Pacific Box Co.

National Labor Relations Board - Board Decisions

Jun 17, 1943

50 N.L.R.B. 720 (N.L.R.B. 1943)

In the Matter of PACIFIC Box COMPANY and Box MAKERS, NovELTY
AND SPECIALTY WOODWORKERS LOCAL No. 3036 , A. F. L.
Case No. R-5294.-Decided June 17, 1943
Mr. Gerald P. Leicht, of San Francisco, Calif., for the Board.,
Thomas, Beedy & Paramore, by Messrs. Louis S. Reedy, and-Mark ,
Coleman, both of San Francisco, Calif., for the Company. `
Messrs. Clarence E. Todd and John. F. Reeves, both of San Fran-
cisco, Calif., for the Box Makers.
Gladstein, Grossman, Margolis & Sawyer, by Mr. Aubrey Gross-
man, of San Francisco, Calif., and Mr. Joe Lynch, of-San Francisco,
Calif., for the Warehousemen.
. Mr. David V. Easton, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
Upon petition duly. filed by Box Makers, Novelty and Specialty
Woodworkers Local No. 3036, A. F. L., herein called the Box Makers,
alleging that a question affecting commerce had arisen concerning
the representation of employees of Pacific Box Company, Oakland,
California, herein called the Company, the National Labor Relations
Board provided for an appropriate hearing upon due notice before
Charles E. Persons, Trial Examiner. Said hearing was held at San
Francisco, California, on April 30 and May 1, 1943. The Company,
the 'Box Makers, and International Longshoremen's and Warehouse-,
men's Union, Local 6, C. I. 0., herein called the Warehousemen,
appeared, participated, and were afforded full opportunity 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.
The Box Makers and the Warehousemen each filed briefs which have'
been considered by the Board.
,50 N. L. R. B., Na. 100.
720
PACIFIC BOX COMPANY 721
Upon the entire record in the case,' the Board makes the following:
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY
Pacific Box Company, a California corporation with its principal
office, and place of business in San Francisco, California, is engaged
in the manufacture, distribution, and sale of shook and wooden
boxes. For these purposes the Company operates two plants located
in Oakland and San Francisco, California. All the manufacturing
operations and about 5 percent of the assembly operations are per-
formed at the Oakland plant; the balance of the assembly operations
is performed at the San Francisco plant. During the period between
April 1, 1942, and March 31, 1943, the Company purchased' approxi-
mately. $300,000 worth of raw materials, of which about 10 percent was
shipped to its plants from points outside the State of California.
Within the same period the Company manufactured.finished products
valued at approximately $620,000, of which about 12 percent was
shipped by it to points outside the State of California. Almost the
entire balance of its finished products was sold to the United States
Army and Navy and shipped to points designated by them. The
Company admits that it is engaged in 'commerce within the meaning
of the National Labor Relations Act.
H. THE ORGANIZATIONS INVOLVED
Box Makers, Novelty and Specialty Woodworkers Local No. 3036 is
a labor organization affiliated with the American Federation of Labor,
admitting to membership employees of the Company.
International Longshoremen's and Warehousemen's Union, Local
6, is a labor organization affiliated with the Congress of Industrial
Organizations, admitting to membership employees of the Company.
III. THE QUESTION CONCERNING REPRESENTATION
On June 16, 1941, the Company and the Warehousemen executed a
contract effective until May 31, 1943, which provided for the recogni-
tion of the Warehousemen as the exclusive bargaining agent of the
Company's employees, the preferential hiring of members of the
1 The record in the instant proceeding was held open for 1 week for the purpose of re-
ceiving Intervenor's Exhibit 4J, which consists of the judgment, findings of fact, and con-
clusions of law of the Superior Court of the State of California in Maguire v. Pacific Box
Co., Case No . 312229, filed May 24, 1943 . The exhibit was not filed with the Board within
the period provided, but was received on or about May 29, 1943. We shall accept said ex-
hibit, as well as the offer of supplemental evidence made by the Box Makers and docketed
with the Board on June 3, 1943 Said offer will be received in evidence as Petitioner's
Exhibit 3.
