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.

Wal-Mart Stores, Inc. and United Food and Commercial Workers International Union, CLC.[1] Cases 28–CA–16831, 28–CA–16886, 28–CA–16887, 28–CA–16932, 28–CA–17001, 28–CA–17012, 28–CA–17056, 28–CA–17157, and 28–CA–17208

August 20, 2007

DECISION AND ORDER

By Chairman Battista and Members Schaumber and Walsh

On September 24, 2002, Administrative Law Judge Albert A. Metz issued the attached decision.  The Respondent filed exceptions and a supporting brief.  The General Counsel and the Charging Party each filed an answering brief to the Respondent’s exceptions, and the Respondent filed a brief in reply to the General Counsel.  The General Counsel and the Charging Party each filed cross-exceptions and a supporting brief.  The Respondent filed answering briefs to the cross-exceptions of the General Counsel and the Charging Party.

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 only to the extent consistent with this Decision and Order and to adopt the recommended Order as modified and set forth in full below.  

i. summary findings and rulings

This case involves allegations that between June 2000 and May 2001 the Respondent, Wal-Mart Stores, Inc., violated Section 8(a)(1) and (3) of the Act during a campaign by the United Food and Commercial Workers International Union (the Union) to organize the Respondent’s employees at three of its retail stores in Las Vegas, Nevada.  The stores were located at South Rainbow Boulevard (South Rainbow), East Tropicana Avenue (East Tropicana), and West Craig Road (West Craig).

Regarding the allegations of unfair labor practices at South Rainbow, we (1) affirm the judge’s finding that the Respondent violated Section 8(a)(1) on June 17, 2000, by disparaging employee Avis Hammond’s union activity and inviting him to quit, but (2) reverse the judge’s finding that the Respondent violated Section 8(a)(1) on July 12 and August 30, 2000, by warning Hammond for distributing union literature.[3]  We adopt the judge’s dismissals of the allegations that the Respondent (1) promulgated and enforced an unlawful solicitation and distribution rule on July 12, 2000 (in addition to disparately enforcing that rule), and (2) engaged in surveillance of union activity in the store breakroom.[4]

Regarding the allegations at East Tropicana, we unanimously (1) affirm the judge’s finding that the Respondent violated Section 8(a)(3) and (1) on October 20, 2000, by warning employee Diana (Angie) Griego for solicitation and distribution, and (2) reverse the judge’s finding that the Respondent did not violate Section 8(a)(3) and (1) on December 15, 2000, by issuing a written warning to Griego for union solicitation and distribution.  We reverse the following violations found by the judge: (1) that the Respondent violated Section 8(a)(1) on April 26, 2001, by creating the impression of surveillance of its employees’ union activity,[5] and (2) that the Respondent violated Section 8(a)(1) on April 10 by denying Griego’s request for a coworker representative to be present at an interview with managers.[6]

We unanimously adopt the judge’s finding that the Respondent violated Section 8(a)(1) in December 2000 by threatening employee Valerie Gonzalez with withdrawal of benefits.  We also unanimously adopt the judge’s dismissal of allegations that the Respondent (1) promulgated and enforced an unlawful solicitation and distribution rule on October 28, 2000, in mid-November 2000, and on December 15, 2000, March 10 and May 17, 2001;[7] (2) created the impression of surveillance in early November 2000; (3) prohibited union-related conversation outside the breakroom on May 17, 2001; and (4) engaged in surveillance of union activity in the breakroom.[8]

Regarding the allegations at West Craig, we unanimously affirm the judge’s finding that the Respondent violated Section 8(a)(1) on December 12, 2000, by interfering with union handbilling, as well as his dismissal of the allegation that the Respondent unlawfully created the impression of surveillance by observing the handbilling.

Finally, we amend the judge’s remedy in two respects. First, we remove the provision ordering the Respondent to offer Griego instatement to the position of pharmacy clerk, and we limit her entitlement to backpay and benefits to the period from the date she was denied this position to the date she voluntarily resigned from the Respondent’s employ.  Second, we shall order the Respondent to post separate notices conforming to the specific violations found at each store.[9]

ii. unfair labor practices

A. South Rainbow

1. Disparagement and invitation to quit

On June 17, 2000, Avis Hammond, who was employed as a greeter at the Respondent’s South Rainbow store, brought 20 copies of a union press release to the store.  The press release, entitled “Wal-Mart Layoffs Approaching ‘Critical Mass’ for Over-worked Workers Says UFCW,” alleged that the Union had received numerous reports of layoffs from aggrieved Wal-Mart employees and that, because employees felt unable to talk to management about the issue, they were “coming to the union in droves.”  The press release included the addresses of two websites that employees could use to contact the Union.

