The Lord Baltimore Press

National Labor Relations Board - Board Decisions

Jan 9, 1964

145 N.L.R.B. 888 (N.L.R.B. 1964)

888 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
WE WILL NOT engage in, or give the appearance of engaging in, the sur-
veillance of employees ' union activities or other concerted activities by telling
employees we know who are for Textile Workers Union , or any other labor
organization , or who have signed union cards, or by other means.
WE WILL NOT engage in like or related conduct that interferes with, restrains,
or coerces employees with respect to their rights voluntarily to engage in union
activity, embrace membership in Textile Workers Union , or any other labor
organization, or select it as their collective -bargaining representative , or to en-
gage in other concerted activity involving mutual aid or protection.
All our employees are free to become , remain , or refrain from becoming or re-
maining, members of Textile Workers Union of America , C.I.O.-A.F.L., C.L.C., or
any other labor organization.
GORDON MILLS, INC.,
Employer.
Dated------------------- By-------------------------------------------
(Representative ) (Title)
This notice must be posted for 60 consecutive days from the date of posting, and
must not be altered, defaced, or covered by any other material.
Employees may communicate directly with the Board's Regional Office, 528
Peachtree-Seventh Building , 50 Seventh Street NE., Atlanta, Georgia, Telephone
No. 876-3311, Extension 5357, if they have any questions concerning this notice or
compliance with its provisions.
The Lord Baltimore Press and Amalgamated Lithographers of
America, Local 17, Petitioner . Case No. 20-RC-4568. Janu-
ary 9, 1964
SECOND SUPPLEMENTAL DECISION AND DIRECTION
Pursuant to the Board's Supplemental Decision, Order, and Di-
rection of Second Election dated April 26, 1963,i and as amended May
3, 1963, an election by secret ballot was conducted by the Regional
Director for the Twentieth Region on July 2, 1963, among the em-
ployees in the appropriate unit. At the conclusion of the balloting
the parties were furnished with a tally of ballots which showed that
of approximately 26 eligible voters, 25 ballots were cast, of which
8 were for the Petitioner, 10 were for the Intervenor, Printing Spe-
cialties and Paper Products Local Unions Nos. 362 and 382, Inter-
national Printing Pressmen and Assistants Union, AFL-CIO, and
7 ballots were challenged. The number of challenges was sufficient
to affect the results of the election. Thereafter, the Petitioner filed
timely objections to conduct allegedly affecting the results of the
election.
After an investigation, the Regional Director, on August 16, 1963,
issued his report on challenged ballots and objections in which he
recommended that 1 challenge be sustained, and 6 challenges be over-
ruled. He further recommended that the election of July 2, 1963, be
I The Lord Baltimore Press, 142 NLRB 328.
145 NLRB No. 91.
THE LORD BALTIMORE PRESS 889
set aside. Thereafter, the Employer filed exceptions to the Regional
Director's report on objections to the election 2
The Board has considered the Petitioner's objections, the Regional
Director's report and recommendations, and the Employer's excep-
t i ons thereto, and makes the following findings :
In recommending the setting aside of the second election, the Re-
gional Director found that in speeches at meetings with employees
on June 27 and July 1, 1963, the Employer was merely reiterating
and reaffirming positions which the Board had found interfered with
the employees' free choice of a bargaining representative in it prior
decision.'
In that prior decision, the Board found that the Employer had sent
a letter to employees indicating that the consequences of choosing the
Petitioner were : (1) The Employer might be forced out of the offset
business, thus eliminating the jobs of these employees; (2) the Peti-
tioner's demands would be so unreasonable that the Employer would
have to resist and Petitioner would have to call a strike; and (3) the
Employer would in no event bargain with Petitioner because it
deemed the unit inappropriate. The Board concluded that the total
impact of such letter was coercive and prevented the employees' free
choice of a bargaining representative, and ordered the original elec-
tion set aside.
A close examination of the Employer's speeches 4 here does not dis-
close either an express or implied threat that the Employer might go
out of business and thereby eliminate the jobs of its employees if the
Petitioner were selected as bargaining representative. Nor was there
any implication of the inevitability of a strike should the Union
win. Finally, unlike its statement made approximately 20 months
previously, the Employer did not contest the appropriateness of the
unit nor did it indicate that it would not bargain with respect to such
unit. We are satisfied, therefore, that the speeches, when viewed in
context, were neither coercive nor were they otherwise calculated to
deprive the employees of their freedom of choice in selecting a bar-
gaining representative. Accordingly, we hereby overrule the objec-
tions and shall direct the Regional Director to open and count those
challenged ballots which he recommended be overruled and to issue
a revised tally of ballots and an appropriate certificate.
