General Industries Co.

National Labor Relations Board - Board Decisions

Mar 5, 1940

21 N.L.R.B. 131 (N.L.R.B. 1940)

In the Matter of GENERAL INDUSTRIES COMPANY and MECHANICS
EDUCATIONAL SOCIETY OF AMERICA, LOCAL No. 18, (UNAFFILIATED)
Case No. R-1696-Decided March 5, 1940
Phonogi aphs , Electric Motors, Record Change s, Fishing Reels, Synthetic Resin
Pioduct .s Manufactu ' ing Industry-Investigatton of Representatives : controversy
concerning representation of employees : Company refuses to recognize either
of rival unions until certified by the Board--Units Appropriate for Collective
Bargaining: stipulation among unions, followed by Board, places determination
of appropriate unit or units upon the result of elections among three groups of
employees-Representation: stipulation among parties to resolve the question
by elections-L'tections Ordered: separate elections among ( 1) powerhouse em-
ployees. ( 2) compression moulders , including job -setters and inspectors , but ex-
cluding clerical and supervisory employees-both foremen and assistant foremen
being classed as supervisory ; (3) alrfactory employees , including job-setters and
inspectors , but excluding toolroom and powerhouse employees , plastic compression
moulders , and clerical and supervisory employees-both foremen and assistant
foremen being classed as supervisory.
Mr. Harry L. Lodish, for the Board.
Mr. John S. Bellamy and Mr. Glen O. Smith, of Cleveland, Ohio, for
the Company.
211''. Karl E Pauli, of Cleveland, Ohio, Mr. Robert J. Smith and
Mr. Mea Gerber, of Elyria, Ohio, for M. E. S. A.
Mr. E. Wayne Patterson, of Cleveland, Ohio, for the Federal.
Mr. Roy E. Seitz, of Cleveland, Ohio, for the Firemen.
Mrs. Augusta Spaulding, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTIONS
- STATEMENT OF THE CASE
On December 1, 1939, Mechanics Educational Society of America,
Local No. 18,1 herein called the M. E. S. A., filed with the Regional
Director for the Eighth Region (Cleveland, Ohio) a petition alleging
that a question affecting commerce had 'arisen concerning the repre-
sentation of employees of General Industries Company, Elyria, Ohio,
herein called the Company, and requesting an investigation and cer-
tification bf representatives pursuant to Section 9 (c) of the National
1 "Local No 18" was added by amendment at the hearing to the name of petitioning
union.
21 N. L R. B., No. 21.
131
132 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Labor Relations Act, 49 Stat. 449, herein called the Act. On January
19, 1940, 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 Regulations-Series 2,
ordered an investigation and authorized the Regional Director to con-
duct it and to provide for an appropriate hearing upon due notice-
On January 22, 1940, the Regional Director issued a notice of hearing,
copies of which were duly served upon the Company, the M. E. S. A.,
and Federal Labor Union, A. F. of L., No. 20932, herein called the
Federal, a labor organization claiming to represent employees directly
affected by the investigation. Service of notice of hearing was also
made upon International Brotherhood of Firemen and Oilers and upon
Metal Polishers, Buffers, Platers, Spinners and Helpers International
Union. Pursuant to the notice, a hearing was held on January 26
and 29, 1940, at Cleveland, Ohio, before Berdon M. Bell, the Trial
Examiner duly designated by the Board. The Board and the Coin-
pany were represented by counsel; the M. E. S. A. was represented by
its officials. International Brotherhood of Firemen and Oilers, Local
No. 198, herein called the Firemen, was permitted to intervene and was
represented by its vice president. Metal Polishers, Buffers, Platers,
Spinners and Helpers International Union did not appear and took no
part in the proceedings. All parties, including the Firemen, partici-
pated 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, objections to the
admission of evidence, and the form of questions. The Board has
reviewed the rulings of the Trial Examiner and finds that no preju-
dicial errors were committed. The rulings are hereby affirmed. The
M. E. S. A. filed a brief which the Board has considered. On February
21, 1940, the Federal filed with the Board a motion to reopen the record.
