Henry Ford Trade School

National Labor Relations Board - Board Decisions

Oct 30, 1944

58 N.L.R.B. 1535 (N.L.R.B. 1944)

In the Matter of HENRY FORD TRADE SCHOOL and FORD INDUSTRIAL
EDUCATION ASSOCIATION
Case No. 'Y-R-1778.-Derided October 30, 1914
Mr. I. A. Capizzi, by Mr. Malcolm L. Denise, of Detroit, Mich., for
the School.
Mr. John B. Melotte , of Ann Arbor, Mich., for the Association.
Miss Melvern R. Krelow, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
Upon petition duly filed by Ford Industrial Education Association,
herein called, the Association, alleging that a question affecting com-
merce haA ' arisen concerning the representation of employees of
Henry Ford Trade School, Dearborn, Michigan, herein called the
School, the National Labor Relations Board provided for an appro-
priate hearing upon due notice before Robert J. Wiener, Trial Ex-
aminer. Said hearing was held at Detroit, Michigan, on July 31
and August 1, 10, 11, and 29, 1944. The School and the Association
appeared and participated. All parties were afforded full opportu-
nity to be heard, to examine and dross-examine witnesses, and to in-
troduce evidence bearing on the issues. At the commencement of
the hearing the School filed a motion to dismiss the petition on the
grounds that no question affecting commerce had arisen concerning
the representation of employees of the School, and that the Board is
without jurisdiction over questions arising between the School and
its employees since the School is a non-profit educational institution
not engaged in commerce within the meaning of the National Labor
Relations Act. The Trial Examiner reserved ruling on the motion
for the Board. For reasons hereinafter set forth the motion is hereby
denied. The Trial Examiner's rulings made at the hearing are free
from prejudicial error and are hereby affirmed. All parties were
afforded an opportunity to file briefs with the Board.
Upon the entire record in the case, the Board makes the following :
53 N L R B, No. 275.
1535
1536 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
FINDINGS OF FACT
1. THE BUSINESS OF THE 'SCHOOL
Henry Ford Trade School is a non-profit Michigan corporation
with its principal office and place of business in Dearborn, Michigan.,
The School was instituted by Henry Ford and opened on October 25,
1916. The School, which operates under the direction of a Board of
Trustees which, with the exception of the School superintendent, is
composed exclusively of executives of the Ford Motor Company,
herein called the Company, accepts boys for training when they are
between the ages of 12 and 15. This training consists of 34 weeks of
shop training and 14 weeks of classroom or academic training. The
students are paid a "cash scholarship" which is in the form of an
hourly rate of pay beginning at 25 cents per hour and reaching a maxi-
mum of 65 cents per hour. In addition, a savings account accumulated
at the rate of $2 per month is credited to each student; the students also
receive a free noontime meal. -
The School leases from the Company floor space, machinery, and
equipment. The School manufactures and repairs tools solely for the.
Company on orders received from the Company. The work is per-
formed by ' the students and instructors. The School charges the
Company for all the work done by it at a specified rate which, at the
time of the hearing, amounted to $1.70 per hour. All materials neces-
sary for completing the Company's orders are furnished by the Com-
pany, and the Company at all times retains title thereto. During 1943,.
the total operating expense of the School was $3,358,310.59, which
resulted in an operating deficit of between $100,000 and $300,000.
Orders received by the School from the Company, are destined for
delivery to the various plants of the Company both inside and outside
the State of Michigan. In addition to the manufacture and repair of
tools for the Company, the School publishes and sells several trade
books. One book, "Shop Theory," is also published and sold by Mc-
Graw Hill Company for which the School receives royalties. During
1943, the total book sales were in excess of $26,000 of which approxi-
mately 75 percent was shipped to points outside the State of Michigan.
The royalties received by the School during the same period amounted
to $11,667. -
The School contends that its sole activities "of any substance" are
cultural, namely, the education of its students, and that it is therefore
removed from the Board's jurisdiction. We do not agree with this,
contention. In 1943, the School received in excess of $3,000,000 for
1 The School 's articles of incorporation set forth the purposes for which the school was
formed as follows • "To give gratuitous training for mechanical trades and /or in agriculture
and instruction in technical , scientific, and agricultural subjects related thereto."
HENRY FORD TRADE SCHOOL
0
1537
the manufacture and repair of tools for the Company.2 The amount
thus received approximated the total operating expenses of the School,
and it cannot be said, therefore, that business operations which make
the School substantially self-sustaining are so subordinated to its cul-
tural activities as to be of little or no significance. Nor are we of the
opinion that the avowed educational purpose for which the School
was organized is inconsistent with a finding that it is also engaged in
a manufacturing enterprise which substantially affects commerce.3
We find that the School is engaged in commerce within the meaning
of the Act.
II. THE ORGANIZATION INVOLVED
Ford Industrial Education Association is an unaffiliated labor
organization admitting to membership employees of the School.
III. THE QUESTION CONCERNING REPRESENTATION
On or about May 1, 1944, the Association requested the School to
recognize it as bargaining agent for certain of the School's employees;
thereafter the School refused the request.
A statement of the Regional Director, introduced into evidence at
the hearing, indicates that the Association represents a substantial
number of employees in the unit hereinafter found appropriate.'
