Samson Tire and Rubber Corp.

National Labor Relations Board - Board Decisions

Aug 3, 1936

2 N.L.R.B. 148 (N.L.R.B. 1936)

In the Matter of SAMSON TIRE AND RUBBER CORPORATION and UNITED
RUBBER WORKERS OF AMERICA, LOCAL No. 44
1 Case N. R-34
Rubber Industry=Election Ordered: controversy concerning , representation
of employees-refusal by employer to recognize ' union as exclusive representa-
tive ; request by substantial number in appropriate unit ; rival organizations-
question affecting commerce : confusion and unrest among employees ; strike
threatened-Unit Appropriate for Collective Bargaining: production em-
ployees-Certification of Representatives.
Mr. Leonard S. Janofsky for the Board.
Finlayson, Bennett & Morrow, by Mr. Frank G. Finlayson and
Mr. Hubert I. Morrow, and Mr. E. S. Williams, all of Los Angeles,
Cal., for the Company.
Mr. G. B. Roberts, of Akron, Ohio, for the Union.
Mr. Joseph Rosenfarb, of counsel to the Board.
DIRECTION OF ELECTION
August 3, 1936
The National Labor Relations Board, having found that a ques-
tion affecting commerce has arisen concerning the representation of
the production employees, exclusive of office help, watchmen, medical
staff, supervisors, foremen and other executives, of the Samson Tire
and Rubber Corporation, Los Angeles, California, and that said em-
ployees constitute a unit appropriate for the purposes of collective
bargaining within the meaning of Section 9 (b) of the National
Labor Relations Act, and acting pursuant to the power vested in the
National Labor Relations Board by Section 9 (c) of said Act, and
pursuant to Article III, Section 8 of National Labor Relations Board
Rules and Regulations-Series 1, as amended, hereby
DIRECTS that as part of the investigation authorized by the Board
to ascertain representatives for the purposes of collective bargain-
ing with the Samson Tire and Rubber Corporation, an election by
secret ballot shall be conducted within a period of twenty (20) days
after the date of this Direction of Election, under the direction and
supervision of the Acting Regional Director for the Twenty First
Region, acting in this matter as the agent of the National Labor Ie-
lations Board and subject to Article III, Section 9 of said Rules
148 1; , ,
DECISIONS AND ORDERS 149
and Regulations-Series 1, as amended, among the production em-
ployees, exclusive of office help, watchmen, medical staff, supervisors,
foremen and other executives, of the Samson Tire and Rubber Cor-
poration, on the payroll as of the date of this Direction of Election,
to determine whether they desire to be represented by United Rubber
Workers of America, Local No. 44, or by the Factory. Council.
MR. EDWIN S. SMITH took no part in the consideration of the above
Direction of Election.
[SAME TITLE
DECISION
AND
CERTIFICATION OF REPRESENTATIVES
Septe'irnber 10, 1936
STATEMENT OF CASE
On December 11,1935, United Rubber Workers of America, Local
-No. 44,' hereinafter called the Union, filed,with the Regional Director-
for the Twenty First Region a petition for investigation and certifi-
cation of representatives of the' production employees, exclusive of
office help, watchmen, medical-staff, supervisors, foremen and other
executives, of the Samson Tire and Rubber Corporation; Los Angeles,
California, hereinafter called the Company. On April 4, 1936, the
National Labor Relations Board, hereinafter called the Board, acting
pursuant to Section •9 (c) ` of the National 'Labor Relations Act,
hereinafter called the Act, and' Article III, Section 3 of the National
Labor Relations Board'Rules and Regulations-Series 1, ,as amended,
issued an order authorizing the Regional Director for the Twenty
First Region to, conduct an investigation and'to provide for an
appropriate hearing in connection ,therewith. Ori April '6, :1936, the
Regional Director for the Twenty^First Region, acting pursuant to
the aforesaid order of the Board, issued a notice of hearing. There-
after the Board, by appropriate order,' postponed the date of hearing
and extended the Company's time to answer. On April 15, 1936, the
Company filed a motion to dismiss, whereih it questioned the con-
stitutionality of the Act, and, without waiving its rights thereunder,
an answer denying, inter alia, that the Union represents' a 'majority
of the production employees.