Subsequently, there was filed with the Board a stipulation dated Feb-
ruary 21, 1940, and signed by representatives of the Federation and
the M. E. S. A., and counsel for the Board. In the stipulation the
Federation withdrew its previous motion to reopen the record.2
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
1. THE BUSINESS OF THE COMPANY
General Industries Company,3 an Ohio corporation, is both an
operating company and a holding company. It operates a plant at
2 The other terms of the stipulation are hereinafter set forth and discussed.
8 See Matter of General Industries Company, a Corporation and Hobart Flenner, Arthur
Karbknecht, IV,tl,am Cox, and John Alberts, 1 N. L. R . B. 678.
GENERAL INDUSTRIES COMPANY 133
Elyria, Ohio, for the manufacture, sale, and distribution of phono-
graphs and electric motors, record changers, fishing reels, bakelite
compounds, and synthetic resin products. It employs about 900
persons. It owns the entire stock of the General Phonograph Manu-
facturing Company, Putnam, Connecticut, a company which manu-
factures phonograph needles, textile pins, and ice picks. In turn,
993/8 per cent of the Company's common stock is owned by a third
company, the General Phonograph Company, Putnam, Connect ;cut.
The Company's total purchases during 1939 amounted to about
$1,000,000, over 55 per cent of which came from points outside Ohio.
During the same period the Company's sales totaled approximately
$2,000,000, of which 75 per cent was to customers outside Ohio.
The Company admits that it is engaged in commerce within the
meaning of the Act.
II. THE ORGANIZATIONS INVOLVED
Mechanics Educational Society of America, Local No. 18, is an
unaffiliated labor organization. It admits to membership all employees
at the Company's plant, excluding clerical, supervisory, and toolroom
employees.
Federal Labor Union, A. F. of L., No. 20932, is a labor organization
affiliated with the American Federation of Labor, admitting to mem-
bership employees of the Company.
International Brotherhood of Firemen and Oilers, Local 198, is a
labor organization affiliated with the American Federation of Labor.
It admits to membership powerhouse employees at the Company's
plant.
III. THE QUESTION CONCERNING REPRESENTATION
In July 1937 the American Federation of Labor granted a charter
to the Federal to organize employees at the Company's plant. In July
1938 Local No. 15 of the Mechanics Educational Society of America
was recognized by the Company as the exclusive bargaining agency
for the toolroom employees. In July 1939 Local No. 18, hereinafter
referred to as the M. E. S. A., was chartered, and it now seeks recog-
nition by the Company as sole bargaining agent for all employees,
excluding toolroom, supervisory, and clerical employees, but including
inspectors and jobsetters. The Federal desires recognition by the
Company as exclusive bargaining representative for all production
moulders in Department 13, excluding clerical and supervisory em-
ployees, but including inspectors and jobsetters. Both the Federal
and the M. E. S. A. have conferred with Company representatives
regarding grievances and other matters of interest to employees, but
28 03Y 41--vo1 21--10
134 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
the Company refuses to recognize either as an exclusive bargaining
representative until the Board has certified it as such.
We find that a question has arisen concerning the representation of
employees of the Company at the Elyria, Ohio, plant.
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 obstructing commerce
and the free flow of commerce.
V. THE APPROPRIATE UNIT
As stated in Section III above, the Company in July 1938 recog-
nized M. E. S. A., Local 15, as the exclusive bargaining representative
of the toolroom employees. Neither the Company nor any union in
this proceeding desires to include the toolroom employees in the unit
which it contends is appropriate for the purposes of collective bargain-
ing and we shall therefore exclude them.