Hammond handed out copies of the press release to other employees.  He also gave a copy to Chuck Salby, the Respondent’s district manager, who responded angrily, “If you believe that, you’re [not] worthy of working at Wal-Mart.” Salby then tore up the press release and threw it in a trash can.  The judge found that, by these actions, Salby disparaged Hammond’s union activity and invited him to quit his employment, thereby violating Section 8(a)(1).

The Respondent excepts to the judge’s finding on the ground that Hammond was not engaged in union-related or concerted activity.  The Respondent asserts that the evidence establishes that Hammond distributed the press release merely to protest a reduction in his own hours of work. We find no merit in the Respondent’s argument.  Hammond’s distribution of the union press release was plainly union-related activity, and therefore protected by Section 7 of the Act. 

The Respondent and our dissenting colleague further contend that Salby’s conduct constituted “free speech,” protected under Section 8(c).  We disagree.  Although Section 8(c) provides that “[t]he expressing of views, argument, or opinion” are not unlawful if “such expression contains no threat of reprisal or force or promise of benefit,” Salby’s conduct was not merely the expression of personal opinion, but both disparaged Hammond for engaging in protected activities and suggested that his protected activity was incompatible with continued employment.  We  therefore  adopt  the judge’s  finding that,


through Salby’s conduct, the Respondent violated Section 8(a)(1) of the Act by disparaging Hammond’s union activity and inviting him to quit.[10]

2. Warnings for solicitation and distribution

In July 2000, employee Maxine Matervich reported to the Respondent that, while she was working in her regular work area, Hammond solicited her concerning the Union, provided her with union literature, and asked her to distribute that literature.  On July 12, 2000, South Rainbow store Comanager Jim Eble summoned employee Hammond to a meeting and informed Hammond that there was evidence that he had violated the Respondent’s solicitation and distribution policy by handing out nonwork-related literature on the sales floor.  Eble told Hammond that he (Hammond) was receiving a “verbal coaching”[11] for this activity, and Eble provided Hammond a copy of the Respondent’s policy to read.  Eble took this action on instructions from Rainbow Store Manager Robert Knickerbocker.  On August 30, 2000, Knickerbocker gave Hammond a written coaching after Hammond again violated the Respondent’s solicitation and distribution policy.

Although the judge credited evidence that Hammond had violated the Respondent’s solicitation and distribution policy before July 12, and again in August, the judge nevertheless concluded that both coachings violated the Act because the Respondent had disparately enforced its solicitation and distribution policy against union activity.  This disparate treatment finding was premised solely on the testimony of one employee—Norine Sorenson.  Sorenson stated that, “sometime during 2000,” Rainbow employee Pam Robinson solicited Sorenson to buy Avon products and candy, that Robinson kept her Avon book on the desk of then-department manager, Glenda Curry,[12] located in the backroom of the photo department, and that the Respondent imposed no discipline for this violation of its solicitation and distribution policy.

The Respondent excepts to the judge’s finding, arguing, inter alia, that the extent of unpunished nonunion solicitation was too limited to show that the Respondent’s discipline of Hammond was disparate.  We agree.[13]

It is well settled that “isolated incidents of digression from a no-solicitation rule . . . do not reflect the type of widespread worktime solicitation indicative of disparate application of the rule.”  Albertson’s Inc., 289 NLRB 177, 191 (1988).[14]  Here, the only evidence of tolerated nonunion solicitation is Sorensen’s testimony that a single employee—Robinson—sold Avon products and candy in early 2000.  Sorenson did not testify regarding how many times Robinson solicited her or whether Robinson solicited anyone else.  Thus, the General Counsel showed no more than that one employee engaged in one act of tolerated solicitation.  As more than 400 people worked at the South Rainbow store, we find that this quantum of proven nonunion solicitation is insufficient to show that the Respondent enforced its no-solicitation rule disparately against union activity.[15]  Accordingly, we dismiss the allegations arising from the warnings to Hammond.[16]

B. East Tropicana

1. October 20, 2000 warning for solicitation

Diana (Angie) Griego was employed as a cashier at the Respondent’s Tropicana store during the union organizing drive. She campaigned openly for the Union and, according to the judge’s uncontested findings, the Respondent—subsequent to the October 2000 warning—violated Section 8(a)(3) by denying her the position of pharmacy clerk in January 2001 and violated Section 8(a)(1) by prohibiting her from soliciting customers outside the store in March 2001.

