The Prudential Insurance Co. of America

National Labor Relations Board - Board Decisions

Jun 17, 1943

50 N.L.R.B. 689 (N.L.R.B. 1943)

In the Matter of THE PRUDENTIAL INSURANCE COMPANY OF AMERICA,
CANTON, OHIO DISTRICT and AMERICAN FEDERATION OF INDUSTRIAL &
ORDINARY INSURANCE AGENTS' UNION No. 23209, CANTON, OHIO
(AFL)
In the Matter of THE PRUDENTIAL INSURANCE COMPANY OF AMERICA,
AKRON, OHIO DISTRICTS and AMERICAN FEDERATION OF INDUSTRIAL &
ORDINARY INSURANCE AGENTS' UNION No. 23225, AKRON, OHIO,
AFL
In the Matter of PRUDENTIAL INSURANCE COMPANY OF AMERICA and
UNITED OFFICE AND PROFESSIONAL WORKERS OF- AMERICA, C. I. O.,
INSURANCE DIVISION
In the Matter of THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
and AME1t1CAN FEDERATION OF INDUSTRIAL AND ORDINARY INSUR-
ANCE AGENTS' UNION (AFL)
In the Matter of PRUDENTIAL INSURANCE COMPANY OF AMERICA and
INTERNATIONAL UNION OF LIFE INSURANCE AGENTS, LOCAL No. 38
In the Matter Of PRUDENTIAL INSURANCE COMPANY OF AMERICA and
INTERNATIONAL UNION OF LIFE INSURANCE AGENTS, LOCAI, No. 50
In the Matter Of PRUDENTIAL INSURANCE COMPANY OF AMERICA and
INTERNATIONAL UNION OF LIFE INSURANCE AGENTS, LOCAL No. 48
In the Matter of PRUDENTIAL INSURANCE COMPANY OF AMERICA and
INTERNATIONAL UNION OF LIFE INSURANCE AGENTS, LOCAL No. 43
In the Matter Of PRUDENTIAL INSURANCE COMPANY OF AMERICA,
NEWARK, NEW JERSEY and AMERICAN FEDERATION OF INDUSTRIAL &
ORDINARY INSURANCE AGENTS' UNION #23388 OF MANSFIELD, OHIO
Cases Nos. R-.59356 to R-5264, inclusive, respectively.Decided June
17,1943
Doyle cC Lewis, by Mr. Milo J. Warner, of Toledo, Ohio, and Mr.
Joseph T. Ferris, of Newark, N. J., for the Company.
Mr. George L. Russ, of Washington; D. C., for the AFL.
Boudin, Cohn ct Gliekstein, by Mr. Leonard B. Boudin, of New
York City, and Mr. Jerome W. Shore, of Detroit, Mich., for the CIO.
Gold & McCann, by Mr. Ray McCann, of Milwaukee, Wis., for the
Independent.
.Mr. Glenn L. Moller, of counsel to the Board.
50 N. L. R. B., No. 94.
689 I
690 DECISIONS OF NATIONAL LABOR RELAfrIONS BOARD
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
Upon petitions duly filed by American Federation of Industrial &
Ordinary Insurance Agents' Union No. 23209, 'Canton, Ohio (AFL) ;
by American Federation of Industrial & Ordinary Insurance Agents'
Union No. 23225, Akron, Ohio, AFL; by United Office and Profes-
sional Workers of America, C. I. 0., Insurance Division; by American
Federation of Industrial Ordinary Insurance Agents' Union `(AFL) ;
by International Union of Life Insurance Agents, Local No.'3S; by
International Union of Life Insurance Agents, Local No. 50; by In-
ternational Union of Life Insurance Agents, Local No. 48; by Inter-
national Union of Life Insurance Agents, Local No. 43; and by Ameri-
can Federation of Industrial & Ordinary Insurance Agents' Union
#23388 of Mansfield, Ohio, alleging that questions affecting commerce
had arisen concerning employees of The Prudential Insurance Com-
pany of America, Newark, New Jersey, herein called the Company,
the National Labor Relations Board consolidated the cases and pro-
vided for an appropriate hearing upon due notice before Samuel H.
