Briggs Manufacturing Company and Briggs Indiana Corporation

National Labor Relations Board - Board Decisions

Jul 31, 1939

13 N.L.R.B. 1326 (N.L.R.B. 1939)

In the Matter of BRIGGS MANUFACTURIN G COMPANY AND Biuoas
INDIANA CORPORATION and INTERNATIONAL UNION , UNITED AUTO-
MOBILE WORKERS OF AMERICA, AFFILIATED WITH THE C. I. 0., AND
LOCALS No. 212 AND No. 265, INTERNATIONAL UNION, UNITED AUTO-
MOBILE WORKERS OF AMERICA , AFFILIATED WITH THE C. I. O.
Case No. R-1407-Decided July 31,1939
Automobile Body Manufacturing Industry-Investigation of Representatives:
controversy concerning representation of employees : controversy concerning
appropriate unit ; rival organizations ; employer 's refusal to grant recognition to
either union-Unit Appropriate for Collective Bargaining : separate plant units
appropriate ; production and maintenance employees in each of eight plants with
certain exclusions ; prior decision of Board-Election Ordered : eligibility to vote
determined as of pay-roll period preceding date of Direction of Election.
Mr. William J. Avrutis, for the Board.
Beaumont , Smith & Harris, by Mr. Albert E. Meder, Mr. 'Yates G.
Smith, and Mr. Thomas E. Wilson, of Detroit, Mich., for the
Company.
Mr. Edward N. Barnard and Mr. Valois E. Crossley, of Detroit,
Mich., for the A. F. of L.-U. A. W.
Mr. Maurice Sugar and Mr. Ernest Goodman, of Detroit, Mich.,
for the C. I. O.-U. A. W.
Mr. Wallace M. Cohen, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On June 5 , 1939 , International Union, United Automobile Workers
of America, affiliated with the Congress of Industrial Organizations,
and Locals No. 212 and No. 265 , International Union, United Auto-
mobile Workers of America, affiliated with the Congress of Industrial
Organizations, herein collectively called the C . I. O.-U. A. W., filed
with the Regional Director for the Seventh Region (Detroit, Michi-
gan), an amended petition 1 alleging that a question affecting com-
1 The original petition was filed on May 3, 1939 , by Local No. 212, International Union,
United Automobile Workers of America, affiliated with the C. I. 0
13 N. L . R. B., No. 123.
1326
BRIGGS MANUFACTURING COMPANY 1327
merce had arisen concerning the representation of employees of Briggs
Manufacturing Company and Briggs Indiana Corporation,2 herein
collectively called the Company, unless otherwise designated, at its
eight plants situated in Detroit, Hamtramck, and Highland Park,
Michigan, and inaEvansville, Indiana, and requesting an investigation
and certification of representatives pursuant to Section 9 (c) of the
National Labor Relations Act, 49 Stat. 449, herein called the Act.
On June 9, 1939, the National Labor Relations Board, herein called
the Board, acting pursuant to Section 9 (c) of the Act and Article
III, Section 3, of National Labor Relations Board Rules and Regula-
tions-Series,l, as,amended, ordered s an investigation and authorized
the Regional Director to conduct it and to provide for an appropriate
hearing upon due notice.
On May 27 and June 9, 1939, the Regional Director issued notices
of hearing, copies of which were duly served upon the Company, upon
the C. I. O.-U. A. W., and upon the International Union, United
Automobile Workers of America, affiliated with the A. F. of L.,
Homer Martin, president, herein called the A. F. of L.-U. A. W., a
labor organization, claiming to represent employees directly affected
by the investigation. Pursuant to notice a hearing was held on June
5, 8, 13114115116, and 19, 1939, at Detroit, Michigan, before Henry W.
Schmidt, the Trial Examiner duly designated by the Board. The
Board, the Company, the C. I. O.-U. A. W., the A. F. of L.-U. A. W.,
and the International Union, Federation of Architects, Engineers,
Chemists, and Technicians, a labor organization, herein called the
F. A. E. C. T., were represented by counsel and all 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 hearing, the Trial Examiner
named the A. F. of L.-U. A. W. a party to the proceeding and
granted the petition of the F. A. E. C. T. to intervene. At the
beginning and at the close of the hearing, the Trial Examiner denied
motions of the A. F. of L.-U. A. W. to dismiss the petition for want
of jurisdiction of the Board to entertain the petition during the
pendency of a court proceeding involving the determination of the
party entitled to the use of the name, International Union, United
Automobile Workers of America. During the course of the hearing,
the Trial Examiner made rulings on other motions and on objections
to the admission of evidence. The Board has reviewed the rulings
of the Trial Examiner and finds that no prejudicial errors were com-
mitted. The rulings are hereby affirmed. Upon request of the par-
2 The name of Briggs Indiana Corporation was added on June 8 , 1 939, upon motion
of the C I. O. to amend its petition.
s The Order Directing Investigation and Hearing, Issued June 9, 1939, was an amended
order. The original Order was issued May 26, 1939.