On October 20, 2000, East Tropicana Store Manager Mark Dutton gave Griego a “verbal coaching” for allegedly engaging in union solicitation and distribution on the sales floor.  Dutton testified that he had received complaints from five employees that Griego engaged in such activity and that Assistant Manager Sheryl Seals told him that another three employees had also complained about Griego’s solicitation and distribution.  Neither Seals nor any of the employees who allegedly complained about Griego’s conduct testified at the hearing.  Griego denied that she violated the Respondent’s solicitation and distribution policy.

Crediting Griego’s denial, the judge found that the Respondent failed to present sufficient evidence to show that Griego in fact violated its policy, and that the General Counsel proved by a preponderance of the evidence that the warning was issued in retaliation for Griego’s union activity.  The judge therefore concluded that the warning violated Section 8(a)(3) and (1) of the Act.

The Respondent excepts to this finding on the ground that the judge misallocated the burden of proof.  In particular, the Respondent cites Burnup & Sims, 379 U.S. 21, 23 fn. 3 (1964), for the proposition that where an employer disciplines an employee on the basis of a reasonably held good-faith belief that the employee has engaged in misconduct, the General Counsel has the burden of proving that the employee did not, in fact, engage in that misconduct.  The Respondent also contends that, at the time that the warning was issued, Griego did not deny having violated the solicitation and distribution policy.

We affirm the judge’s finding.  The Burnup & Sims analysis is normally reserved for violations of Section 8(a)(1), and the judge found that this discipline violated Section 8(a)(3).  Nevertheless, even under a Burnup & Sims analysis, we find that the Respondent’s defense would fail.  That is, assuming that the Respondent demonstrated its initial good-faith belief that Griego had violated its solicitation and distribution policy, the General Counsel established that this belief was mistaken because Griego credibly denied violating the Respondent’s solicitation and distribution policy during the relevant timeframe.  Accordingly, even assuming that the Burnup & Sims framework is the correct analysis, the judge properly found that the Respondent violated the Act by disciplining Griego on October 20.

2. December 15, 2000 warning for distribution

On December 15, 2000, employee Griego was summoned to a meeting with Managers Dutton and Seals in Dutton’s office, at which she was issued a “written coaching” for distributing union material on the sales floor in violation of the Company’s solicitation and distribution policy.  The written coaching referenced Griego’s prior coaching on October 20 and stated, “[t]he next level of corrective action [will] be: Decision making day” if Griego persisted in this conduct.

The judge dismissed the allegation that Griego’s December 15 warning violated Section 8(a)(3) and (1) of the Act.  He did so on the ground that Griego had, on this occasion, violated the Respondent’s solicitation and distribution policy, and that the evidence did not demonstrate disparate treatment.

The General Counsel and the Charging Party except to this dismissal, contending that Griego’s discipline was more severe than would have been warranted under a nondiscriminatory application of the Respondent’s policies, because it built upon the unlawful discipline issued to her on October 20.  We find merit in this argument. 

As discussed above, on October 20, 2000, the Respondent gave Griego a “verbal coaching” for violations of its solicitation and distribution policy that she had not, in fact, committed.  Therefore, but for that unlawful discipline, Griego would have received, at most, a “verbal coaching” on December 15, instead of the next step in the progressive discipline procedure, a “written coaching.”[17]  Accordingly, because the Respondent disciplined Griego on December 15 more severely than it would have done had it not earlier discriminated against her, the December 15 discipline was discriminatory.  Accordingly, we reverse the judge and find that the December 15 discipline violated Section 8(a)(3) and (1) of the Act.   

3. April 26, 2001 creation of the impression
of surveillance

On April 26, after Griego returned from lunch with fellow East Tropicana employee Valerie Gonzalez, they stopped inside their work area to talk to employee Josephine Ross.  Griego asked Ross if she would be available to testify before the Board.  During the conversation, Griego handed Ross what the judge described as “a brightly colored, easily identifiable union pen.”  At that point, Assistant Manager Connie Comitor approached the three employees and said to them: “[Y]ou need to take this to the breakroom.[18]  You know it’s not allowed on the sales floor.” Comitor had observed Griego handing out a union pen earlier that day in a hallway of the store. 

