Deere & Co.

National Labor Relations Board - Board Decisions

Sep 30, 1939

15 N.L.R.B. 779 (N.L.R.B. 1939)

In the Matter of DEERE & COMPANY, A CORPORATION , JOHN DEERE
- TRACTOR COMPANY, A CORPORATION , AND DAIN MANUFACTURING
COMPANY , A CORPORATION and UNITED FARM EQUIPMENT WORKERS
OF AMERICA , THROUGH FARM EQUIPMENT WORKERS ORGANIZING
COMMITTEE
Case No. C-1345.-Decided September 30, 1939
Agricultural Machinery and Equipment Manufacturing Industry-Settlement:
stipulation providing for compliance with the Act, including abrogation of indi-
vidual contracts of employment-Order: entered on stipulation.
Mr. Jack G. Evans and Mr. Charles F. McErlean, for the Board.
Mr. S. R. Kenworthy and Mr. H. W. Pike, of Moline, Ill., Pike,
Sias c Butler by Mr. George E. Pike and Mr. B. F. Butler, of.
Waterloo, Iowa, and Mr. R. E. White, of Ottumwa, Iowa, for the
respondents.
Mr. Ben Meyers, of Chicago, Ill., for the Union.
Mr. Ray Johnson; of counsel to the Board.
DECISION
AND
ORDER
STATEMENT OF THE CASE
Upon charges and amended charges duly filed by United Farm
Equipment Workers of America, through Farm Equipment Workers
Organizing Committee, herein called the Union, the National Labor
Relations Board, herein called the Board, by the Regional Director
for the Thirteenth Region (Chicago, Illinois), issued its complaint
on August 10, 1939, against Deere & Company, a corporation, Moline,
Illinois, John Deere Tractor Company, a corporation, Waterloo,
Iowa, and Dain Manufacturing Company, a corporation, Ottumwa,
Iowa, herein collectively called-:the respondents, alleging -that the
respondents had engaged in and were engaging in unfair labor prac-
tices affecting commerce within the meaning of Section 8 (1) and
(3) and Section 2 (6) and (7) of the National Labor Relations Act,
49 Stat. 449, herein called the Act. Copies of the complaint and
notice of hearing thereon were duly served upon the respondents and
.15 N. L. R. B., No. 85.
779
780 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
the Union. On August 23, 1939, the respondents filed their respec-
tive answers to the complaint in which they admitted some of the
allegations concerning the nature and scope of the respondents' busi-
ness but denied the allegations of unfair labor practices. .
Concerning the unfair labor- practices the complaint alleged in
substance that the respondents, jointly and severally at various times
from July 5, 1935, to the date of the issuance of the. complaint, re-
quired as a condition of employment that their employees sign con-
tracts providing that during the life of said contracts the employees
were not to join in any concerted movement for a change in wages,
hours, or other conditions of said contracts; that the respondents
required their employees to enter into said contracts to prevent,
impede, discourage, and nullify the right of their employees to form,
join, or assist labor organizations, to deprive their employees of their
right to bargain collectively through representatives of their own
choosing, to interfere with, restrain, and coerce their employees in
the exercise of their rights to propose changes as to wages, hours of
employment, and other conditions of employment, and to prevent,
impede, discourage, and defeat any concerted activities among their
employees for the. purposes of collective bargaining or other mutual
aid or protection; that the respondents by entering into and enforc-
ing said contracts discriminated in regard to hire and tenure of
employment and the terms and. conditions of employment; and that
the respondents by thei afore-mentioned activities, and by engaging
in espionage of their employees' activities for the purposes of collec-
tive bargaining or union affiliation, and by advising, urging, and
warning their employees to refrain from joining or assisting the
Union, by threatening to blacklist employees who joined or assisted
the Union, by posting a bulletin in the plant misinforming or only
partly informing their employees as to their rights under the Act,
and by other acts, interfered with, restrained, and coerced their
,employees in the exercise of rights guaranteed in Section 7 of the Act.
