International Furniture Co.

National Labor Relations Board - Board Decisions

Dec 27, 1939

18 N.L.R.B. 749 (N.L.R.B. 1939)

In the Matter Of INTERNATIONAL FURNITURE COMPANY and UPHOL-
STERERS & FURNITURE WORKERS UNION, LOCAL 186, AFFILIATED WITH
THE AMERICAN FEDERATION OF LABOR
Case No. C-1084.-Decided December 07, 1939
Furniture Manufacturing Industry-Settlement : stipulation providing for
compliance with the Act, including disestablishment of and abrogation of con-
tracts with company-dominated union, and placing of employees on a prefer-
ential list-Order: entered on stipulation.
Mr. Colonel C. Sawyer, for the Board.
Mr. Jackiel W. Joseph, of Indianapolis, Ind., for the respondent.
Mr. Joseph M. Jacobs, Mr. Alfred Rota and Mr. Roy Grove, of
Chicago, Ill., for the Union.
Mr. Edwin L. Swope, of counsel to the Board..
DECISION
AND
ORDER
STATEMENT OF THE CASE
On September 10, 1937, Upholsterers & Furniture Workers Union,
Local No. 24,1 filed with the Regional Director for the Eleventh
Region, (Indianapolis, Indiana) a charge alleging that International
Furniture Company, Chicago, Illinois, herein called the respondent,
had engaged in unfair labor, practices within the meaning of .the
National Labor Relations Act, 49 Stat. 449, herein called the Act, at
its plant in Rushville, Indiana. On April 8, 1938, Upholsterers', Fur-
niture, Carpet, Linoleum & Awning Workers' International Union of
North America, Local No. 10, filed with the Regional Director for
the Sixth Region (Pittsburgh, Pennsylvania), a charge alleging that
the respondent had engaged in unfair labor practices within the
meaning of the Act at its plant in Pittsburgh, Pennsylvania.
On April 14, 1938, Upholsterers', Furniture, Carpet, Linoleum &
Awning Workers' International Union of North America, filed with
the Regional Director for the Eleventh Region, a petition alleging
that a question affecting commerce had arisen concerning representa-
tion of employees of the respondent at its four plants la and requesting
1 This charge was apparently filed on behalf of Local 186, and the amended charges,
subsequently filed, dealing with the same matters, were filed by Local 186.
In These plants were located at Rushville, Indiana, Pittsburgh, Pennsylvania, Chicago,
Illinois, and St. Louis, Missouri. .
18 N. L. R. B., No. 89. 749
750 DECISIONS OF NATIONAL LABOR RELATIONS, BOARD
an investigation and certification of representatives pursuant to Sec-
tion 9 (c) of the Act. On June 22, 1938, the National Labor Rela-
tions Board, herein called the Board, issued an order (1) transfer-
ring to and continuing in the Eleventh Region the case initiated by
the filing of the charge in the Sixth Region; (2) directing the
Regional Director for the Eleventh Region to conduct an investi-
gation in the representation case and to provide an appropriate
hearing upon due notice, and (3) consolidating all three cases for
purposes of hearing. Thereafter, Upholsterers & Furniture Workers
Union, Local 186, herein called the Union, filed amended charges.
Upon the charges and amended charges, the Board, by Robert H.
Cowdrill, Regional Director for the Eleventh Region, issued its com-
plaint dated July 28, 1938, against the respondent alleging that the
respondent had engaged in and was engaging in unfair labor prac-
tices at its Rushville, Indiana, plant and at its Pittsburgh, Pennsyl-
vania, plant, within the meaning of Section 8 (1), (2), and (3) and
Section 2 (6) and (7) of the Act. Copies of the complaint accom-
panied by notice of hearing were duly served upon the parties.
Thereafter, the respondent filed its answer, dated August 15, 1938,
admitting that it was engaged in interstate commerce as alleged in
the complaint, but denying that it had engaged in the alleged unfair
labor practices.