1328 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ties and pursuant to notice, oral argument was held on June 30, 1939,
before the Board at Washington, D. C. All parties were represented
by counsel and participated in the argument.
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY
Briggs Manufacturing Company is a Michigan corporation en-
gaged in the manufacture of automobile bodies, steel stampings, au-
tomobile parts, and steel plumbing fixtures. It has seven plants in
Detroit, Hamtramck, and Highland Park, Michigan, and is the
largest independent manufacturer of automobile bodies in the
industry.
In 1938 the Michigan corporation used raw materials in the amount
of $44,022,620. At least 50 per cent of these materials , consisting
principally of steel, lumber, paint, hardware and standard parts,
glass, cardboard, springs, purchased stampings, and trim cloth, were
obtained from sources outside the State of Michigan. In 1937 the
Michigan corporation sold to Ford Motor Company, and to the
Chrysler Corporation, each, finished products having a value in
excess of $10,000,000. In 1938 the value of such sales to each company
was in excess of $5,000,000.4 The Michigan corporation normally
employs about 18,000 persons.
The Briggs Indiana Corporation is a wholly owned subsidiary of
the Briggs Manufacturing Company, incorporated in Indiana, and
engaged in the manufacture of automobile bodies, steel stampings,
and automobile parts in its one plant located in Evansville, Indiana.
In 1938 it purchased raw materials of the value of $4,544,632, in
excess of 50 per cent of which was obtained from sources outside the
State of Indiana. Substantially all its finished products were sold
to the Chrysler Corporation. The Indiana corporation normally
employs about 1,250 persons.
II. THE ORGANIZATIONS INVOLVED
International Union, United Automobile Workers of America, af-
filiated with the Congress of Industrial Organizations, and Locals
No. 212 and No. 265, International Union, United Automobile Work-
'In a stipulation entered into between the Company and the attorney for the Board,
it is set forth that during 1937, Ford Motor Company shipped to points outside the
State of Michigan approximately 90 per cent of the Ford automobiles manufactured by it,
the value of which was approximately $ 262,000 ,000. During 1938 the same company
shipped to points outside the State of Michigan approximately 94 per cent of its output,
the value of which was approximately $ 56,000 ,000, Ford automobiles were shipped to
every State of the United States and to Colombia , Venezuela , Argentina , and other
countries.
BRIGGS MANUFACTURING COMPANY 1329
ers of America, affiliated with the Congress of Industrial Organiza-
tions, are labor organizations admitting to membership all production
and maintenance employees employed by the Company at its eight
plants in Detroit, Hamtramck, and Highland Park, Michigan, and in
Evansville, Indiana, excluding direct representatives of management,
superintendents, foremen, assistant foremen, all employees working in
a supervisory capacity, time-study men, plant-protection employees,
confidential salaried employees, salaried office employees, and salaried
engineers, but including hourly rate office employees and hourly rate
engineers.'
International Union, United Automobile Workers of America,
Homer Martin, president, is a labor organization affiliated with the
American Federation of Labor. It admits to membership the same
classifications of employees received by the C. I. O.°
International Union, Federation of Achitects, Engineers, Chem-
ists and Technicians, is a labor organization affiliated with the Con-
gress of Industrial Organizations, admitting to membership all
architects, engineers, chemists, and technicians of the Company. It
negotiates ^ with 'the"Company through its representative, Interna-
tional Union, United Automobile Workers of America, Local 0No.
212, affiliated with the Congress of Industrial Organizations.
III. THE QUESTION CONCERNING REPRESENTATION
in January 1939 a schism occurred in the ranks of the Interna-
tioaal Union,, TiB1--A- ,omobile Workers of America , a labor organ-
ization, herein called the International Union, then affiliated with the
Congress of Industrial Organizations. The body divided into two
groups, one of which was led by R. J. Thomas and the other by
Homer Martin. The Thomas group assumed the name, International
Union,, United Automobile Workers of America, and reaffirmed its
affiliation with the Congress of Industrial Organizations. The
Martin. group .inAurn laid claim, to, and, used the same name and
subsequently, during the pendency of this proceeding, became affili-
ated with the American Federation of Labor. Since the breach,
the two groups have operated as separate labor organizations. Each
has elected its own officers, held separate conventions, maintained its
own place of business, and separately engaged in collective bargain-
ing negotiations with the Company.