Pursuant to notice a hearing was held on August 21, 22, 23, and
24, 1939, at Davenport, Iowa, before Howard Meyers, the Trial Exam-
iner duly designated by the Board. The Board, the respondents, and
the Union were represented by counsel and participated in .the hear-
ing. Full opportunity to be heard, to examine and cross-examine
witnesses, and to introduce evidence bearing on the issues was af-
forded all parties. Upon motions of all parties, the Trial Examiner
,granted adjournments from time to time in order to allow the parties
opportunity to negotiate a settlement of the issues involved.
On August 24, 1939, the respondents, the Union, and counsel for
the Board entered into a stipulation in settlement of the case. This
stipulation provides as follows :
DEERE & COMPANY 781
STIPULATION AND AGREEMENT
It is hereby stipulated and agreed by and between Deere &
Company, an Illinois corporation, by S. R. Kenworthy and
H. W. Pike, its attorneys, John Deere Tractor Company, an
Iowa corporation, by George E. Pike and B. F. Butler, its attor-
neys, Dain Manufacturing Company, an Iowa corporation, by-
R. E. White, its attorney, hereinafter collectively called Respond-
ents, United Farm Equipment Workers of America, through.
Farm. Equipment Workers Organizing Committee, hereinafter-
called the Union, by Ben Meyers, its attorney, and Jack G. Evans.
and Charles F. McErlean, attorneys, National Labor Relations.
Board, hereinafter called the Board, that:
I. Upon Charges, as amended, duly filed by the Union, through.
Ben Meyers, an accredited agent and representative of the Union:
for that purpose, the Board, by G. L. Patterson, Regional Direc-
tor for the Thirteenth Region (Chicago, Ill. ), acting pursuant
to authority granted in Section 10 (b) of the National Labor
Relations Act, 49 Stat. 449, hereinafter called the Act, and pur-
suant to Article II, Section 23, and Article IV, Section 3 of the
National Labor Relations Board Rules and Regulations, Series 2,.
duly issued a Complaint and Notice of Hearing thereon, on
August 10, 1939, against Respondents, and each of them. On.
August 11, 1939 true and accurate copies of the Complaint, Notice
of Hearing, Second Amended Charge, and National Labor Rela-
tions Board Rules and Regulations, Series 2, were duly served
upon the Respondents, and each of them, and the Union. On,
August 21, 1939, Respondents, and each of them, filed their
answers to the Complaint.
II. A hearing was convened August 21, 22 and 23, 1939, at
the Federal District Court Room, United States Post Office,.
Davenport, Iowa, before Howard Meyers, a Trial Examiner duly
designated by the Board, at which time and place Respondents,.
and each of them, and the Union appeared and were duly repre-
sented, and were afforded an opportunity to participate in the
hearing, to call, examine and cross-examine witnesses and to
introduce pertinent evidence. Upon motion of all parties, the
Trial Examiner granted adjournments from time to time in order
to allow the parties opportunity to negotiate a settlement of any
or all of the issues involved. The parties hereto expressly waive
their rights to any further hearing in this matter, filing of briefs
and exceptions, oral argument before the Board, and the making
of Findings of Fact and Conclusions of Law by the Board.
III. Paragraphs 1, 2, and 3 of the Complaint and the corre-
sponding paragraphs in the respective answers of Respondents,
above referred to, are hereby incorporated by reference herein
782 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
the same as if rewritten . For the fiscal year ending October 31,
1938, Respondent . Deere & Company purchased and caused to be
transported raw materials from points outside the State of Illi-
nois to the plants in the State of Illinois referred to in the Com-
plaint as the Moline Works , valued at approximately $8,000,000,
and during the same period sold and /or distributed finished prod-
ucts valued at approximately $23,675,000 , of which approximately
$21,600,000 were transported or caused to be transported from
said plants in the State of Illinois to points outside of the State
of Illinois and to foreign countries ; Respondent John Deere
Tractor Company , during the same period purchased and caused
to be transported raw materials from points outside of the State
of Iowa to the plant in the State of Iowa , referred to in the Com-
plaint as the Tractor Works, valued at approximately $6,000,000,
and during the same period sold and/or distributed finished prod-
ucts valued at approximately $21,440,000, of which approximately
$18,690,000 were transported or caused to be transported from
said plant in the State of Iowa to points outside the State of
Iowa - and to foreign countries ; and Respondent Dain Manufac-
turing Company , during the same period purchased and caused
to be transported raw materials from points outside the State of
Iowa to the plant in the State of Iowa, referred to in the Com-
plaint as the Dain Works , valued at approximately $500,000, and
during the same period sold and/or distributed finished products
valued at approximately $1,400,000, of which approximately
$1,200,000 was transported or caused to be transported from said
plant in the State of Iowa to points outside the State of Iowa
and to foreign countries.