Pursuant to notice, a hearing on the consolidated cases was held
at Rushville, Indiana, on August 29, 30, 31, September 1, 2, 6, 7, 8, 9,
12, 13, and 14, 1938, before Wright Clark, the Trial Examiner duly
designated by the Board. The Board, the respondent, and the unions
were represented by counsel and participated in the hearing. During
the hearing counsel for the Board introduced in evidence a stipula-
tion, entered into on September 12, 1938, by the respondent, the
Union, and counsel for the Board, settling the case initiated by the
charges filed in the Sixth Region concerning the alleged unfair labor
practices at the Pittsburgh plant, subject to the approval of the
Board.
Thereafter, on November 29, 1938, the Trial Examiner issued his
Intermediate Report, which was duly served on the parties. The
Trial Examiner found that the respondent had violated Section
8 (1) and (2) of the Act at its Rushville plant, but dismissed the
8 (3) allegations in the complaint. Because of the above-mentioned
stipulation he made no findings concerning the case involving the
unfair labor practices at the Pittsburgh plant. On December 17,
1938, the Union filed exceptions to the Intermediate Report.
On January 16, 1939, the Board issued an order approving the
stipulation, involving the case concerning the unfair labor prac-
z Pursuant to Article II, Section 37 (c) of National Labor Relations Board Rules and
Regulations-Series 1, as amended.
INTERNATIONAL FURNITURE COMPANY 751
(ices at the Pittsburgh plant and making it a part of the record, and
transferring to and continuing the case before the Board for the
purpose of entering a decision and order by the Board pursuant to
the provisions of the stipulation. On April 19, 1939, the Board issued
an order severing the case concerning the unfair labor practices at
the Rushville plant from the other two cases, and authorizing the
Regional Director for the Eleventh Region to accept amended charges
to include additional alleged violations of Section 8 (1) and (3) of
the Act, and to issue an amended complaint and notice of hearing in
said case. On April 27, 1939, the Regional Director issued and duly
served on the parties an amended complaint and notice of hearing.
The amended complaint alleged, in substance, that the, respondent
on or about July 22, 1937, instigated the formation of a labor organi-
zation among the employees at its Rushville plant, known as
Employees' Welfare Association of the International Furniture
Company, and thereafter until December 15, 1937, fostered, promoted,
and encouraged the formation and growth of said Association; that
on November 24, 1937, and thereafter, the respondent discriminated
with respect to the hire and tenure of employment of 36 named
persons because of their affiliation with the Union and for the pur-
pose of discouraging membership in the Union ; and that by the
above and other acts and conduct, the respondent interfered with,
restrained, and coerced its employees at the Rushville plant in the
exercise of the rights guaranteed in Section 7 of the Act. On May 12,
1939, the Board issued an order severing the case concerning the unfair
labor practices at the Pittsburgh plant from the representation case.
On May 26, 1939, the Board issued a decision and order based upon
the stipulation which settled the case concerning the unfair labor
practices at the Pittsburgh plant.3
On August 19, 1939, the respondent, the Union, and counsel for
the Board entered into a stipulation in settlement of the case con-
cerning the unfair labor practices at the Rushville plant, subject to
approval of the Board. On November 16, 1939, a supplemental
stipulation amending the stipulation was executed by the respondent,
by the Union, and by counsel for the Board. The stipulation, as
amended, provides as follows :
IT IS HEREBY STIPULATED AND AGREED by and between the
International Furniture Company (hereinafter called the
respondent), and Upholsterers & Furniture Workers Union,
Local 186, Affiliated with the American Federation of Labor, by
the Upholsterers', Furniture, Carpet, Linoleum and Awning
Workers' International Union of North America, Affiliated with
the American Federation of Labor, and the Upholsterers', Fur-
8 12 N. L. R. B. 1277.