[The Board directed that the Regional Director for the Twentieth
Region shall, within 10 days from the date of this Direction, open
and count the ballots of William Pickrell, Erdman Rath, Dennis
2 As no exceptions were filed to the Regional Director 's findings and recommendations
with respect to the challenged ballots , they are adopted pro forma
2 The Lord Baltimore Press, supra, footnote 1.
4 The text of the Employer's speech on June 27, 1963, is attached hereto as Appendix A.
890 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Round, Albert Silva, Robert Turner, and Harold Schenewark; and
serve upon the parties a revised tally of ballots, including therein
the count of the above ballots, and an appropriate certificate.]
MEMBER BROWN took no part in the consideration of the above Sec-
ond Supplemental Decision and Direction.
APPENDIX A
TALK BY W. B . BANKS TO OFFSET EMPLOYEES-SAN LEANDRO-.TUNE 27, 1963
I want to apologize for the fact that I am going to have to read my remarks this
afternoon . I would like nothing better than to talk with all of you informally and
straight from the shoulders-with no prepared , written material . Unfortunately, I
am going to read my talk because under the circumstances that exist here in San
Leandro this week , I would not want to have my thoughts incorrectly referred to
later on.
Before getting into the principal subject of this meeting-the re-run election next
Tuesday-even though it is to some extent repetitive of my remarks at the big meet-
ing this afternoon-I would like to take a few minutes to review again the extremely
competitive situation in which our Company has found itself for the past 12 to
18 months . I want to spend a little more time talking about competition because
I cannot over-emphasize the importance of this subject to all of us. The real basis
for economic security and growth for this plant , and LBP as a whole-or any
company for that matter , rests on how well we meet our competition head-on.
As I have said on numerous occasions , to folks in all of our plants, it is a basic
fact of economic life that no business can survive , let alone prosper and grow, if it
cannot meet and do better than its competitors . To the extent that Lord Baltimore
Press can do better in providing quality cartons, at competitive price levels, when
our customers require them , then we will be doing better than our competition.
These three things ; quality, service and competitive cost are what determines how
well we can meet competition . And unless we can meet and do better than our
competitors, the kind of security we all want just will not exist.
The kind of real economic security that we all want for ourselves and our families
can only be secured by continuous full employment of our plants. And the only
way to keep any plant operating is by being able to secure enough sales, at reason-
able prices , to keep our equipment busy. I know of no Union or Union contract
that provides work for this plant , or any other plant. In fact , if a Union imposes
uncompetitive conditions on an employer it can make it almost impossible for the
Company to secure enough sales to provide full and regular employment. Some
companies have even been forced out of business because they could not survive as
a result of competitive disadvantage . There have been several recent cases in our
own industry . I know you are familiar with the closing of the Weyerhaeuser plant
at Rochester, N.Y., where the ALA had a contract . The current ALA strike going
on at the KVP-Sutherland Company in Kalamazoo , Michigan which began Au-
gust 27th of last year is another example of what can happen to the economic
security of a large group of people and their company . The ALA members at
KVP-Sutherland have not received a pay check in 10 months. And, right here in
San Francisco , I understand that three shops under contract to the ALA have closed
down since the first of the year . To repeat-No Union or Union contract can pro-
vide what this or any company needs to be successful-the ability to secure enough
sales to keep its people and equipment busy. On the other hand, irresponsible
Union leadership or uncompetitive conditions can make it practically impossible for
a company to do this. Competition then-or rather a company 's ability to beat its
competitors-is really the key to job security for all of us. And these days, competi-
tion covers a lot more ground that it used to.
For example, we now compete with-
1. Our Traditional Competitors-that is other domestic folding carton companies
who have been in the business for a long time-some almost as long as we have.
These companies , like ourselves , have been trying to increase their share of the fold-
ing carton market. Nearly all of these companies have greatly improved their
quality and service while lowering production costs.
THE LORD BALTIMORE PRESS 891
2. NEW Competitors-In recent years we have seen an increasing number of new
competitors arrive on the folding carton scene. Companies such as West Virginia,
Riegel and Gulf States have entered the folding carton industry by building new
plants. Others have acquired existing independent companies and entered new
market areas . Here in the Bay Area, you are familiar with the acquisition of Andre
Paper Box by St. Regis, and of Mead Corporation 's plans for a new plant.
3. Other Packaging Materials-Another area is the increasing competition from
other packaging materials. I'm sure that as you have walked through a supermarket
recently you have noticed the amazing variety of materials now being used to
attractively package a large variety of consumer goods. I'm sure you have noticed
the increased use of plastic and aluminum in containers which have traditionally
been made of boxboard . Now, while this kind of competition can have a serious
effect on carton companies , I know we can offset this if we do a job with new ideas
and top performance . The packaging industry always has been and always will be a
dynamic, challenging kind of business . This is what makes it interesting . And while
some other materials make inroads into what we regard as traditional boxboard
areas, we have made inroads in some of the traditional metal and plastic container
areas. For example , we have participated in the growing "boiled-in-bag" food field.
