The Prudential Insurance Co. of America

National Labor Relations Board - Board Decisions

Feb 26, 1943

47 N.L.R.B. 1103 (N.L.R.B. 1943)

In the Matter of THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
and INTERNATIONAL UNION OF LIFE INSURANCE AGENTS, LOCALS 4, 6,
37, 40 and UNITED OFFICE AND PROFESSIONAL W ORKERS OF AMERICA,
C.I.O.
Case No. B-4799.-Decided February 06, 1943
Jurisdiction : life insurance industry.
Investigation and Certification of Representatives : existence of question: recog-
nition refused when company questioned alleged majority status of petitioner
and believed unit to be inappropriate ; election necessary
Unit Appropriate for Collective Bargaining : state-wide unit of all industrial
insurance agents of company held appropriate in the absence of organization
on a nation-wide basis.
Mr. Stephen M. Reynolds, for the Board. •
Shearer, Byard e1 Frogner, by Mr. David Shearer, of Minneapolis,
Minn., for the Company.
Gold and McCann, by Mr. Ray T. McCann, of Milwaukee, Wis., for
the International.
Boudin, Cohn & Glickstein, by Mr. Leonard B. Boudin, of New
York City, for the C. 1. 0.
Mr. Glenn L. Moller, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
Upon a petition and amended petition duly filed ,by International
Union of Life Insurance Agents, Locals, 4, 6, 37, and 40, an unaffiliated
labor organization, herein called the International, alleging that a
question affecting commerce had arisen concerning the representation
of employees of The Prudential Insurance Company of America,
Newark, New Jersey, herein'called the Company, the.National Labor
Relations Board provided for an appropriate hearing upon due notice
before Howard Myers, Trial Examiner. On January 8, 1943, the
Board, acting through its Regional Director for the Eighteenth
Region, issued an order permitting the United Office and Professional
Workers of America, affiliated with the Congress of Industrial Organi-
zations, herein called the C. I. 0., to intervene in said proceeding. Said
47 N. L. R. B., No. 139.
1103
1104 DE,011SIIO(11T'S OF NATIONAL LABOR REiI AT'IOINS BOARD _
rearing was held at Minneapolis, Minnesota, on January 25 and 26,
1943. The Company, the International, and the C. I. O. appeared,
participated, and were afforded full opportunity to be heard, to
examine and cross-examine witnesses, and to introduce evidence bear-
ing upon the issues.- The C. I. O. also moved to amend the title.of the
proceeding to include the name of its own organization. This motion
x^is referred to the Board by the Trial Examiner. It is hereby denied.
The Trial Examiner's rulings made at the hearing are free from
prejudicial error and are hereby affirmed.
After the hearing, the C. I. O. filed a motion to reopen the hearing
to permit the taking of testimony and the introduction into evidence
of certain documentary material, which the C. I. O. claimed was
relevant to the issue of the propriety of the unit here sought. The
Company also filed a similar motion, attaching to said motion in the
form of exhibits the specific documentary evidence sought to be intro-
duced.2 The evidence thus offered is hereby incorporated in the record
of the case. The motions to reopen the record are denied.
The International and the Company have filed briefs which we have
duly considered. The Company and the C. I. O. have requested oral
argument. The Board, with Mr. Reilly dissenting, denied the request.