722 DEICUSLIO IS OF NAiTIONALL LABOR REiLATIONS, BOARD
Warehousemen, and a 'modified union shop.' At the time of execu-
tion of the contract the Company operated only one plant, which was
situated in San Francisco. About the. middle of 1942 the Company
was forced-to vacate its original premises and to seek other quarters
due to the fact that the United, States Army had'taken over its former
site. By the latter part of June 1942 it had purchased and placed in
operation two new plants, located in Oakland and in San Francisco,
which divided the work that had been previously performed at its
original plant. The contract was put into effect at the new San
Francisco plant. However, when the Company place its Oakland
plant in, operation, it retained the personnel of the company from
whom it purchased the plant. These employees had been operating
tinder a contract with the Company's predecessor and all were mem-
bers of the Box Makers.
In accordance with a provision of the Company's contract with the
Warehousemen which recites that the agreement may be reopened
by either party upon 30 days' notice prior to May 31, 1943, the Ware-
housemen, on April 15, notified the Company of its intention to
reopen. Based upon this notice, the Warehousemen contends that the
contract continues in effect for a reasonable period, which it interprets
to mean 1 year; thus, according to the contention of the Wtirehouse-
men, the contract expires on May 31, 1944, and constitutes a bar to
the iiistant proceedings.3 We do not agree with this contention. The
Box Makers filed-the petition in this proceeding on February 10, 1943,
well in advance of the notice given by the Warehousemen. The
petition alleges that on or about June 22, 1942, and upon several
subsequent occasions, the Box Makers had requested recognition
from the-Company, which was refused; and that the Company took
the position that it would refuse to recognize any labor organization
until the bargaining agent had been determined. In view of the
foregoing, we find that the contract of June 16, 1941, and any renewal
thereof, does not constitute a bar to a present determination of repre-
sentatives.
A statement of the Regional Director introduced into evidence at
the 'hearing indicates that the Box Makers represents a substantial
number of employees in the unit it claims to be appropriate.'
We find that a, question affecting commerce has arisen concerning
2The contract recited that ". . the Company may hire from outside sources; pro-
sided such woikms make application for membership in the [ warehousemen] . within
flinty (30) days;'
' This contention was raised by the Warehousemen in its brief.
4 The Regional Director reported that the Box Makers submitted 53 application cards
bearing apparently genuine original signatures , of which 51 bore the names of persons
appearing upon the Company's pay roll of February 15, 1943. This pay roll contained 73
names.
The Warehousemen relies upon the contract of June 16 , 1941 , to establish its interest.
PAC11IC BOX COMPANY .723
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; THE DETERMINATION OF REPRESENTATIVES
The Box Makers seeks a unit consisting of all production and mainte-
nance employees at the Company's Oakland plant, excluding confi-
dential, clerical, and supervisory employees, as well as truck drivers
and lumber handlers. The Warehousemen agrees that the classifica-
tions included within the unit sought by the Box Makers are appro
priate, but contends that the unit should include all such employees
of the Company at all of its plants. This contention is based upon
the fact that the contract of Jane 16, 1941, covered all employees of
the Company, and is supported by a judgment of the Superior Court
of California 5 granting the Warehousemen specific performance of the
contract dated June 16, 1941, as amended by agreement on or about
August 24, 1942. However, such a decision does not act as a bar to
our determination of the appropriate unit.
As hereinbefore indicated, when the Company was forced to vacate
its original site it split up its operations between its new plants at
Oakland and San Francisco. The contract between the Warehouse-
men and the Company was put into effect without objection by either
party at the San Francisco plant, which was staffed by personnel of
the Company who had been employed at the original plant. However,
the Oakland plant is staffed by the employees of the former owner of
the plant, who were retained by the Company. , The record discloses
that the Company requested the Warehousemen on several occasions
to send over sufficient personnel to operate the Oakland plant, but
that the Warehousemen. and its members refused to work at Oakland
unless they were assured that the contract would be enforced there: The
Company refused to commit itself with regard to this condition, and,
as a result , most of the laid-off San Francisco plant employees did not
report to the Oakland plant. A - large number of the present em-
ployees at the Oakland plant are not members of'the Warehousemen.
