Bethlehem Steel Co.

National Labor Relations Board - Board Decisions

Apr 28, 1942

40 N.L.R.B. 922 (N.L.R.B. 1942)

In the Matter of BETHLEHEM STEEL COMPANY (SHIPBUILDING DIVISION
and PATTERN MAKERS LEAGUE OF NORTH AMERICA , NEW YORK
ASSOCIATION -
Cases Nos. R-3538 to R-3540, inclusive. Decided April 28,1942
Jurisdiction : ship repair and construction industry.
Investigation and Certification of Representatives : existence of question'
refusal to accord petitioner recognition until certified by the Board ; in view
of previous certification of industrial union for industrial units ostensibly
covering pattern makers , Board will accord ii a place on ballot in any or
all elections directed among pattern makers if it so notifies the Regional
Director not later than 5 days after date of Decision and Direction of
Elections , although the record does not indicate that such organization has
representation among pattern makers or desires to participate in the elections;
elections necessary.
Unit Appropriate for Collective Bargaining : determination of whether pattern
makers shall constitute a separate bargaining unit held dependent upon elec-
tion; prior certification of industrial union for industrial units ostensibly
covering pattern makers at Company's three shipyards, held not to preclude
elections among pattern makers at each of the yards to determine whether
or not they should constitute separate craft units, where among other con-
siderations, pattern making is a highly skilled craft, the Pattern Makers
League is a peculiar craft organization, and the issue concerning separate
representation for pattern makers had not arisen in any of the prior proceedings.
Mr. Richard J. Hickey, for the Board.
Mr. Ken'rleth L. Houck, of Bethlehem, Pa., for the Company.
Mr. George Q. Lynch, of Washington, D. C., for the Pattern Makers
League.
Mr. Samuel L. Rothbard, of Newark, N. J., for the Industrial Union.
Mr. Robert E. Tillman, of counsel to the Board.
DECISION
AND
DIRECTION" OF ELECTIONS
STATEMENT OF THE CASE
On September 8, 1941, Pattern Makers League of North America,
New York Association, affiliated with the American Federation of
Labor, herein called the Pattern Makers League, filed with the Re-
40 N. L R. B, No. 162
922
BETHLEHEM STEEL COMPANY 923
•gional Director for the Second Region (New York City) three peti-
tions alleging, respectively, that questions affecting commerce had
arisen concerning the representation of employees of Bethlehem Steel
Company (Shipbuilding Division),' herein called the Company, at
its shipyard located at 56th Street, Brooklyn, New York, at its ship-
yard on Staten Island, New' York, and at its shipyard in Hoboken,
New Jersey, and requesting investigations and certifications of repre-
sentatives pursuant to Section 9 (c) of the National Labor Relations
Act, 49 Stat. 449, herein called the Act. On January 26, 1942, the
National Labor, Relations %Board, herein called the Board, acting
pursuant to Section 9 (c) of the Act and Article III, Sections 3 and 10
(c) (2) of the National Labor Relations Board Rules and Regula-
tions-Series 2; as amended, ordered an investigation, authorized the
Regional Director to conduct it and to provide for an appropriate
hearing upon due notice, and consolidated the three cases.
On February 2, 1942, the Regional Director issued a notice of hear-
ing, copies of which were duly served upon the Company and the
Pattern Makers League, and' upon the Industrial Union of Marine and
Shipbuilding Workers of America, C. I. 0., herein called the Indus-
trial Union, a labor organization claiming to represent employees
directly affected by the investigation. Pursuant to notice, a hearing
was held on February 9, 1942, at New York City, before Charles E.
Persons, the Trial Examiner duly designated by the Chief Trial Ex-
aminer. The Company, the Pattern Makers League and the Indus-
trial Union were represented and participated in the hearing. Full
opportunity to be heard, to examine and cross-examine witnesses, and
to introduce evidence bearing on the issues was afforded all parties.
During the course of the hearing, the Trial Examiner made rulings
on motions and on objections to the admission of evidence. The Board
has reviewed the rulings of the Trial Examiner and finds-that no pre-
judicial errors were committed. The rulings are hereby affirmed.
