The Peoples Gas Light and Coke Co.

National Labor Relations Board - Board Decisions

Oct 11, 1939

15 N.L.R.B. 1024 (N.L.R.B. 1939)

In the Matter of THE PEOPLES GAS LIGHT AND COKE.CoMPAN•Y..,and
CHICAGO BY-PRODUCT COKE COMPANY and UNITED MINE WORKERS
OF AMERICA , DISTRICT 50, AFFILIATF0 WITH THE CONGRESS OF INDUS-
TRIAL ORGANIZATIONS
Case No. R-1 /02.-Decided October 11, 1939
Gas and Gas By-Products Production Industry-Investigation of Representa-
tives: controversy concerning representation of employees : rival organizations;
controversy as to appropriate unit ; majority status disputed by Company and
by rival organization ; contract entered into with rival organization after
filing of petition , recognizing it as bargaining representative of its members,
no bar to investigation and determination of representatives-Units Appropri-
ate for Collective Bargai.ning: all production and maintenance employees exclud-
ing supervisory and clerical employees , first-aid men and telephone operators, no
controversy as to ; controversy as to wvatchmen ; watchmen excluded from
unit of production and maintenance employees at request of one of labor organ-
izations involved; watchmen held to' be separate appropriate unit-Repre-
sentative.s: proof of choice : evidence introduced shows duplication of member-
ship, and substantial membership by both labor organizations in unit of pro-
duction and maintenance employees ; membership of 19 out of 20 watchmen in
one of labor organizations not presumed to indicate wish of watchmen for
representation by it as separate unit, since at time of membership , Union was
organizing all employees , including watchmen , as single unit-Elections Ordered
Mr. Hyman A. Schulson, for the Board:
Pope c0 Ballard, by Mr. Ernest S. Ballard and Mr. Beverly B.
Tedder, of Chicago, Ill., for the Company.
Mr. Ben Meyers, of Chicago , Ill., for the United.
Mr. D. D. Carinell, of Chicago , Ill., for Local 18007.
Mr. David Findling, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTIONS
STATEMENT OF THE CASE
On January 28, 1939, United Mine Workers of America, District-
50, affiliated with the Congress of Industrial Organizations, herein
called the United, filed with the Regional Director for the Thirteenth
Region (Chicago, Illinois) a petition, and on May 26, 1939, an
amended petition, alleging that a question affecting commerce had
arisen concerning the representation of employees at the Crawford
Production Station plant of the Peoples Gas Light and Coke Com-
15 N. L. R. B., No. 113.
1 24
THE PEOPLES GAS LIGHT AND COKE COMPANY 1025
parry, Chicago, Illinois, herein called the Company,' 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 May -19, 1939, the National Labor Rela-
tions Board, herein-called the Board, acting pursuant to Section 9 (c)
of the Act and Article III, Section 3, of National Labor Relations
Board Rules and Regulations-Series 1, as amended, ordered an
investigation and authorized the Regional Director to conduct it and
to provide for an appropriate hearing upon due notice.
On May 26, 1939, the Regional Director issued a notice of hear-
ing, and, oil June 3, 1939, a notice of postponement of hearing, copies
of both of which were duly served upon the Company, upon the
United, and upon Gas Workers Union, Local 18007, affiliated with the
American Federation of Labor, herein called Local 18007, a labor
organization claiming to represent employees directly affected by the
investigation. Pursuant to the notices, a hearing was held on -June
12, 13, and 14, 1939, at Chicago, Illinois, before Horace A. Ruckel,
the Trial Examiner duly designated by the Board. The Board, the
Company-, the United, and Local 18007 were represented by counsel-
and participated in the hearing. Full opportunity to be heard, to
examine and cross-examine witnesses, and to introduce evidence bear-
ing on the issues was afforded all parties. During the course of the
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 conunitted. The rulings are hereby affirmed. After the hear-
ing' all 'of the parties filed briefs with the Board which have been
considered.
