Lane Cotton Mills Co.

In the Matter of LANE CO TTON MILLS COMPANY and TEXTILE WORKERS ORGANIZING COMMITTEE Case No. B-222.-Decided August 04,1937 Cotton Textile Industry-Investagatwon of Representatives: controversy con- cerning representation of employees : refusal by employer to recognize union as exclusive representative except upon investigation of each membership card and personal examination of each member ; resentment and dissatisfaction among employees-Unit, Appropriate for Collective Bargaining : all employees in plant except clerical and supervisory ; no controversy as to-Election Ordered-Certification of Representatives. Mr. Samuel Lang for the Board., Mr. S. Odenheimer, of New Orleans, La., for the Company. Mr. R. R. Tisdale, of New Orleans, La., for the T. W. O. C. Mr. Joseph Friedman, of counsel to the Board. DECISION STATEMENT OF THE CASE On July 2, 1937, the Textile Workers Organizing Committee, herein called the T. W. O. C., affiliated with the Committee for Indus' trial Organization, filed with the Regional Director for the Fifteenth Region (New Orleans, Louisiana) a petition alleging that a question affecting commerce had arisen concerning the representation of the employees of the Lane Cotton Mills Company, New Orleans, Louisi- ana, herein called the Company, and requesting as investigation and certification of representatives pursuant to Section 9 (c) of the Na- tional Labor Relations Act, 49 Stat. 449, herein called the Act. On July 12, 1937, the Board, acting pursuant to Section 9 (c) of the Act and Article III, Section'3 of National Labor Relations Board Rules and Regulations-Series 1, as amended, authorized the Regional Di- rector to conduct an investigation and'to provide for an appropriate hearing; and the Board further ordered, pursuant to Article III, Sec- tion 10 (c) (2) and Article II, Section 37 (b) of the Rules and Regu- lations-Series 1, as amended, that the case be consolidated for the purpose of hearing with the case arising on a complaint against the Company issued by the Regional Director after charges had been filed by the T. W. O. C. simultaneously *dth the petition herein. 369 370 NATIONAL LABOR RELATIONS BOARD Pursuant to a notice of hearing duly issued and served by the Regional Director upon the Company and the T. W. O. C., a hearing was held in New Orleans, Louisiana, on July 20, 21, 22, and 23, 1937, before D. Lacy McBryde, the Trial Examiner duly designated by the Board. At the hearing the Board was represented by coun- sel; the Company was represented by its president; and the T. W. O. C. was represented by its regional representative. All par- ticipated in the hearing. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evidence bearing on the issues was afforded all the parties. Although the two cases were consolidated for hearing, separate decisions will be rendered. The present decision concerns only the representation proceeding. The Board has reviewed the rulings of the Trial Examiner on the motions and objections of the Company 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 : FINDINas OF FACT 1. THE BUSINESS OF THE COMPANY Lane Cotton Mills Company was incorporated in Louisiana in 1910, and has its plant and principal office in New Orleans, Louisi- ana. It is engaged in the manufacture of cotton cloth, cotton denim, twine, and rope. According to its pay-roll list for the week ending July 4, 1937, the number of its employees totals 1,589. Its annual pay roll is approximately $1,000,000. The Company purchases annually some 30,000 bales of cotton, of an approximate value of $2,000,000. It also purchases other materials, such as dyes, textile machinery, rope, and bags. Ninety- five per cent of its cotton is purchased from cotton merchants situ- ated in New Orleans. The greater portion of the cotton is delivered in motor trucks to the Company's plant from warehouses and rail- way terminals, while at least ten per cent is delivered to its plant directly by railway transportation. The cotton which it receives from warehouses is delivered in the first instance to the warehouses by boat and by rail. The Company's sales of its finished products in 1936 aggregated approximately $4,500,000 in value. Ninety-five per cent of its sales are made directly to customers located outside of the State of Louisiana. Shipments to points outside of the State of Louisiana are made by motor, rail, and boat transportation. In the course of the hearing the Company admitted that it was engaged in interstate commerce. DECISIONS AND ORDERS II. THE UNION 371 The T. W. O. C. is a labor organization affiliated with the Com- mittee for Industrial Organization. It admits to membership all employees of the Company, except