Nestle's Milk Products, Inc.

National Labor Relations Board - Board Decisions

Jun 1, 1944

56 N.L.R.B. 1160 (N.L.R.B. 1944)

In the Matter of NESTLES MILK PRODUCTS , INC. and UNITED DAIRY
WORKERS LOCAL 83, C. I. O. -
Case No. 7-R-1677.-Decided June 1, 1941
Mr. R. G. Writer, of Burlington, Wis., and Mr. W. L. Mann, of Cass
City, Mich., for the Company. -
Mr. Nicholas J. Rothe, of Detroit, Mich., and Mr.' Russell L. Ballard,
of Detroit, Mich., for the Dairy Workers.
Messrs. Padway and Goldberg, by Mr. I. E. Goldberg, of Milwaukee,
Wis., and Mr. G. N. Mcllvain, of Saginaw, Mich., for the Teamsters.
Mrs. Margaret L. Fassig, of counsel to -the Board.
DECISION
AND -
DIRECTION OF ELECTION
STATEMENT OF THE CASE
Upon an, amended petition, duly filed by the United Dairy Workers
Local 83, C. I. O., hereii called the Dairy Workers, alleging that a
question affecting commerce had arisen concerning the representation
of employees of Nestle's Milk Products, Inc.,, at Cass City, Michigan,
herein called the Company, the National Labor Relations Board pro-
vided for an appropriate hearing upon due notice before Robert,J.
Wiener, Trial Examiner. Said hearing was held at Detroit, Michi-
gan, on March 22, 1944, and a continued hearing was held at Cass City,
Michigan, on -April 26, 1944.' The Company, the Dairy Workers and
the-International Brotherhood of Teamsters, Chauffeurs, Warehouse-
men & Helpers, Local Union No. 486, A. F. L.,1 herein called the Team-
sters, appeared and participated. All parties were afforded full op-
portunity to be heard, to examine and cross-examine witnesses, and
to introduce evidence bearing on the issues. 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 and the Teamsters filed a brief which has been
duly considered by the Board.
Upon the entire record in the case, the Board makes the following :
' Its motion to intervene was granted at the hearing.
56 N. L . R. B., No. 204. '
11 60 ,
NESTLE'S MILK, PRODUCTS, INC. -1161
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY
Nestle's Milk Products, Inc., which is a New York corporation and a
wholly owned subsidiary of Unilac, Inc., a Panama corporation; owns
and operates milk processing plants in various States of the United
States. The only plant involved in the present proceeding is its plant
located at Cass City, Michigan, which is engaged in the business of
converting milk into condensed form. -,
The principal- raw material used at the Company's Cass City plant
is milk. During the year 1943 the Company purchased, at its Cass
City plant raw materials valued at approximately $300,000 and over
two-thirds of such raw materials was purchased outside the State of
Michigan. Also during the year 1943 the total sales of the Cass City
plant exceeded $1,500,000 in value, and over 99 percent of the finished
products during that year was shipped to points outside the, State of
Michigan. - - -
We find that the Company is engaged in commerce within the mean-
ing of the National Labor Relations Act. -
H. THE ORGANIZATIONS INVOLVED
United-Dairy Workers Local 83, affiliated with the Congress of In-
dustrial Organizations, is a labor organization admitting to member-
ship employees of the Company.
International Brotherhood of Teamsters, `Chauffeurs, Warehouse-
men and Helpers, Local Union No. 486, affiliated with the American
Federation of Labor, is a labor organization admitting to membership
employees of the Company. - -
III. THE QUESTION CONCERNING REPRESENTATION
The Company has refused to grant recognition to the Dairy Work-
ers as the exclusive bargaining representative of its employees at Cass
City, Michigan; until the Dairy Workers has. been certified by the
Board in an appropriate unit.
On January 1, 1943, the Company and the Teamsters signed a closed-
shop contract, which by its terms became effective on January 1, 1943,
and was to continue in effect until December 31, 1943, and from year to
year thereafter,'unless written notice were given by either party thirty
(30) days prior to the annual date of expiration. On November 19,
1943; the Teamsters wrote the Company as follows :
Kindly, accept this communication as official notice of our desire
to negotiate certain changes and modifications in the present con 2
tract signed by. your company and,our Local Union.
1162 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
This agreement will expire December 31, 1943, and we desire to
have the provisions of this new agreement become effective on
January 1, 1944.
The Company replied by letter dated November 26, 1943, indicating,its
willingness to negotiate and suggesting an early conference. How-
ever, before negotiations for a new contract were entered into, 40 of
the Company's 43 employees by a communication date t December 14,
1943, notified the Company that they had resigned from,the Teamsters
and instructed the Company to deduct no more dues from their wages
