Shelby Shops, Inc.

National Labor Relations Board - Board Decisions

Jul 26, 1938

8 N.L.R.B. 591 (N.L.R.B. 1938)

In the Matter of SHELBY SHOPS, INC. and UNITED FURNIruRE
WORKERS OF AMERICA, LOCAL No. 301
In the Mattel' Of SHELBY SHOPS , INC. and UNITED FURNITURE
WORKERS OF AMERICA, LOCAL No. 301
Cases Nos. C-652 and R-808, respectively.Decided July 26, 1938
Furniture Manufacturang Industry-Settlenme'nnt : stipulations providing for
reinstatement of three employees refused reemployment ; withdrawal of recog-
nition and disestablishing of company -dominated union ; conduct of election-
Order : entered on stipulation-Election Ordered: pursuant to stipulation-Cer-
.tiflcation of Reprewntatives.
Mr. William Logan, Donnel, for the Board.
Mr. Wilbur F. Pell, of Shelbyville, Ind., for the respondent.
Mr. Joseph D. Persily, of Indianapolis, Ind., and Mr. William W.
Harris, of Shelbyville, Ind., for the Union.
Mr. Stanton A. Sweeney, of Indianapolis, Ind., and Mr. Carl E.
Murrell, of Shelbyville, Ind., for the Brotherhood.
Mr. Emerson J. Br canner, of Shelbyville, Ind., for the Inde-
pendent.
Miss Edina Loeb, of counsel to the Board.
DECISION
ORDER
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On March '7, 1938, United Furniture Workers of America, Local
No. 301, affiliated with the Committee for Industrial Organization,
herein called the Union, filed a charge with the Regional Director
for the Eleventh Region (Indianapolis, Indiana) alleging that
Shelby Shops, Inc., Shelbyville, Indiana, herein called the respond-
ent, had engaged in and was engaging in unfair labor practices
affecting commerce, within the meaning of Section 8 (1), (2), and
(5) and Section 2 (6) and (7) of the National Labor Relations
Act, 49 Stat. 449, herein called the Act.
8 N. L. R. B., No. 61.
591
592 NATIONAL LABOR RELATIONS BOARD
On March 28, 1938, the Union filed with the Regional Director
a petition alleging that a question affecting commerce had arisen
concerning the representation of the employees of the respondent
and requesting an investigation and certification of representatives
pursuant to Section 9 (c) of the Act. On April 20, 1938, the Na-
tional Labor Relations Board, herein called the Board, acting pur-
suant 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 the Regional Director to conduct an investi-
gation and provide for an appropriate hearing upon due notice,
and acting pursuant to Article III, Section 10 (c) (2), and Article II,
Section 37 (b), of the Rules and Regulations. further ordered that
the two cases be consolidated for the purposes of hearing.
On May 5, 1938, the Board issued a complaint charging that the
respondent had engaged in and was engaging in unfair labor prac-
tices affecting commerce within the meaning of Section 8 (1), (2),
and (5), and Section 2 (6) and (7) of the Act. The complaint
charged, in substance, (1) that the respondent dominated and inter-
fered with the formation and administration of a labor organiza-
tion known as Employees Independent Association of Shelbyville,
Indiana, herein called the Independent, and contributed support
to it; (2) that the respondent on or about February 15, 1938, and
at all times thereafter, refused to bargain collectively with the
Union as the exclusive representative of the respondent's production
employees, such employees constituting a unit appropriate for the
purposes of collective bargaining; and (3) that the respondent by
these and other acts and conduct, interfered with, restrained, and
coerced its employees in the exercise of the rights guaranteed to
them by Section 7 of the Act.
On May 5, the Regional Director duly served copies of the com-
plaint and accompanying notice of hearing in the consolidated
cases upon respondent, the Union, the Independent, and upon the
United Brotherhood of Carpenters and Joiners of America, Local
No. 1617, affiliated with the American Federation of Labor, herein
called the Brotherhood, a labor organization claiming to represent
employees directly affected by the investigation.
The respondent duly filed an answer to the complaint, dated May
9, 1938 , admitting the allegations as to the nature and scope of its
business but denying the alleged unfair labor practices.
On May 9, 1938, the Independent filed with the Regional Director
a petition to intervene in the proceeding. On May 11, 1938, the
Regional Director granted this petition, permitting the Independent
to intervene for the purpose of showing that it was not a labor
organization initiated, dominated , or controlled by the respondent.