clerical employees, foremen,, assistant foremen, and any employees who have the power to hire, discharge, or discipline. III. THE APPROPRIATE UNIT The T. W. O. C. maintains that all employees in the Company's plant, except clerical employees, foremen, assistant foremen, and other employees having the authority to hire, discharge, or dis- cipline, constitute a unit appropriate for the purposes of collective bargaining. Such a unit would embrace nearly all of the employees of the Company, as the number of clerical and supervisory em- ployees is relatively small. The Company raises no objection to the bargaining unit claimed by the T. W. O. C. and has signified its will- ingness to bargain collectively with the T. W. O. C. as the sole bar- gaining agent, if it is determined by an election that the T. W. O. C. is the representative of the majority of the employees in the unit. The evidence discloses that certain employees termed "second hands" serve in a capacity analogous to that of assistant foremen, with authority to give orders and to recommend the hiring and dis- missal of employees. In accordance with familiar rules, they should not be included in the bargaining unit. In order to insure to the Company's employees the full benefit of their right to self-organization and collective bargaining, and otherwise to effectuate the policies of the Act, we find that all of the employees in the plant, exclusive of clerical employees, foremen, assistant foremen, second hands, and all other employees having authority to hire, discharge, or discipline, constitute a unit appro- priate for the purposes of collective bargaining. IV. QUESTION CONCERNING REPRESENTATION In the early part of May 1937, the T. W. O. C. began a campaign for membership among the employees of the Company. By the latter part of June 1937, it claimed a membership of 1,300 of the employees of the Company. On July 1, 1937, a conference was held between the president of the Company and the representative of the T. W. O. C. concerning the recognition of the T. W. 0. C. as the representative of the employees of the Company. The president of the Company agreed to recognize the T. W. O. C. as the representa- tive of its employees and to bargain collectively with the T. W. O. C., if it proved that it represented a majority of the employees in the 372 NATIONAL LABOR RELATIONS BOARD plant. The president of the Company insisted that proof be made by permitting him to inspect each and every membership card and in the presence of the representative of the T. W. O. C. to talk individually with each employee who was a member of the T. W. O. C. The representative of the T. W. O. C. agreed to the arrangement subject to a vote of its members. On July 3, 1937, the members of the T. W. O. C. voted against submitting themselves to individual inter- rogation by the president of the Company. Thereupon, the Com- pany refused to recognize the T. W. O. C. as the representative of its employees for the purposes of collective bargaining. The Com- pany's present refusal to recognize the T. W. O. C. as sole bargain- ing agent has created resentment and dissatisfaction among the em- ployees who are members of the T. W. O. C. We find that a question has arisen concerning the representation of the employees of the Company. This question can best be settled by the taking of a secret ballot among the employees on the pay roll for the week ending July 3, 1937, when the question arose. V. THE EFFECT OF TILE QUESTION OF REPRESENTATION ON 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 relation 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. CONCLUSIONS OF LAW Upon the basis of the above findings of fact, the Board makes the following conclusions of law: 1. All the employees of the Lane Cotton Mills Company, except clerical employees, foremen, assistant foremen, second hands, and all other employees having authority to hire, discharge, or discipline, constitute a -unit appropriate for the purposes of collective bargain- ing, within the meaning of Section 9 (b) of the National Labor Relations Act. 2. A question affecting commerce has arisen concerning the repre- sentation,of employees in the aforesaid unit, within the meaning of Section 9 (c) and Section 2, subdivisions (6) and (7) of the National Labor Relations 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 Re- DECISIONS AND ORDERS 373 lations Act, and pursuant to Article III, Section 8 of National Labor Relations Board Rules and Regulations-Series 1, as amended, it is hereby DIRECTED that, as part of the investigation authorized by the Board to ascertain representatives for collective bargaining with the Lane Cotton Mills Company, an election by secret ballot