, David Johnson made his proposal to takeover the yard work at the GM Baltimore assembly plant.3  After that, David Johnson met with the GM representatives to discuss his proposal in June and in October.  (Tr. 949.)  He also spoke to the GM representatives on the phone at least once a month until October, at which point the frequency of their phone conversations increased.  (Tr. 950.)  At all times, it was made clear to David and Charlie Johnson that NCS was required to have a unionized work force in order to obtain and keep the GM yard work.  (Tr. 112.)

D. NCS Receives Contract for the Yard Work at GM Baltimore Assembly Plant

In late October, WARN notices were given to the Leaseway employees advising them that Leaseway was terminating business at the GM Baltimore assembly plant as of December 31, 2001. (Tr. 466, 503.)

By letter, dated November 21, NCS was officially notified that it had been awarded the releasing and rail loading, effective January 1, 2002. (GC Exh. 20.) Under its new contract with GM, NCS was also responsible for the truckaway dispatch operation. NCS would solicit rates for the truckaway work from independent contractors, provide them to GM, who would select the lowest bidder to do the truckaway work. (Tr. 94, 919.)

E. The November 29, 2001 Meeting with
 GM and the UAW

The United Auto Workers of America, Local 239 (UAW), represents approximately 1500–1600 assembly line workers at the GM Baltimore assembly plant. In late November 2001, a plant newspaper jointly published by GM and the UAW notified the GM employees that NCS, whose employees were represented by the Machinists, was going to take over the yard work at the plant.  (GC Exh. 40; Tr. 415, 477.)4  A meeting was held on November 29, 2001, to introduce NCS, and to answer questions from the UAW representatives. (Tr. 420.) Charlie and David Johnson were present for NCS, along with Charlie Ross, NCS operations manager, and Lisa Lunsford, a consultant retained by NCS to facilitate the hiring and training of NCS employees.[5]

Charlie Johnson introduced himself and reviewed his background in the trucking industry. According to Charles Miller, a former UAW shop chairman, who attended the meeting, Charlie Johnson told the group that the NCS employees would be represented by the “Machinists,” although he could not recall which Machinist local. (Tr. 209.) The current UAW shop chairman, James Basilone, testified that Johnson told the group that the independent drivers doing the truckaway work would be represented by the Machinists and that these drivers would drive out to 150 miles from the plant. (Tr. 422.)  Basilone’s testimony is consistent with Charlie Johnson’s testimony that he told everyone at the meeting that the drivers doing the truckaway work up to 150 miles would be represented by the Machinists.  (Tr. 74.)[6]  I therefore credit Charlie Johnson’s testimony on this point.[7]

F. NCS Contacts MOED

The City of Baltimore’s Mayor’s Office of Employment Development (MOED) operates under the mandates of the Federal Workforce Investment Act.  (Tr. 349.) Its mission is to help Baltimore City residents find employment, change careers or upgrade in training. It serves all residents, including people with “barriers,” like criminal backgrounds, who are much harder to employ.  MOED customers are workers and employers.  It operates four career centers (one-stops) in Baltimore, which are intake places for individuals seeking employment assistance.  Job seekers must register by filling out an application for “core services,” which allows them to go into the center and do a self-job search by accessing the automated labor exchange system (One Line).  (Tr. 294.) Once job seekers are entered into the database, MOED will retrieve the job seeker’s name by displaying the required skills and experience and provide the job seeker with the employer’s contact information.  (Tr. 295.) There is also a youth center for individuals ages 16 to 21. These youths, however, must live in empowerment zones, which are federally designated areas housing a large number of economically disadvantaged people. (Tr. 295.)

