Sterling Advertising Agency

In the Matter of STERLING ADVERTISING AGENCY and AMERICAN- ADVERTISING GUILD, LOCAL 20, U 0 P. W A., CIO Case No, R ,3938 -Decided July 10, 1942 Jurisdiction : advertising industry Investigation and Certification of Representatives : refusal to accord petitioner recognition until certified by the Board , employees temporarily laid off held eligible to vote , election necessary' - Unit Appropriate for Collective Bargaining : all employees including the ship- ping department head , but excluding executives , supervisory employees , account executives , and department heads other than the one specifically included. Mr Arthur Steinberg, of New York City, for the Company. Mr Nicholas Chase, of New York City, for the Union., Mr. Louis Cokin, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF THE CASE Upon petition duly filed by American Advertising Guild, Local 20, U 0 P. W. A , CIO, herein called the Union, alleging that a question affecting commerce had arisen conceiving the representation of employees of Sterling Advertising Agency, New York City, herein called the Company, the National Labor Relations Board provided for an,appropriate hearing upon due notice before John J Cuneo, Trial Examiner Said hearing was held at New Yoik City, on June 11, 1942 The Company and the Union 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 hearing are free from prejudicial error and are hereby affirmed. Upon the entire record in the case, the Board makes the following: FINDINGS OF FACT I THE BUSINESS OF THE COMPANY Sterling Advertising Agency is a New York corporation with- its principal place of business at New York City where it operates an 42 N L R B, No 66 281 282 DECISIONS OF NATIONAL LABOR RELATIONS BOARD advei tising agency Foity-five per cent of the Company's clients are located outside the State of New York and the value of the advertis- ing placed for such clients during 1941 amounted to about $105,000 Ninety-nine percent of the Company's clients are engaged in the manufacture, pioduction, sale, and distribution of products which are sold and transported in interstate commerce The Company ad- mits that it is engaged in comineice within -the meaning of the National Labor Relations Act. - - II THE ORGANIZATION INVOLVED American Advertising Guild, Local 20, U 0 P W- A , is a_labor organization affiliated with the Congress of Industrial Organizations, admitting to membership employees of the Company III 1HE QUESTION CONCERNING REPRESENTATION The Company iefuses to recognize the Union as the exclusive bargaining representative of its -employees until such time as the Union is certified by the Board A statement of the Regional Director, intioduced into evidence during the hearing, indicates that the Union represents a substantial number of employees in the unit hereinafter found to be appro- priate I _ We find that a question affecting comueice has arisen concerning the representation of employees of the Company, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the Act 11' THE APPROPRIATE UNIT The Union 'contends that all employees of the Company, excluding executives and supervisory employees, constitute an appi opriate unit The • only, conti oversy with., respect, to ` the unit concerns :account executives and department heads The Union contends that such employees be excluded from the unit and the Company that they be included - ` Account executives These employees are salesmen who contact prospective advertisers The Company employs six such persons and they receive about $5,000 each per-year in salary They work out adveftismg plans with production and copy employees and artists and approve all such copy They spend approximately `two-thirds of their time-outside the office' soliciting business With the excep- tion of certain ,department heads, the other employees of the Com- ' The Regional Director reported that `the Union presented 19 membership application cards bearing apparently genuine signatures of persons whose names appear on the Company's pay roll of April 4, 1912 There are approximately 20 employees in the unit hereinafter found to be appropriate STERLING ADVERTISING AGENCY 283 parry receive flour $15 to $40 per week Under the circumstances, we shall exclude the account executives from the unit Department heads The Union urges that the head of the ship- ping depaitment be included in the unit The Company agrees with this contention The slopping depai tment head receives $21 per week ,ind has no authoiity,,to hire of discharge We shall include the shipping department head in the unit The other department heads employed by the Company, ieceive from $75 to $140 per week in salary The other employees receive from $15 to $40 per week There ate from two to seven persons employed in each of the de- partments Under the circumstances, we shall exclude all the de- partment heads other than the shipping depaitment head fiom the unit We find that all employees of the Company, including the shipping department head, but excluding executives, supervisory employees, account executives, and department heads (not including shipping department head), constitute a unit appiopriate for the purposes of collective bai gaining, within the meaning of Section 9 (b) of the Act V THE DETEQDIINATION OF REPRESENTATIVES We find that the question concerning representation can best be resolved by an election by secret ballot among the employees in the appropriate unit who were employed during the pay-roll period im- mediately preceding the date of the Direction of Election herein, subject to the limitations and additions set forth in the Dnection Due to a decline in the Company's business, it laid off about 13 employees in April 1942 It appears from the record that the Company's volume of business uicieases in July and August of each year and the president of the Company testified that it is the inten- tion of the Company to iehire all its laid off employees as business warrants it We find that the persons laid off are employees tem- porarily laid off within the meaning of our Direction of Election herein, and shall be eligible to vote in the election DIRECTION OF ELECTION By virtue of and pursuant to the poiser 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 National Labor Relations Boaid Rules and Regulations-Series 2, as amended, it is hereby DIRECTED that, as part of the investigation to ascertain representa- tives foi the purpose of collective bargaining with Sterling Adver- tising Agency, New York City, an election by seciet ballot shall be 284 DECISIONS OF NATIONAL, LABOR' RELATIONS BOARD conducted as early as possible, but not later than thirty (30) days from the date of this Direction, under- the dii ection and supervision of the-Regional Director for the Second Region, acting in this mat- ter as agent for the National Labor Relation's Boaid, and subject to Article 4II, Section 9, of said Rules and Regulation, among the employees, in the unit found appropriate in Section IV above, who were employed during the pay-roll period immediately preceding the date of this Direction, including employees who did`not work duimg such pay-roll period because they were ill of on vacation or in the active military servile or training of the United States, or tem- porarily `laid off, but excluding 'employees wlio have since quit or been discharged' for cause, to determine whether or not they desire to be represented by American Advertising Guild Local 20, U O. P W A, affiliated with the Congress of Industiial Organizations, for the purpose of collective bargaining.