Clinton Garment Company and R. & M. Kaufmann, Inc.

In the Matter Of CLINTON GARMENT COMPANY AND R. & M. KAuF- MANN5 INC. and INTERNATIONAL LADIES' GARMENT WORKERS' UNION Case No. C-1217.Decided April 20,1939 Ladies Garment Manufacturing Industry-Settlement : stipulation providing for compliance with the Act : including reinstatement with back pay as to one person ; back pay without reinstatement as to one person-Order: entered on stipulation. Mr. Lee Loevinger, for the Board. Mr. Erwin Feldman, of New York City, for the respondents. Mr. Harold W. Schwartz, of Chicago, Ill., 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 International Ladies' Garment Workers' Union, herein called the Union, the Na- tional Labor Relations Board, herein called the Board, by the Re- gional Director for the Eighteenth Region (Minneapolis, Minnesota), issued its complaint dated January 25, 1938, against Clinton Garment Company, Clinton, Iowa, and R. & M. Kaufmann, Inc., Aurora, Illi- nois, alleging that the respondents had engaged in and are engaging in unfair labor practices affecting commerce within the meaning of Section 8 (1) and (3) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. Copies of the complaint and notice of hearing thereon were duly served upon the respondents and the Union. The respondents filed an answer to the complaint. With respect to the unfair labor practices, the complaint alleged in substance : that the respondents, in the operation of their plant at Clinton, Iowa, discharged and refused to reinstate two named em- ployees for the reason that they joined and assisted the Union and engaged in concerted activities for the purpose of collective bargain- ing and other mutual aid and protection; that the respondents, by 12 N. L. R. B., No. 45. 354 CLINTON GARMENT COMPANY 355 posting and permitting the posting of printed and written documents upon plant property, advised, urged, directed, and warned its em- ployees to refrain from becoming or remaining members of the Union; that the respondents advised, urged, directed, and warned labor leaders within the City of Clinton, Iowa, to refrain from accepting or soliciting employees of the respondents as members of the Union; and that by the above acts and other acts, the respondents interfered with, restrained, and coerced their employees in the exer- cise of the right guaranteed in Section 7 of the Act. Pursuant to notice, a hearing was held at Clinton, Iowa, on Febru- ary 16 and 17, 1939, before Madison Hill, the Trial Examiner duly designated by the Board, at which the Board and the Union were represented by counsel, and participated in the hearing. The respond- ents, by their representative, appeared specially for the purpose of seeking a continuance of the hearing. On February 17, 1939, the respondents' motion for a continuance of the hearing until March 6, 1939, was granted and the hearing was adjourned. On March 3, 1939, the respondents, the Union, and counsel for the Board entered into a stipulation in settlement of the case, subject to the approval of the Board. This settlement stipulation provides as follows : It having been heretofore charged by the International Ladies' Garment Workers Union that the respondents, Clinton Garment Company, a corporation, and R. & M. Kaufmann, Inc., a corpo- ration, have engaged in unfair labor practices within the mean- ing of the National Labor Relations Act, 49 Stat. 449, and the National Labor Relations Board, through the Regional Director for the 18th Region, having heretofore issued and served upon the parties hereto a complaint setting forth said charges, and pursuant to said complaint and the notice of hearing contained therein, a hearing having been convened to hear evidence upon, the charges contained in said complaint on February 16 and February 17, 1939, and upon the request of the respondents herein said hearing having been continued until March 6, 1939, and it being the desire of all the parties hereto to dispose of this proceeding without the holding of a hearing upon the allegations of said complaint, accordingly it is hereby stipulated and agreed by and between all of the parties to the above entitled proceeding that : 1. The official transcript of the hearing hereinabove referred to and the exhibits offered at such hearing shall be considered as a part of this stipulation as fully as though specifically set forth herein. The stipulation or statement regarding the business of the respondent companies attached hereto and made a part 169134-39-vol 12-24 356 DECISIONS OF NATIONAL LABOR RELATIONS BOARD hereof, and marked Board's Exhibit 3,' shall be considered as a part of this stipulation as fully as though specifically set forth herein. 2. All parties hereto expressly waive the right to any further hearing upon the charges contained in the complaint heretofore referred to, and further expressly waive the right to offer evi- dence upon such charges, the right to an intermediate report by a trial examiner, and the right to the making of findings of fact and conclusions of law by the Board. 3. All parties hereto hereby consent to the issuance of an order, in the terms and form stated below, by the National Labor Re- lations Board and to the entry of an appropriate decree by an appropriate Circuit Court of Appeals upon said order : ORDER Upon the basis of the stipulation entered into herein, and pursuant to Section 10 (c) of the National Labor Relations Act, the National Labor Relations Board hereby orders that the re- spondents, Clinton Garment Company and R. & M. Kaufmann, Inc., shall: 1. Cease and desist from : a. Discouraging membership in any labor organization of its employees by discharging or refusing to reinstate any of its employees, or in any manner discriminating in regard to their hire and tenure of employment or any term or condition of employment; b. In any other manner interfering with, restraining, or coerc- ing its employees in the exercise of the right to self-organization, to form, join or assist labor organizations, to bargain collectively through representatives of their own choosing, or to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection as guaranteed in Section 7 of the Act. