Deere & Co.

In the Matter of DEERE & COMPANY, A CORPORATION, JOHN DEERE - TRACTOR COMPANY, A CORPORATION, AND DAIN MANUFACTURING COMPANY, A CORPORATION and UNITED FARM EQUIPMENT WORKERS OF AMERICA , THROUGH FARM EQUIPMENT WORKERS ORGANIZING COMMITTEE Case No. C-1345.-Decided September 30, 1939 Agricultural Machinery and Equipment Manufacturing Industry-Settlement: stipulation providing for compliance with the Act, including abrogation of indi- vidual contracts of employment-Order: entered on stipulation. Mr. Jack G. Evans and Mr. Charles F. McErlean, for the Board. Mr. S. R. Kenworthy and Mr. H. W. Pike, of Moline, Ill., Pike, Sias c Butler by Mr. George E. Pike and Mr. B. F. Butler, of. Waterloo, Iowa, and Mr. R. E. White, of Ottumwa, Iowa, for the respondents. Mr. Ben Meyers, of Chicago, Ill., 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 United Farm Equipment Workers of America, through Farm Equipment Workers Organizing Committee, herein called the Union, the National Labor Relations Board, herein called the Board, by the Regional Director for the Thirteenth Region (Chicago, Illinois), issued its complaint on August 10, 1939, against Deere & Company, a corporation, Moline, Illinois, John Deere Tractor Company, a corporation, Waterloo, Iowa, and Dain Manufacturing Company, a corporation, Ottumwa, Iowa, herein collectively called-:the respondents, alleging -that the respondents had engaged in and were engaging in unfair labor prac- tices affecting commerce within the meaning of Section 8 (1) and (3) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. Copies of the complaint and notice of hearing thereon were duly served upon the respondents and .15 N. L. R. B., No. 85. 779 780 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Union. On August 23, 1939, the respondents filed their respec- tive answers to the complaint in which they admitted some of the allegations concerning the nature and scope of the respondents' busi- ness but denied the allegations of unfair labor practices. . Concerning the unfair labor- practices the complaint alleged in substance that the respondents, jointly and severally at various times from July 5, 1935, to the date of the issuance of the. complaint, re- quired as a condition of employment that their employees sign con- tracts providing that during the life of said contracts the employees were not to join in any concerted movement for a change in wages, hours, or other conditions of said contracts; that the respondents required their employees to enter into said contracts to prevent, impede, discourage, and nullify the right of their employees to form, join, or assist labor organizations, to deprive their employees of their right to bargain collectively through representatives of their own choosing, to interfere with, restrain, and coerce their employees in the exercise of their rights to propose changes as to wages, hours of employment, and other conditions of employment, and to prevent, impede, discourage, and defeat any concerted activities among their employees for the. purposes of collective bargaining or other mutual aid or protection; that the respondents by entering into and enforc- ing said contracts discriminated in regard to hire and tenure of employment and the terms and. conditions of employment; and that the respondents by thei afore-mentioned activities, and by engaging in espionage of their employees' activities for the purposes of collec- tive bargaining or union affiliation, and by advising, urging, and warning their employees to refrain from joining or assisting the Union, by threatening to blacklist employees who joined or assisted the Union, by posting a bulletin in the plant misinforming or only partly informing their employees as to their rights under the Act, and by other acts, interfered with, restrained, and coerced their ,employees in the exercise of rights guaranteed in Section 7 of the Act. Pursuant to notice a hearing was held on August 21, 22, 23, and 24, 1939, at Davenport, Iowa, before Howard Meyers, the Trial Exam- iner duly designated by the Board. The Board, the respondents, and the Union were represented by counsel and participated in .the hear- ing. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evidence bearing on the issues was af- forded all parties. Upon motions of all parties, the Trial Examiner ,granted adjournments from time to time in order to allow the parties opportunity to negotiate a settlement of the issues involved. On August 24, 1939, the respondents, the Union, and counsel for the Board entered into a stipulation in settlement of the case. This stipulation provides as follows : DEERE & COMPANY 781 STIPULATION AND AGREEMENT It is hereby stipulated and agreed by and between Deere & Company, an Illinois corporation, by S. R. Kenworthy and H. W. Pike, its attorneys, John Deere Tractor Company, an Iowa corporation, by George E. Pike and B. F. Butler, its attor- neys, Dain Manufacturing Company, an Iowa corporation, by- R. E. White, its attorney, hereinafter collectively called Respond- ents, United Farm Equipment Workers of America, through. Farm. Equipment Workers Organizing Committee, hereinafter- called the Union, by Ben Meyers, its attorney, and Jack G. Evans. and Charles F. McErlean, attorneys, National Labor Relations. Board, hereinafter called the Board, that: I. Upon Charges, as amended, duly filed by the Union, through. Ben Meyers, an accredited agent and representative of the Union: for that purpose, the Board, by G. L. Patterson, Regional Direc- tor for the Thirteenth Region (Chicago, Ill. ), acting pursuant to authority granted in Section 10 (b) of the National Labor Relations Act, 49 Stat. 449, hereinafter called the Act, and