Life Insurance Co. of Virginia

National Labor Relations Board - Board Decisions

Jan 3, 1942

38 N.L.R.B. 20 (N.L.R.B. 1942)

In the Matter of LIFE INSURANCE COMPANY OF VIRGINIA, BRANCH
OFFICE, ROANOKE, VIRGINIA and AMERICAN FEDERATION OF INDUSTRIAL
& ORDINARY INSURANCE AGENTS' UNION No. 22857 OF ROANOKE,
VIRGINIA
In the Matter of THE LIFE INSURANCE CO. OF VIRGINIA, TOLEDO, OHIO
and AMERICAN FEDERATION OF INDUSTRIAL & ORDINARY INSURANCE
AGENTS' UNION No. 22832
In the Matter of LIFE INSURANCE COMPANY OF VIRGINIA; BRANCH
OFFICE, SAVANNAH, GEORGIA and AMERICAN FEDERATION OF INDUS-
TRIAL & ORDINARY INSURANCE AGENTS' UNION No. 22802 OF
SAVANNAH, GEORGIA ,
In the Matter of LIFE INSURANCE COMPANY OF VIRGINIA, BRANCH
OFFICE, ANDERSON, INDIANA and AMERICAN FEDERATION OF
INDUSTRIAL & ORDINARY INSURANCE AGENTS' UNION No. 22872
In the Matter of LIFE INSURANCE COMPANY OF VIRGINIA, BRANCH
OFFICE, GREENVILE, SOUTH CAROLINA and AMERICAN FEDERATION OF
INDUSTRIAL & ORDINARY INSURANCE AGENTS' UNION NO. 22870
In the Matter of LIFE INSURANCE COMPANY OF VIRGINIA, BRANCH
OFFICE, NEW ORLEANS AND ALGIERS, LA. and AMERICAN FEDERATION
OF INDUSTRIAL & ORDINARY INSURANCE AGENTS' UNION No. 22873
In the Matter of LIFE INSURANCE' COMPANY OF VIRGINIA, BRANCH
OFFICE, LYNCHBURG, VIRGINIA and AMERICAN FEDERATION OF INDUS-
TRIAL & ORDINARY INSURANCE AGENTS' UNION No. 22947, LYNCHBURG,
VIRGINIA, AFFILIATED WITH AMERICAN FEDERATION OF LABOR
In the Matter of I= INSURANCE COMPANY OF VIRGINIA, BRANCH
OFFICE, AUGUSTA, GEORGIA and AMERICAN FEDERATION OF INDUSTRIAL
& ORDINARY INSURANCE AGENTS' UNION No. 22902
Cases Nos. R 3259 to R-3366, respectively-Decided January 3, 1942
Jurisdiction : life insurance business.
Investigation and Certification of Representatives : existence of questions:
Company and union agree that question be submitted to Board ; election
necessary.
Units Appropriate for Collective Bargaining : debit collectors in eight district
offices excluding district managers, assistant district managers , office and
clerical employees, and inspectors constitute eight separate units.
38 N. L. R. B., No. 5.
20
LIFE INSURANCE- COMPAKY OF VIRGINIA 21
Mr. Elgin Hardin, for the Board.
Mr. Sidney J. Hilton and Mr. William R. Sh,ands, of Richmond, Va.,
for the Company.
Mr. ,George ,L. Russ, of Washington, D. C., for the A. F. of L., the
Council, and the Unions.
Mr. Wm. F. Scharnikow, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTIONS
STATEMENT OF THE CASE
On various dates between July 25, and September 29, 1941, Ameri-
can Federation of Labor, herein called the A. F. of L., Industrial
& Ordinary Insurance Agents' Council, affiliated with the American
Federation of Labor, herein called the Council, and three locals of
the American Federation of Industrial & Ordinary Insurance Agents'
Union, affiliated with the American Federation of Labor, herein col-
lectively called the Unions and individually referred to by their
local union numbers, filed petitions, totalling eight in number, with
the Regional Directors for the Fifth, Eighth, Tenth, Eleventh, and
Fifteenth Regions.' The petitions alleged that questions affecting
commerce had arisen concerning the representation of employees of
the Life Insurance Company of Virginia, Richmond, Virginia, herein
called the Company, in its district offices at Roanoke, Virginia ; 2 at
Toledo, Ohio; 3 at,Savannah, Georgia;' at Anderson, Indiana; 5 at
Greenville, South Carolina; 6 at Algiers and New Orleans, Louisi-
ana; 7 at Lynchburg, Virginia; 8 and at Augusta, Georgia,9 respec-
1 Baltimore , Maryland ; Cleveland , Ohio ; Atlanta , Georgia ; Indianapolis , Indiana ; and
New Orleans , Louisiana , respectively . See footnotes 2 to 9, inclusive, below
2 Case No. R-3259, on petition of Union No . 22857 of Roanoke , Virginia , filed with the
Regional Director for the Fifth Region on August 4, 1941.
