International Shoe Company

In the Matter Of INTERNATIONAL SHOE COMPANY 'and ASSOCIATED SHOE & LEATHER WORKERS, LOCAL #1, AFFILIATED WITH NA- TIONAL FEDERATED INDEPENDENT UNION Case No. R-1406.-Decided August 26, 1939 Shoe Manufacturing Industry-Investigation of Representatives: controversy concerning representation of employees : rival organizations ; employer refuses to recognize either organization until certified by the Board-Unit Appropriate for Collective Bargaining: plant consists principally of two departments pro- ducing heels, and soles and counters, respectively ; sole and counter depart- ment has bargained collectively with Company in the past and is now covered by contract between the Company and the intervening union ; no reason shown why heel department cannot bargain effectively in a separate unit ; held, pro- duction employees in heel department constitute an appropriate unit; agree- ment by both unions that unit includes certain porters, matrons, an elevator operator,. and paste and lift servers-Election Ordered: eligibility to vote ex- tended to employees working during pay-roll period immediately prior to the date of Direction and to employees on leaves of absence or laid off for less than 6 months. Mr. David Y. Campbell, for the Board. Mr. Richard 0. Renner, of St. Louis, Mo., for the Company. Mr. Fred AS. Galloway, of Indianapolis, Ind., for the Associated. Mr. Morris J. Levin, of St. Louis, Mo., for the United. Elizabeth W. Weston,'of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF THE CASE On March 27, 1939, and on June 2, 1939, Associated Shoe & Leather Workers, Local #1, affiliated with National Federated Independent Union, herein called the Associated, filed with the Regional Director for the Fourteenth Region (St. Louis, Missouri) a petition and an amended petition, respectively, alleging that a question affecting commerce had arisen concerning the representation of employees of International Shoe Company, herein called the Company, at its heel and rand factories in St. Louis, Missouri, and requesting an investigation and certification of representatives pursuant to Sec- tion 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein 14 N. L. R. B., No. 86. 1140 INTERNATIONAL SHOE- COMPANY 1141 called the Act. On May 12, 1939, 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 in- vestigation and authorized the Regional Director to conduct it and to provide for an appropriate hearing upon due notice." On June 9, 1939, the Acting Regional Director issued a notice of hearing, copies of which were duly served upon the Company, the Associated, and upon Local 56A, United Shoe Workers of America, herein called the United, a labor organization claiming to represent employees directly affected by the investigation. Pursuant to the notice, a hearing was held on June 15, 1939, in St. Louis, Missouri, before. William P. Webb, the Trial Examiner designated by the Board. The Board, the Company, and the United were represented by counsel, and the Associated was represented by an authorized representative. All participated. in the hearing. Full opportunity to be-heard, to examine and cross-examine witnesses, and to intro- duce evidence bearing on the issues was afforded all parties. During the course of the hearing the Trial Examiner 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 1. THE BUSINESS OF THE COMPANY International Shoe Company is a Delaware corporation with its principal office in St. Louis, Missouri. It is engaged in the manu- facture and sale of leather, canvas, and rubber footwear. It oper- ates 45 shoe factories, situated in Missouri, Illinois, North Carolina, Pennsylvania, and New Hampshire; a rubber plant in Missouri; a cotton mill in Arkansas; various auxiliary or supply plants in Mis- souri and New Hampshire; and sales branches in New York City, Boston, Massachusetts, Manchester, New Hampshire, and in the State of Missouri. During its fiscal year ending November 30, 1938, the Company sold goods of a value in excess of $80,800,000. The operations of the heel and rand 2 factories in St. Louis, Mis- souri, herein called the heel and rand department, the employees of which are those involved in this proceeding, are conducted in two 1 This order was subsequently amended, as of May 12, 1939, to conform the designa. tions of the Associated and the Company to those used in the amended petition. 2 The rand, which is made from skivings from soles or counters, is a piece applied to the top of the heel where the heel fits on to the sole. The rand is attached to the heel before the latter is compressed. 1142 DECISIONS OF NATIONAL LABOR RELATIONS BOARD manufacturing plants, one located at Mississippi and Hickory Streets,' herein called the Hickory plant, and one located at Broadway and Cherokee Streets, herein called the Broadway plant. The Com- pany also operates in St. Louis a sole-leather department, producing soles and counters - for shoes. The two divisions of this department are located next to those of the heel and rand department, in separate buildings or sections of buildings in the Hickory and Broadway plants. The sole-leather and heel and rand departments in St. Louis supply soles, counters, and heels to the Company's shoe factories throughout the Middle West. The heel and rand department manufactures heels from leather scraps obtained from the sole-leather department. It also cases 3 these heels and other manufactured heels shipped to it from Hanni- bal, Missouri, and Chicago, Illinois. The leather used' by the sole- leather department, from which the heel and rand department ob- tains its scraps, is shipped to the sole-leather department in St. Louis from the Company's tanneries in Pennsylvania, North Carolina, and New Hampshire, and from independent tanneries located outside .the State of Missouri. The heels manufactured and cased by the heel and rand department are shipped to factories of the Company in Missouri, Illinois, and Kentucky. The only sales of any product of the heel and rand department made to outside concerns are sales of