International Harvester Co.

In the Matter Of INTERNATIONAL HARVESTER COMPANY, SPRINGFIELD WORKS and UNITED AUTOMOBILE WORKERS OF AMERICA, LOCAL 402 Case No. R-11,35.-Decided February 20, 1939 Farm Machinery Manufacturing Industry-Motor Truck Manufacturing Indus- tryInvestigation of Representatives: controversy concerning representation of employees : rival organizations ; refusal by employer to recognize petitioning union as bargaining agency of employees-Unit Appropriate for Collective Bar- gaining: hourly paid and, piece-work employees, excluding, foremen, assistapt foremen, and others having power to hire and discharge ; stipulation of parties as to-Representatives: eligibilty to participate in choice: dispute as to pay-rollh date to be used to determine eligibility ; no proof of membership-Election; Ordered Mr. W. J. Perricelli, for the Board. Mr. Frank B. Schwarer, of Chicago, Ill., for the Company. Mr. Julius Holzberg, of Cincinnati, Ohio, for the United. Mr. R. Stanley Lucas, of Springfield, Ohio, for the Independent. Mr. William Strong, of counsel to the Board. DECISION AND DIRECTION OF ELECTION 1 STATEMENT OF THE CASE On October 7, 1938, United Automobile Workers of America, Local 402, herein called the United, filed with the Regional Director for the Ninth Region (Cincinnati, Ohio), an amended petition 2 alleging that a, question affecting commerce had arisen concerning the repre- sentation of the employees of International Harvester Company. Springfield, Ohio, herein called the Company, and requesting an, investigation and certification of representatives pursuant to Sec= tion 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. On October 25, 1938, the. National Labor Relations Board, herein called 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, ordered an investiga- tion and authorized the Regional Director to conduct it and to pro- vide for an appropriate hearing upon due notice. ' Order permitting withdrawal of petition issued April 6, 1939 , 12 N. L. R B., No. 14. ° The original petition was filed on September 10, 1938. 11 N. L. R. B., No. 43. 471 472 DECISIONS OF NATIONAL LABOR RELATIONS BOARD On November 9, 1938, the Regional Director issued a notice of hearing, copies of which were duly served upon the Company, upon the United, and upon Independent Automotive Association, Inc., of T. H. C. Employees, herein called the Independent, a labor organi2a tion purporting to represent employees directly affected by the in- vestigation. Subsequently all parties hereto were notified of post- ponement of the hearing. Pursuant to the notice and postponement, a hearing was held on December 1 and 2, 1938, at Springfield, Ohio, before Charles W. Whittemore, the Trial Examiner duly designated by the Board. The Board, the Company, the United, and the In- dependent were represented by counsel and participated in the hear- ing. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evidence bearing on the issues was af- forded all parties. During the course of the hearing the Trial Ex- aminer made several rulings on motions and on objections to the admission of evidence. The Board has reviewed the rulings of the Trial Examiner 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 : FINDINGS OF FACT I. THE BUSINESS OF THE COMPANY International Harvester Company is a New Jersey corporation engaged principally in the manufacture, sale, and distribution of agricultural implements, motor trucks, tractors, stationary engines, and parts therefor. Its principal executive offices are in Chicago, Illinois, and, through subsidiary and affiliated companies, it operates 13 manufacturing plants in ,the United States, 2 in Canada, and 4 in Europe. This proceeding is concerned with the representation of employees of the Company at its plant at Springfield, Ohio, where it is engaged principally in the assembly of motor trucks. More than 60 per cent of the materials assembled at the plant are deliv- ered to it from points outside the State of Ohio. In the year, be- ginning November 1, 1937, over 53,000 motor trucks were assembled at the plant, of which more than 90 per cent were distributed to points outside the State of Ohio" H. THE ORGANIZATIONS INVOLVED United Automobile Workers of America, Local 402, is a labor or- ganization affiliated with the' Committee for Industrial Organization. aA description of the business of the Company appears in Matter 'of International Harvester Company and Local Union No. 57,'International Union, United Automobile 7Voikers of America, 2 N. L. R. B. 310 • - INTERNATIONAL HARVESTER ,- COMPANY" ET IAL.. A473 It admits to membership hourly paid employees and piece workers of the Company, except foremen, assistant foremen, and others hav- ing the right to hire and discharge. Independent Automotive Association, Inc., of I. H. C. Employees, is an unaffiliated labor organization admitting to membership hourly paid employees and piece workers of the Company, except foremen, assistant foremen, and others having the right to hire and discharge. III. THE QUESTION CONCERNING REPRESENTATION On October 7, 1937, a consent election was held among the Com- pany's employees, in which the United and the Independent were the labor organizations on the ballot. The pay roll of September 24, 1937, was used as the basis of eligibility. As a result of the election, the Independent was selected as collective bargaining representative of the employees of the Company. On December 15, 1937, the Inde- pendent and the Company entered into a collective bargaining agree- ment, which expired on December 15, 1938. On August 9, 1938, a committee composed of members of the United attempted to confer with company officials in order to discuss em- ployment conditions. The company officials refused to meet with the committee and informed one of its members that the Company was not required to meet with anyone except the exclusive bargain- ing agent, meaning the Independent. The superintendent of the Company, Robert M. Watkins, stated during the hearing that the Company would not be willing to bargain with the United as sole bargaining agent of the workers without further direction of the Board. The United and the Independent both claim to represent a majority of the Company's employees in an appropriate unit at its Springfield plant. We find that a question has arisen concerning representation of the employees of the Company. IV. TIIE EFFECT OF THE QUESTION CONCERNING REPRESENTATION UPON 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 com- merce and the free flow of commerce. V. THE APPROPRIATE UNIT The Company,- the United, and the Independent stipulated that all hourly paid employees and piece