Consolidated Aircraft Corp.

National Labor Relations Board - Board Decisions

Jun 22, 1938

7 N.L.R.B. 1061 (N.L.R.B. 1938)

In the Matter Of CONSOLIDATED AIRCRAFT CORPORATION and INTERNA-
TIONAL UNION, UNITED AUTOMOBILE WORKERS OF AMERICA, LOCAL
No. 506, C. 1. O.
Case No. B-761.-Decided June ,2, 1938
Aircraft and Parts Manufacturing Industry-Investigation of Representatives:
controversy concerning representation of employees : controversy concerning
appropriate unit; , rival organizations ; substantial doubt as to majority status--
Contract : terminable , by its terms, if "a majority of the employees in the unit
should elect other representation," no bar to election-Unit Appropriate for
Collective Bargaining : hourly rated employees , excluding timekeepers and
superintendent 's clerks ; prior Decision of Board ; existing contract ; welders
included in larger unit as not a separate craft-Election Ordered
Mr. William R. Walsh, for the Board.
Packard i Carter, by Mr. Marshall Ross, of Los Angeles, Calif.,
and James S. Lowrie, of San Diego, Calif., for the U. A. W. A.
Mr. Charles C. Crouch, of San Diego, Calif., for the I. A. M.
Mr. Jimmie Goss, of West Los Angeles, Calif., for the Welders.
Mr. Warren L. Sharfman, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On April 23, 1938, International Union, United Automobile Work-
ers of America, Local No. 506, C. I. 0., herein called the U. A. W. A.,
filed with the Regional Director for the Twenty-first Region (Los
'Angeles, California) a petition alleging that a question affecting
commerce had arisen concerning the representation of employees of
Consolidated Aircraft - Corporation, San Diego, California, herein
called the Company, 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 April 29,
1938, the National Labor Relations Board, herein called the Board,
acting pursuant to Section 9 (c) of the Act and Article III, Sec-
tion 3, of National Labor Relations Board Rules and Regulations-
Series 1, as amended, ordered an investigation and authorized the
1061.
1062 NATIONAL LABOR RELATIONS BOARD
Regional Director to conduct it and to provide for an appropriate
hearing upon due notice.
On May 4, 1938, the Regional Director issued a notice of hearing,
copies of which were duly served upon the Company, upon the
U. A. W. A., upon International Association of Machinists, Aircraft
Lodge No. 1125,1 herein 'cal'led the I. A. M., a labor organization
named in the petition as claiming to represent employees directly
affected by the investigation, upon the International President of the
Grand Lodge, International Association of Machinists, and upon
United Aircraft Welders of America, herein, called the Welders,
another labor organization named in the petition as claiming to repre-
sent employees directly affected by the investigation. Pursuant to
the notice, a hearing was held on May 10, 11, and 12, 1938, at San
Diego, California, before George Kennedy, the Trial Examiner duly
designated by the Board. The Board, the U. A. W. A., and the
1. A. M. were represented by counsel and the Welders -by their busi-
ness agent. All parties 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 several rulings on
motions and on objections to the admission of evidence; The Board
has reviewed these rulings and finds that no prejudicial errors were
committed. The rulings are hereby affirmed.
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
1. THE BUSINESS OF THE COMPANY
Consolidated Aircraft Corporation, is Delaware corporation with
its main office and plant in San Diego, California, is engage& in the
design, manufacture, development, and sale of aircraft, aircraft parts,
and accessories. It is 'the largest manufacturer of air boats in the
world; the largest contractor to the United 'States Navy for aircraft;
and the second or third largest airplane manufacturing establishment
in the United States. The Company has approximately 2,500 pro-
duction employees and a monthly pay roll of $290,000, exclusive of
amounts paid to executives and for overtime work.
During'the year 1937 the Company spent approximately $5,600,000
for the purchase of 'materials, supplies, and equipment. Included in
this amount were purchases of materials -made during the 7 months
ending December 31, ,1937, from certain vendors in New York, Con-
1 The notice was incorrectly mailed to International Association of Machinists, Box
618, La Jolla, California. However, at the hearing the I. A. M. waived , Its',right -to
object to the irregularity.
e
DECISIONS AND O1tDEUS 1063
necticut, Ohio, and New Jersey, which totaled $1,094,135. During the
year 1937 the Company also purchased $775,000 worth of aluminum
and duralumin, the chief materials used by the Company in the con-
struction of aircraft, from the Aluminum Company of America.
While some of the aluminum and duralumin was supplied from the
Los Angeles warehouse of the Aluminum Company, it all originated
in New York, New Jersey, Pennsylvania, or Tennessee.
The sales of the Company aggregated $11,907,493.48 during the year
1937. Of this amount $22,,423.13 consisted of sales to the United
States Army, $9,670,918.21 of sales to the United States Navy, and
$2,214,152.14 -of sales to commercial and export customers. Sub-
stantially all of the sales to commercial and export customers repre-
sented deliveries made outside of California. Sales to the Army or
Navy are made f. o. b. factory if the goods are shipped by rail. If
the goods are delivered in "fly-a-way" condition, as air boats for the
Navy, they are taken by the Navy from the ramp on Lindbergh
Field, where the factory is located.
