Sydney Blumenthal and Co., Inc.

National Labor Relations Board - Board Decisions

Nov 18, 1944

59 N.L.R.B. 348 (N.L.R.B. 1944)

In the Matter of SYDNEY BLUMENTHAL AND COMPANY, INC., and TEX-
T1LE WORKERS OF AMERICA (CIO)
Case No. 5-R-1617.-Decided November 18, 1944
DECISION
AND
ORDER
On June 29, 1944, pursuant to a Stipulation for Certification upon
Consent Election, entered into June 15, 1944, by Sydney Blumenthal
and Company, Inc., Caromount Division, Rocky Mount, North Caro-
lina, herein called the Company, and Textile Workers of America
(CIO), herein called the Union, an election by -secret ballot was
conducted under the direction and supervision of the Regional
Director for the Fifth Region (Baltimore, Maryland). Immediately
thereafter, a Tally of Ballots was furnished by the Regional Di-_
rector to the Company and to the representative of the participating
union.
The Talley indicated that of the approximately 613 eligible voters,
575 cast valid ballots of which 260 were for the Union and 315 were
against the Union. One void ballot was cast; 7 ballots were
challenged.
On July 1, 1944, the Union filed Objections to conduct affecting
the results of the election. On September 13, 1944, following an in-
vestigation, the Regional Director issued a Report on Objections to
the election, in which he found that the Objections raised material
and substantial issues. Thereafter, on September 26,-1944, the C'om-
_pany sent a letter to the Regional Director which the Board accepts
as Exceptions to the said Report. In the letter, the Company (1)
agreed to the holding of a new election but demanded that it be held
immediately; (2) admitted the issuance of certain speeches and let-
ters as recounted by the Regional Director in the Report but claimed
privilege to issue such utterances. The Company did not deny the
Regional Director's findings concerning certain acts of its supervisors.
Upon the entire record in the case, including the Objections, the
Report,on Objections, and the Exceptions thereto, the Board makes
the following :
59 N. L R. B., No. 75.
349
SYDNEY BLUMENTHAL- AND COMPANY, - INC . -349
FINDINGS -OF FACT
The Union began organizing in the Company's plant on or about
-May 1, 1944. On May 9, 1944, the Company called its employees to-
gether and read them two letters emphasizing the benefits which the
Company had afforded the employees in the past,' and suggesting that
the managementiwould take it as an affront if the employees chose a
- union to represent them. On June 15, 1944, the Company entered into
the Stipulation for Consent Election. Thereafter, on the 16th, 23rd,
27th, and 28th of June, the Company sent letters to employees warning
that the employees were "walking into a trap from which there was no
escape," i. e., "Union Security," the danger being that employees who
tired of the Union would lose their jobs. The letters also pointedly
implied that benefits presently sponsored by the Company would be
discontinued 'if the Union should win the election.2 - Similar letters
were isued to the employees of the'Company at Wilson, North Caro-
lina. The Company had never issued bulletins or news letters to its
employees in this manner before.
The Company's contention that these utterances were privileged by
reason of the First Amendment to the Constitution is without basis.
They clearly go beyond the exercise of the privilege of free speech
and they improperly injected the Company into the election campaign
as a party interested in the defeat of the Union.3 Coercion was im-
plicit in the threats to discontinue benefits 4 Moreover, the acts,of
supervisors in the plant make evident- the fact that the letters were
part of a deliberate scheme of coercion and intimidation engaged in
by the Company in an effort to affect the results of the election. It
is undisputed that supervisors approached employees with such state-
ments as "Of course the Company don't want the union and I am for
the Company" and, in a conversation relative to the probability that a
union man would lose his job, "You wouldn't know how we got rid of
you." Similar threats were made by another employee who, according
to the Regional Director's undisputed finding, has a favored position in
the plant and occupies a-position which would lead the employees rea-
sonably to believe that he is a representative of management.,, This
same individual suggested that employees would lose privileges if the
1 Among the benefits listed was a request made by the Company to the war Labor
Board for wage increases . The Regional Director reported that the request was made the
day the speech was given.
2 "Is the Union going to lend you money to buy you coal at the price you are now
paying? Is the Union going to -pay the difference between the cost of your insurance and
what you now pay? . . . The Union is promising you a lot of changes . There will be
plenty of changes if they win , but will they be to your advantage?"
See Reliance Manufacturing Co. v. N. L. R. B., 143 F. ( 2d) 761 (C. C. A. 7).
See N. L. R. B. v. American Tube Bending Co., 134 F. (2d) 993.
See International Assn of Machinists v. N. L. R. B., 311 U. S. 72; Matter of Engineering
and Research Corp., 55 N. L. It. B. 137.
350 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Union should come into the plant. - One of the employees was asked to
use his influence in the plant to get other employees to vote against
the Union.
We are not satisfied, therefore, that the results of the election repre-
sent the free choice of the employees who participated therein, and
we shall set it aside. The Company agrees to cooperate in the holding
of another election but refuses to comply with the request of the Re-
gional Director that it take steps to dissipate the effect of the above-
mentioned activities.- Consequently, we shall not, as the Company
suggests, hold a new election at this time but we shall do'so when the
Regional Director advises us that the time is appropriate.
ORDER
Upon the basis of the foregoing findings of fact, the National Labor
Relations Board hereby vacates and sets aside the election held in
this-proceeding June 29, 1944.