3 Case No R-3260, on petition of the A F. of L filed with the Regional Director for
the Eighth Region on July 25 , 1941. Transferred to the Fifth Region on August 8, 1941.
* Case No R-3261, on petition of Union No . 22802 of Savannah , Georgia, filed with the
Regional Director for the Tenth Region on August 4 , 1941. Transferred to the Fifth Region
on August 13, 1941.
6 Case No. R-3262 , on petition of the Council , filed with the Regional Director for the
Eleventh Region on August 20 , 1941 . Transferred to the Fifth Region on September 3,
1941.
e Case No. R-3263, on petition of the Council , filed with the Regional Director for the
Tenth Region on August 18, 1941. Transferred to the Fifth Region' on September 5, 1941.
7 Case No. R-3264, on petition of the Council , filed with the Regional Director for the
Fifteenth Region on September 12, 1941. Transferred to the Fifth Region on September 22,
1941.
8 Case No R-3265, on petition of Union No . 22947, Lynchburg , Virginia , filed with the
Regional Director for the Fifth Region on September 29, 1941
9 Case No. R-3266, on petition of the Council , filed with the Regional Director for the
Tenth Region on September 6, 1941 . Transferred to the Fifth Region on October 18, 1941.
22 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
tively, and requested an investigation and certification of
representatives in each case pursuant to Section 9 (c) of the National
Labor Relations Act, 49 Stat. 449, herein called the Act.
Thereafter, the National Labor Relations Board, herein called the
Board, acting pursuant to Article III, Section 10 (c) (3), of National
Labor Relations Board Rules and Regulations-Series 2, as amended,
ordered that the cases upon the petitions filed with the Regional Direc-
tors for the Eighth, Tenth, Eleventh, and Fifteenth Regions 10 be
transferred to, and continued in, the Fifth Region.
On October 10, and 27, 1941, the Board, acting pursuant to Sec-
tion 9 (c) of the Act and Article III, Section 10 (c) (2), of National
Labor Relations Board Rules and Regulations-Series 2, as amended,
ordered the Regional Director for the Fifth Region to conduct an
investigation and to provide for an appropriate hearing upon due
notice, and further ordered that the cases be consolidated.
On October 30, 1941, the Regional Director for the Fifth Region
issued a notice of hearing, copies of which were duly served upon
the Company, the A. F. of L., the Council, and the Unions. Pursu-
ant to the notice, a hearing was held on November 7, 1941, at Rich-
mond, Virginia, before Malcolm A. Hoffmann, the Trial Examiner
duly designated by the Chief Trial Examiner. The Company, the
A. F. of L., the Council and the Unions were represented by counsel
and participated in the hearing. Full opportunity to be heard, to
examined and cross-examine witnesses, and to introduce evidence bear-
ing on the issues was afforded all parties.
At the hearing, the Trial Examiner, on motions of the A. F. of L.,
the Council, and the Unions, the Company expressly stating that it
had no objection, permitted American Federation of Industrial &
Ordinary Insurance Agents' Unions Nos. 22832, 22872, 22870, 22873,
and 22902, herein also collectively called the Unions and individually
referred to by their local union numbers,. to be substituted for the
A. F. of L. in Case No. R-3260, and for the Council in Cases Nos.
R-3262, R-3263, R-3264, and R-3266, respectively.- On the motion
of the Company, and with the consent of the Unions, the petition in
Case No. R-3260 was amended by substituting "debit collectors" for "all
salesmen" in designating the unit therein alleged to be appropriate.'-'
The Trial Examiner also made certain rulings on-objections to the
admission of evidence. The Board has reviewed all the rulings of
the Trial Examiner and finds that no prejudicial errors were com-
mitted. The rulings are hereby affirmed. -
10 See footnotes 3, 4, 5, 6, 7, and 9 above.
n See footnotes 3, 5, 6, 7, and 9 above.
12 The other petitions described the unit sought as consisting of "debit collectors," which
the parties at the hearing agreed was the generally accepted description of the employees
involved herein.