Upon the entire record in the case, the Board makes the following:
FINDINGS OF FACT
L THE BUSINESS OF THE COMPANY
The Peoples Gas Light and. Coke Company is an Illinois public-.
utility corporation engaged in the "production, purchase, transmis-
sion, distribution, and sale of gas for residential, commercial, indus-
trial, and municipal purposes in the City of Chicago." It also sells
coke. and other byproducts.of coal, and appliances to proinote the
development of its gas business.2 It maintains five gas-production
plants, the largest of which is the Crawford Production Station
plant, at which the Company manufactures, in addition to gas, coke
as the principal byproduct,' and tar, coke breeze, light oils, and
I Chicago By -Product Coke Company, which is also named in the caption , operates this
plant as agent of the Company . See Section 1, intro.
2 The record does not indicate the source , or the extent of sales, of these appliances.
1026 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ammonium sulphate as other byproducts. This case is concerned
only with this plant, which is operated under the Company's direc-
tion and at its risk and expense by the Chicago By-Product Coke
Company, a wholly owned subsidiary, as its agent.3
In 1938, 505,380 tons of coal valued at $968, 944.23, 568,013 gallons
of oil valued at $35,991.34, 5,656.40 tons of sulphuric acid valued at
$55,165.02, and 1,976,951 pounds of liquid calcium chloride valued
at $7,408.27, were used in operations at 'the Crawford Production
Station plant.4 Approximately 72 per cent of the coal, 100 per cent
of the oil and liquid calcium chloride, and 45 per cent of the sulphuric
acid, were shipped to the Crawford Station plant from points. outside
the State of Illinois.
All of the gas produced at the Crawford Production Station.plant
is delivered to the Peoples Gas Light and Coke Company for mixture
with natural gas, before general distribution to consumers in Clii-
cago.s During 1938, the Company sold 494,760,956 therms of gas
resulting in a gross revenue of $37,436,472.58, of which 290,615,174
therms were sold to its industrial and commercial consumers to be
used for heat, power, and. the manufacture and preparation of fin-
ished products.", These consumers, which include every major indus-
trial and commercial firm in Chicago, are entirely dependent upon
the Company as a source of gas and, in the course of their business,
cause substantial amountst of raw materials used in manufacturing'
to be purchased and transported in interstate commerce, and sub-
stantial amounts of finished goods to be sold and transported from
their respective plants to other States.
Among other gas consumers of the Company are 6 railroads, 5 bus
companies, 1 boat company, and 27 trucking companies, all engaged
in interstate commerce; the Illinois Bell Telephone Company, West-
ern Union Telegraph Company, Postal Telegraph Company, 24 news-
papers, the Municipal Airport, and the United States Government.'
3 The Chicago By-Product Coke Company is engaged in no business other than as such
agent. Its balance sheet for the year 1938 shows no assets and liabilities, It prepared
no profit and loss -statement, and apparently maintained no separate accounting records.
The Chicago By-Product Coke Company has no independent labor policy of its own, and
all communications with reference to the question of representation in this case were
addressed to, and all conferences were had at the main offices of, the Peoples Gas Light
and Coke Company.
'These materials were purchased both by the Chicago By-Product Coke Company as
agent, and by the Company, directly. -
5It appears that each therm of gas produced is mixed with approximately nine therms
of natural gas. The record does not indicate how much gas was produced at the Craw-
ford Production Station plant In 1938. However, in 1935, the last year for which such
figures are given, this plant produced 46,086,822 therms of gas out of a total of 46,587,985
therms produced at all plants.
6In 1.938, the Company had 778,909 domestic consumers and 44,375 industrial and
commercial consumers.
'The Government uses the gas at post offices, lighthouses, the customs bureau, and
Department of Agriculture offices in Chicago. The parties stipulated that a labor dispute
between the Company and its employees, interrupting the Company's operations, would
seriously affect the flow of vast quantities of raw materials and finished products In
THE PEOPLES GAS LIGHT AND COKE COMPANY 1027
The Chicago By-Product Coke Company, as agent, sells all of the
coke, coke breeze, tar, light oils, and ammonium sulphate produced
at the Crawford Station. In 1938, it sold 275,347.89 tons of coke,
resulting in a gross revenue of $1,988,030.68, approximately 12 per
cent of which was shipped to other States, and 6,564.67 tons of
ammonium sulphate, resulting in a gross revenue of $147,700.18,
approximately 87 per cent of which was shipped to other States.'