pur- suant to Article II, Section 23, and Article IV, Section 3 of the National Labor Relations Board Rules and Regulations, Series 2,. duly issued a Complaint and Notice of Hearing thereon, on August 10, 1939, against Respondents, and each of them. On. August 11, 1939 true and accurate copies of the Complaint, Notice of Hearing, Second Amended Charge, and National Labor Rela- tions Board Rules and Regulations, Series 2, were duly served upon the Respondents, and each of them, and the Union. On, August 21, 1939, Respondents, and each of them, filed their answers to the Complaint. II. A hearing was convened August 21, 22 and 23, 1939, at the Federal District Court Room, United States Post Office,. Davenport, Iowa, before Howard Meyers, a Trial Examiner duly designated by the Board, at which time and place Respondents,. and each of them, and the Union appeared and were duly repre- sented, and were afforded an opportunity to participate in the hearing, to call, examine and cross-examine witnesses and to introduce pertinent evidence. Upon motion of all parties, the Trial Examiner granted adjournments from time to time in order to allow the parties opportunity to negotiate a settlement of any or all of the issues involved. The parties hereto expressly waive their rights to any further hearing in this matter, filing of briefs and exceptions, oral argument before the Board, and the making of Findings of Fact and Conclusions of Law by the Board. III. Paragraphs 1, 2, and 3 of the Complaint and the corre- sponding paragraphs in the respective answers of Respondents, above referred to, are hereby incorporated by reference herein 782 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the same as if rewritten . For the fiscal year ending October 31, 1938, Respondent . Deere & Company purchased and caused to be transported raw materials from points outside the State of Illi- nois to the plants in the State of Illinois referred to in the Com- plaint as the Moline Works , valued at approximately $8,000,000, and during the same period sold and/or distributed finished prod- ucts valued at approximately $23,675,000, of which approximately $21,600,000 were transported or caused to be transported from said plants in the State of Illinois to points outside of the State of Illinois and to foreign countries ; Respondent John Deere Tractor Company, during the same period purchased and caused to be transported raw materials from points outside of the State of Iowa to the plant in the State of Iowa , referred to in the Com- plaint as the Tractor Works, valued at approximately $6,000,000, and during the same period sold and/or distributed finished prod- ucts valued at approximately $21,440,000, of which approximately $18,690,000 were transported or caused to be transported from said plant in the State of Iowa to points outside the State of Iowa - and to foreign countries ; and Respondent Dain Manufac- turing Company, during the same period purchased and caused to be transported raw materials from points outside the State of Iowa to the plant in the State of Iowa, referred to in the Com- plaint as the Dain Works , valued at approximately $500,000, and during the same period sold and/or distributed finished products valued at approximately $1,400,000, of which approximately $1,200,000 was transported or caused to be transported from said plant in the State of Iowa to points outside the State of Iowa and to foreign countries. Respondents , and each of them , are engaged in interstate com- merce within the meaning of the Act. IV. United Farm Equipment Workers of America and Farm Equipment Workers Organizing Committee, are labor organiza- tions within the meaning of Section 2, Subdivision (5) of the Act. V. This stipulation and agreement, the Complaint, Notice of Hearing, Charge, Amended Charge, Second Amended Charge, National Labor Relations Board Rules and Regulations, Series 2, Affidavit of Service of the Complaint, Notice of Hearing, Sec- ond Amended Charge, and National Labor Relations Board Rules and Regulations, Series 2, upon the parties, respective answers of the Respondents, order of the Board appointing the Trial Examiner, and transcripts of the hearing, may be introduced as evidence in the record in this matter forthwith by filing the same with the Chief Trial Examiner of the Board at Washington, D. C. VI. It is alleged that the acts contained in paragraphs 5, 6, 7, 8, 9, 10, and 11 of the Complaint, constitute violations of Section DEERE Rc_ COMPANY - 783 8, Subdivision (1) and Subdivision (3) of the Act, which allega- tions the Respondents deny; Respondents further deny that they have in the past or are now violating said Section 8, Subdivision (1), or Section 8, Subdivision (3) of the Act, or any of the terms or provisions of the National Labor Relations Act. It is further stipulated and agreed that whatever rights Re- spondents and/or their. respective employees may now have or ,may hereafter acquire, if any, to enter into and/or maintain written individual contracts of employment, including such con- tracts now in existence, (except as modified by Section 1 (a) and (b) of Paragraph VI hereof), and to receive and enjoy the bene- fits or the rights, if any, conferred thereby, are in nowise limited by this stipulation or the order based thereon. It is further stipulated and agreed that no finding has been made or is herein made that Respondents have committed the unfair labor practices alleged in the Complaint, or any of them, the parties hereto having herein expressly agreed to waiving the making of findings of fact and conclusions by the Board. It is further stipulated and agreed between the parties hereto that this stipulation shall not be used as