The Calco Chemical Company, Inc.Download PDFNational Labor Relations Board - Board DecisionsJun 2, 193913 N.L.R.B. 34 (N.L.R.B. 1939) Copy Citation In the Matter of THE CALCO CHEMICAL COMPANY, INC. and THE CALCOCRAFT In the Matter of AMERICAN CYANAMID COMPANY, THE CALOO CHEMICAL COMPANY, INC., ITS SUBSIDIARY , AND THE BEETLEWARD DEPT., A SUBDIVISION OF SAID AMERICAN CYANAMID COMPANY and CHEMICAL WORKERS LOCAL No. 20923, AMERICAN FEDERATION OF LABOR Cases Nos. R-301F and R-305, respectively.-Decided June 2, 1939 Chemical Industry-Employer: parent corporation and its wholly owned sub- sidiary found , for purposes of 9, (b ) of Act, to constitute single employer because of showing of identity of labor policy , operations , and control-Investigation of Representatives: question concerning representation of employees : employer's refusal to grant recognition as exclusive , bargaining agency until question of representation is determined by Board ; petition for, of one labor organization dismissed because of finding in prior Board Decision that such organization was company dominated ; petition for intervention , denied for failure to show sub- stantial interest in proceeding-Unit Appropriate for Collective Bargaining: employees at plants of parent corporation and wholly owned subsidiary who are paid on an hourly basis, excluding clerical and summer-student workers and those having the power to hire or discharge or enforce company discipline ; com- munity of interest ; interchange of employees ; proximity of buildings ; common use of certain facilities ; no controversy as to-Representatives : eligibility to participate in choice : employees currently on pay roll-Election Ordered-Certifi- cation of Representatives. Mr. Lester M. Levin and Mr. Jacob Blum, for the Board. Mr. George R. Martin and Colonel W. S. Weeks, of New York City, for Calco and Cyanamid. Mr. Louis Josephson, of Trenton, N. J., and Mr. Charlton Ogburn, by Mr. Arthur E. Reyman, of New York City, for the Chemical Workers. Mr. Edward W. Hamilton, of Buffalo, N. Y., and Mr. Edward P. Harris and Mr. Edward J. Mikeshock, of Bound Brook, N. J., for The Calcocraft. Mr. Samuel L. Rothbard, of Newark, N. J., for District 50. Miss Ida Klaus, of counsel to the Board. 13 N. L. R. B., No. 5. 34 THE CALCO CHEMICAL COMPANY DECISION AND DIRECTION OF ELECTION 35 STATEMENT OF THE CASE On July 13, 1937, The Calcocraft filed with the Regional Director for the Second Region (New York City) a petition alleging that a question affecting commerce had arisen concerning the representation of employees of The Calco Chemical Company, Inc.,' Bound Brook, New Jersey, herein called Calco, and requesting an investigation and certification of representatives pursuant to Section 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. On August 26, 1937, Chemical Workers Local No. 20923, herein called the Chemical Workers, filed with the Regional Director for the Sec- ond Region (New York City) a petition alleging that a question affecting commerce had arisen concerning the representation of em- ployees of American Cyanamid Company at its plant in Bound Brook, New Jersey, herein called Cyanamid, and of its subsidiary, Calco, and requesting an investigation and certification of representatives pursuant to Section 9 (c). On August 30, 1937, the National Labor Relations Board, herein called the Board, acting pursuant to Section 9 (c) of the Act and Article III, Section 3, of National Labor Rela- tions Board Rules and Regulations-Series 1, as amended, ordered an investigation in accordance with the petition of The Calcocraft and authorized the Regional Director to conduct it and provide for an appropriate hearing upon due notice. On September 3, 1937, the Board ordered a similar investigation in accordance with the petition of the Chemical Workers and, pursuant to Article III, Section 10 (c) (2), of its Rules and Regulations, ordered the consolidation, for purposes of hearing, of the two cases and of a proceeding previously commenced under Section 10 (b) of the Act. The Decision and Direc- tion of Election herein are concerned only with the petitions of The Calcocraft and the Chemical Workers, as these two cases have been severed by order of the Board, dated April 22, 1938, from the pro- ceeding under Section 10 (b) of the Act. On September 2, 1937, the Regional Director issued a notice of hearing, copies of which were duly served upon Calco, Cyanamid, The Calcocraft, the Chemical Workers, and Chemical Workers Local Industrial Union No. 33, a labor organization affiliated with the Com- mittee for Industrial Organization and claiming to represent em- 1 At the hearing the names of both companies were claimed by their counsel to have been stated incorrectly in the title of the cases . The correct names of both companies are herein given 36 