Bernard Schwartz Cigar Corporation

In the Matter of BERNARD ScnwARTz CIGAR CORPORATION and UNITED CIGAR WORKERS LOCAL INDUSTRIAL UNION No. 24 (C. I. O. AFFILIATE) Case No. C-1214.-Decided April 3, 1939 Cigar Manufacturing Industry-Settlement : agreement to comply with the provisions of the Act : including back pay in specified amounts, certain persons not to be reinstated , others to be placed upon a preferred list, and dismissal of complaint as to nine persons-Order : entered on stipulation. Mr. George J. Bott, for the Board. Butzel, Eanam, Long, Gust and Bills, by Mr. Victor W. Klein, of Detroit, Mich., for the respondent. Mrs. Victoria Rosinski, of Detroit, Mich., for the Union. Mr. A. J. Toth, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon charges and amended charges duly filed by United Cigar Workers Local Industrial Union No. 24,1 affiliated with the Com- mittee for Industrial Organization, herein called the Union, the National Labor Relations Board, herein called the Board, by the Regional Director for the Seventh Region (Detroit, Michigan), issued its complaint dated January 20, 1939, and an amended com- plaint dated February 8, 1939, against Bernard Schwartz Cigar Corporation, Detroit, Michigan, herein called 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 National Labor Relations Act, 49 Stat. 449, herein called the Act. A copy of the complaint and amended complaint'and notices of hearing thereon were duly served upon the respondent, the Union, the Employees' Committee of Five, a labor organization of the respondent's em- ployees, and the Wolverine Labor Organization, a labor organization of the respondent's employees. 1 The amended complaint designates the Union as United Cigar Workers, Local Indus- trial Union, No. 24. 12 N. L. R. B., No. 4. 169134-39-vol. 12-4 35 36 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Concerning the unfair labor practices the complaint, as amended, alleged in substance that (1) the respondent has refused and con- tinues to refuse to bargain with the Union as the exclusive repre- sentative of its employees in an appropriate unit for the purpose of collective bargaining, although the Union was certified as such representative by the Board on May 27, 1938; (2) the respondent dominated and interfered with the formation and administration of two labor organizations among its employees, known as the Wolver- ine Labor Organization, and the Employees' Committee of Five, respectively; (3) the respondent, by terminating the employment of 13 named employees, by causing the termination of employment of 7 additional employees, and by refusing to reinstate 24 other named employees to their former positions, because all of said employees had engaged in concerted activities with the respondent's employees for the purpose of collective bargaining and other mutual aid and protection, discriminated in regard to the hire and tenure of employ- ment of said employees, thereby discouraging membership in the Union; and (4) the respondent, by the aforesaid activities, and by questioning its employees concerning their union activities, by state- ments to its employees indicating its disapproval of outside unions, by threatening its employees with discharge if they failed to resign from the Union, and by various other statements and acts, interfered with, restrained, and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act. On February 11, 1939, the respondent filed its answer to the complaint in which it admitted the allegations concerning the nature and scope of its business but denied the allegations of unfair labor practices. Pursuant to notice, a hearing was held at Detroit, Michigan, on March 13 and 14, 1939, before Henry J. Kent, the Trial Examiner duly designated by the Board. The Board and the respondent were represented by counsel, and the Union, by its representative. All participated in the hearing. Full opportunity to be heard, to ex- amine and cross-examine witnesses, and to introduce evidence bear- ing upon the issues was afforded all parties. On March 13, 1939, the respondent, the Union, and counsel for the Board entered into a stipulation in settlement of the case, subject to the approval of the Board. On March 14, 1938, the hearing was closed. The stipula- tion provides as follows : It is hereby stipulated and agreed by and between the under- signed that : I. Bernard Schwartz Cigar Corporation is a corporation exist- ing under and by virtue of the laws of the State of Delaware and operates a plant in the City of Detroit, Michigan. BERNARD SCHWARTZ CIGAR CORPORATION 37 II. Said corporation is engaged in the manufacture and dis- tribution of cigars at its Detroit plant. III. In the twelve months preceding date of this stipulation, said corporation purchased raw materials in excess of one million dollars, 89Jo of which were obtained in states other than the State of Michigan. IV. Said corporation in the twelve months preceding the date of this stipulation sold finished products in excess of one and a half million dollars, 19% of which were sold or shipped to states other than the