Minimax Stores

In the Matter Of MINIMAx STORES and RETAIL CLERKS INTERNATIONAL ASSOCIATION, A. F. L. Case No. 39-CA-43.-Decided October 4,1950 DECISION AND ORDER REMANDING CASE TO THE TRIAL EXAMINER On February 27, 1950, Trial Examiner Albert P. Wheatley issued an order granting Respondent's motion to dismiss the complaint herein upon jurisdictional grounds. The Trial Examiner concluded that while the operations of the Respondent were substantial and not wholly unrelated to interstate commerce, they were, nevertheless, essentially local in character and that it would not effectuate the poli- cies of the Act to assert jurisdiction in this case. Thereafter, the General Counsel filed his petition for review of the Trial Examiner's order alleging that the Trial Examiner's conclusions were erroneous, that his action in dismissing the complaint herein was in error, and that the Trial Examiner's order should be reversed and the case re- manded to him for a finding on the merits of the unfair labor practices alleged in the complaint. The Board has considered the petition of the General Counsel, the briefs of the parties, and the entire record in the case, and for the reasons appearing below the Board has decided to reverse the action of the Trial Examiner in dismissing the complaint and to assert juris- diction herein. Respondent's Operations The record discloses that the Respondent is a Texas corporation, maintaining its principal office and place of business in the city of Houston, Harris County, State of Texas. It is engaged in the retail grocery business and operates 11 stores all within the geographical limits of Harris County. In the course of its operations, Respond- ent purchases for resale at its retail stores such items as meats, grocery products, coffee makers, beer, wine, notions, irons, toasters, mixmas- ters, cosmetics, radios, glassware, kitchen ware and utensils, and other similar products, securing most of its standard brand products from 91 NLRB No. 114. 644 MINIMAX STORES 645 the Schumacher Company,' a concern engaged in the wholesale grocery trade. During the year 1949, Respondent's total purchases amounted to $6,027,620.86. During the same period its sales, all made locally, amounted to $7,306,749.12. Of the total value of its pur- chases, $866,272.11 came from the Houston branches of a number of national concerns,2 and $3,022,500.50 came from the Houston ware- house of the Schumacher Company. Of the merchandise sold by the national concerns to the Respondent, merchandise of the value of $467,643.66 originated outside the State of Texas, and was shipped by such national concerns directly to their Houston branches. Simi- larly, of the merchandise sold by the Schumacher Company to the Respondent, merchandise valued at $2,325,750.35 originated outside the State of Texas, and was shipped directly to the Houston ware- house of the Schumacher Company. - Conclusions The General Counsel contends that the Respondent is engaged in interstate commerce within the meaning of the Act and that it would effectuate the policies of the Act for the Board to assert jurisdiction herein because, among other reasons,3 the major portion of the Re- spondent's substantial purchases originate outside the State of Texas. In general, we agree with the foregoing contention of the General Counsel. The Board has recently decided' that in instances where the operations of an employer, in circumstances similar to those of the instant Respondent, affect the flow of commerce only by way of an indirect inflow of purchases originating outside the State, such operations shall not be deemed to affect interstate commerce suffi- ciently to warrant the Board asserting jurisdiction unless the value of such purchases amounts to $1,000,000. Under the circumstances of this case, we find that the Respondent is engaged in commerce within the meaning of the Act, and, as the Respondent's indirect purchases from outside the State of Texas amount to more than $1,000,000, to wit, the sum of $2,793,394.01, that it will effectuate the 1 The Schumacher Company is a Texas corporation maintaining its principal office and general warehouse in Houston, Texas, and having eight additional warehouses in other parts of the State of Texas. During the year 1949, total purchases of the Schumacher Company amounted to approximately $25,970,000, of which 70 percent represented pur- chases delivered directly to its warehouses from sources outside the State. During the same period its gross sales, all local , amounted to approximately $29,580,400. 'Representative of such concerns are Rath Packing Company, Armour & Company, Southwestern Drug Corporation, Kraft Foods, and National Biscuit Company. 3 The General Counsel contends that the Respondent is engaged in interstate commerce not only by virtue of its own operations in interstate commerce but because of Integration with the operations of the Schumacher Company, based on common stock ownership, interlocking directorates , and certain coordinated activities of the two concerns. In view of our decision herein, we find it unnecessary to pass upon these additional contentions. * Dorn's House of Miracles, Inc., 91 NLRB 632. 646 DECISIONS OF NATIONAL LABOR RELATIONS BOARD policies of the Act to assert jurisdiction herein. We shall, therefore, remand the proceeding to the Trial Examiner for a resolution of the other issues raised by the pleadings. ORDER IT IS HEREBY ORDERED that the order of the Trial Examiner dis- missing the complaint herein be, and the same is, hereby reversed, and IT Is FURTHER ORDERED that this proceeding be, and it hereby is, re- manded to the Trial Examiner for the purpose of preparing and issu- ing an Intermediate Report setting forth the findings of fact, con- clusions of law, and recommendations with respect to the unfair labor practices alleged in the complaint herein. MEMBER MURDOCK took no part in the consideration of the above Decision and Order Remanding Case to the Trial Examiner.