Jaffee, Trial Examiner. The hearing was held in 'Cleveland, Ohio;
on, April 27 and 28, 1943. The -Company and all the petitioning
unions, appeared, participated, and were afforded full opportunity
to be heard, to examine and cross-examine witnesses, and ,to intro-
duce evidence bearing on the issues. The Trial Examiner's rulings
made at the hearing are free from prejudicial' error and are hereby
affirmed. The parties filed briefs which the' Board has considered.
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 with its home office and principal place • of business in
Newark, New Jersey. The Company is engaged in the life insurance
business on the participating plan 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 life
insurance company in the United States in terms of assets and the
amount of insurance in force. On that date the Company's assets
i
THE PRUD'ENT'IAL INSURANCE COMPANY' OF AMERICA 69I-
totaled $3,556,085,244, and it had 31,960,286 policies in force, having
a total face amount, $19,549,175,369. It had on that date approxi-
mately 20,000,000 policyholders residing in every State of the United
States, the District of Columbia, Hawaii, Canada, and some foreign
countries.
On December 31, 1941, the Company's assets consisted of cash,
United States bonds and bonds guaranteed by the United States
Government,, bonds of the Dominion of Canada, bonds of various
political subdivisions of the United States, bonds of various
Canadian Provinces and various political subdivisions thereof, rail-
road and railroad equipment bonds, public utility bonds, industrial
bonds, preferred stocks, common stocks, mortgage loans on real
estate, real estate, installments contracts for sale of real' estate,
premium notes and loans to policyholders, and other assets.
Most of the cash assets of the Company are kept on deposit in
commercial banks and trust companies. On December 31, 1941, the
Company had $120,792,001.31 on deposit in 521 banks and trust com-
panies in 40 States, the ,District of Columbia, and Canada, about 73
percent of which was in banks and trust companies located in New-
ark, New Jersey, and New York City.
All securities purchased by the Company, except Canadian secu-
rities, are delivered to the Company's home office in Newark, New
Jersey. These securities are kept at the home office, except for such
bonds as are deposited with governmental authorities as required
by law.'
Aside from its home office property and housing property located
at Newark, New Jersey, the Company owned, on December 31, 1941,
real estate acquired through mortgage foreclosure, or by conveyances
in lieu of such foreclosure, valued at $152,806,443, and held loans
secured by real estate located in 47 States and the Dominion of
Canada. The Company manages its real estate through 221 man-
aging agents and 196 local farm supervisors in 40 States of the
United States, the,District of Columbia, and 6 Canadian Provinces.
From January 1, 1936, to December 31, 1941, the Company an-
nually had available for investment approximately $193,000,000. In
1941 it had available for investment approximately $558,000,000.
The Company is a mutual life insurance corporation created and
existing under the laws of the State of New Jersey.
The Company's business is managed and directed by officers lo-
cated at its home office in Newark, New Jersey. The terms and con-
ditions of the various policies of insurance issued by the Company,
claims upon policies, applications for loans, and all other matters
affecting the business of the Company in its diversified branches of
activity, are determined' by the officers located in the home office.
692 DECISIONS OR NATIONAL LABOR R:EELATIONS BOARD
During the calendar year 1941 the Company purchased furniture,
fixtures, and mechanical equipment having a value of $445,146, most
of which was purchased in the State of New Jersey. Approximately -
21.2 percent of the equipment purchased in New Jersey was shipped
to and used in other States and-.6 percent was shipped to and used
in the Dominion of Canada. During the same period the Com-
pany purchased stationery supplies having a value of $673,452, most
of which was purchased in the State of New Jersey. Of the sup-
plies purchased in New Jersey, 37.4 percent was shipped to and used
in other States, and .5 percent was. shipped and used in the
Dominion of Canada.
During the calendar year 1942, the Company printed, at its own
printing plant in the State of New Jersey, material having a value
of $1,254,372, of which approximately 37.4 percent was shipped to
and used in other States and .5 percent was shipped to and used
in the Dominion of Canada.
The Company maintains 31 district offices and 41 detached offices
in the State of Ohio. These offices are under the supervision of
officers located in the Home Office in Newark. On December 31, 1942,
the 31 Ohio districts employed 1,638 persons of whom 1,191 were
agents selling industrial' life insurance and otherwise dealing with
policyholders, and who accounted to the Company through the Ohio
offices.