shall be conducted within 15 days from the date of this Direction, under the direction and supervision of the Regional Director for the Fifteenth Region, acting in this matter as agent for the National Labor Rela- tions Board, and subject to Article III, Section 9 of said Rules and Regulations, among all the employees of the Lane Cotton Mills Company on its pay roll during the work week ending July 3, 1937, except clerical employees, foremen, assistant foremen, second hands, and all other employees having authority to hire, discharge, or discipline, and those who have since quit or have been discharged for cause, to determine whether they desire to be represented by the Textile Workers Organizing Committee for the purposes of collec- tive bargaining. MR. EDWIN S. SMITH took no part in the consideration of the above Decision and Direction of Election. [SAME TITLE] CERTIFICATION OF REPRESENTATIVES September 17, 1937 On July 2, 1937, the Textile Workers Organizing Committee, herein called the T. W. O. C., affiliated with the Committee for Industrial Organization, filed with the Regional Director for the Fifteenth Region (New Orleans, Louisiana) a petition alleging that a question affecting commerce had arisen concerning the representa- tion of the employees of the Lane Cotton Mills Company, New Orleans, Louisiana, herein called the Company, and requesting an investigation and certification of representatives pursuant to Section 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. Pursuant to notice duly served upon the Company and the T. W. O. C., a hearing was held in New Orleans, Louisiana, on July 20, 21, 22, and 23, 1937, before D. Lacy McBride, the Trial Examiner duly designated by the National Labor Relations Board, herein called the Board. On August 24, 1937, the Board issued a Decision and Direction of Election. The Direction of Election provided that an election by secret ballot be held among all the employees of the Company on its pay roll during the work week ending July 3, 1937, 49446-38-vol. uc-25 374 NATIONAL LABOR RELATIONS BOARD except clerical employees, foremen, assistant foremen, second hands, and all other employees having authority to hire, discharge, or discipline, and those who have since quit or have been discharged for cause, to determine whether they desire to be represented by the T. W. O. C. for the purposes of collective bargaining. Pursuant to the Direction, balloting was conducted on September 7, 1937. Full opportunity was accorded to all the parties to this investigation to participate in the conduct of the secret ballot and to make challenges. On the same day, September 7, 1937, the Regional Director cer- tified that a count of the ballots showed : Total Eligible Voters----------------------------------------- 1,500 Total Ballots Cast-------------------------------------------- 1,433 Total Ballots Protested--------------------------------------- (Not now employed or in supervisory capacity) 53 Total Protests Allowed--------------------------------------- 53 Ballots Voided by Agreement---------------------------------- (Not employed on date of eligibility) 67 Total Spoiled Ballots----------------------------------------- 6 Total Ballots Officially Counted------------------------------- 1,307 Total Vote for Textile Workers Organizing Committee---------- 942 Total Vote Opposing Textile Workers Organizing Committee---- 365 The agent of the Board who conducted the ballot caused to be served upon the parties to the proceeding his Intermediate Report on the conduct of the ballot. No objection to the ballot or the In- termediate Report was filed, and the Regional Director forwarded the Intermediate Report to the Board in Washington, D. C. Now THEREFORE, 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 Na- tional Labor Relations Board Rules and Regulations-Series 1, as amended, IT IS HEREBY CERTIFIED that the Textile Workers Organizing Com- mittee has been selected by a majority of all the employees of the Lane Cotton Mills Company, except clerical employees, foremen, assistant foremen, second hands, and all other employees having au- thority to hire, discharge, or discipline, as their representative for the purposes of collective bargaining, and that pursuant to Section 9 (a) of the National Labor Relations Act, the Textile Workers Organizing Committee is the exclusive representative of all the em- ployees of the Lane Cotton Mills Company, except clerical employ- ees, foremen, assistant foremen, second hands, and all other em- ployees having authority to hire, discharge, or discipline, for the purposes of collective bargaining in regard to rates of pay, wages, hours of employment, and other conditions of employment.