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY
Bethlehem Steel Company, a Pennsylvania corporation, is a sub-
sidiary of Bethelehem Steel Corporation. The Company maintains
offices for its Shipbuilding Division in New York City. The Ship-
building Division is engaged in- the repair, reconditioning, and re-
constructon of ships at its shipyards located at 56th Street in Brook-
lyn, New York, in Hoboken, New Jersey, and at Mariner's Harbor
'In the petitions , the Company was referred to as Bethlehem Steel Co At the hearing
the parties agreed to amend the name to Bethlehem Steel Company
924 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
on Staten Island, New York. New ships are built at the latter yard.
During the calendar year 1941, the aggregate value of the materials
used by the Company' at its 56th Street Brooklyn yard (other than
,materials produced or manufactured at said yard and materials pur-
chased for specific contracts, which are usually finished materials)
was in excess of $1,000,000. More than- 70 percent of such materials
was delivered to the yard from points outside of the State of New
York. The aggregate amount billed by the Company in that year for
the repair, reconditioning, construction and reconstruction of ships
at the aforesaid yard was in excess of $17,500,000, of which more than
95 percent was billed for work on ships which were destined for use
in interstate and foreign commerce.
In the same year, the aggregate value of the materials used by the
Company at its Hoboken yard (other than materials produced or
manufactured at said yard and materials purchased for specific con-
tracts, which are usually finished materials) was in excess of $800,000.
More than 70 percent of such materials was delivered to the yard
from points outside of the State of New Jersey. The aggregate
amount billed by the Company in that year for the repair, recondi-
tioning, construction and reconstruction of ships at the aforesaid
yard was in excess of $15,000,000, of which more than 95 percent was
billed for work on ships which were destined for use in interstate and
foreign commerce.
In the same year, the aggregate value of the materials used by the
Company at its Staten Island yard (other than materials prodlIced'or
manufactured at said yard and materials purchased foi• specific con-
tracts, which are usually finished materials) was in excess of $2,000-
000. More than 70 percent of such materials was delivered to the yard
from points outside of the State of New. York. The aggregate amount
billed by the Company for the repair, reconditioning, construction and
reconstruction of ships at the aforesaid yard was in excess of $32,-
000,000, of which more than 95 percent was billed for work on ships
which were destined for use in interstate and foreign commerce.
The Company admits that in its operations at these three shipyards,
it is engaged in commerce within the meaning of the Act.
II. THE ORGANIZATIONS INVOLVED
Pattern Makers League of North America, New York Association,
is a labor organization affiliated with the American Federation of
Labor, admitting to membership p:ittern makers of the Company.
Industrial Union of Marine and Shipbuilding Workers of America,
C. I. 0., is a labor organization admitting to membership employees
of the Company.
BETHLEHEM STEEL COMPANY 925
III. THE QUESTIONS CONCERNING REPRESENTATION
On September 8, 1941, the Pattern Makers League served notice
upon the Company that. it represented a majority of the pattern
makers at each of the three above yards. Its requests to be recog-
nized as the representative of these groups of employees were refused
by the Company until such time as the Board finds that pattern
makers constitute an appropriate unit, and certifies the Pattern Mak-
ers League as the proper representative.
The Pattern Makers League, submitted to the Regional Director
evidence showing that it represents a substantial number of -employees
in each of the three units it claims to be appropriate.2
We find that questions have arisen concerning the representation
of employees of the Company.
1V. THE EFFECT OF TIIE QUESTIONS CONCERNING REPRESENTATION UPON
COMMERCE
We find that the questions concerning representation which have
arisen, occurring in connection with the operations of the Company
described in Section I above, have a close, intimate, and substantial
relation to trade, traffic, and commerce among the several States and
tend to lead to labor disputes burdening and obstructing commerce
and the free flow of commerce.
V. TILE APPROPRIATE UNITS
The Pattern Makers League contends that all pattern makers and
their apprentices employed at each of the three aforementioned yards,
exclusive of supervisory employees , constitute three separate craft
units apart from the industrial units in existence thereat the present
time. The Industrial Union contends that the existing industrial
unit, including pattern makers , at each yard is appropriate for bar-
gaining purposes . The Company maintains a neutral position.
The Board has previously certified the Industrial Union in each
of the three yards as the exclusive representative of an industrial unlit.