workers at the Company's DECISIONS'OF'-'1VATI'ONAL' LABOR RELATIONS BOARD 44-74 Springfield plant, except foremen, assistant foremen, and others 'laving the right to hire and discharge, constitute an appropriate bargaining unit; that, with relation to the agreed unit, gang leaders, group leaders, or pool' leaders, are eligible' for-Imembership in both unions; 4 that time-study men, the secretary to the superintendent, and all industrial relations department employees are salaried em- ployees; and that clerical workers paid on an hourly basis should be included within the unit. No reason appears for departing from the agreed unit. We ac- cordingly find that all hourly paid employees and piece workers of the Company's Springfield plant, excluding foremen and assistant foremen and others having the power to hire and discharge, consti- tute a unit appropriate for the purposes of collective bargaining and that said unit will insure to the employees of the Company the full benefit of their right to self-organization and to collective bargaining and otherwise effectuate the policies of the Act. VI. THE DETERMINATION OF REPRESENTATIVES At the hearing neither the United nor the Independent offered any proof to show how many of the Company's employees they represented. We, accordingly, find that an election by secret ballot is necessary to resolve the question concerning representation which has arisen. The pay roll of the Company for the period ending October 15, 1937, contains 6,014 names which include approximately 5,500 persons in the appropriate unit. The Company was at that time operating on a 5-day week. At the time of the hearing, the Company employed about 2,500 persons, and was operating on a 4-day week. The United contends that the pay roll of October 15, 1937, should be used to determine eligibility for participation in the election or, in the alter- native, that the present pay roll be used, adding unemployed persons having seniority with the Company, and excluding those who have obtained substantially equivalent employment elsewhere. It claims that all persons on the October 15, 1937, pay roll have seniority rights and will be reemployed. The Association stated that it is immaterial to it what method or pay-roll date is used to determine eligibility of employees to vote. The Company urges the use of the pay-roll date nearest the date of the filing of the petition, or, in the alternative, the latest pay-roll date on which not more than 3,500 persons were employed. It con- tends that the peak pay roll -in 1937 resulted from a revision of *Both labor organizations exclude persons with power to hire and discharge ( Section II, above). INTERNATIONAL HARVESTER COMPANY ET AL. 475 plant and production facilities, the existence of an abnormal stock of materials on hand, the introduction of a new truck model, and an unexpected demand for the new model truck. However, no evidence was introduced to show how many of the employees working in 1937 were engaged in revision of plant and production facilities,, and how many were engaged in production. The Company's production schedule for the current year (Novem- ber 1, 1938, to October 31, 1939) calls for an average of 306 trucks daily, on the present basis of a 4-day week. It estimates that such schedule well require the employment of not more than 3,500 persons. The Company's superintendent admitted that its production and employment estimates have been wrong in the past. Although the Company has discontinued certain of its operations, it has also inaugurated others. A new model was put out by the Company in 1935, and another in 1937. The superintendent of the Company testified that in his opinion a new model would not be put out this year, but admitted the possibility that one would. The Company admits that an increase in production to the 1937 level would result in reemployment of a very substantial number of the persons on the October 15, 1937, pay roll. The December 15, 1937, agreement between the Company and the Independent, as modified, gave seniority rights to an employee after a 6-month period of service with the Company. Once acquired, the seniority rights were to be retained for 2 years after separation from the Company's employ. The Company's superintendent testified that the Company recognizes seniority rights in every person previously employed by it. It appears that, depending largely upon business conditions, a substantial number of the Company's employees who were on the October 15, 1937, pay roll may be recalled during 1939. Since it is our desire to insure eligibility to the largest number of employees affected by our determination of representatives, we shall direct that all employees in the appropriate unit who were employed during the pay-roll period ending October 15, 1937, excluding any who have since quit or been discharged for cause, shall be eligible to vote. Upon the basis of the above findings of fact and upon the entire record in the case, the Board makes the following : CONCLUSIONS OF LAW 1. A question affecting commerce has arisen concerning the repre- sentation of employees of International Harvester Company, at its Springfield, Ohio, plant, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the National Labor Relations Act. 476 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 2. All hourly paid employees and piece workers of the Company, except foremen, assistant foremen, and others having the right•-to hire and discharge, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9 (b) 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 Rela- tions Act, 49 Stat. 449, and pursuant to Article III, Section 3, 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,- an election by secret ballot shall be conducted within thirty (30) days from the date of this Direction of Election, under the direction and supervision of the Regional Director for the Ninth Region, acting in the matter as agent for the National Labor Relations Board, and subject to Article III, Section 9, of said Rules and Regulations, among all hourly paid employees and piece workers of International Harvester Company, at its Springfield, Ohio, plant, who were on the Company's pay roll of October 15, 1937, excluding foremen, assistant foremen, and others who have the power to hire and discharge, and all employees who have since quit or been discharged for cause, to determine whether they desire to be represented by United Auto- mobile Workers of America, Local 402, affiliated with the Committee for Industrial Organization, or by Independent Automotive Associa- tion, Inc., of I. H. C. Employees, or by neither, for the purposes of collective bargaining.