006 NLRB 654
The Falk Corp.
In the Matter of THE FALK CORPORATION and AMALGAMATED ASSO-
CIATION OF IRON, STEEL AND TIN WORKERS OF NORTH AMERICA,
LODGE 1528
Cases Nos. R-278 and C-293.-Decided April 18, 1938
Machinery
Manufacturing
Industry-Interference,
Restraint or Coercion:
expressed opposition to labor organization-Cons.pangt-Dominated Union : domina-
tion and interference with formation and administration ;
support of-Dls-
crimanation : discharge : settlement effected ; charges of , dismissed-Investiga-
tion of Representatives : controversy concerning representation of employees :
controversy concerning appropriate unit-Unit Appropriate for Collective. Bar-
gaining: where other considerations determinative of appropriate unit are evenly
balanced , decisive factor is the desire and choice of employees involved ; deter-
mination of, dependent upon election results-Collective Bargaining : refusal to
recognize representatives : charges of, dismissed-Election Ordered : to be held
upon further order of Board, after compliance with this order.
Mr. Robert R. Rissman and Mr. S. G. Lippman, for the Board.
Lam from, Tighe, Engelhard d Peck, by Mr. Leon B. Lain f rona
and Mr. A. J. Engelhard, of Milwaukee, Wis., for the respondent.
Mr. A. G. Goldberg, of Milwaukee, Wis., for the Operating En-
gineers.
Alexander, Burke d Clark, by Mr. Giles F. Clark, of Milwaukee,
Wis., for the Independent.
Mr. Daniel J. Harrington, of counsel to the Board.
DECISION
ORDER
APi D
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On May 24, 1937, the Steel Workers Organizing Committee, herein
called the S. W. O. C., filed a charge, in behalf of the Amalgamated
Association of Iron, Steel and Tin Workers of North America, Lodge
1528, herein called the Amalgamated, with the Regional Director for
the Twelfth Region (Milwaukee, Wisconsin) and on August 2, 1937,
filed an amended charge alleging that The Falk Corporation, Mil-
waukee, Wisconsin, herein called the respondent, had engaged in and
was engaging in unfair labor practices affecting commerce within the
654
DECISIONS AND ORDERS
655
meaning of the National Labor Relations Act, 49 Stat. 449, herein
called the Act.
On August 4, 1937, the National Labor Relations
Board, herein called the Board, by the Regional Director for the
Twelfth Region, issued its complaint against the respondent, alleg-
ing that the respondent had engaged in and was engaging in unfair
labor practices affecting commerce, within the meaning of Section 8
(1), (2), (3), and (5) and Section 2 (6) and (7) of the Act. The
complaint and accompanying notice of hearing were duly served
upon the parties.
In respect to the unfair labor practices the complaint alleged in
substance (1) that all the employees of the respondent at its Mil-
waukee plant, except supervisory employees, draftsmen, employees in
the general office, and employees of the pay-roll department, consti-
tuted an appropriate unit for the purpose of collective bargaining;
(2) that a majority of the employees in such unit had designated the
Amalgamated as its representative for the purpose of collective bar-
gaining with the respondent; (3) that the respondent at various times,
when requested by the Amalgamated, refused to bargain with the
Amalgamated as the exclusive bargaining agency for all the employees
in such unit; (4) that the respondent, on or about December 31, 1936.
discharged Anton Kirsch for engaging in concerted activities with
other employees for their mutual aid and protection; (5) that the
respondent refuses to reinstate Anton Kinch for the same reason ;
(6) that the respondent dominated, fostered, encouraged, and inter-
fered with the formation, enlistment of membership, and administra-
tion of a labor organization known as the Independent Union of
Falk Employees and has contributed and is now contributing financial
and other support thereto; (7) that the respondent, by the foregoing
acts,'had- interfered with, restraine'd',' coerced, and is inteifering with,
restraining, and coercing its employees in the exercise of their rights
guaranteed by Section 7 of the Act.
S. W. O. C. filed a petition, dated August 2, 1937, requesting an
investigation and certification of representatives pursuant to Sec-
tion 9 (c) of the Act.