2 The Regional Directoi s statement shows that the Pattei n Makers League submitted
initiation payment and dues payment records covering 4 of 9 eligible employees on the
January 13 1942, pax roll at the 56th Street Biookl n yard, all 14 eligible employees
on the Septembei 19. 1941, pav toll of the Staten Island yard (as of Februaiy 9, 1942,
there weie 17 eligible eniploiees) , and 12 of 17 eligible employees on the January 13, 1942,'
pay roll of the Hoboken vard
The Industual Union was ceitified as to the 56th Street Brooklyn yard and the
iloboken void on August 2, 1919 Each certification was made following a pay-ioll check
coidacted pursuant to a stipulation signed by the Company. the Industrial Union „and the
American Federation of Labor See Matter of United Shipyards, Inc, and Bethlehem
Shipbuilding Uoipoiatioa, Ltd . and Industrial Union of Marine and Shipbuilding 117orlceis
of 2i me) ica. 14 N L R B 169
The Industrial Union was certified-as to the Staten Island yard on September 23, 1941,
pursuant to the iesults of an election See Matter of Bethlehem Steel Company (Ship-
-baildinq Dieisioi) a nd International Molders and Foundry 1Forlers Union of North America,
Local No St (4 P of L) 15 N L R Ii 34
926 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
On March 2 , 1938, the Board, after a hearing , found that the 56th
Street Brooklyn and the Hoboken yards , together with a third ship-
yard not here involved, constituted a single industrial unit appropriate
for the purposes of collective bargaining .4 There is no indication that
the Pattern Makers League had notice of that proceeding, nor is
there any indication that it was one of the craft unions represented by
the Metal Trades Council , which was a party thereto . The only issue
relating to the appropriate unit was whether the three shipyards con-
stituted a single unit - or three separate units. Subsequent to this
decision an amended petition was filed, joining as a party the Bethle-
hem Steel Company which had acquired ownership of the shipyards,5
and a hearing was held in which both the Metal Trades Council and
the Metal Trades Department of the American Federation of Labor
appeared as interested parties . On September 24, 1938, the Com-
pany, the Industrial Union, and the American Federation of Labor
entered into a stipulation that substantially all employees of each of
the shipyards should constitute a separate bargaining unit. Certain
exclusions from each unit were agreed upon, but pattern makers were
not mentioned . Pursuant to the stipulation , a cross-check of appli-
cation cards with pay rolls was conducted , the choice being between
the Industrial Union and the American Federation of Labor.- As a
result of the cross -check, the Industrial Union was certified as the
representative at each yard . It does not appear .whether membership
cards of the Pattern Makers League were included in the American
Federation of Labor count . Thereafter , the Company and the Indus-
trial Union entered into a contract covering the Hoboken yard, which
was terminated on September 30, 1941. No other contracts have been
executed with respect to any of the yards here involved , and none is
in existence at the present time.'
At the Staten Island yard, the Board found on August 5, 1941,
that an industrial unit was appropriate , relying in part upon prior
industrial bargaining history, and 'dismissed a petition seeking a
4 Matter of United Shipyards, Inc , and Locals No 12, No 13, No 15, of the Industrial
Union of Marine and Shipbuilding Workers of America, 5 N L R B. 742 United Ship-
yards , Inc. was the predecessor in ownership of the 56th Street, Brooklyn and Hoboken
yards
5 See Matter of United Shipyards , Inc and Bethlehem Shipbuilding Corporation, Ltd.
and Industrial Union of Marine and Shipbuilding Workers of America, 14 N L R B. 169
6 The Industrial Union has , however , reached an understanding with the Company to
the effect that the Company will adopt the terms of a so-called "Zone Standards Agree-
ment" and will recognize the industrial Union as the exclusive representative of the em-
ployees at all 'the Company's Atlantic Coast shipyards where the Industrial Union is
certified as such by the Board This "Zone Standards Agreement ," resulting from the
efforts of defense agencies to stabilize wages , hours , and other working conditions in
shipyards along the Atlantic Coast, was drawn up June 4, 1941 , by representatives of the
United States , the Industrial Union, and the various ' shipyard companies operating along
that coast It purports to soply to all such shipyards and all production and maintenance
employees therein
BETHLEHEM STEEL COMPANY 927
separate unit of operating engineers.' This decision fails to dis-
close that the Pattern Makers League either directly or indirectly
participated in any of the prior bargaining relations involving this
yard, or in the proceeding itself. Thus, in none of the prior,repre-
sentation cases involving these yards has there been a consideration
of the merits of a separate bargaining unit for the pattern makers'
craft.8 Hence the Board has not passed upon this issue in an adver-
sary proceeding.
