Southern Industry Co.

National Labor Relations Board - Board Decisions

Jul 20, 1948

78 N.L.R.B. 425 (N.L.R.B. 1948)

In the Matter of SOUTHERN INDUSTRY COMPANY, EMPLOYER and INTER-
NATIONAL BROTHERHOOD OF PULP, SULPHITE AND PAPER MILL WORK-
ERS, A. F. L., PETITIONERS
In the Matter of CALCASIEU PAPER COMPANY, INC., AND SOUTHERN
INDUSTRY COMPANY, PETITIONERS and INTERNATIONAL BROTHERHOOD
OF PULP, SULPHITE AND PAPER MILL WORKERS, A. F. L. and INTER-
NATIONAL BROTHERHOOD OF PAPERMAKERS, A. F. L. and UNITED
PAPER WORKERS OF AMERICA, C. I. 0., UNIONS
Cases Nos. 15-R-2166 and 15-RE-15, respectively.-Decided July 00,
1948
DECISION
AND
DIRECTION OF ELECTION
Upon petitions duly filed, hearing in this consolidated case was held
at Elizabeth, Louisiana, on February 13, 1948, before Andrew P.
Carter, hearing officer: The hearing officer's rulings made at the
hearing are free from prejudicial error and are hereby affirmed.
Pursuant to the provisions of Section 3 (b) of the National Labor
Relations Act, the Board has delegated its powers in connection with
this case to a three-man panel consisting of the undersigned Board
Members.*
Upon the entire record in the case, the National Labor Relations
Board makes the following :
FINDINGS OF FACT
1. THE BUSINESS OF THE EMPLOYER
The Calcasieu Paper Company, Inc., hereinafter called "Calcasieu,"
is a Louisiana corporation operating a paper mill at Elizabeth,
Louisiana, in which it manufactures pulp and paper. The Southern
'Petition No. 15-R-2166 of the International Brotherhopd of Pulp, Sulphite and Paper
Mill Workers was filed February 26, 1947; that of the Employers , No. 15-RE-15, was filed
May 19, 1947 . By order of ,the General Counsel dated January 19 , 1948, the two cases were
consolidated.
'Chairman Herzog . and Members Reynolds and Murdock.
78 N. L. R. B., No. 55.
425
426 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Industry Company, hereinafter called "Southern," is a partnership,
and operates a bag and box plant on property adjacent to the paper
mill. Most of the paper from the mill goes to the bag plant for con-
version into bags and boxes. The Employers estimate the value of
the raw materials received from out of the State as substantially in
excess of $100,000 for both the mill and the plant. Management of
the mill and plant are integrated. The McGehee family controls the
Calcasieu corporation and constitutes the members of the Southern
partnership.
The Employers admit and we find that they are engaged in commerce
within the meaning of the National Labor Relations Act.
II. THE ORGANIZATIONS INVOLVED
The Petitioner in Case No. 15-R-2166, International Brotherhood
of Pulp, Sulphite and Paper Mill Workers, herein called the
"Brotherhood," is a labor organization affiliated with the American
Federation of Labor, claiming to represent employees of the South-
ern Industry Company. The two other Unions named in the Em-
ployers' petition in Case No. 15-RE-15, namely the International
Brotherhood of Papermakers and the United Paper Workers of
America, the latter herein called "United," are labor organizations
affiliated with the American Federation of Labor and the Congress of
Industrial Organizations, respectively, claiming to represent employees
of Calcasieu. The United intervened in the Southern Case, No.
15-R-2166, by letter dated March 5, 1947, from the C. I. O. State
Director to the N. L. R. B. Regional Director as well as orally at,
the hearing.2 The International Brotherhood of Papermakers,.
A. F. L., stated at the hearing that it had no interest in the petition
filed in Case No. 15-R-2166 for the employees of the bag plant.
III. THE QUESTION CONCERNING REPRESENTATION
The Calcasieu paper mill has been in operation for a number of
years. In 1946 a controlling interest was purchased -by the McGehee,
family, whose members comprise the Southern partnership. The
Southern bag and box plant was then constructed alongside the paper
mill . Shortly after completion of this plant, the Brotherhood, on
February 26, 1947 , filed its petition in Case No. 15-R-2166 seeking
a unit of production and maintenance employees in the new plant.