On those facts, the judge found that Comitor’s conduct violated Section 8(a)(1) by creating the impression of surveillance in light of her “concentrated vigilance of the employees’ union activities.”  The Respondent excepts to this finding on the ground that the union activity at issue was conducted openly and that Comitor did nothing out of the ordinary by observing it.

Contrary to the judge and our dissenting colleague, we find that Comitor’s conduct did not create an unlawful impression of surveillance.  It is well settled that management officials do not create an unlawful impression of surveillance by appearing to monitor union activity that is conducted openly, particularly when it occurs on company premises, unless the officials act in a manner that is out of the ordinary.  See, e.g., Rogers Electric, Inc., 346 NLRB No. 53, slip op. at 2 (2006); Loudon Steel, Inc., 340 NLRB 307, 313 (2003).  Here, Griego handed out a brightly colored union pen openly on the sales floor, a part of the store where employees could reasonably expect management officials to be present in the ordinary course of business.  Moreover, the credited evidence does not support a conclusion that Comitor’s behavior was out of the ordinary.

We recognize that there were two instances in which Comitor observed union activity that day.  However, those instances were neither alleged nor found to be surveillance or creating the impression of surveillance.  For all that appears they were a consequence of normal observation.  Given the openness of Griego’s union activities, and the likelihood that Comitor’s duties as an assistant manager would involve the observation of employee activity throughout the store, those two instances are insufficient to establish that her observation of Griego’s activity,[19]  reasonably created on impression that Comitor was spying on employees. 

Accordingly, we reverse the judge and find that the Respondent did not create an unlawful impression of surveillance by speaking to Griego after observing her hand out a union pen.

C. Seizure of Handbills at West Craig

On December 12, 2000, Norine Sorensen, whom the Respondent employed at its South Rainbow store, was distributing union handbills outside the Respondent’s West Craig store when she was approached by Tiffani McClendon, a management trainee at that store.  Sorensen had met McClendon once before but did not recognize her.  As McClendon approached, Sorensen asked her if she was a Wal-Mart employee.  McClendon told her that she was and asked Sorensen if she was from store 1584 (South Rainbow). Sorensen told McClendon that she was from that store and began handing McClendon a handbill.  McClendon angrily asked Sorensen, “What are you out here doing this for?” grabbed all of Sorensen’s handbills, and drove off in her car.

The judge found that McClendon was the Respondent’s agent during this encounter and that, by her conduct, the Respondent coerced and interfered with union activity in violation of Section 8(a)(1) of the Act.  In finding that McClendon was the Respondent’s agent, the judge relied on evidence showing that the Respondent’s management trainees, including McClendon, were aligned with management rather than with the Respondent’s statutory employees.  In particular, the judge relied on evidence showing the management trainees’ responsibility for directing employees’ work, their presence at disciplinary meetings as representatives of management, their longer work hours, higher pay, and different dress from employees, and their attendance at management meetings.  The judge also relied on evidence that the Respondent instructed management trainees to report on union activity with the goal of “stopping” it.   

In its exceptions, the Respondent argues, inter alia, that it was not liable for McClendon’s seizure of the flyers because the judge erred in finding that she had apparent authority to take this action on the Respondent’s behalf.  The Respondent contends that the judge’s finding was incorrect as a matter of law because the General Counsel presented no evidence that the Company manifested to Sorensen, in particular, that it had authorized management trainees in general to seize union flyers, or that Sorensen believed—either actually or reasonably—that McClendon had authority to do so.

For the reasons stated below, we find that McClendon was the Respondent’s agent when she seized the flyers from Sorensen because she had actual authority to take this action on the Respondent’s behalf.  Because we find that McClendon possessed actual authority, we need not consider the Respondent’s argument that she acted without apparent authority.

The Board applies common law agency principles to determine the existence of an agency relationship.  See, e.g., Tyson Fresh Meats, Inc., 343 NLRB 1335, 1336 (2004).  It may, therefore, find an agency relationship between the purported agent and the principal where the agent possesses either actual or apparent authority to act on the principal’s behalf:

 

[A]ctual authority refers to the power of an agent to act on his principal’s behalf when that power is created by the principal’s manifestation to him. That manifestation may be either express or implied. Apparent authority, on the other hand, results from a manifestation by a principal to a third party that another is his agent. 

