Detroit Plating Industries

In the Matter of DETROIT PLATING INDUSTRIES w'bd LOCAL 155, INTER- NATIONAL UNION, UNITED AUTOMOBILE, AIRCRAFT & AGRICULTURAL IMPLEMENT WORKERS OF AMERICA, C. I. O. Case No. R-3456.-Decided ,February 28, 1942 Jurisdiction : electroplating and rustproofing industry. Investigation and Certification of Representatives : existence of question: par- ties stipulated that Company declined to accord union recognition until cer- tified by the Board ; two and one-half year closed-shop contract of which over a year has expired and concerning- which there is doubt that it was entered into without knowledge of petitioning union's claim to representation, no bar; election necessary. Unit Appropriate for Collective Bargaining : all production and non-production employees, excluding executives, supervisory, clerical, watchmen, and sales employees ; no controversy as to. Mr. Frederick R. Bolton, of Detroit, Mich., for the Company. Mr. William L. Thorp and Mr. Fred'A. Burnett, of Detroit, Mich., for the Polishers. Mr. Maurice Sugar and Mr. Jack N. Tucker, of Detroit, Mich., for the U. A. W. Mr. Charles W. Schneider, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF THE CASE On October 8, 1941, Local 155, International Union, United Auto- mobile, Aircraft & Agricultural Implement Workers of America, C. I. 0., herein called the. U. A. W., filed with the Regional Director for the Seventh Region (Detroit, Michigan) a petition alleging that a question affecting commerce had arisen concerning the representa- tion of employees of Detroit Plating Industries, Detroit, Michigan, herein called the Company, and requesting an investigation and cer- tification of representatives pursuant to Section 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. On De- cember. 22, 1941, 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 2, as amended, ordered an investigation and author- '39 N. L. R. B., No. 54. 315 316 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ized the Regional Director to conduct it and to provide for an ap- propriate hearing upon due notice. On January 3, 1942, the Regional Director issued a notice of hear- ing, copies of which were duly- served upon the Company, the U. A. W., and also upon Metal Polishers, Buffers, Platers and Plater Helpers, International Union, Local No. 1, A. F. L., herein called the Polishers, a labor organization claiming to represent employees directly affected by the investigation. Pursuant to notice, a hearing was held on January 13, 1942, at Detroit, Michigan, before Jerome H. Brooks, the Trial Examiner duly designated by the Chief Trial Examiner. The Company, the U. A. W., and the Polishers were represented by counsel and participated in the hearing. Full op- portunity to be heard, to examine and cross-examine witnesses and to introduce evidence bearing on the issues was afforded all parties. The Polishers moved to dismiss the petition. The Trial Examiner referred the motion to the Board. It is hereby denied. During the course of the hearing the Trial Examiner made a number of other rulings on motions and on 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 1. THE BUSINESS OF THE COMPANY Detroit Plating Industries is a Michigan corporation engaged in the business of electroplating and rustproofing at a plant in Detroit, Michigan. During the fiscal year 1941, the Company purchased raw materials consisting of copper , cadmium, chromium, nickel, and other platings valued at approximately $90,000, over 75 percent of which originated in States other than Michigan, although the, Company's purchases were made from jobbing houses located within the State of Michigan . During the. same period the Company sold finished products valued at approximately $350,000, of which about 10 percent was sold to customers outside the State of Michigan. The balance of the. sales represented processing for various automobile manufac- turers located within the State of Michigan. The Company stipulated that it is engaged in commerce within the meaning of the Act. II. THE ORGANIZATIONS INVOLVED Local 155, International Union, United Automobile, Aircraft & Agricultural Implement Workers of America, is a labor organization DETROIT Pa ATING INDUSTRIES , 317 affiliated with the Congress of Industrial Organizations, admitting to membership employees of the Company. Metal Polishers, Buffers, Platers and Plater Helpers International Union, Local No. 1, is a labor organization affiliated with the Ameri- can Federation of Labor, admitting to membership employees of the Company. III. THE QUESTION CONCERNING REPRESENTATION The parties stipulated that the U. A. W. requested recognition of the Company as representative of its employees and that the Com- pany declined recognition until the U. A. W. was certified by the Board as exclusive bargaining representative. On October 14, 1940, the Company and the Polishers entered into a bargaining contract recognizing the Polishers as exclusive repre- sentative of the Company's employees "with the exception of sales- men, office help, foremen, foreladies, watchmen (who do no production work), timekeepers (who serve solely as such), as well as shipping clerks and inspectors with access to records (not to exceed one of each on each shift)."' The contract provides that it shall be effective until April 1, 1943, and continue from year to year thereafter unless notice of an intent to alter, amend or annul it is given by either party 30 days prior to the expiration date. A supplemental agreement of the same date requires that all employees covered by the original contract be mem- bers of the Polishers. A clause in the, original contract provided that the agreement might be reopened for wage adjustments on 60 days' notice after it had been in operation for 90 days. Pursuant to that provision, another supplemental agreement raising wages was made on May 12, 1941.2 ' Contractual relations between the Company and the Polishers date back to Api q 26, 1937, when a contract was signed recognizing the Polishers as representative of all the Company 's employees . This agreement prodded that it as to be effective to August 31, 1937, and continue thereafter until 30 days notice was given by either party of an intent to change it On March 22, 1939, a similar contract was signed effective to March 21, 1940, and continuing thereafter from year to year unless 30 days ' notice was given prior to expiration The latter contract -,A as replaced by the current one 2 The Company is a member of an Association of 17 plating and rust -proofing firms comprising about 60 percent of the job-plating shops in the Gieater Detroit area doing about 80 percent of the business The general terms of contracts entered into by member companies are negotiated by a committee from the Association The companies are not required, however, to enter into a contract, and if they do, are free to recognize any representative of their employees they choose Although the original October 14, 1940, contract states that any change in the terms of the agreement must be ratified by the Association , in actual practice the members are prohibited only from making agreements which provide lower Rage scales than those negotiated by the Association One of the members has a contract with the U. A W.; 5 or 6 have no contracts with any union, the remainder are under contract with the Polishers These agreements are said to be identical with the original 1940 contract in the present case. In some cases there are "supplemental agreements which are not in conflict." 