Hat Corp. of America

National Labor Relations Board - Board Decisions

Oct 27, 1937

3 N.L.R.B. 931 (N.L.R.B. 1937)

In the Matter of HAT CORPORATION OF AMERICA and UNITED HATTERS,
CAP AND MILLINERY WORKERS INTERNATIONAL UNION
Case No. B-268.-Decided October 07, 1937
Hat Industry---Investigation of Representatives : controversy concerning
representation of employees : refusal by employer to recognize petitioning
union as exclusive representative-Unit Appropriate for Collective Bargain-
ing: production employees in trimming and finishing department ; eligibility
for membership in petitioning union ; no controversy as to-Representatives:
proof of choice : comparison of pay roll and union application cards designating
union as bargaining agency-Certification of Representatives : upon proof of
majority representation.
Mr. David A. Moscovitz for the Board.
Gleason, MCLanahan, Merritt and Ingraham, by Mr. Henry Clif-
ton, Jr., of New York City, for the Company.
Mr. David I. Ashe, of New York City, for the Union.
Mr. S. G. Lippman, of counsel to the Board.
DECISION
AND
CERTIFICATION OF REPRESENTATIVES
STATEMENT OF TIIE CASE
On August 18, 1937, United Hatters, Cap and Millinery Workers
International Union, herein called the Union, filed a petition with
the Regional Director for the Second Region (New York City)
alleging that a question affecting commerce had arisen concerning
the representation of the "front shop" employees of the East Nor-
walk, Connecticut, plant of Hat Corporation of America,-' herein
called the Company, and requesting the National Labor Relations
Board, herein called the Board, to conduct an investigation pursuant
to Section 9 (c) of the National Labor Relations Act, 49 Stat. 449,
herein called the Act. On September 4, 1937, 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,
as amended, authorized the Regional Director to conduct an investi-
1 Erroneously referred to in the order of the Board directing an investigation as Hod-
shon and Berg . On the basis of an agreement of the parties at the hearing , the name of
the Company appearing in the Board 's order has been changed to Hat Corporation of
America.
931
932 NATIONAL LABOR RELATIONS BOARD
gation and to provide for an appropriate hearing. On September
7, 1937, the Regional Director issued a notice of hearing to be held
at New York City, on September 8, 1937, copies of which were served
upon the Company and upon the Union.
Pursuant to notice, a hearing was held at New York City on
September 8, 1937, before H. R. Korey, the Trial Examiner duly
designated by the Board. The Board, the Company, and the Union
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 all
parties. No motions or exceptions to rulings of the Trial Examiner
were made during the course of the hearing.
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
I. THE COMPANY AND ITS BUSINESS
Hat Corporation of America is a Delaware corporation, organized
in 1932 for the purpose of manufacturing, selling, and distributing
hats for men and women, and has its principal office and place of
business in East Norwalk, Connecticut. The Company, through its
wholly-owned subsidiaries, operates retail stores in New York City
in which are sold hats manufactured by the Company and other
wearing apparel for men and women. The hats manufactured by
the Company are sold under the names, "Dobbs", "Cavanagh",
"Knox", "Dunlap", "Byron", "Berg", "Knapp Felt", and others. In
addition to the distribution through the retail stores operated by the
afore-mentioned subsidiaries, the, Company is engaged through the
medium of wholly-owned subsidiaries in selling hats to wholesalers
and retailers throughout the country.
The Company operates two plants located in East Norwalk, Con-
necticut, designated as plants No. 1 and No. 2, and has a branch
office and a factory in New York City. The East Norwalk plant
No. 2 employs 900 production employees, of whom 325 work in its
"front shop", or Hodshon-Berg Department, with which depart-
ment we are particularly concerned here. The plant as a whole is
divided into two parts, the "back shop" where material is fabricated
into a rough hat body, and the "front shop" where the hat is
trimmed and finished. The "front shop" is divided into the follow-
ing four major departments, devoted to the stages of manufacture
indicated :
(a) The pouncing department-removing the surplus hair from
the surface of the hat.
(b) The finishing department-further smoothing the surface of
the hat; bringing out its color; giving it shape.
DECISIONS AND ORDERS 933
(c) The trimming department-attaching the band and lining to
the hat.
(d) The flanging department-giving shape to the brim of the hat.
The Company uses the following raw materials in the manufac-
ture of the fur felt hats which are processed in the "front shop" of
plant No. 2: Fur skins from America, England, France, Russia, and
Poland; shellac from India; sweat leather from Pennsylvania, New
York, and Massachusetts; silk and cotton ribbons from Connecticut
and New Jersey; silk and rayon materials from Pennsylvania; silk
threads from Pennsylvania; cotton threads from Connecticut; dyes
from New York and New Jersey; chip-board, paper, and cartons
from Connecticut, New York, and New Jersey, and miscellaneous
material from Connecticut and New York.
It was estimated by Nathan T. Tibbals, vice president and works
manager of the Company, that at least 90 per cent of the above mate-
rials come from outside the State of Connecticut, transported by
truck, railroad freight and express, and that the cost of such raw
materials amounted to approximately $150,000 a year. He testified
further that about 90 per cent of the finished products passing
through the "front shop" amounting to approximately $1,000,000 a
year, are distributed to States other than the State of Connecticut,
by rail, truck, and ship.
II. THE ORGANIZATION INVOLVED
United Hatters, Cap and Millinery Workers International Union
