Somersworth Shoe Co., Inc.

In the Matter of SOMERSWORTH SHOE Co., INC. and UNITED SHOE WORKERS OF AMERICA, AFFILIATED WITH THE C. I. O. and SOMERSWORTH SHOE WORKERS' ASSOCIATION, PARTY TO THE CONTRACT Case No. C-1259.-Decided May 3, 1939 Shoe Manufacturing Industry-Settlement: stipulation providing for com- pliance with the Act, including disestablishment of and abrogation of contract with company-dominated union-Order: entered on stipulation. Mr. Edward Schneider, for the Board. Mr. F. Hamilton Seeley, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon charges and amended charges duly filed by United Shoe Workers of America, affiliated with the Congress of Industrial Organizations, herein called the Union, the National Labor Rela- tions Board, herein called the Board, by the Acting Regional Di- rector for the First Region (Boston, Massachusetts), issued its com- plaint dated April 12, 1939, against the Somersworth Shoe Co., Inc., Somersworth, New Hampshire, 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) and (2) 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 notice of hearing thereon were duly served upon the respondent, the Union, and upon the Somersworth Shoe Workers' Association, herein called the Association, a labor organization allegedly dominated and supported by the respondent. Concerning the unfair labor practices, the complaint alleged, in substance, that the respondent dominated and interfered with the administration of, and gave financial and other support to, the As- sociation; that a certain contract between the Association and the respondent was and is illegal under the Act; that the respondent by 12 N. L. R. B., No. 74. 634 SOMERSWORTH SHOE CO., INC. 635 the above-mentioned activities, and by other acts, interfered with, restrained, and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act. On April 13, 1939, the respondent, the Union, the Association, and the Acting Regional Director of the Board entered into a stipulation in settlement of the case. This stipulation provides as follows : It is hereby stipulated and agreed by and between SoMERS- WORTH SHOE Co., INC., hereinafter referred to as the Respondent, the SOMERSWORTH SHOE WORKERS' ASSOCIATION, hereinafter re- ferred to as the Association, the UNITED SHOE WORKERS OF AMERICA, affiliated with the Congress of Industrial Organiza- tions, hereinafter referred to as the Union, and Edward Schneider, Acting Regional Director for the First Region of the National Labor Relations Board, that : I. Upon an Amended Charge filed by the Union, the National Labor Relations Board, by Edward Schneider, Acting Regional Director for the First Region (Boston, Massachusetts), acting pursuant to authority granted in Section 10 (b) of the National Labor Relations Act, 49 Stat. 449, hereinafter referred to as the Act, and acting pursuant to its Rules and Regulations-Series 1, as amended, Article IV, Section 1, issued its Complaint and Notice of Hearing on April 12, 1939, against the Respondent. II. A copy of the Amended Charge, Complaint and Notice of Hearing thereon, and the National Labor Relations Board Rules and Regulations-Series 1, as amended, were duly served upon the Respondent, the Association, and the Union on April 13, 1939, said hearing being scheduled for April 24, 1939, at 10: 00 A. M., in Court Room 4, Federal Building, Boston, Massachusetts. III. Respondent is and has been since November 22, 1934, a corporation organized under and existing by virtue of the laws of the State of New Hampshire and is now and has continu- ously been engaged at a place of business in the City of Somers- worth, County of Strafford, State of New Hampshire, herein- after referred to as the Plant, in the production, sale and distribution of women's shoes. IV. Respondent in the course and conduct of its business causes and has continuously caused more than fifty per cent (50%) of the raw materials used in the manufacture of its finished products to be purchased and transported in interstate commerce from and through states of the United States other than the State of New Hampshire to its Plant in the State of New Hampshire, and causes and has continuously caused more than ninety-five per cent (95%) of the finished products manu- 636 DECISIONS OF NATIONAL LABOR RELATIONS BOARD factured by it to be sold and transported in interstate commerce from its Plant in the State of New Hampshire to, into and through States of the United States other than the State of New Hampshire. (1) Respondent's output (a) in terms of dollars is approx- imately One million two hundred fifty thousand dollars ($1,250,000) yearly; and (b) in terms of bulk is approximately Seven hundred fifty thousand (750,000) pairs of shoes yearly. (2) The approximate dollar value of raw materials used yearly by Respondent in the manufacture of its finished products is Seven hundred thousand dollars ($700,000). V. Respondent is engaged in interstate commerce within the meaning of the National Labor Relations Act. VI. The Association is a labor organization within the mean- ing of Section 2, subdivision (5) of the said Act. VII. The Respondent, the Association, and the Union waive the right to a hearing as set forth in Sections 10 (b) and 10 (c) of the said Act, and the making of Findings of Fact and Con- clusions by the National Labor Relations Board. VIII. This stipulation together with the Amended Charge, Complaint and Notice of Hearing, and a copy of the National Labor Relations Board Rules and Regulations-Series 1, as amended, may be filed with the Chief Trial Examiner of the National Labor Relations Board at Washington, D. C. IX. It is further stipulated that upon the Amended Charge, the Complaint, and upon this