Reynolds Spring Co.

In the Matter Of REYNOLDS 'SPRING COMPANY, A CORPORATION and LOCAL 62, INTERNATIONAL UNION, UNITED AUTOMOBILE WORKERS OF AMERICA Cases Nos. C-1329 and R-1134.-Decided September 07, 1939 Spring Manufacturiang Ii dustry-Settlement : stipulation providing for com- pliance with the Act, including disestablishment of company -dominated union, reinstatement without back pay as to two persons, and recognition of petitioning union-Order : entered on stipulation-Investigation of Representatives: petition for, dismissed. Mr. Frank H. Bowen, Mr. Harold A. Crane field, and Mr. Charles M. Ryan, for the Board. Bisbee, McKone, Badgley, d Kendall, by Mr. M. F. Badgley, Mr. Don T. McKone, and Mr. W. K. MoInally, of Jackson, Mich., for the respondent. Mr. Lester Washburn, of Lansing, Mich., for the Union. Mr. Ray Johnson, of counsel to the Board. Q DECISION AND ORDER STATEMENT OF THE CASE On August 11, 1938, Local 62, International Union, United Auto- mobile Workers of America, herein called the Union, filed with the Regional Director for the Seventh Region (Detroit, Michigan) charges, and on December 28, 1938; amended charges alleging that Reynolds Spring Company, a corporation; Jackson, Michigan, herein called the respondent, had engaged in and was engaging in unfair labor practices affecting commerce within the meaning of Section 8 (1), (2), (3), and (5) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. .On November 30, 1938, the Union filed with the same Regional Director a petition alleging that a question affecting commerce had arisen concerning the representation, of employees of the respondent, and requesting an investigation and certification of representatives pursuant to Section 9 (c) of the Act. On December 10, 1938, the National Labor Relations Board, herein called the Board, acting pur- 15 NN. L. R. B., No. 75. 721 722 DECISIONS OF NATIONAL LABOR RELATIONS BOARD suant 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 investigation and authorized the Regional Director to conduct it and to, provide for an appropriate hearing upon due notice. On the same day, the Board, acting pursuant to Article II, Section 37 (b), and Article III, Section 10 (c) (2), of said Rules and Regu- lations, ordered that the representation case be consolidated for all purposes with the case involving the charges filed by the Union. Upon the charges and amended charges filed by the Union, the Board, by the Regional Director, issued its complaint dated January 3, 1939, against the respondent, alleging that the respondent had engaged in and was engaging in unfair labor practices affecting commerce within the meaning of Section 8 (1), (2), (3), and (5) and Section 2 (6) and (7) of the Act. Copies of the complaint, notice of the consolidated hearing, and notice of postponement of hearing were duly served upon the respond- ent, upon the Union, and upon the American Labor League, Unit No. 75,1 herein called the League, a labor organization allegedly domi- nated and supported by the respondent, and claiming to represent employees directly affected by the investigation. On March 14, 1939, the respondent filed its answer to the complaint in which it admitted certain of the allegations concerning the nature and scope of its business, but denied the allegations of unfair labor practices. Concerning the unfair labor practices,. the complaint alleged, in substance, that the respondent dominated and interfered with and contributed financial and other support to the League; that on vari- ous dates between January 1937 and May 1938, the respondent dis- charged, and since such dates refused to reinstate, four employees, Bernard Warner, Guy Lashwood, William T. Robbins, and Glen Whitaker, because they joined the Union and engaged. in concerted activities for the purposes of collective bargaining and other mutual aid and protection; and that on various dates between November 4 and December 12, 1938, the respondent refused to bargain with the Union as the exclusive representative of certain employees at its Jack - son Plant No. 1, although such employees constitute a unit appro- priate for the purposes of collective bargaining and had theretofore designated the Union as their representative for such purposes; and that the respondent by the afore-mentioned acts and refusals to act: and by keeping under surveillance its employees who were organizing for the purposes of collective bargaining, by engaging in espionage of the activities of suspected members of the Union, by attempting to coerce members of the Union to drop their membership, and by other 1 Designated American Labor League in the petition for investigation and certification. REYNOLDS SPRING COMPANY 723 acts, interfered with, restrained, and coerced its employees in the exercise of rights guaranteed in Section 7 of the Act. On May 9, 1939, the respondent, the Union, and counsel for the Board entered into a stipulation and on July 10, a supplementary stipulation in settlement of the case. The stipulation and