H. THE ORGANIZATIONS INVOLVED
United Mine Workers of America, District 50, is a labor organiza-
tion affiliated with the Congress of Industrial Organizations. It
admits to its membership all production and maintenance employees
at the Crawford Production Station plant of the Company, except
supervisory and clerical employees, and watchmen.
Gas Workers Union, Local 18007, is a labor organization affiliated
with the American Federation of Labor. It also admits to its mem-
bership all production and maintenance employees at the Crawford
Production Station plant of the Company, except supervisory and
clerical employees, but including watchmen.
III. THE QUESTION CONCERNING REPRESENTATION
On January 13, 1939, the United, claiming to represent a majority
of--the Company's production and maintenance employees at the
Crawford Production Station plant, requested the Company to bar-
gain with it as the exclusive representative of such employees? The
Company ref used to do so, stating that Local 18007 also claimed to be
the exclusive representative of these employees, and that it had no
proof that the United represented them.
As stated above, the petition herein was filed on January 28, 1939.
On January 31, 1939, the Chicago By-Product Coke Company entered
into a written agreement with Local 18007 covering the wages, hours,
and conditions of employment of the employees at the Crawford
Production Station plant "who are members of said Gas Workers
Union" for It term from February 1, 1939, to April 30, 1944. Such
.an agreement, particularly where entered into under the foregoing
interstate commerce and would in a short time . paralyze the operations of many of the
instrumentalities of interstate and foreign commerce in and about Chicago.
9 Among its coke customers are 32 firms which are engaged in interstate commerce.
0 This request was contained in a letter written on the stationery of the United, in
which it asserted that Local Union 12052 , District 50, United Aline Workers of America,
was the duly designated representative of the Company's employees at the Crawford
Production Station plant . At the hearing , the parties stipulated that Local No. 12052
"comprising the gas and by-products coke companies " located in Chicago, Illinois, was
chartered on June 29 , 1937 . As has been stated , the petition herein was filed in the.
name of the United the proceedings herein were also conducted in the name of the
United , and at'the hearing , the United sought to establish its designation as representa-
tive of the employees of the Company . See Section VI, infra.
1028 DECISIONS OF NATIONAL LA13OLI. RELATIONS BOARD
circumstances, does not preclude the Board from investigating and
determining representatives in this case-.10 -
We find that a question has arisen concerning representation of
employees of the Company.
1v. 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 the Company
described in Section I above, has a close, intimate, and substantial
relation to trade, traffic, and commerce among the several States.' and
.tends to lead to labor disputes burdening and obstructing commerce
and the free flow of commerce.
V. TILE APPROPRIATE UNIT
The parties stipulated at the hearing that all production and main-
tenance-employees at the Crawford Production Station plant, exclud-
ing supervisory and clerical employees, first-aid men, and telephone
operators, constitute an appropriate unit,for purposes of collective
bargaining.
The only question raised concerns the 20 watchmen employed by the
Company, the United contending that these men should be excluded
from the bargaining unit, and Local 18007 opposing their exclusion.
It has been our practice not to include watchmen within a bargaining
unit composed essentially of production and maintenance employees
if objection thereto is raised by a participating labor organization."
We shall exclude the watchmen from the unit.