in favor of the Teamsters.2 Upon being'advised of this occurrence,
the Teamsters' representative stated to the Company that its contract
was "still in existence." On December 22, 1943, the Dairy Workers
wrote `the Company, notifying it that. more than' 90 percent of the
Company's employees had signified their, desire to become members
of that organization, and requested recognition and a meeting for the
purpose of negotiating a contract. In response to this letter the Com-
pa'ny telephoned the Dairy Workers' representative and asked him to
petition ,the National Labor 'Relations Board 'for a determination of
bargaining representatives. The 'Dairy Workers filed, its original
petition with the Board on January 3, 1944. No new contract was
negotiated between the Company and the Teamsters.
The Teamsters asserts that its letter of,November 19, 1943, did not
terminate its contract and that such' contract was automatically re-
newed on December 1, 1943,-and hence constitutes a bar to ,the present
proceedings.' The Company takes no position but, wishes the Board
to determine with which labor organization it can properly" negotiate
a contract.
We find no merit in the Teamsters'-contention; for we think it is clear
that the letter quoted above was a notice to terminate the contract,
and prevented the automatic renewal provision of that contract from
taking effect.3 Therefore, we find that the Teamsters' contract is not
a bar.to a present determination of representatives.
A statement of a Board agent, introduced into evidence-at the hear-
ing, indicates that the Dairy Workers represents a substantial' number
of employees -in the unit hereinafter found appropriate .4
2 The C. I. 0 attempted at -the hearing to show that sometime in November 1943, the
I employees gave notice to.the Company that they no longer wished to be represented by the
Teamsters . In view of our conclusion as set forth herein , the time of such notice by the
employees to the Company is immaterial
See Matter of Anaconda Wire d Cable Co., 52 N L R B 1028.
The Regional Duector reported that the hairy Workers had submitted 39 authorization
cards, all of which bore apparently genuine oiigmar signatures ; that the names of 38
persons appearing on the cards were listed on the Company's pay roll of January 19, 1944,
which contained the names of 43' employees in the appiopriate unit ;, and that the cards
were dated as follows : 17`in December 1943 and 21 undated
The Teamsters did not introduce any evidence of representation , but relied upon its con-
tiact of January 1, 1943, to show its interest in this proceeding:
NESTLE'S , MILK PRODUCTS , INC. 1163
We find that a question affecting commerce has arisen concerning
the representation of employees of the Company, within the meaning
of Section 9 (c) and Section 2 (6) and (7), of the Act.
IV. THE APPROPRIATE UNIT
We find in substantial accordance with a stipulation of the parties
that all production and maintenance employees of the Company at
its Cass City, Michigan, plant, including the night watchman, but
excluding clerical employees, field-men, and all 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
bargaining within'the meaning of Section 9 (b) of the Act .5
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-
roll period immediately preceding the date of the Direction of
Election herein, subject to the limitations and additions set forth in
the Direction.,
DIRECTION OF, ELECTION
I
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 '9, of National Labor
Relations Board Rules and Regulations-Series 3, it is hereby
DIRECTED that, as part of the investigation to ascertain representa-
tive's for the purposes of collective bargaining with Nestle's, Milk
Products, Inc., at Cass City, Michigan, an election by secret ballot
shall be, conducted as early as possible, but not later than thirty (30)'
days from the date of this Direction, under the direction and super-
vision 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 Regula-
tions, 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 temporarily laid -off, and including employees in the
armed forces of the United States who present themselves in person'
' This is substantially in accord with the unit covered by the Teamste'is' contract.
1164 DECISIONS. OF NATIONAL LABOR RELATIONS BOARD
at the polls, but excluding those employees 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 they desire to
be represented by United Dairy Workers Local 83, affiliated with
the C. I. 0., or by International Brotherhood of Teamsters,
Chauffeurs, Warehousemen and Helpers;- Local Union' No. 486,
affiliated with the A. F. of L., for the purposes of collective bar-
gaining, or by neither.
Mn. GERARD D. REILLY took no part in the consideration of the
above Decision and Direction of Election.
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