Manhattan Shirt Co.

In the Matter Of MANHATTAN SHIRT COMPANY AND ISABrL D. SHERILL, BETTY ROSE DILLON, AND SYBIL L. DILLON, GUARDIAN FOR JAMES McDuFF DILLON D/B/A LEXINGTON SHIRT COMPANY, EMPLOYER and AMALGAMATED CLOTHING WORKERS OF AMERICA, CIO, PETITIONER Case No. 3l#-RC-136.Decided June 9, 19!9 DECISION AND DIRECTION OF ELECTION Upon a petition duly filed, a hearing was held before Harry G. Carlson, hearing officer of the National Labor Relations Board. The hearing officer's rulings made at the hearing are free from prejudicial error and are hereby affirmed. Pursuant to the provisions of Section 3 (b) of the National Labor Relations Act, the Board has delegated its powers in connection with this case to a three-member panel [Chairman Herzog and Members Houston and Reynolds]. Upon the entire record in this case, the Board finds : 1. The Manhattan Shirt Company, herein called Manhattan, is a New York corporation engaged in the manufacture of shirts, pajamas, underwear, and neckwear in approximately eight plants located in various States of the United States. The only plant concerned in this proceeding is located at Lexington, North Carolina. During the year 1948 Manhattan produced for use at this plant, piece goods, trimmings, bindings, buttons, and other materials valued at more than $100,000. Substantially all this material was shipped to Lexington from outside the State of North Carolina. During the same period, the Lexington plant produced finished garments valued at more than $100,000, nearly all of which were shipped to Manhattan's warehouses located outside North Carolina. Manhattan concedes that it is engaged in commerce within the meaning of the Act. The Lexington Shirt Company, herein called Lexington, is a limited partnership formed under the laws of North Carolina, and is the suc- cessor to Lexington Shirt Corporation. Manhattan and the Lexington Shirt Corporation entered into an agreement whereby the latter agreed to manufacture dress shirts for Manhattan and to employ labor for 84 N L. R. B., No. 14. 100 MANHATTAN SHIRT COMPANY 101 that purpose. This agreement is still in effect and governs the rela- tionship between Lexington and Manhattan. The physical properties. owned by Lexington are by this agreement leased to Manhattan for a period of years. Materials, to be made into shirts according to Man- hattan's specifications, are sent by Manhattan to Lexington, title to the materials and finished products remaining always with Manhat- tan. Lexington pays the cost of maintenance of the building and in- surance thereon and on such machinery as it owns. All other costs. connected with the entire operation are paid for or reimbursed to Lexington by Manhattan. The entire operation is under the super- vision of a representative of Manhattan, who is in complete charge of production. Although the contract between Manhattan and Lexing- ton's predecessor provides that all labor shall be employed by Lexing- ton, Manhattan's representative in his uncontrolled judgment and discretion may discharge from the company employ any employee that he wishes and may reject any employee hired by the Lexington Company. He has complete control over all aspects of employer- employee relations of the plant. In view of the contractual relationship between Manhattan and Lexington and the entire record in this case, we find that, as to the employees at the Lexington, North Carolina, plant, Manhattan and Lexington are joint Employers within the meaning of Section 2 (2) of the Act.' We find that both Employers are engaged in commerce within the meaning of the National Labor Relations Act. 2. The labor organization named below claims to represent em- ployees of the Employer. 3. A question affecting commerce exists concerning the representa- tion of employees of the Employer, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the Act. 4. The following employees of the Employer constitute a unit ap- propriate for the purposes of collective bargaining within the mean- ing of Section 9 (b) of the Act: All employees at the Lexington, North Carolina, plant, excluding executives, administrative employees, foremen, foreladies, assistant foremen, assistant foreladies, professional employees, quality inspec- tors, timekeepers, office and clerical workers, cashiers, and all super- visors as defined in the Act. ' See N L R. B V. Long Lake Lumber Company and F. D. Robinson , 138 F. ( 2d) 363 (C A 9). 853396-50-vol 84-8 102 DECISIONS OF NATIONAL LABOR RELATIONS BOARD DIRECTION OF ELECTION As part of the investigation to ascertain representatives for the purposes of collective bargaining with the Employer, an election by secret ballot shall be conducted as early as possible, but not later than 30 days from the date of this Direction, under the direction and super- vision of the Regional Director for the Region in which this case was heard, and subject to Sections 203.61 and 203.62 of National Labor Relations Board Rules and Regulations-Series 5, as amended, among the employees in the unit found appropriate in paragraph numbered 4, above, who were employed during the pay-roll period immediately preceding the date of this Direction of Election, includ- ing employees who did not work during said pay-roll period because they were ill or on vacation or temporarily laid off, but excluding those employees who have since quit or been discharged for cause and have not been rehired or reinstated prior to the date of the elec- tion, and also excluding employees on strike who are not entitled to reinstatement, to determine whether or not they desire to be repre- sented, for purposes of collective bargaining, by Amalgamated Cloth- ing Workers of America, CIO.