As a craft, pattern makers are not only highly skilled, but the
nature of their work is such that other craftsmen cannot successfully
duplicate their operations. Hence, workers skilled in other crafts
are not interchangeable with pattern makers. Pattern makers can
adequately perform their trade in a variety of industries, and during
temporary or seasonal shut-downs in one industry they customarily
find employment at their trade in another industry. Thus, individ-
ual pattern makers frequently transfer from one type of industry to
another during the course of a year.
Apart from the character of pattern making as a craft is the
manner in which the Pattern Makers League as a labor organization
has functioned. Among the so-called craft unions appearing in cases
before the Board, the Pattern Makers League is almost the only
labor organization which has rigidly adhered to its traditional craft
lines. It does not admit to membership or seek to represent any
employees except those who have met the qualifications and strict
apprenticeship standards of the trade. Likewise, the Pattern Makers
League has made a consistent effort to maintain itself as a distinc-
tive bargaining group.° The average period of membership for
most of the members employed in the shipyards here involved is 20
years, and one or two of the employees have been members since 1900.
In the whole New York Metropolitan area, the Pattern Makers
League claims to represent 85 percent of all pattern makers.
Shipbuilding and repairing is a highly integrated enterprise in
which pattern makers perform an essential role. It is true that
many of the conditions of their employment are similar to those of
other production employees. However, at least in the Hoboken yard,
pattern makers are segregated on the top floor of a three-story build-
ing. - In all the yards, the only assistance given to pattern makers by
7 See Matter of Bethlehem Steel Company ( Shipbuilding Division) and International
Molders and Foundry Workers Union of North America, Local No 81 (A. F. of L ), 33
N L It B 1064
8 See Matter of Bendia, Products Division of Bender Aviation Corporation and Pattern
Makers League of North America , South Bend Association, affiliated with the A F of L,
39 N L R B 81 Nor, as noted above, has there i been any extensive bargaining on
an industrial basis.
O Pattern making was the only craft excluded from a recent master stabilization agree-
ment covering shipyard employees on the Pac ific, Coast.
928 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
other employees is that given by riggers and others who may aid
in lifting heavy metal pieces undergoing repair, and that rendered by
a few mechanics who sharpen tools and keep the machines in repair.
Two of the yards involved herein are devoted entirely to repair of
ships, and the work of pattern makers in these yards is intermittent,
depending upon the arrival of ships to be repaired. _
The Pattern Makers League maintains in the New York Metro-
politan area a central office for the purpose of supplying pattern
makers to employers upon request . Since 1923 this office has fur-
nished pattern makers to the Hoboken and the 56th Street Brooklyn
yards. During 1941 alone, this office supplied 12 pattern makers to
the Hoboken yard. Three of the present force at the 56th Street
Brooklyn yard have been supplied in the same manner. Despite the
fact that the -Industrial Union had been certified at each of the three
yards as the representative of employees in a unit which ostensibly
includes pattern makers, a substantial number of the latter at each
yard have consistently maintained their membership in the League.
We are of the opinion that the considerations are sufficiently bal-
anced to make the desires of the pattern makers themselves control-
ling in our determination of the type of unit through which they
shall bargain.
We shall direct that elections be held among the pattern makers
and their apprentices , exclusive of supervisors, employed at the 56th
Street Brooklyn, the Hoboken, and the Staten Island yards of the
,Company . Upon the results of these elections will depend , in part,
our determination of the appropriate unit or units. If a majority
of the pattern makers and their apprentices, exclusive of supervisors,
at any of the three yards select the Pattern Makers League as their
representative, they will constitute a separate and distinct unit at
that yard; if a majority of them at any yard choose not to be repre-
sented by the Pattern Makers League, then the pattern makers and
their apprentices, exclusive of supervisors , at such yards shall be
'considered a part of the industrial unit existing there at the present
time.
