Washington National Insurance Co.

National Labor Relations Board - Board Decisions

Jul 13, 1944

57 N.L.R.B. 224 (N.L.R.B. 1944)

In the Matter Of WASHINGTON-' 1\' ATIONAL INSURANCE =COMPANY and
•
THE INDUSTRIAL 'AND ORDINARY INSURANCE AGENTS' COUNCIL '
A. F. L.
Case No. 13-R-2224.-Decided July 13, 19/14
Sonnenschein, Berkson, Lautmann, Levinson, & Morse, by Messrs. ,
Henry S. Moser and Roger S. Bloch, of Chicago, Ill., and Mr. Raymond -
J. Wetterlwnd, of Evanston, Ill., for the Company.
Messrs. Albert F. O'Neil and Walter Fagner, of Chicago, Ill., for the
Union.
Mrs. Catherine W. Goldman, of counsel to the Board.
DECISION
AND
ORDER
1\ STATEMENT OF THE CASE
Upon a petition duly filed,by The Industrial and Ordinary Insurance
Agents' Council, affiliated with the American Federation of Labor,
herein called the Union, alleging that a question affecting commerce
had arisen concerning the representation of employees of Washington
National Insurance Company, Evanston, Illinois, herein called the
Company, the National Labor Relations Board provided for an appro-
priate, hearing upon due notice before Francis X. Helgesen, Trial
Examiner. Said hearing was held at Chicago, Illinois, on March 9
and 11•,1944. The Company and.the Union appeared and participated.
All parties were afforded full opportunity to be heard, to examine and
cross-examine witnesses, and to introduce evidence bearing on the
issues. The Trial Examiner's rulings made at the hearing are free
from prejudicial error and are hereby affirmed. All parties were
afforded an opportunity to file briefs with the Board.
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY ,
Washington National Insurance Company, an Illinois corporation
with its principal office in Evanston, Illinois, is engaged in writing life,
57 N. L. R. B., No. 40.
224
WASHINGTON NATIONAL 'INSURANCE COMPANY • 225
accident, and health insurance, both individual and group policies,
and iii matters incident to, the writing of insurance. - ,
According to a published annual financial statement of the Com-
pany, dated January 1, 1944, the Company has life insurance in force
amounting to $288,190,365, a premium income of $17,491,689.05, and
total assets of $58,792,275.13. The statement relates that the Company
has financed F. H. A. mortgage loans in the amount of $9,391,399.84,
and other mortgage loans on real estate in the amount of $1,379,224.53.
It also states that the Company has, purchased railroad bonds valued
at $200,769.79, and public-utility bonds valued at $1,725,569.25.
The Company is licensed to do business in 46 States and the District
of Columbia. It owns real estate and maintains bank deposits in 4
States in addition to the State of Illinois.
We find, contrary to the contention of the Company, that the Com-
pany is engaged in commerce within the meaning of the National
'Labor Relations Act.
II. THE ORGANIZATION INVOLVED
The Industrial and Ordinary Insurance Agents' Council, affiliated
with the American Federation of Labor, is a labor organization ad-
mitting to membership employees of the Company.
III. THE ALLEGED APPROPRIATE UNIT
• The Company divides its business into departments established in
accordance with the forms of insurance sold: namely, industrial, ordi-
nary,life, casualty, group, and newspaper. The Industrial Depart-
ment, which is controlled by the executive vice president of the
Company and which includes the agents involved in this proceeding,
is divided into two territories, each under the direction of a second vice
president. The territories are further partitioned into five divisions
supervised by division managers; and, in turn, the divisions are sepa-
rated into districts headed by district managers. The State of Illinois
lies partly in one territory and partly in the other, falls within 2
divisions, and includes 5 districts. The Chicago area; embraced by the
petition, covers 2 districts. There are approximately 67 agents of the
Company working in the State of Illinois; 33 of these agents work in
the Chicago area. r
The Union contends that a unit confined to the Chicago area, coin-
ciding with its present state of organization, is appropriate; the
ComrIny contends that a State-wide unit is appropriate.
We have frequently found units confined to small groups of em-
ployees appropriate upon the basis of extent of organization among
the employees, with a provision for revision of the unit upon a later
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226 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
showing of broader organization.' We believe, however, that the fore-
going principle is not here applicable. As we recently stated in Matter
of Metropolitan Life Insurance Company '2 organization among insur-'
ante ,agents, although comparatively recent, is steadily progressing
and tending toward State-wide units, which we believe are, in most
instances, the most practicable for collective bargaining purposes.
Since the record here does not convince- us that a State-wide bargaining
unit for the Company's agents is improbable in the near future, we are
of the opinion that the limited unit proposed by the Union is not appro-
priate. We shall, therefore, dismiss the Union's petition without
prejudice.
Since the unit proposed in this proceeding is not appropriate for
the purposes of collective bargaining, we find that no question has
arisen concerning the representation of employees of the Company,
within the meaning of Section 9 (c) of the Act.
ORDER
Upon the basis of the foregoing - findings of fact, and the entire
record in this proceeding, the National Labor Relations Board hereby
orders that the petition for investigation and certification of repre-
sentatives of employees of Washington National Insurance Company;
Evanston, Illinois, filed by The Industrial and Ordinary Insurance
Agents' Council, A. F. L., be, and it hereby is, dismissed without
prejudice.
' See Matter of Mhne Safety Appliances Co, 55 N L . R B 1190
% 56 N.,L . R B 1635 and 1642.
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