We find that a question affecting commerce has arisen concerning
the representation of employees of the School within the meaning of
Section 9 (c) and Section 2. (6) and (7) of the Act.
IV. THE APPROPRIATE UNIT
The parties are in general agreement that all employees of the
School, including'employees of the School who work in the training
school, naval training school, Ford Apprentice School, and Camp
Legion, and assistant department heads, but excluding department
heads, School superintendent, employees located in the office of the
School superintendent, shop superintendent, assistant shop superin-
tendents, personnel department employees, and all other supervisory
2 None of the parties gainsay, and the Board has previously found in numerous cases in-
volving the Company, that the Company is engaged in business affecting commerce within
the meaning of the Act.
a See Polish National Alliance v N L. R B., 322 U. S. 643, affirming 136 F. (2d) 175 (C.
C. A. 7), enf g as modified 42 N. L R. B. 1375
a The Regional Director reported that the Association submitted 296 application for mem-
bership and dues record cards of which 288 bear apparently genuine signatures; that the
names of 232 persons appearing on the cards were listed on the Company's pay roll of June
8, 1944, which contained the names of 407 employees in the appropriate unit; and that the
cards contained entries indicating dues paid through the following dates : July and December
1943, and January, February, March, April, May, June, July, August, October, and December
1944.
1538, DECISIONS OF NATIONAL LABOR RELATIONS BOARD
employees with authority to hire, promote, discharge, discipline, or
otherwise effect changes in the status of employees, or effectively rec-
ommend such action constitute an appropriate unit. They are in dis-
agreement, however, with respect to instructors. The School contends,
that instructors, whom the Association would include, should not
form a part of any bargaining unit.
The School employs classroom and shop instructors, whose primary
jobs are to instruct the students. In addition, the shop instructors
engage in the same work as that of the students. The classroom
instructors also engage in shop work during the summer vacation.
The School argues that since the instructors carry out policies of the
School and are expected to supervise and guide the students that they
should not be included in any bargaining unit. That the instructors
carry out the policies of the School and instruct and supervise the
students is apparent. However, with respect to employees of the
School, instructors make no recommendations regarding the hire, dis-
charge, or discipline of such employees, nor do they otherwise have
authority to effect changes in their status. Instructors are subject to
the same supervision and generally to the same working conditions
as the other employees of the School. Accordingly, we find, contrary
to the School's contention, that instructors may properly be included
in a collective bargaining unit composed of employees of the School.
We find that all employees of the School including employees of
the School who work in the training school, naval training school,
Ford Apprentice School, and Camp Legion, assistant department
heads,fi and instructors, but excluding employees located in the office
of the School superintendent, personnel department employees, the
School superintendent, shop superintendent, assistant shop superin-
tendents, department heads," and all other supervisory employees with
authority to hire, promote, discharge, discipline, or otherwise effect
changes in the status of employees, or effectively recommend such
action constitute a unit appropriate for the purposes of collective bar-
gaining within the meaning of Section 9 (b) of the Act.
V. THE DETERMINATION OF REPRESENTATIVES
We shall direct that the question concerning representation which
has arisen be resolved by an election by secret ballot among the em-
ployees in the appropriate unit who were employed during the pay
5 The parties agree , and we find, that F Paluchniak and E Jacobs , although classified as
assistant department heads, shall be excluded from the unit as falling within our definition
of supervisory employees
6 The parties agree , and we find, that W Ford , A Reamey, W Standbardt , W. Stewart, G.
Stuteville , C. Westerman , R Slade, F Czarnecki , H. Daley, C. Rottenheber , and W . Roehm,
classified as department heads , are to be included in the unit , since it appears that they do
not have substantial supervisory authority within our customary definition
HENRY FORD TRADE SCHOOL 1539
roll period immediately preceding the date of the Direction of Elec-
tion herein, subject to the limitations and additions set forth in the
Direction.
DIRECTION OF ELECTION
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, and pursuant to Article III, Section 9, of National Labor Rela-
tions Board Rules and Regulations-Series 3, as amended, it is hereby
DIRECTED that, as part of the investigation to ascertain representa-
tives for the purposes of collective bargaining with Henry Ford Trade
School, Dearborn, Michigan, an election by secret ballot shall be con-
ducted 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 for the Seventh Region, acting in this matter as
agent for the National Labor Relations Board, and subject to Article
III, Sections 10 and 11, of said Rules and Regulations, among the
employees in the unit found appropriate in Section IV, above, who
were employed during the pay-roll period immediately preceding the
date of this Direction, including employees who did not work during
the said pay-roll period because they were ill or on vacation or tem-
porarily laid off, and including employees in the armed forces of the
United States who present themselves in person at the polls, but ex-
cluding any who have since quit or been discharged for cause and have
not been rehired or reinstated prior ,to the date of the election, to
determine whether or not they desire to be represented by Ford
Industrial Education Association for the purposes of collective
bargaining.