MOED also offers training programs: on-the-job training which is provided by the employer and subsidized by MOED, which awards 50 percent of wage reimbursement for the trainees (Tr. 406); and employer based training in which the employer can send the trainees to “vendors” (or, schools such as Baltimore City Community College) and 50 percent of these costs are provided by MOED. If training is required, MOED prepares a customized training alert, which is sent to all the career centers and is also posted in a “public folder.”  (Tr. 311.) Job seekers interested in training must come to a career center for an individual assessment done by a staff member who reviews any deficiencies the applicant may have, their particular needs and skills, and educational background.  (Tr. 312–313.) 

There are analogous programs throughout the United States, including Louisville, Kentucky, where Charlie Johnson operated Active Transportation. There, the Urban League has a job training program, similar to MOED’s, which is funded by a private industry council. (Tr. 158.) Charlie Johnson utilized the services of the Urban League in Louisville to recruit minorities for Active Transportation. He also engaged the services of similar agencies in Atlanta, Georgia, and San Antonio, Texas. (Tr. 159–160.)

On November 15, 2001, David Johnson phoned MOED inquiring about its services. (Tr. 297, 894–895; GC Exh. 21, P11, entry note 38.)[8]  The call was referred to Susan Tagliaferro, a MOED business liaison, for followup.[9] Later that day, she provided Lisa Lunsford, NCS’ consultant, with an overview of MOED’s services and started to gather information about NCS’ business and hiring needs.  (Tr. 297; GC Exh. 45.)  Over the next few days, Tagliaferro and Lunsford spoke on the phone and exchanged e-mails. (GC Exhs. 45–46; Tr. 298.) Tagliaferro testified that to the best of her recollection she was told by either Lisa Lunsford or Charlie Johnson that NCS was not a union company. (Tr. 299.)[10]

Lunsford provided Tagliaferro with a completed application and job description for a yardman. (GC Exhs. 48–49.) Lunsford also told Tagliaferro that the facility involved was the GM assembly plant on Broening Highway. (Tr. 306.) Tagliaferro testified, however, that she was unaware that a union represented the Leaseway employees. (Tr. 299.) A meeting was arranged for November 30.

On November 30, MOED Officials Edith Brown-Johnson, Deborah Holland, and Romella Stevens met with David Johnson and Charlie Ross for NCS.  The purpose of the meeting was to discuss arrangements for hiring and training NCS employees.  According to David Johnson, he opened the meeting by telling the MOED representatives that NCS was a new company looking to hire approximately 15 employees and that the Company had received work at the GM Broening Highway plant (Baltimore assembly plant).  (Tr. 896.)  The MOED staff told Johnson and Ross that job seekers would be located through four career centers, that MOED would advertise the job opportunity internally, and that those who came to the career centers could then apply for the positions.  (Tr. 386.)  Brown-Johnson reviewed NCS’ customized training application, which specified the number of people to be trained, the starting wage and benefits, and the prerequisites for hiring.  (Tr. 387; GC Exh. 48.) A valid driver’s license was required, driving experience was helpful, but a high school degree was not required. Instead, an applicant needed only 8th grade reading and math skills. David Johnson requested that a 1-day mass interviewing session be held at one of MOED’s career centers. (Tr. 385.)

During the meeting, Edith Brown-Johnson asked David Johnson if NCS was a union company and he responded, “No.” (Tr. 389, 896.)[11]  Deborah Holland, a MOED work force development specialist, testified that David Johnson mentioned that NCS was taking over a company.  She testified that when she asked him if NCS was “going to hire any people from the old company,” David Johnson stated, “No.” (Tr. 678, 685.)[12]  David Johnson testified that he did not tell Holland or anyone else at the meeting that NCS would not hire any former Leaseway employees. (Tr. 896.) However, he did not deny that 1 week later Holland asked him the same question and he told her again that NCS would not hire any Leaseway employees.