Respondents , and each of them , are engaged in interstate com-
merce within the meaning of the Act.
IV. United Farm Equipment Workers of America and Farm
Equipment Workers Organizing Committee, are labor organiza-
tions within the meaning of Section 2, Subdivision (5) of the Act.
V. This stipulation and agreement, the Complaint, Notice of
Hearing, Charge, Amended Charge, Second Amended Charge,
National Labor Relations Board Rules and Regulations, Series
2, Affidavit of Service of the Complaint, Notice of Hearing, Sec-
ond Amended Charge, and National Labor Relations Board Rules
and Regulations, Series 2, upon the parties, respective answers
of the Respondents, order of the Board appointing the Trial
Examiner, and transcripts of the hearing, may be introduced as
evidence in the record in this matter forthwith by filing the same
with the Chief Trial Examiner of the Board at Washington, D. C.
VI. It is alleged that the acts contained in paragraphs 5, 6, 7,
8, 9, 10, and 11 of the Complaint, constitute violations of Section
DEERE Rc_ COMPANY - 783
8, Subdivision (1) and Subdivision (3) of the Act, which allega-
tions the Respondents deny; Respondents further deny that they
have in the past or are now violating said Section 8, Subdivision
(1), or Section 8, Subdivision (3) of the Act, or any of the terms
or provisions of the National Labor Relations Act.
It is further stipulated and agreed that whatever rights Re-
spondents and/or their. respective employees may now have or
,may hereafter acquire, if any, to enter into and/or maintain
written individual contracts of employment, including such con-
tracts now in existence, (except as modified by Section 1 (a) and
(b) of Paragraph VI hereof), and to receive and enjoy the bene-
fits or the rights, if any, conferred thereby, are in nowise limited
by this stipulation or the order based thereon.
It is further stipulated and agreed that no finding has been
made or is herein made that Respondents have committed the
unfair labor practices alleged in the Complaint, or any of them,
the parties hereto having herein expressly agreed to waiving the
making of findings of fact and conclusions by the Board.
It is further stipulated and agreed between the parties hereto
that this stipulation shall not be used as evidence in any pro-
ceeding other than this proceeding for the purpose of establishing
any fact referred to, recited, or alleged in this stipulation, and/or
complaint. The parties hereto reserve their right to contest any
fact so set forth herein in any proceeding other than the instant
proceeding, or other than any proceeding directly growing out
of this proceeding.
It is further stipulated and agreed by and between the parties
hereto, that, upon the entire record in this matter and this stipu-
lation and agreement, if approved by the Board, an order may
forthwith be entered by the Board, providing as follows, (it being
understood and agreed, however, that the words "cease and de-
sist" hereinafter used in the order to be entered, shall not be con-
strued as an admission by Respondents that the unfair labor prac-
tices alleged in the Complaint were committed, and that said order
shall be subject to any agreements hereinbefore recited), Respond-
ents, Deere & Company, a corporation, John Deere Tractor Com-
pany, a corporation, and Dain Manufacturing Company, a cor-
poration, their officers, agents, successors and assigns, shall each :
1. Cease and desist from :
(a) In any manner maintaining, enforcing, or attempting to
maintain or enforce, or giving effect to the provision in any writ-
ten individual contract of employment now in effect with any of
Respondents' employees, or any like or similar provision, that the
employee agrees "not to join in any concerted movement, during
784 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
the life of this contract, for a change in wages, hours or other
conditions of this contract;"
(b) Maintaining, enforcing, or entering into any written indi-
vidual contract with any of Respondents' employees, which con-
tains the provision set forth in 1 (a) above, or which contains
any like or similar provision;
(c) Acting upon or interpreting any written individual con-
tract with Respondents' employees in such a manner as to violate
Section 8 of the Act, for the purpose of interfering with, re-
straining, or coercing Respondents' employees in the exercise of
the rights guaranteed them in Section 7 of the Act;
(d) Discriminating in regard to hire, tenure, terms or condi-
tions of employment, by entering into, maintaining, enforcing,
or imposing as a condition of employment, any written indi-
vidual contract, to discourage membership in the Union or any
labor organization;
(e) In any other manner-interfering with, restraining, or co-
ercing Respondents' employees in the exercise of the right to
self-organization, to form, join, or assist labor organizations, to
bargain collectively through representatives of their own choos-
ing, and to engage in concerted activities, for the purpose of
collective bargaining or other mutual aid or protection.