These are the kind of special and very tasty foods formerly packaged in cans and
jars. This "boiled-in-bag" food field combines attractive folding cartons with the
positive sealing of plastics . Your wives have probably used some of these foods.
Inside a folding carton there are usually one or more plastic bags containing the
ingredients , which are placed "in-the-bag" in boiling water . We have done work in
this field for the Morton Company and the Kitchens of Sara Lee. This whole field
holds great promise for folding cartons and we expect to participate fully.
I also foresee great possibilities in other dry and liquid packaging areas when the
principal shortcoming of folding cartons is overcome-namely, their sealing systems.
A great deal of research is presently going on to solve these problems and some
significant successes have been made . For example, I'm sure you have seen motor
oil being sold at service stations in paperboard cans. I believe it is only a short
step to developing positive -seal leakproof folding cartons which can be collapsed
and shipped flat for a whole list of materials which presently require cans , and glass
jars. These are rigid, non-collapsible containers that waste a lot of space in shipping
and storing.
The important thing to bear in mind about the kind of competition is that we
must constantly and actively be seeking new and better ways to utilize our raw mate-
rial in attractive , economic packaging for our customers ' products . There will
always be periods of time when one material causes some dislocations at the expense
of others . The answer, as I have suggested before, is to continually search for and
devise new ways for using our material . And, this your Company is doing. The
Creative Marketing Center which you heard Paul Dearborn describe a little while
ago is just one of the research and development tools at our disposal . International
Paper Company has a continuing basic research program in progress at several
laboratories to seek out and test new uses for forest products . In addition , our own
LBP research and development activities are devoted to specialized folding carton
research . Because of these many creative activities , I have great faith in our ability
to meet the test of technological change in our particular segment of the packaging
industry.
Now, in spending as much time as I have in talking about competition , I wanted
to establish the basis for some comments about the election next Tuesday. What
I have been trying to say is that while we have had, and continue to have, some
serious competitive problems, the future is bright.
In the long run, the picture for the San Leandro plant is very bright . We feel
that while our growth here may have been temporarily delayed, we in New York
both in LBP and in International Paper management feel that this West Coast area,
and therefore the San Leandro plant, has an extremely good potential . This is part
of the reason a number of us in New York have insisted that we keep this operation
going and maintain our solid work team even in the face of substantial operating
losses for several years. And we have been extremely gratified at the way you folks
have responded to our faith in you . We are particularly pleased at the way the
Litho Department has responded to the challenge of producing a good quality
printed carton with continually less spoilage. You have worked hard and done a
good job-a job which you can be proud of . We certainly are and I want to per-
sonally thank all of you for doing your part to make San Leandro a plant we are all
892 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
proud of-and a plant which can take its place in the LBP family on an equal basis
with the other plants insofar as LBP quality printing is concerned . This, in my
book, clearly demonstrates what results from a close harmonious relationship and
teamwork between you folks, the sales organization and the management.
Now, let me comment briefly on the election next Tuesday. As you know, this is
a re-run of the election held on November 2 of 1961. The result of the election
was to defeat the ALA's attempt to enter our affairs and create what we con-
sider to be an artificial division in our manufacturing operation . We were extremely
gratified that a majority of you cast your ballots as you did and we appreciate the
vote of confidence that your ballots represented.
After the election, the ALA filed objections with the Labor Board about one
of the letters the Company sent to you at your home. The Regional Director
of the Labor Board here in San Francisco looked at the letter and ruled that
it was not improper in any way. Then the ALA appealed the Regional Director's
ruling to the Labor Board in Washington. This appeal was in Washington so
long that we had almost forgotten about it-as I'm sure most of you had. Then, after
almost 16 months, by a 2-to-1 vote a 3-man panel of the Labor Board came
out with a decision that the letter interfered with your free choice between the ALA
and the Printing Specialties and that the 1961 election should be set aside and a new
one held. We were positively amazed because as Frank Bagamery has told you,
only 5 months before our letter to you had been sent, the Labor Board said that a
similar letter to our Clinton, Iowa employees was perfectly OK.
Now, regardless of what the Labor Board, or anyone else, says about that letter
or any other communications to our employees-in any plant-I can assure you that
we believe in fair, honest treatment of our customers , our suppliers and especially
our employees. What we intended to do in our letters and talks with you was to
present the facts as honestly and directly as we knew how. In fact, let me quote you
what the dissenting NLRB member had to say about the letter which was sent to you.
"I regard the letter, the only misconduct alleged, as nothing more than a factual
statement . No contentions have been made that any statements contained therein
were false or in any way misleading. I am unable to find shocking or coercive the
employers frank and forthright statements ." We have great faith in your judgment
and intelligence . We know you are perfectly capable of making the best decision
in these kinds of matters if you are told what your rights are . For example, I know
you were told last year, and I want to repeat this, that your vote is entirely up to
you. Regardless of the outcome of the election , this Company does not intend to
discriminate against anyone , or will we permit anyone to discriminate against you.
