Southern California Gas Co.

National Labor Relations Board - Board Decisions

Jun 3, 1942

41 N.L.R.B. 668 (N.L.R.B. 1942)

In the Matter Of SOUTHERN CALIFORNIA GAS COMPANY and UTILITY
WORKERS ORGANIZING COMMITTEE, LOCALS 170 AND 193, C. I. O.
Case No. R-3808.-Decided June ,3, 194
Jurisdiction : gas utility industry
Investigation and Certification of Representatives : existence of question • where
Company had in previous cases refused recognition to union in other divisions
of the Company without certification by Board and at the hearing gave na
indication that it would recognize the union without certification, question held
to exist- despite failure of union to make demand for recognition ; election
necessary.
Unit Appropriate for Collective Bargaining : all employees of the Com- piny in
the Kern Division held to constitute an appropriate unit on the basis of the
extent of self-organization despite Company's claim for a Company-wide unit;
salesmen included in conformance with prior holdings -in other divisions;
stenographers or secretaries occupying confidential positions, supervisors, tem-
porary employees. assistant engineers class "13," junior engineers, industrial
sales engineer, clerks "A," and branch-office clerks "A," excluded
Mr. T. J. Reynolds, Mr. Guy W. Wadsworth, Jr., and Mr. R. R.
Blackburn, of Los Angeles, Calif., for the Company.
Gallagher and Wirin, by Mr. Milton S. Tyre and Mr. James L.
Daugherty of Los Angeles, Calif.; for the Union.
Mr. Charles W. Schneider, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
Upon petition and amended petition duly filed by Utility Workers
Organizing Committee, Locals 170 and 193, C. I. 0., herein called
the Union, alleging that a question affecting commerce had arisen con-
cerning the representation of employees of Southern California Gas
Company, Los Angeles, California, herein called the Company, the
National Labor Relations Board provided for an appropriate hearing
upon due notice before Maurice J. Nicoson, Trial Examiner. Said
hearing was held at Los Angeles, California, on May 4, 1942. The
Company and'the Union appeared, participated, and were afforded
full opportunity to be heard, to examine and cross-examine witnesses,
and to introduce evidence bearing on the issues. At the hearing the
Company filed two motions to dismiss the proceedings on the follow-
41 N. L. R. B., No. 132.
668
SOUTHERN CALIFORNIA GAS COMPANY 669
ing grounds: (1) that the Company is not engaged in commerce
within the meaning of the Act, and (2) that the Division-wide unit
requested by the Union is inappropriate. For reasons appearing
hereinafter the motions are hereby denied.- The Trial Examiner's
rulings made at the hearing are free from prejudicial error and are
hereby affirmed. -
Upon the entire record in the case, the Board makes the following:
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY
At the hearing in the instant proceedings, pursuant to a stipulation
of the parties, the record of a former case' involving the Company
was incorporated by refernce into the present record. The parties
also stipulated that the business of the Company is substantially un-
changed since the former case. In accordance with the incorporation
and the stipulations, the Board finds the following :
Southern California Gas Company is a public utility and is prin-
cipally engaged in the business of purchasing, transporting, selling,
and distributing natural gas for light, heat, and power purposes in
the central and southern areas of the State of California. It is also
engaged to a minor extent in manufacturing, transporting, selling,
and distributing manufactured gas. The Company purchases and
sells butane for the purposes of light, heat, and power, and as an inci-
dent to its principal business sells gas appliances at retail.
The principal raw material purchased by the Company is natural
gas, all of which is purchased in the State of California. In ad-
dition its purchases of materials include pipes, meters, regulators,
pumps, compressors, valves, bolts, nuts, repair parts, tools, and similar
items. Of these materials, during 1937, amounts in the value of $1,214,-
822.63 were purchased outside the State of California. This was
somewhat less than 10 percent of the total purchases of materials,
including natural.gas,; and approximately one-third of the materials
purchased during the year, excluding natural gas.
The Company is the chief source of gas throughout the southern
portion of California, and the sole source in the Los Angeles area.
During 1937 it served 140 communities with a population of 2,897,000.