supple- mentary stipulation provide as follows: STIPULATION Whereas the National Labor Relations Board, by Frank H. Bowen, its Regional Director for the Seventh Region, as its agent, on January 3, 1939, issued its complaint against the above named Reynolds Spring Company, hereinafter sometimes referred to as the respondent, wherein and whereby it was alleged that the respondent was and is engaging in certain unfair labor practices as defined in the National Labor Relations Act and in violation of Subsections (1), (2), (3), and (5) of Section 8 thereof, Whereas the respondent, Reynolds Spring Company, has filed its answer to the said complaint specifically denying each and every violation of the said Act and denying the commission of any unfair labor practices, and Whereas respondent, though maintaining its said denials, is desirous of avoiding litigation and it does not desire to contest the allegations of the said complaint, Whereas respondent did heretofore agree with said Local 62, International Union, United Automobile Workers of America, and with the said Regional Director to accept the determination of the Regional Director as to whether said Local 62 represents a majority of the employees of respondent in the unit described in Paragraph 12 of the said complaint, being the employees en- gaged at respondent's Plant No. 1 in the city of Jackson, Michi- gan, in production and as truck drivers, excepting supervisory and clerical employees, respondent waiving any right to be pres- ent or to participate in such determination other than by furnish- ing pay roll information required by the Regional Director, and Whereas the said Regional Director has caused to be compared under his direction and supervision a pay roll furnished by re- spondent showing the names of employees in the said unit during the pay period last preceding March 16, 1939, with membership records furnished by said Local 62 and has determined that said Local 62 is the duly authorized representative of a substantial majority of the employees in said unit, 724 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Now therefore respondent, Reynolds Spring Company; hereby stipulates and agrees, subject to the approval of the National Labor Relations Board, as follows : 1. The Reynolds Spring Company, respondent herein, is now and has been a corporation duly organized under and existing by virtue of the laws of the State of Delaware and is now and has been since 1912 admitted to do business in the State of Michigan, having its principal office and place of business in the City of Jackson, County of Jackson, State of Michigan, and is now and has been continuously engaged at a place of business in the City of Jackson, County of Jackson, State of Michigan, hereinafter called the Jackson Plant No. 1, in the manufacture, sale and dis- tribution of cushion springs, trim rails and molded plastic parts. 2. The raw materials used in the manufacturing operations of the respondent at its Jackson Plant No. 1 are high carbon spring wire, strip steel, burlap, cotton sheeting, fiber board, paper cord, and synthetic molding compounds. During the year ending De- cember 31, 1938, the total cost of said raw materials used at the Jackson Plant No. 1 ,amounted to approximately $700,000.00,-that the total dollar value of raw materials shipped to the Jackson Plant No. 1 from points and places outside the State of Michigan was approximately $626,919.00. During the year ending Decem- ber 31, 1938, the output of finished products of the Reynolds Spring Company at its Jackson Plant No. 1 in the terms of dol- lars and cents was approximately $1,687,578.00, approximately 68% of which products were shipped to points and places outside the State of Michigan. 3. Respondent is engaged in interstate commerce within the meaning of the National Labor Relations Act. 4. Respondent, Reynolds Spring Company, hereby waives its right to a hearing in this cause and agrees that the charge, amended charge, complaint and notice of hearing as heretofore served on respondent, together with respondent's answer as filed with the Regional Director for the Seventh Region of the Na- tional Labor Relations Board at Detroit, Michigan, this st ipulation and a copy of the Rules and Regulations of the National Labor Re- lations Board, Series 1, as amended, shall be filed with the Chief Trial Examiner of the National Labor Relations Board at Wash- ington, D. C., and shall constitute the record in this proceeding. 5. Respondent waives the making by National Labor Relations Board of findings of fact and conclusions of law in this matter and consents that it may make and enter an order in the following terms : REYNOLDS SPRING COMPANY 725 Respondent, Reynolds Spring Company, its officers and agents, .successors and assigns, shall: 1. Cease and desist from : (a) 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; (b) Dominating or interfering with the administration of American Labor League, Unit No. 75, or with-the formation or administration of any other labor organization 'of its employees, .and from contributing support' to American Labor League, Unit No. 75, or any other labor organization of its employees; (c) Discouraging membership in Local 62, International Union, United Automobile Workers of America, or in any other labor organization of its employees, by discriminating in regard to hire and tenure of employment, or any other term or-condition of employment, or in any other manner. 