752 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
niture, Carpet, Linoleum and Awning Workers' International
Union of North America, Affiliated with the American Federa-
tion of Labor (both being hereinafter called the union), and
Colonel C. -Sawyer, Attorney for the Eleventh Region of the
National Labor Relations Board, for the purposes of the above
entitled proceedings, as follows :
(1) Respondent is and has been since July 6, 1920, a corpora-
tion duly organized under and existing by virtue of the laws of
the State of Illinois, having its principal office and place of busi-
ness in the City of Chicago, at 2127 South Racine Avenue, in the
County of Cook, and State of Illinois, and is now and has been
continuously engaged at the following places of business :
Chicago, County of Cook, State of Illinois (hereinafter referred
to as the Chicago plant) ;
Rushville, County of Rush, State of Indiana (hereinafter
referred to as the Rushville plant) ;
Pittsburgh, County of Allegheny, Commonwealth of Pennsyl-
vania (hereinafter referred to as the Pittsburgh plant) ;
And formerly operated a plant in St. Louis, County of St.
Louis, State of Missouri (hereinafter referred to as the St. Louis
plant), in the manufacture, sale and distribution of upholstered
furniture.
(2) The plant in Rushville, Indiana, engages' in the manufac-
ture of a low-priced line of two-piece living room suites and all
mail order merchandise. During the first six months of 1938 the
Rushville plant purchased raw materials amounting to $51,000.00.
These raw materials consisted of the following items, the source
of said materials being set opposite the name of the item :
Lumber : Percent
Illinois -------------------------------------------- 85
Tennessee ----------------------------------------- 15
Coverings:
Pennsylvania
Rhode Island --------------------------------------- 100
Connecticut
Springs :
Indiana------------------------------------------- 10
Illinois------ -------------------------------------- 90
Cotton :
Indiana ---------------------------- ---- Nothing
Ohio---------------------------------------------- 100
Of the above raw materials 8017o, in terms of dollars, was pur-
chased from sources located in states other than the State of
Indiana.
(3) During the first six months of 1938 the output of the
Rushville plant consisted of 2,250 two -piece living room suites.
INTERNATIONAL F`URN'ITURE COMPANY 753
The said living room suites being the principal production of
the Rushville plant.
(4) In 1937 approximately 50% of the finished products of
the Rushville plant of the, respondent were shipped by the Rush-
ville plant to points outside of the State of Indiana.
(5) International Furniture Company admits that it is
engaged in interstate commerce within the meaning of Section
2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449.
(6) Pursuant to notice, a hearing on the above cases and case
C-1120 (said cases being consolidated by the Board for the pur-
poses of hearing and for other purposes) was held in Rush-
ville, Indiana, on August 29, 30, 31, September 1, 2, 6, 7, 8, 9,
12,. 139 and 14, 1938.
During the hearing a Stipulation was entered into on Sep-
tember 12, 1938 by the respondent, the union, and counsel for
,the Board, settling the said case C-1120. The Stipulation was
approved by the Board, and on April 19, 1939, the Board issued
an Order severing said case C-1120 from cases C-1084 and
R-1023; and, on May 12, 1939, issued an Order severing the
two cases C-1084 and R-1023, continuing them as separate
proceedings.
At the hearing the Board, the respondent, and the union were
represented by counsel.
(6-a) That on April 19, 1939, subsequent to the said hearing,
the National Labor Relations Board ordered, among other
things, that the Regional Director for the Eleventh Region,
be authorized to accept an amended charge, to issue thereon an
amended complaint and to issue Notice of Further Hearing in
Case No. C-1084. Such amended charge having already been
filed by the Union on March 29, 1939, the Regional Director
did, on April 27, 1939, issue an amended complaint herein, and
Notice of Hearing with copies of said amended charge and the
Order of the National Labor Relations Board of April 19, 1939,
and Rules and Regulations, Series 1, as amended, of the National
Labor Relations Board, all attached thereto. That copies of
said amended complaint, Notice of Hearing and matters attached
thereto, were served upon all of the parties hereto by postpaid
registered mail, deposited in the United States Post Office in
Indianapolis on. April 27, 1939. That the said Notice of Hear-
ing designated May. 8, 1939 at 10: 00 o'clock A. M. in the Circuit
Court Room of the Rush County Court House, City of Rush-
ville, State of Indiana, as the time and place for the hearing.