DECISIONS AND ORDERS 593
Pursuant to notice, a hearing was held from May 16 to May 26,
1938, at Shelbyville, Indiana, before Alvin J. Rockwell, the Trial
Examiner duly designated by the Board. The Board, the respond-
-ent, the Union, the Brotherhood, and the Independent were repre-
sented by counsel and participated in the hearing. Full opportunity
to be heard, to examine and 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 granted the motion
.of counsel for the Board to amend the complaint to include mainte-
nance employees within the unit alleged to be appropriate for
purposes of collective bargaining, and to charge the commission
of unfair labor practices within the meaning of Section 8 (3) of
the Act,' and to state that on April 26, 1938, a majority of the,
respondent's production employees went on strike in protest against
the respondent's unfair labor practices. On May 20, 1938, the re-
spondent filed its answer to the complaint, as amended, denying
that it engaged in the unfair labor practices charged. On May 16,
1938, counsel for the Board and for the respondent entered into
a stipulation, which was made part of the record, concerning the
respondent's business and operation.
The hearing was recessed on May 26, 1938, pending approval by
the Board of two stipulations effecting a settlement of the consoli-
dated cases.
On June 3, 1938, the Board issued an order approving the stipu-
lations and making them part of the record, and, acting pursuant
to Article II, Section 37, of National Labor Relations Board Rules
and Regulations-Series 1, as amended, further ordered that the
proceeding be transferred to and continued before the Board for the
purpose of entry of a decision and order by the Board pursuant
to the provisions of the stipulations.
The stipulation in the proceeding based on the complaint is signed
by the respondent, the Union, the Independent, and by counsel for
the Board, and provides as follows:
IT IS HEREBY STIPULATED by and between The
Shelby Shops, Inc., respondent herein, the United Furniture
Workers of America Local No. 301 (affiliated with C. I. 0.),
the Employees Independent Association of Shelbyville, Indiana
(for employees of Shelby Shops Inc.), and William Logan
Donnel, Attorney, Eleventh Region, for the National Labor
Relations Board (hereinafter called the Board) that upon the
record herein and upon this stipulation, if approved by the
' It was charged that the respondent had discriminatorily refused to reemploy William
W. Harris, Ernest Finney, and Raymond Bennett . The Union had duly filed an amended
charge to that effect on May 16, 1938
594 NATIONAL LABOR RELATIONS BOARD
Board, an order may be entered by said Board providing as
follows :
1. Respondent, The Shelby Shops, Inc., will cease and desist:
(a) From in any manner interfering with, restraining or
coercing its employees in the exercise of their rights to self-
organization, to form, join or assist labor organizations, to bar-
gain collectively through representatives of their own choosing
and to engage in concerted activities for the purpose of collec-
tive bargaining or other mutual aid or protection, as guaranteed
in Section 7 of the National Labor Relations Act;
(b) Dominating or interfering with the formation or admin-
istration of the Employees Independent Association of Shelby-
ville, Indiana (for employees of Shelby Shops, Inc.), or any
other labor organization, and shall cease and desist contribut-
ing financial or other support to said Employees Independent
Association of Shelbyville, Indiana (for employees of Shelby
Shops, Inc.), or any other labor organization, except that re-
spondent may permit employees to confer with it during work-
ing hours without loss of pay or time;
(c) From, in any manner, recognizing the said Employees
Independent Association of Shelbyville, Indiana (for employees
of Shelby Shops, Inc.) as the bargaining agency of its em-
ployees, or from engaging in any contractual relationship with
said Employees Independent Association of Shelbyville, In-
diana (for employees of Shelby Shops, Inc.) ;
(d) From discouraging membership in the United Furniture
Workers of America, Local No. 301, or in any other labor
organization of its employees: by discharging, threatening or
refusing Ito reinstate any of its employees for joining the United
Furniture Workers of America, Local No. 301, or any other
labor organization of its employees;
(e) From, in any manner, discriminating against any of its
employees in regard to hire or tenure of employment or any
terms or conditions of employment for joining the United Fur-
niture Workers of America, Local No. 301, or any other labor
organization of its employees;
2. Respondent, The Shelby Shops, Inc., shall take the fol-
lowing affirmative action to effectuate the policies of the Na-
tional Labor Relations Act :
(a) Refuse recognition to and disestablish pis an agency of
collective bargaining the said Employees Independent Asso-
ciation of Shelbyville, Indiana (for employees of Shelby Shops,
Inc.) ; inform in writing the officers of said Employees Inde-
pendent Association of Shelbyville, Indiana (for employees of
DECISIONS AND ORDERS 595
Shelby Shops, Inc.) that it will not, in any manner, deal with
or recognize such organization and will refrain from any con-
tractual relationship with said organization;
(b) Offer to William W. Harris, Ernest Finney and Ray-
mond Bennett full reinstatement to their former positions with-
out prejudice to any rights and privileges previously enjoyed
by them, in due course of resumption of operations immedi-
ately upon development of work of the nature and character
heretofore regularly performed by them;
(c) Upon request, recognize and bargain collectively with
whichever union, if any, wins a majority of the votes in an
election to be held to determine the appropriate representative
for purposes of collective bargaining, pursuant to a stipulation
this day filed in the representation matter herein pending be-
tween said respondent and United Furniture Workers of
America, Local No. 301, being Case No. XI-R-120;1 any agree-
ment whatsoever resulting from such collective bargaining to
be reduced to writing and duly signed and executed by said
respondent and said chosen representative both as an evidence
of the good faith thereof and in order to eliminate possible
future misunderstandings as to the nature, extent and intent
of such agreement or agreements;
(d) Post and keep visible in conspicuou's places about its
Shelbyville plant in the City of Shelbyville, State of Indiana,
for a period of thirty (30) days after receipt of a copy of the
order to be entered herein by the National Labor Relations
Board ;
(e) Inform 'the Regional Director of the National Labor Re-
latioils Board for the Eleventh Region, within thirty (30) days
of the service of said order, of the manner in which said
respondent has complied therewith.