On August 6, 1937, the Board, acting pursuant
to Article III, Section 3, of National Labor Relations Board Rules
and Regulations-Series 1, as amended, ordered an investigation and
authorized the Regional Director to conduct it and to provide for an
appropriate hearing upon due notice.
On August 12, 1937, the respondent filed an answer to the cor1-
plaint, in which it denied that it had engaged in the alleged unfair
labor practices and requested that the complaint be dismissed, but
admitted certain allegations as to the nature of its business.
The Independent Union of Falk-Employees, herein called the Inde-
pendent, filed a petition to intervene on August 13, 1937, and on the
same date, International Union of Operating Engineers, Local No.
656
NATIONAL LABOR RELATIONS BOARD
311, herein called the Operating Engineers, also filed a petition to inter-
vene, charging therein additional violations of Section 8 (1), (2), (3),
and (5) of the Act by the respondent.
On August 14, 1937, the Board, acting pursuant to Article III,
Section 10 (c) (2), of the Rules and Regulations-Series 1, as amended,
ordered that the two cases be consolidated for the purpose of hearing
and that James C. Batten act as Trial Examiner.
Pursuant to notice, a hearing was held in Milwaukee, Wisconsin, on
August 16, 17, 18, 19, 20, 23, 24, and 25, 1937, before James C. Batten,
the Trial Examiner duly designated by the Board.
At the hearing
both the Independent and the Operating Engineers orally renewed
their petitions for intervention and both petitions were granted.
The
Operating Engineers, however, was required by the Trial Examiner
to serve on respondent's counsel an amended petition containing a
more specific statement of the charges included in its original petition
to intervene, and the respondent filed an answer thereto.
At the con-
clusion of the hearing the respondent moved that the amended petition
for intervention, filed by the Operating Engineers, be dismissed.
The
motion was denied by the Trial Examiner.
• The Trial Examiner erred in allowing the Operating Engineers to
intervene on the basis of the additional charges included in its peti-
tion and amended petition and in denying the respondent's motion to
dismiss the amended petition.
Those rulings are hereby reversed.
Since the Board's complaint was not amended to include the additional
charges, they were not in issue.
Evidence, which was introduced
under the charges in the petition as amended, is admissible only in so
far as it is within the allegations of the complaint and we have-con-
sidered such evidence only to that extent.
The Board, the respondent, the Operating Engineers, and the Inde-
pendent were represented by counsel and participated in the hearing.
Full opportunity to be heard, to examine and cross-examine wit-
nesses, and to introduce evidence bearing on the issues was afforded
all parties.
At the conclusion, of the Board's case, counsel for the Board
moved to amend the complaint to conform with the proof thus far
adduced, which motion was granted.
Counsel for the respondent
moved that both the petition and the complaint be dismissed and that
each charge of the complaint be dismissed.
The Trial Examiner
denied the motions for dismissal of the petition and of the complaint
and reserved ruling on the motions to dismiss the separate charges
of the complaint.
At 'the conclusion of the hearing, the respondent
renewed its motion to dismiss the petition and complaint.
The Inde-
pendent moved that the portion of the complaint -alleging that the
respondent dominated, fostered, encouraged, and interfered with the
formation, enlistment of membership, and administration of -the Inde-
DECISIONS AND ORDERS
657
pendent and contributed financial and other support to' it be dis-
missed.
These motions were denied.
Counsel for the Board moved
that the complaint be amended to conform with the proof.
The mo-
tion was granted, but limited in its application to the correction of
minor variances between the proof and the allegations of the
complaint.
The Board has reviewed the rulings of the Trial Examiner' on
motions and objections to the admission of evidence and finds that
no prejudicial errors were committed.
The rulings are hereby af-
firmed, except the rulings on the Operating Engineers' petition for
intervention as hereinabove stated.
In his Intermediate Report, filed November 2, 1937, the Trial Ex-
aminer found that the respondent had engaged in unfair labor
practices affecting commerce, within the meaning of Section 8 (1),
(2), and (3)' and Section 2 (6) and (7) of the Act, and further
found that the respondent had not committed unfair labor practices
within the meaning of Section 8 (5) of the Act.
Exceptions to the
Intermediate Report were filed by the respondent on November 27,
1937, and by the Independent on November 29, 1937.
