Producers Cotton Oil Co.

In the Matter Of PRODUCERS COTTON OIL COMPANY, A CORPORATION and COTTONSEED AND VEGETABLE OIL WORKERS, No. 21946 and COTTON AND, FLAX PROCESSING WORKERS UNION, PARTY TO THE CONTRACT Case No. C-13012.-Deeided September 16, 19301 Cottonseed and Linseed Products Manufacturing industry-Settlement: stipu- lation providing for compliance with the Act, including disestablishment of and abrogation of contract with company-dominated union, abrogation of individual contracts of employment, and posting of notices-Order: entered on stipulation. Mr. Earle K. Shaave, for the Board. MoCuteheon, Olney, Manurwn & Greene, by Mr. Farnham P. Griffiths, of San Francisco, Calif., for the respondent. Mr. William C. Crossland, of Fresno, Calif., for the Cl. F. P. W. U. Mr. E. F. Prior, of Wilmington, Calif., for the Union. Mr. Ray Johnson, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon charges and amended charges duly filed by Cottonseed and Vegetable Oil Workers, No. 21946, herein called the Union, the Na- tional Labor Relations Board, herein called the Board, by the Regional Director for the Twentieth Region (San Francisco, California),. issued its complaint on June 24,1939, against Producers Cotton Oil Company, a corporation, Fresno, California, 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 Fr (1), (2), and (3) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. A copy of the com- plaint, notice of hearing thereon, and notice of postponement was duly served upon the respondent, the Union, and Cotton and Flax Proc- essing Workers Union, herein called the C. F. P. W. U., a labor organi- zation allegedly dominated and supported by the respondent. On July 5, 1939, the respondent and the C. F. P. W. U. filed their respec- tive answers to the complaint in which they admitted some of the allegations concerning the nature and scope of the respondent's busi- 15 N. L. R. B., No. 48. 470 PRODUCERS COTTON OIL COMPANY 471 ness but denied the allegation of unfair labor practices. On July 10, 1939, the C. F. P. W. U. filed a petition to intervene in the proceeding. On July 17, 1939, the respondent filed an application for a subpoena dives tecwna. The application was denied by the Regional Director without prejudice to the right to review the application before the Trial Examiner duly designated by the Board. Concerning the unfair labor practices, the complaint alleged in sub- stance that the respondent dominated and interfered with the C. F. P. W. U., by contributing financial support to and interfering with the administration of said organization, that respondent entered into an agreement with the C. F. P. W. U., which required as a condition of employment membership in the C. F. P. W. U., that the C. F. P. W. U. did not represent a majority of the respondent's employees at the date of the execution of said contract, or at any time, and that the respondent by the afore-mentioned activities and by urging, persuad- ing, and warning its employees to refrain from becoming or remaining members of the Union, and California State Council of Soap and Edible Oil Workers, affiliated with the American Federation of Labor, and Vegetable Oil Workers Union No. 21352-California, affiliated with the American Federation of Labor and with the California State Council of Soap and Edible Oil Workers, interfered with, restrained, and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act. On August 14, 1939, the respondent, the Union, the C. F. P. W. U., and counsel for the Board entered into a stipulation in settlement of ..the case. This stipulation provides as follows: STIPULATION IT IS HEREBY STIPULATED AND AGREED by and between Producers Cotton Oil Company, a corporation, hereinafter sometimes called the respondent, Cottonseed and Vegetable Oil Workers, No. 21946, hereinafter sometimes called Union No. 21946, Cotton and Flax Processing Workers Union, hereinafter sometimes ' called C. F. P. W. U., and Earle K. Shawe, Attorney, National Labor Relations Board, as follows : The respondent is a corporation existing under and by virtue of the laws of the State of California, having its principal office and place of business in the City of Fresno, County of Fresno, State of California, 'hereinafter called the Fresno Plant. Re- spondent is engaged at its Fresno Plant in the processing of cotton- seed and linseed -and the manufacture of various cottonseed and linseed products, and in the storing, sale and distribution thereof. 