The initial training budget for NCS was approximately $38,000 of which 50 percent or $19,000 would be subsidized by MOED.[13]  (GC Exh. 67; Tr. 391.) The prescreened applicant interviews were scheduled for December 7, 2001, at MOED’s Eastside Career Center. After the November 30 meeting ended, Brown-Johnson prepared a customized training alert (GC Exh. 50) that was e-mailed to the career centers and faxed out to MOED’s partners.  It was not placed in any local newspapers.  MOED prescreened the NCS applicants. (Tr. 313; GC Exh. 51.)

G. The Teamsters Demand Recognition and
 Request to Bargain

By letter, dated November 30, 2001, Charlie Johnson notified Teamsters Business Representative John McLain that NCS “was awarded the releasing and haul away business as a logistics provider for General Motors” effective January 2, 2002.  (GC Exh. 23.) GM asked Johnson to send this letter because the Teamsters planned a demonstration at the GM plant on December 4, 2001.  (Tr. 91.)[14]

At 4:05 p.m. on December 4, McLain unsuccessfully attempted to call Charlie Johnson at 702–638–8080, the number that Johnson gave in his November 30 letter. McLain testified that he left a message with a person who answered the phone asking Johnson to call him.  (Tr. 445.) Charlie Johnson testified that he never got the message and McLain testified that he never got a return call. On December 5, McLain faxed a letter to Johnson which, in relevant part, stated:

 

You are a signatory of a Work Preservation Agreement under the National Master Automobile Transporters Agreement Bargaining Unit. Your November 30, 2001 letter claims that some business entity you are Chairman of named “New Concept Solutions” has been “awarded the releasing and haul away business as a logistics provider for General Motors.”

 

Based upon this information, Teamsters Local 557, with the consent and participation of Teamsters National Automobile Transporter Industry Negotiating Committee (TNATINC), demands that you and your new entity meet and bargain regarding the mandatory subjects of bargaining relating to those NMATA bargaining unit employees affected by your purported award of General Motors releasing and haul away business. Such meeting must take place in Baltimore on either December 10, December 13, 14 or December 17, 18 or 19.  [GC Exh. 24.]

 

McLain sought to negotiate with NCS on behalf of the Leaseway employees because it thought that Charlie Johnson still owned Active Transportation Company and that he was still a signatory to the national master agreement. (Tr. 466–468, 470.)

By letter, dated December 6, 2001, Attorney Marty Klaper, whose law firm represented NCS at the time, advised McLain that as of July 26, 2001, Charlie Johnson no longer had an ownership interest in Active Transportation Company and that he was no longer a member of the National Automobile Transportation Industry Negotiating Committee. (R. Exh. 1.) Klaper further advised that Johnson had no obligation to engage in bargaining with the Teamsters.

H. NCS Screens and Hires its Work Force

On December 7, 2001, NCS interviewed several employees at the MOED Eastside Training Center. (Tr. 393.) Deborah Holland assisted in processing the prescreened applicants. The actual interviews were conducted by David Johnson and Charles Ross. By the end of the day, NCS had selected 12 prospective employees. (Tr. 395, 901.) Nine African Americans, two Caucasians, and one Hispanic.[15]

I. Leaseway Employees Seek Jobs with NCS

On Friday, December 14, 2001, a MOED Rapid Response team met with the Leaseway employees, to discuss unemployment, searching for jobs, and training.[16] James Holland Sr., a long-time Leaseway employee, testified that he was on his way to this meeting when he was stopped by Leaseway Supervisor Howard Huff, who told him that he wanted to hire some the Leaseway employees for NCS, including Holland’s son, James Holland Jr., who also worked for Leaseway.  (Tr. 525.)  Holland Jr. likewise testified that Huff asked him if he would be interested in working for NCS, if he could get him a position. Holland Jr. told Huff, “Yes, even if there was a pay cut.” (Tr. 511.)  Holland Junior further testified that when he asked Huff if the union would be involved and if other Leaseway employees would be hired, Huff stated that he did not know, but that he would get back to him.