The Firemen contend that the 20 employees in the powerhouse con-
stitute.an appropriate bargaining: unit. • At the, hearing all parties
stipulated that a separate election should be conducted among the
powerhouse employees to determine whether they desire to be repre-
sented by the Firemen or by the M. E. S. A. for the purposes of col-
lective bargaining. It is not altogether clear from the terms of the
stipulation whether the parties agreed that the powerhouse employees
constituted a separate bargaining unit among whom an election, should
be held solely to determine their bargaining agency, or that the results
of the election .should also determine whether the powerhouse ein-
ployees should constitute a separate bargaining unit as desired by
the Firemen, or be included in a larger bargaining unit as desired by
the M. E. S. A. We think it plain from the general content of the
stipulation, however, that the parties agreed to the latter, that is, that
the desires of the powerhouse employees should be the determining
factor in fixing the appropriate unit.
Both the Federal and the M. E. S. A. agree that all clerical and super-
visory employees, including foremen and assistant foremen, should be
excluded from any bargaining unit or units, and that inspectors and
jobsetters'should be included. The Company does not object to the
exclusion or inclusion of any of the above groups, except in the case
of jobsetters, whose functions it contends are sufficiently supervisory to
warrant their exclusion. In accordance with our usual practice of
GENERAL INDUSTRIES CODIPANI 135
including in the appropriate bargaining unit minor supervisory em-
ployees at the request of all the labor organizations concerned '4 we
shall include jobsetters as well as inspectors and exclude clerical and
other supervisory employees (including foremen and assistant fore-
men).
The Federal contends that all plastic compression moulders alone
constitute an appropriate bargaining unit. These moulders all work
in one department, number 13. There are about 157 of them. The
Company contends, and, at the hearing, the M. E. S. A. contended,
that all the employees in the plant (with the exclusions hereinbefore
noted) constitute an appropriate bargaining unit.
The work of the plastic compression moulders requires some, though
not extensive, training. Their department is housed in a building
which to a certain extent is separated from the remainder of the plant.
However, transfers between Department 13 and the other departments
are relatively frequent. There is no evidence that, apart from the
Company's plant, plastic compression moulders have ever organized
and bargained collectively as a separate unit. At present, the Fed-
eral's membership is mainly confined to Department 13 and it has
negotiated for the last half year with the Company for the grievances
of its members in this department. When chartered in 1937, however,
the Federal apparently did not confine its membership to Department
13. The M. E. S. A. has organized on a plant-wide basis, except for
the exclusions noted above, and has negotiated, with the Company for
the grievances of its members for the last 6 months. It claims to
have some members among the compression moulders. The Federal
asserts that compression moulding of plastics is a comparatively new
industry, and that the American Federation of Labor intends in the
future to organize a separate craft union for plastic moulders, corre-
sponding to the existing craft unions for wood and metal moulders, but
that meanwhile it is the Federation's policy to organize the plastic
moulders in federal unions. The Company has engaged in plastic
moulding, however, for over 15 years.
As hereinbefore stated, subsequent to the hearing there was filed
with the Board a stipulation signed by counsel for the Board and
representatives for the Federal and the M. E. S. A. This stipulation
provides that the Board may conduct an election among the employees
in Department 13 alone to determine whether they desire to be repre-
sented by the Federal or by the M. E. S. A., and that the results of
this election shall also decide whether the employees shall constitute
, Matte, of Sanger 'Mfg Co and L nited, ^lr Leta ical, Radio, and Machine Wo, hens of
Au e,tea. Local Vo 91-,,'S N L R B 434; Matter of R,chanond Hosiery Mills and Textile
Wotke,s 0) gantzing Committee, 8 N L R. B 1073. Matte, of Shell Petroleum Corp and
Oil Workers International Union, Local No 367, 9 N L It B 831, Matte, of Willys Ozer-
land Motoas, Ino and United Automobile Wor!eis of Ainenca, Local No 12, 9 N L R B
924
136 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
a separate unit, as desired by the Federal, or be included in a larger
unit, as desired by the M. E. S. A. The stipulation also provides that
the Board shall conduct an election among the remaining employees,
excluding the compression moulders, to determine whether they desire
to be represented by the American Federation of Labor or by the
M. E. S. A.
It is thus apparent that all the labor organizations involved have
agreed upon a method for the determination of the appropriate bar-
gaining unit or units. The method agreed upon-the determination
of the unit on the basis of the desires of the employees in dispute-is
one we have frequently used.5 It is not unsuitable under the circum-
stances of this case. We find that the desires of the employees shall
be the determining factor in fixing the appropriate unit or units for
the employees now under discussion.