2. Take the following affirmative action to effectuate the poli- cies and purposes of the National Labor Relations Act: (a). Offer reinstatement to their former 'or substantially equiv- Rlleit'positions to Glen Whitaker and William Robbins in accord- ance with their seniority in employment in their former positions, without prejudice to their seniority and other rights and privi- leges; (b) Deny recognition to American Labor League, Unit 'No. 75, as a representative of any of its employees for the purpose of collective bargaining in regard to grievances, labor disputes, `rages, rates of pay, hours of employment, or' other conditions of employment, and disestablish said American Labor League, Unit No. 75, as such representative; (c) Upon request, bargain with Local 62, International Union, United Automobile Workers of America, as the exclusive representative of its production employees and" truck' drivers, exclusive of supervisory and clerical employees; at its Jackson Plant No. 1 • for the purpose of collective bargaining in regard to Wages, rates of pay, hours of employment; and other conditions of employment; (d) Post the following notice in at least five conspicuous places in its Jackson Plant No. 1 'and keep the said notice posted con- tinuously for a period of thirty consecutive clays : 199549-39-vol . 1 5--47 726 DECISIONS OF NATIONAL LABOR RELATIONS BOARD NOTICE TO EMPLOYEES The National Labor Relations Board has issued a complaint against this company charging certain violations of the National Labor Relations Act. This Company has filed with the National Labor Relations Board its denial of such violations. The Com- pany maintains its denials but,, for the purpose of avoiding liti- gation, has formally consented to the entry by the National Labor Relations Board of an order-against this company requir- ing it: 1.. To cease and desist from : (a) In any manner interfering with, restraining or coercing its employees in the exercise of their right to self organiieltion, 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 protectign pis guaraanteed in Section 7 .,.of the National Labor Relations Act ; (b) Dominating or interfering with the adm i istration of American Labor League, Unit No. 75, or with the formation or administration of any other labor, organization of its employees, and from contributing support to American Labor League, Unit No. 75, or any other labor. organization of its,employee 's; (c) Discouraging membership in Local 62, International Union, United Automobile Workers of America, or in any,other labor organization of its employees, by discriminating in re- gard to hire and tenure of employment, or any other term or condition of employment, or in any other znamier. 2. To take the following affirmative action : (a) Offer reinstatement to their former or substantially equivalent positions to Glen Whitaker and William Robbins in accordance with their seniority in employment in their former. positions, without prejudice to their seniority and other rights and privileges; (b) Deny recognition to Anierica.n Labor.League, Unit No. 75, as a representative of any of its employees for the purpose of collective bargaining in regard, to grievances, labor, disputes, r,wages, rates of pay, hours of employment, or other conditions of : employment, and disestablish said American Labor League, Unit No. 75, as such representative; (c) Upon request, bargain with Local 62, International Union, United Automobile Workers of America, as the 'exclusive.relire- sentative of its production employees and truck drivers, ex- clusive of supervisory and clerical employees, at its Jackson Plant No. 1 for the purpose of collective bargaining in regard REYNOLDS SPRING COMPANY 727 to wages, rates of pay, hours of employment, and other condi- tions of employment; (d) Post this notice in five conspicuous places in this plant and keep the same posted continuously, for thirty consecutive days. Pursuant to the above order, this company recognizes Local 62, International Union, United Automobile Workers of America, as the exclusive representative of the production and maintenance employees and truck drivers employed at this plant for collective bargaining with the company in regard to wages, rates of pay, hours of employment., or other conditions of employment. Under Section 9 (a) of, the National Labor Relations Act, however, any individual employee or group of employees has the right at any time to present grievances to the, company. The contract now in effect between this company and Local No. 62, International Union, United