Pressed Steel Car Co., Inc.

National Labor Relations Board - Board Decisions

Jun 23, 1938

7 N.L.R.B. 1099 (N.L.R.B. 1938)

In the Matter of PRESSED STEEL CAR COMPANY, INC. and STEEL
WORKERS ORGANIZING COMMITTEE
Case No. R-702.-Decided June 23, 1938
Railroad , Mine, and Industrial Car Manufacturing Industry-Investigation
of Representatives : controversy concerning representation of employees : con-
troversy concerning appropriate unit ; rival organizations ; refusal of employer
to recognize union as exclusive bargaining representative-Contract : agreement
between employer and uni--,n, applicable only to members of the contracting
union , no bar to investigation and certification-Unit Appropriate for Collective
Bargaining : production and maintenance employees , exclusive of clerical work-
ers, supervisory officials , salaried employees , watchmen , timekeepers, gang
leaders, and inspectors ; nature of duties-Election Ordered
Mr. Henry Shore, for the Board.
Bostwick, Reed cC Armlastronq, by Mr. Earl F. Reed and Mr. C. M.
Thorpe, of Pittsburgh, Pa., for the Colllpally.
Mr. Benjamin C. Sigal, of Pittsburgh, Pa., for the S. W. O. C.
Mr. J. I. Winslow and Mr. W. D. Pinkerton, of Pittsburgh, Pa.,
for the Car and Foundry Workers.
Mr. D. R. Dimiek, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On December 23, 1937, the Steel Workers Organizing Committee,
herein called the S. W. O. C.,' filed with the Regional Director for
the Sixth Region (Pittsburgh, Pennsylvania) a petition alleging
that a question affecting commerce had arisen concerning the repre-
sentation of employees of Pressed Steel Car Company, Inc., McKees
Rocks, Pennsylvania, herein called the Company, and requesting an
investigation and certification of representatives, pursuant to Sec-
tion 9 (c) of the National Labor Relations Act, 49 ' Stat. 449, herein
called the Act. On March 23, 1938, the National Labor Relations
'It appears from the record that the proceedings were initiated by Steel Workers
Organizing Committee for and in behalf of the Amalgamated Association of Iron, Steel
and Tin Workers of North America, Lodge No. 1844.
1099
1100 NATIONAL LABOR RELATIONS BOARD
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 on due notice.
On March 29, 1938, the Regional Director issued a notice of hear-
ing, copies of which were duly served upon the Company, upon the
S. W. O. C., and upon the Car and Foundry Workers Union, In-
corporated, herein called the Car and Foundry Workers, a labor
organization claiming to represent employees directly affected by the
investigation. Pursuant to the notice, a hearing was held on April
7 and 8, 1938, at Pittsburgh, Pennsylvania, before Hugh C.
McCarthy, the Trial Examiner duly designated by the Board. -
The Board, the Company, the S. W. O. C., and the Car and
Foundry Workers were represented by counsel and participated in
the hearing. Full opportunity to be heard, to examine and cross-
examine witnesses, and to introduce evidence bearing on the issues
was afforded all parties. During the course of the hearing the Trial
Examiner made several rulings on motions and 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 aflirtned.
Upon the entire, record in the case, the Board makes the follow-
ing :
FINDINGS OF FACT
1. THE BUSINESS OF THE COMPANY 2
Pressed Steel Car Company, Inc., is a Pennsylvania corporation
engaged in the business of manufacturing and assembling railroad
passenger cars, railroad freight cars, air dump cars, mine cars and
equipment, and industrial cars and equipment. The Company has
a number of subsidiaries located in the United States and foreign
countries. The Company operates two plants, situated in McKees
Rocks, Pennsylvania, and Hegewisch, Illinois. We are here con-
cerned only with the Company's McKees Rocks plant.
The Company purchases approximately 41 per cent of the raw
materials used at the McKees Rocks plant from States other than the
State of Pennsylvania. The export sales from the McKees Rocks
plant amounted to $214;383.90 for the year 1937. The total produc-
tion of the Company at its McKees Rocks plant, which is shipped
outside of the State of Pennsylvania, is 78.8 per cent.
On April 6, 1938, the Company had in its employ at the plant in
question 572 production employees.
2 The facts set forth in this section are taken from Board Exhibit No. 2, a stipulation
entered into by the attorneys for the Company and by the attorney for the Board.
