Southern Counties Gas Co. of California

In the-Matter Of SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA and PACIFIC GAS WORKERS UNION, INC. (INDEPENDENT) 0 Case No. B-4716.-Decided January 28, 1943 Jurisdiction : natural gas utility industry. Investigation and Certification of Representatives : existence of question: re- fusal to grant recognition without certification of the Board ; election necessary. Unit Appropriate for'Collective Bargaining : all employees in one of eight dis= tricts of the Company, excluding supervisory employees. Messrs. Leroy M. Edwards, T. J. Reynolds, and R. R. Blackburn, of Los Angeles, Calif., for the Company. Mr. Alvin W: Hahn, of Monrovia, Calif:, for the Independent. Messrs. Marshall Shafer and Charles B. Kragh, of Los Angeles, Calif., for the A. F. of L. Atr. Robert Silagi, of counsel. to the Board. DECISION AND ' DIRECTION OF ELECTION STATEMENT OF THE CASE Upon petition duly filed by Pacific Gas Workers Union, Inc., herein ,called the Independent, alleging that a+ question affecting commerce had arisen concerning the representation of employees of Southern Counties Gas Company of California, Los Angeles, California, herein called the Company, the National Labor Relations Board provided for an appropriate hearing upon due notice before Robert C. Moore, Trial Examiner. Said hearing was held at Los Angeles, California, on December 30 and 31, 1942. The Company, the Independent, and Gas Workers Union, Local 23306, A. F. of L., herein called the A. F. of L., appeared, participated, and were afforded full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evi- dence bearing on the issues. • The Company moved to dismiss the petition on the grounds that it was not engaged in interstate commerce within the meaning of the National Labor Relations Act and that the unit petitioned for was not appropriate. The Trial Examiner re- served ruling on these motions. For reasons appearing in Sections I and IV, infra, the motions are hereby denied. The Trial Examiner's 47 N. L. R. B., No. 10. 64 1 SOt7THERN COUNTIES GAS COMPANY OF CALIFORNIA 65 ruliligs 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 1. THE BUSINESS OF THE COMPANY The Company is a public utility and is principally engaged in the business of purchasing, transporting, selling, and, distributing natural gas for light, heat, and power purposes in the southern counties of California. As an incident to its principal business, the Company sells gas appliances at retail. All of the natural-gas handled by the Company is produced within the State of California. About 35 percent in volume of the gas sold by the Company is sold to industrial consumers, some of whom are engaged in interstate commerce. Two of the firms supplied are among the largest con- terns of their type on the Pacific Coast and produce products for the armed forces of the United States. • In the period from Novem- ber 1, 1941, to November 30, 1942, the Company, purchased from sources outside the State of California pipes, meters, regulators, pumps,, compressors, valves, tools, and similar materials valued at $36,412.22. During that period its purchases of natural gas amounted to $4,048,464, and the total sales of gas amounted to $12,050,864.08. On these facts we find, contrary to the contention of the Company, that its operations constitute commerce within the meaning of the Ac.' II. THE ORGANIZATIONS INVOLVED Pacific Gas Workers Union, Inc., is an unaffiliated labor organiza- tion admitting to membership employees of the Company. Gas Workers Union, Local 23306, affiliated with the American Federation of Labor, is a labor organization admitting to member- ship employees of the Company. III. THE QUESTION CONCERNING REPRESENTATION Each of the two unions requested recognition as the exclusive bargaining agent of certain employees in the Company's Sin Gabriel Valley District. The Company declined to recognize either of them prior to certification by the Board. 'In several cases involving the Southern California Gas Company, which also is one of the operating companies owned by the common holding company, Pacific Lighting Corporation, we found in substance, that that company was engaged in commerce within the meaning of the Act. See Matter of Southern California Gas Company and Paciflo Jas Workrrs Union, Independent, 35 N. L R. B. 263; Matter of Southern California Gas Company and Utility Workers Organizing Committee, Locals 1^,0 and 193, 0. I. 0, 41 N. L. R. B. 668. 