evidence in any pro- ceeding other than this proceeding for the purpose of establishing any fact referred to, recited, or alleged in this stipulation, and/or complaint. The parties hereto reserve their right to contest any fact so set forth herein in any proceeding other than the instant proceeding, or other than any proceeding directly growing out of this proceeding. It is further stipulated and agreed by and between the parties hereto, that, upon the entire record in this matter and this stipu- lation and agreement, if approved by the Board, an order may forthwith be entered by the Board, providing as follows, (it being understood and agreed, however, that the words "cease and de- sist" hereinafter used in the order to be entered, shall not be con- strued as an admission by Respondents that the unfair labor prac- tices alleged in the Complaint were committed, and that said order shall be subject to any agreements hereinbefore recited), Respond- ents, Deere & Company, a corporation, John Deere Tractor Com- pany, a corporation, and Dain Manufacturing Company, a cor- poration, their officers, agents, successors and assigns, shall each : 1. Cease and desist from : (a) In any manner maintaining, enforcing, or attempting to maintain or enforce, or giving effect to the provision in any writ- ten individual contract of employment now in effect with any of Respondents' employees, or any like or similar provision, that the employee agrees "not to join in any concerted movement, during 784 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the life of this contract, for a change in wages, hours or other conditions of this contract;" (b) Maintaining, enforcing, or entering into any written indi- vidual contract with any of Respondents' employees, which con- tains the provision set forth in 1 (a) above, or which contains any like or similar provision; (c) Acting upon or interpreting any written individual con- tract with Respondents' employees in such a manner as to violate Section 8 of the Act, for the purpose of interfering with, re- straining, or coercing Respondents' employees in the exercise of the rights guaranteed them in Section 7 of the Act; (d) Discriminating in regard to hire, tenure, terms or condi- tions of employment, by entering into, maintaining, enforcing, or imposing as a condition of employment, any written indi- vidual contract, to discourage membership in the Union or any labor organization; (e) In any other manner-interfering with, restraining, or co- ercing Respondents' employees in the exercise of the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choos- ing, and to engage in concerted activities, for the purpose of collective bargaining or other mutual aid or protection. 2. Take the following affirmative action, in order to effectuate the policies of the National Labor Relations Act : (a) Immediately upon the approval of this stipulation and agreement by the Board, notify in writing each of Respondents' employees with whom written individual contracts of employ- ment have been executed and are now in effect, containing a pro- vision that the employee agrees "not to join in any concerted movement, during the life of this contract, for a change in wages, hours or other conditions of this contract," or which con- tains a like or similar provision, that such provision) will no longer be maintained or enforced, or attempted to be maintained, enforced, or given effect to by Respondents against any of Re- spondents' employees; (b) Immediately upon the approval of this stipulation and agreement by the Board, post notices to Respondents' employees in conspicuous places throughout all their plants located in Moline and East Moline, Illinois, and Waterloo and Ottumwa, Iowa, and maintain such notices for a period of at least sixty (60) consecutive days from the date of posting, stating that (1) Respondents, and each of them, will cease and desist as aforesaid,. and (2) that Respondents, and each of them, will notify their employees as set forth in Paragraph 2 (a) of this order; DEERE & COMPANY 785 (c) Notify the Regional Director for the Thirteenth Region of the Board (Chicago, Illinois); in writing within ten (10) days from the date of approval of this stipulation and agreement by the Board, what steps Respondents, n,nd each of them, have taken to comply herewith. VII. It is further stipulated and expressly agreed that any United States Circuit Court of Appeals may, upon application by the Board at the convenience of the Board, enter its decree enforcing the order of the Board, as provided in form set forth in Paragraph VI herein, and Respondents, and each of them, expressly waive their rights to contest the entry of any such decree and to receive notice of the filing of an application for the entry of such decree. VIII. This stipulation and agreement is made subject to the approval of the Board. However, Respondents reserve the right to withdraw from this stipulation and agreement if the same is not approved by the Board within ten (10) days from the date hereof. If this stipulation and agreement is not approved by the Board, then no advantage is to be taken by any party to it of any matter or thing contained therein in the hearing of this cause, and this stipulation and agreement is not to be introduced in evidence by any party in said hearing. IX. All terms agreed upon are contained within this stipula- tion and agreement and there is no verbal agreement of any kind which varies, alters, or adds to this stipulation and agreement. On August 29, 1939, the Board issued its order approving the above stipulation, making it part of the record, and transferring the proceeding 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 