Stipulation, if approved by the National Labor Relations Board, an Order may forthwith be entered by said Board and by the appropriate Circuit Court of Appeals as follows : 1. Respondent, its officers, agents, successors and assigns shall cease and desist from : (a) In any manner dominating or interfering with the ad- ministration of the Somersworth Shoe Workers' Association, or the formation or administration of any other labor organization of its employees, or from contributing financial or other support to the said Association or to any other labor organization of its employees; (b) In any manner interfering with, restraining or coercing its employees in the exercise of their right to self-organization, to form, join or assist labor organizations, to bargain collec- tively through representatives of their own choosing, and to engage in concerted activities for the purpose of collective bar- gaining or other mutual aid or protection as guaranteed in Sec- 4on 7 -of the National Labor Relations Act; SOMERSWORTH SHOE CO., INC. 637 (c) Giving effect to its contract of November 26, 1934, and to any extensions or renewals thereof, with the Somersworth Shoe Workers' Association; (d) Making any deduction or deductions from the wages of its employees pursuant to the contract of November 26, 1934, and any extensions or renewals thereof, or for any of the purposes stated therein. 2. Respondent, its officers, agents, successors and assigns shall take the following affirmative action to effectuate the policies of the Act: (a) Withdraw all recognition from the Somersworth Shoe Workers' Association as the representative of any of its em- ployees for the purpose of dealing with Respondent concerning grievances, labor disputes, wages, rates of pay, hours of employ- ment, and other conditions of employment, and completely disestablish said Association as such representative; (b) Post notices at its Plant stating that (1) the Respondent will cease and desist as aforesaid, (2) that the Respondent with- draws and will refrain from all recognition of the Somersworth Shoe Workers' Association as the representative of any of its employees, and (3) that the Respondent completely disestab- lishes said Somersworth Shoe Workers' Association as such representative; (c) Maintain such notices, posted in conspicuous places in its Plant, for a period of at least sixty (60) consecutive days from the date of posting. X. The Respondent, the Association, and the Union waive their rights to contest the entry of any such decree and their right to receive notice of the filing of an application for the entry of such decree, in the form set forth above. On April 21, 1939, the Board issued its order approving the above stipulation, making it part of the record, and transferring the pro- ceeding to the Board for the purpose of entry of a decision and order by the Board. Upon the above stipulation and the entire record in the case, the Board makes the following : FINDINGS OF FACT I. THE BUSINESS OF THE RESPONDENT The respondent is a New Hampshire corporation having its prin- cipal office and place of business in the city of Somersworth, New Hampshire. It is engaged in the production , sale, and distribution 638 DECISIONS OF NATIONAL LABOR RELATIONS BOARD of women's shoes. The raw materials used by the respondent each year are valued at approximately $700,000. Over 50 per cent of these materials are purchased outside of the State of New Hampshire. The respondent annually produces approximately 750,000 pairs of shoes valued at approximately $1,250,000, over 95 per cent being sold and transported outside the State of New Hampshire. We find that the above-described operations constitute a continu- ous 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 Somersworth Shoe Co., Inc., Somersworth, New Hampshire, its officers, agents, successors, and assigns shall: 1. Cease and desist from : (a) In any manner dominating or interfering with the adminis- tration of the Somersworth Shoe Workers' Association, or the forma- tion or administration of any other labor organization of its em- ployees, or from contributing financial or other support to the said Association or to any other labor organization of its employees; (b) In any manner interfering with, restraining, or coercing its employees in the exercise of their right 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; (c) Giving effect to its contract of November 26, 1934, and to any extensions or renewals thereof, with the Somersworth Shoe Workers' Association; (d) Making any deduction or deductions from the wages of its employees pursuant to the contract of November 26, 1934, and any extensions or renewals thereof, or for any of the purposes stated therein. 2. Take the following affirmative action to effectuate the policies of the Act : (a) Withdraw all recognition from the Somersworth Shoe Workers' Association as the representative of any of its employees for the purpose of dealing with respondent concerning grievances, labor disputes, wages, rates of pay, hours of employment, and other conditions of employment, and completely disestablish said Associa- tion as such representative; SOME, RSWORTH SHOE CO., INC. 639 (b) Post notices at its plant stating that (1) the respondent will cease and desist as aforesaid, (2) that the respondent withdraws and will refrain from all recognition of the Somersworth Shoe Workers' Association as the representative of any of its employees, and (3) that the respondent completely disestablishes said Somersworth Shoe Workers' Association as such representative; (c) Maintain such notices, posted in conspicuous places in its -plant, for a period of at least sixty (60) consecutive days from the date of posting.