We find in Section VI below that three elections are necessary to
determine the desires of employees at the Company's plant with regard
to representation for the purposes of collective bargaining. On the
result of these elections will depend the determination of the unit or
units appropriate for the purposes of collective bargaining.
VI. THE DETEP,MIINATION OF REPRESENTATIVES
All the parties stipulated that the question concerning representa-
tion should be resolved by elections. We shall direct elections among
the following groups of employees :
(1) All powerhouse employees at the Company's plant, excluding
supervisory employees (including foremen and assistant foremen), to
determine whether they desire to be represented by the Firemen or
by the M. E. S. A. for the purposes of collective bargaining, or by
neither ;
(2) All employees in Department 13 at the Company's plant, in-
cluding jobsetters and inspectors, but excluding clerical and super-
visory employees (including foremen and assistant foremen), to deter-
mine whether they desire to be represented by the Federal or by the
M. E. S. A. for the purposes of collective bargaining, or by neither;
(3) All factory employees at the Company's plant, including job-
setters and inspectors, but excluding powerhouse and toolroom em-
ployees, plastic compression moulders (Department 13 employees),
and clerical and supervisory employees (including foremen and
assistant foremen), to determine whether they desire to be represented
by the American Federation of Labor or by the M. E. S. A. for the
purposes of collective bargaining, or by neither.
, See cases collected in Fourth Annual Report of the National Labor Relations Board
(1940 ) pages 86-87, footnotes 58 and 59
GENERAL INDUSTRIES COMPANY 137
Upon the basis of the above findings of fact and upon the entire
record in the case, the Board makes the following :
CONCLUSION OF LAW
A question affecting commerce has arisen concerning the representa-
tion of employees of General Industries Company, Elyria, Ohio,
within the meaning of Section 9 (c) and Section 2 (6) and (7) of the
National Labor Relations Act.
DIRECTION OF ELECTIONS
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, as amended, it
is hereby
DIRECTED that, as part of the investigation ordered by the
Board to ascertain representatives for the purposes of collective bar-
gaining with General Industries Company, Elyria, Ohio, elections by
secret ballot shall be conducted as early as possible, but not later than
thirty (30) days from the date of this Direction, under the direction
and supervision of the Regional Director of the Eighth 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
those employees of General Industries Company at its Elyria, Ohio,
plant who fall within the groups described below and who were em-
ployed during the pay-roll period immediately preceding the date of
this Direction, including employees who did not work during such
pay-roll period because they were ill or on vacation or temporarily
laid off, but excluding employees who have since quit or been discharged
for cause :
(a) All employees in the powerhouse, excluding supervisory em-
ployees (including foremen and, assistant foremen), to determine
whether they desire to be represented by International Brotherhood
of Firemen and Oilers, Local No. 198, or by Mechanics Educational
Society of America, Local 18, for the purposes of collective bargain-
ing, or by neither;
(b) All employees in Department 13, including jobsetters and
inspectors, but excluding clerical and supervisory employees (includ-
ing foremen and assistant foremen), to determine whether they desire
to be represented by Federal Labor Union, No. 20932, or by Mechanics
Educational Society of America, Local 18, for the purposes of col-
lective bargaining, or by neither; and
138 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
(c) All factory employees, including jobsetters and inspectors, but
excluding powerhouse and toolroom employees, plastic compression
moulders (Department 13 employees), and clerical and supervisory
employees (including foremen and assistant foremen), to determine
whether they desire to be represented by Mechanics Educational
Society of America, Local 18, or by the American Federation of Labor,
for the purposes of collective bargaining, or by neither.