Goodyear Tire And Rubber Co. of California

National Labor Relations Board - Board Decisions

Aug 27, 1937

3 N.L.R.B. 431 (N.L.R.B. 1937)

In the Matter of GOODYEAR TIRE AND RUBBER COMPANY OF CALI-
FORNIA and UNITED RUBBER WORKERS OF AMERICA, LOCAL 131
Case No. R-230
Rubber Products Industry-Investigation of Representatives : controversy
concerning representation of employees : rival organizations ; substantial doubt
as to majority status; refusal by employer to recognize either rival organiza-
tion as bargaining agency-Unit Appropriate for Collective Bargaining: pro-
duction and maintenance employees ; community of interest ; eligibility for
membership in petitioning union ; production and maintenance employees in
adjacent 'textile feeder mill included in; history of self-organization ; nature
of employment ; specially trained group excluded from-Election Ordered-
Certification of Representatives.
Mr. David Sokol for the Board.
O'Melveny, Tuller, & Myers, by Mr. B. E. Ahlport and Mr. J. L.
Goddard, of Los Angeles, Cal., for the Company.
Mr. George B. Roberts, of Los Angeles, Cal., for United Rubber
Workers of America, Local 131.
Mr. C. F. Cable and Mr. Emanuel Becker, of Los Angeles, Cal.,
for Goodyear Employees Association, Inc.
Mr. Joseph B. Robinson, of counsel to the Board.
DIRECTION OF ELECTION
August 27, 1937
The National Labor Relations Board, having found that a ques-
tion affecting commerce has arisen concerning the representation of
employees of Goodyear Tire and Rubber Company of California,
Los Angeles, California, and that those employees who are engaged
in production and maintenance, including workers at the textile
mill of the said Company, but excluding foremen, squadron men,
and those engaged in supervisory and clerical work, constitute a
unit appropriate for the purposes of collective bargaining, within
the meaning of Section 9 (b) of the National Labor Relations Act,
49 Stat. 449, and acting pursuant to the power vested in the National
Labor Relations Board by Section 9 (c) of said Act, and pursuant to
Article III, Section 8 of National Labor Relations Board Rules and
Regulations-Series 1, as amended, hereby
431
432 NATIONAL LABOR RELATIONS BOARD
DIRECTS that, as part of the investigation ordered by the Board
to ascertain representatives for the purposes of collective bargaining
with Goodyear Tire and Rubber Company of California, an election
by secret ballot shall be conducted within a period of fifteen (15)
days after the date of this Direction of Election, under the direction
and supervision of the Regional Director for the Twenty-first Re-
gion, acting in this matter as the agent of the National Labor
Relations Board, and subject to Article III, Section 9 of said Rules
and Regulations-Series 1, as amended, among those employees
of Goodyear Tire and Rubber Company of California engaged in
production and maintenance, including workers at the textile mill of
the said Company, but excluding foremen, squadron men, and those
engaged in supervisory or clerical work, on the pay roll of the said
Company next preceding June 7, 1937, to determine whether they
desire to be represented by United Rubber Workers of America,
Local 131, or by Goodyear Employees Association, Inc., for the pur-
poses of collective bargaining.
MR. EDWIN S. SMITH took no part in the consideration of the
above Direction of Election.
[SAME TITLE]
DECISION
AND
CERTIFICATION OF REPRESENTATIVES
October 7, 1937
STATEMENT OF THE CASE
On July 22, 1937, United Rubber Workers of America, Local No.
131, herein called the United, filed with the Regional Director for
the Twenty-first Region (Los Angeles, California), a petition alleg-
ing that a question affecting commerce had arisen concerning the
representation of the employees of Goodyear Tire and Rubber Com-
pany of California, Los Angeles, California, herein called the Com-
pany, and requesting an investigation and certification of represent-
atives, pursuant to Section 9 (c) of the National Labor Relations
Act, 49 Stat. 449, herein called the Act. On the same day, 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 1,
DECISIONS AND ORDERS 433
as amended, authorized the Regional Director to conduct an investi-
gation and provide for an appropriate hearing.. Also on the same
day the Regional Director issued a notice of hearing to be held in
Los Angeles, California, on July 28, 1937, copies of which were duly
served upon the Company, the United, and Goodyear Employees
Association, Inc., herein called the Association, a labor organization
named in the petition as claiming to represent some of the Com-
pany's employees.