On numerous occasions both prior and subsequent to the filing of
the petition herein, each organization has sought to bargain col-
lectively with the Company. The Company has persistently main-
Matter of Chrysler Corporation and United Automobile Workers of America, Local 371,
afflilated with C. I. 0., 13 N. L. R. B . 1303; Matter of Motor Products Corporation
and Local 203, International Union, United Automobile Workers of America, affiliated
with the C. 1. 0., 13 N. L. R. B. 1320.
1330 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
tained, however, that it could not recognize either union inasmuch as
it was without knowledge as to which, if either, union represented
a majority of the Company's employees. A strike occurred on May
22, 1939, in all the Company's plants and continued until June 7,
1939. On June 7, 1939, the Company entered into a collective bar-
gaining contract with the C. I. O.-U. A. W. embracing the Company's
eight plants. The agreement provides, as to recognition, that "After
decision of the recognition case now pending before the National
Labor Relations Board, the status of the Union will be changed if
such decision so requires. All other provisions of the contract shall
remain in full force and effect for the stated duration of the agree-
ment." Testimony elicited at the hearing established that the words
"status of the Union" in the contract had reference only to the identity
of the labor organization entitled to exclusive representation as ascer-
tained by the Board proceeding.
We find that a question has arisen concerning the representation of
employees of the Company.
IV. THE EFFECT OF THE QUESTION CONCERNING REPRESENTATION UPON
COMMERCE
We find that the question concerning representation which has
arisen, occurring in connection with the operations of the Company
described in Section I above , has a close, intimate , and substantial
relation to trade, traffic, and commerce among the several States,
and tends to lead to labor disputes burdening and`,"oliotructing com-
merce and the free flow of commerce.
V. THE APPROPRIATE UNIT
The Company and the C. I. O.-U. A. W. took the position that the
bargaining unit should consist of all production and maintenance
employees employed by the Company at its eight plants e" situated in
the cities of Detroit, Hamtramck, and Highland Park, Michigan, and
in Evansville, Indiana, including all operators of Company motor-
transport equipment and those engaged in its maintenance; factory
clerical employees paid on an hourly rate basis; all engineers-
whether paid on an hourly rate or salary basis-except those employed
on experimental model work and all those who have the right to
hire or discharge; all detailers,' draftsmen, and, designers, whether
paid on an hourly rate or salary basis, except those who have the
right to hire or discharge; but excluding direct representatives of
the management such as officers and directors of the Company, sales
6 These plants are known by the following names : Mack Avenue , Highland Park,
Vernor, Meldrum, 8-mile, Hamtramck, Connors, and Evansville
BRIGGS MANUFACTURING COMPANY 1331
managers and assistant managers, factory managers and assistant
managers, directors and employees of the personnel and industrial-
relations department, directors of purchases and assistants, superin-
tendents and assistant superintendents, general foremen, foremen, and
assistant foremen, other persons working in a supervisory capacity,
including those having the right to hire or discharge, and those whose
duties include recommendations as to hiring or discharging (but not
persons designated as leaders), time-study men, plant-protection em-
ployees, known as watchmen, and all salaried employees, except those
engineers, detailers, draftsmen, and designers specifically included
above.
The position of the A. F. of L.-U. A. W. is that the classifications
of employees urged by the other parties is satisfactory, but that there
should be a separate unit for each plant and not one unit embracing
the eight plants.
The record discloses that in 1937 the International Union entered
into two contracts with the Company, one covering the International
Union members in the Evansville, Indiana, plant and the other cov-
ering its members in the seven Michigan plants. Two similar con-
tracts were executed in 1938.
For the reasons stated in Matter of Chrysler Corporation 7 we are
of the opinion that all the plants should not be grouped in a single
bargaining unit.