' The United 's oral motion to intervene in Case No. 15 -R-2166 , and the colloquy on the
record concerning that motion, sufficiently indicated "the order or relief sought and the
grounds for such motion " as required by Section 203 57 of the Board ' s Rules and Regula-
tions-Series 5. For this reason, as well as those stated by the hearing officer , the Em-
ployers' objection to the United 's intervention is overruled.
SOUTHERN INDUSTRY COMPANY 427
There was then pending the petition of the United, Case No. 15-R-1993,
on which a hearing had been held, for a similar unit in the paper mill.
On March 29, 1947, the Employers filed a joint motion for interven-
tion of Southern in Case No. 15-8-1993 and consolidation of Cases
Nos. 15-R-1993 and 15-R-2166. The Board denied this motion on
the ground that consideration of the paper mill case had proceeded
too far to make consolidation practicable, and, on April 11, 1947,
issued its Decision and Direction of Election for the Calcasieu unit.'
The election, held May 9, resulted in 101 votes for the United, 53 for
the Brotherhood, and 91 for neither labor organization. A Run-Off
Election between the United and the Brotherhood held May 27 re-
sulted in 102 votes for the former and 64 for the latter. In the mean-
time, on May 19, 1947, the Employers filed their petition in Case No.
15-RE-15 for a production and maintenance unit covering the em-
ployees of both the paper mill and bag and box plant. On May 29
Calcasieu filed objections to the conduct of the Run-Off Election in
Case No. 15-R-1993. These were overruled by the Board on August
15) 1947, in its Supplemental Decision and Certification of Representa-
tives 4 One of the objections specifically overruled by the Board was
that a bargaining unit for the paper mill alone was not appropriate,
and therefore no certification was then possible.
Under our well-settled rule we shall dismiss the Employers' petition
requesting a combined paper mill and bag plant unit, because of the
Board's certification of the United as the exclusive bargaining repre-
sentative of the production and maintenance employees in the paper
mill on August 15, 1947. As we stated in Matter of Con P. Curran
Printing Company, 67 N. L. R. B. 1419, "... in the absence of unusual
circumstances, neither the majority status nor the authority as exclu-
sive bargaining agent of a certified union is subject to challenge for a
reasonable period after certification, normally 1 year, during which
time there is a duty on the part of the employer to bargain in good
faith with the certified union." And, as the Supreme Court said in
the case of Franks Bros. Co. v. N. L. R. B., 321 U. S. 702: ". . . a bar-
gaining relationship once rightfully established must be permitted to
exist and function for a reasonable period in which it can be given a
fair chance to succeed. . . . After such a reasonable period the Board
may, in a proper proceeding and upon a proper showing, take steps in
recognition of changed situations which might make appropriate
changed bargaining relationships." 5
8 73 N. L. R. B. 344.
4 74 N. L. R. B. 1087.
"See also Matter of Lift Trunks, Inc., 75 N. L. R. B. 998, and N. L. R. B. v. The
Prudential Ins. Co. of America, 154 F. (2d) 385 (C. C. A. 6), enf'g 56 N. L. R. B. 1849,
and 1859.
428 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
We find that the Employers' petition for a combined unit is barred
by the aforesaid certification. Moreover, for the reasons indicated in
Section IV, below, we find no merit in the Employers' contention that
the combined paper mill and bag plant unit proposed in their petition
is the only appropriate unit of their employees. Accordingly, the peti-
tion in Case No. 15-RE-15 is hereby dismissed.
As to the Brotherhood's petition in Case No. 15-R-2166, we find
that a question affecting commerce exists concerning the representation
,of employees of Southern, within the meaning of Section 9 (c) (1)
and Section 2 (6) and (7) of the Act.6
IV. THE APPROPRIATE UNIT
The Brotherhood seeks a unit of bag and box plant employees.
Southern prefers a unit which combines the employees of Southern and
Calcasieu. The Southern bag and box plant employs approximately
100 persons, nearly all of whom are women. The Calcasieu paper mill
employs about 280 men. Virtually no interchange of employees occurs
between the plant and the mill because the type of work is admittedly
different. It is true that the mill and the plant are situated on the same
enclosure and that certain of the operations of the two are integrated.
One personnel director serves both companies, and the two pay rolls
are consolidated. Facilities such as steam and air are furnished to the
Southern plant by the Calcasieu mill, although when meters are avail-
able a charge will be made to Southern for these services; and the same
maintenance and shipping workers service both the mill and the plant.