Pursuant to the notice a hearing was held before Carey McWil-
liams, the Trial Examiner duly designated by the Board. At the
hearing the Board, the Company, the United, and the Association
were represented by counsel and 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 to all
parties.
Pursuant to notice, a hearing was held before the Board on
August 24, 1937, in Washington, D. C., for the purpose of oral argu-
ment. The Company and the United were represented by counsel.
The Board has reviewed the rulings of the Trial Examiner on objec-
tions to the admission of evidence and finds that no prejudicial errors
were committed. The rulings are hereby affirmed.
After examining the record in the case, the Board concluded that
a question affecting commerce had arisen concerning the representa-
tion of the employees of the Company, and on the basis of such
conclusion, and acting pursuant to Section 9 (c) of the Act, and
Article III, Section 8 of the Rules and Regulations-Series 1, as
amended, issued a Direction of Election on August 27, 1937, in
which it was found that the employees of the Company engaged in
production and maintenance, including workers 'in the textile mill
of -the Company, but excluding foremen, squadron men, and those
engaged in supervisory or clerical work, constitute a unit appropriate
for the purposes of collective bargaining. Merely for the purpose of
expediting the election and thus to insure to the employees of the
Company the full benefit of their right to collective bargaining as
early as possible, the Board directed the election without at the same
time issuing a decision' embodying complete findings of fact and
conclusions of law.
I On July 22, 1937, a hearing was held in Matter of Goodyear Tire and Robber Corn pa oh,
of California, Inc. and United Rubber Workers of America , Local No. 131, Case No.
XXI-R-169 In that case a petition was filed by the United on June 7, 1937, and the
Board ordered an investigation and hearing on June 24 , 1937. Notices of the hearing
were served on July 8, 1937. It appeared at the hearing that the company named in the
petition was a sales corporation owned by the Company here involved, and that it did
not have any of the employees described in the petition The Board 's motion to amend
the petition to correct the error having been denied , the petition was dismissed , and the
present proceeding was commenced
434 NATIONAL LABOR RELATIONS BOARD
Pursuant to the Board's Direction of Election, an election by
secret ballot was conducted on September 10, 193'f, by the Regional
Director for the Twenty-first Region among the employees of the
Company within the bargaining unit found appropriate by the
Board. Full opportunity was accorded to all parties to this investi-
gation to participate in the conduct of this secret ballot and to make
challenges. On September 14, 1937, the Regional Director issued
and duly served upon the parties to this proceeding his Intermediate
Report on the secret ballot. No exceptions to the Intermediate
Report have been filed by any of the parties.
As to the results of the secret ballot, the Regional Director re-
ported the following :
Total number eligible________________________________________ 1,835
Total number of ballots cast__________________________________ 1,473
Total number of blank ballots________________________________ 2
Total number of void ballots_________________________________ 1
Total number of challenged ballots____________________________ 13
Total number of ballots cast for the United___________________ 801
Total number of ballots cast for the Association_______________ 656
Upon the entire record in the case the Board makes the following:
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY
The Goodyear Tire and Rubber Company of California was in-
corporated in 1920 and is engaged in the production of tires and
tubes, and of patches and other accessory items made of rubber.
Tires and tubes each constitute about one-third of the total product.
Its sole place of business is located at its plant in Los Angeles, Cali-
fornia. It owns all of the stock of Goodyear Tire and Rubber Com-
pany of California, Inc., a sales corporation. The Company is a
part of the system of corporations controlled by the Goodyear Tire
and Rubber Company, located in Akron, Ohio, more than 90 per
cent of its stock being owned by the latter corporation.2 The pur-
chasing of a substantial part of the raw material used by the Com-
pany, the advertising of its product, some at least of its marketing,
and the establishing of the broad lines of its policy are all done by
the parent company.