We find that all the production and maintenance employees em-
ployed by the Company at each of its eight plants situated in the
cities of Detroit, Hamtramck, and Highland Park, Michigan, and
in Evansville, Indiana, including all operators of Company motor-
transport equipment and those engaged in its maintenance; factory
clerical employees paid on an hourly rate basis; all engineers-
whether paid on an hourly rate or salary basis-except those em-
ployed on experimental model work and all those who have the
right to hire or discharge; all detailers, draftsmen, and designers,
whether paid on an hourly rate or salary basis, except those who
have the right to hire or discharge; but excluding direct representa-
tives of the management such as officers and directors of the Com-
pany, sales managers and assistant managers, factory managers and
assistant managers, directors and employees of the personnel and
industrial-relations department, directors of purchases and assistants,
superintendents and assistant superintendents, general foremen, fore-
men, and assistant foremen, other persons working in a supervisory
capacity, including those having the right to hire or discharge, and
those whose duties include recommendations as to hiring or discharg-
ing (but not persons designated as leaders), time-study men, plant-
4 13 N. L R. B. 1303. 1
1332 DECISIONS O1 NATIONAL LABOR RELATIONS BOARD
protection employees, known as watchmen, and all salaried employees,
except those engineers, detailers, draftsmen, and designers specifically
included above, constitute units appropriate for the purposes of col-
lective bargaining, and that each said unit will insure to employees
of the company the full benefit of their right to self-organization and
to collective bargaining and otherwise effectuate the policies of the'
Act.
VI. THE DETERMINATION OF REPRESENTATIVES
Both the C. I. O. and A. F. of L. claim to represent a majority of
the employees of the Company, but neither of the unions offered evi-
dence to substantiate their claims. To dissipate the uncertainty
permeating the situation created by the inter-union strike, we shall
order an election by secret ballot. To prevent confusion, the names
of the unions will appear on the ballot as "C. I. O.-International
Union, United Automobile Workers of America," and "A. F. of L,
International Union, United Automobile Workers of America." The
employees will also be given the opportunity to vote for neither
union.
Since the F. A. E. C. T. desires to continue to be represented by the
C. I. O. and does not wish to appear on the ballot, the F. A. E. C. T.
will be omitted from the ballot.
The parties stipulated that the pay-roll and suspended-seniority 8
lists of April 30, 1939, shall be used for the purpose of determining
those employees eligible to vote. The Company, however, insists that
only those employees should be eligible who were on the pay-roll
and suspended-seniority lists of April 30, 1939, and who shall also be
eligible on the date of the election. We believe that the interests
of all parties will best be served by fixing a date more closely approxi-
mating the time of the election. Accordingly, we conclude that the
persons eligible to vote are those employees of the Company within
the appropriate unit whose names appear on the pay-roll and sus-
pended-seniority lists for the pay-roll period immediately preceding
the date of this Direction of Election, including employees who did not
work during such pay-roll period because they were ill or one vacation.
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
1. A question affecting commerce has arisen concerning the repre-
sentation of employees of Briggs Manufacturing Company and
Briggs Indiana Corporation, within the meaning of Section 9 (c)
and Section 2 (6) and (7) of the National Labor Relations Act.
8 The suspended seniority list consists of those employees who, after at least 3 months of
continuous service, have been laid off for a period not longer than 1 year
BRIGGS MANUFACTURING COMPANY 1333
2. All the production and maintenance employees employed by the
Company at each of its eight plants situated in the cities of Detroit,
Hamtramck , and Highland Park , Michigan , and in Evansville, In-
diana, including all operators of Company motor-transport equip-
ment and those engaged in its maintenance ; factory clerical employees
paid on an hourly rate, basis; all engineers-whether paid on an
hourly, rate or salary basis-except those employed on experimental
model work and all those who have the right to hire or discharge;
all detailers , draftsmen , and designers , whether paid on an hourly
rate or salary basis , except those who have the right to hire or dis-
,charge; but excluding direct representatives of the management such
as officers and directors of the Company, sales managers and assistant
managers , factory managers and assistant managers , directors and
employees of the personnel and industrial -relations department, di-
rectors of purchases and assistants , superintendents and assistant
superintendents , general foremen , foremen, and assistant foremen,
other persons working in a supervisory capacity , including those
having the right to hire or discharge , and those whose duties in-
,elude recommendations as to hiring or discharging (but not persons
designated as leaders ), time-study men, plant-protection employees,
known as watchmen , and all salaried employees , except those en-
gineers, detailers , draftsmen , and designers specifically included
above, constitute units appropriate for the purposes of collective bar-
gaining, within the meaning of Section 9 (b) of the National Labor
Relations Act.
