Central Foundry Co.

In the Matter of CENTRAL FOUNDRY COMPANY and UNITED STEEL- WORKERS OF AMERICA (CIO) Case No. R-4623.Decided March, 11, 1943 Jurisdiction : cast iron pipe and fittings manufacturing industry. Practice and Procedure : petition dismissed when no appropriate unit within its scope; single-employer unit found inappropriate in view of history of collective bargaining upon a multiple-employer basis. Mr. Marion A. Prowell and Mr. Eugene M. Purver, for the Board. Mr. Luther B. Liles, of Anniston, Ala., for the Company. Mr. Noel R. Beddow and Mr. R. E. Farr, of Birmingham, Ala., for the USA. Mr. Joseph A. Padway and Mr. Herbert A. Thatcher, of Washing- ton, D. C., and Mr. Shelly WValdon and Mr. J. D. Royal, of Cincinnati, Ohio, for the-Molders. 'Mr. J:''C.`McGlon; of Washington, D. C., for the Machinists. Mr. Leon Novak, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon petition duly filed by United Steelworkers of America, CIO, herein called the USA, alleging that a question affecting commerce had arisen concerning the representation of employees of Central Foundry Company, Holt, Alabama, herein called' the Company, the National Labor Relations Board provided for an appropriate hearing upon due notice before A. Bruce Hunt, Trial Examiner. Said hearing was held at Tuscaloosa, Alabama, on December 3, 1042. The Board, the Company, the USA, International Molders and Foundry Workers Union of North America, affiliated with 'the American Federation of Labor, herein called the Molders, and International Association of Machinists, Local Lodge No. 455, affiliated with the American Federa- tion of Labor, herein called the Machinists, appeared, participated,, and Were afforded full opportunity to be heard,-t6 examine and cross- examine witnesses, and to introduce evidence bearing on the issues.; At the hearing the parties agreed that certain of the Company's em- 48 N;L. R B, No 2. _ 5 6 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ployees at its Holt plant constituted an appropriate unit and the Board thereafter issued its decision 1 dated January 4, 1943, directing an election by secret ballot at the said plant. Thereafter, the Molders filed its motion to vacate the decision and to reopen the hearing for the purpose of adducing evidence in relation to 'an alleged industry- wide contract between an association -of manufacturers and the Molders. Pursuant to an order of the Board dated January 14, 1943, a further hearing-was thereafter held, after due notice, at Birmingham, Alabama, on February 5, 1943, before James C. Batten, Trial Exam- iner. The Board, the Company, the USA, the Molders, and the Machinists appeared, participated, and 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 further hearing are free from prejudicial error and are hereby, affirmed. On February 15, 1943,.the Molders filed a brief, which the Board has considered. For the.reasons appearing. below,_ the Decision and Direction of Election dated January 4, 1943, is hereby vacated and set aside. Upon the entire record in the case, the Board makes the following : . - FINDINGS OF FACT I. THE BUSINESS OF THE COMPANY Central Foundry Company is engaged in the manufacture of cast- iron pipe and fittings. The Company operates plants at Holt, Besse- mer, and Anniston, Alabama, and at Newark, New Jersey. The Com- pany's.plant at Holt is the only plant involved in this proceeding. The principal raw materials used by the Company at the Holt plant are pig iron, -coke, and sand, nearly all of which are obtained within Alabama. A small amount of miscellaneous supplies and manufac- tured parts are brought to the plant from points outside Alabama. The Company produces at the Holt plant products amounting monthly to approximately 6,500 tons, of which approximately 98 percent is shipped outside Alabama. The Company admits that it is engaged in commerce within the meaning of the National Labor Relations Act. If. THE ORGANIZATIONS INVOLVED United Steelworkers of America is a• labor organization affiliated with the,Congress of Industrial Organizations, admitting to member- ship employees of the Company. International Molders and Foundry Workers Union of North Amer-, ica is a labor organization affiliated with the American Federation of Labor, admitting to membership employees of the Company. 1 46 N L R. B 676. CENTRAL FOUNDRY COMPANY International Association of Machinists, Local Lodge No. 455, is a `labor organization affiliated with the American Federation of Labor, admitting to membership employees of the Company. III. THE ALLEGED QUESIZON OF REPRESENTATION The USA contends that all employees at the Holt plant, excluding foremen, assistant foremen, and higher supervisory employees, office and clerical employees, stock room employees, retail store employees 2 and employees covered by a contract between the Company and the Machinists,' constitute an appropriate unit. The Company and the Molders contend that a unit restricted to employees at the Holt plant is inappropriate and that the appropriate unit should be "Industry-wide," consisting of the foundry