Westates Petroleum Corp.

National Labor Relations Board - Board Decisions

May 24, 1943

49 N.L.R.B. 1076 (N.L.R.B. 1943)

In the Matter of WESTATES PETROLEUM CORPORATION and OIL
WORKERS INTERNATIONAL UNION, LOCAL No. 128, C. I. O.
Case No. R-5234.Decided May'p4,'1943
Mr. R. A. Earle, of Long Beach, Calif., for the Company.
Mr. C. P. Myers, of Long Beach, Calif., for the Union.
Mr. William C. Baisinger, Jr., of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
Upon petition duly filed by Oil Workers International Union,
Local No. 128, C. I. 0., herein called the Union, alleging that a ques-
tion affecting commerce had arisen concerning the representation of
employees of Westates Petroleum Corporation, San Francisco, Cali-
fornia, herein called the Company, the National Labor Relations
Board provided for an appropriate hearing, upon due notice before
George H. O'Brien, Trial Examiner. Said hearing ,was held at Los
Angeles, California, on April 20 and 21, 1943. The Company and
the Union appeared, participated, and were afforded full opportunity
to be heard, to examine and cross-examine witnesses, and to introduce
evidence bearing upon the issues. The Trial Examiner's rulings made
at the hearing are free from prejudicial error and are hereby affirmed.
Upon the entire record in the case, the Board makes the following:
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY
Westates Petroleum Corporation, a Nevada corporation, is a wholly
owned subsidiary of Westates Petroleum Company, a, Delaware
corporation, and is engaged in the business of drilling and producing
oil and gas and, hydrocarbon substances. Its 'principal office is in
San Francisco, California, and it maintains field offices in Coalinga,
Bakersfield, Fillmore, and Long Beach, California, and at Jal,,-New
Mexico, and Hamilton Dome, Wyoming. During 1942 the total sales
49 N. L. R. B., No 155.
1076 °
WESTATES PETROLEUM CORPORATION 1077
of the products produced by the Company, less royalties, amounted to
$494,185.28. The oil produced in California, valued at $438,938.09,
was sold to Standard Oil Company of California, Hancock. Oil Com-
pany, Signal Oil & Gas Co., Krieger Oil'& Refinery, the Texas Com-
pany, and Sunset Oil Company. All sales are consummated at the
tanks on the Company's fields. During the same period, the Com-
pany also sold gas to the Signal Oil & Gas Co., General Petroleum
Corporation, and Lomita Gasoline Company. Approximately 25 per-,
cent of the oil produced in California annually, of which the oil pro-
duced by the Westates Petroleum Corporation is a part, is delivered
to ultimate consumers outside the State of California. During 1942,
the Company used raw- materials consisting of gasoline, lubricants,
drilling equipment, lease maintenance equipment, electricity, oil well
supplies, drilling supplies, automobiles, and automotive, equipment
valued at $148,477.99. Approximately 75 percent .of said raw mate-
rials originated at points outside the State of California. However,
the Company purchased the greater portion of these raw materials
from local vendors. The Company denies that it is engaged in com-
merce within the meaning of the National Labor Relations Act.
We find, contrary to the contention of the Company, that it is
engaged in commerce within the meaning of the Act.'
It. THE ORGANIZATION INVOLVED
Oil Workers International Union, Local No. 128, is a labor organi-
zation affiliated with the Congress of Industrial Organizations.'
admitting to membership employees of the Company.
III. TIIE QUESTION CONCERNING REI'RESENTA'ZON
On or about March 9, 1943, the Union advised the Company that
it represented a majority of the production and maintenance em-
ployees employed by the Company at its Long Beach, California,
operation, and requested recognition as their exclusive bargaining
representative. The Company has refused to recognize the Union
because it disputes the alleged majority representation of the Union
and denies the appropriateness of the unit sought by the Union.
A statement of a Field Examiner of the Board, introduced into
evidence at the hearing, indicates that the Union represents a
substantial number of employees in the unit hereinafter found to be.
appropriate.'
' See Santa C, uzz Fruit Paakxn i Co V. A. L R. B , 303 U. S:• 453 and N. L. R B. v.
Sunshine Mining Co, 110 F ( 2d) 780 (C. C. A.,9)
2The report of the Field Examiner states that the Union submitted 18 applications. .
for membership cards dated between February and March 194:3, bearing apparently genuine
signatui es of persons whose names appear on the Coiapany',s pay roll of 'Mat ch 26, 1943,
which pay loll lists 21 names in the appropriate unit.
1078 , DEO11SIONS OF NATIONAL LABOR RELATIONS BOARD