LIFE INS'UR'ANCE COMPANY OF VIRGINIA 23
At the hearing, the Company moved to dismiss the petitions herein
on jurisdictional grounds. The Trial Examiner referred the motion
to the Board for appropriate action. The motion is hereby denied.
Upon the entire record in the case, the Board makes the following:
FINDINGS OF FACT
1. THE BUSINESS OF THE COMPANY
Life Insurance Company of Virginia is a Virginia corporation
having its principal office, herein called the home office, in Richmond.
Virginia. It is engaged in the writing of ordinary and weekly pre-
mium insurance on the lives of its policyholders and in investing its
funds. It is licensed to do business in 16 States and the District
of Columbia and operates district offices in 12 States and the District
of Columbia.
The Company's business is managed and directed by its directors
and officers located at the home office. Thus, the terms and condi-
tions of the various policies of insurance offered by the Company
are determined, and all investments of the Company's funds are
made, by such officials at the home office. All applications for in-
surance and claims, applications for loans, and other matters per-
taining to insurance in force are acted upon at the home office. All
policies of insurance and all checks covering disbursements by the
Company are executed at the home office.
On December 31, 1940, the Company had in force and effect in-
surance policies amounting to $565,151,504, of which approximately
16.1 per cent by number and 13.7 per cent by amount were in force
in the district offices involved herein. Its assets aggregated $111,-
021,357.28, represented for the greater part by $3,172,112.64 in cash
deposited in 123 banks and trust companies located in 18 States and
the District of Columbia; by bonds of a value of $50,553,434.93 in-
cluding $11,346,336.76 in public utility bonds, and $10,796,678.16 in
railroad and industrial bonds; by stocks of a value of $4,057,410.79,
consisting mostly of preferred stocks of railroads, public utilities,
industrial and miscellaneous companies; and by real estate mortgages
in the sum of $33,034,380.63. During 1940, the Company .purchased
securities from companies located in 7 States and the District of
Columbia, which securities were delivered to it at its home office.
During the same year, the Company purchased furniture, fixtures
and mechanical equipment valued at $19,460.67, of which about one-
sixth was shipped to its district offices in States other than Virginia
and in the District of Columbia, and paper and other stationery sup-
plies valued at $62 ,249.59, 37 per cent of which was distributed among
the various district offices of the Company. Of approximately 15,000
24 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
pounds of stationery and material so purchased each year, approxi-
mately 78 per cent is shipped to district offices of the_ Company out-
side the State of Virginia. In 1940, the Company spent $42,292.56
'for postage and for telephone, telegram, and express service and
$21,277.70 for the traveling expenses of its agency supervisors.13
The present proceeding involves approximately 149 debit collec-
tors employed by the Company in eight of its district offices, to solicit
and write life insurance (including annuities and endowments), to
be issued by the Company, and to collect the premiums on, and other-
wise to service the policies so written. -
II. THE ORGANIZATIONS INVOLVED
American Federation of Industrial & Ordinary Insurance Agents'
Unions, Nos. 22857 of Roanoke, Virginia, 22832, 22802 of Savannah,
Georgia, 22872, 22870, 22873, 22947, and 22902 are labor organizations
affiliated with the American Federation of Labor, admitting to mem-
bership employees of the Company.
III. THE QUESTIONS CONCERNING REPRESENTATION
The Council and various American Federation of Industrial & Ordi-
nary Insurance Agents' Unions have, on a number of occasions, been
refused recognition by the Company as the exclusive bargaining agents
of debit collectors employed by the Company in district offices other
than those here involved until representatives were certified by the
Board.14 The instant proceedings were instituted pursuant to agree-
ment reached by the Council, the Unions, and the Company, as a matter
of policy, that whenever the Council and Unions or any of them
claimed recognition as the exclusive bargaining agent for any of the
Company's debit collectors such claims should be resolved in a proceed-
ing before the Board.
At the hearing, statements prepared by the Regional Director for
the Fifth Region were introduced' in evidence showing that each of
`8A detailed statement of the widespread and diverse nature of the Company's invest-
ment business, the structure and the general operation of the Company, and its use of
the instrumentalities of interstate transportation and communication may be found in
Matter of The Life Insurance Company of Virginia and American Federation of Industrial
and Ordinary Insurance Agents' Union No. 22164, 31 N. L. R. 13, No. 111, a prior proceed-
ing in which the Company was involved. The Company has agreed that the evidence and
the contents of stipulations concerning its business, which were submitted in the prior
proceeding may be considered in the present proceeding.