It is also true that most of the paper made by the mill goes to the bag
plant, and that records, income tax matters, and sales of products for
both the mill and plant are handled by the Jacksonville, Florida, office
of Southern. Apparently employees of both the mill and the plant are
furnished houses by Calcasieu. The assistant general manager of
Southern, who is the vice president of Calcasieu, stated that some super-
visors in the mill also exercise supervisory functions in the bag plant,
'but he specified no instances other than the superintendent of shipping
and the personnel director. In view of the lack of interchange of em-
6 The Employers moved to dismiss the Brotherhood petition for failure to comply with
Section 203 53 (6), (9 ), and (1 ) of the Board 's Rules and Regulations-Series 5, which
requires a statement in the petition of the number of employees in the alleged appropriate
unit and the number who have designated the petitioner to act, as well as affirmative state-
ments regarding compliance with Section 9 (f), (g), and ( h) of the Act The Rules re-
-quiring that the petition itself state these facts became effective August 22 , 1947. As the
petition in question was bled approximately 6 months earliei , these rules are inapplicable
to it . See Matter of Elect7ical Equipment Co, 76 N L . R B 1060 The Employers'
motion to dismiss on the ground that the Brotherhood 's showing of interest is inadequate
is;likewise denied . Matter of Falcon Manufacturing Company, 73 N L. R. B., 467; Matter
.of'alt Disney , Productions, 76 N. L . R. B. 121.
SOUTHERN INDUSTRY COMPANY 429
ployees, the entirely different type of work, and the distinct entity of
each Employer even though control of both is exercised by members of
the same family, we are of the opinion that the employees of the bag
and box plant alone constitute an appropriate unit.? Accordingly, we
deny Southern's motion to dismiss the Brotherhood petition in Case
No. 15-R-2166 because of inappropriateness of the unit.
The Brotherhood has petitioned for a unit of all production and
maintenance employees of Southern, including watchmen," and exclud-
ing clerical employees, office janitors, and supervisors. Counsel for the
Employers made no objection to the composition of this unit, but only
reiterated the contention that the unit should be a combined one of
production and maintenance employees in Southern and Calcasieu.
We find that all production and maintenance employees of the South-
ern Industry Company; at its Elizabeth, Louisiana, plant, excluding
clerical employees, watchmen, office janitors, and all supervisors as,
defined in the Act, constitute a unit appropriate for the purposes of
collective bargaining within the meaning of Section 9 (b) of the Act.
DIRECTION OF ELECTION
As part of the investigation to ascertain representatives for the pur-
poses of collective bargaining with Southern Industry Company, Eliza-
beth, Louisiana, 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, under the direction and supervision of the Regional Director
for the Fifteenth Region, subject to Sections 203.61 and 203.62, of
National Labor Relations Board Rules and Regulations-Series 5,
among the employees in the unit found appropriate in Section IV,
above, who were employed during the pay-roll period immediately
preceding the date of this Direction, including employees who did not
work during said pay-roll period because they were ill or on vacation
or temporarily laid off, but excluding those employees who have since
quit or been discharged for cause and have not been rehired or rein-
7 Matter of Robert Gair Company, Inc , 55 N L. R. B . 184; Matter of Veneer Mfg Co.
and South Carolina Plywood Co, 77 N. L. R. B 659; Matter of Lyon Metal Products,
Inc, 62 N. L. R . B.'1350 ; Matter of Reeves Sound Laboratories , Inc., 60 N . L R. B. 463.
Matter of Marcal Pulp it Paper Co., Inc , 65 N. L. R. B. 263 , cited by Employers, is
distinguished from the instant case because the former involves "considerable interchange-
of employees between the two companies " Compare also Matter of Cummer-Graham Co,
73 N. L R. B 603, where employees of a sawmill, veneer plant, and two box factories were
grouped in one unit over the employer 's objection , but there was frequent interchange of
employees and only one employing entity.
IIn accord with our interpretation of Section 9 (b) (3) of the Act, watchmen are-
excluded from production and maintenance units ., Matter of C. V. Hill it Co ., Inc, 76.
N. L. R. B. 158.
430 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
stated prior to the date of the election, and also including employees on
strike who are not entitled to reinstatement, to determine whether or
not they desire to be represented by the International Brotherhood of
Pulp, Sulphite and Paper Mill Workers, A. F. L., for the purposes
of collective bargaining.