472 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The total cost of all raw materials used by the respondent during the fiscal year beginning, July 1, 1937, to June 1, 1938, amounted to approximately $2,015,546.43, of which amount approximately $73,- 468.00 represents the cost of raw materials purchased and trans- ported from without the State of California to the Fresno Plant. During the same period the respondent sold cotton and various cottonseed and linseed products amounting to approximately $2,212,628.97, of which amount approximately $638,223.52 repre- sents the value of goods which respondent sold and shipped to points outside the State of California. For the purpose of this proceeding, and not otherwise, the respondent stipulates to the above facts and admits that it is engaged in interstate commerce within the meaning of Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449. II 1. California State Council of Soap and Edible Oil Workers, affiliated with the American Federation of Labor, is a labor or- ganization within the meaning of Section 2, subdivision (5) of the Act. 2. Vegetable Oil Workers Union No. 21352-California, affili- ated with the American Federation of Labor and with the Cali- fornia State Councillof Soap and Edible Oil Workers, is or was a labor organization within the meaning of Section 2, subdivision (5) of the Act. 3. Cottonseed and Vegetable Oil Workers Union No. 21946, affiliated with the American Federation of Labor and with the California State Council of Soap and Edible Oil Workers, is a labor organization within the meaning of Section 2, subdivision (5) of the Act. 4. Cotton and Flax Processing Workers Union is a labor or- ganization within the meaning of Section 2, Subdivision (5) of the Act. III All the parties hereto waive their right to a hearing and to the making of findings of fact'and conclusions by the National Labor Relations Board in the above-named proceeding, and agree that the formal papers in this proceeding, including the charges, com- plaint and notice of hearing, affidavit of service of the complaint,, the answer of the respondent therein, the answer and the petition for intervention of the C. F. P. W. U.) a copy of the Rules and Regulations of the National Labor Relations Board, and this stip- ulation shall constitute the entire record in. this case, and shall dispense with the necessity for said hearing already provided for PRODUCERS COTTON OIL COMPANY 473 in the complaint and notice of hearing issued herein. This waiver and agreement is conditioned upon approval of this stipulation by the National Labor Relations Board. ' IV Without admitting that the unfair labor practices alleged in the complaint or referred to in the form of order set forth below have been committed by or affecting any of the parties hereto, and expressly on the understanding that nothing contained in this stip- ulation or in the Order entered by the Board shall be construed as an admission, express or implied, that any such unfair labor practices have been committed' by or affecting. any of the parties hereto, the parties join in this stipulation to the end that the above matter may be amicably settled. Therefore, to this end, upon the record herein, and upon this stipulation, if and when approved by the National Labor Relations Board, an order may forthwith be entered by said Board providing as follows : 1. Respondent, Producers Cotton Oil Company, will cease and desist from: (a) In any manner interfering with, restraining or coercing its employees at its Fresno Plant 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 or warning its employees to refrain from becoming or remaining members of Vegetable Oil Workers Union No. 21352-California and Cottonseed and Vegetable Oil Workers Union No. 21946, affiliated with the American Federa- tion of Labor and with the California State Council of Soap and Edible Oil Workers, or of any other labor organization of its employees, and from threatening said employees with dis- charge or other reprisals if they become or remain members of the above described labor organizations or any other labor organization ; (c) Urging, persuading or warning, in any way, or in any manner influencing or attempting to influence its employees to form, join, assist or participate in, or not to form, join, assist or participate in, any labor organization, or in the manner or degree of such forming, joining, assisting or participating in, any labor organization; • ' (d) Giving effect to those certain contracts. of employment, designated "Conditions of Employment", which were signed and 474 DECISIONS OF NATIONAL LABOR RELATIONS BOARD executed with respondent by employees at its Fresno Plant on or about October 28, 1937, and renewed on or about July 1, 1938, and on or about January 1, 1939; (e) Dominating or interfering with the administration of the C. F: P. W. IT., dominating or interfering with the formation or administration of any other labor organization of its employees, or contributing financial or other support to the C. F. P. W. U., or to any other labor organization of its employees; (f) Giving effect to any and all contracts in existence between the respondent and the C. F. P. W. U.; (g) Recognizing the C. F. P. W. U. as the exclusive representa- tive of its employees. 