 

Id., quoting Communications Workers Local 9431 (Pacific Bell), 304 NLRB 446 fn. 4 (1991).

For responsibility to attach under either theory of agency, it is not necessary that the principal expressly authorize, actually desire, or even know of the action in question.  Aprincipal is responsible for its agent’s actions that are taken in furtherance of the principal’s interest and fall within the general scope of authority attributed to the agent.”  Tyson Fresh Meats, supra, 343 NLRB at 1337, quoting Bio-Medical of Puerto Rico, 269 NLRB 827, 828 (1984).  Moreover, under the common law of agency, a principal may be responsible for its agent’s actions if the agent reasonably believed from the principal’s manifestations to the agent that the principal wished the agent to undertake those actions.  See Restatement 2d, Agency, § 33. 

Applying these principles, we find that the Respondent was liable for McClendon’s seizure of the flyers, because the General Counsel has shown that McClendon’s action was within the scope of her actual authority.  In making this finding, we rely on credited evidence that the Respondent communicated to McClendon, along with other management trainees, that the Company was opposed to unionization and that trainees were to report on union activity with the goal of “stopping” it.  Given that evidence, we find that, even though there is no record evidence that the Respondent expressly authorized McClendon to seize the flyers, McClendon would reasonably have believed that the Respondent desired her to do so.  We therefore affirm the judge’s conclusion that the Respondent violated Section 8(a)(1) through McClendon’s action.

iii. remedial issues

A. Griego’s Entitlement to Reinstatement

According to the judge’s uncontested finding, the Respondent violated Section 8(a)(3) when it failed to promote Griego to pharmacy cashier at the East Tropicana store in January 2001.  Thereafter, Griego left her employment with the Respondent in May 2001.  She testified at the hearing that, due to some medical problems, she decided to quit her employment on the advice of her doctor.  Notwithstanding the judge’s finding that Griego “voluntarily left her employment in May 2001,” he recommended that, to remedy its discrimination against Griego, the Respondent be ordered to offer Griego instatement to the pharmacy position or its equivalent, and to make Griego whole for any loss of earnings and benefits she suffered between the unlawful failure to hire and the offer of instatement.

The Respondent excepts to the judge’s recommendation on the ground that, because Griego left her employment with the Respondent voluntarily, she is not entitled to an instatement order nor to backpay beyond the date of her resignation.  The General Counsel responds that Griego’s entitlement to instatement and the duration of her entitlement to backpay should be decided at compliance because that is the Board’s usual practice and the record is incomplete regarding the circumstances of Griego’s resignation.

We agree with the Respondent.  Contrary to the General Counsel and our dissenting colleague, it is not the Board’s usual practice to leave to compliance the issue of whether an employee who voluntarily quits after being subjected to unlawful discrimination is entitled to an offer of reinstatement and backpay.  Rather, the Board decides from the record of the merits hearing whether the respondent’s unlawful conduct caused the employee’s resignation.  See, e.g., Sunrise Senior Living, Inc., 344 NLRB No. 151, slip op. at 1, 1 fn. 5 (2005), enfd. mem. 183 Fed. Appx. 326 (4th Cir. 2006); Dauman Pallet, Inc., 314 NLRB 185, 187 (1994).  If the Board finds otherwise, it does not order reinstatement, and it cuts off the Respondent’s backpay liability to the discriminatee as of the date of the discriminatee’s resignation.  Sunrise Senior Living, supra.

Here, Griego testified that she terminated her employment with the Respondent on the advice of her doctor, and there is no affirmative evidence to show that her resignation was in any way related to the Respondent’s failure to offer her the job of pharmacy cashier.[20]  We find, therefore, that her resignation in May was not caused by the Respondent’s unlawful conduct.  Accordingly, we amend the Order by removing the requirement that the Respondent offer Griego instatement to the position of pharmacy clerk, and by limiting the Respondent’s backpay liability to the period between its failure to promote Griego to that position and Griego’s resignation.

B. The Notice to Employees

In his recommended Order, the judge required the Respondent to post the same remedial notice at each of the three locations at which he found that the Respondent had committed unfair labor practices.  The judge did not explain why a consolidated notice was appropriate.

