United Steel and Wire Co.

National Labor Relations Board - Board Decisions

Dec 23, 1940

28 N.L.R.B. 761 (N.L.R.B. 1940)

In the Matter Of UNITED STEEL AND WIRE COMPANY and LOCAL •704,
INTERNATIONAL UNION, UNITED AUTOMOBILE WORKERS OF AMERICA,
AFFILIATED WITH THE C. I. O. AND INTERNATIONAL UNION, UNITED
AuTo MOBILE WORKERS OF AMERICA, AFFILIATED WITH THE C. I. O.
Case No. R-2160.-Decided December 23, 1940
Jurisdiction : wire product manufacturing industry.
Investigation and Certification of Representatives : existence of question: con-
flicting claims of rival representatives ; contract entered into during the
uncertainty of an organizational period at a time when the parties knew
that a rival organization had a substantial membership and claimed a
majority, no bar to; election necessary.
Unit Appropriate for Collective Bargaining : all hourly employees at two plants
of the Company, excluding executives, supervisors, foremen, assistant fore-
men, clerks, draftsmen, watchmen, firemen, supervisory inspectors and assist-
ants, and other employees having supervisory authority over employees' right
to work.
Beaumont, Smith, d Harris, by Mr. Albert A. Meder, of Detroit,
Mich., for the Company.
Mr. Maurice Sugar and Mr. N. L. Smokier, of Detroit, Mich.,
for the International.
Mr. George Lobig, of Climax, Mich., for the Independent.
Mrs. Augusta' Spaulding, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On June 18, 1940, International Union, United Automobile Work-
ers of, America, herein called the International, and Local 704,
International Union, United Automobile Workers of America,
herein called Local 704, filed With the Regional Director for the
Seventh Region (Detroit, Michigan) a petition and on July 15,
1940, an amended petition, alleging that a question affecting com-
merce had arisen concerning representation of employees of United
Steel and Wire Company, Battle Creek, Michigan, herein called
the Company, and requesting an investigation and certification of
representatives pursuant to Section 9 (c) of the National Labor
28 N. L R B, No. 115.
' 761
762 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Relations Act, 49 Stat. 449, herein called the Act., On November
12, 1940, 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 Relations Board Rules and Regula-
tions-Series 2, as amended, ordered an investigation and authorized
the Regional Director to conduct it and to provide for an appropriate
hearing upon due notice.
On November 12, 1940, the Regional Director issued a notice of-
hearing, copies of which were duly served upon the Company, the
International, and Independent Association of Employees of United
Steel and Wire Company, herein called- the Independent, a labor
organization claiming to represent employees directly affected by
the investigation. Pursuant to the notice, a hearing was held on
November 18 and 19, 1940, at Battle Creek, Michigan, before Oscar
Grossman, the Trial Examiner duly designated by the Board. The
Company and -the International were represented by counsel, the
Independent by an employee member, and all participated in the
hearing. Full opportunity to be heard, to examine and cross-
examine witnesses, and to introduce evidence bearing on the issues
was afforded all parties. During the course of the hearing, the
Trial, Examiner made several rulings on motions and 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. The Company and
the International each filed a brief which the Board has considered.
Upon the entire record in the case, the Board makes the following:
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY
United Steel and Wire Company, a Michigan corporation, has
its office and principal place of business at Battle Creek, Michigan,
where it operates two plants under one management. Raw materials
used at its plants are galvanized and plain sheet metal, bands, steel
wire, tin, zinc, muriatic acid, paraffin, fuel oil, coal, and electricity.
During the first 6 months of 1940, the value of the raw materials,
of which 95 per cent were obtained outside Michigan, amounted to
$733,986.30. During the same period, the value of its finished prod-
ucts, which include baskets, crates, carriers, coops, oven shelves and
broiler, racks, refrigerator shelves, rabbit hutches, broilers, sausage
molders, stove carts, display racks, and metal and wire specialties
to order, of which 68.4 per cent were shipped to customers outside
Michigan, amounted to $1,892,939.58.