2. Take the following affirmative action, in order to effectuate
the policies of the National Labor Relations Act :
(a) Immediately upon the approval of this stipulation and
agreement by the Board, notify in writing each of Respondents'
employees with whom written individual contracts of employ-
ment have been executed and are now in effect, containing a pro-
vision that the employee agrees "not to join in any concerted
movement, during the life of this contract, for a change in
wages, hours or other conditions of this contract," or which con-
tains a like or similar provision, that such provision) will no
longer be maintained or enforced, or attempted to be maintained,
enforced, or given effect to by Respondents against any of Re-
spondents' employees;
(b) Immediately upon the approval of this stipulation and
agreement by the Board, post notices to Respondents' employees
in conspicuous places throughout all their plants located in
Moline and East Moline, Illinois, and Waterloo and Ottumwa,
Iowa, and maintain such notices for a period of at least sixty
(60) consecutive days from the date of posting, stating that (1)
Respondents, and each of them, will cease and desist as aforesaid,.
and (2) that Respondents, and each of them, will notify their
employees as set forth in Paragraph 2 (a) of this order;
DEERE & COMPANY 785
(c) Notify the Regional Director for the Thirteenth Region
of the Board (Chicago, Illinois); in writing within ten (10)
days from the date of approval of this stipulation and agreement
by the Board, what steps Respondents, n,nd each of them, have
taken to comply herewith.
VII. It is further stipulated and expressly agreed that any
United States Circuit Court of Appeals may, upon application
by the Board at the convenience of the Board, enter its decree
enforcing the order of the Board, as provided in form set forth
in Paragraph VI herein, and Respondents, and each of them,
expressly waive their rights to contest the entry of any such
decree and to receive notice of the filing of an application for
the entry of such decree.
VIII. This stipulation and agreement is made subject to the
approval of the Board. However, Respondents reserve the right
to withdraw from this stipulation and agreement if the same is
not approved by the Board within ten (10) days from the date
hereof. If this stipulation and agreement is not approved by
the Board, then no advantage is to be taken by any party to it
of any matter or thing contained therein in the hearing of this
cause, and this stipulation and agreement is not to be introduced
in evidence by any party in said hearing.
IX. All terms agreed upon are contained within this stipula-
tion and agreement and there is no verbal agreement of any kind
which varies, alters, or adds to this stipulation and agreement.
On August 29, 1939, the Board issued its order approving the
above stipulation, making it part of the record, and transferring the
proceeding to the Board for the purpose of entry of a decision and
order by the Board.
Upon the above stipulation and the entire record in the case, the
Board makes the following :
FINDINGS OF FACT
I. THE BUSINESS OF THE RESPONDENTS
Deere & Company, an Illinois corporation, has its principal office
and place of business at Moline, Illinois. Deere & Company, directly
and through subsidiaries, designs, manufactures, sells, and distributes
agricultural machinery and equipment. It is the second largest pro-
ducer of agricultural machinery and equipment in the United States.
For the fiscal year ending October 31, 1938, Deere & Company pur-
chased and caused to be transported raw materials valued at ap-
proximately $8,000,000 from points outside the State of Illinois to
its plants at Moline, Illinois, and during the same period sold prod-
ucts valued at approximately $23,675,000, ' of which approximately
786 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
$21,600,000 represented shipments to points outside the State of
Illinois.
John Deere Tractor Company, a wholly owned subsidiary of Deere
& Company, is an Iowa corporation, having its principal office and
place of business at Waterloo, Iowa, and is engaged in the design,
sale, and distribution of farm tractors. During the fiscal year ending
October 31, 1938, John Deere Tractor Company purchased and caused
to be transported raw materials valued at approximately $6,000,000
from points outside the State of Iowa to its plant at Waterloo, Iowa,
and during the same period sold products valued at approximately
$21,440,000, of which approximately $18,690,000 represented ship-
ments.to points outside the State of Iowa.
