Standard Oil Co. of Indiana

National Labor Relations Board - Board Decisions

May 31, 1944

56 N.L.R.B. 1101 (N.L.R.B. 1944)

In the Matter Of STANDARD OIL COMPANY OF INDIANA (SOUTH BEND
DIVISION) and INTERNATIONAL BROTHERHOOD OF CHAUFFEURS, TEAM-
STERS, WAREHOUSEMEN & HELPERS of AMERICA, CHAUFFEURS,
TEAMSTERS & HELPERS LOCAL No. 364, A. F. OF L.
Case No.13-R-2214.Decided May 31, 1944
Mr. Mervin Bristol, of Chicago, Ill., for the Company.
Padway cC Goldberg, by Mr. I. E. Goldberg, of Milwaukee, Wis.,
Mr. Walter Biggs, of South Bend, Ind., and Mr. George Skerce, of
Michigan City, Ind., for the Teamsters.
Mr. Olen W. Hovarter, of Galveston, Ind., Mr. Sam Newton, of Por-
ter, Ind., and Mr. Herbert Miller, of Knox,' Ind., for the Association.
Mrs. Catherine W. Goldman, of counsel to the Board.
DECISION
' DIRECTION OF ELECTIONS
AND
ORDER
STATEMENT OF THE CASE
Upon a petition duly filed by International Brotherhood of Chauf-
feurs, Teamsters, Warehousemen & Helpers of America, Chauffeurs,
Teamsters & Helpers Local No. 364, A. F. of L. herein called the
Teamsters, alleging that a question affecting commerce had arisen
concerning the representation of employees of Standard Oil Company
of Indiana (South Bend Division), South Bend, Indiana, herein called
the Company, the National Labor Relations Board, provided for an
appropriate hearing upon due notice before George S. Freudenthal,
Jr., Trial Examiner. Said hearing was held at South Bend, Indiana,
on March 23, 1944. At the hearing Association- of. Standard Em-
ployees '(South Bend Division) Inc., herein called the Association,
moved to intervene; and the motion was granted. The Company, the
Teamsters, and the Association appeared and participated. All par-
ties were afforded full opportunity to be heard, to examine and cross-
examine witnesses, and to introduce evidence bearing on the issues.
56 N. L. R. B., No. 192.
58 7 784-45-vol 56--71 1101 -
1.102• DECISIONS OF 'NATIONAL LABOR RELATIONS ' BOARD -
The Trial Examiner's 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.
Upon the entire record in the case, the Board makes 'the following':
FINDINGS OF, FACT,
I. THE BUSINESS OF THE COMPANY
Standard Oil Company of Indiana, an Indiana corporation, is en- /
gaged in the manufacture and marketing of petroleum products in
14 States in the Middle West. Certain of its subsidiaries are engaged'
in producing and transporting crude petroleum.
The Company's South Bend Sales Division, the only division 'in-
volved in this proceeding, embraces the northern' portion of the State
of Indiana. In this territory the Company maintains numerous ware-
houses and,bulk plants, from which it carries on extensive marketing
operations. During the year 1943, the value of net sales in the South
Bend Sales Division exceeded $9,500,000. -The products distributed'
in the division are manufactured at the Company's refinery in Whiting,
Indiana, which runs more than 100,000 barrels of crude petroleum a
day. Substantially all the crude petroleum,is brought to the refinery
from outside the State of Indiana.
The Company admits that it is engaged in commerce within the
meaning of the National Labor Relations Act.
H. THE ORGANIZATIONS INVOLVED
International Brotherhood of Chauffeurs, Teamsters, Warehouse-
men & Helpers of America, Chauffeurs, Teamsters & Helpers Local
No. 364, affiliated with the American Federation of Labor, ' is a labor
organization admitting to membership employees of the Company.
Association of Standard Employees (South Bend Division) Inc:,
is an unaffiliated labor organization admitting to membership em-
ployees of the Company.