On February
25, 1938, the respondent and the Independent presented oral argu-
ments before the Board in support of their exceptions, while the
Operating Engineers presented arguments in support of the findings
of the Trial Examiner.
Thereafter, briefs were submitted by the
respondent and by the Independent, which have been considered by
the Board.
The Board has fully considered the exceptions to the
findings of the Intermediate Report and .finds them without merit.
Upon the entire record in the case the Board makes the following :
FINDINGS OF FACT
I. THE BUSINESS OF THE RESPONDENT
The Falk Corporation, the respondent herein, is a Wisconsin cor-
poration, with its main office and plant in Milwaukee, Wisconsin.
It is engaged in the design, production, sale, and distribution of steel
castings, helical gears, speed reducers, speed increasers, motoreducers,
marine drives, rolling drives and pinion' stands, flexible couplings,
contract machine work, and various other products.
In the operation of its plant the respondent uses large quantities
of pig iron and scrap steel, bar steel, coal, gray iron castings, silica
sand and fireclay, nuts, bolts, screws, rivets, electric and gasoline
' Subsequent to the filing of the Trial Examiner's Intermediate Report, a settlement
agreeable to all parties was effected in respect to the discharge of Anton Kinch.
The
settlement thus effected was approved by the Board on January 27, 1938.
We will, there-
fore, dismiss the complaint in so far as it alleges that the respondent violated Section 8
(3) of the Act through the discharge of Kinch.
658
NATIONAL LABOR RELATIONS BOARD
motors, limber, copper, tin, sheet metal, chemicals, and various other
raw materials.
Of these raw materials approximately 65 per cent
originate outside the State of Wisconsin.
Approximately 75 per cent
of the respondent's sales are to points outside the State of Wisconsin.
II. THE UNIONS
Steel Workers Organizing Committee is a labor organization au-
thorized to act on behalf of Amalgamated Association of Iron, Steel
and Tin Workers of North America for collective bargaining
purposes.
Amalgamated Association of Iron, Steel and Tin Workers of
North America, Lodge 1528, is a labor organization affiliated with
the. Committee for Industrial Organization, herein called the C. I. 0.,
through the Steel Workers Organizing Committee. It admits to-
membership all production employees in the respondent's plant, ex-
clusive of supervisory employees, draftsmen, employees in the gen-
eral office, and employees in the pay-roll department.
International Union of Operating Engineers, Local 311, is a labor
organization affiliated with the American Federation of Labor, herein
called the A. F. of L. admitting to its membership the powerhouse
employees and steam-driven locomotive crane operators of the
respondent.
_
Independent Union of Falk Employees is an unaffiliated labor or=
ganization, which admits to membership all employees of the re-
spondent, excluding officials, superintendents, assistant superintend-
ents, foremen, and assistant foremen.
III. THE UNFAIR LABOR PRACTICES
A. The background of the unfair labor practices
Prior to 1933, there was no form of employee representation in the
respondent's plant.
In the summer of 1933, after the enactment of
the National Industrial Recovery Act, a Works Council was set up at
the suggestion of Harold Falk, vice president and works manager of
the respondent.
Falk told the employees that it would be inadvis-
able to choose an outside labor organization and that the respondent
would not allow a closed shop.
At an election held subsequently
ballots cast for outside representatives were not counted.
The Works
Council was composed of Employee and Management Representa-
tives, the chairman and secretary being appointed by the manage-
ment.
Some time after its formation, the Employee Representatives,
at their request, were allowed to meet alone to decide what they
wished to discuss at the regular meeting with the Management Repre-
sentatives.
Employee Representatives were compensated at their re-
spective hourly rates for time spent at meetings of the Works Council.
DECISIONS AND ORDERS
659
B. The formation of the Independent
In April 1937, it seems to have been generally agreed between the
Works Council and the respondent that the Works Council would
have to be disestablished because of the provisions prohibiting com-
pany-dominated labor organizations in the Act and also in the so-
called Severson Bill, then pending in the Wisconsin Legislature.
On
April 8, 1937, the Works Council held its last meeting at which meet-
ing Harold Falk was present.
There is testimony that he told the
employees that they could- form an independent union and that they
could meet on the respondent's property to make arrangements for
forming it, but that they would have to meet off the respondent's
property after it was formed.
