VII. PRINCIPLES ESTABLISHED 590527, C. I. 0. 17 the interference consisted in the spreading by a respondentof false rumors with respect to the effectiveness of the unionin winning benefits for the employees at a nearby plant, during anelection in which the union was a candidate for selection as bargainingrepresentative. The <strong>Board</strong> found that the respondent knew the reportto be false and none the less further circulated it among the employees,to discredit a labor organization.Under the circumstances of the case, however, the <strong>Board</strong> has heldthere was no interference with self-organization within the meaningof section 8 (1), where an employer in good faith himself conductedan election among his employees, but showed no favoritism toeither of the rival organizations contesting for designation asrepresentative."The act requires an employer to bargain collectively on request withthe union designated by a majority of his employees in an appropriateunit. The <strong>Board</strong>, accordingly, has held that an employer mustnot defeat collective bargaining by going behind the union so designatedand dealing directly with the employees who have chosen sucha union as their representative. In Hatter of TVilliaras Coal Companyand United Mine Workers of America, District No. the respondenthad entered into a contract with the union but subsequently attemptedto modify the terms of this contract through individual negotiationswith its employees. The <strong>Board</strong>' held that such activity was prohibitedby the act. 2° The <strong>Board</strong> has also condemned action where an employer,in response to a request by a union committee to negotiate ona matter of hours, has conducted his own ballot among the employeesas to their wishes on the question of hours, 21 and where the respondenthas attempted to bargain individually with employees during a strike,called by a union chosen to represent these employees, in protestagainst the respondent's unfair labor practices.22Similarly, the <strong>Board</strong> has pointed out the coercion involved in anemployer's statement to its employees that collective bargaining willbe futile, by posting a notice to the effect that the respondent wouldnever agree to a closed shop."Nor may an employer defeat collective bargaining and self-organizationby entering into individual contracts with employees whereby11 10 N. L. Ft. B. 1321, petition for enforcement filed on or about August 1. 1939 (C. C. A. 2).12 Matter of J. Wags & Sons Company and United Electrical, Radio, and Machine Workersof America, 12 N. h. R. B. 601. In this case, however, the <strong>Board</strong> held that the electioncould not be considered determinative of the wishes of the employees. See infra. p. 75.'g 11 N. L. R. B. 579, petition for enforcement filed July 28, 1939 (C. C. A. 6).20 The <strong>Board</strong> said in this case that a breach of the contract with the union, would not,in itself, have constituted an unfair labor practice.21 Matter of The Weber Dental Manufacturing Company and The United Electrical andRadio Workers of America, 10 N. L. It. B. 1439.Matter of Newark Rivet Works and Unity Lodge No. 420, United Electrical & RadioWorkers of America, C. I. 0., 9 N. L. R. B. 498; Matter of Reed & Prince ManufacturingCompany and Steel Workers Organizing Committee of the C. I. 0., 12 N. L. R. B. 944. Cf.Matter of The Stolle Corporation and Metal Polishers, Buffers, Platers & Helpers InternationalUnion, 13 N. L. R. B., No. 44. where the employer confirmed its refusal to bargainwith the union by entering into individual contracts with the employees.23 Matter of Roberti Brothers, Inc., and Furniture Workers Union, Local 1561, 8 N. L. R. B.925. The <strong>Board</strong> said in this case :"Were the Act to sanction such notice by the employer, he could with equal impunityfurther forestall and defeat union organization by announcing to his employees that underno circumstances would he recognize seniority among his employees for the purpose oflay-offs, that unler no circumstances would he consider a change in the hours of employment,that under no circumstances would he consider any change in any other term orcondition of employment. In effect, at the outset of union organization he could discouragehis employees from becoming members by warning them that any possible advantage to bederived from such membership was beyond their reach. We cannot permit the purposesof the Act to be so flouted."192197-40-5
60 FOURTH ANNUAL REPORT OF NATIONAL LABOR RELATIONS BOARDthe employees surrender their right to concerted economic action.In Matter of Arcade-Sunshine Company, In,c. and Laundry WorkersCleaners & Dyers Union, 24 the respondent, during a period of unionorganization and while the union was attempting to reach a collectivebargaining agreement with the respondent, circulated among its employeesa petition in which the employees pledged themselves to"remain at our post under present working conditions." The <strong>Board</strong>found that the circulation of such a petition discouraged collectiveaction by the employees. The <strong>Board</strong> said :An agreement not to strike is, on its face, a limitation on the exercise of sucha right—the right to engage in concerted activities. Such a limitation alsointerferes with the right to self-organization, since it eliminates one of the mosteffective methods of organization and one of the activities for which organizationis designed. The limitation may be unobjectionable when reached as aresult of collective bargaining with the representatives of the employees in anappropriate unit ; in such case, by hypothesis, organization has been attained,and the conclusion of the agreement is itself an exercise of the right of engagingin collective activities. But imposition of such a limitation upon the individualemployee may constitute not only a form of coercion resulting from the inequalityof bargaining position, but also an obstruction, at the outset, to the developmentof effective organization, concerted activity, and collective bargaining. Thethreat of cessation of work is practically the only economic force available toemployees to invoke in their attempt to obtain concessions from their employer.Deprived of the possibility of utilizing this economic force before collective bargainingsecures such concessions, the right to organize and bargain as guaranteedby the Act becomes meaningless. Its exercise would be futile.B. ENCOURAGEMENT OR DISCOURAGEMENT OF MEMBERSHIP IN ALABOR ORGANIZATION BY DISCRIMINATIONSection 8 (3) makes it an unfair labor practice for an employer :By discrimination in regard to hire or tenure of employment or any termor condition of employment to encourage or discourage memb2rship in anylabor organization : Provided, That nothing in this act * * * or in any otherstatute of the United States, shall preclude an employer from making anagreement with a labor organization (not established, maintained, or ass:stedby any action defined in this act as an unfair labor practice) to require as acondition of employment membership therein, if such labor organizatIon isthe representative of the employees as provided in section 9 (a) in the appropriatecollective bargaining unit covered by such agreement when made.z5As pointed out in the Third Annual Report, 26 the <strong>Board</strong>, in administeringsection 8 (3), has been careful not to interfere with thenormal exercise of the right of the employer to select its employeesor to discharge them. And conversely the <strong>Board</strong> has been equallydetermined not to permit in any case an unfair labor practice withinthe meaning of this section to go unchallenged under cover of thatright. The <strong>Board</strong> has never held it to be an unfair labor practicefor an employer to hire or discharge, to promote, or demote, totransfer, lay-off or reinstate, or otherwise to affect the hire or tenureof employees or their terms or conditions of employment, for assertedreasons of business, animosity, or because of sheer caprice, so long asthe employer's conduct is not wholly or in part motivated by antiunioncause.24 12 N. L. R. B. 259.By section 9 (a), the representative designated by the majority of the employees in theappropriate collective bargaining unit is the exclusive representative of all the employeesin sn.rh unit for the purposes of collective bargaining.At p. 65.