III. THE QUESTIONS CONCERNING REPRESENTATION
On September 1, 1940, the Company and the Association entered into
a contract effective from that date for a period of 1 year, and from
year to year thereafter unless terminated by either,party on 30 days'
written notice prior to September 1 of any year. Under the contract,
the Association was recognized as the-exclusive bargaining agency- of
the employees of the South Bend Sales Division; a procedure was
established for handling questions which might arise and for the
execution of agreements as such questions might be settled; and pro-
I
STANDARD OIL COMPANY OF INDIANA, 1103
vision was included that nothing in the contract should conflict with
the right of employees to join any other labor organization. The con-
tract did not contain substantive terms in regard to wages or working
conditions. Pursuant to the contract, the Company and the Associa-
tion executed separate wage agreements covering commissioned and
salaried employees, and negotiated concerning various allowances and
expenses.
The Association contends that its contract of September 1, 1940,
is a bar to this proceeding.' The contract, however, does not embody
specific terms or conditions of employment. We are of the opinion
that such a contract does not achieve stability in labor relations and
does not constitute an effectual bargaining contract 2 , Accordingly,
we find that the contract of September 1, 1940, does not operate as a
bar to this proceeding. '
A statement of a Board agent, introduced into evidence at the
hearing, indicates that the Teamsters represents a substantial, num-
ber of employees in the. units hereinafter found appropriate .3
We find that questions affecting commerce have arisen concerning
the representation of employees of the Company, within the meaning
of Section 9 (c) and Section 2 (6) and (7)1of the Act.
IV. THE APPROPRIATE UNITS
The Teamsters requests three separate units, comprising : ,(1) com-
mission agents 'and commission drivers; (2) truck transport drivers;
and (3 ) salaried drivers other than'truck transport drivers. The
Company and the Association contend that a single unit covering all
employees in the South Bend Sales Division is appropriate, and that
such a unit has been established by their bargaining ' relations.
In its South Bend Sales Division the Company maintains three types
of stations: A stations, which are large stations operated by salaried
men under the supervision of a salaried agent; B stations, which are
smaller bulk stations operated by commission agents under the super-
vision : of salesmen ; and C stations , which- are between the A. and B
1 The Association does not contend that the subsequent wage agreements bar this pro-
ceeding. The Company does not assert any of the contracts as bats.
See Matter of Henry Weiss Mfg. Co , Inc ., 49 N. L . R B. 511 ; Matter of Corn Products
Reftniny Co , 52 N L It. B 1324.
7 The Field Examiner - reported that the Teamsters submitted 120 application cards ; that
the names of 109 persons appearing on the cards were listed on the Company 's pay roll of
January 1, 1944 ; that there are 228 employees in the unit requested by the Teamsters ; and
that the cards were dated between August and November 1943, with the exception of'1,
which was dated July 1935.
The Association relies upon its contract to show its interest in this proceeding. In addi-
tion, it submitted at the hearing a list containing the names of 174 employees who had
voluntarily authorized the Company to check-off Association dues ; 150 of the names appear
to be the names of drivers The Field Examiner reported that there were 359 employees
in the unit requested by the Association.
1104 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
stations in volume and size and,are operated by salaried 'and commis-
sioned employees, under the supervision of either salaried agents or
salesmen. -
Throughout the division the Company employs commission agents
and commission drivers, who make deliveries of specified orders and
also peddle within a particular geographic area. They work on -a
commission basis; carry various types of insurance, and are permitted
to extend unauthorized credit for which they are held resp8nsible.
They are subject to the authority of the persons supervising the
stations out of which they operate. The duties and conditions of
employment of the commission agents and commission drivers, are
comparable.' ' - I
k
The Company also employs truck transport drivers, who haul large
loads from one of the Company's refineries to the bulk stations in'the
South Bend Sales Div' ision.4 They operate out of a truck transport
terminal, and are under the separate supervision of the superintendent
of truck transports. They are known as "over-the-road" drivers, and
drive a different type truck than do the other drivers. By reason of
their duties they are subjected to special-hazards and have special
problems, such as allowances for meals and stop; overs.