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ployees directly affected by the investigation. Pursuant to the no- tice, a hearing on the complaint and the petitions for investigation and certification of representatives was held on September 8 through September 30, 1937, at Somerville, New Jersey, before Charles E. Persons, the Trial Examiner duly designated by the Board. The Board, Calco, Cyanamid, The Calcocraft, and the Chemical Workers were represented by counsel and participated in the hearing. No ap- pearance was made in behalf of Chemical Workers Local Industrial Union No. 33. Full opportunity to be heard, to examine and cross- examine witnesses, and to introduce evidence bearing on the issues was afforded all parties at the hearing. On April 16, 1938, the Board found that the record was inadequate for a determination of the issues raised by the petitions for investiga- tion and certification and, pursuant to Article III, Section 8, of its Rules and Regulations, ordered further hearing and authorized the Regional Director to provide for it upon due notice. On May 2, 1938, the Regional Director issued a notice of further hearing, copies of which were duly served upon all parties who had appeared at the original hearing. Pursuant to the notice, such further hearing was held on May 5, 1938, in New York City, before Wright Clark, the Trial Examiner duly designated by the Board. All parties who appeared at the first hearing again appeared and were represented by counsel. The Calcocraft was also represented by its president and recording secretary. United Mine Workers of America, District 50, C. I. 0., herein called District 50, having petitioned for leave to in- tervene in the proceeding, was represented by counsel at this hearing. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evidence bearing on the issues was afforded all parties at the hearing. At the commencement of the second hearing, evidence was offered in behalf of District 50 in support of its petition for intervention. After all such evidence had been adduced, the Trial Examiner denied the petition of District 50 for failure to show a substantial interest in the proceeding. The ruling is hereby affirmed. During the course of each hearing the Trial Examiner made several rulings on motions and on objections to the admission of evidence. The Board has reviewed the rulings of the Trial Examiner and finds that no prejudicial errors were committed. The rulings are hereby affirmed. On April 28, 1938, the Board issued a Decision and Order in the proceeding commenced under Section 10 (b) of the Act, finding that Calco had dominated The Calcocraft and had interfered with its administration and contributed support to it, and ordering Calco to withdraw recognition therefrom as a bargaining agency for any of THE CALCO CHEMICAL COMPANY 37 its employees and to disestablish it as such agency.2 Thereafter, on June 23, 1938, the Board issued a Decision and Direction of Election in the instant proceeding, dismissing the petition of The Calcocraft on the ground that Calco had previously been ordered to withdraw recognition from it and to disestablish it as a bargaining agency for any of its employees.3 On August 18, 1938, the Board set aside the Decision and Order previously issued by it on April 28, 1938, in the proceeding commenced under Section 10 (b) of the Act. Subse- quently, on October 18, 1938, the Board vacated the Decision and Direc- tion of Election of June 23, 1938, and all subsequent proceedings. The proceeding on the complaint was finally disposed of on April 17,1939, by the issuance of a Decision and Order finding that Calco had dominated The Calcocraft, had interfered with its formation and administration and had contributed support to it, and ordering Calco to cease and desist from recognizing The Calcocraft as a repre- sentative of any of its employees for the purpose of dealing with Calco concerning grievances, labor disputes, rates of pay, wages, hours of employment, or other conditions of employment.4 As Calco had pre- viously complied with the recommendation of the Trial Examiner that it disestablish The Calcocraft as a bargaining agency for its employees, the Board did not order disestablishment. In view of our Decision and Order of April 17, 1939, we shall dismiss the petition of The Calcocraft for the reason that the re- spondent Calco has been ordered to withdraw recognition from it as a collective bargaining agency and it cannot, therefore, participate in a proceeding for an investigation and certification of representa- tives under Section 9 (c) of the Act. On May 23, 1939, the Chemical Workers filed a "supplemental and amended" petition requesting the Board to investigate further the question concerning representation. The Direction of Election set forth below will dispose of both petitions of the Chemical Workers. Upon the entire record in the case, the Board makes the following : FINDINGS OF FACT I. THE BUSINESS OF THE COMPANIES American Cyanamid Company is a Maine corporation, with its principal place of business and sales offices in New York City. 2 Matter of Calco Chemical Company, Inc and American Cyanamid Company and Chemi- cal Workers Local No. 20928, A. F. of L., 6 N. L. R. B , No 125. 