Appalachian Mills Co.

In the Matter of APPALACHIAN MILLS COMPANY 1 and TEXTILE WORKERS ORGANIZING COMMITTEE' Case No. C-870.-Decided November 17, 1939 Textile Manufacturlnp Industry-Settlement: stipulation providing for com- pliance with the Act-Order: entered on stipulation. Mr. Maurice J. Nicoson, for the Board. Frantz, McConnell cf Seymour, by Mr. Thomas G. McConnell and Mr. E. Bruce Foster, of Knoxville, Tenn., for the respondent. Mr. Ivar Peterson, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon charges and amended charges duly filed by Textile Workers Organizing Committee, herein called the Union, the National Labor Relations Board, herein called the Board, by Charles N. Feidelson, Regional Director for the Tenth Region (Atlanta, Georgia), issued its complaint dated April 13, 1938, against Appalachian Mills Com- pany, Knoxville, Tennessee, herein called 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) 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 accompanied by notice of hearing, were duly served upon the respondent and the Union. With respect to the unfair labor practices, the complaint alleged in substance: (1) that since April 1, 1937, the respondent, through its officers, overseers, and agents, discouraged membership in the Union by advising, urging, and warning its employees not to join, assist, or favor the Union or accept circulars from or listen to officials of the Union, by threatening employees with discharge and discrim- ination if they joined or assisted the Union, and by other forms of intimidation, coercion, and restraint; (2) that the respondent dis- ' Incorrectly named "Appalachian Mills" in the complaint . At the hearing the com- plaint was amended, without objection , to designate the respondent as above. 17 N. L. R. B., No. 68. 764 APPALACHIAN MILLS COMPANY 765 charged 18 named employees for the reason that they had joined and assisted, or attempted to join and assist the Union, thereby discour- aging membership in the Union; and (3) that by the aforesaid acts the respondent interfered with, restrained, and coerced its employees in the exercise, of the rights guaranteed in Section 7 of the Act. On April 20, 1938, the respondent filed its answer admitting the :allegations of the complaint as to the character of its business, deny- ing that it had engaged in unfair labor practices, and alleging affirm- atively that the Board was without jurisdiction for the reason that none of the alleged unfair labor practices interfered substantially with the respondent's operations nor affected, burdened, or obstructed the free flow of commerce. Pursuant to notice duly served upon the respondent and the Union, a hearing was held at Knoxville, Tennessee, from April 25 to May 7, 1938, inclusive, before James L. Fort, the Trial Examiner duly designated by the Board. The Board and the respondent were rep- resented by counsel and participated in the hearing; the Union did not appear. Full opportunity was afforded all parties to examine and cross examine witnesses, and to introduce evidence bearing on the issues. At the -close of the Board's case, counsel for the Board moved that the complaint be amended to substitute "Appalachian Mills Company" as the correct name of the respondent, to change the name of one of the employees alleged to have been discriminatorily discharged from Mrs. Sarah Smith to Mrs. Sam Smith, to dismiss the Allegation concerning Berline Haun, and to conform to the proof as to dates and the spelling of names. Without objection, the fore- going motions were granted. At the conclusion of the hearing the respondent moved that its pleadings be conformed to the proof. The motion was granted. The respondent also moved to dismiss the com- plaint on the ground that the Board lacked jurisdiction and that the evidence adduced failed to establish that the respondent had engaged in the unfair labor practices alleged in the complaint. The Trial Examiner reserved ruling on the foregoing motion and in'his Inter- mediate Report denied it. On July 13, 1938, the Trial Examiner filed his Intermediate Re- port, dated July 7, 1938, in which he found that the respondent had engaged in unfair labor practices within the meaning of Section .8 (1) and (3) of the Act. He accordingly recommended that the respondent cease and desist from engaging in such unfair labor practices and offer reinstatement with back pay to the 17 employees found to have been discriminatorily discharged. Pursuant to an extension of time granted all parties, the respondent on September 10, 1938, filed its exceptions to the Intermediate Report and the record and requested leave to file a brief and to argue orally before the Board in support thereof. Thereafter, at the request of the 766 DECISIONS OF NATIONAL LABOR RELATIONS BOARD respondent and the Union, the Board, by order dated August 14, 1939, indefinitely postponed a hearing for the purpose of oral argument. On or about October 20, 1939, the respondent, the