The third group of drivers employed by the Company is the salaried
drivers other than truck -transport drivers. They make city deliv-
eries of petroleum and petroleum`products,and haul barrels and pack-,
ages from large to smaller bulk stations.,
The Teamsters contends that the difference in duties and working
conditions of the three groups of drivers indicates the feasibility of
three separate units. It also states that it is the policy of that union
to organize the three types of drivers separately. The Company and
the Association contend, however, that a division-wide unit as covered
by their contract is appropriate. Although the contract purports to
cover, all employees in the South Bend Sales Division, it appears, as
indicated above, that the parties have actually bargained separately
for commissioned and salaried employees. Moreover, they have en-
tered into no specific negotiations concerning truck transport drivers,
who were employed subsequent to the execution of their contract and
wage agreements. We are not convinced, therefore, that the contract
and negotiations between the Company and the Association have so
stabilized collective bargaining upon a division-wide basis that separate
units of drivers are inappropriate. Under the. circumstances, we are -
of the opinion that sufficient diversity of interest and independence
exists between the three groups of drivers to warrant the establishment
of three separate units. The Teamsters, however, has failed to make
4 The, truck transport operation is a recent development formerly handled by contracting
carriers.
STAIVDARD'OIL COMPANY OF INDIANA, 1105
any showing of interest among the salaried drivers other than truck
transport drivers. Consequently, we shall dismiss the petition insofar
as it applies to them.
We find that (1) all commission agents and commission drivers,
excluding all supervisory employees with authority to hire, promote,
discharge, discipline, or otherwise' effect changes in the status of
employees, or effectively recommend such action; and (2) all truck
transport drivers, operating out of the Company's Michigan City Truck
Transport Terminal, excluding all supervisory employees with author-
ity to hire,'promote,,discharge, discipline, or otherwise- effect changes
in the status of employees, or effectively recommend such 'action; con-
stitute units appropriate for the purposes of collective bargaining
within the meaning of Section 9 (b) of the Act.
V. THE DETERMINATION OF REPRESENTATIVES
We shall direct that the questions concerning representation which
have arisen .be resolved by elections by secret ballot among the em-
ployees in the appropriate units who were employed during the pay-
roll period immediately preceding the date of the Direction of Elec-
tions herein, subject to the limitations and additions set forth in the
Direction.
The Teamsters requests that its name appear on the ballots as Team-
sters Local No. 364, A. F. of L. The Association requests that its
name appear as Association of Standard Employees (South Bend
Division) Inc. The requests are hereby granted.
DIRECTION OF ELECTIONS
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, and pursuant to Article'III, Section 9, of National Labor
Relations Board Rules and Regulations-Series 3, it is hereby '
DIRECTED that, as part of the investigation to ascertain representa-
tives for the purposes of collective bargaining with Standard Oil Com-
pany of Indiana (South Bend Division), South Bend, Indiana, elec-
tions 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 Thirteenth
Region, acting in this matter as agent for the National. Labor Relations-
Board, and subject to Article III, Sections 10 and 11, of said Rules
and Regulations, among the employees in the units found appropriate
in Section IV, above, who were employed during the pay-roll period
immediately preceding the date of this Direction, including employees
1106 DECISIONS OF NATIONAL -LABOR• RELATIONS BOARD
who' did not work during said pay-roll period because, they were ill'
or on'vacation or temporarily laid off, and including employees in the
armed forces of the United States who present themselves in person'
at.the'polls, but excluding any who have since quit or,been discharged
for cause 'and have not been rehired or reinstated prior to the date of
the elections, to determine-whether they desire to be represented by
International Brotherhood of Chauffeurs, Teamsters, Warehousemen,
& Helpers of America, Chauffeurs, Teamsters & Helpers Local No. 364,
affiliated with the American Federation of Labor, or Association of
Standard Employees-(South Bend Division) Inc., for the purposes of
collective bargaining, or by neither.
ORDER
IT IS HEREBY ORDERED that the petition be, and it hereby is, dismissed
insofar as it requests an investigation of the question concerning repre-
sentation 'of salaried drivers, other than truck transport drivers, of
Standard Oil, Company of Indiana' (South Bend Division).'