3 Matter of Calco Chemical Company, Inc. and The Calcocraft and Matter of American Cyanamid Company, Inc., The Calco Chemical Co., Its Subsidiary , and the Beetlewa) e Dept., A Subdivision of Said American Cyanamid Company and Chemical Workers Local No. 20923, American Federation of Labor, 7 N. L R. B., No. 124. 'Matter of Calco Chemical Company, Inc., and American Cyanamid Company and Chemc- caj Workers Local No. 20923, A. F. of L., 12 N. L. R. B. 275. 187930-39-vol. 13-4 38 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Through its own operations and through seven controlled companies, six of which are wholly owned subsidiaries, this company is engaged in the manufacture and the sale, throughout a large part of the United States and in foreign countries, of chemicals, dyestuffs, and pharmaceutical and surgical products. This company owns and directly operates a plant at Bound Brook, New Jersey, where it employs somewhat over 200 people and is engaged chiefly in the manufacture of laminating syrups, of a chemical known as "beetle cream" for use in tracing textiles, and of powder for sale to molders of "beetleware" products. The name "beetle" is registered as a trade- mark for use in interstate commerce. In excess of 90 per cent of these products are sold to purchasers in various areas outside the State of New Jersey. The average monthly value of all sales is over $85,000. This company is the second largest manufacturer in the United States of products of the beetleware type. Approximately 60 per cent of the principal raw materials, includ- ing formaldehyde, urea, and pulp, and 80 per cent of the supplies used in the manufacturing operations at the Bound Brook plant are derived from sources outside the State and amount in value to about $28,000 monthly. The Calco Chemical Company, Inc., a wholly owned subsidiary of American Cyanamid Company, maintains plants at Newark and Bound Brook, New Jersey. At Bound Brook this company employs about 2,500 people and is engaged in the manufacture of dyestuffs and intermediates. The latter type of product is sold for manufacture into dyestuffs and other materials. The Calco Chemical Company is one of the largest dyestuff manufacturers in the United States. This company maintains sales offices in New York City, Providence, Boston, Chicago, and Charlotte, North Carolina, and sells and delivers its Bound Brook products to the paper trades throughout the eastern half of the United States, to textile manufacturers in New England and the South, and to producers of printing ink in New York and New Jersey. Sales are also made on the Pacific Coast and in foreign countries. Sales outside the State of New Jersey represent 89 per cent of its total Bound Brook production and, during the first half of 1937, amounted to about $4,450,000. During the first half of 1937 its expenditures for raw materials, including heavy chemicals and coal-tar products, exceeded $2,000,000, of which about 65 per cent represented purchases shipped directly to the Bound Brook plant from points outside the State of New Jersey and east of the Mississippi River and north of the Ohio River. Some of the products of this company appear under trade-marks, registered for use in interstate commerce, including the word "Calco" placed inside a diamond. THE CALCO CHEMICAL COMPANY 39 Each of the companies admits that, in the course of its operations, it has caused a' substantial amount of raw materials and manufac- tured products to be transported in interstate and foreign commerce. II. THE ORGANIZATION INVOLVED Chemical Workers Local No. 20923, affiliated with the American Federation of Labor, is a labor organization admitting to membership all employees of both companies who are paid on an hourly basis, excluding clerical workers and those having the power to hire or discharge or enforce company discipline. III. THE QUESTION CONCERNING REPRESENTATION The record shows, and neither company denies, the following facts with regard to attempts by the Chemical Workers at collective bar- gaining : On July 21, 1937, a committee of the Chemical Workers, accompanied by an organizer, presented to Edmund Dempsey, works manager of Calco, a proposed contract covering the employees of Calco and Cyanamid and requested him to negotiate with them on the basis of that contract as the exclusive bargaining representative of the employees of both companies. Dempsey advised the committee that