Willys Overland Motors, Inc.

National Labor Relations Board - Board Decisions

Oct 4, 1939

15 N.L.R.B. 864 (N.L.R.B. 1939)

In the Matter Of WILLYS' OVERLAND MOTORS, INC. and THE PATTERN
MAKERS LEAGUE OF NORTH AMERICA
Case No. R-1445.-Decided October 4, 1939
Automobile Manufacturing Industry-Labor Organizations Involved: recog-
nition of split in parent labor organization; two groups constituting separate
labor organizations affiliated with C. I. O. and A. F. L.Investigation, of Rep-
resentatives: controversy concerning representation of employees: rival organ-
izations, employer's refusal to recognize petitioner-Unit Appropriate for
Collective Bargaining: subdivision composed of pattern and model makers in
research and experimental department; controversy as to craft or plant-wide
units, either appropriate ; desires of pattern and model makers to determine ;
prior decision of Board, establishing unit inclusive of employees affected, will
not preclude determination on merits, since craft representative relied on assur-
ance by Board agent that intervention in prior proceeding was not necessary to
protect craft's position-Election Ordered: to determine appropriate unit and
representatives thereof ; both A. F. L.-U. A. W. and C. I. O.-U. A. W. to be
placed on ballot unless Regional Director notified of desire not to be represented
thereon.
Mr. Bernard Bralove,' for the Board.
Ritter d Dougherty, by Mr. C. Milton McCreery, of Toledo, Ohio,
for the Company.
Mr. Edward Lamb, by Mr. Lowell Gorlich, of Toledo, Ohio, for
the U. A. W.
Mr. C. D. Madigan, for the P. M. L.
Mr. Frederick W. Killian, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On March 27, 1939, The Pattern Makers League of North America,
herein called the P. M. L., affiliated with the American Federation
of Labor, filed with the Regional Director for the Eighth Region
(Cleveland, Ohio) a petition alleging that a question affecting com-
merce had arisen concerning the representation of employees of
Willys Overland Motors, Inc., Toledo, Ohio, herein called the Com-
pany, and requesting an investigation and certification of representa-
15 N. L. R. B., No. 98.
864 -
WILLYS OVERLAND MOTORS, INC. 865
tives pursuant to Section 9 (c) of the National Labor Relations Act,
49 Stat. 449, herein called the Act.
On June 2, 1939, 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 Regu-
lations-Series 1, as amended, ordered an investigation and author-
ized the Regional Director to conduct it and to provide for an appro-
priate hearing upon due notice.
On July 14, 1939, the Regional Director issued a notice of hearing,
copies of which were duly served on the Company, the P. M. L.,
International Union, United Automobile Workers of America (affili-
ated with the Congress of Industrial Organizations), herein called
U. A. W., the Mechanics Educational Society of America, Local
#4, herein called M. E. S. A., and International Association of
Machinists, Local #105, herein called I. A. M.
Pursuant to notice, a healing was held on July 27 and 28, 1939,
at Toledo, Ohio, before Earl S. Bellman, the Trial Examiner duly
designated by the Board. The Board, the P. M. L., and the U. A. W.
were represented by counsel, and participated in the hearing. The
M. E. S. A. and the I. A. M. did not appear. Full opportunity to
be heard, to examine and cross -examine witnesses , and to introduce
evidence bearing upon the issues was afforded all parties. During
tha 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.
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
I. THE COMPANY AND ITS BUSINESS'
Willys Overland Motors, Inc., is a Delaware corporation, incor-
porated July 23, 1936, after a reorganization, and is engaged in the
manufacture and sale of automobiles, trucks, and automobile parts.
The Company maintains an office and plant at Toledo, Ohio, and an
automobile, assembly plant at Maywood, California. The Company
owns all the stock of Willys Export Corporation, an Ohio corpora-
tion, which sells the Company's products in foreign countries, and
also all the capital stock of Willys of Canada, Ltd., a Canadian cor-
poration, which purchases products from the Company for resale
in the Dominion of Canada. This proceeding concerns only the
Company's employees in Toledo.
The iindinas in this section are based anon a stipulation of facts.