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act : a. Offer to Fannie Riley immediate and full reinstatement to the position which she formerly held with the respondents on August 27, 1938, without prejudice to her seniority and other rights and privileges; b. Make whole said Fannie Riley and Marion Bergemann for any loss of pay which they suffered by reason of the respondents' refusal to employ them by payment to said Fannie Riley of the ' This exhibit is omitted here because the pertinent facts related therein are set forth in our findings of fact, Section I, infra. CLINTON GARMENT COMPANY 357 sum of $165.00 and by payment to said Marion Bergemann of the sum of $125.00. c. Post immediately and keep posted for a period of at least sixty (60) consecutive days from the date of posting, a notice to their employees in conspicuous places at the plant in Clinton, Iowa, stating that respondents will cease and desist in the manner set forth in Paragraph 1 of this order; d. Notify the Regional Director for the Eighteenth Region in writing within ten (10) days from the date of this order what steps the respondents have taken to comply herewith. 4. Marion Bergemann does not desire and therefore will not be given reinstatement to her job in the Clinton plant. 5. It is further agreed that no further charges shall be filed against the Clinton Garment Company and R. & M. Kaufmann, Inc., respondents herein, because of any acts done or alleged to have been done prior to the date of signing this agreement. 6. This stipulation shall become effective upon approval by the National Labor Relations Board and notification of such approval to the parties hereto, and this stipulation shall be of no effect whatsoever unless and until such approval is given. On March 20, 1939, the Board issued its order approving the above settlement stipulation, making it a part of the record, and transfer- ring the proceeding to the Board for the purpose of entry of a decision and order by the Board. Upon the stipulation and the entire record in the case, the Board makes the following : FINDINGS OF FACT I. THE BUSINESS OF THE RESPONDENTS The respondent, Clinton Garment Company, is an Iowa corpora- tion, with its only office and plant located at Clinton, Iowa. The re- spondent, R. & M. Kaufmann, Inc., is an Illinois corporation, with its principal office located in Chicago, Illinois, and its only plant located in Aurora, Illinois. The same persons are the directors and stockholders of both corporations. The treasurer of Clinton Garment Company is the secretary of R. & M. Kaufmann, Inc., and the secretary of Clinton Garment Company is the treasurer of R. & M. Kaufmann, Inc. This case is concerned with the operation of Clinton Garment Company at its plant in Clinton, Iowa. The Clinton Garment Company is engaged in the manufacture of ladies' outer garments such as house dresses, smocks, and hooverettes. It is a contracting plant manufacturing garments as contractors of R. & M. Kaufmann, Inc. There are no written agreements or licensing 358 DECISIONS OF NATIONAL LABOR RELATIONS BOARD agreements between the Clinton Garment Company and R. & M. Kaufmann, Inc. The Clinton Garment Company neither owns nor sells any merchandise. Accordingly, there is no passage of title between the respondents since ownership of the finished and unfin- ished product is always in R. & M. Kaufmann, Inc. The Clinton Garment Company has used none of its own materials during the last fiscal year in the operation of the Clinton plant. The materials used in the Clinton plant were materials owned and purchased by R. & M. Kaufmann, Inc. These materials were shipped to the plant by order of R. & M. Kaufmann, Inc., from the different finishing plants located mainly in the eastern and southern parts of the United States. All of the materials used by the Clinton Garment Company were shipped to R. & M. Kaufmann, Inc., % Clinton Garment Com- pany, from outside the State of Iowa. The Clinton Garment Company produced approximately 48,000 dozens of garments during the last fiscal year. Approximately 75 per cent of the finished garments were shipped to R. & M. Kaufmann, Inc., in Aurora, Illinois, and were then shipped by R. & M. Kaufmann, Inc., to almost every State, pursuant to sales placed with them. The remaining 25 per cent were shipped by R. & M. Kaufmann, Inc., as consignor, to other accounts outside the State of Iowa as consignees. We find that the above-described operations constitute a continuous flow of trade, traffic, and commerce among the several States. ORDER Upon the basis of the above findings of fact, the 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 the respondents, Clinton Garment Company and R. & M. Kaufmann, Inc., shall : 1. Cease and desist from : (a) Discouraging membership in any labor organization of its employees by discharging or refusing to reinstate any of its em- ployees, or in any manner discriminating in regard to their hire and tenure of employment, or any term or condition of employment; (b) In any other manner interfering with, restraining, or coercing its employees in the exercise of the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, or to engage in concerted ac- tivities for the purpose of collective bargaining, or other mutual aid or protection as guaranteed in Section 7 of the Act. CLINTON GARMENT COMPANY 359 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act : (a) Offer to Fannie Riley immediate and full reinstatement to the position which she formerly held with the respondents on August 27, 1938, without prejudice to her seniority and other rights and privileges; (b) Make whole said Fannie Riley and Marion Bergemann for any loss of pay which they suffered by reason of the respondents' refusal to employ them by payment to said Fannie Riley of the stun of $165 and by payment to.said Marion Bergemann of the sum of $125; (c) Post immediately and keep posted for a period of at least sixty (60) consecutive days from the date of posting, a notice to their employees in conspicuous places at the plant in Clinton, Iowa, stating that respondents will cease and desist in the manner set forth in paragraph 1 of this Order; (d) Notify the Regional Director for the Eighteenth Region in writing within ten (10) days from the date of this Order what steps the respondents have taken to comply herewith.