1 The International filed the petition and amended petition . At the close of the hearing
the petition and other formal papers were amended to make Local 704 a copetitioner
with the International
UNITED STEEL AND WIRE COMPANY 763
II. THE ORGANIZATIONS INVOLVED
International Union, United Automobile Workers of America, is
a labor . organization affiliated with the Congress of Industrial Or-
ganizations. Local 704, a labor organization chartered by the Inter-
national in March 1940, admits to membership employees of the
Company.
Independent Association of, Employees of United Steel and Wire
Company is an unaffiliated labor organization. It admits to mem-
bership employees of the Company.
III. THE QUESTION CONCERNING REPRESENTATION
In February 1940 the International began organizing the em-
ployees of the Company and late in March granted the charter for
Local 704. On or about- March 19, 1940, a number of employees
determined to form an independent union to prevent the Interna-
tional from securing a majority in the plant. They began an
organizing campaign, assisted by the president of an independent-
union in a local plant. On March 25 a committee of the Interna-
tional met with representatives of the Company and asked for
recognition of the International as bargaining agent of the Com-
pany's employees. The Company, demanding proof of majority
representation, refused to grant such recognition. On March 26,.
the organizing committee of the Independent met with the same,
representatives of the Company and asked for similar recognition.
The Company refused to grant such recognition in the absence of
proof of majority, thereafter posting on the plant bulletin boards-
its refusal to grant recognition to any labor organization until
adequate proof of majority representation should be made. On
April 1 the Independent conferred again with the representatives-
of the Company, then claiming to represent a majority. The Com-
pany and the committee of the- Independent immediately arranged
for a check to be made by a designated certified public accountant
on April 2 of signatures on the Independent's cards and signatures
in the possession of the Company of employees on the current pay
roll. The Company and the Independent agreed on the appropriate
bargaining unit and prepared lists of eligible and ineligible em-
ployees. On April 2 the certified public accountant made the check
as agreed and certified that the Independent had 380 members,
and therefore a majority of 33, among 694 eligible employees. On
the same day the Company recognized the Independent as sole
bargaining agent of such employees. On April 3 a representative, of
the International conferred with the representatives of the Company,
to protest its recognition of the Independent. He demanded an
764 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
k
election and in the alternative threatened to call a strike. The Com-
pany's representative replied that an election was unnecessary in
view of the majority showing of the Independent on April 2.
On April 7 the Independent adopted a• constitution and bylaws,
elected officers, and appointed a -bargaining committee. After some
negotiations the Company and the Independent on April 22 signed
a bargaining contract, effective by its terms until July 1, 1941, in
which the Company recognized the Independent as sole bargaining
agent for the agreed unit. The, International continued its organiza-
tion of the Company's employees, during April and May and in
June filed the petition in this proceeding.
The Company contends that it entered upon the contract of
April 22, relying in good faith upon reasonable evidence of the Inde-
pendent's majority on April 2. We cannot agree with this conten-
tion. The Company and the Independent signed a contract during
the, uncertainty of an organization period at a time when they
knew that a rival organization had a substantial- membership and
claimed a majority. Moreover, the record discloses that as of April
2, 33 Independent cards were signed by employees who had also
signed cards of the International on or before that date. This dupli-
cation of membership cards and the International's conflicting claim
make doubtful the Independent's majority claim on April 2, the
day when the Company recognized the Independent as bargaining
agent. Under these circumstances we find that the contract does
not constitute a bar to an election at this time.2
A statement prepared by the Regional Director and introduced
into evidence discloses that the Independent and the International
have, been designated by a substantial number of the Company's
employees in the appropriate unit."
r
2 Cf. Matter of Southern Chemical Cotton Company and Textile Workers Organizing
Committee, 3 N. L. R . B. 869; Matter of Colonic Fibre Company, Inc, and Cohoes Knit
Goods Workers Union No. 21514, A. F. of L., 9 N. L. R. B. 658, Matter of The Peoples
Gas Light and Coke Company and Chicago By-Product Coke Company and United Mine
Workers of America, District 50, affiliated with the Congress of Industrial Organizations,
15 N. L . R B. 1024; Matter of Silvray Lighting, Inc. and International Brotherhood of
Electrical Workers Local Union No. 8, 18 N . L; R. B. 719 ; Matter of Elk Tanning Company
and International Fur and Leather Workers Union, affiliated with the 0. 1. 0., 26 N. L.