employees of all of the foundries repre- sented in an industry-wide contract, including those at the Holt plant of the Company. In support of its contention that the unit proposed by the USA is inappropriate and that the "industry-wide unit" is appropriate, the Molders points to the history of collective bargaining on an industry-wide basis and the contracts resulting from its negotia- tions ,with a committee representing the manufacturers of soil pipe in the South. The soil pipe manufacturing industry in the South is confined almost entirely to the States of Alabama and Tennessee. Prior to 1934 labor conditions in the industry were unstable and wages, hours, and other working conditions were not only unequal between the various found- ries engaged in soil pipe manufacture, but were often unequal for similar work performed in the same foundry. In, 1934, following arrangements previously made between the representatives of 11 or 12 foundries in Alabama and Tennessee, and the duly elected delegates and representatives of the Molders, a conference was held between a committee representing the manufacturers and a committee repre- ssenting the Molders. At this meeting piece- rate wages were discussed and rates agreed upon for approximately 5,000 patterns of pipe and soil pipe fittings. These rates were reduced to writing. Thus, for the first time in the industry in the South, there was achieved a degree of uniformity in wage rates, which served to stabilize and equalize working conditions. Subsequently similar conferences between the committees were held annually and semi-annually resulting, in each instance, in increased wage rates and in reduced working hours. Until December 1940, none of these conferences and agreements ripened into written contracts. On December 19, 1940, for the first l2These employees are iepresented by Retail Clerks Union 3The Machinists' contract covers,,in general, machinists and their apprentices and help- ers , electhcal workers and their apprentices and helpers , and sheet metal workers, pipe fitters,' boilermakers, and their apprentices and helpers ; and blacksmiths, blacksmith ivelders, and their apprentices and helpers. S DECISIONS OF NATIONAL LABOR RELATIONS BOARD time, a written contract was executed. By its terms the contract pro-, •vided for recognition of the Molders as the exclusive representative of all of the employees of the manufacturers 4 and fixed wages and hours for such employees. The term of the contract was 'for the period expiring December 31, 1941, with automatic renewal thereafter unless. a contrary intention was indicated by 30 days' notice. ' The contract was signed by the persons constituting the "Labor Committee" repre- senting the manufacturers, and also by the persons constituting a committee representing the Molders. According to uncontradicted testimony, the committee representing the manufacturers had full authority to bind the manufacturers to written contracts without first obtaining the ratification of the individual employers to the terms agreed upon. Upon proper notice and after renewal of conferences between the same committees, supplemental contracts were similarly signed on June 11, 1941, and December 29, 1941. On December 18, 1942, the contract was renewed in the same manner for an additional period of (i months.5 As with the oral agreements entered into prior to 1940, the written contracts in each instance provided for increased' wage rates for the employees of the manufacturers represented by the industry committees , On March 28, 1942, while the "industry-wide" contract was in force; the Molders made a written demand, upon the Company for a closed- shop contract covering employees at the Holt plant. On April 28; 1942, since the Company had not responded favorably to its request, the Molders filed, a petition with the Board for investigation and certi- fication of representatives of employees at the Holt plant and the fol- lowing day the Company and the Molders entered into an agreement for a cross-check of the Molders membership records and the Com- pany's time records, to determine whether a majority of all the Com- pany's foundry employees wished to' be-represented by the Molders. Following the issuance of a report by,the Regional Director, on the cross-check, certifying that the Molders represented a majority of the employees, the Company entered into a closed-shop contract on May 20, 1942. By specific reference to the existing industry-wide contract, 4 Although the 1940 contract recognizes the Aloldeis as the exclusive representative of all of the employees and similar language has been used in subsequent contracts, the Com- pany and the Molders agreed that employees in categories represented by the Machinists' have not been covered, The USA agreed, similarly, as to the Holt plant of the Company. G This contract is now subject to the approval of the National War Labor' Board O The employees of the various plants of the follow mg manutacturers are covered by the 1940 contract : Alabama Pipe Company, Anniston Foundry Co , Central Foundry Co , Gadsden Iron Works, Inc, Rudisill Foundry Company, and Somerville Iron Works Sub- sequent to 1939 only the Bolt and Anniston plants of the Company were thus represented. On February 5, 1940, the Board, upon petition of the Steel Workers Organizing Cow mittee (predecessor of the USA), for the reasons 'stated in its decision, held that the Bessemer plant of the Company, which was not a soil pipe plant, constituted an appro; prate unit for the pus poses of collective bargaining, 20 N. L. R B 131. CENTRAL FOUNDRY COMPANY 9 however; the contract of'May 20 provided that substantially all other working conditions , wages and hours were to remain the same as agreed upon therein.7 This contract was for a term expiring December 31, . 