The respondent admitted that it was engaged in interstate com-
merce and that it was within the jurisdiction of the Board.
II. THE ORGANIZATIONS INVOLVED
International Union, United Automobile Workers of America,
Local No. 506; C. I. 0., is a labor organization affiliated with the
Committee for Industrial Organization, admitting to its membership
hourly rated production and maintenance employees of the Company.
International Association of Machinists, Aircraft Lodge No. 1125,
is a labor organization affiliated with the American Federation of
Labor, admitting to its membership hourly rated employees of the
Company engaged in production or maintenance.
United Aircraft Welders of America is an unaffiliated labor or-
ganization, admitting to its membership all of the welders employed
by the Company.
III. THE QUESTION CONCERNING REPRESENTATION
On April 8, 1937, after a petition requesting an investigation and
certification of representatives pursuant to Section 9 (c) of the Act
had been filed by the I. A. M., the Board issued a Direction of Elec-
tion 2 providing for a vote by secret ballot among the employees of
the Company in an appropriate unit to determine the representatives
of the employees in that unit for the purposes of collective bargain-
ing. The I. A. M. received a majority of the votes at the 'election
2Matter of Consolidated Aircraft Corporation and International Association of Ma-
ch,nists, Aircraft Lodge No. 1125, 2 N L. R. B. 772 l
106791-38-vol. vii-68
1064 NATIONAL LABOR RELATIONS BOARD
held on April 10, 1937, pursuant to the Board's Direction.3 On
April 26, 1937, the I. A. M. entered into a contract with the Com-
pany for all of the employees'in the appropriate unit, covering rates
of pay, wages, hours of employment and other conditions of employ-
ment. The contract provided that it would run for 1 year, and
would continue in effect thereafter until "amended by agreement
upon thirty days written prior notice by either party thereto or
unless by legal procedure such as the election of 10 April 1937, a
majority of the employees in the unit should elect other represen-
tation."
On July 12, 1937, the members of the I. A. M. voted.to disaffiliate
,with the I. A. M., and affiliated with the U. A. W. A. For the most
part the old officers of the I. A. M. retained their respective offices
in the U. A. W. A. On July- 14, 1937, the U. A. W. A. offered to
,continue the contract in effect, and requested the Company to deal
with a duly appointed committee of the U. A. W. A. on questions
arising under it. The Company reserved its decision on this ques-
tion, and for a month or more "hesitated" to, and did not, bargain
with the I. A. M. or the U. A. W. A. Late in August the Com-
pany started to meet again with a newly elected committee from the
T. A. Al.) not, the Company avers, because it was believed to represent
a majority of the employees, but because the I. A. M. was thought
to be the other party to the contract.
Since the events of July 1937, there have been conflicting views as
to what representation the employees of the Company desire. At
the hearing neither the I. A. M. nor the U. A. W. A. claimed to have
a majority of the 2,500 hourly rated employees in the ranks of their
membership. Both, however, have a substantial number of mem-
bers among the employees. Many of the employees are satisfied with
the representation of the I. A. M., although they are not members of
that organization. Many other employees favor representation by
the U. A. W. A. although they are not members of the U. A. W. A.
The U. A. W. A. claims that a majority of the employees favor rep-
resentation by it. The I. A. M. is not opposed to an election.
The Company took the position that in view of its contract with
the I. A. M. the Board should deny the request by the U. A. W. A.
for an election unless the U. A. W. A. represented a majority of the
employees covered by the contract. As the contract, by its own terms,
is terminable if "a majority of the employees in the unit should elect
other representation," it is clear that it is no bar to an election. Nor
is the fact that the petition was filed by a labor organization whose
3Ibzd The I A. M was certified as the exclusive representative of all of the employees
in the appropriate unit in the Board's Decision and Certification of Representatives issued
on April 30, 1937.
DECISIONS AND ORDERS 1065
membership included less than a majority of the employees in an
appropriate unit any bar to an election, for the existence of such a
majority would obviate the necessity of holding an election.
We find that a question has arisen concerning 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 Com-
pany described in Section I above, has a close, intimate, and sub-
stantial relation to trade, traffic, and commerce among the several
States, and tends to lead to labor disputes burdening and obstruct-
ing commerce and the free flow of commerce.
V. THE APPROPRIATE UNIT
In Matter of Consolidated Aircraft Corporation and International
Association of Machinists, Aircraft Lodge No. 1125,4 decided April
30, 1937, we found that "the hourly paid employees of the Company,
except the general office and other office and clerical employees wher-
ever located, those engaged in the engineering department, and those
classified as executives or timekeepers, constitute a unit appropriate
for the purposes of collective bargaining." The contract between'
the Company and the I. A. M., which has been in effect during the
past year, covered "all of the employees in the Unit as defined by
the National Labor Relations Board * * *, to wit : All hourly
paid employees, exclusive of timekeepers and excepted clerks." The
U. A. W. A. and the I. A. M. are agreed that the "excepted clerks"
are the hourly paid superintendent's clerks.