The hearing ,was held in Los Angeles, 'California before Rollin U.
McNitt, a Trial Examiner duly designated by' the Board, on April'
20, 21, 23, 24, 28, May, 15, 18, and•20, 1936. The Union and the Corri-
150 NATIONAL- LABOR RELATIONS 'BOARD
pany were represented by counsel ' and-participated in the hearing.
Full opportunity to be heard, to cross-examine witnesses and to pro-
duce' evidence was afforded to all parties.' The Trial Examiner
denied the motion to dismiss , and his ruling is hereby affirmed.
, After examining the record in the case, the Board concluded that
a' question .-affecting comm. erce.had, arisen .concerning , the relireseuta '
tion of the production employees, exclusive of office help , watchmen,
medical staff , supervisors', foremen, and other executives, of the
Company, and on the basis of such conclusion , and acting pursuant
to Article III, Section 8 of said Rules and Regulations-Series 1, as
amended, issued a Direction of Election on August 3, 1936, in which
it was found that said employees constitute a unit appropriate for
the purposes of collective bargaining, and in which the Board
designated the Acting Regional Director for the Twenty First'
Region as its agent to conduct the election . Merely for the purpose
of expediting the election and thus to insure to the employees of the
Company the full benefit of their right to collective bargaining as
early as possible , the Board directed the election without at the same
time issuing a decision embpdying complete findings of fact and
conclusions of law.
The election was conducted on August 21 and 22, 1936 . Pursuant
to Article III, Section 9 of said Rules and , Regulations-, Series 1, as
amended, an Intermediate Report ,upon the election was subsequently
prepared by E. S . Neal, who conducted the election as agent of the
Board, and duly served upon the parties. The Intermediate Report
found that a majority of the employees eligible , to vote participated
in the election and that the United Rubber `Yorkers of America,
Local No., 44, had been selected by a majority of those voting. No
objections ,to the ballot or,to the Intermediate Report were filed by
the` parties.
Upon the entire record in the case, including the pleadings, the
stenographic report of the hearing , and the documentary and other
evidence received at the hearing, the Board makes the, following :
FINDINGS , OF, FACT
1. THE COMPANY AND ITS BUSINESS
The Samson Tire and Rubber Corporation is a corporation duly
organized and existing under the' laws of the State of Delaware, with
its principal place of business at'Los Angeles, California, where it
owns' and operates a, plant producing rubber tires, rubber tubes ' and
rubber accessories. It is a unit'of the United States Rubber Company
which is a well integrated vertical organization with world-wide rami-
DECISIONS AND ORDERS 151
fications.' By means of the holding company and interlocking direc-
torates the United States Rubber Company. owns and, controls 62 sub-
sidiaries 2 through which its multifarious business is done, the encom-
passing extent of which can be gathered from the fact that it has eight
per cent non-cumulative. first preferred stock-$100 par value, of which
it has issued 690,000 shares, and. of which there are 3,359 unissued
shares; and common stock-no par value, 1,545,959. shares. One of
these subsidiaries is the Samson Tire and Rubber Corporation. Eighty
eight per cent of its stock .is owned by 'the Samson Corporation, a
,, holly-owned subsidiary of the Meyer Rubber Company, which in
turn is a wholly owned subsidiary of the United States Rubber Com-
pany. Furthermore, a number of the company's directors occupy
corresponding positions with the Samson Corporation, the Meyer
Rubber Company and the United States Rubber Company. An agree-
ment 3 entered into between the Company and the United States Rub-
ber Company on January 1; 1931, and apparently still in force, pro-