(7) That since the hearing in this matter in August of 1938,
during the year 1939, the International Furniture Company has
754 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
reinstated to employment the following named employees in their
former, or substantially equivalent, positions at its Rushville
plant, and without prejudice to the seniority and other rights
and privileges previously enjoyed:
Thomas Johnson Donald Carpenter Kenneth Davis
Wallace Snoddy Loren Lee Albert Gard
Irvin Cross Verl Hornaday Raymond Wright
Donald Lloyd Othel Robbins Welch Everman
Edw. Robbs Walter Roberts Everett Cross
John Wesling Wilmer Couch Gusta Gibbs
Harold Lloyd Lavern Houston
Paul McCreary Wayne Lee
That it has offered employment to Granville Moore, who re-
fused employment because he was gainfully employed.
(8) That the Notice, provided for in paragraph III (c) herein
was heretofore posted on the 15 day of Dec. 1938, and remained
so posted for a period of sixty (90) days.
(9) That on May 29, 1939, the union entered into a closed
shop agreement with the respondent concerning wages, hours,
and working conditions of its employees, in which agreement
the respondent recognized the union as sole and exclusive bar-
gaining agency of its employees in its Rushville plant.
That the respondent's plant at St. Louis was closed during the
month of May 1939, and has continued to remain closed to and
including the date of this Stipulation.
That the respondent and the union have an oral shop agree-
ment concerning wages, hours, and working conditions of its
employees, which is still in force and effect at its Chicago plant.
That the Pittsburgh plant is operated as an open shop.
1. Upon the basis of the record of testimony taken and exhibits
introduced at the hearing above referred to, and including the
amended complaint herein issued April 27, 1939, and the facts
stipulated in the above paragraphs of this Stipulation, and by
agreement of the parties hereto, the National Labor Relations
Board may enter an Order in Case C-1084.
II. The said Order shall provide as follows :
(a) The International Furniture Company, its officers, agents,
successors, and assigns shall cease and desist from in any manner
interfering with, restraining, or coercing its employees at its
Rushville plant in the exercise of their right to self-organization,
to form, join, or assist labor organizations, to bargain collectively
through representatives of their own choosing, and to engage in
concerted activities for the purpose of collective bargaining, or
other mutual aid or protection;
INTERNATIONAL FURNITURE COMPANY 755
(b) The International Furniture Company, its officers, agents,
successors, and assigns, shall cease and desist at its Rushville plant
from in any manner discouraging membership in the Upholsterers
& Furniture Workers Union, Local 186, Affiliated with the Amer-
ican Federation of Labor, or any other labor organization, of its
employees, by discrimination in regard to their hire or tenure of
employment because of their membership in, or activity in behalf
of, any such labor organization;
(c) The International Furniture Company, its officers, agents,
successors, and assigns, shall cease and desist at its Rushville plant
from domination or interfering with the administration of the
Employees' Welfare Association of the International Furniture
Company, or dominating or interfering with the formation or
administration of any other labor organization of its employees
or contributing financial or other support to the Employees' Wel-
fare Association of the International Furniture Company, or to
any other labor organization of its employees, and from giving
effect or validity to any and all contracts now in existence between
the Employees' Welfare Association of International Furniture
Company and the International Furniture Company.