The chief item of raw material used by the Company is rubber, all
of which comes from without the State of California. All of its
2 Board's Exhibits Nos. 3 and 4 are copies of the registration statement of the Akron
Company filed with the Securities and Exchange Commission in 1935, File No. 1-1927,
and of the subsequent Annual Reports . They show that during 1935 and 1936, the
amount of the Company's stock owned by the parent corporation increased from 90.15 to
97.5 per cent. They also show that the parent corporation owns and controls subsidiaries
operating throughout the world.
DECISIONS AND ORDERS 435
cotton, another important item, is also received from outside the
State. Fabric and pigments, the other two items of importance, are
procured both within and without California.8 The total value of
the products shipped by the Company between January 1, 1936 and
June 30, 1937, was $26,632,766.53, of which $8,821,068.71 was the value
of shipments made to points within California; and $17,811,697.82,
the value of shipments to points outside of California.4
H. THE ORGANIZATIONS INVOLVED
A. The United
United Rubber Workers of America is a labor organization affil-
iated with the Committee for Industrial Organization. Local No.
131 thereof admits to membership all of the employees of the Com-
pany except clerical and supervisory employees, expressly excluding
squadron men.
B. The Association
Goodyear Employees Association, Inc., is a labor organization,
admitting to membership employees of the Company, including the
squadron men.
III. THE QUESTION CONCERNING REPRESENTATION
At some time in 1934, there was established at the Company's plant
the Goodyear Joint Conference, herein called the Conference. It
was disbanded after the middle of April 1937. There is little in the
record to show what functions it performed, but apparently it was
maintained chiefly as a point of contact between the management
and the employees. The representatives of the latter were elected by
secret ballot and met with representatives of the management, under
the chairmanship of W. H. Fleming, the Company's vice president
and general superintendent. The expenses of the Conference were
paid by the Company. Aside from whatever activities may have
been carried on through the Conference, there has been no collective
bargaining by the Company with any of its employees.
a Board's Exhibit No. 9, • a tabulation supplied by the Company, shows that from
January 1 , 1936 to June 30 , 1937 , the chief raw materials used by the Company were as
follows:
Material Value Origin
Rubber---------------------------------------------- $9,278,768 66 Outside of California.
Fabric----------------------------------------------- 4,898,253.92 Within and outside California.
Cotton ---------------------------------------------- 1,826,655 02 Outside of California.
Pigments-------------------------------------------- 1, 989, 218.90 Within and outside California.
Bead Wire ------------------------------------------ 406, 403.55 Within California.
4 Board's Exhibit No. 9, mentioned in footnote 2. This exhibit also shows that most
of the Company 's shipments were made by rail , but that a substantial portion was made
by truck, and a small portion by boat.
436 NATIONAL LABOR RELATIONS BOARD
After the disbanding of the Conference, organization drives were
commenced by the United and the Association. For the three
months prior to the hearing in this case, both. organizations were
active. Leaflets we're passed out in front of the plant. There were
meetings of the United and its buttons were distributed and worn
around the plant.
On about June 1,, 1937, representatives of the United met with
W. H. Fleming, and matters of policy were discussed. About a
week later the textile mill operated by the Company was shut down,
for reasons which do not clearly, appear in the record. The Com-
pany has not recognized any labor organization for the purposes, of
collective bargaining. It is conceded however that the question of
union affiliation has been discussed a great deal around the plant, and
that the total of the membership claims of the two labor organiza-
tions is greater than the total pay roll of the Company. It was
stipulated by all parties to the proceeding that there is need for
an election at the Company's plant.