Upon the entire record in the case, the Board makes the following:
FINDINGS OF FACT
1. THE BUSINESS OF THE COMPANY
The Prudential Insurance 'Company of America is a New Jersey
corporation -%^ith its Home Office and principal place of business in
Newark, New Jersey. The Company is engaged in the life insurance
1 At the close of the hearing, the C. I. 0, and the Company both requested that the hear-
ing be kept open until the results of a card check of C . I 0. raids could be placed in the
record The Trial Examiner refused both requests but informed the parties 'that they could
renew their requests, addressing them directly to the l;oaid
9 These exhibits were as follows :
1. Stipulation between the Company and the C 1 0 authorizing the American Arbitra-
tion Association to make a card check of the C I 0 union cards of -the Company's
industrial life insurance agents throughout the United States, excluding Wisconsin,
'Minnesota, and Ohio The stipulation further provided that instead of checking cards
in New York , Michigan , New Jersey , and Massachusetts , where elections had been held,
the results of these elections were to be added to the results of the card check, In
the States covered by the card check , the number of union cards was to be counted as
"yes" votes , and the difference between the "yes" votes and the number on the pay roll
of the Company in the areas checked, was to be counted as "no" votes
2 Findings and certificate of the American Arbitration Association The findings
indicated that in the areas checked the union had 3,645 cards and that the results of
the elections in New Yolk , New Jersey , Michigan , and Massachusetts showed a total of
3,£04 "yes" votes, making a total of 7,449 "yes" votes The findings further showed that
in the areas checked 4,494 were not C I 0 membeis, and that in the States where
elections Mere held, there were 2,211 "no" votes, making a total of 6,705 "no" votes
3. Collective bargaining contract , dated Februaiy 1, 1943, between the C I. 0. and the
Company , whereby the Company recognizes the C . I. 0 as the exclusive bargaining agent
for all its industrial life insurance agents in the United States except those in Wisconsin,
Minnesota, Ohio, Delaware, Maiyland, Virginia, and the District of Columbia.
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA 1105
business in the 48 States of the United States, the District of Columbia,
the Territory of Hawaii, and 9 Provinces of the Dominion of Canada.
On December 31, 1941, the Company was the second largest insurance
company in the United States in terms of assets and the amount of
insurance in force. On that date the Company's assets totaled $4,456,-
085,244, and it had 31,960,286 policies in force, having a total face
amount of $19,549,175,369. It had approximately 20,000,000 policy-
holders. The Company's assets largely consist of cash, bonds, stocks,
mortgages, real estate, and notes. Most of the cash is deposited in,
commercial banks and 'trust companies throughout,the United States.
All the securities are delivered to it in the State of New Jersey and are
for the most part kept at the Home Office. Aside from its Home Office
and housing property in Newark, New Jersey, the Company owns no
real estate except such as it acquires from time to time through mort-
gage foreclosures or by conveyance in lieu of mortgage foreclosures.
On December 31, 1941, the Company had outstanding loans secured by
real estate located in 47 States and the Dominion of Canada. The
Company manages its real estate through 221 Managing Agents and 196
Local.Farm Supervisors in 40 States of the United States, the District
of Columbia, and 6 Canadian Provinces. Front the foregoing, it is
clear that in addition to insuring the lives of its policyholdes, the
Company engages in a diversified and -widespread investment business.
During 1941, the Company purchased furniture, fixtures, and me-
chanical equipment having a value of $445,146.01, most of which was
purchased and used in the State of New Jersey. During the same
period the Company purchased paper and other stationery supplies
having a value of $673,452.87, most of which was likewise purchased
and used in the State of New Jersey. In the same period the Company
spent $1,329,502.73 for postage, telephone, telegraph and express
services, and $711,259.55 for traveling expenses. In connection with
its business the Company owns and operates a printing plant in New
Jersey. ' During 1942, the Company printed at said plant material
having a value of $1,254,372.28, of which approximately 62.1 percent
was used in the State of New Jersey, .5 of 1 percent in Canada, and 37.4
percent in other States.
On December 31, 1942, the Company employed 38,677 persons, of
whom 21,982 were agents selling insurance and otherwise dealing with
policyholders in 48 States, the District of Columbia, the Territory of
Hawaii, and the Dominion of Canada. Approximately 17,000 of the
Company's agents are classed as industrial agents. Of these, approxi-
mately 287 are stationed in Minnesota. It is the Minnesota agents
with whom we are herein concerned. The Company has 8 district
offices in Minnesota, under the supervision of the Home Office. These
8 offices are part of Division P of the Industrial Agency Division of the
513024-43-vol. 47-70 1
1106 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Company. Division P also includes parts of Wisconsin, Iowa, Michi-
gan, Illinois , and Nebraska.