Union Shop Steward John Moe also asked Huff on December 14 if NCS was going to hire Leaseway employees. (Tr. 480-481.) Moe testified that when he asked Huff about the possibility of employment with the new company, Huff looked at him strangely and replied that the pay scale was going to be about $13 an hour. Moe responded that he would rather make $13 an hour than nothing and that some of the other employees may also be willing to work for that wage. (Tr. 482.) Huff told Moe that he would talk to Charlie Johnson and get back to him.

A short time later, Teamsters Business Representative John McLain also asked Huff if NCS was going to hire any Leaseway employees.  (Tr. 456.) Huff told him that he did not know, but that he would find out. In the meantime, McLain told Moe to make a list of all the Leaseway employees who were interested in working for NCS. (Tr. 457.) On Wednesday, December 19, Moe asked Huff again if NCS was going to hire any Leaseway employees. Moe testified that Huff told him “that Mr. Charlie Johnson was bringing his own people and didn’t want to hire any current employees of Leaseway.”  (Tr. 483.) Huff later made the same statement to McLain.  (Tr. 456.) Moe nevertheless followed McLain’s instructions. He polled the employees and made a list of 16 Leaseway employees who were interested in employment with NCS. (Tr. 483; GC Exh. 74.) Four of those employees were African American.[17]  On December 28, 2001, the last day of Leaseway’s operation, Moe gave the list to Huff. 

J. Charlie Johnson Calls Ron Borges

Ron Borges was the national director of the Federation of Private Employees (FOPE), an AFL–CIO affiliated labor organization. He formerly was employed as the vice president of labor relations for Ryder Trucking Company. He, along with Charlie Johnson, was a member of the Employer Committee of the National Automobile Transporters, Labor Division, under the national master agreement. (GC Exh. 3, p. 116.) The two got to know each other fairly well by working on the bargaining committee and by socializing together. (Tr. 171.)

Ryder eventually was bought by another carrier. Borges lost his job. According to Johnson, he ran into Borges in November 2001 coming out of a trucking company owned by another friend of Johnson. Borges told Johnson that he was working for a union. (Tr. 172–173.) According to Johnson, Borges told him that he represented this other friend’s employees and told Johnson “if you ever do anything would you let me come in and talk to your people.” (Tr. 173.) Johnson replied, “Yes,” and Borges told him, “[W]ell talk to John because John can tell you that we have a good relationship and so forth.”  (Tr. 173.)[18] 

According to Charlie Johnson, on December 17, he phoned Ron Borges and “I told Ron I was coming in and that if he wanted to he could come in and talk to the people on the 18th.” (Tr. 174; 98.)  Johnson testified that Borges actually drove from the Detroit, Michigan area to Baltimore, Maryland, that same day, arriving the night of December 17. He phoned Johnson when he had arrived at the hotel.  (Tr. 174.)  In the meantime, Charlie Johnson had phoned NCS’ Baltimore legal counsel, Attorney Michael McGuire, who testified that Johnson told him that “AFL–CIO affiliate Ron Borges, was going to be in town and that Mr. Johnson was going to allow him, Borges, access to his employees and would we please get that draft contract out and fill in the name of that union just in case the employees were interested in the union.”[19]  (Tr. 703.)

K. Orientation Begins and FOPE Solicits Members

In the meantime, on December 17, NCS began orientation and offsite training for its newly hired employees at the MOED Eastside Training Center.  (Tr. 239.) The first few days consisted of orientation during which the new hires watched video tapes on releasing, rail loading, and parking cars, as well as how to secure vehicles to rail cars. (Tr. 240; 902.) Training began the second week at the Bethel AME Church in downtown Baltimore. Half the day was spent in class and the other half was spent on a gravel parking lot where the new employees drove rented vehicles and practiced parking them. (Tr. 249; 630; 903.) Orientation and training were mandatory and the employees were paid for the time.  (Tr. 631.)

