Pennsylvania Shipyards, Inc.

National Labor Relations Board - Board Decisions

Feb 3, 1938

5 N.L.R.B. 54 (N.L.R.B. 1938)

In the Matter of PENNSYLVANIA SHIPYARDS, INC. and LOCAL METAL
TRADES COUNCIL
Case No. R-17.-Decided February 3, 1938
Shipbuilding and Repairing Industry-Investigation of Representatives: con-
troversy concerning representation of employees : refusal of employer to recognize
and bargain with petitioning union until question of representation is determined
by Board-Unit Appropriate for Collective Bargaining : all employees , excluding
clerical and supervisory employees and watchmen ; no controversy as to-Repre-
sentatives : proof of choice : petition authorizing petitioning union to represent
signers in collective bargaining ; comparison of with employment records-Cer-
tzfication of Representatives : upon proof of majority representation.
Mr. Warren Woods, for the Board.
Mr. L. B. Coppinger, of Houston, Tex., for the Company.
Mr. Charles H. Poe, of Houston, Tex., Mr. L. G. Fenn, of Tulsa,
Okla., and Mr. J. N. Davis, of Kansas City, Kans., for the Council.
Mr. A. George Koplow, of counsel to the Board.
DECISION
AND
CERTIFICATION OF REPRESENTATIVES
STATEMENT OF THE CASE
On September 18, 1937, Local Metal Trades Council, of Beaumont,
Texas, herein called the Council, filed with the Regional Director for
the Sixteenth Region (Fort Worth, Texas) a petition alleging that a
question affecting commerce had arisen concerning the representation
of employees of Pennsylvania Shipyards, Inc., Beaumont, Texas,
herein called the Company, and requesting an investigation and cer-
tification of representatives pursuant to Section 9 (c) of the National
Labor Relations Act, 49 Stat. 449, herein called the Act. On October
12, 1937, the, National Labor Relations Board, herein called the Board,
acting pursuant to Section 9 (c) of the Act and Article III, Section 3,
of National Labor Relations Board Rules and Regulations-Series 1,
as amended, ordered an investigation and authorized the Regional
Director to conduct it and to provide for an appropriate hearing upon
due notice.
54
DECISIONS AND ORDERS 55
On October 16, 1937, the Regional Director issued a notice of hear-
ing, copies of which were duly served upon the Company and upon
the Council. Pursuant to the notice, a -hearing was held on November
4 and 5, 1937, at Beaumont, Texas, before Madison Hill, the Trial
Examiner duly designated by the Board. The Board and the Com-
pany were represented by counsel and the Council by its authorized
representatives and all participated in the hearing. Full opportunity
to be heard, to examine and to cross-examine witnesses, and to intro-
duce evidence bearing on the issues was afforded all parties. During
the course of the hearing the Trial Examiner made several rulings on
motions and on objections to the admission of evidence. The Board
has reviewed the rulings of the Trial Examiner and finds that no
prejudicial errors were committed. The rulings are hereby affirmed.
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
1. THE BUSINESS OF THE COMPANY
Pennsylvania Shipyards, Inc., is a Delaware corporation, all the
issued stock of which is owned by American Republics Corporation.
The only offices and plant of the Company are in Beaumont, Texas.
The Company is engaged in the building and repair of ships. Ship-
building comprises about 35 per cent of its business, and the repair of
ships the remaining 65 per cent. Most of its business is with oil com-
panies. The Company builds ships of several kinds, including tug-
boats, barges for drilling wells in shallow water, and tankers for service
on the Great Lakes and other places outside the State of Texas.
Among the ships it repairs are, seagoing tankers and a few foreign
ships. Ships built by the Company are documented under the laws
of the United States and are registered at the Custom House at Port
Arthur, Texas.
The gross business of the Company during 1936 amounted to $1,091,-
488.83. Of this sum $997,196.85, or approximately 91 per cent, con-
sisted of work on new and repaired vessels delivered within the State
of Texas; $94,291.98, or approximately 9 per cent, consisted of deliv-
eries made outside the State. From January 1, 1937 to October 31,
1937, the gross revenue was $1,992,376. Deliveries at the Company's
yards were in the amount of $1,891,707 constituting approximately 95
per cent of the total business, and deliveries outside the State of Texas
$100,669 or approximately 5 per cent.
The Company has its own wharves, with a small drydock and
with a marine railway to pull ships out of the water.
The materials used by the Company consist chiefly of steel plates,
shapes, valves and fittings, pipe, propellers, forgings, anchors. etc.
80535-38-5
56
NATIONAL LABOR RELATIONS BOARD
For the most part these materials come from outside the State of
Texas and are shipped to the Company's plant by common carrier.
II. THE ORGANIZATION INVOLVED
Local Metal Trades Council of Beaumont, Texas, is composed of
international unions affiliated with the American Federation of
Labor. The Council itself is a part of the Gulf Coast Metal Trades
District Council, which operates under a special charter issued by
the Metal Trades Department of the American Federation of Labor.
The various international unions, representing 11 crafts in the Com-
pany's plant, admit to membership those workers coming under their
particular jurisdictions, exclusive of supervisors, clerical help, and
watchmen.
III. THE QUESTION CONCERNING REPRESENTATION