Automobile Workers of America will remain in full force and effect and nothing con- tained in the order abrogates said contract in any way. REYNOLDS SPRING COMPANY. By J. S. SHERMAN (signed.) V-P. 6. Respondent further stipulates and consents to the entry by any appropriate United States Circuit Court of Appeals of a decree for the enforcement of the order of the National Labor Relations Board in the above form, and waives its right. to con- test any application by the National Labor Relations Board for the entry of such a decree, and, further, waives any and all requirements of notice in the filing of such application by the National Labor Relations Board before any United States Cir- cuit Court of Appeals. SUPPLEMENTAL, STIPULATION It is hereby further stipulated by and between the- parties hereto as follows : 1. The employees of the respondent, Reynolds Spring Com- pany, engaged at Plant No. 1 in the City of Jackson, Michigan, as production, maintenance employees and truck drivers, ex- clusive of supervisors and clerical employees, constitute a- unit appropriate for the purpose of collective bargaining within the meaning of Section 9 (b) of the National Labor Relations Act. 2. The complaint which, was issued in the above entitled matter . may be dismissed insofar as it alleges that Bernard Warner and Guy Lashwvood were discharged by the respondent, 728 DECISIONS OF NATIONAL. LABOR RELATIONS BOARD Reynolds Spring Company , in violation of Section 8, Subsection (3) of the National Labor Relations Act. 3. That the parties hereto stipulate and agree that this sup- plemental stipulation may be considered as part of the stipula- tion entered into between the parties hereto in the above entitled case on the 9th day of May , 1939, with the same force and effect as it would have if made a physical part of the said stipulation when entered into on the 9th day of May, 1939. On July 18, 19391 the Board issued its order approving the above stipulation and supplementary stipulation , making them part of the record, and transferring the proceeding to the Board for the purpose of a decision and order by the Board. Upon the above stipulation , and supplementary stipulation, and the. entire record in the 'case, the ` Boaid makes the following: FiNDi-N Gs OF FACT 1. TIIE BUSINESS OF THE RESPONDENT Reynolds Spring, Company is a Delaware corporation, having its principal office and place of business in Jackson, Michigan. It is engaged in its plant at Jackson, Michigan, herein called the Jackson Plant No. 1, in the manufacture, sale, and distribution of cushion springs, trim rails, and molded plastic parts. The, raw. materials used in the manufacturing operations ' of the respondent at its Jackson Plant No. 1 are high carbon spring' wire, strip steel, burlap, cotton sheeting, fiber board, paper cord,: and 'synthetic molding compounds. During the year ending December 31, 1938, the value of said raw materials used at the Jackson Plant No. 1 amounted to approximately $700,000.00, of which approxi- mately $626,919.00 were shipped to the plant from points outside of the State of Michigan... During the same period, the value°`of fi`ihished products produced at Jackson Plant No. 1 was approxi- mately $1;687,578.00, approximately 68 per cent of which was shipped to points outside the State of Michigan. The respondent admits that it is engaged in interstate commerce within the meaning of the Actg.:.. We, find that the above-described operations constitute . a continu- ous flow of trade, traffic, and commerce among the several States. THE PETITION In view of the stipulation and supplementary stipulation herein, and the Order we shall enter thereon, it is not necessary to consider the petition of the Union for investigation and certification of representatives. Consequently said petition will be dismissed. REYNOLDS SPRING COMPANY ORDER 729 Upon the basis of the above findings of fact, stipulation and sup- plementary stipulation, and the entire record in the case, and pur- suant to Section 10 (c) of the National Labor Relations Act, the National Labor Relations Board hereby orders that the respondent, Reynolds Spring Company. its officers, agents, successors, and assigns shall : 1: Cease and desist from : (a) 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; (b) Dominating or interfering with the administration of Amer- ican Labor League, Unit No. 75, or with the formation or admin- istration of any other labor organization of its employees, and from contributing support to American Labor League, Unit No. 75, or any other labor organization of its employees; (c) Discouraging membership in Local 62, International Union, United Automobile Workers of America, or. in any other labor organization of its employees, by discriminating in regard to hire anel-tenure of employment, or any other term or, condition of employ- melit, or in any other manner. 