We find that the production and maintenance employees of the
Company at the Crawford Production Station plant, excluding super-
visory and clerical employees, first-aid men, telephone operators, and
watchmen, constitute a unit appropriate for- purposes of collective
bargaining, and that said unit will insure to employees of the Com-
pany the full benefit of their right to self-organization .and to collec-
tive bargaining, and otherwise effectuate the policies of the Act. '
The watchmen employed by the Company patrol the grounds of
the Company, guard the gates and perform similar functions. We
see no reason why they cannot satisfactorily function as a' separate
unit for collective bargaining, if they so desire. Moreover, of the 20
watchmen involved, 19 have indicated their desire to be represented
10 See Matter of White Saving Machine Corporation and United Electrical, Radio awl
Machine Workers of America, Local 721 (C. 1. 0.), 10 N. L. R. B. 802; Matter, a frirsch.
Shirt Corporation and United Garment Workers of America. (affiliated with 'theA.-F. of L.),
12 N. L. R. B. 553.
11 See Matter of Plankington Packing Company and Packing House Workers Organizing
Committee on Behalf of Local 681 of.the United Packing House Workers of America. 5
N. L. R. B. 813; American Radiator Company and Local No. 1770 Amalgamated Associa-
tion of Iron, Steel & Tin Workers of North America. C. I. 0., 11 N. L. R. B. 1127.
THE PEOPLES GAS LIGHT AND COKE COMPANY 1029
by one of the labor organizations here involved,'' and to hold that
they do not by themselves constitute an appropriate unit would vir-
tually deprive them of the opportunity for collective action and
representation.
We find that the watchmen of the Company at the Crawford Pro-
duction Station plant constitute a unit appropriate for purposes of
collective bargaining, and that said unit will insure to employees of
the Company the full benefit of their right to self-organization and
to collective bargaining, and otherwise effectuate the policies of the.
Act.
If Local 18007 is designated by a majority of the employees in the
unit of production and maintenance employees, and in the unit of
watchmen, which we have found appropriate, it is free, of course,
to negotiate a collective bargaining agreement combining watchmen
with production and maintenance employees into a single bargaining
unit, if it so desires.
VI. THE DETERMINATION OF REPRESENTATIVES
The Company's pay roll for the period from January 16 to Janu-
ary 31, 1939, which was introduced in evidence, contains 324 employees.
in. the unit of production and maintenance employees which we have
found, appropriate.13 At the hearing, the United introduced in evi-
deuce 130, and Local 18007, 310 authenticated membership cards or.
petitions, signed by persons within this unit. Analysis discloses that
127 employees signed cards or petitions of both unions. Approxi-
mately 99 of the cards offered by the United were signed in April
and May 1939, and the balance in March and April 1937.'' Approxi-
mately 33 of the cards or petitions offered by Local 18007 were signed.
in June 1939 and the balance between September 1938 and April
1939. Under the circumstances, we believe that the question .which
has arisen concerning the representation of these employees of the,
Company can best be resolved by the holding of an election by secret
ballot.'s
12 See Section VI, infra.
18 While the Company's pay roll lists 329 employees in the unit of production and
.maintenance employees, the United and Local 18007 agreed at the hearing to exclude 5
men on the ground that they were supervisory employees . The Company made no objec-
tion. These men are John Lawrence , Peter Maloney , John Ripkey , Louis Ippolito, and.
Joe Keough.
14 The cards signed in March and April 1937 were membership cards in the ' Amalga-
mated Association of Iron, Steel & Tin Workers - of North America ,, also. affiliated with
the Congress of Industrial Organizations . An organizer for the United testified that the-
employees who signed these cards were informed that they would be turned over to a
local which was to be chartered by the United , and that these cards were , in fact. later
turned over to the United . He also testified that . these membership cards were used only
because the United had not had an opportunity to provide its own membership cards at
that time.
1s See Matter of The Cudahy Packing Company and United Packinghouse Workers of
America, Local No. 21 of the Packinghouse Workers Organizing Comnvittee . affiliated icith-
the Congress of Industrial organizations , 13 N. L . R. 13. 526.