DECISIONS AND ORDERS
II. THE ORGANIZATIONS INVOLVED
1101
Steel Workers Organizing Committee is a labor organization affili-
ated with the Committee for Industrial Organization. The Amal-
gamated Association of Iron, Steel and Tin Workers of North Amer-
ica, Lodge No. 1844, represented by the S. W. O. C. in this case,
is a labor organization affiliated with the Committee for Industrial
Organization, admitting to its membership all production and main-
tenance employees at the McKees Rocks plant of the Company, ex-
cluding foremen, supervisors, assistant supervisors, watchmen, clerks,
timekeepers, salaried employees, gang leaders, and inspectors.
The Car and Foundry Workers Union, Incorporated, is an un-
affiliated labor organization admitting to its membership all
employees of the Company at its McKees Rocks plant, excluding
foremen, general supervisory employees, special police, clerks, and
watchmen.
III. THE QUESTION CONCERNING REPRESENTATION
On April 2, 1937, the Company and Car and Foundry Workers,
entered into an agreement covering wages, hours, and conditions of
employment of those employees of the Company at its McKees Rocks
plant, and all of its subsidiary plants, who were at that time or who
might thereafter become members of the Car and Foundry Workers.
By its terms the agreement was to remain in effect until March 31,
1938, and thereafter from year to year unless either party to the
agreement gave written notice of its desire to terminate it at least
sixty (60) days prior to March 31 of any year. This agreement was
executed about the time the S. W. O. C. began its organizational
activities in the plant.
On June 23, 1937, the S. W. O. C. wrote a letter to H. J. Rushton,
general works manager for the Company, stating that the Company's
employees had chosen the S. W. O. C. as their collective bargaining
agency. On June 28, 1937, Rushton replied to the letter of the
S. W. O. C., stating that the Company's relations with its employees
were governed by a contract between the Company and the Car and
Foundry Workers. Thereafter, on February 1, 1938, the S. W. O. C.
wrote a letter to the Company alleging that a majority of the Com-
pany's employees were members of the Amalgamated Association of
Iron, Steel and Tin Workers of North America, Lodge No. 1844,
herein called the Amalgamated, functioning under the direction of the
S. W. O. C. and further stating that a petition for investigation and
certification had been filed on December 22, 1937, with the Regional
Director for the National Labor Relations Board. The letter stated
that the S. W. O. C. wished to negotiate a contract with the Com-
pany which would supersede the agreement between the Company
1102 NATIONAL LABOR RELATIONS BOARD
and the Car and Foundry Workers, which was to expire on March
31, 1938. On February 7, 1938, the Company by letter replied, say-
ing that it had a contract with the Car and Foundry Workers which
continued in force until March 31, 1939, by virtue of the automatic
renewal provision. It was further stated by the Company that it
was of the opinion that the Car and Foundry Workers represented a
majority of the Company's employees and that the Company could
not have another contract in existence unless it was exactly similar
to the existing contract. The Company's letter of February 7, 1938,
was answered by the S. W. O. C. on February 14, 1938, in which the
S. W. O. C. took the position that the purpose of its letter of Feb-
ruary 1, 1938, had been to notify the Company officially that a major-
ity of the Company's employees were members of the Amalgamated
and that in view of the notice sent to the Company by the S. W. O. C.
there could be no automatic renewal of the existing agreement.
The Car and Foundry Workers contended at the hearing that a
majority of the Company's employees at its McNees Rocks plant
were members of its organization and that its agreement with the
Company was automatically renewed on March 31, 1938, inasmuch as
neither party to the agreement gave notice of its intention to termi-
nate the agreement. However, in view of the facts above set forth,
and since the agreement is applicable only to members of the Car and
Foundry Workers, the agreement is no bar to any investigation and
certification of representatives by the Board.
We find that a question has arisen concerning representation of
employees of the Company.
IV. TILE 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 Company, the S. W. O. C., and the Car and Foundry Workers
during the hearing were in substantial agreement as to the classes of
employees to be included within the appropriate unit for the pur-
poses of collective bargaining. The parties agreed that the unit
should include all production and maintenance employees of the
Company at its McNees Rocks plant, exclusive of the clerical work-
DECISIONS AND ORDERS 1103
ers, supervisory officials , salaried employees, watchmen, and time-
keepers. The Car and Foundry Workers and the Company claimed
that the unit should also include gang leaders and inspectors. The
S. W. 0. C. wished to exclude gang leaders and inspectors from the
unit.