' We find that the Company's business has a direct effect upon the
free flow of commerce, and that the Company is engaged in com-
merce within the meaning of the National Labor Relations Act.
II. THE ORGANIZATIONS INVOLVED
Alrierican Federation of Industrial & Ordinary Insurance Agents'
Council, affiliated with the American Federation of Labor, and those
of its component locals here involved, namely : Local No. 23209, Can-
ton; Ohio; Local No. 23225, Akron, Ohio; Local No. 23342;;, San-
dusly, Ohio; 1 and Local No. 23328, Mansfield, Ohio, are labor
organizations admitting to niembership employees of the Company,
and are herein collectively referred to as the AFL. The several
local unions are chartered directly by the American Federation of
Labor.
United Office and Professional Workers of America, Insurance
Division, affiliated with the Congress of Industrial Organizations,
herein called the CIO, is a labor organization admitting to member-
ship employees of the Company.
' The petition in Case No R-5259, involving the Sandusky, Ohio, Distuct, was filed by
the American Federation of Industrial & Ordinary Agents Council on behalf of the mem-
bers of Local 23342, whose charter had not yet been issued.
c
THE PRUDENTIAL INSURANCE ' COMPANY OF AMERICA 693
International Union of Life Insurance Agents and its Locals Nos.
50, 48, 38, and 43 are labor organizations admitting to membership
employees of the Company, and are hereinafter collectively referred
to as the Independent.
II. THE QUESTION CONCERNING REPRESENTATION
The parties stipulated that prior to the filing of the petitions, each
of the petitioning unions requested recognition as the exclusive bar-
gaining representatives of the Company's agents in the, unit claimed
by it to be appropriate and that the Company refused all of said
requests on the ground that the unit presently appropriate is Nation-
wide, and that under` no circumstances should the unit be less than
State-wide in scope.
Statements by Field Examiners and a Field Attorney for the
Board, introduced in evidence at the hearing, indicate that the peti'-
tioning unions represent substantial numbers of employees in the
unit hereinafter found appropriate .2 '
We find that questions affecting commerce have arisen concern-
ing 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 parties are agreed that'the categories of employees consti-
tuting any unit herein found appropriate should be all industrial
agents, excluding superintendents, assistant superintendents, office
N
2 There are 1,054 agents in the appropriate unit. The following chart indicates the showing of representa-
tion made by the various petitioning unions in the units which they claim to be appropriate and in the
unit hereinafter found appropriate.
Cards
bearing
apparently Number
genuine malleged Dates
Case number unit claimed signatures Petitioner appro- of pay
of persons priate rolls
on Com- unit
parry
pay roll
R-5256; Canton , Ohio_________________________ 16 AFL-------------- 36 10/26/42
R-5257; Akron, Ohio__________________________ 26 AFL______________ 63 10/13/42
R-5259, Sandusky, Ohio_______________________ 14 AFL -------------- 31 1/29/43
R-5264; Mansfield ; Ohio__ ____________________ 13 AFL-------------- 31 1/29/43
AFL total in appropriate unit ----------- 69
R-5258; State of Ohio __________________________ *306 CIO -------------- 1,054 1/29/43
R-5260, Dayton, Ohio_________________________ 25 Independent------ 78 1/29/43
R-5261; Cincinnati, Ohio______________________ 41 Independent--__-_ 101 1/29/43
R-5262, Hamilton , Ohio_______________________ 32 Independent------ 35 1/29/41
R-5263; Springfield , Ohio______________________ 30 Independent ------ 46 4/2/43
Independent total in appropriate unit--- *164
The CIO and Independent totals contain 37 cards signed by agents who had signed cards for
both organizations.
530105-44-vol. 50-45
694 DEOPSPONS OF NATQONAL LABOR RELATIONS BOARD
clerks, and cashiers. They differ only as to the geographical extent
of the unit or units. -
The AFL contends that all-industrial agents working out of the
Company's District offices in Akron, , Ohio ; all the industrial agents
working out of the Company's District office in-Canton, Ohio, including
its detached office of that District in Massillon, Ohio; all industrial
agents working out of the Company's District office at Mansfield,
Ohio, including three detached offices of that District, at Galion,
Bucyrus, and Marion, Ohio, respectively; and all industrial agents
working out of the Company's District office in Sandusky, Ohio, in-
cluding the five detached offices -of that District, at Port Clinton,
Fremont, Fostoria, Tiffin, and Norwalk, Ohio, respectively, consti-
tute four separate appropriate units.
