The Abbott Laboratories, Inc.

National Labor Relations Board - Board Decisions

Apr 22, 1946

67 N.L.R.B. 561 (N.L.R.B. 1946)

In the Matter of THE ABBOTT LABORATORIES, INC. and DRUG TRADE
SALESMEN'S UNION, CIO
Case No. 2-R-6158.-Decided April 22, 1946
Messrs. E. L. Shattuck and H. C. Harris , of New York City, for
the Company.
Messrs. Mac Mattis and Leonard Wacker, of New York City, for the
Union.
Mr. Martin T. Camacho , of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
Upon an amended petition duly filed by Drug Trade Salesmen's
Union, CIO, herein called the Union, alleging that a question affect-
ing commerce had arisen concerning the representation of employees
of The Abbott Laboratories, Inc., New York City, herein called the
Company, the National Labor Relations Board provided for an appro-
priate hearing upon due notice before Robert Silagi, Trial Examiner.
Said hearing was held at New York City on March 14, 1946. The
Company and the Union appeared and participated. All parties were
afforded full opportunity to be heard, to examine and cross-examine
witnesses, and to introduce evidence bearing on the issues. The Trial
Examiner's rulings made at the hearing are free from prejudicial
error and are hereby affirmed. All parties were afforded an oppor-
tunity to file briefs with the Board.,
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
1. THE BUSINESS OF TIIE COMPANY
The Abbott Laboratories, Inc., is an Illinois corporation maintain-
ing its general office in North Chicago, Illinois. The Company oper-
' Subsequent to the bearing , the parties eptered into a stipulation for correction of the
tianscnpt of the record made at the hearing This stipulation is hereby made, and is
part of the record in this proceeding and the record corrected in accordance with the
stipulation
67 N. L R B, No 73.
561
692148-46-vol 67-37
562 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ates a number of plants and warehouses throughout the United States.
However, this proceeding is concerned solely with the Company's
branch office located in New York City. At this branch office, the
Company is engaged in the receipt, warehousing, sale, and distribution
of pharmaceuticals, medicinal chemicals, biologicals, vitamin products,
sundry drugs, and drug preparations. These products are sold and
distributed to wholesale drug houses, retail druggists, physicians,
dentists, veterinaries, hospitals and similar institutions. During the
year 1945 more than $100,000 worth of the above-mentioned products
were delivered to said branch office, the major portion. of which was
shipped to New York City from points outside the State of New
York. During the same year, the value of the products sold and
distributed by said branch office exceeded $100,000, part of which was
shipped to points within the State of New York, the balance being
shipped to points in New Jersey and Connecticut.
The Company concedes that it is engaged in commerce within the
meaning of the National Labor Relations Act.
II. THE ORGANIZATION INVOLVED
Drug Trade Salesmen's Union, affiliated with the Congress of In-
dustrial Organizations, is a labor organization admitting to member-
ship employees of the Company. ,
III. THE QUESTION CONCERNING REPRESENTATION
On or about November 26, 1945, the Union addressed a letter to the
Company informing the latter that it represented a majority of the
Company's sales representatives. The Union also requested an ap-
pointment for the purpose of discussing a collective bargaining agree-
ment with the Company. The Company did not reply to that letter.
A statement of a Board agent, introduced into evidence at the hear-
ing, indicates that the Union represents a substantial number of em-
ployees in the unit hereinafter found appropriate.'
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 Act.
IV. THE APPROPRIATE UNIT
For the purpose of distributing its products, the Company has
divided the country into 26 sales districts. Several districts are ad-
ministered through a branch office. New York has such a branch
2 The Field Examiner reported that the Union submitted 21 authorizations, all of which
were dated between November 24, 1945, and January 10, 1946. Since the Company did not
submit a pay roll, no check was made of the cards
There are, however, 28 employees within the unit petitioned for
THE ABBOTT LABORATORIES, INC. 563
office consisting of Districts 6, 20, 22, and 24.3 The Union seeks to
represent all sales representatives of the Company employed in District
No. 6. The Company, however, contends that the appropriate unit
should include the sales representatives of all 4 districts which make
up the New York branch office.
All sales representatives have substantially the same duties, quali-