IV. THE APPROPRIATE UNIT
It was stipulated by all parties to the proceeding that the appropri-
ate unit for the purposes of collective bargaining should be that
set out in the petition, except that the inclusion of squadron men
and the employees at the textile mill was left to the determination
of the Board. The description in the petition included "production
men and women including textile men and women, and maintenance
men excluding superintendents, general foremen, foremen, super-
visors, watchmen, policemen, doctors and nurses, sales force, general
office employees, `squadron' men and all who have the right to
recommend hiring and firing ...".
A. The squadron men
The squadron system has been adopted by the Goodyear plants
generally. There is evidence in the record that the system as prac-
ticed at the California Goodyear plant differs somewhat from that
in operation at other Goodyear plants. We therefore direct our at-
tention to the evidence of its operation at Los Angeles.
The, purpose of the squadron is "to train men, and ... to balance
production." Applicants to the squadron come from the plant itself
and from schools and colleges where the Goodyear system is widely
known. About 50 per cent of those in the squadron at present are
college men. Attempt is made to get men with training in types of
work which are important to the Company, such as chemists, engi-
neers, mechanics, or salesmen. The men are carefully recruited and
must pass a very severe physical examination.
DECISIONS AND ORDERS 437
Before being accepted each man goes through a series of inter-
views with various executives, described by one witness as "get
together meetings." He then goes on probation for 60 days, after
which, if' accepted, he is put on the squadron. If he comes from
the plant, he may take a reduction in pay at the start. The course
is of three years' duration. During the first two years, the squadron
men are shifted about from department to department, learning all
of the aspects of rubber production. Although they are not segre-
gated in' any one part of the plant, they are under the supervision
of a single foreman, to whom they make reports on their work, and
who in turn makes reports on -their progress to the management.
They have classes by themselves which are often addressed by execu-
tives and foremen.' 'In general, they are watched very carefully, and
their contact with the management is very intimate.
After the two-year period, the squadron man spends a third year
on a single job which is supposed to be of his own choosing, though
it may not always be so. At the end of the third year he is consid-
ered'a "master worker" and receives a diploma as such. He receives
the same vacation to which a non-squadron man with five years
seniority ' is entitled. But his future progress depends on his own
merit.
One' of the purposes of the squadron is to "balance production".
As a master worker, the squadron man is considered capable of taking
on any job, if the need arises. He is used, therefore, to fill in, in
case of emergency caused by break-down or temporary absence.
While there are no strict rules requiring the retention of squadron
men when lay-offs occur, the Company attempts to keep them on "as
long as possible" because of their training. There are at the present
time between 40 and 44 squadron men at the Los Angeles plant. The
number never exceeds 65.
The United contends that the' squadron men should' be excluded
from the appropriate unit for the purposes of collective bargaining.
The Association contends the opposite. There can be 'little doubt
that the squadron men are a select group. While it is true that
there is nothing essentially supervisory about their position, they
are under the special guidance and care of, and have an intimate
relation with, the management, and cannot be considered' as having
the same problems as the non-squadron, production workers. It is
clear that they do not belong in the same unit with the latter for the
purposes of collective bargaining.
B.` The textile workers
The Association contends that the Company's textile mill is so
separate and distinct as to require a separate bargaining unit for the
men there employed. The United desires to include these employees
49446-38-vol. 11r--29
438 NATIONAL LABOR RELATIONS BOARD
in a single unit with the workers in the rubber mill. It appears that
the two mills are within the same enclosure. Employees at both
plants enter at the same gate. The product of the textile mill is
suitable only for the manufacture of tires, and most of it goes di-
rectly into use in the rubber mill, the balance being shipped east
to other Goodyear plants. The rubber mill also uses a substantial
amount of textiles not produced in the Company's textile mill.
There are some differences in the nature of the work at the two
plants. There is a higher percentage of women employees at the
textile mill than at the rubber mill, and the textile workers, as dis-
tinguished from the rubber workers, are largely machine tenders.
There is no reason to believe, however, that these differences raise
any problems in collective bargaining peculiar to one mill or the
other. All of the employees are production workers and have only
the usual problems raised in mass production work. As far as the
record shows, none of them have any peculiar skill.