The Independent filed four-petitions, alleging that all industrial
agents working out of the Company's` three District offices in Cin-
cinnati; all industrial- agents working out of the Company's two
District offices in Dayton, including the two detached offices of those
Districts at Greenville and Miamisburg; all industrial' agents work-
ing out of'the District office at Hamilton, including the three de-
tached offices of_ that District, at Middletown, Locklnd, and Troy,
Ohio; and all industrial agents working out of the Company's Dis-
trict office at Springfield, including the two detached offices of that
District at Piquri and Bellefontaine, Ohio, constitute, respectively,
separate appropriate units. At the hearing, however, the Independ-
ent stated that it believed the time -to be ripe for the establishment
of a State-wide unit. The Independent indicated that if the Board
found appropriate the smaller units for which it and the AFL had
petitioned, it. desired to participate only in elections involving the
Districts for which it had petitioned. ,
The CIO seeks a State-wide -unit consisting of all industrial
agents of the Company working in the State of Ohio.
The Company contends that the most appropriate unit is a unit
consisting of all the Company's agents in the United States, but that
in no event should the unit be less than State-wide in scope.
All the parties are agreed that the ultinmately appropriate bar-
gaining unit of the Company's, agents is the Nation-wide unit for
which the Company now contends, basing their contentions for smaller
units upon the,limited extent of organization among the Company's
agents. The principal issue to be considered' therefore, in determining
the appropriate unit, is the extent of self-organization.
For administrative purposes the Company is divided into 11 major
subdivisions, 1 of which conducts the industrial insurance business of
the Company. The Industrial Agencies Department has divided the
territory covered by the Company's industrial agencies into 20 divi-
"Sions; designated by letters of the alphabet, 19 of which are in the
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA 695
United States, the remaining 1 being in Canada. The 20 divisions
are divided into 5 geographical groups, each under the supervision of,
an assistant secretary. The assistant secretaries are located in the
home office and supervise their groups from there. They meet daily
with the vice presidents in charge of the Industrial Agencies Depart-
ment and all decisions on questions of policy arising in the field are
made at these meetings The Company's Ohio offices fall into Divi-
sions F, G, and R, in the,Central group.
The AFL, CIO, and Independent have'all three been organizing the
agents of the Company for the past several years.3 At the present
time, as the result of certain consent elections and a card check con-
ducted pursuant to an agreement between the Company and the CIO,
the CIO holds a contract with the Company, covering all the agents
employed by the Company in the United States with the' exception
of agents working in the States of Wisconsin, Minnesota, Ohio, Dela-
ware, Maryland, and Virginia, and the District'of Columbia.4
The Independent, following an election held under the auspices
of State labor authorities in the State of Wisconsin, was recognized
by the Company as the exclusive bargaining representative of the
Company's agent's employed in that State, and thereafter entered into
a contract with the Company covering the agents in the State of Wis-
consin. On March 1, 1943, a new contract was executed by the parties,
covering the same agents. This latter, contract is for a period of 2
,years and is to be renewed automatically from year to year thereafter
unless either party indicates a desire to terminate it at least 60 days
before the expiration of any yearly period. On April 19, 1943, follow-
ing an election, we certified the Independent as the exclusive bar-
gaining representative of all agents of the Company attached to and
working out of offices of the Company in the State of Minnesota.5 On
May 5, 1943, acting upon petitions filed by the AFL, seeking city-wide
units in Baltimore, Maryland, Richmond, Virginia, and Washington,
D. C., we found that the extent of organization among the Company's
agents in Maryland and Virginia was such that State-wide units and
a unit consisting of the District of Columbia, were appropriate 6 We
disnnissed the Richmond, Virginia, petition because of the failure of
the Union to make a substantial showing in the State-wide unit. The
AFL immediately thereafter filed a petition seeking an election in a
State-wide unit-in the State of Virginia. That petition is now pend-
' For details of the history of organization among the Company ' s agents see Matter of
The Phndent,al Insurance Company of America, 49 N I. 'R B 450
a For details of this agreement , seegfootnote , 2 in Matter of The Prudential Insurance
Company of America. 47 N L R B 1103
For Decision and Direction of Election see Matter of The Prudential Insurance Com-
pany of America, Ibid.