1942, with automatic renewal thereafter unless a contrary intention was indicated on 30 days' notice by either party to the other. No such notice was given by either party, and the closed-shop contract is still in effect." The USA now contends that neither the industry-wide contract nor the contract of May 20, 1942' between the Company and the Mold- ers, constitutes a bar to this proceeding. It argues that by their entry into a separate closed-shop contract, the Company and the Molders recognized the Holt plant as an appropriate unit for 'the purposes of collective bargaining. We cannot agree with this contention. We are convinced from the record made at the further hearing that the history of collective bargaining has established an appropriate unit consisting of foundry employees of the soil pipe manufacturers repre- sented by the industry committee. This committee has negotiated with the Molders since 1934 on substantial and significant subjects of collective bargaining, and the results of the negotiations have been embodied in"written agreements since 1940. As'stated above, the em- ployer" committee has had full authority to enter into binding agree-- ments on behalf of the individual employers represented by the com- mittee. The bargaining upon this multiple-employer basis has achieved a considerable degree of stability in the industry in the South and has resulted in the adjustment of wages and hours upon a uniform basis in marked contrast to the unsettled conditions existing prior to 1934. Where substantial and significant matters of collective bargain- ing are treated on a multiple -employer basis , the existence of a single unit comprising the employees of such employers is not affected by the fact that certain matters not covered by the association-wide agree-, went are the subject of negotiation in the individual plants. Thus the negotiations between the Company and the Molders which in May 1942 resulted in the execution of a contract providing for a closed shop at the Holt plant, cannot be considered as nullifying the multiple- employer unit. The Company did not revoke the authority of the committee to bind it with respect to those subjects of collective bargain- ing cohered by the industry-wide contract. Indeed, the May 1942 contract specifically confirmed all the provisions of the industry-wide T The May 20 contract made the following changes : the shipping department was excepted from the piovision requiring time and one -halt for work in excess of 8 hours per day; it.also provided that time and one-half, instead of double time, should be paid for Sunday and holiday woik doting the existence of the present emergency. The petition in the instant proceeding was filed by the USA in September i 942. •A pre- vious petition filed with the Board on June 17, 1942, by the USA, was dismissed by the Board on July 10, 1942 , upon its finding that the contract dated May 20, 1942 , entered into between the Company and the Mohleis, constituted a bar to a.determination of repre- sentatives at tnat time, 42 N. L. R B 205. 10 DECISIONS OF- NATIONAL LABOR RELATIONS BOARD, contract relating to wages, hours, and working conditions and was in no respect contrary to the terms of the industry agreement. Nor can we disregard the facts pointing to the appropriateness'of a multiple- employer unit because all parties stipulated, at the first hearing in this case, that the Holt plant constituted an appropriate unit. In view of the history of bargaining upon a multiple-employer basis, we find that a unit restricted to employees of the Company at the Holt plant, as proposed by the USA, is inappropriate for the purposes of collective bargaining. Accordingly, we now find that no question affecting com- merce concerning the representation of employees in an appropriate tout has arisen. We shall therefore vacate our Decision and-Direction of Election of-January 4, 1943, and shall dismiss the petition of the USA. ORDER Upon the basis of the foregoing findings of fact and upon the entire record in the case, the National Labor Relations Board hereby vacates the Decision and Direction of Election dated January 4,, 1943, and orders that the petition for investigation and certification of repre- sentatives of employees of Central Foundry Company, Holt, Alabama, filed by United Steelworkers of America, CIO, be, and it hereby is, dismissed.