State of Michigan. V. Said corporation waives its right to a hearing in the above named proceeding and agrees that the formal papers in this matter including the Charges, Complaint and Notice of Hear- ing, Amended Complaint, Notices of Postponement of Hearing, Affidavits of Service of the Complaint, Amended Complaint and said Notices, the Answer of the Bernard Schwartz Cigar Cor- poration, a copy of the Rules and Regulations of the National Labor Relations Board and the designation of the Trial Ex- aminer may be filed with the Trial Examiner designated by the Board to preside in the above entitled proceeding or with the Chief Trial Examiner of the National Labor Relations Board. This waiver of hearing is conditioned upon the approval of this stipulation by the Board. VI. Respondent, Bernard Schwartz Cigar Corporation, re- asserts its denial that it has committed any unfair labor prac- tices as alleged in the Complaint herein, as amended, or as set forth in Paragraph VI hereof, or otherwise, but nevertheless joins in this stipulation to the end that the above matter may be amicably settled and, in so doing, is agreeable to reassure the Board of its intention to observe the National Labor Relations Act. Therefore, to this end, upon this Stipulation if approved by the National Labor Relations Board, the Board may enter an order to the following effect : The Respondent corporation shall: 1. Desist from in any manner interfering with, restraining or coercing its employees in the exercise of their rights to self organization, to form, join or assist labor organizations, to bargain collectively through representatives of their own choosing and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection as guar- anteed in Section 7 of the National Labor Relations Act; 2. Desist from urging, persuading and warning its employees to refrain from becoming or remaining members of United Cigar Workers Local Industrial Union, No. 24, or of any other labor organization of its employees' choosing; and from threat- 38 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ening said employees with discharge and other reprisals if they became or remained members thereof; 3. Desist from discouraging membership in the United Cigar Workers Local Industrial Union, No. 24, or any other labor organization of its employees' choosing by discriminating in regard 'to hire and tenure of employment or other term or con- dition of employment; 4. Desist from refusing to bargain collectively with the United Cigar Workers Local Industrial Union, No. 24, as the exclusive representative of the employees of the Bernard Schwartz Cigar Corporation excluding foremen, supervisory personnel, Board members, superintendents, maintenance employees, clerical em- ployees and those employees engaged in the office, so long as said union in fact represents a majority of the employees described above in accordance with the provisions of the National Labor Relations Act. 5. Desist from dominating or interfering with the formation or administration of any labor organization of its employees or from contributing financial or other support to any labor organ- ization of its employees. 6. Take the following affirmative action to effectuate the policies and purposes of the National Labor Relations Act : (a) Pay to the persons named in Appendix A2 attached hereto and made a part hereof, the sum of money set out after each employee's name in said appendix. It is understood and agreed that none of the persons named in Appendix A shall be entitled to reinstatement with the Respondent and Respondent shall at no time, now or hereafter, be required to reemploy any of the persons named in said Appendix A. (b) Pay to the persons named in Appendix B the sum of money set out after each employee's name in said appendix and place said persons on a preferred list and draw from that list when hiring employees, and the Respondent agrees that at all events said persons shall be employed by it within three months from the date of the order entered hereupon in the classification in which they were employed on the date of severance of their employment in the said corporation. (c) Pay to the persons named in Appendix C the amount of money set out after the names of said employees and place said persons upon a preferred list and draw from said list when hir- ing employees in the classification in which they were employed on the date of severance of their employment with said cor- poration. 