I am not going to repeat all of the arguments and statements which have been
previously made to you regarding our opposition to the ALA. Let me make one
thing absolutely clear however, the Company's opposition to the ALA is not based
on any admiration for the Printing Specialties Union.
As I said before, no Union, in my opinion, can deliver job security.
It is fundamentally the Company and its employees, working together as a team,
that secures sales, and provides the plants and equipment which create and main-
tain jobs for all of us. No outside third party provides the money for the con-
tinuous growth and development that enables a company to increase its competi-
tive position.
Frankly, I'm not sure you need any Union to get the best the Company is able
to give. However, that's beside the point. The issue to be decided next Tuesday
is not one of whether to have "no union " or the ALA or the Printing Specialties.
A long time ago the employees of this plant decided they wanted to be represented
by a labor organization. We recognize and respect this desire.
The issue to be decided then is whether or not you as offset employees will con-
tinue to be represented by the Printing Specialties or by the ALA.
Before making up your mind, give careful consideration to the effect of your
vote on you and your families. Give careful attention to the record of the ALA
here in the Bay Area and ask yourself if they have really done a good job for their
members-and what kind of a job they can do for you. Ask yourself-will ALA
representation really be better for me as an employee of the Lord Baltimore Litho
Department?
It is a matter of public record that there is widespread unemployment among
ALA members in the Bay Area. Frank Ziegenheim tells me that since the first of
the year quite a few unemployed ALA members have applied for jobs here at our
plant. Did you know that the San Francisco local has been running bulletins and
ads to try to find work for their members? Ask yourself why the employees of the
Fibreboard Corporation voted to decertify the ALA after the ALA had been their
representative for only one year.
DELIGHT BAKERY, INC. 893
In a recent letter to you the ALA said that "you are entitled to as much as any
lithographer in Local 17 shops" Well, that might be worth saying if Local 17
lithographers had done so well. Let me remind you of some of the things that the
ALA has gotten for Local 17 members in the past several years-like a 10 week
strike-like a three year contract that contained no wage adjustment in the first
year and only $ 1.00 increased welfare benefits-like substantial unemployment in
the local-like special dues assessments to finance a legal battle (which was part
of the reason for the 10 week strike ) over contract language drafted by their East-
ern lawyers, part of which has been ruled illegal.
Contrast this with the substantially improved position we have enjoyed in San
Leandro and what it has meant in the way of steady work for the employees of
this plant. The good teamwork here has enabled us to have a level of work which
has made it possible to minimize layoffs, short work weeks and reclassifications.
Your steadily improving productivity and quality have given the sales force a good
product to sell . This is the way real job security is built-by a cooperative effort
of a team of skilled people-skilled craftsmen-skilled salesmen and skilled man-
agers. I sincerely believe that we have the basis for a good long term growth and
development at San Leandro . Certainly the tremendous growth and expansion of
the entire West Coast will benefit our industry . And I'm convinced we can get our
fair share of this potential by continuing to work closely and well . In my opinion
there is no reason to interrupt this excellent relationship by permitting the ALA
to enter our affairs with what I consider to be an unrealistic approach to the carton
industry and our special problems.
Let me conclude my remarks by asking you to give us-and yourself-and Fred
Commerford the opportunity to really show what this . plant can accomplish.
When you go to the polls on next Tuesday, think about your vote very carefully.
It is important to your future and that of your family. And if you agree that there
is not need here for the ALA-then I know you will vote against the ALA.
I want to thank you for your patience . I will be at home on Tuesday evening
awaiting a telephone call to tell me the results with complete faith and confidence be-
cause of your good judgment.
Delight Bakery , Inc. and General Teamsters Union , Local No.
406, International Brotherhood of Teamsters , Chauffeurs,
Warehousemen and Helpers of America , Ind. Case No. 7-CA-
4101. January 10, 1964
DECISION AND ORDER
On August 13, 1963, Trial Examiner James T. Barker issued his
Intermediate Report in the above-entitled proceeding, finding that the
Respondent had engaged in anal was engaging in certain unfair labor
practices and recommending that it cease and desist therefrom and
take certain affirmative action, as set forth in the attached Intermedi-
ate Report. He also found that the Respondent had not engaged in
certain other alleged unfair labor practices and recommended dis-
missal of these allegations of the complaint. Thereafter, the Respond-
ent and the General Counsel filed exceptions to the Intermediate
Report and supporting briefs.
Pursuant to the provisions of Section 3 (b) of the National Labor
Relations Act, the Board has delegated its powers in connection with
this case to a three-member panel [Chairman McCulloch and Members
Fanning and Jenkins].
145 NLRB No. 93.