Joseph Freeman Shoe Co., Inc.

In the Matter of JosEPH FREEMAN SHOE Co., INC. and UNITED SHOE WORKERS OF AMERICA, AFFILIATED WITH THE C. I. O. and SOMERS- WORTH SHOE WORKERS' ASSOCIATION, PARTY TO THE CONTRACT Case No. C-1058.-Decided May 5, 1939 Shoe Manufacturing Industry-Settlement : stipulation providing for compli- ance with Act, including disestablishment of and abrogation of contract with com- pany-dominated union-Order: entered on stipulation. Mr. Edward Schneider, for the Board. Mr. Ben Law, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon charges filed by Frank Falzarano and amended charges filed by the United Shoe Workers of America, herein called the Union,'the National Labor Relations Board, herein called the Board, by the Regional Director for the First Region (Boston, Massachusetts) issued its complaint dated April 12, 1939, against the Joseph Freeman Shoe Co., Inc., Somersworth, New Hampshire, herein called the respondent, alleging that the respondent had engaged in and was engaging in un- fair labor practices affecting commerce within the meaning of Section 8 (1) and (2) and Section 2 (6) and (7) of the National Labor Rela- tions Act, 49 Stat. 449, herein called the Act. A copy of the complaint accompanied by notice of hearing was duly served upon the respond- ent, the United, and the Somersworth Shoe Workers' Association, herein called the Association. Concerning the unfair labor practices, the complaint alleged, in substance, that the respondent dominated and interfered with the ad- ministration of and gave financial and other support to, the Associa- tion, causing it among other things to enter into a certain contract with the respondent ; that the contract was and is illegal under the Act; that the respondent by 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. 12 N. L. R. B., No. 79. 720 JOSEPH FREEMAN SHOE CO., INC. 721 On April 13, 1939, a stipulation in settlement of the case was entered into by the respondent, the Association, the Union, and the Acting Regional Director of the Board. The aforesaid stipulation provides as follows : It is hereby stipulated and agreed by and between JOSEPH FREE- MAN 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 AMER- ICA, affiliated with the Congress of Industrial Organizations, 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 duly 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 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 Build- ing, Boston, Massachusetts. III. Respondent is and has been since October 24, 1934, a cor- poration organized under and existing by virture of the laws of the State of New Hampshire and is now and has continuously been engaged at a place of business in the City of Somersworth, County of Strafford, State of New Hampshire, hereinafter re- ferred to as the Plant, in the production, sale and distribution of women's novelty 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 manufactured 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. 722 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (1) Respondent's output (a) in terms of dollars for the fiscal year October 31,' 1937 to October 31, 1938 was eight hundred forty- five thousand twenty dollars and eighty-six cents ($845,020.86) ; and (b) in terms of numbers of pairs of shoes for the fiscal year October 31, 1937 to October 31, 1938 was six hundred ninety-nine thousand eight hundred ten (699,810) pairs. (2) The approximate amount in terms of raw materials used by Respondent during the fiscal year October 31, 1937 to October 31, 1938, in the manufacture of its finished products, was five hun- dred seventy nine thousand nine hundred two dollars and twenty- nine cents ($579,902.29). 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 admin- istration 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 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; JOSEPH FREEMAN SHOE CO., INC. 723 (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 employees for the purpose of dealing with Respondent concerning griev- ances, labor disputes, wages, rates of pay, hours of employment, and other conditions of employment, and completely disestab- lish 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 in the case, and transferring the proceeding to the Board for the purpose of entry of a decision and order by the Board. Upon the entire record in the case, the Board makes the following: FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The respondent is a New Hampshire corporation having its plant and principal place of business in Somersworth, New Hampshire, and engaging in the production, sale, and distribution of women's novelty shoes. During the fiscal year from October 31, 1937, to October 31, 169134-39-vol. 12-47 724 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 1938, the respondent used raw materials valued at $579,902.29, of which more than 50 per cent were purchased in and transported from States other than New Hampshire. During the same period more than 95 per cent of the respondent's finished products, valued at $845,020.86, were sold in States other than New Hampshire. 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, 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 Joseph Freeman Shoe Co., Inc., its officers, agents, successors, and assigns shall : 1. Cease and desist from : (a) In any manner dominating or interfering with the administra- tion of the Somersworth Shoe Workers' Association, or the forma- tion or administration of any other labor organization of its employees, or from contributing financial or other support to the said Associa- tion 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 Work- ers' Association as the representative of any of its employees for the purpose of dealing with respondent concerning grievances, labor dis- putes, wages, rates of pay, hours of employment, and other conditions of employment, and completely disestablish said Association as such representative; JOSEPH FREEMAN SHOE CO., INC. 725 (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.