Eaton Manufacturing Co.

National Labor Relations Board - Board Decisions

Jan 16, 1941

29 N.L.R.B. 53 (N.L.R.B. 1941)

In the Matter of EATON MANUFACTURING COMPANY and INTERNA-
TIONAL UNION, UNITED AUTOMOBILE WORKERS OF AMERICA, AFFILI-
ATED'WITH THE CONGRESS OF INDUSTRIAL ORGANIZATIONS
Case No. R-2238.-Decided January 16, 1941
Jurisdiction : automotive and aircraft parts manufacturing industry.
Practice and Procedure : no question concerning representation found to exist in
view of a valid existing contract between Company and intervening union.
Mr. Oscar Grossman, for the Board.
Mr. Maurice Sugar, of Detroit, Mich., by Mr. Ernest Goodman and
Mr. Nedwvn L. Smokier, for the U. A. W.-C. I. O.
Mr. Joseph H. Padway, of Washington, D. C., by Mr. Henry
Kaiser, for the U. A. W.-A. F. of L.
Mr. Richard Inglis, of Cleveland, Ohio, and Mr. Lloyd P. Crane,
of Saginaw, Mich., for the Company.
M. Edward Scheunemann, of counsel to the Board.
DECISION
.AND
ORDER
STATEMENT OF THE CASE
On October 12; 1940, International Union, United Automobile
Workers of America, affiliated with the C. I. 0., herein called the
U. A. W.-C. I. 0., filed with the Regional Director for the Seventh
Region (Detroit, Michigan) a petition alleging that a question affect-
ing commerce had arisen concerning the representation of employees
of Eaton Manufacturing Company, Wilcox-Rich Division, Saginaw
Plant, Saginaw, Michigan, herein called the Company, and request-
ing an investigation and certification of representatives pursuant to
Section 9 '(c) of National Labor Relations Act, 49 Stat. 449, herein
called the Act. On November 20, 1940, the National Labor Relations
Board, herein called the Board, issued its Order Dismissing the Peti-
tion. On December 17, 1940, the Board issued its Order Revoking
Order Dismissing Petition, and, acting pursuant to Section 9, (c)
of the Act, and Article III, Section 3, of National Labor Relations
Board Rules and Regulations-Series 2, as amended, ordered an in-
29 N L R. B, No 12.
53
54 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
vestigation and authorized the Regional Director to conduct it and
to provide for an appropriate hearing upon due notice.
On December 17, 1940, the Regional Director issued a notice of
hearing, copies of which were duly served upon the Company, the
U. A. W.-C. I. 0., and International Union, United Automobile
Workers of America-A. F. of L., herein called the U. A. W.-
A. F. of L.
Pursuant to the notice a hearing was held on December 27 and 28,
1940, at Saginaw, Michigan, before William R. Ringer, the Trial
Examiner duly designated by the Board. The Board, the Company,
the U. A. W.-C. I. 0., and the U. .A. W.-A. F. of L., represented by
counsel, participated in the hearing and were afforded full oppor-
tunity to be heard, to examine and cross-examine witnesses and to
introduce evidence bearing on the issues. During the course of the
hearing the Trial Examiner made a number of 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 preju-
dicial errors were committed. The rulings are hereby affirmed.
On January 13, 1941, the U. A. W.-C. I. O. and the U. A. W.-
A. F. of L. filed briefs which the Board has duly considered. On
January 14, 1941, pursuant to notice served on all parties, these or-
ganizations appeared by counsel in Washington, D. C., and presented
oral argument before the Board.
Upon the entire record in the case, the Board makes the following:
FINDINGS OF FACT
1. THE BUSINESS OF THE COMPANY
The Company, an Ohio corporation, with its principal office and
place of business in Cleveland, Ohio, is engaged in the manufacture
of automotive and aircraft parts in its plants located in the cities
of Saginaw, Battle Creek, Marshall, Vassar, and Detroit, Michigan,
and in Cleveland and Massillon, Ohio.
During the period January 1, 1940 to December 1, 1940, the Com-
pany purchased for use in its plant at Saginaw, Michigan,'the only
plant involved in this proceeding, raw materials and other supplies
valued at approximately $900,000, and it obtained approximately 60
per cent in value of such materials from States other than Michigan.
During the same period it manufactured at the Saginaw plant goods
valued at approximately $3,250,000 and it shipped approximately
29.8 per, cent in value of such goods to States other than Michigan.
The Company admits that it is engaged in interstate commerce with-
in the meaning of the Act.
EATON MANUFACTTIRING COMPANY
II. THE ORGANIZATIONS INVOLVED
55
International Union, United Automobile Workers of America, is
a labor organization affiliated with the Congress of Industrial Or-
ganizations . It admits to membership employees of the Company.'
International Union, United Automobile Workers of America, is
a labor organization affiliated with the American Federation of
Labor. It admits to membership employees of the Company.
