Eureka Maryland Assurance Corp.

In the Matter of EUREKA MARYLAND ASSURANCE CORPORATION and INDUSTRIAL AND ORDINARY INSURANCE AGENTS UNION No. 21354, INDUSTRIAL AND ORDINARY INSURANCE AGENTS COUNCIL Case No. R-1567.-Decided November 6, 1939 Life Insurance Business-Jurisdiction : employer engaged in trade, traffic, and commerce in the District of Columbia-Investigation of Representatives: con- troversy concerning representation of employees : rival organizations-Unit Appropriate for Collective Bargaining : no controversy as to; debit agents and canvassers , excluding ordinary agents, clerks , inspectors, assistant super- intendents, and the superintendent-Election Ordered Mr. Samuel H. Spencer, for the Board. Mr. Jacob S. New, of Baltimore, Md., for the Company. ilfr. George L. Russ, of Washington, D. C., for the Council. Mr. George Brody and Mr. Lou Vennett, of Baltimore, Md., for the U. O. P. W. A. Mr. Ivar Peterson, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF THE CASE On May 25, 1939, Industrial and Ordinary Insurance Agents Union No. 21354, Industrial and Ordinary Insurance Agents Council, herein called the Council, filed with the Regional Director for the Fifth Region (Baltimore, Maryland), a petition alleging that a question affecting commerce had arisen concerning the representation of em- ployees of Eureka Maryland Assurance Corporation,' Washington, D. C., herein called the Company, and requesting an investigation and certification of representatives pursuant to Section 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. On September 15, 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 i The petition and the Board 's order directing an investigation , which incorrectly desig- nated the Company as Washington Branch Eureka Maryland Assurance Corp. of Baltimore, Maryland, were amended at the hearing to designate the Company as above. 17 N. L. R. B., No. 23. 381 382 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Regulations-Series 2, ordered an investigation and authorized the Regional Director to conduct it and to provide for an appropriate hearing upon due notice. On September 29, 1939, the Regional Director issued a notice of hearing, copies of which were duly served upon the Company, the Council, and the Congress of Industrial Organizations, herein called the C. I. O. Pursuant to the notice, a hearing was held on October 16, 1939, at Washington, D. C., before .Tilford E. Dudley, the Trial Examiner duly designated by the Board. At the opening of the hearing, United Office and Professional Workers of America, herein called the U. O. P. W. A., a labor organization claiming to represent employees directly affected by the investigation, was on motion allowed to intervene as a party to the proceeding. The Board and the Company were represented by counsel ; the Council and the U. O. P. W. A., by their duly authorized representatives. All parties participated in the hearing. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evidence bearing on the issues was afforded all parties. At the opening of the hearing, counsel for the Company moved to dismiss the petition on the grounds that the Act is not applicable to the Company or to its employees referred to. in the petition, and that the Company is not engaged in commerce in the District of Columbia, within the meaning of the Act. The Trial Examiner denied the motion. During the course of the hearing the Trial Examiner made several other rulings on motions. No objections were made 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 I. THE BUSINESS OF THE COMPANY Eureka Maryland Assurance Corporation, a Maryland corporation with its main office in Baltimore, Maryland, and branch offices in Delaware, Maryland, Michigan, Ohio, Pennsylvania, Virginia, and the District of Columbia, is engaged in the sale of industrial, ordinary, and group life insurance. The Company maintains two branch offices in the District of Columbia, both of which are engaged in selling ordinary and group life insurance, but only one of which sells industrial life insurance. This proceeding is concerned with the employees of the Company's Washington offices. In 1938, the Company had 1,175 ordinary and group, and 18,412 industrial, life insurance policies in force in the area serviced by the Washington offices, which includes the District of Columbia and EUREKA MARYLAND ASSURANCE CORPORATION 383 nearby sections of Maryland and Virginia. Approximately 63 per cent of the industrial life insurance business done by the Washington office is allocable to the District of Columbia. During 1938, the gross premium receipts of the Washington offices amounted to $164,814.49, and of this sum, approximately $128,000 consisted of industrial life insu ance-,premiums: At the end of 1938, the Company had out- standing $3,406,466 in industrial life insurance in the District of Columbia, or about 2 per cent of the total industrial life insurance outstanding in the District of Columbia. The Company employs about 37 employees in its Washington offices. About 33 of these employees are engaged in selling industrial life insurance, including 22 debit agents or collectors, 3 canvassers, 1 inspector, 2 clerks, 4 assistant superintendents, and 1 superintendent. We find that the Company is engaged in trade, traffic, and com- merce in the District of Columbia. II. THE ORGANIZATIONS INVOLVED Industrial and Ordinary Insurance Agents Union No. 21354, In- dustrial and Ordinary Insurance Agents Council, is a labor organ- ization affiliated with the American Federation of Labor, admitting to membership employees of the Company. United Office and Professional Workers of America is a labor organization affiliated with the Congress of Industrial Organizations, admitting to membership employees of the Company. III. THE QUESTION CONCERNING REPRESENTATION Prior to the hearing, the U. O. P. W. A. entered into a contract with the Company providing, in part, that it should become ap- plicable in all areas in which the U. O. P. W. A. represented a ma- jority of the employees. Shortly before this, the Council, claiming to represent employees of the Company, had sought to negotiate with the Company in their behalf. At the hearing, the Council, the U. O. P. W. A., and the Company stipulated that a question had arisen concerning the representation of employees of the Company in Washington, D. C.2 We find that a question has arisen concerning the 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 2 Counsel ' for the Company agreed to the stipulation subject, however , to his motion to dismiss for lack of jurisdiction. 