the matter would have to be considered by the companies' legal advisers. Thereafter, on July 26, 1937, the committee and the or- ganizer met with the companies' lawyer and with Dempsey and Taylor, vice president of Calco. George Martin, counsel for both companies, stated at that conference that they could not accord the Chemical Workers recognition as the exclusive bargaining agency until such time as the Board determined the appropriate unit and resolved the question of representation. The committee refused to accept his offer to bargain with the Chemical Workers only for its members. At each of these conferences, the committee maintained that the Chemical Workers represented a majority of the employees of Calco and Cyanamid in the unit which the Chemical Workers re- garded as appropriate. Both companies admit the existence of a question concerning representation. We find that a question has arisen concerning the representation of employees of Calco and Cyanamid. TV. THE EFFECT OF THE QUESTION CONCERNING REPRESENTATION UPON COMMERCE We find that the question concerning representation which has arisen, occurring in connection with the operations of Calco and Cyanamid described in Section I above, has a close, intimate, and substantial relation to trade, traffic, and commerce among the several 40 DECISIONS OF NATIONAL LABOR RELATIONS BOARD States, and tends to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE APPROPRIATE UNIT The Chemical Workers contends that all employees of Calco and Cyanamid who are paid on an hourly basis, excluding clerical and summer-student workers and those having the power to hire or dis- charge or enforce company discipline, constitute a unit appropriate for the purposes of collective bargaining. The companies do not object to the unit as thus urged by the Chemical Workers but point out that, although .Calco is a wholly owned subsidiary of Cyanamid, the two are separate and distinct as to management and opei ation. It was, however, stated at the hearing on behalf of the companies that they resort to a common source for consultation and advice as to labor-organization problems and that there have been dealings between representatives of both companies and the Chemical Work- ers on behalf of the employees of the two companies . In addition, the record reveals the following facts as to the relationship between Calco and Cyanamid : Hiring of employees for Cyanamid is typically handled by the employment manager of Calco on requisition from Cyanamid and subject to the disapproval of Cyanamid's employ- ment manager. Wage rates are identical in both companies for similar work and identical increases in wages are effected in both simultaneously. Employees of both companies are usually paid by Calco at the same window, with arrangements for reimbursement of Calco by Cyanamid. We find, upon the basis of identity of labor policy, operations, and control, that, for the purposes of Section 9 (b) of the Act, both companies constitute a single employer." In support of its claim as to the appropriate unit the Chemical Workers points to the following undisputed facts as showing an unquestionable community of interest between the employees of Calco and of Cyanamid compelling collective bargaining as a unit : All the buildings of Calco and Cyanamid are situated in the same geographical area and within a common enclosure , the nearest struc- t ores of each being no more than 75 feet apart. There is provision for joint use by both groups of employees of the time punch clock, the cafeteria, and smoking areas. Membership in the credit union 5 See Matter of Todd Shipyards Corporation , Robins Dry Dock and Repair Co., and Tiet- jen and Lang Dry Dock Co . and Industrial Union of Marine and Shipbuilding Workers of America, 5 N. L. R. B . 20; Matter of C. A. Lund Company and Novelty Workers Union, Local 186G (A. F. of L ) successor, Matter of Christian A. Lund, doing business as C. A. Lund Company and Northland Ski Manufacturing Company , a corporation and Wooden- aeare Workers Union, Local 20431 , and Matter of C. A. Lund Company and Northland Ski Manufacturing Company and Wooden¢eare Workers Union, Local 20481, 6 N. L. R . B. 423, affirmed, 103 F. (2d) 815 (C C A 8th) THE CALCO CHEMICAL COMPANY 41 is open to Cyanamid and Calco employees, and both groups are covered by one plan of group insurance. There is also an inter- change of employees between both companies on occasion. Several employees testified, in this connection, that they had been temporarily transferred from Calco to Cyanamid without any change in duties, wage rates, seniority status, or working conditions and were subse- quently returned to Calco under the same conditions. We hold that the employees of Calco and Cyanamid who are paid on an hourly basis, excluding clerical and summer-student workers