2. Respondent, Producers Cotton Oil Company, shall take the following affirmative action in order to effectuate the policies of the National Labor Relations Act: (a) Withdraw all recognition from the C. F. P., W. U., as the representative of its employees at its Fresno Plant for the purpose of dealing with respondent concerning grievances, labor disputes, wages, rates of pay, hours of employment and other conditions of employment ; and disestablish the C. F. P. W. U. as such representative. (b) Inform personally in writing each and every one of its employees at the Fresno Plant that the respondent will cease and desist from giving effect in any manner to the agreement entered into on or about March 24, 1939, between respondent and the C. F. P. W. U. (c) Inform personally in writing each and every one of its em- ployees at the Fresno Plant who has entered into one of the in- dividual contracts of employment, above referred to and desig- nated as "Conditions of Employment", that respondent will cease and desist from giving effect in any manner to said contract. (d) Post immediately, in conspicuous places throughout its Fresno Plant, and maintain for a period of at least sixty (60) days, notices stating that : (1) Producers Cotton Oil Company will cease and desist in the manner aforesaid as set forth in Paragraphs IV 1 (a), (b), (c), (d), (e), (f) and (g). (2) Employees of Producers Cotton Oil Company at its Fresno Plant have the right to self-organization, and are free to form, join, or assist labor organizations, to bargain collectively with the Producers Cotton Oil Company through representatives of their own, choosing, and to engage in concerted. activities, for the purpose of collective bargaining with Producers Cotton Oil Company or for other mutual aid or protection. , PRODUCERS COTTON OIL COMPANY 475 (3) Producers Cotton Oil Company has withdrawn all recogni- tion from the Cotton and Flax Processing Workers Union as the representative of its employees for the purpose of dealing with the Producers Cotton Oil Company concerning grievances, labor disputes, 'Wages, rates of pay, hours of employment,.and other conditions of employment, and that the said Cotton and Flax Processing Workers Union is disestablished as such representa- tive. (4) That the agreement entered into on or about March 24, 1939, between the Producers Cotton Oil Company and the Cot- ton and Flax Processing Workers Union has, under this order, been abrogated and is null and void. (P) Individual contracts of employment designated as "Con- ditions of Employment" entered into between the Producers Cot- ton Oil Company and its employees have been, under this order, abrogated and are no longer in effect. '(e) Notify the Regional Director for the Twentieth Region of the National Labor Relations Board within ten (10) days of the .service of this order, by detailed report in writing, of the manner .and form in which respondent has complied with the said order. V It is further stipulated and agreed that after the entry of the order by the National Labor, Relations Board, as provided in this stipulation, there may be entered in the United States Circuit !Court of Appeals for the Ninth Circuit a decree by said Court enforcing in full the said order of the National Labor Relations Boa.rd, and each of the parties hereto hereby consents to the entry .of such decree, and hereby waives prior notice thereof. VI It is further stipulated and agreed that the entire agreement among the parties hereto , as recited above and as their signatures appear below, is contained within the terms of this stipulation, and there is no agreement, verbal or, otherwise , of any nature which varies, alters or adds to this stipulation. VII It is expressly understood and agreed that this stipulation is subject to the approval of the National Labor Relations Board. In the event that the National Labor Relations Board does not approve this Stipulation, it shall be null and void and neither this stipulation nor anything therein contained may be used as an admission or otherwise for or against any parties hereto. 476 DECISIONS OF NATIONAL LABOR RELATIONS BOARD On August 23, 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 Producers Cotton Oil Company, a California corporation, has its- principal office and place of business in Fresno, California. The respondent is engaged in the processing of cottonseed and linseed and the manufacture of various cottonseed and linseed products, and in the storing, sale, and distribution thereof. The total cost of raw materials used by the respondent during the fiscal year ending June 30, 1938, amounted to approximately $2,015,- 546.43, of which amount approximately $73,468.00 represented the cost of raw materials purchased and transported from without the State of California. The sales of the respondent during the same period were approximately $2,212,628.97, of which amount $638,223.52 rep- resented the value of goods which the respondent sold and shipped to points outside the State of California. The respondent admits that it is engaged in interstate commerce within the meaning of the Act. 