We find that the Company is engaged in commerce within the mean-
ing of the National Labor Relations Act.3
II. THE ORGANIZATIONS INVOLVED
International Union of Life Insurance Agents is an unaffiliated
labor organization, admitting to membership, in its Locals 4, 6, 37,
and 40, employees of the Company.
United Office and Professional Workers of America, affiliated with
the Congress of Industrial Organizations, is a labor organization, ad--
mitting to membership employees of the Company.
III. THE QUESTION CONCERNING REPRESENTATION
On or about December 15, 1942, the International requested recog-
nition'by the Company as bargaining agent for the Company' s Indus-
trial agents in the State of Minnesota. The Company refused such
recognition, stating that it questioned the alleged majority status of
the International and that it believed the State unit to be inap-
propriate.,
A statement of the Regional Director, introduced into evidence at
the hearing, indicates, that the International represents a'substantial
number of employees in the unit hereinafter found appropriate.4
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
The International seeks here a unit composed of all industrial agents
employed by the Company in the State of Minnesota. The Company
and the C. I. 'O. contend, however, that a company-wide unit of
industrial agents is appropriate.
The Board has many times found State- or city-wide units of in-
dustrial agents to be appropriate.5 In at least one instance a State-
See Matter of, John Hancock Mutual Life Insurance Company and American Federation
of Industrial and Ordinary Insurance Agents Union No. 21571, et al., 26 N L R. B. 1024;
Matter of The Prudential Insuianice Company of America and Ame?ican Federation of
Industrial and Ordinary Insurance Agents' Union No. 23039, Toledo , Ohio, 46 N L. R. B.
430
4 The Regional Director reported that the International submitted 186 membership
cards , all of which bear apparently genuine signatures of persons whose names appear
on the Company's pay roll of November 20, 1942 Said pay roll contained the names
of 280 employees in the unit hereinafter found appropriate The C I 0 submitted 8 cards,
all bearing apparently genuine signatures of persons in the appropriate unit. In view
of its membership in other divisions and units of the Company , we find that the C I. 0.
has a sufficient interest to entitle it to a place on the ballot in the election ordered herein.
5 See Matter of Metropolitan Life Insurance Company and International Union of Life
Insurance Agents , Locals 1, 2, 3, 4, 5, 39, 41, 43 N. L R B . 962; (A petition for a . State-
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA 1107
-wide unit has been established at the request of the C. I. 0.6 Like-_
wise, the Company has on occasion contended that a State-wide unit
was appropriate and has extended recognition to and entered into
•consent elections with employee representatives, including the C. I. 0.,
on that basis.' At, present there is pending before the Board a
petition for an investigation and certification filed by the C. I. O.
seeking to establish a State-wide unit of industrial agents employed
by the Company in Ohio.
In those cases where we have established State-wide and smaller
units; we have always made it clear that we have done so in order to
make collective bargaining an immediate possibility in such units, and
that our finding such units to be appropriate does not preclude a
later finding that a larger or company-wide unit is appropriate.
We reaffirm that statement here. We-see nothing in the record of this
-case ,. however, to lead us to find that the State-wide unit is not appro-
priate and that the time is ripe for the establishment of a Nation-
wide unit. The Company and the C. I. O. point to the recent check
made of C. I. O. membership cards against the Company's pay roll as
evidence of the present propriety of a Nation-wide unit.8 It should
be noted, however, that this check specifically excluded the States
of Wisconsin, Minnesota , and Ohio. Likewise, the collective bar-
gaining agreement which -was -entered into between the Company
and the C. I. O. following the card check did not cover Minnesota
and. several other States. The check covered only 14,154 agents
out of a total of approximately 17,000, and it included employees who
had already been voted in State units. Under these circumstances,
we are of the opinion that the card check and the collective bargain-
ing agreement did not establish a company-wide unit as appropriate
and did not make a State-wide unit inappropriate.. -
We find that a State-wide unit of all the. industrial insurance
agents of The Prudential Insurance Company of America who are
attached to and work out of Minnesota offices, including canvassing,
wide unit of the State of Wisconsin found appropriate , Mr Reilly dissenting ) ; Matter of
John Hancock Mutual Life Insurance Company and American Fedet atson of Industrial
and Ordinary Insurance Agents Union No •21571 ,and Industrial Insurance Agents Union
Local No 84 of the United Office and Professional Workers of America , 26 N L R . B-1024;
(city-wide units found appropriate ) ; Matter of Prudential Insurance Company of America
and American Federation of Ordinary and Industrial Life Insurance Agents, A. F. L., 46