14 The Company in each instance questioned the applicability of the Act and majority
representation by the Unions. Matter of Life Insurance Company of Virginia and The
American Federation of Industrial and Ordinary Insurance Agents Union No. 22264,
et als., 29 N. L. R B, No. 44, and Matter of The Life Insurance Company of Virginia,
Richmond, Va. and American Federation of Industrial and Ordinary Insurance Agents
Union No. 22164, Richmond, Va., et at., 31 N. L. R. B., No. 111.
LIFE INSURANCE COMPANY OF VIRGINIA 25
the Unions represents a substantial number of the, Company's em-
ployees in the unit requested by it and hereinafter found to be
appropriate.'-' -
We find that questions have arisen concerning the representation
of employees of the Company.
IV. THE EFFECT OF THE QUESTIONS CONCERNING REPRESENTATION UPON
COMMERCE
We find that the questions concerning representation which have
arisen, occurring in connection with the operations of the Company
described in Section I above, have a close, intimate, and substantial
relation to trade, traffic, commerce, and transportation among the
several States, and tend to lead to labor disputes burdening and
obstructing commerce and the free flow of commerce.
V. THE APPROPRIATE UNITS
Contrary to the argument of the Company, we find, as we have
previously found and upon the same basis, that its debit collectors are
employees within the meaning of Section•2 (3) of the Act. 16
As to the appropriate units, the Unions contend, the Company does
not object thereto, and we find that the debit collectors employed by
the Company in its district offices in'
(1) Roanoke, Virginia
(2) Toledo, Ohio
(3) Savannah, Georgia ,
(4) Anderson, Indiana •
(5) Greenville, South Carolina
(6) Algiers and New Orleans, Louisiana
(7) Lynchburg, Virginia •
(8). Augusta, Georgia '
excluding district managers, assistant district managers, 'office and
clerical employees, and inspectors, constitute eight separate units
appropriate for' the purposes of collective bargaining and that said
units will insure to employees of the Company the full benefit of
their right to self-organization and to collective bargaining and
otherwise effectuate the policies of the Act. • •
11 The Unions submitted 76 applications for membership in an A. F of L. union and 44,
applications for membership in the Council With one exception, each application bore
the apparently genuine signature of a debit collector listed on an August, September, or
October 1941 pay roll of one of the district offices involved. The applications account for
119 of the total of 149 debit collectors at all such district offices, and for a majority of the
debit collectors at each district office. • , V
11 See cases cited, footnote 14, above.
26 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
VI. THE DETERMINATION OF REPRESENTATIVES
We find that the questions which have arisen concerning the repre-
sentation of employees of the Company can best be resolved by elec-
tions by secret ballot. We shall direct that those eligible to vote in
the elections shall be the employees in the respective appropriate
units who were employed by the Company during the respective
pay-roll periods next preceding the date of the Direction of Elections
herein, subject to the limitations and additions set forth in the
Direction.
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 Life Insurance Company of Virginia, Rich-
mond, Virginia, within the meaning of Section 9 (c) and Section
2 (6) and (7) of the Act. -
2. The Company's debit collectors are employees, within the mean-
ing of Section 2 (3) of the Act.
3. The debit collectors employed by the Company in its district
offices in
(1) Roanoke, Virginia
(2) Toledo, Ohio
(3) Savannah, Georgia
(4) Anderson, Indiana
(5) Greenville, South Carolina-
(6) Algiers and New Orleans, Louisiana
(7) Lynchburg, Virginia
(8) Augusta, Georgia
excluding district managers , assistant district managers, office and
clerical employees, and inspectors, constitute eight separate units ap-
propriate for the purposes of collective bargaining within the meaning
of Section 9 (b) of the 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 investigations authorized by the Board
to ascertain representatives for the purposes of collective bargaining
LIFE INSIU'R'ANC'E COMPANY OF VIRGINIA 27
with Life Insurance Company of Virginia, Richmond, Virginia, sepa-
rate elections by secret ballot shall be conducted as early as possible,
but not later than thirty (30) days from the date of this Direction
of Elections, as follows :
1. Under the direction and supervision of the Regional Director for
the Fifth 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
(a) The debit collectors who worked for the Company in its dis-
trict office in Roanoke, Virginia, during the pay-roll period next pre-
ceding the date of this Direction, including employees who did not
work during such pay-roll period because they were ill or on vacation
or in the active military service or training of the United States, or
temporarily laid off, but excluding district managers, assistant district
managers, office and clerical employees, and inspectors, and those em-
ployees who have since quit or been discharged for cause , to deter-
mine whether or not they desire to be represented by American Federa-
tion of Industrial & Ordinary Insurance Agents' Union No. 22857 of
Roanoke, Virginia, affiliated with the American Federation of Labor,
for the purposes of collective bargaining;
(b) The debit collectors who worked for the Company in its district
office in Lynchburg, Virginia, during the pay-roll period next preced-
ing the date of this Direction, including employees who did not work
during such pay-roll period because they were ill or on vacation or in
the active military service or training of the United States, or tempo-
rarily laid off, but excluding district managers, assistant district
managers, office and clerical employees, inspectors, and those employees
who have since quit or been discharged for cause, to determine whether
or not they desire to be represented by American Federation of Indus-
trial & Ordinary Insurance Agents' Union. No. 22947, Lynchburg,
Virginia, affiliated with the American Federation of Labor, for the
purposes of collective bargaining.