866 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
The principal raw materials used by the Company in its manu-
facturing operations are steel, fabrics, and paint. It also uses large
quantities of fabricated materials, such as stampings, engines, tires,
glass, and automotive parts. In the fiscal year ending September 30,
1938, the Company purchased approximately $5,000,000 worth of
these materials, and approximately 60 per cent of these various raw
and fabricated materials were purchased and transported from
sources outside the State of Ohio to the Company's Toledo plant.
Approximately 95 per cent of the automobiles, trucks, and automobile
parts manufactured by the Company were sold outside the State of
Ohio during the fiscal year ending September 30, 1938, and during
that year, the total sales of the Company, including both cars and
parts, amounted to $11,088,445.93.
The Company's Toledo plant employed and had working approxi-
mately 530 employees on July 13, 1939, and during the week of June
19 to 23, 1939, the Company employed and had working a maximum
of 1,900 employees.
IT. THE ORGANIZATIONS INVOLVED
International Union, United Automobile Workers of America,
Local No. 12, is a labor organization which at the time the petition
herein was filed was affiliated with the Congress of Industrial Or-
ganizations. It admits to membership all employees of the Company
at Toledo, Ohio, including clerical and office workers but excluding
those with the power to hire and discharge, and its membership also
includes employees of a number of other employers in Toledo, Ohio.
The split occurring early in 1939 within the membership of the Inter-
national Union, United Automobile Workers of America, of which 12
is a local, has been recognized by the Board as establishing two sep-
arate labor organizations : one affiliated with the Congress of Indus-
trial Organizations, herein called the C. I. O.-U. A. W.; and the
other affiliated with American Federation of Labor, herein called
the A. F. L.-U. A. W. However, the record in the present proceed-
ing fails to show that prior to the hearing any affirmative action
with reference to this controversy was taken by Local 12. Conse-
quently, we are unable definitely to determine whether Local 12 has
reaffirmed its affiliation with the Congress of Industrial Organiza-
tions, or whether it has become affiliated with the American Federa-
tion of Labor.
The Pattern Makers League of North America is a labor organi-
zation affiliated with the American Federation of Labor. It has
chartered The Pattern Makers League of Toledo and admits prac-
tical pattern makers to membership.
WILLYS OVERLAND MOTORS, INC.
Ill. THE QUESTION CONCERNING REPRESENTATION
867
On January 18, 1939, the Board issued its Amendment to Decision,
Supplemental Decision and Certification of Representatives 2 in
which the Board certified the U. A. W. as the exclusive representa-
tive of the employees of the Company in a unit consisting of all
employees at Toledo, Ohio, including foremen, assistant foremen,
foreladies, factory clerical employees, plant-protection employees,
timekeepers, time checkers, pay-roll clerks, draftsmen, designers,
engineers, and employees in the experimental and research building,
but excluding department heads, division superintendents, general
foremen, time-study employees, budget clerks, paymasters, assistant
paymasters, safety engineers, the private secretaries of the personnel
manager, the works manager, the head of the labor-relations com-
mittee, and the head of the time-study department, die sinkers, the
maintenance mechanics and maintenance machinists, and the clerical
employees in the Administration Building, for purposes of collec-
tive bargaining. This unit included the pattern and model makers
employed by the Company.
The P. M. L. contends, in this proceeding, that the pattern and
model makers, who are employed in the research and experimental
department, constitute a separate appropriate unit for purposes of
collective bargaining. This contention is based upon a change in
the departmental structure of the research and experimental depart-
ment made by the Company in April or May 1938 at which time
the Company established a subdivision of the department composed
exclusively of pattern and model makers. From this time, the em-
ployees in the subdivision devoted most of their time to making
Keller models, a type of work which had not previously been per-
formed in the research and experimental division but which had been
contracted for between other firms in Toledo and the Company.
This change had been made prior to The June 2 to 7, 1938, hearing
in the earlier representation proceeding which resulted in the cer-
tification of the U. A. W. as exclusive representative of the employees
in the above-described unit, which included the pattern' and model
makers.