On the second day of orientation, Charlie Johnson spoke to the group of new hires. Karen Ayers, who was an NCS trainee, testified that Charlie Johnson gave a speech about the Company and his philosophy. Johnson also told the trainees that their starting wage would be $11 an hour, which surprised Ayers and the others because MOED had told them it would be $15 an hour. (Tr. 240.) He also told them that it was possible that they might receive $11.50 an hour. (Tr. 280.) At the end of the speech, Charlie Johnson told the group he wanted to them to meet an old friend, who he had worked with previously, that he was a really nice guy, and that everyone should give him their full attention. (Tr. 241, 270; 632.) Johnson left, and Ron Borges came in the room. (Tr. 174–175.)

Borges told the NCS trainees that he was a union representative and what his union could do for them. He told the trainees that he could do better than the $11 an hour that Charlie Johnson was going to pay them. (Tr. 243; 632–633.) Karen Ayers testified that Borges proposed asking for $11.50 an hour and for 50 cent increases every year. (Tr. 244.) He passed out authorization cards to join the union, but did not tell them the purpose of the cards. According to Karen Ayers, Borges told the trainees that “it would be best if everyone [joined]” and that “he would like to get things taken care of quickly because he needed to leave town soon.” (Tr. 243.)

Every trainee signed an authorization card. Borges collected the cards and the group took a lunchbreak.[20]

While the trainees were taking a break, Borges met with Charlie Johnson. (Tr. 244–245; 634–635.) About 30 minutes later, the trainees returned from break and Borges told them that he had gotten them $11.50 an hour and a 50-cent raise in January, and that they would discuss other items later.  (Tr. 245; 636.)  Charlie Johnson, however, denied that he discussed wages with Borges at this point. (Tr. 101, 102.) He testified that during the break Borges told him that he had signed cards, but Johnson did not look at the cards. Instead, he told Borges he wanted to call his attorney.

While Borges was updating the trainees, Charlie Johnson phoned Attorney McGuire, who testified that Johnson “called us mid-morning on the 18th and said that Borges had made a verbal demand for recognition and that . . . could we arrange for a neutral to do a card check.” (Tr. 703.) Charlie Johnson and Borges then drove separately to the law firm of Shawe and Rosenthal for a card check. In the meantime, McGuire arranged for Attorney Charles Siegal, in the law firm of Blades and Rosenfeld, to serve as a neutral. (Tr. 704.) Around noon on December 18, Charlie Johnson, David Johnson, and Ron Borges arrived at McGuire’s office. A short time later, Siegel joined them. Borges and Siegel went into a conference room to check the cards against a list of employees and their W-4 forms. When they came out, Siegel signed a form certifying that a majority of the NCS trainees had signed cards designating FOPE as their exclusive collective-bargaining representative.  (R. Exh. 6; Tr. 704.)

After the card check and recognition, Attorney McGuire gave Borges the typed draft of the collective-bargaining agreement he previously prepared with FOPE’s name already typed in the contract.  (Tr. 706.) According to McGuire, “Borges seemed to be at least familiar with what the basics were that the—what the package was that the company was already offering the employees, the wages and the benefits, and so forth.” (Tr. 707; 731.)  As they went through the draft contract Borges proposed some changes to the probationary period, vacation, and wages, and a tentative agreement was reached. McGuire finalized the contract on December 19, Charlie Johnson signed it on December 20,[21] it was mailed to Ron Borges, who signed and dated it December 31, and mailed it back to McGuire.  (GC Exh. 4; Tr. 708.) McGuire testified, however, that the parties agreed the contract would be effective December 20, 2001.  (Tr. 737.)

On December 19, while McGuire was preparing the final contract, Borges met with the NCS trainees again at the MOED Eastside Training Center to tell his new members what was in the new contract.  (Tr. 246.) By a show of hands, the group unanimously voted to accept the contract. (GC Exh. 43(b); Tr. 281–282.)