III. THE ALLEGED QUESTION CONCERNING REPRESENTATION
On or about May 23, 1937, the Company and the U. A. W.-C. I. O.
entered into a master collective bargaining agreement covering eight
ofthe Company's plants. The agreement provided, inter alia, that
it should become effective in each plant of the Company only upon
the execution of a supplementary contract between the Company and
the Local of the U. A. W.-C. I. O. in each plant. Thereafter supple-
mentary agreements were executed between the Company and each of
the Locals. In November 1938, a similar master collective bargain-
ing agreement was executed by the Company and the U. A. W.-
C. I. 0., to remain in effect until May 15, 1940.
On or about January 20, 1939, prior to the execution of a supple-
mentary contract between the Company and Local 433 for the Sagi-
naw plant, a division occurred within the U. A. W.-C. I. 0., and the
U. A. W.-A. F. of L. was formed. Local 433 elected delegates to
attend the convention of the U. A. W.-A. F. of L., thereafter paid
per capita dues to it, and functioned as a Local of the U. A. W.-
A; F. of L.
Both the U. A. W.-C. I. 0., and the U. A. W.-A. F. of L., claimed
ownership of the 1939-1940 master agreement with the Company.
On February 2, 1939, pursuant to the master agreement, Local 433 and
the Company entered into a supplementary agreement for the Sagi-
naw plant coterminus with the master agreement. In July 1939 the
parties added a provision to the supplementary agreement by, which
the Company agreed to discipline any employee for violation of the
master agreement or the supplementary agreement upon complaint of
Local 433. The U. A. W.-C. I. O. and the U. A. W.-A. F. of L. stip
ulated at the hearing and the Company has operated on the under-
standing that the intent and effect of this provision was to require all
employees to pay dues to Local 433.
In April 1940, the Company entered into negotiations with the
U. A. W.-A. F. of L. for a master agreeement covering the plants of
the Company in which the U. A. W.-A. F. of L. represented a major-
56 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ity of the employees, and on May 2, 1940, entered into negotiations
'with representatives of the U. A. W.-C. I. O. for the plants in which
the U. A. W.-C. I. O. represented a majority of the employees. The
employees of the Saginaw plant were represented in the negotiations
between the Company and the U. A. W.-A. F. of L., by officers of
Local 433, but were not represented in the negotiations between the
Company and the U. A. W.-C. I. O. The U. A. W.-C. I. O. contends,
nevertheless, and the Company denies, that during the negotiations
the U. A. W.-C. I. O. informed the Company that it claimed to rep-
resent a majority of the employees in the Saginaw plant. Upon the
entire record, we are not convinced that the U. A. W.-C. I. O. in-
formed the Company at this time that it claimed to be majority rep-
resentative in the Saginaw plant. On April 24, 1940, the U. A. W.-
A. F. of L. and the Company executed a master collective bargaining
agreement to become effective May 16, 1940, covering three plants of
the Company including the Saginaw plant. On May 23, 1940, the
U. A. W.-C. I. O. and the Company executed a master collective bar-
gaining agreement, covering, four other plants of the Company.
Both contracts provided, as in previous years, that they should be-
come effective for each of the Company's plants covered by the re-
spective contracts upon the execution of supplementary agreements
for such plants. Both agreements contained a provision respecting
possible changes of affiliation within the plants of the Company.
The provision in the contract between the Company and the U. A. W,
A. F. of L. is as follows : - I
In the event a Local Union in any other of the company's
plants than those covered by this agreement legally elect to form
themselves into' a Local Union of the International Union,
United Automobile Workers of America affiliated with the
American Federation of Labor, and a satisfactory supplemental
agreement is arrived at by and between them and their plant
management, they will automatically become a party to this
agreement, if, and when, said supplemental agreement is prop-
erly signed by the plant management and the Local Union so
established.'
On May 10, 1940, the bargaining committee of Local 433, acting-
pursuant to a resolution of Local 433 instructing them to renew the
old supplementary agreement,2 and the Company "and Local 433
executed a supplementary agreement covering the Saginaw plant of
the Company pursuant to the provisions of the master agreement,
11
1 The provision in the U. A. W.-C. I. O. master agreement is substantially similar except
that it provides "in the event the employees of any company plant . .
.
3 There is a conflict in testimony as to whether the resolution authorized the committee
to renew the agreement for a full term or only for 90 days.