During the period in which the Conference was maintained there
were separate Joint Conferences for the textile and rubber mills.
However, there was never any collective bargaining concerning gen-
eral working conditions during this period, and consequently this
set-up cannot be considered as throwing any light on the present
controversy. During May 1937'a group of the textile workers ex-
pressed to the United their desire to be included in the organization
drive of that Union. A textile worker was at one time an officer
of the United. Thus it is clear that some, at least, of the textile
workers felt that their problems were the same as those of the rubber
workers. There has never been any attempt by any textile men to
secure separate representation.
At the present time the textile mill is shut down. Apparently
the Company has no formal "way of notifying old employees of a
reopening of the mill, but word will be passed around generally of
such a reopening when it occurs. The names of the employees who
have worked in the mill are kept in the files of the Company, and
when the men return to work they will retain their seniority rights.
Therefore, they remain employees of the Company at the present
time.
We find that the textile and rubber workers together constitute
a single unit appropriate for the purposes of collective bargaining.
C. Conclusions as to the appropriate unit
In order to insure to the Company's employees the full benefit of
their right to self-organization and collective bargaining, and other-
wise to effectuate the purposes of the Act, we find that those em-
ployees of the Company who are engaged in production and main-
tenance, including workers at the textile mill of the said Company,
DECISIONS AND ORDERS 439
but excluding foremen, squadron men, and those engaged in super-
visory and clerical work, constitute a unit appropriate for the pur-
poses of collective bargaining in respect to rates of pay, wages,
hours, and other conditions of employment.
V. THE EFFECT OF THE QUESTION OF REPRESENTATION ON COMMERCE
We find that the question of representation which has arisen,
occurring in connection with the operations of the Company de-
scribed in Section I above, has a close, intimate, and substantial rela-
tion 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.
VI. CONDUCT OF THE ELECTIONS
All parties to this proceeding indicated their consent to the holding
of an election by secret ballot. The shut-down of the textile mill on
about June 7, 1937, requires that the situation prior to that date be
decisive of the issues in this case. On the basis of these findings, the
Board, in its Direction of Election issued on August 27, 1937, based
eligibility to vote in the election on the pay roll of the Company
next preceding June 7, 1937.
CONCLUSIONS OF LAW
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. Questions affecting commerce have arisen concerning the repre-
sentation of employees of Goodyear Tire and Rubber Company of
California, within the meaning of Section 9 (c) and Section 2, sub-
divisions (6) and (7) 'of the National Labor Relations Act.
2. All of the employees of Goodyear Tire and Rubber Company
of California engaged in production and maintenance, including
workers at the textile mill of the said Company, but excluding
foremen, squadron men, and those engaged in supervisory and clerical
work, constitute a unit appropriate for the purposes of collective
bargaining, within the meaning of Section 9 (b) of the National
Labor Relations Act.
CERTIFICATION OF REPRESENTATIVES
By virtue of and pursuant to the power vested in the National
Labor Relations Board by Section 9 (c) of the National Labor
Relations Act, 49 Stat. 449, and pursuant to Article III, Section 8
of National Labor Relations Board Rules and Regulations-Series 1,
as amended,
440 NATIONAL LABOR RELATIONS BOARD
IT IS HEREBY CERTIFIED that United Rubber Workers of America,
Local No. 131, has been designated and selected by a majority of the
employees of Goodyear. Tire and Rubber Company of California,
engaged in production and maintenance, including workers at the
-textile mill of the said Company, but excluding foremen, squadron
men, and those engaged in supervisory and clerical work, as their
representative for the purposes of collective bargaining, and that,
pursuant to the provisions of Section 9 (a) of the Act, United
Rubber Workers of America, Local No. 131, is the exclusive repre-
sentative of all such employees for the purposes of collective bar-
gaining in respect to rates of pay, wages, hours of employment, and
other conditions of employment.