The record discloses that the employment of these pattern and
model makers is seasonal and, as is common in the industry for this
type of work, lasts from about January to July. The record also
shows that after establishment of the subdivision in April or May
1938 and immediately preceding and during the June 2 to 7, 1938,
hearing in the earlier representation proceeding, there were em-
ployed in the subdivision three pattern and model makers affiliated
210 N. L. R. B. 160.
868 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
with the P. M. L., that no additional pattern and model makers were
hired until January 1, 1939, and that from January to July 1939
there was a maximum of 13 or 14 pattern and model makers affili-
ated with P. M. L. employed in the subdivision.
The P. M. L. was not served or notified in the earlier representa-
tion proceeding. It did, nevertheless, make an effort to protect its
rights in the premises. The. record shows that the attorney for the
P. M. L., upon being informed of the proceeding by its business
manager, consulted with an agent for the Board for the purpose of
protecting the rights of the P. M. L. and was advised that it would
not be necessary for the P. Al. L. to intervene in the proceeding and
that it being such short notice, he, the Board agent, would see what
he could do to protect the rights of the P. M. L. in the hearing. The
exact form of protection is not specified in the record and it may
well be that the attorney for the P. M. L. and the Board's agent mis-
understood each other as the record itself is vague as to what actually
happened. However, since there is a showing of reliance by the
P. M. L. on certain expressed intentions of an agent for the Board,
we will not regard our previous finding on the appropriate, unit as
precluding a determination of this proceeding on the merits.
There were pattern and model makers employed in the subdivision
when the petition in this proceeding was filed and for some months
afterwards. It was not the fault of the P. M. L. that the hearing
was delayed until after the pattern and model makers' season was
over. The fact that the season for these employees lasts only a few
months at best is a factor which must be considered in determining
the issues here involved.
We find that a question has arisen concerning representation of
employees of the Company.
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
relation 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
Since January 18, 1939, the date of the certification of the U. A. W.,
that organization has bargained with the Company for the employees
included in the unit for which it was certified as exclusive represent-
ative but to the date of hearing no collective agreement had even-
WILLYS OVERLAND MOTORS, INC. 869
tuated.3 The U. A. W. asserted at the hearing that it intended to
continue to represent the pattern and model makers and to seek a
collective agreement with the Company covering them.
The record shows that the P. M. L. has on occasion, over a period
of many years prior to the formation of the subdivision, furnished
pattern makers for the research and experimental department of
the Company. It furnished approximately 14 or 15 pattern and
model makers for the subdivision between May 1938 and June 1939.
The business manager of the P. Al. L. maintained an understanding
with the Company, through the foremen of the subdivision, con-
cerning the wages of the pattern and model makers. After the
certification of U. A. W. on January 18, 1939, the P. M. L., for the
first time, attempted to secure a collective agreement with the Com-
pany, but the Company refused to consider the proposal because of
doubt arising as to the appropriate unit by reason of the Board's,
certification.
It is clear on the record that the pattern and model makers per-
form a separate,` skilled, and specialized function within the general
scheme of the research and experimental division. From May 1938
to July 1939, their work consisted mostly of making models for
Keller machines and, although occasionally employees from other
divisions of the plant were detailed to the research and experimental,
department and worked on models, nevertheless the pattern and
model makers affiliated with the P. M. L. performed by far the
greater part of that work.
The contentions of both the P. M. L. and the U. A. W. with respect
to pattern and model makers seem equally plausible. The industrial
unit would seem to be as effective and appropriate for bargaining
purposes as a separate bargaining unit and vice versa. We will,
therefore, follow our -usual rule and hold that the determining factor
will be the desires of the pattern and model makers themselves. The
record is not conclusive on. this point. We find that the question
which has arisen concerning representation of the pattern and model
makers can best be resolved by means of an election by secret ballot.
to determine by which organization they wish to be represented.
As we have noted above, two separate labor organizations, the
C. I. O.-U. A. W., a1ld the A. F. L.-U. A. W., have resulted from the
split occurring early in 1939 within the membership of the Inter-
national Union, United Automobile Workers of America, and the
present record is silent as to whether Local 12 has reaffirmed its.
affiliation with the Congress - of Industrial Organizations or has.
become. affiliated with the American Federation of Labor.