III. The International Furniture Company, its officers, agents,
successors, and assigns shall take the following affirmative action
in order to effectuate the policies of the National Labor Relations
Act :
(a) Withdraw all recognition from the Employees' Welfare
Association of the International Furniture Company as repre-
sentative of its employees at its Rushville plant for the purpose of
dealing with the International Furniture Company concerning
grievances, labor disputes, wages, rates of pay, hours of employ-
ment, or other conditions of employment; completely disestablish
the Employees' Welfare Association of the International Furni-
ture Company as such representative; and abrogate and render
null and void any and all contracts existing between the Em-
ployees' Welfare Association of the International Furniture Com-
pany and the International Furniture Company;
(b) Place upon a preferential list to be reinstated to employ-
ment before any other persons whatsoever are hired, said reem-
ployment to be in the following order :
1. Norman Gould 7. Otto Floyd
2. Paul Mathews 8. Eckart Alsman
3. Robert Wilder 9. Charles Andrews
4. Charles McCreary 10. Frank Martin
5. Cassil Andrews 11. Louis Deeter
6. Sylvia Wilder
756 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
(c) Post immediately in conspicuous places throughout its
Rushville plant, and maintain for a period of at least sixty (60)
consecutive days, notices stating that :
1. The International Furniture Company will cease and desist
in the manner aforesaid;
2. The International Furniture Company employees at its
Rushville plant will not be interfered with, restrained, or coerced
in the exercise of their rights to self-organization, to bargain col-
lectively with representatives of their own choosing, and to
engage in other mutual aid or protection;
3. The International Furniture Company has withdrawn. all
recognition from the Employees' Welfare Association of the
International Furniture Company as a representative of its
employees for the purpose of dealing with the International
Furniture Company concerning grievances, labor disputes, wages,
rates of pay, hours of employment, or other conditions of employ-
ment; and that the said Employees' Welfare Association is com-
pletely disestablished as such representative;
4. That any and all contracts existing between the Interna-
tional Furniture Company and the Employees' Welfare Asso-
ciation of the International Furniture Company have been abro-
gated and are null and void.
(d) Notify the Regional Director for the Eleventh Region
within ten (10) days of the notification of the Board's approval
of this Stipulation, by a detailed report in writing, the manner
and form in which it has complied with the said Stipulation.
IV. Respondent, International Furniture Company, hereby
consents to the entry by the United States Circuit Court of
Appeals for the, appropriate Circuit upon application by the
Board of a decree enforcing an order of the Board in the form
hereinabove set forth and hereby waives further notice of the
application for such decrees.
V. It is further stipulated and agreed by all the parties hereto,
subject to the approval of the National Labor Relations
Board, that the National Labor Relations Board may
enter an order dismissing (1) the Petition for Investiga-
tion and Certification of Representatives in the above case
R-1023; (2) the amended Complaint herein as to George Wise
and John Ricker.
VI. It is the sense of this Stipulation that in consideration of
the reemployment action heretofore taken, or to be taken, by the
International Furniture Company, the union, and each of its
members affected, release the respondent from any and all claims
arising out of the aforementioned proceedings, including wages
INTERNATIONAL FURNITURE COMPANY 757
and/or compensation during any period of unemployment prior
to'the entry of this Stipulation.
VII. It is expressly understood and agreed that this Stipula-
tion is subject to the approval of the National Labor Relations
Board.
On December 14, 1939, the Board issued an order approving the
above stipulation, as amended, and making it part of the record in
this case, and transferring this case to and continuing. it before the
Board for the purpose of entry of a decision and order by the Board,
pursuant to the provisions of the stipulation.
Upon the above stipulation and agreement, as amended, and upon
the entire record in the case, the Board makes the following :
FINDINGS OF FACT
1. TIIE BUSINESS OF'THE RESPONDENT
The respondent is an Illinois corporation and has its principal
office and place of business in Chicago, Illinois. It is engaged in the
manufacture, sale, and distribution of home furniture at' its three
plants located in Chicago, Illinois; Rushville, Indiana; and Pitts-
burgh, Pennsylvania.4
During the first 6 months of 1938, 80 per cent in dollar value of
the raw materials used at its Rushville plant were purchased by the
respondent from sources outside the State of Indiana and trans-
ported to the Rushville plant. These materials consisted principally
of lumber, coverings, springs, and cotton. During the first 6 months
of 1938 the raw materials purchased for the Rushville plant
amounted to $51,000 in value. In 1937 approximately 50 per cent
of the finished products of the Rushville plant were shipped to points
outside Indiana. During the first 6 months of 1938 the output of
the Rushville plant was 2,250 two-piece living room suites.