Although Falk denied that he had
made these statements, he admitted that at that meeting he had
discussed the situation in another company's plant where there was
trouble between the A. F. of L. and the C. I. O.
He also admitted
that at that meeting he had told the men that a raise which had been
agreed on between the respondent and the Works Council to become
effective June 1, 1937, would stand as long as the Works Council
stood, but that, if another group came into being, the arrangements
would be canceled and new negotiations would have to be entered
into with the new group. In view of the respondent's hostility to
outside unions, its domination of the Works Council, and Falk's
admitted statements concerning the C. I. O. and A. F. of L. activities
in another plant in conjunction with his discussion of the wage in-
crease, his denial of his express approval of a prospective inside
union and acquiescence in such a union's preliminary use of company
facilities is not convincing.
On April 12, 13, and 14, 1937, a group of past and present Em-
ployee Representatives on the Works Council held four meetings in
the basement of the plant hospital during working hours and dis-
cussed the formation of an inside union.
Hydar, the personnel man-
ager of the respondent, was instrumental in notifying employees of
the meeting held on April 12.
He did not remember who had asked
him to notify these employees, but was certain that the person who
had made the request was an employee.
Harold Falk was called into the meeting on April 12.
He testified
that he gave his impressions of the Wagner Act to the men as "near
as he could."
At this meeting Falk agreed to advance the date of the
wage increase from June 1, 1937, to May 1, 1937, if it would make the
men "feel any better" and to show the respondent's good faith.
There is evidence that this action was suggested and taken as a means
of keeping the C. 1. O. out of the plant.
Although the evidence is
conflicting on this point, Falk's willingness, under the circumstances
discussed, to advance,the date of the wage increase, indicates that
660
NATIONAL LABOR RELATIONS BOARD
such a suggestion was made and acted upon to influence the men
in their choice of a labor organization.
On April 13, the men again sent for Harold Falk.
He was not
in the plant, but his son, Richard, addressed the meeting as did
Connell, a vice president of the respondent.
Connell told the men
that his interpretation of the Wagner Act was that the respondent
could not help the men either financially or in an advisory capacity.
The meeting was then adjourned.
After the meeting, some of the
men met Harold Falk in the plant. Falk told the men that it was
all right to go ahead with the inside union.
There is also evidence
that he told the men that they would have to incorporate as quickly
as possible because the C.I.O. was working in the plant, which
statement was denied by Falk.
At any rate, the men held another
meeting at which it was decided to secure the services of an attorney.
A committee was sent to Harold Falk for suggestions as to an
attorney.
Falk named two or three attorneys whereupon Greget, one
of the committee, said that Burke, one of the attorneys suggested by
Falk, would be satisfactory.
Falk then made an appointment with
Burke for the men.
Landry, president of the Amalgamated and one
of those present at the meetings, claims that he objected strenuously
to having Harold Falk suggest the attorney and that after his objec-
tion the men began to make up a story to tell in case anybody asked
who suggested the attorney.
Greget did not remember any protest
being made by Landry, nor did he recall any discussion among the
men to the effect that they would have to make up a story to tell if
anyone asked who suggested the attorney.
A committee was appointed on April .13, 1937, to confer with
Burke relative to the organization of an inside union.
Burke told
the committee at a conference on April 14 that if the inside union
became established he would charge a fee, but that otherwise there
would be no fee. Three members of the committee went to Burke's
office the next day, but did not sign incorporation papers, which
he had drawn up for the inside union, having previously decided that
they would first organize as an association and incorporate later.
On April 18, 1937, the Independent held an organization meeting
in a hall, which was not on the respondent's property.
When asked
who suggested the attorney, Greget answered that he had suggested
him, having heard of him through an automobile accident in which
he had been involved.
Greget's failure to disclose the fact that Falk
had suggested the attorney seems to confirm Landry's testimony and
indicates that the organizers of the Independent both realized the
company domination and influence involved in this incident, and
feared that its disclosure would have a disastrous effect on their
organizational activities.
Nothing definite as to the form of organi-
zation that the inside union was to adopt was decided at the April 18
DECISIONS AND ORDERS
661
meeting.