and those having the power to hire or discharge or enforce company discipline, constitute a unit appropriate for the purposes of collective bargaining and that said unit will insure to employees of Calco and Cyanamid the full benefit of their right to self-organization and to collective bargaining and otherwise effectuate the policies of the Act. VI. THE DETERMINATION OF REPRESENTATIVES The Chemical Workers claims that, as of the date of the first hear- ing, about 1,180 pledge cards, each authorizing representation of the signer by the Chemical Workers, had been signed and turned over to its secretary. The pay rolls submitted by both companies show that, as of September 1, 1937, there were approximately 1,800 em- ployees in the unit hereinbefore found appropriate. The pledge cards were not produced at the hearing and were not checked against the companies' pay rolls. We conclude that, while the Chemical Workers showed a substantial interest in the proceeding at the time of the hearing, it failed to establish its claim of majority representa- tion. Moreover, approximately one year and eight months have elapsed since the date of the hearing. We therefore find that an election by secret ballot is necessary effectively to resolve the question concerning representation. In view of the length of time which has elapsed since the filing of the Chemical Workers' petition and the hearing thereon, we find that an election among employees in the unit hereinbefore found appropriate who are currently employed by both companies will most satisfactorily and expeditiously determine the question concerning representation. On the basis of the above findings of fact, and upon the entire record in the proceeding, the Board makes the following : CONCLUSIONS OF LAW 1. A question affecting commerce has arisen concerning representa- tion of employees of The Calco Chemical Company, Inc., and Amer- ican Cyanamid Company, Bound Brook, New Jersey, within the 42 DECISIONS OF NATIONAL LABOR RELATIONS BOARD meaning of Section 9 (c) and Section 2 (6) and (7) of the National Labor Relations Act. 2. All employees of Calco and Cyanamid at the Bound Brook, New Jersey, plants who are paid on an hourly basis, excluding clerical and summer-student workers and those having the power to hire or discharge or enforce company discipline, constitute a unit appro- priate for the purposes of collective bargaining, within the meaning of Section 9 (b) of the National Labor Relations Act. 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 Re- lations Act, and pursuant to Article III, Section 8, of National Labor Relations Board Rules and Regulations-Series 1, as amended, it is hereby DIRECTED that, as part of the investigation ordered by the Board to ascertain representatives for the purposes of collective bargaining with The Calco Chemical Company, Inc., and American Cyanamid Company, Bound Brook, New Jersey, an election by secret ballot shall be conducted within fifteen (15) days from the date of this Direc- tion, under the direction and supervision of the Regional Director for the Second Region, acting in this matter as agent for the Na- tional Labor Relations Board and subject to Article III, Section 9, of said Rules and Regulations among the employees of said com- panies at the Bound Brook plants who are paid on an hourly basis and who were employed during the pay-roll period next preceding the date of this Decision and Direction of Election, including em- ployees who did not work during such pay-roll period because they were ill or on vacation, but excluding clerical and summer-student workers and those having the power to hire or discharge or enforce company discipline, and excluding also those who have since quit or been discharged for cause, to determine whether or not they desire to be represented, for the purposes of collective bargaining, by Chemical Workers Local No. 20923, affiliated with the American Federation of Labor. AND IT IS ORDERED that the petition of The Calcocraft be, and it hereby is, dismissed. MR. WILLIAM M. LEISERSON took no part in the consideration of the above Decision and Direction of Election. THE CALCO CHEMICAL COMPANY 43 [ SAME TITLE] AMENDMENT TO DIRECTION OF ELECTION June 15, 1939 On June 2, 1939, the National Labor Relations Board, herein called the Board, issued a Decision and Direction of Election in the above- entitled proceedings, directing that an election by secret ballot be held within fifteen (15) days from the date of the Direction under the direction and supervision of the Regional Director for the Second Region to determine whether or not the employees in the unit found by the Board to be appropriate desire to be represented by Chemical Workers Local No. 20923, affiliated with the American Federation of Labor. Upon joint petition of Chemical Workers Local No. 20923 