The Board found in substance in the earlier case, and it here finds,
that gas supplied by the Company is the principal source of heat and
power to numerous major industrial firms in southern California en-
' Matter of Southern California Gas Company and Utility Workers Oiganizang Commit-
tee, Local 132, 10 N L R. B. 1123. The findings of fact made therein with respect to
the business of the Company are hereby incorporated in this Decision by ieference
670 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
gaged in commerce, and a source of heat and power for a number of
instrumentalities of commerce, such as railroads, bus, and trucking
companies, and that the operations of the Company have a close,
intimate, and substantial relation to trade, traffic, and commerce
among the several States.
II. THE ORGANIZATION INVOLVED
Utility Workers Organizing Committee, Locals 170 and 193, are
labor organizations affiliated with the Congress of Industrial Organi-
zations, admitting to membership employes of the Company.
III. THE QUESTION CONCERNING REPRESENTATION
It does not appear that a demand was made by the Union upon the
Company for recognition as exclusive bargaining representative
within the unit which the Union claims to be appropriate. However,
the Board has decided four previous cases involving other geographical
segments of the Company.' In each of those cases the Company,
upon demand by the Union, refused recognition unless the Union was
certified by the Board. Moreover, at the hearing the Company gave
no indication that it would recognize the Union without a certifica-
tion by the Board. A report of the Regional Director introduced
into evidence at the hearing indicates that the Union represents a
substantial number of employees in the unit which we hereinafter find
to be appropriate.3
We find that a question affecting commerce has arisen concerning
the representation of employees of the Company within the meaning
of Section 9 (c) and Section 2 (6) and (7) of the National Labor
Relations Act.
IV. THE APPROPRIATE UNIT
The Company contends that the appropriate unit comprises all
the Company's employees, excluding supervisors. The Union con-
tends that all employees of the Kern Division of the Company, exclud-
ing supervisors, temporary employees, salesmen, assistant engineers
class "B," junior engineers, clerks "A," branch office clerks "Al" and
2 Matter of Southern California Gas Company and Utility Workers Organizing Committee,
Local 132, 10 N L R. B. 1123; Matter of Southern California Gas Company and Utility
Workers Organizing Committee , Local 114, C 1 0, 31 N L R B 461, Matter of
Southern California Gas Company and Utility Workers Organizing Committee, Local 152,
C 1 0 , et at, 35 N L R B 263 ; Matter of Southern California Gas Company and
Utility Workers Organizing Committee, C I 0, 40 N L R. B 256
S The Union submitted to the Regional Director 64 signed application -membership cards
dated between May i941 and April 1942, of which 63 bore apparently genuine original
signatures Sixty-one of the signatures were the ' names of persons on the Company's,
March 31, 1942, pay roll listing 149 persons in the appropriate unit
SOUTHERN CALIFORNIA GAS COMPANY 671,
stenographers or secretaries who handle confidential material, consti-
tute an appropriate unit.
The Company divides its operations into eight geographical di-
visions. The Kern Division embraces an area approximately 60
miles square. In previous cases we have found that divisions or
smaller geographical segments of the Company constitute appropri-
ate units.' In those cases we found that self-organization among the
employees had proceeded, in general, along divisional or district lines,
and accordingly we rejected the Company's contention for a broader
unit. We are, similarly, of the opinion that a bargaining unit con-
fined'to employees of the Kern Division is appropriate in the present
case.
In the most recent case, we excluded from the appropriate unit,
inter alia, engineering assistants class "B," and junior engineers .5
We, find that such employees should also be excluded in the present
case.
The Union, however, requests the exclusion of two groups of em-
ployees not heretofore excluded in any of the previous cases : sales-
men, and stenographers or secretaries who handle confidential
material.
Salesmaen: The testimony indicates that there are three types of
salesmen : (1) domestic representatives who sell gas appliances, (2)
salesmen who interview home owners in connection with new construc-
tion work, and (3) industrial salesmen who interview prospective
industrial customers concerning the use of gas equipment. They
are not supervisory. They are salaried employees and are appar-
ently not within the overtime provisions of the Federal Wage-
Hour Act. The Union maintains the salesmen are not a part of
either the physical or clerical force and that it has never attempted
to organize them. In the previous case-, domestic representatives and
salesmen have, been included, the Union having petitioned for "all
employees" in a district or division with specifically enumerated ex-
clusions. The bargaining units previously established have been
found appropriate on the basis of extent of self-organization and in
contemplation of the eventual establishment of a single system-wide
bargaining unit. Under such circumstances, Ave are of the opinion
that the classifications of employees included in each, separate unit
should be substantially the same. We can discern here no valid
ground for differentiating between domestic representatives and sales-
men of the Kern Division and similarly classified employees working
in other units of the Company's system. They will therefore be
included within the appropriate unit. The industrial sales engineer,
' See cases cited in footnote 2, supra.