One of those present testified that they decided to "run
along as an association and then later on incorporate." This
amounted to a ratification of the decision on incorporation made by
the committee when it had conferred with Burke.
When the meeting had been adjourned, three employees, who had
attended it, discussed incorporation of the Independent with the
attorney.
They were joined by another employee, who said that, if he
could get two other signers, he would go to the attorney's office next
day and sign articles of incorporation.
One of those present ad-
mitted, at the hearing, that the reason the Independent is a corpora-
tion today is because of "a little intimate talk" between three
employees and the attorney.
. The next day, April 19, 1937, the three employees, who had attended
the meeting on the previous day, went to Burke's. office and signed the
articles of incorporation, although they had not been given authority
to do so. The articles of incorporation were immediately taken to the
State Capitol at Madison, Wisconsin, and filed.
On April 201937,
they were filed in the Register of Deeds Office at Milwaukee.
On the
same day the three incorporators notified the respondent by letter that
the Independent was incorporated, that approximately 400 employees
were members of it, and that a time and place was requested to discuss
collective bargaining.
The three incorporators met with the respondent on April 23, 1937,
and, on their statement that they represented a majority of the em-
ployees, the respondent recognized the Independent as bargaining
agency for all the employees.
No proof that it represented a majority
was offered and none was required by the respondent.
During March, April, and May, 1937, both the Amalgamated' and
the Independent conducted an intensive campaign for members, at
times doing so during working hours. Some of the foremen, in discus-
sions with the men, expressed their hostility to the C. I. O. and told
them that an inside union would be better for them.
At the hearing,
the foremen testified that the management had ordered them not to
express opinions on the subject, but admitted that they had expressed
their opinions in "friendly" talks with the men.
Prior to and coincident with the active organization efforts of the
Amalgamated and the Independent, the Operating Engineers had
undertaken to organize a smaller group of the respondent's employees.
The Operating Engineers began to organize the powerhouse em-
ployees of the respondent in February 1937, and by April had suc-
ceeded in obtaining application cards, signed by 14 of the 17 employees
in the powerhouse.
On or about April 12, 1937, Kingsland, the busi-
ness representative of the Operating Engineers, conferred with Har-
old Falk and asked recognition of the Operating Engineers as bar-
gaining agent for these employees.
Falk replied that he wanted to
662
NATIONAL LABOR RELATIONS BOARD
know how the men in the powerhouse felt about it first. After the con-
ference he interviewed the men individually to ascertain how- many
desired to be represented by the Operating Engineers.
At the hearing
Falk testified that he may have expressed an opinion unfavorable to the
Operating Engineers, when talking to the men at that time.
The Operating Engineers then sent post cards to the powerhouse
employees stating that the conference between Falk and Kingsland
had been favorable, that only working hours remained to be settled,
and that a meeting for these employees was to be held on April 18,
1937.
When Falk learned of these post cards, he sent to each employee
in the powerhouse a letter stating: "(1) we are not in favor of a union
(2) we will not agree to recognize Mr. Kingsland as bargaining agent
for you unless you as a group signify your desire to have us do so (3)
we are ready at all times to meet with you as a group or individually to
discuss your problems."
On April 28, 1937, counsel for the Operating
Engineers accused Falk of coercing these employees.
After this ac-
cusation, Falk called the powerhouse employees to his office individ-
ually to find out whether or not they had been intimidated by his
former conversation with them.
Although several of the powerhouse
employees assured Falk in these individual conversations and later
testified at the hearing that they were not intimidated by the conversa-
tions or letter, it is-significant that no one appeared at the next meeting
of the Operating Engineers held on April 18, 1937. Letters of with-
drawal, which were prepared in the office of the attorneys for the Inde-
pendent, were subsequently received about May 6, 1937, by the
Operating Engineers from five of the engineers.
The sequence of events from the disestablishment of the admittedly
company-dominated Works Council to the recognition of the Inde-
pendent by the respondent compels the conclusion that the formation
and continued functioning of the Independent were directly attribut-
able to the above-described activities of the respondent.
The re-
spondent's antipathy to outside unions was amply demonstrated to the
employees.
At the last meeting of the Works Council, Falk's remarks
respecting the establishment of an' inside union disclosed to the em-
ployees the respondent's preference for such a union.