RESPONDENTS Deere & Company, an Illinois corporation, has its principal office and place of business at Moline, Illinois. Deere & Company, directly and through subsidiaries, designs, manufactures, sells, and distributes agricultural machinery and equipment. It is the second largest pro- ducer of agricultural machinery and equipment in the United States. For the fiscal year ending October 31, 1938, Deere & Company pur- chased and caused to be transported raw materials valued at ap- proximately $8,000,000 from points outside the State of Illinois to its plants at Moline, Illinois, and during the same period sold prod- ucts valued at approximately $23,675,000, ' of which approximately 786 DECISIONS OF NATIONAL LABOR RELATIONS BOARD $21,600,000 represented shipments to points outside the State of Illinois. John Deere Tractor Company, a wholly owned subsidiary of Deere & Company, is an Iowa corporation, having its principal office and place of business at Waterloo, Iowa, and is engaged in the design, sale, and distribution of farm tractors. During the fiscal year ending October 31, 1938, John Deere Tractor Company purchased and caused to be transported raw materials valued at approximately $6,000,000 from points outside the State of Iowa to its plant at Waterloo, Iowa, and during the same period sold products valued at approximately $21,440,000, of which approximately $18,690,000 represented ship- ments.to points outside the State of Iowa. Dain Manufacturing Company, a wholly owned subsidiary of Deere & Company, is an Iowa corporation having its principal office and place of business at Ottumwa, Iowa., and is engaged in the de- sign, manufacture, sale, and distribution of sweep rakes, shock sweeps, hay loaders, hay stackers, hay pressers, kafir headers, pump jacks, and concrete mixers. During the fiscal period ending October 31, 1938, Dain Manufacturing Company purchased and caused to be transported raw materials valued at approximately $500,000 from points outside the State of Iowa to its plant at Ottumwa, Iowa, and during the same period sold products valued at approximately $1,- 400,000, of which approximately $1,200,000 represented shipments to points outside the State of Iowa. The respondents admit that they are engaged in interstate coin- merce within the meaning of the Act. 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 and stipulation, and upon 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 respondents, Deere & Company, a corpora- tion, John Deere Tractor Company, a corporation, and Dain Manu- facturing Company, a corporation, their officers, agents, successors, and assigns, shall each : 1. Cease and desist from : (a) In any manner maintaining, enforcing, or attempting to main- tain or enforce, or giving effect to the provision in any written indi- vidual contract of employment now in effect with any of respondents' employees, or any like or similar provision, that the employee agrees "not to join in any concerted movement, during the life of this con- tract, for a change in wages, hours or other conditions of this con- tract"; DEERE & COMPANY 787 (b) Maintaining,, enforcing, or entering into any written individual contract with any of respondents' employees, which contains the provision set forth in 1 (a) above, or which contains any like or similar provision ; (c) Acting upon or interpreting any written individual contract with respondents' employees in such a manner as to violate Section 8 of the Act, for the purpose of interfering with, restraining,' or co- ercing respondents' employees in the exercise of the rights guaranteed them in Section 7 of the Act; (d) Discriminating in regard to hire, tenure, terms or conditions of employment, by entering into, maintaining, enforcing, or imposing as a condition of employment, any written individual contract, to dis- courage membership in the Union or any labor organization; (e) In any other manner interfering with, restraining, or coercing respondents' employees in the exercise of the right to self-organiza- tion, 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 bargaining or other mutual aid or protection. 2. Take the following affirmative action, in order to effectuate the policies of the National Labor Relations Act : (a) Immediately upon the approval of this stipulation and agree- ment by the Board, notify in writing each of respondents' employees with whom written individual contracts of employment have been executed and are now in effect, containing a provision that the em- ployee agrees "not to join in any concerted movement, during the life of this contract, for a change in wages, hours or other conditions of this contract," or which contains a like or similar provision, that such provision will no longer. be maintained or enforced, or at- tempted to be maintained, enforced, or given effect to by respondents against any of respondents' employees; (b) Immediately upon the approval of this stipulation and agree- ment by the Board, post notices to respondents' employees in con- spicuous places throughout all their plants located in Moline and .East Moline, Illinois, and Waterloo and Ottumwa, Iowa, and main- tain such notices for a period of at least sixty (60) consecutive days from the date of posting, stating that (1) respondents, and each of them, will cease and desist as aforesaid, and (2) that respondents, and each of them, will notify their employees as set forth in para- graph 2 (a)' of this Order; (c) Notify the Regional Director for the Thirteenth Region of the Board (Chicago, Illinois) in writing within ten (10) days from the date of approval of this stipulation and agreement by the Board, what steps respondents, and each of them, have taken to comply herewith.