vides in substance that the United States Rubber Company shall fur-
nish the Company with patent rights and with legal, technical, finan-
cial and administrative assistance; that the production operations of
the Company shall be directed to meet the requirements of the United
States Rubber -Company as to quality, quantity and 'date of produc-
tion; and that the products furnished by the Company shall be.sold
by the United States Rubber Company or its 'subsidiaries wherever
they desire and particularly in the States of .Arizona, California,
Idaho, Montana, Nevada, Oregon, Utah and 'Washington, and in
Alaska and the Hawaiian Islands., The Company is admittedly a
division or plant of the United States Rubber Company.- Indeed
i Board ' s Exhibit No. Ile, p 4. The Company's application for registration with the
Securities and Exchange Commission, dated March 30, 1935, states
"The, registrant through its subsidiaries manufactures and sells rubber goods of practi-
cally eery kind , the principal general classifications being {tires , waterproof and canvas
rubber soled footwear , waterproof clothing , mechanical rubber 'goods used in industry such
as hose, packing , belting, etc , and general - products such as bathing apparel , druggists'
sundries , rubber thread , "LASTEX" , golf balls, so ' es and heels , etc. Products manufactured
are listed in more detail under 'Item 12.
"Products - are sold • to all classes of trade throughout " th'e world . Sales branches,
usually with complete warehouse stocks are operated in the principal cities A number
of retail tire stores, where gasoline ,' oil, batteries , and' other automotive products are also
marketed , are operated in' the United States Sales ; depending upon the nature of the
pioduct, are made to the consumer, retailer, dealer, jobber , chain store , mail order house,
etc.
"The Company , through its plantations ' subsidiaries , p"oduces a substantial portion of
its own elude rubber requirements in Malaya and ' Sumatra; and , through Its principal
operating subsidiary , U. S Rubber Products ; Inc , manufactures in its three mills in the
South practically all of the cotton cord used in the production of its tires . Other mate-
rials are also produced , such as chemicals , reclaimed rubber, metal lasts and buckles and
slide fasteners for clothing and footwear."
2 Board s • Exhibit No. lie, p 3.
3 Boards Exhibit No. 18a
4,Trial Examiner ' s Exhibit No 1, which is a•pamphlet containing information about
working conditions in the Company plant, is addressed to the workers as employees of the
United States Rubber Company and contains on its cover the seal of the United States
152 NATIONAL LABtOR 'RELATIONS BOARD
so complete is the control of the former by the latter that the labor
relations in the Los Angeles plant are governed directly from the
New York office of the United States'Rubber Company.5
The chief raw materials used by the Company consist 'of 'crude
rubber, latex, fabric and a number of other miscellaneous irigredi-
•ents:- A:,substaritia'1•'part'6f the raw, mmaterials. other than crude rub-
ber and latex are shipped to ' the Company from localities outside of
Rubber Company and the following legend :' "Samson Tire and Rubber Corporation Di-
vision of United States Rubber Co." Likewise Board's Exhibit' No. la which is the
by-laws of the Factory Council contains this statement among others of a similar nature
"This organization shall be known as the Factory Council of the Samson Plant, of the
United States Rubber Company " i ,
5 The following are abstracts from Board's Exhibit Nos 20, 21, and 22, which are the
official minutes of meetings of the Factory Council: ' .
"REMARKS BY MR. C. S. CHING
"Chairman Rossier introduced Mr C S Ching, Dirrctor of Industrial and Public Rela-
tions of the United States Rubber Comrany. 11Ir, Ching spoke, at some length on economic
conditions, N I R A.,,and other subjects, saying in part.