318 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The Polishers contend that this contract, which is for 21/2 years, is a bar to an election. The Company states that its only contention is that it has a valid contract, and that it takes no position as to who shall represent its employees. The U. A. W. contends that the contract is invalid because the U. A. W. at all times had a majority among the employees in the unit which it alleges to be appropriate. According to testimony for the U. A. W., the U. A. W. was engaged on October 14, 1940, in organizing the Company's employees. Whether the Company did or did not have knowledge of the U. A. W.'s interest prior to the execution of the contract is left in doubt by the record. On October 15, 1940, about 11 a. m., the Company received a telegram from the U. A. W. asserting that it represented a majority of the Company's employees. Slack, secretary-treasurer of the Company, admitted having also received telephone calls from U. A. W: officials "in 1940 sometime" and "about the same time" that the Company re- ceived the telegram, but he could not state definitely whether the phone calls preceded or followed the telegram. On the other hand Slack did not expressly deny that the Company had knowledge of the U. A. W. claim at the time it executed the contract.3 In view of these circumstances, and the length of the contract, we are of the opinion that the contract does not constitute a bar to an election at this time. The U. A. W. disclosed to the Regional Director evidence indicating that it presently represents a substantial number of employees in the unit hereinafter found appropriate.4 We therefore find that a question has arisen concerning the repre- sentation 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 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. 3 On October 25, 1940, the U. A. W filed with the Regional Director a petition for certification which it subsequently withdrew. An official of the U. A. W . testified that the petition was withdrawn "at the direction of the Regional Director ... because at that time . . the law was that the contract could only be in force for a year." 4 The U. A. W. submitted to the Regional Director 66 authorization cards , 10 of which were dated in the month of August 1941, and the remainder undated All bore apparently genuine original signatures Forty-seven of the signatures were names of persons on the Company's October 15, 1941, pay roll , which pay roll lists 73 persons;in the alleged appropriate unit. Forty -three of the signatures were the names of persons on the November 15, 1941, pay roll, which lists 67 employees in the alleged appropriate unit as of that date DETROIT PLATING INDUSTRIES V. THE APPROPRIATE UNIT 319 The U. A. W. requests a unit composed of all production and non- production employees, excluding executives, supervisory, clerical, watchmen, and sales employees. The record discloses that this is the same unit as that provided in the Polishers' contract. The Polishers and the Company indicated no disagreement with the unit proposed by the U. A. W. We find that all production and non-production employees of the Company, excluding executives, supervisory, clerical, watchmen, and sales employees constitute a unit appropriate for the purposes of col- lective bargaining and that said unit will insure to the employees of the Company the full benefit of their right to self-organization and to collective bargaining and otherwise will effectuate the policies of the Act. VI. THE DETERMINATION OF REPRESENTATIVES We find that the question which has arisen concerning the repre- sentation of employees of the Company can best be resolved by an election by secret ballot. The parties agreed to the use of a current pay roll. We shall therefore direct that the employees entitled to vote in such election shall be those in the appropriate unit employed by the Company during the pay-roll' period _ immediately preceding the date of this Direction of Election, subject to the limitations and additions set forth in the Direction. Upon 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 Detroit Plating Industries, Detroit, Mich- igan, within the meaning,of Section 9 (c) and Section 2 (6) and (7) of the Act. 2. All production and non-production employees of the Company, excluding executives, supervisory, clerical, watchmen, and sales em- ployees, 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 448105-42-vol. 39-22 320 DECISIONS OF NATIONAL LABOR RELATIONS BOARD DIRECTED that, as part of the investigation authorized by the Board to ascertain representatives for the purposes of collective bargaining with Detroit Plating Industries, Detroit, Michigan, 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 of Election, under the direction and supervision of the Regional Director for the Seventh Region, acting in this matter as agent for the National Labor Relations Board, and subject to Article III, Section 9, of said Rules and Regu- lations, among all production and non-production employees of Detroit Plating Industries, Detroit, Michigan, who were employed during the pay-roll period immediately preceding the date of this Direction of Election, including employees,who did not work during such pay-roll period because they were ill or on vacation or in the active military service or training of the United States, or temporarily laid off, but excluding executives, supervisory, clerical, watchmen, and sales em- ployees, and employees who have since quit or been discharged for cause, to determine whether they desire to be represented by Local 155, International Union', United Automobile, Aircraft & Agricultural Implement Workers of America, C. I. 0., or by Metal Polishers, Buffers, Platers and Plater Helpers International Union, Local No. 1, A. F. L., for the purposes of collective bargaining, or by neither. CHAIItMAN MILLts took no part in the consideration, of the above Decision and Direction of Election.