It. B., No. 79.
a The International presented to the Regional Director in support of its claim to repre-
sent 361 employees in the appropriate unit 42 application cards dated March 1940, 186
authorizations dated March , April, and May, 1940, and 133 petitions for an election dated
June 27, 1940. Of the 361 signatures 7 are not legible and the others appear genuine;
185 are names on the pay roll of October 1; 121 do not appear on such pay roll ; 48
signatures are duplications . The International claims that 223 membership cards were
stolen late in March 1940.
-The Independent in support of its -laim submitted 474 applications for membership,
which are dated March and April 1940 and appear to bear genuine signatures of em-
ployees, of which 338 appear on the pay roll of October 1. The number of employees in
the appropriate unit. at the time of the hearing was approximately 700.
UNITED STEEL AND WIRE COMPANY , : 765
We find that a question has arisen concerning the representation of
employees of the Company at its Battle Creek, Michigan, plants.
IV. 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 rela-
tion 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. THE APPROPRIATE UNIT
The parties agree and we find that all hourly paid employees of the
Company at its 'Battle Creek, Michigan, plants, excluding executives,
supervisors, foremen, assistant foremen, clerks, draftsmen, watchmen,
firemen, supervisory inspectors and assistants, and-other employees
having supervisory'authority over employees' right to work, constitute
an appropriate unit. We find 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.
VI. THE DETERMINATION OF REPRESENTATIVES
We find that the question concerning representation of employees
of the Company can best be resolved by, and we shall accordingly ,direct,,
an election by secret ballot. Those eligible to vote in the election shall
be employees in the appropriate unit who were employed during the
pay-roll period immediately preceding the date of our Direction of
Election, including employees who did not work during such pay-roll
period because they were ill or on vacation and employees who were
then on or have since been temporarily laid off, but excluding em-
ployees who have since quit or been discharged for cause.
On the basis of the above findings of fact and upon the entire record
in the case, the Board makes the following:
CONCLUSIONS OF LAW
1. A question affecting commerce has arisen concerning the repre-
sentation of employees of United Steel and Wire Company, Battle
Creek, Michigan, within the meaning of Section 9 (c) and Section 2
(6) and (7) of the Act.
2. All hourly paid employees of the Company at its Battle Creek,
Michigan, plants, excluding executives, supervisors, foremen, assistant
foremen, clerks, draftsmen, watchmen, fireIlen, supervisory inspectors
and assistants, and other employees having supervisory authority over
766 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
employees' right to work, constitute a unit appropriate for the purposes
of collective bargaining within the meaning of Section 9 (b) of the 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 Relations
Act, and pursuant to Article III, Section 8, of National Labor Rela-
tions Board Rules and Regulations-Series 2, as amended; it is hereby
DIRECTED that, as part of the investigation authorized by the Board to
ascertain representatives for collective bargaining with United Steel
and Wire Company, Battle Creek, Michigan, an election by secret bal-
lot shall be conducted as early as possible but not later than thirty (30)
days from the date of this Direction of Election, under the direction
and supervision of the Regional Director for the Seventh Region, act-
ing in this matter as agent for the National Labor Relations Board,
and subject to Article III, Section 9, of said Rules and Regulations,
among all hourly paid employees of United Steel and Wire Company
at its Battle Creek, Michigan, plants, who were employed during the
pay-roll period immediately preceding the date of this Direction of
Election, including employees who did not work during that pay-roll
period because they were ill or on vacation and employees who were
then or have since been temporarily laid off, but excluding executives,
supervisors, foremen, assistant foremen, clerks, draftsmen, watchmen,
firemen, supervisory inspectors and assistants, other employees having
supervisory authority over employees' right to work, and employees
who have since quit or been discharged for cause, to determine whether
said employees desire to be represented by Local 704, International
Union, United Automobile Workers of America, or by Independent
Association of Employees of United Steel and Wire Company, for the
purposes of collective bargaining, or by neither.
CHAIRMAN HARRY A. MIri s took no part in the consideration of the
above Decision and Direction of Election. ,