and the American Federation of Labor requesting an extension of the time within which the election shall be conducted and a substitution on the ballot of the name of Chemical Workers Local No. 22031, alleged to be the successor to Chemical Workers Local No. 20923, the Board hereby amends the above-mentioned Direction of Election by strik- ing therefrom the words "within fifteen (15) days from the date of this Direction" and substituting therefor the words "within thirty (30) days from the date of this Direction" and by striking therefrom the words "Chemical Workers Local No. 20923" and substituting there- for the words "Chemical Workers Local No. 22051." MR. J. WARREN MADDEN took no part in the consideration of the above Amendment to Direction of Election. 13 N. L. R. B., No. 5a. [SAME TITLE CERTIFICATION OF REPRESENTATIVES July 15, 1939 On June 2, 1939, the National Labor Relations Board, herein called the Board, issued its Decision and Direction of Election in the above-entitled proceedings. The Direction of Election pro- vided that an election by secret ballot be conducted within fifteen (15) days from the date of the Direction among the employees of The Calco Chemical Company, Inc., and American Cyanamid Com- pany, at the Bound Brook plants, who are paid on an hourly basis and who were employed during the pay-roll period next preceding 44 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the date of the Direction, including employees who did not work during such pay-roll period because they were ill or on vacation, but excluding clerical and summer-student workers and those hav- ing the power to hire or discharge or enforce company discipline, and excluding also those who have since quit or been discharged for cause, to determine whether or not they desire to be represented, for the purposes of collective bargaining, by Chemical Workers Local No. 20923, affiliated with the American Federation of Labor. On June 15, 1939, upon joint petition of Chemical Workers Local No. 20923 and the American Federation of Labor, the Board amended the above-mentioned Direction of Election by striking therefrom the words "within fifteen (15) days from the date of this Direction" and substituting therefor the words "within thirty (30) days from the date of this Direction" and by striking therefrom the words "Chemical Workers Local No. 20923" and substituting therefor the words "Chemical Workers Local No. 22051." Pursuant to the Direction of Election as amended, an election by secret ballot was conducted on June 29, 1939, under the direction and supervision of the Regional Director for the Second Region (New York City). On June 30, 1939, the Regional Director, acting pursu- ant to Article III, Section 9, of National Labor Relations Board Rules and Regulations-Series 1, as amended, issued an Intermedi- ate Report on the election, copies of which were duly served upon the parties. No objections or exceptions to the Intermediate Report have ben filed by any of the parties. As to the balloting and its results, the Regional Director reported as follows : Total Number Eligible to Vote__________________________ 1, 600 Total Number of Ballots Cast_____________________________ 1, 497 Total Number of Ballots Counted_______________________ 1, 365 Total Number of Votes in favor of Chemical Workers Local No. 22051, affiliated with the A. F. of L__________________ 986 Total Number of Votes against afore-mentioned union------- 379 Total Number of Blank Votes_____________________________ 0 Total Number of Void Ballots_____________________________ 0 Total Number of Challenged Ballots_______________________ 132 By virtue of and pursuant to the power vested in the National Labor Relations Board by Section 9 (c) of the National Labor Re- lations Act, 49 Stat. 449, and pursuant to Article III, Sections 8 and 9, of National Labor Relations Board Rules and Regulations- Series 2, IT IS HEREBY CEP,TIFIED that Chemical Workers Local No. 22051, affiliated with the American Federation of Labor, has been desig- THE CALCO CHEMICAL COMPANY 45 nated and selected by a majority of the employees of The Calco Chemical Company, Inc., and American Cyanamid Company, at the Bound Brook plants, who are paid on an hourly basis, excluding clerical and summer-student workers and those having the power to hire or discharge or enforce company discipline, as their repre- sentative for the purposes of collective bargaining and that, pur- suant to the provisions of Section 9 (a) of the Act, Chemical Work- ers Local No. 22051, affiliated with the American Federation of Labor, is the exclusive representative of all such employees for the purposes of collective bargaining in respect to rates of pay, wages, hours of employment, and other conditions of employment. 13 N. L. R. B., No. 5b. Copy with citationCopy as parenthetical citation