"'The management of the United States'Rubber Company is endeavoring to conduct its
affairs with character and; a sense of fairness in all their decisions. The company is
trying to meet, situations as they come•,up,.endeavoring to create a spirit of friendliness
and coopeiatimi•in all their plants, realizmg'that the success of any orgainzation can
only be attained by cooperation, and mutual understanding between management and
employees' "
"SAFETY
"Mr Quirk reported that with the exception of the one lost-time accident in the Mill
Room in January, our accident experience for this year has been very good In May and
June Samson was in a tie for fist place in the United States Rubber Co Safety Contest,
and if every employee will promote and practice safety at all times during the rest of
the year, Samson employees stand a very good chance of winning the $300 prize for the
greatest improvement in safety shown by any U S plant. In connection with safety,
Mr. Quirk pointed out that plant cleanliness and tidiness materially aids in reducing
accidents and accident hazards."
"VACATIONS
"Mr. Carpenter reported that as yet no definite vacation plan has been released by our
'New York office. He pointed out that due to the number of plants and their different
locations, varying local conditions, etc, it is his personal opinion that it will be difficult
if not impife'kible to'work out a plan w'iich will be effective this year. However, it is
expected that a definite policy will be decided upon for next year."
"VISITOR TO PLANT
"Mr. Carpenter informed representatives that recently Mr L D. Tompkins, Vice Presi-
dent of the United States Rubber Co. and General Mgr. of the Tire Division, and Mr.
J. B. Brady, Pacific Coast Sales Mgr, recently made a two day visit to our plant. Mr.
Tompkins was very favoiably impressed by the clean and orderly condition of the plant
as a whole. It is gratifying to hear such favorable comments and it is hoped that
everyone will continue with their best efforts to make Samson the cleanest and safest
plant in the industry."
"LEAVE OF ABSENCE
"Mr. Rossier asked if it is necessary to write to New York to secure a 30-day leave of
absence for an emp.oyee. It was explained that a leave of absence of 30 days or less
may be approved by Mr. Carpenter. If an employee desires a leave of more than 30 days
it is necessary to :ecuie appioval from our New York office, due to the fact that our
Group Insurance and Retirement and Savings are handled in New York.
"If an employee desires a leave of absence he should first make arrangements with
his foreman to be away from work., After securing approval of the= foreman, the` em-
ployee should then contact Mr. Quirk, who will get final approval from Mr. Carpenter,
if the leave is for 30 days or less, or from the Board of Benefits and Pensions in New
York if the leave is in excess of 30 days."
DECISIONS AND ORDERS 153
the State of California. All fabric used by the Company comes from
mills owned and operated by United States Rubber Products, Inc., a
subsidiary of the United States Rubber Company, in South Caro-
lina, Georgia and Tennessee. The Company itself pays the ex-
pense of shipment to its plant. The miscellaneous ingredients' are
in some instances obtained directly from producers in States other
than California, in some instances are' purchased in California and
shipped in from without the State at, the sellers' direction, and in
some instances are purchased in California from sellers who already
have the goods in stock within the State.
All crude rubber and latex used by the Company is purchased in
foreign countries for the account of a subsidiary of the United States
Rubber Company, usually United States Rubber Products, Inc. It
is shipped to Los Angeles by boat, and six employees of the Company
sometimes aid in the unloading of latex from the-boat. No employees
of the Company engage in the unloading of crude rubber or in its
transportation to the plant. At the plant the crude rubber is stored
as the property of United States Rubber Products, Inc. When it is
needed for use the Company secures authority from United States
Rubber Products, Inc., to take delivery. Twenty per cent of the
latex similarly stored by the Company is requisitioned by the United
States Rubber Products, Inc., and is shipped to other plants of the
United States Rubber Company. The remaining latex and all of
the crude rubber are used by the Company.