Dain Manufacturing Company, a wholly owned subsidiary of
Deere & Company, is an Iowa corporation having its principal office
and place of business at Ottumwa, Iowa., and is engaged in the de-
sign, manufacture, sale, and distribution of sweep rakes, shock
sweeps, hay loaders, hay stackers, hay pressers, kafir headers, pump
jacks, and concrete mixers. During the fiscal period ending October
31, 1938, Dain Manufacturing Company purchased and caused to be
transported raw materials valued at approximately $500,000 from
points outside the State of Iowa to its plant at Ottumwa, Iowa, and
during the same period sold products valued at approximately $1,-
400,000, of which approximately $1,200,000 represented shipments to
points outside the State of Iowa.
The respondents admit that they are engaged in interstate coin-
merce within the meaning of the Act.
We find that the above-described operations constitute a continu
ous flow of trade, traffic, and commerce among the several States. .
ORDER
Upon the basis of the above findings of fact and stipulation, and
upon the entire record in the case, and pursuant to Section 10 (c)
of the National Labor Relations Act, the National Labor Relations
Board hereby orders that respondents, Deere & Company, a corpora-
tion, John Deere Tractor Company, a corporation, and Dain Manu-
facturing Company, a corporation, their officers, agents, successors,
and assigns, shall each :
1. Cease and desist from :
(a) In any manner maintaining, enforcing, or attempting to main-
tain or enforce, or giving effect to the provision in any written indi-
vidual contract of employment now in effect with any of respondents'
employees, or any like or similar provision, that the employee agrees
"not to join in any concerted movement, during the life of this con-
tract, for a change in wages, hours or other conditions of this con-
tract";
DEERE & COMPANY 787
(b) Maintaining,, enforcing, or entering into any written individual
contract with any of respondents' employees, which contains the
provision set forth in 1 (a) above, or which contains any like or
similar provision ;
(c) Acting upon or interpreting any written individual contract
with respondents' employees in such a manner as to violate Section
8 of the Act, for the purpose of interfering with, restraining,' or co-
ercing respondents' employees in the exercise of the rights guaranteed
them in Section 7 of the Act;
(d) Discriminating in regard to hire, tenure, terms or conditions
of employment, by entering into, maintaining, enforcing, or imposing
as a condition of employment, any written individual contract, to dis-
courage membership in the Union or any labor organization;
(e) In any other manner interfering with, restraining, or coercing
respondents' employees in the exercise of the right to self-organiza-
tion, to form, join, or assist labor organizations, to bargain collec-
tively through representatives of their own choosing, and to engage
in concerted activities, for the purpose of collective bargaining or
other mutual aid or protection.
2. Take the following affirmative action, in order to effectuate the
policies of the National Labor Relations Act :
(a) Immediately upon the approval of this stipulation and agree-
ment by the Board, notify in writing each of respondents' employees
with whom written individual contracts of employment have been
executed and are now in effect, containing a provision that the em-
ployee agrees "not to join in any concerted movement, during the
life of this contract, for a change in wages, hours or other conditions
of this contract," or which contains a like or similar provision, that
such provision will no longer. be maintained or enforced, or at-
tempted to be maintained, enforced, or given effect to by respondents
against any of respondents' employees;
(b) Immediately upon the approval of this stipulation and agree-
ment by the Board, post notices to respondents' employees in con-
spicuous places throughout all their plants located in Moline and
.East Moline, Illinois, and Waterloo and Ottumwa, Iowa, and main-
tain such notices for a period of at least sixty (60) consecutive days
from the date of posting, stating that (1) respondents, and each of
them, will cease and desist as aforesaid, and (2) that respondents,
and each of them, will notify their employees as set forth in para-
graph 2 (a)' of this Order;
(c) Notify the Regional Director for the Thirteenth Region of the
Board (Chicago, Illinois) in writing within ten (10) days from
the date of approval of this stipulation and agreement by the Board,
what steps respondents, and each of them, have taken to comply
herewith.