2. Under the direction and supervision of the Regional Director
for 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 the debit- collectors who worked for the
Company in its district office in Toledo, Ohio, during the pay-roll
period next 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 in the active military service or training of the
United States, or temporarily laid off, but excluding district managers,
assistant district managers, office and clerical employees , and inspectors,
and those employees who have since quit or been discharged for cause,
to determine whether or not they desire to be represented by American
28 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Federation of Industrial & Ordinary Insurance Agents' Union No.
22832, affiliated with the American Federation of Labor, for the
purposes of collective bargaining.
3. Under the direction and supervision of the Regional Director
for the Tenth 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
(a) The debit collectors who worked for the Company in its district
office in Savannah, Georgia, during the pay-roll period next 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 in
the active,military service or training of the United States, or tempo-
rarily laid off, but excluding district managers, assistant district man-
agers, office and clerical employees, and inspectors, and those employees
who have since quit or been discharged for cause, to determine whether
or not they desire to be represented by American Federation of In-
dustrial & Ordinary Insurance Agents' Union No. 22802 of Savannah,
Georgia; affiliated with the American Federation of Labor, for the
purposes of collective bargaining;
(b) The debit collectors who worked for the Company in its district
office in Greenville, South Carolina, during the pay-roll period next
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 in the active military service or training of the United
States, or temporarily laid off, but excluding district managers, assist-
ant district managers, office and clerical employees, and inspectors, and
those employees who have since quit or been discharged for cause, to
determine whether or not they desire to be represented by American
Federation of Industrial & Ordinary Insurance Agents' Union No.
22870, affiliated with the American Federation of Labor, for the
purposes of collective bargaining;
(c) The debit collectors who worked for the Company in its district
office in Augusta, Georgia, during the pay-roll period next 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 in
the active military service or training of the United States, or tempo-
rarily laid off, but excluding district managers, assistant district man-
agers, office and clerical employees, and inspectors, and those employees
who have since quit or been discharged for cause, to determine whether
or not they desire to-be represented by American Federation of Indus-
trial & Ordinary Insurance Agents' Union No. 22902, affiliated with the
American Federation of Labor, for the purposes- of collective
bargaining;
LIFE INs ANCD COMPANY OF VIRCANIA 20
4. Under the direction and supervision of the Regional Director for
the Eleventh 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 the debit collectors who worked for
the Company in its district office in Anderson, Indiana, during the
pay-roll period next 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 in the active military service of the United
States, or temporarily laid off, but excluding district managers, assist-
ant district managers, office and clerical employees, and inspectors, and
those employees who have since quit or been discharged for cause, to
determine whether or not they desire to be represented by American
Federation of Industrial & Ordinary Insurance Agents' Union No.
22872, affiliated with the American Federation of Labor, for the
purposes of collective bargaining;
5. Under the direction and supervision of the Regional Director for
the Fifteenth 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 the debit collectors who worked for
the Company in its district office in Algiers and New Orleans, Louisi-
ana, during the pay-roll period next preceding the date of this Direc-
tion, including employees who did not work during such pay-roll
period because they were ill or on vacation or in the active military
service or training of the United States, or temporarily laid off, but
excluding district managers, assistant district managers, office and
clerical employees, and inspectors, and those employees who have since
quit or been discharged for cause, to determine whether or not they
desire to be represented by American Federation of Industrial & Ordi-
nary Insurance Agents' Union No. 22873, affiliated with the American
Federation of Labor, for the purposes of collective bargaining.