cutting residue which are made to a company located in Illinois. Finished shoes manufactured by the Company in its various factories are sold and distributed, principally through its warehouse in St. Louis, to merchants throughout the United States; over 90 per cent of such sales are made to merchants outside the State of Missouri. II. THE ORGANIZATIONS INVOLVED Associated Shoe & Leather Workers, Local #1, affiliated with Na- tional Federated Independent Union, is a labor organization admit- ting to its membership production employees of the Company in its heel and rand department. Local 56A, United Shoe Workers of America is a labor organiza- tion chartered by United Shoe Workers of America, which is affiliated with the Congress of Industrial Organizations. The United admits to its membership production and maintenance employees of the Company in its heel and rand and sole-leather departments, and em- ployees of the Company in a warehouse located at the Broadway plant.4 3 Casing is the operation of selecting heels . specified by order tickets which bear a description of the type and size of shoes to be made. 4 The United, which was chartered in February 1938, is a successor, in the Company's plants here involved , to Local 56, United Shoe Workers of America . The latter organi- zation ' is still in existence , and has members among . employees ' of the Company in `its factories in St . Louis other than those involved in this proceeding. INTERNATIONAL SHOE COMPANY III. THE QUESTION CONCERNING REPRESENTATION 1143 The United and its predecessor, Local 56, United Shoe Workers of America, have bargained collectively with the Company for its em- ployees in the sole-leather department since the fall of 1937. A con- tract affecting these employees was entered into by Local 56 5 and the Company in October 1937, to expire in November 1938. In October 1938, while negotiating a renewal of that contract, the United asked the Company to recognize it as the exclusive representative of the Company's employees in a bargaining unit comprising the heel and rand and sole-leather departments and the warehouse located at the Broadway plant. The Company objected to including these three departments in a single unit. The United and the Company then agreed that consent elections should be conducted among the employees in the sole-leather department and among those in the warehouse. In these elections the United was designated as bargaining representative by a majority of the employees in each department. Thereupon, the Company and the United entered into separate contracts covering the sole-leather employees and the warehouse employees. In these con- tracts the Company recognized the United as the exclusive represent- ative of its employees in each of these departments for purposes of collective bargaining. The contracts are in effect until December 1, 1939, and from year to,year thereafter unless terminated by either party's giving notice not less than 30 days prior to December 1 in any year. On or about February 6, 1939, the United asked the Company to recognize it as the bargaining representative of the employees in the heel and rand department. The Associated in January 1939 had similarly requested recognition.. On February 16, 1939, the Company informed both organizations that it could not accord exclusive recog- nition to either of them, in view of the conflicting claims, unless and until the Board should determine which organization represented the majority of the employees. We find that a question has arisen concerning representation of employees of the Company. IV. THE 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 5 After the United was chartered, in February 1938, it was agreed between the United and the Company that this contract should remain in effect during the remainder of its term. 190935-40-vol. 14-73 1144 DECISIONS Or NATIONAL. LABOR RELATIONS BOARD tends to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE APPROPRIATE UNIT The Associated and the Company contend that the employees of the heel and rand department constitute a unit appropriate for the purposes of collective bargaining. The United contends that the heel and rand and sole-leather, departments together constitute an ap- propriate unit but, in view of its contract with the Company covering the sole-leather department , it does not now press this contention.' There is nothing in the record to indicate that the employees in the heel and rand department cannot effectively bargain with the Com- pany in a separate unit. . Under these circumstances, we find that the employees of the Company in the heel and rand department consti- tute a unit appropriate for the purposes of collective bargaining. With respect to the classes of heel- and rand-department employees to be included , both unions claim that the unit should embrace all the production employees excluding clerical and supervisory em- ployees, but including certain employees at the Hickory plant whom the Company does not classify as production employees, namely, 15 or 20 porters, 2 matrons, an elevator operator, and 2 or 3 paste servers and lift servers who assist the heel builders. All these persons are carried on the heel - and rand-department pay roll, and work only in that department , unlike the maintenance employees and others at the Hickory plant who serve both the heel and rand and sole- leather departments . Both unions admit these non-productive workers in the heel and rand department to membership. We shall include them in the unit. We find that the production employees of the Company in the heel and rand department , excluding supervisory and clerical em- ployees, but including the porters , matrons, elevator operator, and paste and lift servers who are employed exclusively in the heel and rand department at the Hickory plant, constitute a unit appropriate for the purposes of collective bargaining , and that said unit will insure to 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 A list of the employees in the appropriate unit, compiled by the Company