The Respondent argues that the judge erred in ordering the posting of a consolidated notice, contending that this requirement departs from the Board’s usual practice of directing that remedial notices refer only to the specific violations that occurred at the location where the notice is posted. 

Contrary to our dissenting colleague, we find merit in the Respondent’s exception.  In cases such as this one, where different violations of the Act are found at various locations in the same geographic area, the Board orders a common notice when it finds “considerable similarity in the nature of the unfair labor practices” committed at the different locations.  Albertsons, Inc., 307 NLRB 787 (1992), enft. denied mem. 8 F.3d 20 (5th Cir. 1993); G. C. Murphy Co., 216 NLRB 785 (1975).  Where, however, there is only one unfair labor practice common across the different locations, the Board orders the posting of notices conforming to the specific violations found at each store.  F. W. Woolworth Co., 173 NLRB 1146, 11461147 (1968). 

Here, the only unfair labor practice found to have taken place at more than one location was interference with union handbilling, at East Tropicana and West Craig.  With the exception of the June 17, 2000 disparagement of Hammond’s union activity at South Rainbow, the Respondent’s other unfair labor practices were confined to East Tropicana.  Given the more limited nature of the violations at the other stores, the Respondent’s unfair labor practices at each store cannot be fairly characterized as displaying “considerable similarity” to one another.  In these circumstances, we find that a common notice is inappropriate, and we shall modify the Order accordingly.[21]

ORDER

The Respondent, Wal-Mart Stores, Inc., Las Vegas, Nevada, its officers, agents, successors, and assigns, shall

1. Cease and desist from

(a) Disparaging employees’ union activities or inviting them to quit because they support the Union.

(b) Discriminatorily disciplining employees because they have engaged in activities on behalf of the United Food and Commercial Workers International Union, or any other labor organization.

(c) Discriminatorily preventing employees from engaging in solicitations and distributions of union materials or promulgating and enforcing no-solicitation, no-distribution rules that are overly broad and discriminatory.

(d) Preventing or hindering employees from engaging in union activities on the sidewalks and parking lots in front of Respondent’s stores.

(e) Confiscating union literature from employees who are lawfully distributing such materials.

(f) Refusing and failing to select employees for positions in Respondent’s stores because those employees have engaged in union activities.

(g) Interrogating employees concerning their union activities.

(h) Threatening employees with the loss of benefits because they engage in union activities.

(i) 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) Make Diana (Angie) Griego whole for any loss of earnings and other benefits suffered as a result of the discrimination against her, from the date that the Respondent failed to hire her as pharmacy clerk until the date of her voluntary resignation, with interest as prescribed in New Horizons for the Retarded, 283 NLRB 1173 (1987).

(b) Within 14 days from the date of this Order, remove from its files any reference to the unlawful denial of the pharmacy clerk position to Diana Griego and the discriminatory discipline given to Griego and, and within 3 days thereafter notify her in writing that this has been done and that the discriminatory memos and warnings will not be used against her in any way.

(c) 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.

(d) Within 14 days after service by the Region, post at its stores in Las Vegas copies of the attached notices:  the notice marked “Appendix A” at the South Rainbow Boulevard store, the notice marked “Appendix B” at the East Tropicana Avenue store, and the notice marked “Appendix C” at the West Craig Road store.[22]  Copies of the notices, on forms provided by the Regional Director for Region 28, 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 any of the facilities involved in these proceedings, the Respondent shall duplicate and mail, at its own expense, a copy of the notices to all current employees and former employees employed by the Respondent at the closed facility or facilities at any time since June 17, 2000.  Excel Container, Inc., 325 NLRB 17 (1997).

(e) 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.

It is further ordered that the complaint is dismissed insofar as it alleges violations of the Act not specifically found.

    Dated, Washington, D.C.   August 20, 2007

 

 

Robert J. Battista,                                Chairman

 

Peter C. Schaumber,                         Member

 

 (seal)           National Labor Relations Board

 

Member Walsh, dissenting in part.