0Matter of Southern California Gas Company and Utility Worhers Organizing Committee,
0 1 0, 40 N L R B. 256
J
672 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
however, appears to be a technical employee and , in accordance with
our most recent decision involving the Company ,6 we shall exclude
him from the unit.
Stenographers: The Union requests the exclusion of seven stenog-
raphers or secretaries attached to the following division heads, sub-
heads, or offices : division manager, district supervisor , superintendent
of transmission and production , division sales manager, division ac-
countant , division engineer , and the Oildale office. The Union would
include, however , all other stenographers or secretaries , of whom
the testimony indicates there are about 10. The Union 's position is
that those whom it would exclude handle confidential matters for
the division heads or subheads indicated , such as orders for check-
ups, lay-offs , classification changes , merit raises , or other information
which it would be Company policy to keep secret until ready for is-
suance. It appears that the stenographers whom the Union would
include are in contact with the public over the counter , receive orders
over the phone , collect bills , or do work of similar nature.
The Company indicated no objection to the exclusion of the secre-
taries of the division manager , the superintendent of transmission
and production , the district supervisor , and the division sales mina
ger, but stated that, as to the other three, it could see no distinction
between their duties and those of ordinary stenographers . , However
the Company offered no evidence to contradict the Union 's contention
that all seven handle matters relating to personnel , although such
evidence , if it existed , would clearly be within its power to produce.
We are of the opinion that the character of the employment of
these stenographers or secretaries justifies the inference that their
duties include handling confidential personnel matters and requires
their exclusion from the unit . We shall therefore exclude all seven.
With respect to clerks "A" and branch office clerks "A," whom
the Union requested be excluded , the Company and the Union agreed,
and we find , that both these categories are supervisory and should
be excluded.7
We find that all employees of the Company in the Kern Division,
excluding supervisors , temporary employees , assistant engineers class
"B," junior engineers , industrial sales engineer , clerks "A" and branch
office clerks "A," and the secretary of each of the following division
heads , subheads , or offices : division manager, district supervisor,
superintendent of transmission and production , division sales man-
ager, division accountant , division engineer , and the Oildale office,
6 Matter of Southern California Gas, Company and Utility TVorkers Organizing Com-
mittee, C 1 0 , 40 N L R B 256
7 The Company stated at the hearing that the classification of clerks "A" has been
abolished throughout the system.
SOUTHERN CALIFORNIA GAS COMPANY 673
constitute a unit appropriate for the purposes of collective bargaining,
within the meaning of Section 9 (b) of the Act.
V. DUTERMINATION OF REPRESENTATIVES
We shall direct that the question concerning representation which
has arisen be resolved by an election by secret ballot among the em-
ployees in the appropriate unit who were employed during the pay-
roll period immediately preceding the date of the Direction of Elec-
tion herein, subject to the limitations and additions set forth in the
Direction.
DIRECTION OF ELECTION
B,y virtue of and pursuant to the power vested in the National
Labor Relations Board by Section 9 (c) of the National Labor Re-
lations Act, 49 Stat . 449, and pursuant to Article III, Section 8, 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 Southern Cali-
fornia Gas Company , Los Angeles , 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 of Election, under
the direction and supervision of the Regional Director for the
Twenty -first 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 employees of the Company in the
unit found to be appropriate in Section IV above, . who were em-,
ployed during the pay-roll period immediately preceding the date of
this Direction of Election , including employees who did not work
during such pay-roll period because they were ill or on vacation
or in . the active military service or training of the United States, or
temporarily laid off, but excluding any who have since quit or been
discharged for cause , to determine whether or not they desire to be
represented for the purposes of collective bargaining by Utility
Workers Organizing Committee , Locals 170 and 193, 'affiliated with
the Congress of Industrial Organizations.
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