from its pay roll of June 10, 1939, is in evidence. This 9 Although the United had maintained , In October 1938, that the appropriate unit should include the warehouse employees as well as those in the heel and rand and sole- leather departments, it appeared at the hearing to have abandoned this contention for the reason that the warehouse employees handle finished shoes, whereas the employees in the other two departments are engaged in manufacturing component parts of shoes. INTERNATIONAL SHOE COMPANY 1145 list contains the names of 480 employees,' including 70 who, on June 10, were on leaves of absence or had been laid off for periods not exceeding 6 months. At the hearing, each union made a showing of substantial membership among the employees in the unit. We find that an election by secret ballot is necessary to resolve the question concerning representation. The United contends that only those employees actually working on the date - as of which eligibility to vote in the election is deter- mined should be permitted to vote for a bargaining representative. The Associated claims that in addition to employees actually work- ing, those laid off less than 6 months and those on leaves of absence should be eligible to vote. The Company regards such persons as its employees ; it expects to offer reemployment to those on leaves of absence 8 upon the expiration of the terms for which their leaves were granted; and it continues. group insurance and seniority rights for employees laid off less than 6 months and rehires them in prefer- ence to new employees. We find that the employees laid off for less than 6 months and those on leaves of absence have such a continuing interest in wages, hours, and other working conditions in the heel and rand department as to entitle them to participate in the choice of a bargaining representative. The Associated contends that eligibility to vote in the election should be determined as of the date when it first claimed to repre- sent a majority of the employees in the appropriate unit, on or about February 1, 1939. The United, with the concurrence of the Com- pany, contends that eligibility should be determined as of a date closer to that on which the election will be held. We see no reason why eligibility should not be determined as of the pay-roll period immediately prior to the date of the Direction of Election herein. We shall direct that the employees in the appropriate unit during the pay-roll period immediately prior to the date of the Direction of Election herein, including employees who did not work during such pay-roll period because they were ill or on vacation, employees who were then or have since been temporarily laid off, and employees 410 of these employees work at the Hickory plant ; 70 are at the Broadway plant. 8 Counsel for the Company explained at the hearing that leaves of absence are granted, in the discretion of the management , for illness or other reasons, and that they are usually limited to a comparatively short period , agreed upon when an employee applies for a leave. The list of employees as of June 10, 1939, shows that out of 16 employees on leave of absence, 13 were absent because of illness. Two have been on indefinite leave since October 18 , 1935, and November 18, 1937, respectively. One was granted a leave for which no reason is assigned , on May 23 , 1939. The Company does not grant leaves of absence or vacations with pay. 1146 DECISIONS OF NATIONAL LABOR RELATIONS BOARD on leaves of absence, and excluding those who have since quit or been discharged for cause, shall be eligible to vote in the election. 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 Shoe Company in its heel and rand department in St. Louis, Missouri, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the Act. 2. The production employees of the Company in its heel and rand department in St. Louis, excluding supervisory and clerical em- ployees and including the porters, matrons, elevator operator, and paste and lift servers who are employed exclusively in the heel and rand department at the Hickory plant, constitute a unit appropriate for the purposes of collective bargaining, within the meaning of Section 9 (a) of the 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 Relations Act, and pursuant to Article III, Section 8, of National Labor Relations Board Rules and Regulations-Series 2, it is hereby DIRECTED that, as part of the investigation ordered by the Board to ascertain representatives for the purposes of collective bargain- ing with International Shoe Company, St. Louis, Missouri, an elec- tion by secret ballot shall be conducted within fifteen ( 15) days from the date of this Direction, under the direction and super-. vision of the Regional Director for the Fourteenth Region, acting in this matter as agent for the National Labor Relations Board and subject to Article III, Section 9, of said Rules and Regulations, among the production employees of International Shoe Company in its heel and rand department at its Hickory and Broadway plants in St. Louis, who were employed by said Company during the pay- roll period immediately prior to the date of this Direction of Elec- tion, excluding supervisory and clerical employees and those who have since quit or been discharged for cause, but including the por- ters, matrons, elevator operator , and paste and lift servers who are employed exclusively in the heel and rand department at the Hickory plant, and including employees who did not work during such pay- roll period because they were ill or on vacation , employees who were INTERNATIONAL SHOE COMPANY 1147 then or have since been temporarily laid off, and employees on leaves of absence, to determine whether they desire to be represented by Associated Shoe & Leather Workers, Local #1, affiliated with Na- tional Federated Independent Union, or Local 56A United Shoe Workers of America, for the purposes of collective, bargaining, or by neither. M.R. EDWIN S. SMITH took no part in the consideration of the above Decision and Direction of Election.