2 Appendices A, B, C, and D referred to in the stipulation are not set forth here since they are identical with Appendices A, B, C, and D attached to our Order. BERNARD SCHWARTZ CIGAR CORPORATION 39 (d) Upon request enter into negotiations with United Cigar Workers Local Industrial Union, No. 24, as the exclusive repre- sentative of the employees described in the unit above and bargain and negotiate with said union so long as it represents a majority of Respondent's employees in accordance with the provisions of the National Labor Relations Act. (e) Notify the Regional Director of the National Labor Re- lations Board for the Seventh Region within a period of fifteen days after the entry of the order what steps have been taken to comply therewith. VII. In the event that an order of the Board is entered hereon, the respondent consents to the entry by any United States Cir- cuit Court of Appeals of a decree enforcing an order of the National Labor Relations Board in the above form and waives its right to contest any application by the National Labor Rela- tions Board for the entry of such a decree; and further waives any and all requirements of notice of the filing of such appli- cation by the National Labor Relations Board before any United States Circuit Court of Appeals. VIII. The Complaint in the above entitled cause shall be dismissed with prejudice as to the charges in respect to the persons listed in Appendix D attached hereto and made a part hereof. IX. It is understood and agreed that all charges, complaints and claims of every nature and description arising under the National Labor Relations Act, including claims for back pay, whether covered by the Complaint herein , as amended, or other- wise, up to and including the date hereof , of said United Cigar Workers Local Industrial Union, No. 24, of all of its present members and of all persons who may hereafter become members of said Union, against the Respondent, are hereby fully settled and composed. X. It is understood and agreed that in the event this stipula- tion is not approved by the Board, the provisions hereof shall be null and void, and shall be without prejudice to the respective claims of the parties hereto and the parties shall be relegated to the position they were in immediately prior to the execution hereof. On March 15 , 1939, the Board issued its order approving the above stipulation , making it a part of the record in the case , and trans- ferring the proceeding to the Board for the purpose of entry of a decision and order by the Board pursuant to the provisions of the stipulation. Upon the entire record in the case, the Board makes the following 40 DECISIONS OF NATIONAL LABOR RELATIONS BOARD FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The respondent, a Delaware corporation, engaged in the manu- facture and distribution of cigars, operates a plant in the city of Detroit, Michigan. During the period from March 13, 1938, to March 13, 1939, the respondent purchased raw materials in excess of $1,000,000, 89 per cent of which were obtained in States other than the State of Michigan. During this same period the respondent sold in excess of $1,500,000 worth of finished products, 19 per cent of which were sold or shipped to States other than the State of Michigan. We find that the above-described operations of the respondent constitute a continuous flow of trade, traffic, and commerce among the several States. ORDER Upon the basis of the above findings of fact, stipulation, and the entire record in the case, and pursuant to Section 10 (c) of the National Labor Relations Act, the National Labor Relations Board hereby orders that Bernard Schwartz Cigar Corporation, Detroit, Michigan, shall : 1. Desist from : (a) In any manner interfering with, restraining, or coercing its employees in the exercise of their rights to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection as guaranteed in Section 7 of the National Labor Relations Act; (b) Urging, persuading, and warning its employees to refrain from becoming or remaining members of United Cigar Workers Local Industrial Union, No. 24, or any other labor organization of its em- ployees' choosing and from threatening such employees with dis- charge and other reprisals if they become or remain members thereof; (c) Discouraging membership in the United Cigar Workers Local Industrial Union, No. 24, or any other labor organization of its em- ployees' choosing by discriminating in regard to hire and tenure of employment or other term or condition of employment; (d) Refusing to bargain collectively with the United Cigar Work- ers Local Industrial Union, No. 24, as the exclusive representative of the employees of the Bernard Schwartz Cigar Corporation, ex- cluding foremen, supervisory personnel, board members, superin- tendents, maintenance employees, clerical employees, and those em- BERNARD SCHWARTZ CIGAR CORPORATION 41 ployees engaged in the office, so long as said Union in fact represents a majority of the employees described above in accordance with the provisions of the National Labor Relations Act; (e) Dominating or interfering with the formation or administra- tion of any labor organization of its employees or contributing finan- cial or other support to any labor organization of its employees. 