This prefer-
ence was further emphasized by the foremen's expressions of hos-
tility to the C. I. O. and their advice that an inside union would be
better for the employees.
These opinions, expressed by persons in
supervisory capacities, were intended to and did restrict the employees
in their choice of a labor organization.
The respondent translated
this verbal preference into action. It permitted the meetings for the
formation of the Independent to be held on its property during work-
ing hours.
Hydar notified the employees to attend the first of these
meetings, which were addressed by Harold Falk and Connell, two
of the respondent's principal officials, and by Falk's son, Richard.
DECISIONS AND ORDERS
663
Harold Falk promised to advance the date of the wage increase as an
inducement to the employees to form and join the Independent and
gave them his sanction.
The attorney, retained by the employees, was
selected from among those suggested by Harold Falk and the appoint-
ment with him was arranged by Falk. The effectiveness of the re-
spondent 's interference with the administration of the Independent is
further evidenced by the employees' abrupt decision to incorporate
although they had previously decided to postpone such action.
With
the form of the Independent perfected in accordance with its de-
sires, the respondent recognized it as the bargaining agent for all its
employees on the mere statement of its incorporators that it repre-
sented - a majority of such employees, without requiring any other
proof of a majority.
This hasty recognition of the Independent en-
abled the respondent to utilize it within 2 weeks as a pretext for
denying collective bargaining to the Amalgamated.
We find that, by the above-stated acts , the respondent dominated
and interfered with the formation and administration of the Inde-
pendent and contributed support to it and thereby interfered with,
restrained, and coerced its employees in the exercise of their rights
guaranteed in Section 7 of the Act.
C. The refusal to bargain collectively
1. The appropriate unit
The complaint alleged that all employees in the respondent's Mil-
waukee plant, except supervisory employees, draftsmen , employees in
the general office, and employees in the pay -roll department, con-
stituted an appropriate unit. In support of this allegation the Amal-
gamated pointed out at the hearing that the problems and interests of
the production employees are different from those of the draftsmen
and clerical employees .
The basis of pay is likewise different as are
the working hours.
These differences are of such a nature as to pre-
clude effective bargaining by,one group for the other.
The Operating Engineers contends that the powerhouse employees
of the respondent, including operators of steam-driven locomotive
cranes, constitute an appropriate unit.
These employees are required
by the City of Milwaukee to have a license in order to perform their
duties.
Other employees cannot take their positions unless they are
licensed engineers.
The powerhouse is a separate building.
The
powerhouse employees are paid on a monthly salary basis.
In view of the facts described above, it appears that the power-
house employees can be considered either as a separate unit, as claimed
by the Operating Engineers, or as part of the large unit composed
of production employees, as claimed by,the Amalgamated. - Falk
80618-38-vor, vi-43
664
NATIONAL LABOR RELATIONS BOARD
testified that, for purposes of collective bargaining, the interests of
the powerhouse employees could be effectively served either by repre-
sentation with all the employees in the plant or' by separate representa-
tion for these employees.
The Amalgamated and the Operating Engineers recognized this
situation' as is evidenced by the fact that at the hearing they entered
into a stipulation, by which they agreed that, if the Board should di-
rect an election, the employees in the power plant and the crane oper-
ators would vote separately to determine whether they desired to be
represented by the Amalgamated or the Operating Engineers for the
purpose of collective bargaining.
This stipulation was to be effective
only if, in such an election, the Independent were excluded from the
ballot and only the names of the Amalgamated and the Operating
Engineers appeared.
In such a case where the considerations are so evenly balanced, the
determining factor is the desire of the men themselves.2
On this
point the record affords no help. There has been a swing toward the
Operating Engineers on the part of the powerhouse employees and
then away from it.
We shall, therefore, order an election on the
basis of the stipulation between the Amalgamated and the Operating
Engineers.
Upon the result of this election will depend the determi-
nation of the appropriate unit or units for purposes of collective bar-
gaining.
If the powerhouse employees choose the Operating Engi-
neers, they will constitute a single appropriate unit and the other pro-
duction employees will constitute another appropriate unit.
Other-
wise all the production workers, including the powerhouse employees,
will constitute a' single appropriate unit.