The two plants together carry on the operations formerly per-
formed at the Company's original San Francisco plant. The as-
sembly plant at San Francisco is dependent upon the Oakland plant
for shook, and could not continue to operate if this supply failed. The
administration and control of both plants is centralized, and the dis-
tance between the two is not so great as to prevent employees from liv-
ing in either Oakland or San Francisco and working at San Francisco
or Oakland. However, there has been slight interchange of employees
between the two plants.
The past bargaining history of the ,Company is represented by its
5 See footnote 1, supra.
724 DEClI1SIONS OF NA ONAL LABOR RELATIONS BOARD
contract with the Warehousemen covering all its employees ; however,
the Oakland plant employees have been represented by the Box Makers
as an independent unit under a contract with the former owner of the
plant. We are of the opinion that the employees at the two plants
could function either as separate bargaining units or as a single bar-
gaining unit . We do not decide whether the contract was applicable
to both plants . Even assuming that it was , it is clear that by reason
of the separation of operations conditions have materially changed
since the contract was executed . Thus the contract is not determina-
' tive of the unit. In view of the absence of any question concerning
representation among the employees in the San Francisco plant, we
shall direct an election only among the production and maintenance
workers at the Oakland plant wherein a question concerning repre-
sentation has arisen . If the employees in this voting group select the
Warehousemen , they ' will have thereby indicated their desire to be
included in a unit with the employees of the San Francisco plant, and
will be part of such unit. If, however , these employees choose the Box
Makers as their bargaining representative , they shall continue to con-
stitute a separate and distinct unit.
The Warehousemen contends that inasmuch as the Company did not
comply with the contract of June 16, 1941, it was prevented from
staffing the Oakland plant with its members , and, as'a result , its repre-
sentational status has suffered; therefore it claims that if an election
is directed , former employees of the original plant who would have
been willing to work at Oakland if the contract had been applied
there, should be- eligible to vote: We do not agree with , this conten-
tion. The separation of operations was made pursuant to conditions
over which the Company had no control , and it does not ` appear that
the Company engaged in any unfair labor practice in connection with
the opening of the Oakland plant.6 The record shows that the laid-
off San Francisco .employees were offered employment at Oakland, but
except for a very few , all refused . ' We find that former employees who
refused employment at Oakland are not entitled to vote. We shall,
accordingly , direct that the question concerning representation which
has •arisen 'be resolved by an election by secret ballot among the pro-
duction and maintenance employees of the Oakland plant of the Com-
pany, excluding confidential, clerical , and supervisory employees, truck
drivers, and lumber handlers , 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.
8 The Warehousemen filed charges alleging the commission of unfair labor practices,
which the Regional Director dismissed . The Board , upon appeal by the Warehousemen,
sustained the action of the Regional Director (Case No. 20-C-1180). Thereafter the
Warehousemen filed further charges, with respect to which the Regional Director refused
to issue a complaint (20-C-1193). .
PACIFIC BOX COMPANY 725
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 Relations
Board Rules and Regulations-Series 2, as amended, it, is hereby
DIRECTED that, as part of the investigation to ascertain representa-
tives.for the purposes of collective bargaining with Pacific Box Coni-
pany; Oakland, California, 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 supervision of the
Regional Director for the Twentieth Region, acting in this matter as
agent-for the'-National Labor Relations Board, and subject to Article
III7 Section 10, of said Rules and Regulations,, among the production
and maintenance employees of the Oakland plant of the Company who
were employed during the pay-roll period immediately preceding the
date of this Direction, including employees who did not work during
said pay-roll period because they were ill or on vacation or temporarily
laid off, and including employees in the armed foices of the United
States who present themselves in,person at the polls, but excluding
confidential,, clerical, and supervisory employees, truck drivers, and
lumber handlers, and any who have since quit or been discharged
for cause, to determine whether they desire to be represented by Box
Makers, Novelty and Specialty Woodworkers Local No. 3036, affiliated
with the American Federation of Labor, or by International Long-
shoremen's and Warehousemen's Union, Local 6, affiliated with the
Congress of Industrial Organizations, for the purposes of collective
bargaining, or by neither.
536105-44-vo1. 50-47
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