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 and 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: 1. Respondent, Producers Cotton Oil Company, will cease and. desist from : (a) In any manner interfering with, restraining or coercing its employees at its Fresno Plant 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; PRODUCERS COTTON - OTL COMPA\ S: ' 477 (b) Urging, persuading or warning its employees to refrain from becoming or remaining members of Vegetable Oil Workers Union No. 21352-California and Cottonseed and Vegetable Oil Workers Union No. 21946, affiliated with the American Federation of Labor and with the California State Council of Soap and Edible Oil Work- ers, or of any other labor organization of its employees, and from threatening said employees with discharge or other reprisals if they become or remain members of the above described labor organizations .or any other labor organization; (c) Urging, persuading or earning, in any way, or in any manner influencing or attempting to influence its employees to form, join, :assist or participate in, or not to form, join, assist or participate in, .any labor organization, or in the manner or degree of such forming, joining, assisting or participating in, any labor organization; (d) Giving effect to those certain contracts of employment, desig- nated "Conditions of Employment,"' which were signed and executed with respondent by employees at its Fresno Plant on or about Octo- ber 28, 1937, and renewed on or about July 1, 1938,.and on or about .January 1, 1939; (cl) Dominating or interfering with the administration of the -C. F. P. W. U., dominating or interfering with the formation or .administration of any other labor organization of its employees, or .contributing financial or other support to the C. F. P. W. U., or to any other labor organization of its employees; (f) Giving effect to any and all contracts in existence between the respondent and the C. F. P. W. U.; (g) Recognizing the 'C. F. P. W. U. as the exclusive representa- tive of its employees. 2. Respondent, Producers Cotton Oil Company, shall take the fol- lowing affirmative action in order to effectuate the policies of 'the .National Labor Relations Act : (a) Withdraw all recognition from the C. F. P. W. U., as the -representative-of its employees at its Fresno Plant for the purpose of dealing with respondent concerning grievances, labor disputes, wages, rates of pay, hours of employment and other condi- tions of employment; and disestablish the C. F. P. W. U. as such .r'epresentative; (b) Inform personally in writing each and every one of its em- ployees at the Fresno Plant that the respondent will cease and desist from giving effect in any manner to the agreement entered into on -or about March 24, 1939, between respondent and the C. F. P. W. U., (c) Inform personally in writing each and every one of its em- ployees at the Fresno Plant who has entered into one of the indi- vidual contracts of employment, above referred to and designated as 478 DECISIONS OF NATIONAL LABOR RELATIONS BOARD "Conditions of Employment," that respondent will cease and, desist from giving effect in any manner to said contract; (d) Post immediately, in conspicuous places throughout its Fresrim Plant, and maintain for a period of at least sixty (60) days, notices stating that c (1) Producers Cotton Oil Company will cease and desist in the manner aforesaid as set forth in paragraphs 1 (a), (b), (c), (d), (e), (f), and (g). (2) Employees of. Producers Cotton Oil Company at its Fresno. Plant have the right to self-organization, and are free to form; join, or assist labor organizations, to bargain collectively with the Pro- ducers Cotton Oil Company through. representatives of their own choosing, and to engage in concerted activities, for the purpose of collective bargaining with Producers Cotton Oil Company or for other mutual aid or protection. (3) Producers Cotton Oil Company has withdrawn all recognition from the Cotton and Flax Processing Workers Union as the repre- sentative of its employees for the purpose of dealing with the Pro- ducers Cotton Oil Company concerning grievances, labor disputes, wages, rates of pay, hours of employment, and other conditions of employment; and that the said Cotton and Flax Processing Workers Union is disestablished as such representative. (4) That the agreement entered into on or about March 24, 1939, between the Producers Cotton Oil Company and the Cotton and Flax Processing Workers Union has, under this order; been abrogated .and is null and void. (5) Individual contracts of employment designated as "Conditions of Employment" entered into between the Producers Cotton Oil Company and its employees have been, under this order, abrogated and are no longer in effect. (e) Notify the Regional Director for the Twentieth Region of the National Labor Relations Board within ten (10) days of the service of this order, by detailed report in writing, of the manner and form in which respondent has complied with the said order.