And such order may be embodied in any decree of a United
States Circuit Court of Appeals in any action or proceeding in
the premises, the respondent herein hereby expressly waiving
any and all requirement of notice of the institution of proceed-
ings for the enforcement of said order.
The stipulation in the proceeding based on the petition is signed
by the respondent, the Union, the Brotherhood, the Independent,
and by counsel for the Board, and provides as follows :
IT IS HEREBY STIPULATED AND AGREED by and
between The Shelby Shops, Inc., the employer herein, the
2 XI-R-120 was the number of the case based on the petition, now Case No. R-808,
before it was transferred to and continued before the Board for the purpose of entry of
a decision and order by the Boaid.
117213-39-vol 8--39
596 NATIONAL LABOR RELATIONS BOARD
United Furniture Workers of America, Local No. 301, petition-
ing union, the United Brotherhood of Carpenters and Joiners
Union Local No. 1617, the Employees Independent Association
of Shelbyville, Indiana (for employees of Shelby Shops, Inc.),
and William Logan Donnel, Attorney, Eleventh Region for the
National Labor Relations Board, as follows :
1. Upon the record herein, the National Labor Relations
Board has jurisdiction in the premises;
2. The appropriate bargaining unit shall consist of the pro-
duction and maintenance employees of the employer, The Shelby
Shops, Inc., exclusive of supervisory and clerical employees;
3. Employees entitled to vote in an election for the purpose
of choosing a collective bargaining representative shall be those
whose names appear upon the payroll of the employer for the
period ending November 11, 1937, with the addition of Ray-
mond Bennett, not appearing upon said payroll but continuing
to be an employee of said employer;
4. Such election shall be held to determine a choice between
United Furniture Workers of America; Local No. 301, petition-
ing union, and United Brotherhood of Carpenters and Joiners
Union, Local No. 1617; and the Employees Independent Asso-
ciation of Shelbyville, Indiana (for employees of Shelby Shops,
Inc.) shall not be given a place upon the ballot;
5. Numerous employees having signed applications for mem-
bership in two or more of the labor organizations named in
the premises hereof and signatories hereto, and the employer,
The Shelby Shops, Inc., having refused to enter into any col-
lective bargaining agreement until it has been determined which
labor organization represents the majority of its employees, an
election .for- that ;purp ose_ is necessary;
6. An order for an election in the foregoing terms shall be
issued by the National Labor Relations Board at the earliest
practicable date;
7. This stipulation is subject to the approval of the National
Labor Relations Board.
Upon the entire record the Board makes the following :
FINDINGS OF FACT
I. THE BUSINESS OF THE RESPONDENT
Shelby Shops, Inc., is an Indiana corporation with its principal
office and place of business in Shelbyville, Indiana. It is engaged
in the manufacture, sale, and distribution of furniture.
O
DECISIONS AND ORDERS 597
In its manufacturing operations the respondent uses lumber,
veneer, finishing materials, packing materials, hardware, and up-
fitting materials. Of these raw materials, amounting in value to
approximately $80,000, approximately 80 per cent were shipped to
the respondent in 1937 from points outside Indiana.