2. Take the following affirmative action, which the Board finds will effectuate the policies of the Act : (a) Pay to the persons named in Appendix A, attached hereto, and made a part hereof, the sum of money set out after each employee's name in said Appendix. It is understood and agreed that none of the persons named in Appendix A shall be entitled to reinstatement with the respondent and the respondent shall at no time, now or hereafter, be required to reemploy any of the persons named in said Appendix A; (b) Pay to the persons named in Appendix B, attached hereto, and made a part hereof, the sum of money set out after each em- ployee's name in said Appendix and place said persons on a pre- ferred list and draw from that list when hiring employees, and the respondent agrees that at all events said persons shall be employed by it within 3 months from the date of this Order in the classification in which they were employed on the date of severance of their employment with the respondent; (c) Pay to the persons named in Appendix C, attached hereto, and made a part hereof, the amount of money set out after the names of said employees and place said persons upon a preferred list and draw from said list when hiring employees in the classifica- tion in which they were employed on the date of severance of their employment with the respondent; (d) Upon request enter into negotiations with United Cigar Workers Local Industrial Union, No. 24, as the exclusive representa- tive of the employees described in the unit above and bargain and negotiate with said union so long as it represents a majority of the respondent's employees in accordance with the provisions of the National Labor Relations Act; (e) Notify the Regional Director of the National Labor Relations Board for the Seventh Region within a period of fifteen (15) days from the date of this Order what steps the respondent has taken to comply herewith. AND IT IS FURTHER ORDERED that the complaint, in so far as it per- tains to the cases of the persons listed in Appendix D, attached hereto and made a part hereof, be, and it hereby is, dismissed with prejudice. 42 APPENDIX A Name Amount Frances Losinski------------------------------------- $1,000.00 Josephine Motyka------------------------------------- 400.00 Marie Kotowski-------------------------------------- 200.00 Frances Niewiadomski-------------------------------- 200.00 Bruno Nastasich-------------------------------------- 75.00 Frank Ordakowski------------------------------------ 75.00 Theodore Lesky-------------------------------------- 1,000.00 Frank Turek----------------------------------------- 75.00 APPENDIX B Name Classification Amount Rose Smolinskl______________________________ Bunchmaker-Bouquets________________________ $50.00 Anna Jessup--------------------------------- Machine Examiner ______________________________ 75.00 Anna Podbielskl____________________________ Bunchmaker-Bouquets________________________ 100.00 Helen Frelich-------------------------------- Machine Wrapper Layer________________________ 75.00 Irene Dettloff------------------------------ Machine Wrapper Layer________________________ 75 00 Rose Rauchfleish____________________________ Roller-Babies---------------------------------- 75.00 Theresa Mrchalich__________________________ Bunchmaker-Babies--------------------------- 100.00 Genevieve Kowaleski________________________ Machine Wrapper Layer________________________ 75 00 Julia Allgayer------------------------------- Roller-Bouquets _______________________________ 50.00 Anna Romanski_____________________________ Wrapper Stripper------------------------------- 75.00 Alfreda Pawlicka____________________________ Machine Wrapper Layer________________________ 75.00 Natalie Rytel-------------------------------- Machine Wrapper Layer________________________ 50.00 Viola Wojcik-------------------------------- Stripper----------------------------------------- 625.00 Helen Byce---------------------------------- Machine Examiner______________________________ 50.00 Victoria Rosinski____________________________ Roller-Babies_______________________ ___________ 300.00 APPENDIX C Name Classification Amount Theresa Kurzawa____________________________ Bunchmaker-Bouquets________________________ $75.00 Mary Zepke-------------------------------- Bunchmaker-Babies--------------------------- 75.00 Jennie Polcyn------------------------------- Roller-Bouquets ------------------------------- 50.00 Mary Kowalski----------------------------- Roller-Panetelas _______________________________ 75.00 Mary Krause-------------------------------- Bunchmaker-Panetelas _ _______________________ 75.00 Mary Hallabrin----------------------------- Roller-Panetelas_______________________________ 50.00 Mary Maczka------------------------------- Stripper----------------------------------------- 75.00 Frances Kosh-------------------------------- Roller-Babies---------------------------------- 125.00 Bernice Tomazewski________________________ Roller-Babies---------------------------------- 125.00 Ella Daw ------------------------------------ Roller-Bouquets_______________________________ 50.00 Anna Cass---------------------------------- Roller-Panetelas _______________________________ 50.00 Angeline Wiech_____________________________ Machine Binder Layer__________________________ 50.00 APPENDIX D Leona Gniewkosky Helen Tranchida Irene Pienick Mary Moskwa Hattie Branecki Agnes Joniszewski Norbert Grobelski Stella Jaworska Helen Romanko DECISIONS OE` NATIONAL LABOR 11ELATIONS WA=