Inspectors examine the materials the employees are working upon
to see if the specifications and workmanship are in accordance with
the orders . If there are mistakes , they- advise the foreman so that
the errors can be rectified . The inspector 's duties are not confined to
anp single department in the plant. Apparently they have nothing
to do with the production employees and are not actively engaged
in the process of production. Gang leaders make recommendations
for transferring, hiring, and discharging employees and act as in-
termediaries, transmitting orders from foremen to the workers in the
gang. Where the nature of the duties of the inspectors and gang
leaders is such as here presented , we are of the opinion that they
should be excluded from the unit if a labor organization party to the
proceedings desires such exclusion. The inspectors and gang leaders
will therefore be excluded in the instant case.
We find that the production and maintenance employees of the
Company at its McKees Rocks plant , exclusive of clerical workers,
supervisory officials, salaried employees, watchmen, timekeepers, gang
leaders, and inspectors, constitute a unit appropriate for the pur-
poses of collective bargaining and that said unit will insure to the
employees of the Company at its McKees Rocks plant 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
Neither the Car and Foundry Workers nor the S: W: 0. C. pro-
duced any proof at the hearing to show how many of the Company's
employees at its McKees Rocks plant it represented , although both
claimed to represent a majority. Accordingly, we find that an elec-
tion by secret ballot is necessary to resolve the question concerning
representation.
The S. W. 0. C. states that the Company' s pay roll of June 30,
1937, is most representative of normal employment by the Com-
pany and urges that eligibility to vote in the election be determined
on the basis of that pay roll. The Company and, the Car and
Foundry Workers contend that the selection of any eligibility date
prior to March 31, 1938, would constitute an interference with their
agreement made on April 2, 1937.
The number of employees in the employ of the. Company at its
McKees Rocks plant varies considerably during the course of the
1104 NATIONAL LABOR RELATIONS BOARD
year. During December, the month when the petition for investiga-
tion and certification was filed, only 423 shop employees were em-
ployed by the Company. On June 30 of the same year, 1,364 shop
,employees were on the Company's pay roll. On April 7, 1937, at the
time of the hearing, there were approximately 572 production em-
ployees in the Company's McKees Rocks plant.
We are of the opinion that eligibility to vote should not be based
,on a pay-roll date as far in the past as that sought by the S. W. O. C.
Nor, in view of the facts set forth in Section III above, do we find
merit in the contention of the Company and the Car and Foundry
Workers that the agreement precludes the adoption of an eligibility
date prior to March 31, 1938.
However, in view of all the circumstances and in order to best
effective the policies of the Act, we feel that all employees embraced
in the bargaining unit herein defined whose names appear on the pay
roll next preceding April 7, 1938, the date of the hearing, should
be eligible to vote and we shall so direct.
Upon the basis of the above findings of fact and upon the entire
iecord 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 Pressed Steel Car Company, Inc., at its
McKees Rocks, Pennsylvania, plant, within the meaning of Section
9 (c) and Section 2 (6) and (7) of the National Labor Relations Act.
2. The production and maintenance employees of Pressed Steel Car
Company, Inc., at its McKees Rocks plant, excluding clerical work-
ers, supervisory officials, salaried employees, watchmen, timekeepers,
gang leaders, and inspectors, constitute a unit appropriate for the
purposes of collective bargaining within the meaning of Section 9 (b)
-of the National Labor Relations Act.
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, 49 Stat . 449, and pursuant to Article III, Section.8,
,of National Labor Relations Board Rules and Regulations-Series
1, as amended , it is hereby
DIRECTED that, as part of the investigation authorized by the
Board to ascertain representatives for the purposes of collective bar-
gaining with Pressed Steel Car Company , Inc., at its McKees Rocks
plant, McKees Rocks, Pennsylvania , an election by secret ballot
shall be conducted within fifteen (15) days from the date of this
DECISIONS AND ORDERS 1105
Direction, under the direction and supervision of the Regional Di-
rector for the Sixth Region, acting in this matter as agent for the Na-
tional Labor Relations Board, and subject to Article III, Section 9, of
said Rules and Regulations, among the production and maintenance
employees of said Company at its McNees Rocks plant, who were in
the employ of the Company during the pay-roll period next pre-
ceding April 7, 1938, excluding clerical workers, supervisory officials,
salaried employees, watchmen, timekeepers, gang leaders, and in-
spectors, and excluding those who have since quit or been discharged
for cause, to determine whether they desire to be represented by
Car and Foundry Workers Union, Incorporated, or by Steel Workers
Organizing Committee for and in behalf of the Amalgamated As-
sociation of Iron, Steel and Tin Workers of North America, Lodge
No. 1844, affiliated with the Committee for Industrial Organization,
for the purposes of collective bargaining, or by neither.