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 Union seeks a unit comprised of all production and maintenance
employees , including head well pullers and helpers, pumpers,
mechanics , welders, and watchmen employed by the Company at its
Long Beach operation , but excluding all other employees . The Com-
pany, on the other hand , contends that the unit should include all
production , maintenance , and drilling employees employed by the
Company at its various fields in California , including ' head well
pullers and helpers, pumpers , mechanics , welders, watchmen , roust-
abouts, and drilling crews. _
The Union 's organizational activities have extended only to those
employees of the Company at the Long Beach, California , field. The
Union would exclude roustabouts from the unit because there are no
such employees presently employed in the Long Beach field. It
would exclude drilling , crew employees , for the same , reason and for
the additional reason that- these latter employees are, shifted from
field to field as new wells are to be drilled . The Company bases its
contention that a State -wide unit is appropriate on the ground that
the frequent interchange of employees among the various fields
operated by the Company in California militates against the estab-
lishrnent of a separate bargaining unit limited to employees at the
Long Beach operation . The Company also argues that since the work
performed by its employees is similar in all fields, and since equip-
ment, as well as personnel , is interchangeable, a State-wide unit alone
is appropriate.
The record discloses-that there have been only three transfers from
the Long Beach field to other fields of the Company since 1936. A
majority of the employees at the Long Beach field possess ove' 5
years' seniority in that field . An official of the Company testified
that while the Long Beach field has been the largest producing field
of" the Company for a number of years, its production is presently
falling off land as a result it has become a secondary field. He stated
that the Company intends to develop an additional field in California
located in the San Joaquin Valley and that many , of the personnel
presently employed at the Long Beach field will- be transferred to
this new operation.- It is apparent that employment at the Long
Beach field is relitively stable, and that the employees at that field
can readily be segregated from the Company 's other employees in the
State on a functional and geographic basis.
WESTATES PETROLEUM CORPORATION 1079
-There' would appear to be merit in the Company's contention that
all its production and' maintenance employees employed in California
may constitute an appropriate unit. Sine, however, the Union is
the only labor organization which has attempted to organize the
Company's employees, and so far it has limited its activities to pro-
duction and maintenance employees in the Long Beach field, we find,
at the present time, that a bargaining unit limited to these employees
is appropriate. Our finding herein is no bar to a later determination
at another stage of self-organization among the Company's employees
that a more' comprehensive unit may be appropriate.
While no roustabouts are presently employed at the Long Beach
field and the Union does not seek their inclusion in the unit, such
employees are eligible to membership in the Union and, accordingly,
we shall include roustabouts in the appropriate unit if any are sub-
sequently hired by the Company at this field. We shall exclude
'drilling crew employees from the unit inasmuch as they move from
field to field as new wells are to be drilled, and are never permanently
assigned to any location.
We find that all production and maintenance employees, including
head well pullers and helpers, pumpers, mechanics, welders, watchmen,
and roustabouts employed by the Company at Long Beach, California,
but excluding all other employees, 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 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 Westates Petro-
leum Corporation, San Francisco, California; an election by secret
ballot shall be conducted as early as possible, but not later than thirty
1080 DECIISIOONS OF NATIONAL LABOR RELATIONS BOARD
(30) days from the date of this Direction , under the direction and
supervision of the Regional Director for the Twenty-first 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 employees who have since quit or been discharged for cause,
,-to determine whether or not they desire to be represented by, Oil
Workers International Union, Local No. 128, C. I. 0., for the purposes
of collective bargaining.
CHAIRMAN MILLis took no part in the consideration of the above
Decision and Direction of Election.