Cluett, Peabody & Co., Inc.

National Labor Relations Board - Board Decisions

Apr 10, 1940

22 N.L.R.B. 841 (N.L.R.B. 1940)

In the Matter Of CLUETT, PEABODY & CO., INC. and AMALGAMATED
CLOTHING WORKERS OF AMERICA
Case No. 0-1531.-Decided April 10, 1940
Shirt Manufactu?ing Industry-Settlement: stipulation providing for com-
pliance with the Act-Order : entered on stipulation.
Mr. John C. McRee and Mr. William E. Spencer, for the Board.
Sullivan c0 Cromwell, by Mr. John C. Bruton, Jr., and Mr. Marshall
MacDuge, Jr., of New York City, for the respondent.
Mr. May Bagwell and Mr. Bernard Borah, of Atlanta, Ga., for the
Union.
Mr. Louis Cokin, of counsel to the Board.
DECISION
AND
ORDER
STATEMENT OF THE CASE
Upon charges and amended charges duly filed by Amalgamated
Clothing Workers of America, herein called the Union, the National
Labor Relations Board, herein called the Board, by the Regional
Director for the Tenth Region (Atlanta, Georgia), issued its complaint
dated February 10, 1940, against Cluett, Peabody & Co., Inc., Atlanta,
Georgia, herein called the respondent, alleging that the respondent
had engaged in and was engaging in unfair labor practices affecting
commerce within the meaning of Section 8 (1) and (2) and Section
2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449,
herein called the Act. Copies of the complaint and notices of hearing
thereon were duly served upon the respondent, the Union, and upon
Free Workers League, herein called the League, a labor organization
alleged to have been dominated by the respondent.
Concerning the unfair labor practices the complaint alleged, in
substance , (1) that the respondent dominated and interfered with the
formation and administration of the League and gave it financial and
other support; (2) that the respondent threatened its employees with
lay-offs if they joined the Union and advised its employees to with-
draw from it; and (3) that by these and other acts the respondent
22 N. L . R. B., No. 58
841
842 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
interfered with, restrained, and coerced its employees in the exercise
of the rights guaranteed in Section 7 of the Act. On February 19 and
March 11, 1940, respectively, the Regional Director issued an amended
and second amended notice of hearing. On February^'29',1'1940, the
League filed with the Regional Director a motion to intervene. On
March 11, 1940, the respondent filed a motion for a bill of particulars.
Pursuant to the second amended notice of hearing, a hearing was
held on March 28 and 30, 1940, at Atlanta, Georgia, 'before Henry
W. Schmidt, the Trial Examiner duly designated by the Board. The
Board, the respondent, and the Union were represented by counsel
and participated in the hearing. Although served with notice, the
League did not appear at the hearing. On March 28, 1940, the
respondent filed an answer to the complaint.
On March 30, 1940, during the course of the hearing, the respond-
ent, the Union, and counsel for the Board entered into a stipulation
in settlement of the case. The stipulation provides as follows :
STIPULATION
Charges and amended charges having been filed with Charles
N. Feidelson, Regional Director of the National Labor Rela-
tions Board for the Tenth Region, complaint was issued and
served on all parties, wherein and whereby it was alleged that
Cluett, Peabody & Co., Inc., respondent herein, had engaged in
unfair labor practices in violation of Section 8, subsections (1)
and (2) of the National Labor Relations Act (49 Stat. 449).
On February 29, 1940, the Free Workers League filed a Motion
to Intervene. Pursuant to notice, a hearing was held at Atlanta,
Georgia on March 28, 1940 before Henry W. Schmidt, duly
authorized to act as Trial Examiner. At the hearing, no one
appeared for the Free Workers League, and J. W. Guffin, the
president of the League and the person who signed the Motion
to Intervene, announced that the League had disbanded and did
not desire to press its Motion. Guffin testified that at a meeting
on March 14, 1940, all of the members of the League present
voted to disband, and he stated that the League no longer existed
as a labor organization.
It being the intention of the parties to dispose of the matters
which have arisen, it is hereby stipulated and agreed by and
among Cluett, Peabody & Co., Inc., by its vice-president, R. O.
Kennedy, Amalgamated Clothing Workers of America, by its
representative, Bernard Borah, and John C. McRee, attorney
for the National-Labor Relations Board, as follows:
CLUETT, PEABODY & COMPANY, INC . 843
I
Cluett, Peabody & Co., Inc. is a corporation, organized and
existing under the laws of the State of New York and licensed
to f do business in the State of Georgia. It is engaged in the
manufacture, sale and distribution of collars, ties, underwear,
shirts and handkerchiefs. Its principal office is situated in the
State of New York. It operates a plant in Fulton County near
the City of Atlanta, Georgia. The said company also operates
plants in the states of New York and Massachusetts, maintain-
ing sales offices in New York, N. Y., Chicago, Illinois, St. Louis,
Missouri and San Francisco, California. All of the company's
finished products are sold under the registered trade-mark of
"Arrow."
The Atlanta plant is engaged in the manufacture of men's
shirts. The principal raw materials used at its Atlanta plant are
cotton cloth, buttons and thread. The approximate value of the
raw materials used during the year 1939 was $1,700,000. Approxi-
mately 25 per cent of the raw materials used was purchased and
shipped from states other than the State of Georgia. During the
same year, the plant produced approximately 235,000 dozen
shirts, valued at approximately $3,500,000. Of the shirts produced
approximately 90 per cent was shipped to states other than the
State of Georgia. There are about 800 employees in the Georgia
plant.
Respondent admits, for the purposes of this proceeding, that
it is engaged in interstate commerce within the meaning of
Section 2, subsections (6) and (7) of the said National Labor
Relations Act.
II
The respondent, Cluett, Peabody & Co., Inc., waives all further
and other procedure provided by the National Labor Relations
Act, or the Rules and Regulations of the National Labor Relations
Board, including the making of findings of fact and conclusions
of law.
III