On December 28, 2001, several NCS employees began working at the GM Baltimore assembly plant, at which time Leaseway turned over its inventory to NCS. (Tr. 10–104.) Among those employees were Supervisors Marty Weathers and Howard Huff, Office Manager Sharon Huff, and new hired yardman Alan Reardon. 

L. The Teamsters Handbill the GM Facility

On December 31, 2001, several Teamsters representatives stood outside the Holabird Avenue gate of the GM Baltimore assembly plant (near the entrance for the NCS employees) attempting to pass out Teamsters materials to the NCS employees as they entered the gate to the plant. (Tr. 582–583; GC Exh. 80.)

On January 2, 2002, Teamsters Vice President William Alexander, Business Representative John McLain, and Shop Stewards Jack Hamm and John Moe again distributed Teamsters literature outside the gate near the entrance for the NCS employees. Around 1 p.m., Alexander and Teamsters Attorney Michael Wallington entered the parking lot of the GM facility in an attempt to speak to NCS employees. As they spoke to a truckdriver, Charlie Johnson drove up in a car and asked them if they had permission to be on the property.  (Tr. 585; 844–845.) Wallington asked Johnson if he had permission to be on the property, and Johnson replied that he had a signed lease. Johnson told Alexander and Wallington that if they wanted to be on the property they needed his permission. Alexander stated that he attempted to call Johnson, but never received a return phone call.  (Tr. 586.)  Johnson told the two men that he had nothing to do with the Teamsters and asked them to leave the property, which they did.

Following this incident, Charlie Johnson hired security guards to monitor the parking lot.  The guards began working on January 3, and remained onsite for approximately 30 days. (Tr. 847.)  Around the same time, Charlie Johnson held a meeting of all NCS employees in the lunchroom.  Karen Ayers testified that Johnson told the group to ignore the Teamsters and that he had hired an off-duty police officer to patrol the yard for the employees’ protection. (Tr. 256–257.) She further testified that Charlie Johnson told the employees that the Teamsters had put Leaseway out of business because of the high wages the Company had to pay and that Charlie Johnson could not afford to run the Company like that, which was why they were receiving $11.50.  (Tr. 257.) Johnson denied making the latter statement.

The Teamsters continued leafleting at the GM Baltimore assembly plant on and off through March. When they were not leafleting, three or four former Leaseway employees would observe the NCS employees working from a vacant lot across the street from the GM facility. (Tr. 567, 570.) 

M. The Teamsters Learn that FOPE Represents
 the NCS Employees

On January 10, 2002, Teamsters Business Representative John McLain visited the GM Baltimore assembly plant office complex where he encountered Howard Huff.  McLain began questioning Huff in attempt to find out where NCS got its new employees and who represented them. (Tr. 460–462.) Huff eventually told McLain that the employees had been referred by MOED and that they were members of FOPE.

On February 4, 2002, Teamsters President William Alexander walked into MOED’s offices looking for Tagliaferro and Brown-Johnson, who agreed to meet with him even though he did not have an appointment.  (Tr. 330, 396.)  According to Tagliaferro, Alexander identified himself as a teamsters local president and told them that he had some questions and concerns about MOED recruiting employees for NCS. (Tr. 330–331.) Alexander asserted that former Leaseway employees had been excluded from the hiring process and demanded information regarding the recently hired NCS employees.  Tagliaferro and Brown-Johnson told Alexander that could not release any information without authorization from the city of Baltimore’s attorney.

N. NCS Seeks to Supplements the MOED Contract

Tagliaferro and Brown-Johnson also did not tell Alexander that NCS was in the process of filing additional positions.  (GC Exhs. 61–62.) They also did not tell him that MOED had approved NCS’ request for more recruits and training. (Tr. 396; GC Exh. 65.)  On February 8 and 13, interviews were conducted at the MOED Career Center and seven more employees were hired. (Tr. 108; 333–334, 397; GC Exh. 52.)  As a re