I agree in most respects with my colleagues.  I disagree, however, with their refusal to adopt the judge’s findings that the Respondent violated the Act at South Rainbow Boulevard (South Rainbow), by disparately enforcing its solicitation and distribution policy against employee Avis Hammond on July 12 and August 30, 2000, and at East Tropicana Avenue (East Tropicana), by creating an unlawful impression of surveillance through its treatment of employee Diana (Angie) Griego on April 26, 2001.  I also disagree with the majority’s refusal to adopt in full the judge’s recommended remedial order:  I would grant the standard instatement and make-whole remedy to Griego for the Respondent’s unlawful denial of a pharmacy clerk position to her, and I would require the Respondent to post the same notice to employees at all three stores.

i. unfair labor practices

A. Disparate Enforcement of Solicitation and
Distribution Policy at South Rainbow

The judge correctly found that on July 12 and August 30, 2000, the Respondent violated Section 8(a)(1) by disparately enforcing its solicitation and distribution policy against employee Hammond’s union activity.  The judge credited the unrebutted testimony of photo lab employee Norine Sorenson, that Pam Robinson, an employee and later a management trainee, sold Avon products and candy in work areas and during work hours over the same period of time that Robinson worked in the camera department. 

Sorenson’s testimony establishes that Robinson’s solicitation was not a one-time incident but a continuing practice.  Specifically, Sorenson testified that Robinson “was selling Avon and sometimes candy” (emphasis added) after Robinson started working in the department in early 2000.  Sorenson also testified that Robinson openly left the Avon catalog on the desk of Department Manager Glenda Curry, further showing that Robinson conducted her solicitation over time and with the condonation, or at very least the knowledge, of management.1  On this record, I would find, in agreement with the judge, that the Respondent tolerated open and ongoing commercial solicitation, and therefore, that the Respondent discriminated when it enforced its solicitation and distribution policy against Hammond for engaging in that activity on behalf of the Union.2

B. Creation of the Impression of Surveillance
at East Tropicana

The judge correctly found that the Respondent created an impression of surveillance on April 26, 2001, when Assistant Manager Connie Comitor approached employees Griego, Valerie Gonzalez, and Josepine Ross after Griego gave Ross a pen bearing a union message, “Be Wise—Organize,” at the entrance to the selling area, and told them to “take it to the breakroom.”  The judge also found that Comitor’s instruction unlawfully discriminated against union activity because the Respondent did not restrict the use or exchange of any other kind of pen—a finding to which the Respondent does not except.

An employer creates an impression of surveillance if employees would reasonably conclude from the employer’s words or conduct that their union activities are being monitored.  Mountaineer Steel, Inc., 326 NLRB 787 (1998), enfd. mem. 8 Fed Appx. 180 (4th Cir. 2001).  If an employer behaves in a manner that is out of the ordinary as it observes union activities, or by its statements or actions  implies that it has done so, it engages in unlawful surveillance or creates an unlawful impression of surveillance, even if the employees’ union activities are conducted openly.  Loudon Steel, Inc., 340 NLRB 307, 313 (2003).  In determining whether an employer’s observation of open union activity is out of the ordinary, the Board takes into account whether the employer’s observations occurred in connection with other coercive behavior.  See Rogers Electric, Inc., 346 NLRB No. 53, slip op. at 2 (2006) (unlawful threats accompanied employer’s display of phone records showing calls made by employees from a company phone in furtherance of their protected activity); Hoschton Garment Co., 279 NLRB 565, 566 (1986) (unlawful attempt to prohibit open union handbilling accompanying observation of that activity); Eddyleon Chocolate Co., 301 NLRB 887, 888, (1991) (unwarranted summoning of police and threat to close plant accompanying observation of open union handbilling).

Here, Griego’s distribution of the union pen was conducted openly on company premises.  However, as explained below, Comitor’s observation of Griego’s activity, particularly when combined with Comitor’s prohibition of this activity, would not have reasonably been perceived as ordinary behavior by management.  The Respondent, through Comitor, therefore created an unlawful impression of surveillance.