The total value of the respondent's products in 1937 was approxi-
mately $150,000. In that year 80 per cent of the finished products
were sold and shipped to customers outside Indiana. Sales are
made through commission salesmen who solicit orders throughout
the United States. In promoting its sales, the respondent adver-
tises on a national -scale in trade journals.
We find that the respondent's operations at its plant in Shelby-
ville, Indiana, constitute a continuous flow of trade, traffic, and com-
merce among the several States.
IT. THE APPROPRIATE UNIT
We find that the production and maintenance employees of the
respondent, exclusive of clerical and supervisory employees, con-
stitute a unit appropriate for the purposes of collective bargaining
and that said unit will insure to employees of the respondent the
full benefit of their right to self-organization and to collective bar-
gaining and otherwise effectuate the policies of the Act.
III. THE QUESTION CONCERNING REPRESENTATION
Numerous employees of the respondent signed membership cards
of the Union, of the Brotherhood, of the Independent, or of two
or more of these labor organizations. The respondent has refused
and refuses to enter into any collective bargaining agreement until
it has been determined which labor organization represents a ma-
jority of the employees within the appropriate unit.
We find that a question has arisen concerning representation of
employees of the respondent.
IV. THE DETERMINATION OF REPRESENTATIVES
We find that the question concerning representation which has
arisen can best be resolved by the holding of an election by secret
ballot. Those eligible to vote in the election will be the employees
of the respondent within the appropriate unit, whose names appear
on the pay roll of the respondent for the pay-roll period ending
November 11, 1937. Raymond Bennett will also be eligible to vote.
In accordance with the stipulation, the Independent will not be
given a place upon the ballot.
598
P
NAT[ONAL LABOR RELATIONS BOARD
ORDER
On the basis of the above findings of fact and stipulations and
upon the entire record in the consolidated cases and pursuant to
Section 10 (c) of the National Labor Relations Act, the National
Labor Relations Board hereby orders that Shelby Shops, Inc.,
Shelbyville, Indiana, and its officers, agents, successors, and assigns,
shall :
1. Cease and desist from :
(a) In any manner interfering with, restraining, or coercing its
employees in the exercise of their rights to self-organization, to
form, join, or assist labor organizations, to bargain collectively
through representatives of their own choosing, and to engage in
concerted activities for the purposes of collective bargaining or
other mutual aid or protection, as guaranteed in Section 7 of the
National Labor Relations Act;
(b) Dominating or interfering with the formation or adminis-
tration of Employees Independent Association of Shelbyville, In-
diana (for employees of Shelby Shops, Inc.), or any other labor
organization, and from contributing financial or other support to
Employees Independent Association of Shelbyville, Indiana (for
employees of Shelby Shops, Inc.), or any other labor organization,
except that nothing in this paragraph shall prevent the respondent
from permitting its employees to confer with it during working
hours without loss of time or pay;
(c) In any manner, recognizing Employees Independent Asso-
ciation of Shelbyville, Indiana (for employees of Shelby Shops,
Inc.), as the bargaining agency of its employees, or engaging in
any contractual relationship with Employees Independent Associa-
tion of Shelbyville, Indiana (for employees of Shelby Shops, Inc.) ;
(d) Discouraging membership in United Furniture Workers of
America, Local No. 301, or in any other labor organization of its
employees, by discharging, threatening to discharge, or refusing to
reinstate any of its employees for joining United Furniture Workers
of America, Local No. 301, or any other labor organization of its
employees;
(e) In any manner, discriminating against any of its employees
in regard to hire or tenure of employment or any terms or condi-
tions of employment for joining United Furniture Workers of
America, Local No. 301, or any other labor organization of its
employees.
2. Take the following affirmative action which the Board finds
will effectuate the policies of the Act :
(a) Refuse recognition to and disestablish as an agency of col-
lective bargaining Employees Independent Association of Shelby-
ville, Indiana (for employees of Shelby Shops, Inc.), and inform
DECISTONS aw OICD1.RS 599
in writing the officers of Employees Independent Association of
Shelbyville, Indiana (for employees of Shelby Shops, Inc.), that
it will not, in any manner, deal with or recognize such organization
and that it will refrain from any contractual relationship with said
organization ;
(b) Offer to William W. Harris ,-Ernest Finney , and Raymond
Bennett full reinstatement to their former positions without preju-
dice to any rights and privileges previously enjoyed by them, in due
course of resumption of operations immediately upon development
of work of the nature and character heretofore regularly performed
by them;
(c) Upon request , recognize and bargain collectively with which-
ever union, if any , wins a majority of the votes in the election which
we direct below, and reduce to writing and sign any agreement
resulting from such collective bargaining;
(d) Post and keep visible in conspicuous places about its Shelby-
ville, Indiana, plant, a copy of this order for a period of thirty (30)
days after service thereof;
(e) Inform the Regional Director for the Eleventh Region within
thirty (30) days of the service of this order of the manner in which
the respondent has complied therewith.
