Standard Oil Co.

National Labor Relations Board - Board Decisions

Sep 28, 1945

63 N.L.R.B. 1223 (N.L.R.B. 1945)

In the Matter Of STANDARD OIL COMPANY and INTERNATIONAL
BROTHERHOOD OF TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN AND
HELPERS OF AMERICA, LOCAL UNION No. 135, AFL
Case No. 11-R-8,09.-Decided September 28, 1945
Mr. Mervin Bristol, of Chicago, Ill., for the Company.
Mr. K. M. Hindley, of Chicago, Ill., and Mr. Robert McClain, of
Indianapolis, Ind., for the AFL.
Messrs. Gerald C. Purdy and C. W. Teppig, of Indianapolis, Ind.,
for the Petroleum Union.
Miss Helen Hart, of counsel to the Board.
DECISION
AND
ORDER
STATEMENT OF THE CASE
Upon a petition duly filed by International Brotherhood of Team-
sters , Chauffeurs, Warehousemen and Helpers of America, Local
Union No. 135, AFL, herein called the AFL, alleging that a question
affecting commerce had arisen concerning the representation of em-
ployees of Standard Oil Company, Indianapolis, Indiana, herein
called the Company, the National Labor Relations Board provided
for an appropriate hearing upon due notice before Clifford L. Hardy,
Trial Examiner. The hearing was held at Indianapolis, Indiana, on
June 26,1945. At the commencement of the hearing, the Trial Exam-
iner granted a motion to intervene made by Central States Petroleum
Union, Local No. 107, herein called the Petroleum Union. The Com-
pany, the AFL, and the Petroleum 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.
The Trial Examiners ' rulings made at the hearing are free from
prejudicial error and are hereby affirmed. All parties were afforded
an opportunity to file briefs with the Board.
63 N. L . R. B., No. 191.
1228
1224 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY
Standard Oil Company, an Indiana corporation, is engaged in the
manufacture and sale of petroleum products. The Company operates
a sales division at Indianapolis, Indiana, which is the sole division
involved in this proceeding. The products distributed in this sales
division are manufactured at the Company's refinery in Whiting, Indi-
ana, which refines 100,000 barrels of crude petroleum a day. Sub-
stantially all the crude petroleum is brought to the refinery from
points outside the State of Indiana. The Company markets petroleum
products in 14 States of the Middle West.
The Company admits, for the purposes of this proceeding, that it
is engaged in commerce within the meaning of the National Labor
Relations Act.
II. THE ORGANIZATIONS INVOLVED
International Brotherhood of Teamsters, Chauffeurs, Warehouse-
men and Helpers of America, Local Union No. 135, affiliated with the
American Federation of Labor, is a labor organization admitting to
membership employees of the Company.
Central States Petroleum Union, Local No. 107, unaffiliated, is a
labor organization admitting to membership employees of the Com-
pany. -
III. THE ALLEGED QUESTION CONCERNING REPRESENTATION
On June 5, 1941, the Company and the Petroleum Union entered
into a contract in which the Company recognized the Petroleum Union
as the "sole bargaining agency" for all non-supervisory employees of
the Indianapolis Sales Division. This contract established a pro-
cedure for the settlement of grievances and for negotiation on ques-
tions relating to collective bargaining; with certain exceptions, dis-
putes between the Company,and the Petroleum Union were to be
subject to arbitration in the last resort.' The contract further provided
that "an agreement shall be drawn up to cover any question at issue
which has been satisfactorily settled." It was to be effective for I
year from date, and for yearly periods thereafter, unless terminated
by either party on 30 days' written notice prior to any anniversary
date. The Company and the Petroleum Union, in accordance with
the bargaining procedure established ho the 1941 contract, negotiated
' Matters concerning sickness, disability and death benefits, vacations , and retirement,
and questions pertaining to B and C station agents and commission drivers were to b@
subject to conciliation.
STANDARD OIL COMPANY 1225
on some 40 to 60 issues between 1941 and 1945, and some of these
negotiations resulted in agreements. One such agreement, reduced
to writing on September 23, 1942, and signed by the parties, concerned
the subject of wages, and it was introduced into evidence at the hear-
ing.- The 1941 contract was apparently automatically renewed in
1942, 1943, and 1944. And in 1945 neither contracting party gave the
requisite notice to terminate.
On May 16, 1945, the AFL filed the petition in the instant proceed-
ing, placing the Company on notice of its claim to majority representa-
tion. On May 29, 1945, the AFL wrote the Company asking to nego-
tiate a contract, and on June 4, 1945, the Company, by letter, informed
the AFL that it had a valid contract with the Petroleum Union which:
prevented it from bargaining with the AFL.
The Company and the Petroleum Union contend that the 1941
contract, coupled with the subsidiary agreements, such as the 1942'
wage agreement, constitute a single contract which is a bar to the
instant proceeding, inasmuch as the AFL failed to notify the Com-
pany of its claim to representation until 10 days after the 1945 effec-
tive date of the automatic renewal clause. We agree. We are per-
suaded that the subsidiary agreements, for which the 1941 contract
specifically provides, and the 1941 contract itself, are sufficiently re-
lated to constitute a single contract, effective for the period set forth
in the 1941 contract. Thus, considering the 1942 wage agreement, the
only such subsidiary agreement in evidence, and the 1941 contract,
there was in existence before the AFL filed its petition, and there now'
exists, a written, signed agreement for a fixed term, which provides
for exclusive recognition of the Petroleum Union, establishes a griev-
ance and bargaining procedure, and includes a provision embracing
as substantive a term of employment as wages.
In prior decisions the Board has indicated that only a written,
signed agreement of fixed duration, including substantive terms, leads
to stability in labor relations and, therefore, may operate as a bar..
For this reason, the Board has held that a written, signed recognition
agreement alone, although "a customary and desirable preliminary-
step in the collective bargaining process" is not an effective substitute
for a collective bargaining contract embodying substantive terms and
conditions of employment.3 Moreover, the Board has not considered
that a written, signed, exclusive recognition agreement containing
either a maintenance of membership provision,' or a grievance pro-
cedure,5 is of sufficient stature to constitute a bar, for in such gases-
substantive terms and conditions of employment are still lacking.
2 The 1942 wage agreement contained no termination date.
See Matter of Henry Weiss Manufacturing Company, 49 N. L. R. B. 511.
4 See Matter of Corn Products Refining Company , 52 N. L. R. B. 1324.
a See Matter of Standard Oil Company of Indiana ( South Bend Deviston), 56 N. L. R. B.
1101
1226 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
In the instant proceeding , the Company and the Petroleum Union
have a written , signed , exclusive recognition contract , effective for a
definite period , which not only contains a procedure for the settlement
,of grievances and for negotiation on questions relating to collective
bargaining, but also includes a substantive term of employment-a
wage provision . We are of the opinion that this contract precludes a
current determination of representatives.
We find that no question affecting commerce has arisen concerning
the representation of employees of the Company, within the meaning
of Section 9 (c) of the National Labor Relations Act. We shall,
therefore , dismiss the petition , but without prejudice to the AFL's
right to file a new petition at a reasonable time prior to the next auto-
matic renewal date of the contract.
ORDER
Upon the basis of the foregoing findings of fact, the National Labor
Relations Board hereby orders that the petition for investigation and
-certification of representatives of employees of the Standard Oil Com-
pany, Indianapolis, Indiana, filed by International Brotherhood of
Teamsters, Chauffeurs, Warehousemen and Helpers of America, Local
Union No. 135, AFL, be, and it hereby is, dismissed.
CHAIRMAN HERZOG took no part in the consideration of the above
Decision and Order.