The Welders contend that the welders are a separate craft and
constitute a unit appropriate for the purposes of collective bargain-
ing. It claims to represent the proposed unit by virtue of a peti-
tion signed by all 28 of the welders designating it as their bargain-
ing agent. George Draper, a member of the Welders, testified that
welding is differentiated from other work at the plant in that it
requires a degree of special experience and skill; that 20 of the 28
welders employed by the Company are Army-Navy certified welders
who have passed special examinations; that welders are exposed to
special occupational hazards; and that they consider themselves to
be highly skilled craftsmen.
The record indicates that the Company considers welders to be
like other. production employees. Welders number only 28 out of
2 N. L. R. B 772
1066 NATIONAL LABOR RELATIONS BOARD
2,500 production employees and are employed in the inspection
department, the heat-treat and spot-weld department, and the weld-
ing, plating, and sandblasting department.
In Matter of Great Lakes Engineering Works and Welders Inter-
national Association 5 we said :
In most industries welding and burning are operations per-
formed by skilled workmen in connection with their work in a
broader field, as for example, the craft of boiler making. Weld-
ing and burning are performed in connection with the construc-
tion and repair of boilers which requires, in addition, craftsmen
particularly skilled in other operations. This is also true of
nearly every industry requiring use of the burning or welding
process. Consequently, welders and burners, or either alone, do
not constitute a distinct craft and are in most cases necessarily
merged into crafts with which their work is associated.
In that case we recognized an exception to the general rule upon
a showing that the welders and burners.there involved had been
segregated into one department under one foreman for a period of
20 years. The instant case presents no reason for departure from
the rule." We will therefore include the welders in the larger unit.
We find the hourly rated employees of the Company, excluding
timekeepers and superintendent's clerks, constitute a unit appropriate
for the purposes of collective bargaining and that said unit will
insure to employees of the Company the full benefit of their right to
self-organization and collective bargaining and otherwise effectuate
the policies of the Act.
VI. THE DETERMINATION OF REPRESENTATIVES
Neither the I. A. M. nor the U. A. W. A. claimed to have a
majority of the employees in the unit which we have found to be
appropriate for the purposes of collective bargaining within the
ranks of their membership.
WWTe find that the question which has arisen concerning the repre-
sentation of employees can best be resolved by means of an election
by secret ballot. None of the parties made any recommendations
as to the date which should be selected for the determination of
eligibility to vote. However, at the hearing, a list of the hourly
employees of the Company as of May 6, 1938, was introduced into
evidence. Those employees in the appropriate unit whose names
are on that list shall be eligible to vote.
e 5 N. L. R. B. 788.
e Matter of The Novelty Steam Boiler Works and Local 101 , Welders , Burners, Appren-
tices , A F. of L, 7 N. L R B. 969
DECISIONS AND ORDERS 1067
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 Consolidated Aircraft Corporation, San
Diego, California, within the meaning of Section 9 (a) and Section
2 (6) and (7) of the National Labor Relations Act.
2. The hourly rated employees of the Company, excluding time-
keepers and superintendent's clerks, constitute a unit appropriate
for the purposes of collective bargaining, 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 1, as amended, it
is hereby
DIRECTED that, as part of the investigation authorized by the Board
to ascertain representatives for collective bargaining with Consoli-
dated Aircraft Corporation, San Diego, California, an election by
secret ballot shall be conducted within fifteen (15) days from the
date of this Direction, under the direction and supervision of the
Regional Director for the Twenty-first 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 the
hourly rated employees who were employed by Consolidated Aircraft
Corporation as of May 6, 1938, excluding timekeepers, superintend-
ent's clerks, and those employees who left the employ of the Company
or were discharged for cause between such date and the date of elec-
tion, to determine whether they desire to be represented by Inter-
national Union, United Automobile Workers of America, Local
No. 506, C. I. 0., or by International Association of Machinists, Air-
craft Lodge No. 1125, for purposes of collective bargaining, or by
neither.
MR. EDWIN S. SMITH, concurring :
I concur in the result reached in the opinion of the Board.
I do not think, however, that the question of whether or not the
welders are a craft is determinative of the issue raised here. I
believe that welders are a class of skilled workers with common
economic interests and that they may, under certain circumstances,
constitute a unit appropriate for the purposes of collective bargain-
1068 NATIONAL LABOR RELATIONS BOARD
ing.7 However, in the instant case, where collective bargaining has
proceeded for over a year on the basis of an industrial unit as defined
in a written contract and where the welders now seek for the first
time to bargain as a distinct unit, I do not believe that the effective-
ness of the bargaining power of the great majority of the employees
should be impaired by splitting off from the industrial unit a sepa-
rate unit for the welders, even if they constituted a craft or may
constitute an-appropriate unit under other circumstances.
° See my dissent in Matter of The Novelty Steam Boiler Works and Local 101, Welders,
B uiners, Apprentices , A. F. of L, 7 N. L R. B. 969.