• 2. Representation in the unit claimed to be appropriate
The financial secretary of the Amalgamated testified at the hear-
ing that there were between 585 and 615 applications to membership
in the Amalgamated around May 5, 1937, which was the date on
which the Amalgamated requested collective bargaining from the re-
spondent.
He later testified, however, that the Amalgamated had
about 677 application cards on May 5, 1937. The Amalgamated did
not produce any records at the hearing to prove that it represented a
majority of the employees, although the respondent demanded that
the financial secretary produce his membership records.
The min-
utes of the first meeting of the incorporators of the Independent,
held on April 24, 1937, disclose that there were on that date 693 appli-
cations to membership in the Independent, while the minutes of a
meeting on June 5, 1937, contain a statement by the secretary that
there were 800 or more'members.
Figures, submitted by the super-
2 See Matter of Globe Machine and Stamping Company , 3 N. L. R B. 294.
DECISIONS AND ORDERS
665
visor of the respondent's cost and pay-roll department, taken from
the pay roll as of May 5, 1937, show that there were 1,316 employ=
ees, exclusive of miscellaneous employees, office and pay-roll employ-
ees, and drafting and engineering employees.
Since there was no clear showing that the Amalgamated repre-
sented a majority of the employees within an appropriate unit at the
time it sought to bargain with the respondent, there was no violation
of Section 8 (5) of the Act and the allegations of the complaint t6
that effect will, accordingly, be dismissed.
IV.
THE QUESTION CONCERNING REPRESENTATION
It is apparent from the foregoing that a dispute exists concerning
the appropriate unit or units and the representation of employees
within such unit or units.
Both the Amalgamated and the Operating
Engineers have advanced conflicting claims.
We find that a- question has arisen concerning representation of
employees of the respondent.
V. THE EFFECT OF THE UNFAIR LABOR PRACTICES AND THE QUESTION CON'-
CERNING REPRESENTATION UPON COMMERCE
We find that the activities of the respondent set forth in Section
III above, and the question concerning representation which had
arisen, occurring in connection with the operations of the respondent
described in Section I above, have a close, intimate, and substan=
tial relation to trade, traffic, and commerce among the several States,
and tend to lead to labor disputes burdening and obstructing com-
merce and the free flow of commerce.
THE REMEDY
We have found that the respondent dominated and interfered with
the formation and administration of the Independent and has con-
tributed support to it.
Since its inception, and especially since the
question concerning the representation of the respondent's employees
has arisen, the respondent has used the Independent as a convenient
weapon to prevent the exercise of its employees' rights to self-or-
ganization and collective bargaining.
The respondent, in order to•
remedy its unlawful conduct, must withdraw all recognition from:
the Independent and completely disestablish it as a collective bar=
gaining agency.
We have found that there is a question affecting commerce con-
cerning the representation of the respondent's employees.
We shall,
therefore, order an election to be held among the employees of the
respondent, who were in its employ during the pay-roll period-
666
NATIONAL LABOR RELATIONS BOARD
immediately preceding our Direction of Election in order to deter-
mine the appropriate bargaining unit or units and the representa-
tion of employees within such unit or units.
We shall direct that
such election be held upon our further order after we are satisfied
that the effects of the respondent's unfair labor practices have been
dissipated by compliance with this order. In such election we shall
make no provision for the designation of the Independent on the
ballot.
CONCLUSIONS OF LAW
1. Steel Workers Organizing Committee; Amalgamated Associa-
tion of Iron, Steel and Tin Workers of North America, Lodge 1528;
International Union of Operating Engineers, Local 311; and Inde-
pendent Union of Falk Employees are labor organizations within
the meaning of Section 2 (5) of the Act.
2. By interfering with, restraining, and coercing its employees in
the exercise of their right to self-organization, to form, join, or as-
sist a labor organization, to bargain collectively through repre-
sentatives of their own choosing, and to engage in concerted activi-
ties for the purposes of collective bargaining and other mutual aid
and protection as guaranteed in Section 7 of the Act, the respondent
has engaged in and is engaging in unfair labor practices, within
the meaning of Section 8 (1) of the Act.
3. By dominating and interfering with the formation and admin-
istration of the Independent and by contributing support to it, the
respondent has engaged in and is engaging in unfair labor prac-
tices within the meaning of Section 8 (2) of the Act.