384 DECISIONS OF NATIONAL LABOR RELATIONS BOARD described in Section I above, has a close, intimate, and substantial relation to trade, traffic, and commerce within the District of Co- lumbia, and tends to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE APPROPRIATE UNIT The parties stipulated 3 at the hearing that the debit agents and the canvassers of the Company located and stationed in Washington, D. C., but excluding the ordinary agents, the clerks, the inspectors, the assistant. superintendents, and the superintendent, constitute a unit appropriate for the purposes of collective bargaining. The unit so agreed upon corresponds substantially to the unit which we have heretofore found appropriate in an analogous case.4 We see no reason for departing from the desires of the parties. We find that the debit agents and the canvassers of the Company located and stationed in Washington, D. C., but excluding the ordi- nary agents, the clerks, the inspectors, the assistant superintendents, and the superintendent, constitute a unit appropriate for the pur- poses of collective bargaining and that said unit will insure to, em- ployees of the Company the full benefit of their right to self-organ- ization and collective bargaining and otherwise will effectuate the policies of the Act. VI. TIIE DETERMINATION OF REPRESENTATIVES The Council and the U. 0. P. W. A. stipulated that an election should be held to determine the question concerning representation. We find that the question concerning representation which has arisen can best be resolved by an election by secret ballot. The Council and the U. 0. P. W. A. agreed that the employees eligible to vote should be, those employees in the appropriate unit during the pay-roll period immediately preceding 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, but excluding those who have since quit or been discharged for cause. We shall so direct. 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 Eureka Maryland Assurance Corporation, s See footnote 2. Matter of Washington Branch of the Sun Life Insurance Company of America and Industrial and Ordinary Insurance Agents Union No. 21354, Industrial and Ordinary Insur- onece Agents Council, 15 N. L. R. B., 817. EUREKA MARYLAND ASSURANCE CORPORATION 385 at Washington, District of Columbia, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the National Labor Relations Act. 2. The debit agents and the canvassers of the Company located and stationed in Washington, D. C., but excluding the ordinary agents, the clerks, the inspectors, the assistant superintendents, and the superintendent, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9 (b) of the National Labor Relations 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 Rela- tions 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 Eureka Maryland Assurance Corporation, Washington, D. C., an election by secret ballot shall be conducted as early as possible but not later than thirty (30) days from the date of this Direction of Election, under the direction and supervision of the Regional Director for the Fifth 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 debit agents and the canvassers of Eureka Maryland Assurance Corporation located and stationed in Washington, D. C., who were employed during the pay-roll period immediately preceding the date of this Direction of Election, including such employees who did not work during that period because they were ill or on vacation, but excluding the ordinary agents, the clerks, the inspectors, the assistant superintendents, and the superintendent, and those who have since quit or been discharged for cause, to determine whether they desire to be represented by Industrial and Ordinary Insurance Agents Union No. 21354, Indus- trial and Ordinary Insurance Agents Council, or United Office and Professional Workers of America, for the purposes of collective bar- gaining, or by neither. [SA1LE TITLE] AMENDMENT TO DIRECTION OF ELECTION November 14, 1939 On November 6, 1939, the National Labor Relations Board, herein called the Board, issued a Decision and Direction of Election in the above-entitled proceeding, the election to be held as early as pos- 386 DECISIONS OF NATIONAL LABOR RELATIONS BOARD sible but not later than thirty (30) days from the date of the Direc- tion. The Board, having been advised by United Office and Pro- fessional Workers of America that it does not desire to participate in any election ordered by the Board in this proceeding, hereby :amends its Direction of 'Election issued on November 6,- 1939, by striking therefrom the words "they desire to be represented by In- dustrial and Ordinary Insurance Agents Union No. 21354, Industrial and Ordinary Insurance Agents Council, or United Office and Pro- fessional Workers of America, for the purposes of collective bargain- ing, or by neither" and substituting therefor the words "or not they desire to be represented by Industrial and Ordinary Insurance Agents Union No. 21354, Industrial and Ordinary Insurance Agents Council, for the purposes of collective bargaining." 17 N. L. R. B., No. 23a.