199549-39-vol. 15--66
1030 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
The Company's pay roll for the period from January 16 to January
31, 1939, also contains 20 employees in the unit of watchmen which
we have found appropriate. At the hearing, Local 18007 introduced
in evidence 19 authenticated membership cards or petitions signed
,by persons within this unit, of which at least 17 were signed in
January 1939. However, at the time these cards were signed, Local
18007 was organizing all of the Company's employees including the
watchmen as a single unit, and we shall not presume that the watch-
men by their membership have indicated that they would wish to be
represented by Local 18007 as a separate unit. Under the circum-
stances, we believe that the question which has arisen concerning the
representation of watchmen of the Company can best be resolved by
,tho holding of an election by secret ballot in which the watchmen shall
-vote to determine whether or not they wish to be represented by
-Local 18007.
We are also of the opinion that the use of the current pay roll
:as the basis for eligibility to vote in the elections will best effectuate
.the policies of the Act. We shall, accordingly, direct that all per-
sons in the appropriate units whose names appear on the Company's
pay roll for the pay-roll period immediately preceding the date of
our Direction of Elections herein, including employees who did not
-work during such pay-roll period because they were ill or on vaca-
- tion, and employees who were then or have since been temporarily
laid off, and excluding those who have since quit or been:di'scharged
-for cause, shall be eligible to vote.
Upon the basis of the above findings of fact and upon the entire
-record in the case, the Board makes the following :
CoN CLUSIONS OF LAw
1. A question affecting commerce has arisen concerning the repre-
-,sentation of employees at the Crawford Production Station plant
..Of the Peoples Gas Light and Coke Company, Chicago, Illinois,
within the meaning of Section 9 (c) and' Section 2 (6) and (7) of
the National Labor Relations Act. .. . .
2. The production and maintenance-employees at the Crawford
Production Station plant of . the Company,. excluding supervisory
a.nd clerical employees, first-aid-men,'telephone operators, and watch-
men,] constitute a- unit appropriate for the purposes of collective
-bargaining, within the meaning of Section 9 (b) of the National
Labor Relations Act. -
3. The watchmen employed at the Crawford Production Station
plant of the Company constitute a unit, appropriate for the pur-
poses of collective bargaining, within the,meaning of Section 9 (b)
of the National Labor Relations Act. -
THE PEOPLES GAS LIGHT AND COKE COMPANY
DIRECTION OF ELECTIONS
1031
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 8, of National
-Labor Relations Board Rules and Regulations-Series 2, it is hereby
DIRECTED that, as part of the investigation authorized by the
-Board to ascertain representatives for collective bargaining with
-the Peoples Gas Light and Coke Company , Chicago, Illinois, separate
elections by secret ballot shall be conducted as early as possible but
not later than thirty ( 30) clays from the date of this Direction, under
the direction and supervision of the Regional Director for the Thir-
teenth Region , acting in this matter as, agent for the National Labor
Relations Board, and subject to Article III, Section 9, of said Rules
and Regulations , among the employees of the Company who fall
-within each of the groups described below :
(1) All production and maintenance employees at the Crawford
Production Station plant of the . Company, whose names appear on
the Company 's pay roll for the pay -roll period immediately pre-
^ceding the date of this Direction , including employees who did not
work during such pay-roll period because they were ill or on vaca-
tion, and employees who were then or have since been temporarily
laid off ,- but excluding supervisory and clerical employees , first-aid
znen, telephone operators , and watchmen , and employees who have
:since quit or been discharged for cause , to determine. whether they
desire to be represented for the purposes of collective bargaining by
United Mine Workers of America , District 50, affiliated with the
Congress of Industrial Organizations , or by Gas Workers Union,
Local 18007-, affiliated with the American ' Federation of Labor, or by
neither ;
(2) All watchmen employed at the Crawford Production Station
plant of the Company, whose names appear on the Compan y 's pay
roll for the pay -roll period immediately preceding the date of this
Direction , including watchmen who did not work during such pay-
roll period because they were ill or on vacation , and watchmen who
were then or who have since been temporarily laid off, but excluding-
watchmen who have since quit or been discharged for cause , to deter-
i ine whether or not they desire to be represented for the purposes
of collective bargaining by Gas Workers Union , Local 18007 , afiliated'
with the American Federation of Labor.