EATON MANUFACTURING COMPANY 57,
between the U. A. W.-A. F. of L. and the Company. The supple-
mentary agreement contained the same terms as those in effect during
the previous year and provided that it should become effective May
10, 1940, and continue in effect until May 15, 1942, the date upon
which the master agreement between the Company and the U. A. W.-
A. F. of L. also is to expire.
Prior to and after the execution of this supplementary agreement,
some of the members of Local 433 attempted to have Local 433 re-
affiliate with the U. A. W.-C. I. O. They were not successful in
obtaining a vote within the Local on the question of affiliation. In
the latter part of August they informed Linwood Smith, the Regional
Director of the U. A. W.-C. I. 0., that the officers of Local 433 would
not allow such a vote, and he thereupon, on September 12, 1940, sent
a letter to the Company requesting recognition of the U. A. W.-
C. I. O. as exclusive bargaining agency for the employees of the
Saginaw plant and informed the Company that the U. A. W.-C. I. O.
represented a majority of such employees.3 On September 17, 1940,
representatives of Local 433 for the first time notified the membership
that the supplementary contract of May 10•had been signed, by post-
ing a' notice on the bulletin board. On or, about September 23 the
Company informed the. U. A. W.-C. I. O. that it could not grant
such organization recognition in.view of its• contract with the U. A.
W.-A. F. of L. and the supplementary agreement with Local 433. On
and after September 30, 1940, some of the members of Local 433
applied for a charter from the U. A. W.-C. I. O. and repudiated their
membership in Local 433, U. A. W.-A. F. of L,
The U. A. W.-C. I. O. contends, in substance,, that the master
agreement between the Company and the U. A. W.-A. F. of L. and
the supplementary agreement signed on- May 10, 1940, do not con-
stitute a bar to an investigation of representatives because (1) the
supplementary agreement is invalid since it was not authorized or
ratified by the membership in accordance with the requirement of the
bylaws of the U. A. W.-A. F. of L.; (2) the supplementary agreement
was executed by the Company after it had been advised that the
U. A. W.-C. I. O. also claimed to represent a majority of the em-
ployees in the Saginaw plant; and (3) the supplementary contract
of May 10, 1940, does not provide for exclusive recognition of the,
U. A. W.-A. F. of L. With respect to the first contention, it is clear
that, at the time the supplementary agreement was executed, the bar-
gaining committee, represented Local 433, which was in turn the un-
disputed representative of a majority of the employees in an appro-
priate unit. It is not within the province of the Board to inquire
8 Representatives of the U. A. w: C. I. O. had not previously requested recognition or
certification because they had been attempting to convert the entire local as a group.
58 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
whether the bargaining committee observed the bylaws of Local 433.
That is an internal union matter which is immaterial in a proceed-
ing under Section 9 of the Act. With respect to the second conten-
tion we have found above that the U. A. W.-C. I. O. had not advised
the Company of its claim to represent a majority of the employees in
the, Saginaw plant prior to the execution of the May 10,1940, supple-
mentary agreement. With respect to the third contention, upon the
entire record, it is clear that the parties construed the contracts so as
to require all employees to pay dues to Local 433 and give Local 433
recognition as exclusive representative of the Saginaw employees.
The U. A. W.-C. I. O. also contended at the hearing that an elec-
tion should be directed because of the clauses in the master agree-
ments, set out above, respecting changes in affiliation. Whatever
their precise meaning may be, we are satisfied that these clauses do
not contemplate that the Board should break in on the Saginaw con-
tract merely because the U. A. W.-C. I. O. claims to have won over
a majority of the employees.
We conclude, therefore, that in view of the existing contracts
between the Company and the U. A. W.-A. F. of L. no question now
exists concerning the representation of the employees of the Company
in its Saginaw plant.4
On the basis of the above findings of fact and upon the entire
record in the case, the Board makes the following:
CONCLUSION OF LAW
No question concerning the representation of employees of Eaton
Manufacturing Company, in a unit appropriate for purposes of col-
lective bargaining has arisen, within the meaning of Section 9 (c)
of the National Labor Relations Act.
ORDER
Upon the basis of the foregoing findings of fact and conclusion of
law, the National Labor Relations Board hereby orders that the peti-
tion for investigation and certification of representatives of em-
ployees of the Eaton Manufacturing Company filed by International
Union, United Automobile Workers of America, affiliated with the
Congress of Industrial Organizations be and it hereby is dismissed.
MR. EDWIN S. SMITH, dissenting:
The agreement entered into between Local 433 and the Company
covering the Saginaw plant in February 1939 was executed at a
time when Local 433 was the undisputed majority representative of
4 Matter of The National Sugar Refining Co., etc. and Local 1476, etc., 10 N. L. R. B. 1410:
EATON MANUFACTURING COMPANY 59
the employees at, Saginaw. This was almost 2 years ago. The fact
that there is now a contract with Local 433, incorporating the same
terms made while it still had a majority and running to May 1942,
should not be a bar to a new election.
The Regional Director's statement introduced in evidence shows
that the U. A. W.-C. I. 0. has obtained approximately 517 -authori-
zation cards from among the approximately 1130 employees in the
appropriate unit. There is thus an ample showing that a question
concerning representation exists. In view of the fact that more than
a year has elapsed since Local 433 was first recognized as majority
representative and in view of the substantial showing of a change of
sentiment among the employees concerning their bargaining repre-
sentative, I would sustain the petition of the U. A. W.-C. I. 0. and
direct an election.5
6 See my dissenting opinion in the National Sugar case ibid.