The respondent admits and we find that it is engaged in commerce
within the meaning of the Act.
ORDER
Upon the basis of the above findings of fact and stipulation, and
the entire record in the case, and pursuant to Section 10 (c) of the
National Labor Relations Act, the National Labor Relations Board
hereby orders that the respondent, International Furniture Company,
Chicago, Illinois, and its officers, agents; successors, and assigns shall:
4 The respondent formerly operated a plant at St. Louis, Missouri.
758 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
1. Cease and desist from :
(a) In any manner interfering with, restraining or coercing it.,,
employees at its Rushville plant in the exercise of their right to self-
organization, to form, join or assist labor organizations, to bargain
collectively through representatives of their own choosing, and to
engage in concerted activities for the purpose of collective bargain-
ing, or other mutual aid or protection;
(b) In any manner discouraging membership in the Upholsterers
& Furniture Workers Union, Local 186, affiliated with the American
Federation of Labor, or any other labor organization of its employees
at its Rushville plant by discrimination in regard to their hire or
tenure of employment because of their membership in, or activity
in behalf of, any such labor organization;
(c) Dominating or interfering with the administration of Em-
ployees' Welfare Association of the International Furniture Com-
pany, or domination or interfering with the formation or admin-
istration of any other labor organization of the employees at its
Rushville plant, or contributing' financial or other support to Em-
ployees' Welfare Association of the International Furniture Com-
pany or to any other labor organization of its employees at its
Rushville plant; and from giving effect or validity to any and all
contracts now in existence between the Employees' Welfare Asso-
ciation of the International Furniture Company and the respondent.
2. Take the following affirmative action which the Board finds will
effectuate the policies of the Act :
(a) Withdraw all recognition from the Employees' Welfare Asso-
ciation of the International Furniture Company as representative
of its employees at its Rushville plant for the purpose of dealing with
the respondent concerning grievances, labor disputes, wages, rates of
pay, hours of employment, or other conditions of employment; com-
pletely disestablish the Employees' Welfare Association of the Inter-
national Furniture Company as such representative; and abrogate
and render null and void any and all contracts existing between the
Employees' Welfare Association of the International Furniture Com-
pany and the respondent;
(b) Place upon a preferential list to be reinstated to employment
before any other persons whatsoever are hired, said reemployment to
be in the following order :
1. Norman Gould 7. Otto Floyd
2. Paul Mathews 8. Eckart Alsman
3. Robert Wilder 9. Charles Andrews
4. Charles McCreary 10. Frank Martin
5. Cassil Andrews 11. Louis Deeter
6. Sylvia Wilder
INTERNATIONAL FURNITURE COMPANY 759
(c) 'Post immediately in conspicuous places throughout its Rush-
ville plant, and maintain for a period of at least sixty (60) con-
secutive days, notices stating that: (1) The International Furniture
Company will cease and desist in the manner aforesaid; (2) The In-
ternational Furniture Company employees at its Rushville plant will
not be interfered with, restrained, or coerced in the exercise of their
rights to self-organization, to bargain collectively with representatives
of their own choosing, and to engage in other mutual aid or protec-
tion; (3) The International Furniture Company has withdrawn all
recognition from the Employees' Welfare Association of the Inter-
national Furniture Company as a representative of its employees for
the purpose of dealing with it concerning grievances, labor disputes,
wages, rates of pay, hours of employment, or other conditions of
employment; and that the said Employees' Welfare Association is
completely disestablished as such representative; (4) that any and
all contracts existing between the In Furniture Company
and the Employees' Welfare Association of the International Furni-
ture Company have been abrogated and are null and void;
(d) Notify the Regional Director for the Eleventh Region within
ten (10) days of the service of this Order, by a detailed report in
writing, the manner and form in which it has complied with the said
Order.
AND IT IS FURTHER ORDERED that the allegations of the complaint, as
amended, with respect to George Wise and John Ricker, be, and the
same hereby are, dismissed.
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