DIRECTION OF ELECTION
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, and pursuant to Article III, Section 8, of National Labor
Relations Board Rules and Regulations-Series 2, it is hereby
Duu.cTEI that, as part of the investigation authorized by the Board
to ascertain representatives for the purpose of collective bargain-
ing with Briggs Manufacturing Company and Briggs Indiana Cor-
poration at their eight plants situated in Detroit, Hamtramck, and
Highland Park, Michigan, and in Evansville, Indiana, elections by
secret ballot shall be conducted within twenty (20) days from the
date of this Direction, under the direction and supervision of the
Regional Director for the Seventh 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, among all the produc-
tion and maintenance employees employed by the Company at each
of its eight plants situated in the cities of Detroit, Hamtramck, and
Highland Park, Michigan, and in Evansville, Indiana, including all
187930-39-vol. 13--85
1334 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
operators of Company motor-transport equipment and those engaged
in its maintenance; factory clerical employees paid on an hourly
rate basis ; all engineers-whether paid on an hourly rate or salary
basis-except those employed on experimental model work and all
those who have the right to hire or discharge; all detailers, drafts-'
men, and designers, whether paid on an hourly rate or salary basis,
except those who have the right to hire or discharge; but excluding
direct representatives of the management such as officers and directors
of the Company, sales managers and assistant managers, factory
managers and assistant managers, directors and employees of the
personnel and industrial-relations department, directors of purchases
and assistants, superintendents and assistant superintendents, general
foremen, foremen, and assistant foremen, other persons working in a
supervisory capacity, including those having the right to hire or
discharge, and those whose duties include recommendations as to
hiring or discharging (but not persons designated as leaders), time-
study men, plant-protection employees, known as watchmen, and
all salaried employees, except those engineers, detailers, draftsmen,
and designers specifically included above whose names appear on the
pay-roll and suspended-seniority lists for the pay-roll period imme-
diately preceding the date of this Direction of -Election, including
employees who did not work during such pay-roll period because
they were ill or on vacation, to determine whether or not they desire
to be represented by C. I. 0.-International Union, United Automo-
bile Workers of America, or A. F. of L.-International Union, United
Automobile Workers of America, for the purposes of collective
bargaining, or by neither.
MR. EDWIN S . SMITH , dissenting :
I dissent from the decision that separate plant units are appropriate
in this case.
Prior to the split in the International Union, a substantial number
of the employees in the Michigan plants were members of the Inter-
national Union and of a single local thereof. It does not appear
that any other labor organization then existed among the Company's
employees. In 1937 and again in 1938 the International Union and
the Company entered into collective bargaining contracts covering
members of the International Union at all. the Michigan plants. The
bargaining history of those plants thus indicates that the employees
have organized upon a broad industrial basis.
Collective bargaining is an evolutionary process. The Board in
its decisions ought not to interfere with or check this process. The
unit in respect to which bargaining has been had is the basis and the
framework of the process. For example, the fixing of wages and
rates of pay is inseparately bound up with the scope of the unit.
BRIGGS MANUFACTURING COMPANY 1335
The current objectives and past achievements of collective bargaining
would be jeopardized and its successful future threatened if the
Board, feels free, as in this instance, to disregard substantial bar-
gaining precedent.
Although the members of the International Union at the Evansville
plant have bargained with the Company through a separate local,
and have entered into contracts covering them alone, I believe that
that plant, too, should be included in the unit. The Evansville plant
is one in a chain of production comprising the eight plants. Em-
ployees are interchanged frequently between the plants. There is
a constant flow of products and raw materials between the plants so
that a stoppage of operations in one plant would adversely affect the
other plants. Production planning and scheduling for each plant are
centralized in Detroit. The grievance machinery provided in the
contracts places ultimate settlement of all grievances in Detroit.
The similarity of working conditions as exhibited by the contracts
in evidence, the interdependence of operations, the interchangeability
of employees, and the importance for the employees as a whole of
united action in collective bargaining,9 convince me that all the plants
of the Company should be included in a single bargaining unit.
As stated in my dissent in Matter of Chrysler Corporation,10 the
majority decision, by acceding to the request of one of the factions
of the International Union for separate plant units, makes it possible
for a minority of the employees to hamper the bargaining efforts of
the majority and, in an effort to be fair to that faction, militates
against the interests of the employees as a whole.
9 See my dissenting opinion in Matter of Allis-Chalmers Manufacturing Company and
International Union, United Automobile Workers of America, Local 248, 4 N. L. R. B.
159.
1013 N L. R. B. 1303.