is a labor organization admitting into membership all employees of
the Company engaged in "front shop" operation. The Union divides
its members into two locals, Local No. 32 admitting to membership
male employees, and Local No. 33 admitting to membership female
employees. The two locals are represented by a joint bargaining
committee and the same business agent. For the purposes of this
proceeding they will be treated as a single organization.
III. THE APPROPRIATE UNIT
The Union maintains that all the production employees of the
"front shop" of plant No. 2 eligible for membership therein consti-
tute a unit appropriate for collective bargaining. The Company
raises no objection to the bargaining unit claimed by the Union and
has indicated its willingness to bargain collectively with the Union
as the sole bargaining agent if the Board determines the Union has
been designated as representative by a majority of the employees in
the unit.
Therefore, in order to insure to employees of the Company the full
benefit of their rights to self-organization and collective bargaining,
49446-38-vol m-60
934 NATIONAL LABOR RELATIONS BOARD
and otherwise to effectuate the policies of the Act, we find that the
production employees of the "front shop" of the Company's plant
No. 2 constitute a unit appropriate for the purposes of collective
bargaining in respect to rates of pay, wages, hours of employment,
and other conditions of employment.
IV. THE QIIESTION CONCERNING REPRESENTATION
About March 1937, the Union began a campaign for membership
among the employees of the "front shop", and at the time of the
filing of the petition, the Union claimed to represent a substantial
number of employees of the "front shop". Commencing July 21,
1937, and continuing until August 20, 1937, there were conferences
between the Union and the Company in which, in substance, the
Union requested recognition as the bargaining agent for the em-
ployees of the "front shop". The Company refused to grant any
recognition until the Board should certify the Union as the repre-
sentative of the Company's employees in that department. The
Union now claims to represent a vast majority of the Company's em-
ployees in the appropriate unit. There is no other labor organiza-
tion claiming membership among the Company's employees. The
present refusal of the Company to recognize the Union tends to
create resentment and dissatisfaction among the employees and mem-
bers of the Union.
We find that a question has arisen concerning the representation
of the employees of the Company in the appropriate unit.
V. THE EFFECT OF THE QUESTION OF REPRESENTATION ON COMMERCE
We find that the question of representation which has thus arisen,
in connection with the operations of the Company described in Sec-
tion I above, has a close, intimate, and substantial relation to trade,
traffic, and commerce among the several States, and tends to lead to
disputes burdening and obstructing commerce and the free flow of
commerce.
VI. THE EXCLUSIVE BARGAINING AGENCY
It was stipulated by the parties that the pay roll of August 20,
1937, might be used as the basis of determining the question of rep-
resentation. Subsequently 301 union application cards were admit-
ted into evidence subject to a check with the pay roll. The appli-
cation cards contained statements authorizing the Union to represent
the undersigned for the purposes of collective bargaining as to
wages, hours of employment, and other working conditions. Coun-
sel for all of the parties herein, after checking the application cards
with the pay roll, stipulated that the Union had a membership of
DECISIONS AND ORDERS . 935
at least 252 of the total of 325 of the production employees of the
"front shop".
We, therefore, conclude that no secret ballot is necessary, and we
will certify the Union as the exclusive bargaining agency of all
the employees in the appropriate unit.
CONCLUSIONS OF LAW
Upon the basis of the above findings of fact, the Board makes the
following conclusions of law :
1. A question affecting commerce has arisen concerning the repre-
sentation of employees of Hat Corporation of America, within the
meaning of Section 9 (c), and Section 2, subdivisions (6) and (7)
of the National Labor Relations Act.
2. All production employees employed by Hat Corporation of
America in the "front shop" of the Company's plant No. 2 in East
Norwalk, Connecticut, constitute a unit appropriate for collective
bargaining, within the meaning of Section 9 (b) of the National
Labor Relations Act.
3. United Hatters, Cap and Millinery Workers International
Union, Locals No. 32 and No. 33, having been jointly selected for
the purposes of collective bargaining by the majority of the em-
ployees in the aforesaid unit, are, by virtue of Section 9 (a) of the
National Labor Relations Act, the exclusive representative of all the
employees in such unit for the purpose of collective bargaining in
respect to rates of pay, wages, hours of employment, and other con-
ditions of employment.
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 Re-
lations Act, 49 Stat . 449, and pursuant to Article III, Section 8 of
National Labor Relations Board Rules and Regulations-Series 1,
as amended,
IT Is HEREBY CERTIFIED that United Hatters , Cap and Millinery
Workers International Union , Locals No. 32 and No. 33, have been
jointly designated and selected by a majority of the production em-
ployees of the "front shop" of plant No. 2 of Hat Corporation of
America , in East Norwalk, Connecticut , as their representative for
the purposes of collective bargaining , and that, pursuant to Section
9 (a) of the Act, United Hatters , Cap and Millinery Workers Inter-
national Union , Locals No. 32 and No. 33, jointly , are the exclusive
representatives of all such employees for the purposes of collective
bargaining with respect to rates of pay , wages, hours of employment,
and other conditions of employment.