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 Rela-
tions 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 directed by the Board
to ascertain representatives for the purposes of collective bargaining
with Shelby Shops, Inc., Shelbyville, Indiana, an election by secret
ballot shall be conducted within forty-five (45) days from the date,
of this Direction, under the direction and supervision of the Re-
gional Director for the Eleventh Region, acting in this matter as
agent for the National Labor Relations Board, and subject to Article
III, Section 9, of said Rules and Regulations, among the production
and maintenance employees of Shelby Shops, Inc., whose names
appear upon the pay roll of the respondent for the period ending
November 11, 1937 , excluding supervisory and clerical employees,
but including Raymond Bennett, to determine whether they desire
to be represented by United Furniture Workers of America, Local
No. 301, affiliated with the Committee for Industrial Organization,
by United Brotherhood of Carpenters and Joiners of America, Local
No. 1617, affiliated with the American Federation of Labor, or by
neither.
600 NATIONAL LABOR RELATIONS BOARD
[SAME TITLE]
CERTIFICATION OF REPRESENTATIVES
September 21, 1938
On July 26, 1938, the National Labor Relations Board issued a
Decision, Order, and Direction of Election in the above-entitled
proceeding. The Direction of Election provided that an election
by secret ballot be conducted within forty-five (45) days from the
date of the Direction among the production and maintenance em-
ployees of Shelby Shops, Inc., herein called the respondent, whose
names appeared upon the pay roll of the respondent for the period
ending November 11, 1937, excluding supervisory and clerical em-
ployees, but including Raymond, Bennett, to determine whether they
desired to be represented by United Furniture Workers of America,
Local No. 301, affiliated with the Committee for Industrial Organiza-
tion, by United Brotherhood of Carpenters and Joiners of America,
Local No. 1617, affiliated with the American Federation of Labor,
or by neither.
Pursuant to the Direction of Election an election by secret ballot
was conducted on September 9, 1938, at Shelbyville, Indiana, under
the direction and supervision of the Regional Director for the
Eleventh Region (Indianapolis, Indiana). Full opportunity was ac-
corded to all. parties to this investigation to participate in the con-
duct of the ballot and to make challenges. On September 10, 1938,
the Regional Director, acting pursuant to Article III, Section 9, of
National Labor Relations Board Rules and Regulations-Series 1, as
amended, issued and duly served upon the parties to the proceeding
his Intermediate Report on the secret ballot. No objections or ex-
ceptions to the Intermediate Report have been filed by any of the
parties.
As to the balloting and its results, the Regional Director reported
as follows :
Total Number of Employees Eligible to Vote------------------- 34
Total Number of Votes Cast---------------------------------- 33
Total Number of Votes for United Furniture Workers of
America, Local No. 301, affiliated with C. I. 0-------------- 21
Total Number of Votes for United Brotherhood of Carpenters
and Joiners of America, Local No. 1617, affiliated with the
A. F. of L------------------------------------------------ 12
Total Number of Votes for Neither Organization------------ 0
Total Number of Blank Ballots---------------------------- 0
Total Number of Void Ballots----------- -------------------- 0
Total Number of Challenged Ballots------------------------ 0
DECISIONS AND ORDERS 601
By virtue of and pursuant to the power vested ni the National
Labor Relations Board by Section 9 (c) of the National Labor Rela-
tions Act , 49 Stat. 449 , and pursuant to Article III, Sections 8 and 9,
of National Labor Relations Board Rules and Regulations -Series 1,
as amended,
IT Is FIEREBY CERTIFIED that United Furniture Workers of America,
Local No. 301, affiliated with the Committee for Industrial Organi-
zation , has been selected by a majority of the production and main-
tenance employees of Shelby Shops , Inc., excluding supervisory and
clerical employees , as their representative for the purposes of col-
lective bargaining , and that, pursuant to Section 9 (a) of the Na-
tional Labor Relations Act, United Furniture Workers of America,
Local No. 301 , affiliated with the Committee for Industrial Organiza-
tion, is the exclusive representative of all such employees for the pur-
poses of collective bargaining in respect to rates of pay, wages, hours
of employment , and other conditions of employment.
MR. DONALD WAKEFIELD SMITH took no part in the consideration
of the above Certification of Representatives.
8 N. L. R . B., No. 61a