N. L. R. B. 430 ( Decided December - 26 1942. A city -wide unit was found appropriate).
Matter of Colonial Life Insurance Company of America and United Office and Professional
Workers of America, C 1 0, 42 N. L R B 1177
i Matter ' of The Prudential Insurance Company of America, supra In Michigan, New
Jersey, and New York, the Company and the C. I O' agreed upon State-wide units and,
consent elections were conducted in these States , resulting in majorities for the C. I. 0.
in all three units
i This card check was made pursuant to a' stipulation between the Company and the
C. I. 0 in which, if the C I 0 won, the Company agreed to recognize the C. I 0 as
exclusive bargaining agent, for its industrial' agents throughout the country with the
exception of agents in Wisconsin, Minnesota , and Ohio . The results of this check
indicated a majoiity of only 744 for the C 1 0
1108 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
regular office account, and detached agents, but excluding independ-
ent and retired agents; managers, assistant managers, clerks, cashiers,
secretaries, and other^persons not agents, 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 Re-
lations Act, and pursuant to Article III, Section 9, of National
Labor Relations Board Rules and Regulations-'Series 2, as amended,
it is,hereby
DIREc ED that, as part of the investigation to ascertain' representa-
tives for the purposes of collective:"bargaining with The Prudential
Insurance Company of America, Newark, New Jersey, 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 Eighteenth Region,
acting in this matter as agent for the National Labor Relations Board,
and subject to Article III, Section 10, 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 said' pay-roll period because they were ill or on
vacation or temporarily laid off, and including employees in the
armed forces of the United States who present themselves in person
at the polls, but excluding any who have since quit or been discharged
for cause, to determine whether they desire to be represented by
International Union of Life Insurance Agents, Locals 4, 6, 37, 40
or by United Office and Professional Workers of America, affiliated
with the Congress of Industrial Organizations, for the purposes of
collective bargaining, or by neither.
MR. GERARD D. REILLY, dissenting :
I am of the opinion that the record should be reopened to receive
the evidence which the Company and the CIO sought to introduce
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA 1109
to establish the propriety of a system-wide unit. The documentary
-evidence of the CIO's status as representative of a majority of the
employees on a corporation-wide basis which was incorporated into
the record, is clearly material to the issue of whether a smaller unit
is appropriate, since it serves to establish the interest of the CIO in
a larger unit. Although evidence of such an interest, standing alone,
may not be sufficient to establish the impropriety of a State-wide
unit, it does serve to raise' the issue squarely in these proceedings.
The CIO and the Company were also entitled to introduce evidence
.of -the, Company's administrative organization for collective bar-
gaining purposes as well as other relevant evidence which might
tend to establish that effective collective bargaining could proceed
only on a system-wide basis.9 The record should be reopened to
afford the parties an opportunity to introduce evidence on these
issues. Mere incorporation of the documentary evidence into the
-record cannot cure this defect. I am of the opinion that on the record
as it stands, no decision can be made concerning the appropriateness
-of a State-wide unit in contradiction to a system-wide unit.
Cf. my dissenting opinion in the Matter of Metropolitan Life Insurance Company and
International Union of Life Insurance Agents, Locals 1, 2, 3, 4 , 5, 39, 41, 43 N . L R. B. 962.