Sometime in the month of July 1937, certain of the unions in the
Council. requested the Company to meet with union representatives
for conference and for recognition in accordance with the terms of
the Act. The Company informed the unions that the matter had
been turned over to its attorney. On July 24, 1937, the unions sent
a letter to the attorney requesting recognition as the bargaining
agents for certain groups of employees of the Company. The at-
torney replied on August 2, 1937, stating that the Company would
recognize and bargain with the accredited agents of its employees,
but that the Company could not for itself determine whether the
various crafts seeking recognition as appropriate units for collective
bargaining were in fact the proper units for such purpose. The
position of the Company has been that it will withhold recognition
until the Board determines the appropriate unit.
We find that a question has arisen concerning representation of
employees of the Company.
IV. THE EFFECT OF THE QUESTION CONCERNING REPRESENTATION UPON
COMMERCE
We find that the question concerning representation which has
arisen, occurring in connection with the operations of the Company
described in Section I above, has a close , intimate, and substantial
relation to trade, traffic , and commerce among the several States,
and tends to lead to labor disputes burdening and obstructing com-
merce and the free flow of commerce.
V. THE APPROPRIATE UNIT
The Council in its petition for investigation and certification de-
scribes 'the bargaining unit which it claims appropriate as "all em-
DECISIONS AND ORDERS 57
ployees except supervisory forces," 1 and further states that the peti-
tion is filed on behalf of "all classifications, except supervisory and
clerical forces." 1 At the hearing it was intimated by the Council's
representatives that watchmen should likewise be excluded. No fur-
ther question was raised at the hearing as to the appropriate unit, the
Company according neither preference nor opposition to any particular
group.
We find that all of the employees of the Company, excluding cler-
ical and supervisory employees and watchmen, constitute a unit appro-
priate for the purposes of collective bargaining and that said unit 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.
VI. THE DETERMINATION OF REPRESENTATIVES
The Company's pay-roll list for the period September 16 to 22, 1937,
shows 654 employees, including 20 clerical and 4 watchmen, or a total
of 630 employees exclusive of supervisory and clerical forces and
watchmen.' The Company's pay-roll list for November 3, 1937, shows
a total of 502 employees, including 26 clerical employees and watch-
men, or 476 employees exclusive of supervisory and clerical forces
and watchmen.'
The Council produced at the hearing a petition' entitled "Authori--
zation for Representation Under the National Labor Relations Act"
which contained 472 signatures and was dated September 11, 1937. At
the hearing representatives of the Company and the Council were
designated to check the signatures upon the petition against employ-
ment records of, the Company containing signatures of employees.
Out of 472 names, 446 were found to be valid signatures of employees
and 26 were found to be questionable.' In addition, union representa-
tives testified to the procurement of signatures and to the authenticity
of some of the questionable signatures. The Company did not dispute
the genuineness of these signatures nor the, findings of the committee
which checked the names.
We find that the Council has been designated and selected by a
majority of the employees in the appropriate unit as their representa-
tive for the purposes of collective bargaining. It is, therefore, the
exclusive representative of all the employees in such unit for the pur-
poses of collective bargaining, and we will so certify.
I Board Exhibit No. 2.
2 Union Exhibit No 6.
2 Union Exhibit No 7.
4 Union Exhibit No. 1
5 Union Exhibit No 4
58 NATIONAL LABOR RELATIONS BOARD
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. A question affecting commerce has arisen concerning the repre-
sentation of employees of Pennsylvania Shipyards, Inc., Beaumont,
Texas, within the meaning of Section 9 (c) and Section 2 (6) and
(7) of the National Labor Relations Act.
2. All of the employees of the Company, excluding clerical and
supervisory employees and watchmen, constitute a unit appropriate
for the purposes of collective bargaining, within the meaning of
Section 9 (b) of the National Labor Relations Act.
3. Local Metal Trades Council of Beaumont, Texas, is the exclusive
representative of all the employees in such unit for the purposes of
collective bargaining, within the meaning of Section 9 (a) of the
National Labor Relations Act.
CERTIFICATION OF REPRESENTATIVES
By virtue of and pursuant to the power vested in the Nationa
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 1, as amended,
IT IS HEREBY CERTIFIED that Local Metal Trades Council, of Beau-
mont, Texas, has been designated and selected by a majority of the
employees of Pennsylvania Shipyards, Inc., Beaumont, Texas, ex-
cluding clerical and supervisory employees and watchmen, as their
representative for the purposes of collective bargaining and that
pursuant to the provisions of Section 9 (a) of the Act, Local Metal
Trades Council, of Beaumont, Texas, is the exclusive representative
of all such employees for the purposes of collective bargaining in
respect to rates of pay, wages, hours of employment, and other
conditions of employment.