VI. THE DETERMINATION OF REPRESENTATIVES
We find that the questions concerning representation which have
arisen can best be resolved by means of elections by secret ballot.
We shall direct that the pattern makers and their apprentices at
each of the yards who were employed during the pay-roll period
immediately preceding the date of our Direction of Elections, sub-
ject to the limitations and additions set forth therein, shall be eligible
to vote.
BETHLEHEM STEEL COMPANY 929
The record does not indicate whether the Industrial Union has
members among the pattern makers or desires to participate in any
of the elections directed to be held. In view, however, of the previ-
ous certifications, we shall direct that if the Industrial Union desires
to participate in any of the three elections, it shall notify the Re-
gional Director for the Second Region to that effect not later than
five (5) days after the date. of this-Decision and Direction of Elec-
tions, whereupon its name will be placed upon such of the ballots
as it may designate. In the absence of some such notice, its name
will not appear upon any of the ballots.
Upon the basis of the above findings of fact and upon the-entire
record in'-the case, the Board makes the following :
CONCLUSIONS OF LAW
Questions affecting commerce have arisen concerning the repre-
sentation of employees of Bethlehem Steel Company (Shipbuilding
Division) at its 56th Street Brooklyn, New York yard, Hoboken,
New Jersey yard, and Staten Island, New York yard, within the
meaning of Section 9 (c), and Section 2 (6) and (7) of the Act.
DIRECTION OF ELECTIONS
By virtue of and pursuant to the power vested in the National
Labor Relations Board by Section 9 (c) of the National Labor Rela-
tions Act, 49 Stat. 449, and pursuant to Article III, Section 8, of
National Labor Relations Board Rules and Regulations-Series 2,
as amended, it is hereby
DIRECTED that, as part of the investigation ordered by the Board to
ascertain representatives for the purposes of collective bargaining with
Bethlehem Steel Company (Shipbuilding Division) at its 56th Street
Brooklyn, New York shipyard, Hoboken, New Jersey shipyard, and
Staten Island, New York shipyard, elections by secret ballot shall be
conducted as early as possible, but not later than thirty (30) days from
the date of this Direction of Elections, under the direction and super-
vision of the Regional Director for the Second Region, acting in this
matter as agent for the National Labor Relations Board, and subject
to Article III, Section 9, of said Rules and Regulations :
1. Among all pattern makers and pattern makers' apprentices em-
ployed at the 56th Street Brooklyn, New York shipyard of the Bethle-
hem Steel Company (Shipbuilding Division) who were employed dur-
ing the pay-roll period immediately preceding the date of this Direction
of Elections, including employees who did not work during such pay-
roll period because they were ill or on vacation or in the active military
service or training of the United States, or temporarily laid off, but
455771-42-vol. 40-59
930 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
excluding supervisory employees and those- employees who have since
quit or been discharged. for cause, to determine whether or not they
,desire to be represented by Pattern Makers League of North America,
New York Association, A. F. of L., for the purposes of collective
bargaining;
2. Among all pattern makers and pattern makers' apprentices em-
ployed at the Hoboken, New Jersey shipyard of the Bethlehem Steel
Company (Shipbuilding Division) who were employed during the
,pay-roll period immediately preceding the date of this Direction of
Elections, including employees who did not work during such pay-
roll period because they were ill or on vacation or in the active military
service or training of the United States, or temporarily laid -off, but
excluding supervisory employees and those employees who have since
quit or been discharged for cause, to determine whether or not they
desire to be represented by Pattern Makers League of North America,
New York, Association, A. F. of L., for the purposes of collective
,bargaining;
3. Among all pattern makers and pattern makers' apprentices em-
ployed at the Staten Island, New York shipyard of the Bethlehem Steel
Company (Shipbuilding Division) who were employed during the
pay-roll period immediately preceding the date of this Direction of
Elections, including employees who did not work during such pay-roll
period because they were ill or on vacation or in the active military
service or training of the United States, or temporarily laid off, but
excluding supervisory employees and those employees who have since
quit or been discharged for cause , to determine whether or not they
desire to be represented by Pattern Makers League of North America,
New York Association, A. F. of L., for the purposes of collective
bargaining.