First, as Comitor testified, her encounter with Griego over the pen was the second occasion on which she observed Griego distributing pens that day.  Earlier that day, Comitor observed Griego giving a union pen to another coworker at another location.  The fact that on the same day, on two occasions in two different places, a company official with overall managerial responsibilities for a store with some 400 employees was present to observe the union activities of 1 of the 2 active union supporters at the store would strongly suggest to employees that Comitor was paying unusual attention to those activities.  The reasonableness of that inference is supported by the fact that Comitor recorded and reported the encounters, because she “felt it was necessary to have notes taken when we would have any type of reaction regarding this.”  There is no evidence that Comitor made such notes or reports when she gave similar instructions to employees on matters unrelated to the Union.  Moreover, the judge’s inference that Comitor exercised “concentrated vigilance” over Griego’s union activity is supported by the Respondent’s overall system for monitoring and combating union organizing efforts.  This system, set out in a document entitled “Manager’s Toolbox,” required managers to be “constantly alert for efforts by a union to organize your associates” and to report such efforts via a telephone hotline to the labor-management team at Wal-Mart’s Bentonville headquarters.3

Second, even assuming that Comitor’s repeated overt observations of Griego’s pen distribution were not, in themselves, unusual conduct by a management official, her scrutiny of Griego was combined with a discriminatory attempt to prohibit activity that the Respondent ordinarily–that is, when it was not union related—tolerated.  See Hoschton Garment Co., supra at 566; Eddyleon Chocolate Co., supra at 888.

For those reasons, I would find, in agreement with the judge, that Comitor’s overt monitoring of, and intervention against, Griego’s distribution of union pens unlawfully created an impression of surveillance.

ii. remedial issues

A. Griego’s Entitlement to Instatement and Backpay

The Respondent unlawfully denied Griego the position of pharmacy clerk in January 2001.  In May 2001, Griego, who was the object of numerous unfair labor practices, resigned her employment with the Respondent.  In agreement with the judge, I would leave to compliance the issue of whether the Respondent should be ordered to offer Griego instatement to the position of pharmacy clerk and to make her whole for loss of earnings and benefits pending that offer. 

Contrary to my colleagues, the record does not show that Griego’s decision to resign from the Respondent’s employment in May 2001 was the result of medical issues rather than its discrimination against her.  According to Griego’s uncontradicted testimony, she applied for the pharmacy clerk position because she saw that job as a step toward her long-term goal of qualifying as a pharmacy technician.4  In light of that testimony, it is not reasonable to assume that the medical issues Griego referred to in her testimony would have motivated her to quit regardless of where she was working for the Respondent in May 2001.  In any event, Griego’s testimony that she left the Respondent’s employment after being advised to do so by her doctor was not offered to explain why she quit, but merely to clarify when she did so.5  Indeed, immediately after leaving the Respondent’s employ, she took another job, at Albertson’s Fuel Express.  Thus, on the record as it now stands, the majority’s conclusion that Griego would have resigned in any event has little evidentiary support.  And that evidence is a slim basis on which to absolve the Respondent from the usual consequences of its admittedly unlawful conduct.

In these circumstances, I would find, in agreement with the General Counsel, that the record is too unsettled to deprive Griego of instatement and backpay.  Certainly the judge thought that.  Accordingly, I would adopt the judge’s standard instatement and make-whole remedy.  That remedy would allow the Respondent to litigate at compliance whether Griego would have quit even in the absence of its unlawful conduct.  See U.S. Service Industries, 324 NLRB 834, 837 fn. 18 (1997).

B. The Notice Posting Requirement

The judge correctly recommended that the Respondent be ordered to post at each of the three stores at issue in this case a single notice referring to the unfair labor practices committed at all three stores.  Under established precedent, it is appropriate to order an employer that has contemporaneously committed unfair labor practices at separate locations to post the same notice at each of those locations if the unfair labor practices are of a “similarly unlawful character” and if, because the locations are within the same geographic and corporate district, there is “at least reasonable cause for concern that the employees of one store would become aware of the [r]espondent’s similar conduct at the other[s].”6

In the instant case, both of those factors are satisfied.  First, the Respondent’s unfair labor practices were of a “similarly unlawful character” because they all tended to prevent the union from communicating its message to the Respondent’s employees.  Albertson’s, supra at 789.  More particularly, at each of the three stores, the Respondent has been found to have either directly interfered with union solicitation and distribution or to have punished or threatened the few employees who engaged in that activity.  Second, given that violations occurred during the same period, were directed at a single organizing campaign by a single union, and took place within the same metropolitan area, there is “at least reasonable cause for concern” that the employees at each store might become aware of the Respondent’s misconduct at the other stores. Id. 

For those reasons, I would require the Respondent to post a common notice at each of the three stores where it violated the Act.

    Dated, Washington, D.C.   August 20, 2007

 

Dennis P. Walsh,                              Member

 

                      National Labor Relations Board

(south Rainbow Boulevard Store)<