fications and pay range. Their job is to visit physicians, hospitals,
retail pharmacies and wholesale druggists, and sell them the Com-
pany's products. Nearly all are registered pharmacists.
Each of the four districts maintains its office within the confines of
its geographical limits; the sales representatives, however, file daily
reports with the New York branch office. The sales representatives
of Districts 20, 22, and 24 do considerable traveling, at company
expense, and usually by automobile. It is necessary at times for some
of these salesmen within the three latter districts to leave their homes
for a night or two. The sales representatives of District No. 6, on the
other hand, work within the metropolitan area of New York City
and with one exception rarely find it necessary to make overnight
business trips. Aside from semi-annual conventions of 2 or 3 days'
duration, there is no contact among the sales representatives of the
four districts. However, the salesmen within each district meet more
often or occasionally to discuss their problems and exchange views.
Each district is separately managed by a sales manager who exercises
no supervision over sales representatives outside of his own district.
District sales managers can hire new salesmen to cover their own
districts.' If there is a desirable opening available in a certain district
then men who have been in that district prior to the opening are given
first consideration. For the purpose of sales promotion the Company
fosters sales competitions wherein prizes for high men are awarded
within the district, as well as high men divisionally and nationally.
During the last 4 years there has beery but one transfer of a sales
representative from one district to another within the New York
branch office. The Union has confined its organizational efforts to the
sales representatives of District No. 6.
In view of the foregoing facts and in the absence of any history of
collective bargaining, we believe that a unit consisting exclusively of
sales representatives of District No. 6 is appropriate at this time.5 We,
The geographical areas covered by these distrints are as follows
Dc,tnct 6-The counties of New Yolk, Pronx, Kings, Queens, Nassau and Suffolk all
in the State of New York
District 20-The territoi y nnchycen Ss racuse and New Yolk City,
District 22-Half of the northern pant of New Jersey and three counties in New York.
District 24--The State of Connecticut
The parties agree that district sales managers are supervisory employees and should
he excluded f0 om any unit found to be appropriate
c See Matter of Winthrop Chemical Compani,, 59 N L R. B 1550; and Matter of
Norfolk Southern Bits Corponanon, 60 N. L. R. B 630
564 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
therefore find that all sales representatives of the Company , employed
in District No. 6, but excluding the district sales manager and any
other supervisory employees with authority to hire, promote, dis-
charge, discipline , or otherwise effect changes in the status of
employees , or effectively recommend such action , constitute a unit
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 question concerning representation which
has arisen be resolved by an election by secret ballot among the
employees in the appropriate unit who were employed during the
pay-roll period immediately preceding the date of the Direction of
Election herein, subject to the limitations and additions set forth in
the Direction.
DIRECTION OF ELECTION
By virtue of and pursuant to the power vested in the National Labor
Relations Board by Section 9 ( c) of the National Labor Relations Act,
and pursuant to Article III, Section 9, of National Labor Relations
Board Rules and Regulations-Series 3, as amended , it is hereby
DIRECTED that, as part of the investigation to ascertain representa-
tives for the purposes of collective bargaining with The Abbott
Laboratories , Inc., New York City, 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 Second 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 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
the said pay-roll period because they were ill or on vacation or tem-
porarily laid off , and including employees in the armed forces of the
United States who present themselves in person at the polls, but
excluding those employees who have since quit or been discharged for
cause and have not been rehired or reinstated prior to the date of
the election , to determine whether or not they desire to be represented
by Drug Trade Salesmen 's Union, CIO, for the purposes of collective
bargaining.
CHAIRMAN HERZOG took no part in the consideration of the above
Decision and Direction of Election.