4. The unfair labor practices referred to in paragraphs 2 and 3
above, constitute unfair labor practices affecting commerce, within
the meaning of Section 2 (6) and (7) of the Act.
5. A question affecting commerce has arisen concerning the repre-
sentation of employees of The Falk Corporation, within the, mean-
ing of Section 9 (c) and Section 2 (6) and (7) of the Act.
ORDER
Upon the basis of the foregoing findings of fact and conclusions of
law, and pursuant to Section 10 (c) of the National Labor Rela-
tions Act, the National Labor Relations Board hereby orders that
the respondent, The Falk Corporation, and its officers, agents, suc-
cessors, and assigns shall :
1. Cease and desist :
(a) From'dominating or interfering with the formation or ad-
ministration of the Independent Union of Falk Employees, or any
other labor organization of its employees, and from contributing
DECISIONS AND ORDERS
667
support to the Independent Union of Falk Employees or to any other
labor organization of its employees;
(b) From in any other manner interfering with, restraining, or
coercing its employees in the exercise of their rights to self-organi-
zation, to form, join, or assist labor organizations, to bargain col-
lectively through representatives of their own choosing , and to en-
gage in concerted activities for the purposes of collective bargain-
ing or other mutual aid or protection.
2. Take the following affirmative action which the Board finds will
effectuate the policies of the Act :
(a) Withdraw all recognition from the Independent Union of
Falk Employees as the representative of any of its employees for
the purpose of dealing with the respondent concerning grievances,
labor disputes, wages, rates of pay, hours of employment, and other
conditions of employment, and completely disestablish the Inde-
pendent Union of Falk Employees as such representative;
(b) Immediately post notices in conspicuous places throughout
its Milwaukee plant and maintain such notices for a period of
thirty
( 30) consecutive days stating
( 1) that the respondent will
cease and desist in the manner aforesaid , and (2 ) that it has with-
drawn all recognition from the Independent Union of Falk Employ-
ees as the representative of -its employees for the purpose of dealing
with the respondent concerning grievances , labor disputes, wages;
rates of pay, hours of employment , and other conditions of employ-
ment, and that it has completely disestablished said organization as
such representative;
(c) Notify the Regional Director for the Twelfth Region in writ-
ing within ten (10 ) days from the date of this order what steps it
has taken to comply herewith.
The complain is hereby dismissed
(1) in so far as it alleges
that the respondent 'committed unfair labor practices within the
meaning of Section 8
(3) of the Act in discharging Anton Kinch,
and (2 ) in so far as it alleges that the respondent has engaged in
an unfair labor practice within the meaning of Section 8 (5) of the
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 Rela-
tions Act, 49 Stat. 449, 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 the purposes of collective bargaining
with The Falk Corporation, Milwaukee, Wisconsin, an election by
668
NATIONAL LABOR RELATIONS BOARD
secret ballot shall be conducted within such time as we may here-
after direct, under the direction and supervision of the Regional
Director for the Twelfth Region, acting in this matter as agent for
the National Labor Relations Board, and subject to Article III, Sec-
tion 9, of said Rules and Regulations (1) among the employees of
said Company, exclusive of supervisory employees, draftsmen, em-
ployees in the general office, employees in the pay-roll department,
powerhouse employees, and steam-driven locomotive crane operators,
who were in the employ of the Company during the pay-roll period
immediately preceding this Direction of Election, excluding those
who since have voluntarily quit or have been discharged for cause,
to determine whether or not they desire to be represented by Amal-
gamated Association of Iron, Steel and Tin Workers of North
America, Lodge 1528, affiliated with the Committee for Industrial
-Organization, for the purposes of collective bargaining, (2) among
the powerhouse employees and steam-driven locomotive crane opera-
tors of said Company, who were in the employ of the Company dur-
ing the pay-roll period immediately preceding this Direction of
Election, to determine whether they desire to be represented by Amal-
gamated Association of Iron, Steel and Tin Workers of North Amer-
ica, Lodge 1528, affiliated with the Committee for Industrial Organi-
zation, or by International Union of Operating Engineers, Local 311,
affiliated with the American Federation of Labor, for the purposes of
collective bargaining, or by neither.