2. Take the following affirmative action to effectuate the policies and purposes of the National Labor Relations Act: (a) Offer reinstatement to their former or substantially equiv- alent positions to Glen Whitaker and William Robbins in accord- ance with their seniority in employment in their former positions, without prejudice to their seniority and other rights and privileges; (b) Deny recognition to American Labor League, Unit No. 75, as a representative of any of its employees for the purpose of collective bargaining in regard to grievances, labor disputes, wages, rates of pay, hours of employment, or other conditions of employment, and disestablish said American Labor League, Unit No. 75, as such representative; (c) Upon request, bargain with Local 62, International Union, United Automobile Workers of America, as the exclusive representa- tive of its production employees and truck drivers, exclusive of super visory and clerical employees, at its Jackson Plant No. 1 for the pi rpose of collective bargaining in regard to wages, rates of pay, hours of employment, and other conditions of employment; - 730 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (d) Post the following notice in at least five conspicuous places in its Jackson Plant No. 1 and keep the said notice posted continuously for a period of thirty consecutive days : NOTICE TO EMPLOYEES The National Labor Relations Board has issued a complaint against this company charging certain violations of the National Labor Relations Act. This Company has filed with the National Labor Relations Board its denial of such violations. The Company maintains its denials but, for the purpose of avoiding litigation, has formally consented to the entry by the National Labor Relations Board of an order against this company requiring it: 1: To cease and desist from : (a) 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 rep- resentatives of their own choosing, and to engage in concerted activi- ties for the purpose of collective bargaining or other mutual aid or protection as guaranteed in Section 7 of the National Labor Relations Act; (b) Dominating or interfering with the administration of Ameri- can Labor League, Unit No. 75, or with the formation or administra- tion of any other labor organization of its employees, and from con- tributing support to American Labor League, Unit No. 75, or any other labor organization of its employees; (c) Discouraging membership in Local 62, International Union, United Automobile Workers of America, or in any other labor organi- zation of its employees, by discriminating in regard to hire and tenure of employment, or any other term or conditions of employment, or. in any other manner. 2. To take the following affirmative action : (a) Offer reinstatement to their former or substantially equivalent positions to Glen Whitaker and William Robbins in accordance with their seniority in employment in their former positions, without prej- udice to their seniority and other rights and privileges; (b) Deny recognition to American Labor League, Unit No. 75, as a representative of any of its employees for the purpose of collec- tive bargaining in regard to grievances, labor disputes, wages, rates of pay, hours of employment, or other conditions of employment, and disestablish said American Labor League, Unit No. 75, as such representative; (c) Upon request, bargain with Local 62, International Union, United Automobile Workers of America, as the exclusive represent- ative of its production employees and truck drivers, exclusive of REYNOLDS SPRING COMPANY 731 supervisory and clerical employees, at its Jackson Plant No. 1 for the purpose of collective bargaining in regard to wages , rates of pay, hours of employment, and other conditions of employment; (d)- Post this notice in five conspicuous places in this plant and kee he same posted continuously for thirty consecutive days.. Pursuant to the above order, this company recognizes Local 62, International -representative United Automobile Workers of America, as the exclusive representative of the production and maintenance em- ployees and truck drivers employed at this plant for collective bar- gaining with the company in regard to wages, rates of pay, hours of employment, or other conditions of employment. Under Section 9: (a) of the National Labor Relations Act, how- ever, any individual employee or group of employees has the right at any time to present grievances to the company. The contract now in effect between this company and Local No. 62, International Union, United Automobile Workers of America will remain in full force and effect and nothing contained in the order abrogates said contract in any way. AND IT IS HEREBY FURTHER ORDERED that the Complaint in so far as it alleges that the respondent has engaged in unfair labor practices within the meaning of Section 8 (3) of the Act with respect to Bernard Warner and Guy Lashwood, be, and it hereby is, dismissed. AND IT IS FURTHER ORDERED that the petition for certification of rep- resentatives filed by Local 62, International Union, United Automo- bile Workers of America; be, and it hereby is, dismissed.