8 There was a written agreement in effect between the U. A. W. and the Company from
early 1936 to early 1937 , but the record does not disclose whether or not the pattern and
model makers were covered by that agreement.
199549-39-vol. 15-56
870 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
The pattern and model makers shall vote at the election to deter-
mine whether they desire to be represented by the P. M. L., the
C. I. O.-U. A. W., or the A. F. L.-U. A. W., for purposes of collective
bargaining, or by none of the three labor organizations. On the re-
sults of the election will depend the appropriate unit. If the em-
ployees choose the P. M. L. they will constitute a separate and distinct
appropriate unit; otherwise the P. M. L.'s petition will be dismissed,
and the pattern and model makers will remain merged in the larger
un it..
Since there may be some question as to whether the labor or gan-
ization with which Local 12 is not affiliated will desire to participate
in the election herein ordered, we shall withdraw from the ballot the
name of any labor organization which within 5 days after receipt of
Notice of Direction of Election notifies the Regional Director for the
Eighth Region that it desires such withdrawal.
We shall make provision for determining eligibility to participate
in the election which will most closely reflect the employment situa-
tion in the subdivision at the time of the election. We shall, there-
fore, direct that an election be held within 60 days after the restunp-
tion of operations in the subdivision of the research and experimental
department. All the pattern and model makers in the subdivision
of the research and experimental department of the Company's plant
in Toledo who shall be employed by the Company during the pay-roll
period immediately preceding the date of the election, except those
who, having been hired after operations shall have been resumed,
shall have quit or been discharged for cause before the election, shall
be eligible to participate in the election.
Upon the basis of the above findings of fact and upon the entire
record in the case, the Board makes the following:
CONCLUSION OF LAW
A question affecting commerce has arisen concerning the represen-
tation of employees of the Company, within the meaning of Section
9 (c) and Section 2 (6) and (7) of the National Labor Relations 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 Rela-
tions Act, and pursuant to Article III, Section 8, of National Labor
Relations Board Rules and Regulations-Series 2, it is hereby
DIRECTED that, as part of the investigation authorized by the Board
to ascertain representatives for collective bargaining with. Willys
Overland Motors, Inc., Toledo, Ohio, an election by secret ballot shall
WILLYS O`TE11LA\D MOTORS, INC. 871
be conducted within 60 days after the resumption of operations in the
subdivision of the research and experimental department of the
Willys Overland Motors, Inc., Toledo, Ohio, under the direction
and supervision of the Regional Director for the Eighth Region,
acting in this matter as agent of the National Labor Relations
Board and subject to Article III, Section 9, of said Rules and
Regulations, among the pattern and model makers of Willys Over-
land Motors, Inc., Toledo, Ohio, employed in the research and experi-
mental department by the Company during the pay-roll period
immediately preceding the date of the election, including those who
did not work during such pay-roll period because they were ill, on
vacation, or temporarily laid off, but excluding those who, having
been hired after resumption of operations, shall have quit or been
discharged for cause, to determine whether they desire to be repre-
sented by The Pattern Makers League of North America (A. F.
of L.), by International Union, United Automobile Workers of
America, affiliated with the Congress of Industrial Organizations, or
by International Union, United Automobile Workers of America,
affiliated with the American Federation of Labor, for purposes of
collective bargaining, or by none of the three labor organizations.
MR. EDWIN S. SbIITIi, concurring :
Although the P. M. L. has not had formal contractual relations
with the Company, that organization has, for some years, supplied
the company with pattern and model makers and maintained a wage
scale with the Company for such workers. I regard this as sufficient
warrant for permitting pattern and model makers a choice between
bargaining separately and merging their interests with those of their
fellow employees in the larger unit 4 I agree with Chairman Mad-
den's opinion that final determination of the unit should await the
outcome of the separate election for the pattern and model makers.
MR. WILLIAM M. LEISERSON , concurring :
I concur in the direction of an election among the pattern and
model makers employed by the Company, but I do not think it is
necessary to postpone a final determination of the unit pending the
election. I would find now that the pattern and model makers consti-
tute a separate appropriate unit.
4 See my concurring opinion in the similar case of Matter of The William Powell Com-
pany and Pattern Makers Association of Cincinnati , 12 N. L. R. B. 110.