6 hatter of The Prudential Insurance Cornliany of America, 49 N 1, R B 450
696 DDODSTI01NS OF NA,TLO'NAL LABOR RELATIONS BOARD
ing. Recently the CIO and AFL participated in,a consent election
involving the Company's agents in the State of Delaware. As a result
of that election the Company now recognizes the AFL as the exclusive
bargaining representative, of all the ' Company's agents who work
wholly or partly in the State of Delaware.
It appears, therefore, that outside the, State of Ohio, collective bar-
gaining on behalf of the Company's agents is now being conducted in
bargaining units at least State-wide in scope. The question now to be
decided is whether or not self-organization of the Company's agents
in the State of Ohio justifies the'establishment of a State-wide unit
there. On December 26, .1942, we found appropriate, on the basis
of the limited extent of self-organization among the Company's agents
in Ohio, a units confined to the agents who are attached to the Com-
pany's three District offices in Toledo, Ohio, and the detached' office at,
Bryan, Ohio. On February 5, 1943, following an election, we certified
the AFL as the exclusive bargaining, representative of the agents in
that- unit.
The progress of union organization among the Company's agents
in Ohio has. been quite rapid in recent months. The evidence in the
instant proceeding reveals that of the Company's 31 district- offices in
Ohio, the unions have claimed majorities in all but 3, either by letters
to the Company, seeking recognition, or by both letters and petitions
filed with the Board. This situation is in striking contrast to the
situation which existed at the time of the hearing in the Toledo case,
when only-6 of the 31 district offices-had been organized. Another
indication of the extent of organization in Ohio is the fact that the
Independent, which had originally petitioned for city-wide units,
changed its position at the hearing, contending for the State-wide
unit. From the aforesaid facts it is clear that the time is ripe for the
establishment of a State-wide unit in Ohio. However, inasmuch as we
have so recently certified the AFL in the Toledo unit, we shall exclude
it from the appropriate unit in the instant proceeding.? ,
We find 'that all industrial agents of the Company licensed, and
working in the State of Ohio,. excluding, however, those agents at-
tached to the three District offices in Toledo and detached office at
Bryan, Ohio, and excluding superintendents, assistant superintend-
ents, office clerks, and cashiers, constitute a unit appropriate for the
purposes of collective bargaining within the meaning of Section 9 (b)
of the Act. Our finding does not, however, preclude a, later finding
that a larger unit is appropriate.
I If the AFL desires to waive its rights under the certification it may by timely motion
filed with the Board request the incorporation of the Toledo unit into the State -wide unit
herein established.
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA 697
V. THE DETERMINATION OF REPRESENTATIVES
We shall direct that the questions concerning representation which
have arisen be resolved by an election by secret ballot among the em-
ployees in the, appropriate unit who were employed during the pay-roll
period immediatley preceding the date of the Direction of Election
herein, subject to the limitations and additions set forth in the
Direction.
The parties requested , in the event that a State -wide unit is found
appropriate , that they all be accorded places on the ballot. The AFL
requested that it be designated as American Federation of Industrial
and Ordinary Insurance Agents' Council , affiliated with the American
Federation of Labor; the Independent requests that it be designated
as International Union of Life Insurance Agents; and the CIO wishes
to be designated as United Office & Professional Workers of America,
Insurance Division , affiliated with the Congress of Industrial Organ-
izations . These requests will be granted.
DIRECTION OF ELECTION
By virtue of and pursuant to the power vested in the National Labor
Relations Board by Section 9 (c) of the National Labor Relations
Act, and pursuant to Article III, Section 9, of National Labor Rela-
tions Board Rules and Regulations-Series. 2, as amended, it is
hereby
DIRECTED 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 Eighth Region, act-
ing 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 vaca-
tion 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 those employees who have since quit or been dis-
charged for cause, to determine whether they desire to be represented
by American Federation of Industrial & Ordinary Insurance Agents'
Council , affiliated with the American Federation of Labor, or by In-
ternational Union of Life Insurance Agents, or by United Office &
Professional Workers of America, Insurance Division , affiliated with,
the Congress of Industrial Organizations , for the purposes of col-
lective bargaining , or by none of said unions.