Approximately 85 per cent by weight of the raw materials which
are used by the Company at its plant come from outside of the State
of California. '
Substantial amounts of the Company's finished products are
shipped by it to and sold by it in States and Territories of the United
States other than California, including Washington, Oregon, Mon-
tana, Idaho, Wyoming, Utah, Nevada, Arizona, New Mexico, Okla-
homa, Texas and Hawaii. The Company's sales are made through
subsidiaries of the, United States Rubber Company, usually United
States Rubber Products, Inc. The Company also fills orders from
the United States Rubber Export Co., Ltd., a subsidiary of the
United States Rubber Company, for tires and tubes to be shipped
to and sold in foreign countries. Sixty per cent of the finished
products of the Company are shipped to and distributed at points in
California, and the remaining 40 per cent are destined to points
outside of California.
The plant of the Company has a daily capacity of 'approximately
5,000 tires and 5,000 tubes. During 1935 it operated at approxi-
mately 80 per cent of its capacity. In connection with its operations
at the plant the-'Company employs about 680 production employees.
154 NATIONAL LABOR RELATIONS BOARD
Of these, about " 658 are ' engaged ' at thei 'plant- solely in production
work with the exception of `four v ho, together with two ' of the re-
maining- 22, occasionally unload the liquid 'rubber called latex from
vessels at the Port of San Pedro into tank cars. The remaining 22
employees divide their time between - work in production processes
proper - and ,in connection with the handling of `raw materials re-
ceived 'at the plant and the handling of the finished products for
shipment from the plant . At the'' times when they are engaged in
handling the finished products for shipment , the 22 ' employees haul
the same from the place of storage in the plant and load them on
freight cars which a common carrier , namely, a railroad , has caused
to be placed on a siding adjacent to a shipping platform that is con-
nected with the plant. At other times these 22 employees haul the
finished products from the place of storage in the plant to the ship-
ping platform from whence they are loaded on trucks by the drivers,
none of whom are employees of the Company.
The aforesaid operations of the Company constitute a continuous
flow of trade , traffic and commerce among the several States.
H. THE FACTORY COUNCIL
In April , 1933, a so-called Factory Council was inaugurated among
the employees at the plant under the guidance and inspiration of the
management of the Company . According to Frederick S. Carpenter,
the factory manager , he proposed the Factory - Council plan to a
group of employees that the management chose, who adopted the,
by-laws that the management proposed without substantial change.
According to. the by-laws the official name of the Factory Council is
"Factory Council of the Samson Plant of the United States Rubber
Company". -Ten employee representatives elected by the employees,
together with ten management . representatives appointed by' the,
management , constitute the Factory Council . All employees of the
plant who have been in the service of the Company for 30 days,- ex-
clusive of foremen, assistant foremen, inspectors and executives, are
eligible to, vote for representatives to the Factory Council. At an
election held among the employees of the plaint in June, 1933, the
Factory Council plan was approved . At the same election and by
the same ballot the employee representatives were also chosen. No
rival organization or plan existed at the time in the plant . The Fac-
tory Council has existed ever since in the plant and holds regular
meetings. The employees are not required to pay dues to the Fac-
tory Council, all its expenses being paid by the Company. A stenog-
rapher who is secretary to one of the executives of the Company
makes a shorthand report of;the proceedings of the Factory Council
and keeps its minutes.
DECISIONS AND,.ORDERS 155
III, THE . $NION AND ITSS ATTEMPTS TO BARGAIN COLLEGTIVELX
The Union in the plant' dates its existence since June, 1933, soon
after the establishment of the Factory Council. It was then. known
as the Tire and Rubber .Workers Union Local No. 18304, a. Federal
Labor Union, organized among,the employees of the four major tire
and rubber, companies in Los Angeles.. In February, 1934, a petition
containing powers. of attorney. authorizing the Union to act as their,
representative for purposes of collective bargaining,was circularized
among the employees of the Company. Five hundred. and twenty
out of 600 signed the powers of attorney,, In June, 1934, the mem-
bership of Local No., 1830.4 voted. to subdivide it into four. locals, each
covering the employees of one of the four companies in Los Angeles,;
In July, 19,34, a charter was issued by the American. Federation of,
Labor creating United Rubber Workers Federal Labor Union