On the basis of the facts stipulated in paragraph I above, the
pleadings heretofore filed, this stipulation, and by agreement of
,the parties hereto, the National Labor Relations Board may enter
its Order in-the following form in the above-entitled case :
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ORDER
The National Labor Relations Board hereby orders that Cluett,
Peabody & Co., Inc., its officers, agents, successors and assigns :
(1) Shall not:
(a) Interfere with, restrain, or coerce its employees in the exer-
cise of the right to self -organization, to form, join, or assist labor
organizations, to bargain collectively through representatives of
their own choosing, and to engage in concerted activities for the
purpose of collective bargaining or other mutual aid and protec-
tion as guaranteed in Section 7 of the Act;
(b) In any manner dominate or interfere with the administra-
tion of the Free Workers League, or with the formation or admin-
istration of any other labor organization of its employees, and
shall not contribute support to the Free Workers League or to
any other labor organization of its employees.
(2) Take the following affirmative action which will effectuate
the policies of the Act :
(a) Shall not recognize the Free Workers League as a repre-
sentative of any of its employees for the purpose of dealing with
the respondent concerning grievances, labor disputes, wages, rates
of pay, hours of employment, or other conditions of work;
(b) Immediately post in conspicuous places throughout its
Atlanta plant, for a period of at least sixty consecutive days,
notices setting forth the provisions of sub-paragraphs (a) and (b)
of paragraph (1) of this Order ;
(c) Notify the Regional Director for the Tenth Region, in
writing, within ten days from the date of this Order, what steps
respondent has taken to comply herewith.
IV. Respondent, Cluett, Peabody & Co., Inc., hereby consents
to the entry by the appropriate United States Circuit Court of
Appeals, upon application by the Board, of a consent decree en-
forcing an Order of the Board in the form hereinabove set forth,
and hereby waives further notice of the application for such
decree.
V. Respondent, Cluett, Peabody & Co., Inc., does not admit
any of the allegations of the complaint that it has violated any
provision or provisions of the National Labor Relations Act, and
expressly denies them, but is entering into this stipulation to settle
amicably matters which have arisen, and by reason of the prior
dissolution and disbanding of the Free Workers League.
VI. The entire agreement is contained within the terms of this
stipulation, and there is no verbal agreement of any kind which
varies, alters, or adds to this stipulation.
CLUETT, PEABODY & COMPANY, INC. 845
VII. It is understood and agreed that this stipulation is subject
to the approval of the National Labor Relations Board and shall
become effective immediately upon notice to the parties of the
granting of such approval. 4
On April 4, 1940, the Board issued an order approving the above
stipulation, making it a part of the record, and pursuant to Article II,
Section 36, of National Labor Relations Board Rules and Regula-
tions-Series 2, as amended, transferring the proceeding to the Board
for the purpose of entry of a decision and order pursuant to the pro-
visions of the stipulation.
Upon the basis of the above stipulation and the entire record in the
case, the Board makes the following :
FINDINGS OF FACT
1. THE BUSINESS OF THE RESPONDENT
Cluett, Peabody & Co., Inc., a New York corporation, operates a
plant at Atlanta, Georgia, where it is engaged in the manufacture
of men's shirts. It also maintains plants in the States of New York
and Massachusetts. This proceeding is concerned only with the plant
at Atlanta. The principal raw materials used by the respondent are
cotton cloth, buttons, and thread. During 1939 the Atlanta plant
expended approximately $1,700,000 for the purchase of raw materials,
25 per cent of which were shipped to it from points outside the State
of Georgia. During the same period, the respondent produced 235,000
dozen shirts, valued at approximately $3,500,000, of which approxi-
mately 90 per cent were shipped to points outside the State of Georgia.
The respondent employs approximately 800 employees at the Atlanta
plant. It admits, for the purpose of this proceeding, that it is en-
gaged in commerce within the meaning of Section 2 (6) and (7) of
the Act.
We find that the above-described operations constitute a continuous
flow of trade, traffic, and commerce among the several States.
ORDER
Upon the basis of the above findings of fact and stipulation and the
entire record in the case, and pursuant to Section 10 (c) of the Na-
tional Labor Relations Act, the National Labor Relations Board hereby
orders that Cluett, Peabody & Co., Inc., Atlanta, Georgia, its officers,
agents, successors, and assigns :
(1) Shall not:
(a) Interfere with, restrain, or coerce its employees in the exercise
of the right to self -organization , to form , join, or assist labor organiza-
846 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
tions, to bargain collectively through representatives of their own
choosing, and to engage in concerted activities for the purpose of col-
lective bargaining and other mutual aid and protection as guaranteed
in Section 7 of the Act;
(b) In any manner dominate or interfere with the administration
of the Free Workers League or the formation or administration of any
other labor organization of its employees, and shall not contribute
support to the Free Workers League or to any other labor organization
of its employees.
(2) Take the following affirmative action which will effectuate the
policies of the Act:
(a) Shall not recognize the Free Workers League as a representa-
tive of any of its employees for the purpose of dealing with the re-
spondent concerning grievances, labor disputes, wages, rates of pay,
hours of employment, or other conditions of work;
(b) Immediately post in conspicuous places throughout its Atlanta
plant, for a period of at least sixty (60) consecutive days, notices
setting forth the provisions of sub-paragraphs (a) and (b) of para-
graph (1) of this Order;
(c) Notify the Regional Director for the Tenth Region, in writing,
within ten (10) days from the date of this Order, what steps the
respondent has taken to comply herewith.