513024-43-vol 47-5 66' DECISIONS OF NATIONAL LABOR RELATIONS BOARD A statement of a Board agent, introduced into evidence at the hearing, indicates that both unions represent a substantial number of employees in the unit hereinafter found appropriate.2 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 Both unions seek a unit comprised of all employees of the Company in the San Gabriel Valley District, excluding supervisory employees with the right to hire and discharge. The Company contends for a broad unit embracing all employees within its system, but excluding supervisory employees. The record shows that the Company divides its operations into, 8 geographical districts. It employs a total -of about 1,000 employees, 118 of whom work in the San Gabriel Valley District. The main office and personnel departments are located in Los Angeles where, in the past, all negotiations for collective bargain- ing contracts have taken place. Final action in the hiring and dis- charging of employees is centered in the personnel department. All districts have employees in similar classifications and the wage scale is uniform throughout the Company's system. The organizational structure of the 'Company is similar to the divisional plan of the Southern California Gas Company. The testimony discloses that organizational efforts by both wlions have been directed along district lines and that separate locals are established in each district as unionization progresses. There is little or no interchange of employees among the districts. The Company' has in the past signed a collective bargaining contract with the A. F. of L., covering a single district, namely, the San Pedro Harbor District. It also.had a contract with the Independent, which expired in July 1942, covering certain employees in four of the Company's eight districts. In the cases involving the Southern California Gas Company 3 we rejected the contention for a company-wide unit, in view of the extent of organization of its employees. We are of the - opinion that a bargaining unit confined to employees of the San Gabriel Valley District is appropriate in the present case. Our finding in. this respect, however, does not preclude a later determination that a system- wide unit is appropriate. 2 A Field Examiner of the Board reported that the Independent submitted 24 authoriza- tion cards dated November 1942, all of which bore apparently genuine' original signatures Twenty-three of the cards submitted bore names listed - on the Company's pay roll of December 2, 1942, which contained 92 names within the unit alleged to be appropriate. The A F. of L submitted 38 authorization and application cards dated as follows : 20 in October 1942; 14 in November 1942 ; and 4 'in December 1942 Thirty-five cards bore apparently genuine of iginal signatures and all but 1 name appeared on the Company's pay roll of December 2, 1942. 2 Supra, footnote 1. ' SOUTHERN COUNTIES GAS COMPANY OF CALIFORNIA 67 Both unions request the inclusion of 13 supervisory employees classi- fied as credit supervisor, maintenance foremen, construction foremen, chief adjustor, plant chief clerk, storekeeper, district office chief clerk, branch office chief clerks, garage foreman, and district engineers, con- tending that they are merely working foremen who act as intermedi- aries between the executives and the workmen. The Company adopts the position that the employees in question are supervisors whose in- terests are identified with those of the Company, and that they should therefore be excluded. While these employees are eligible for member- ship in either union, the record is clear that they have the power to recommend hiring and discharging and that they prepare annual effi- ciency ratings on the men under their control. They make work assign- ments, receive grievances, and are the ones to whom notification of unexpected absences are given. We find that their interests are more closely related to those of the Company than to those of the workmen and accordingly shall exclude the supervisors from the unit. We find that all employees of the Company in the San Gabriel Valley District, but, excluding supervisory employees, constitute a unit appropriate for the purposes of collectivd bargaining within the mean- ing of Section 9 (b) of the Act. V. TIIE DETERMINATION OF REPRESENTATIVES We shall direct that the question concerning representation which has arisen be'resolved by an election by secret ballot among the em- ployees 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 Rela- tions Act, and pursuant to Article III, Section 9, of National Labor Relations 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 Southern Counties Gas Company of California, Los Angeles, California, 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, under the direc- tion and supervision of the Regional Director for the Twenty-first Region, acting in this matter as agent for the National Labor Rela- tions 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 im- 68 DECISIONS ' OF NATIONAL LABOR RELATIONS BOARD mediately 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 those employees who have since quit or been discharged for cause, to determine whether they desire to be repre- sented by Pacific Gas Workers Union, Inc., Local 12,4 or by Gas `York- ers Union, Local 23306, affiliated with the American Federation of Labor, for the ' purposes of, collective bargainiiig, or by -neither. 'At the hearing , the Independent requested that it he so designated on the ballot.