Union, and an attorney for the Board entered into a stipulation, in settlement of the case, subject to approval by the Board. The stipulation provides as follows : Charges in the above-entitled matter having been duly made by the Textile Workers Organizing Committee, now known as Textile Workers Union of America, hereinafter referred to as the union; a complaint having been issued by the National Labor Relations Board, hereinafter referred to as the Board (by Charles N. Feidelson, its Regional Director for the Tenth Re- gion), against Appalachian Mills Company, the respondent herein; a hearing before a Trial Examiner having been duly held and an Intermediate Report of the said Trial Examiner having been thereafter served on the parties ; and it being the intention of the parties hereto to dispose of the issue out- standing, It is hereby stipulated and agreed by and between Appa- lachian Mills Company, the Textile Workers Union of America, and Warren Woods, Attorney for the National Labor Relations Board, as follows : 1. The company is engaged in the production of underwear, sweater coats, bathing suits, and yarns, both cotton and merino, which products are manufactured at its plant in Knoxville, Ten- nessee. The raw materials used by the company are baled cotton, baled wool tops, cotton yarns, wool yarns, and findings. It obtains all of its raw materials from points outside the State of Tennessee. Raw materials are shipped to the Knoxville plant by rail and truck. In 1938 the company purchased approxi- mately 8,000,000 pounds of cotton at a cost of approximately 14 cents a pound, approximately 687,000 pounds of wool tops, 12,000 pounds of wool yarns, and numerous findings. The com- pany sells its products in various states of the Union and abroad, and ships 95 per cent of its products to points outside the State of Tennessee. The company's competitors are located in various states of the Union. It maintains selling offices in New York City; Chicago, Illinois; and San Francisco, Calif. It employs an average of 2,000 people. Its payroll for the year 1938 was approximately $1,500,000. The total sales value of its products during the year 1938 amounted to approximately $4,500,1000. Respondent is a corporation chartered in the State of Ten- nessee. APPALACHIAN MILLS COMPiVNY 767 2. Upon the facts above set forth in paragraph 1 and by agreement of the parties hereto, the National Labor Relations Board has jurisdiction within Section 10 (a) and Section 2 (6) and (7 ) of the National Labor Relations Act to prevent the respondent from engaging in unfair labor practices. 3. The Textile Workers Organizing Committee, now known as the Textile Workers Union of America, is a labor organiza- tion affiliated with the Congress of Industrial Organizations and admitting to its membership employees of the respondent. 4. Upon the basis of the facts stipulated in paragraph 1 above, the pleadings heretofore filed, this stipulation , and by agreement of the parties, the National Labor Relations Board may enter its order in the following form in the above-entitled case: , ORDER On the basis of this Stipulation, the National Labor Relations Board hereby orders that Appalachian Mills Company, its offi- cers, agents, successors, and assigns, shall: 1. Cease and desist : (a) From in any manner interfering with, restraining, or coercing its employees in the exercise of the rights to self-organ- ization, 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. 2. Take the following affirmative action in order to effectuate the purposes and the policies of the National Labor Relations Act : (a) Post immediately notices in conspicuous places through- out its plant at Knoxville, Tennessee, to its employees, and main- tain such notices for, a period of at least thirty (30) consecutive days from the date of posting, stating that the respondent will cease and desist in the manner set forth in paragraph 1 above; (b) Inform the Regional Director for the Tenth Region in writing within ten (10) days from the date of the approval of this order what steps the respondent has taken to comply herewith. 5. The parties hereto having agreed to a settlement concerning the reinstatement with back pay of the individuals listed below, 768 DECISIONS OF NATIONAL LABOR RELATIONS BOARD whose names appear in the Complaint, the Complaint shall be dismissed as to them : John Papas W. H. Massingill Robert Kelley Frank McPherson Mrs. Robert Kelley Mrs. Sara Lawson Ed Houser Mrs. Ann Grubbs Ben Meridith Charles Holt Bruce Browning Mrs. Sam Smith Sterling Lawson Raymond Howard Boling Chas. Richard Faulkner Miss Hazel Koehn Miss Lula Smith 6. It further appearing to the Board that as to the other em- ployee named in the Complaint, to wit: Berline Haun, the Trial Examiner having reported adversely and no protest having been filed as to her, it is further ordered that the Complaint be, and it is, hereby dismissed. 7. The respondent, Appalachian Mills Company, hereby con- sents to the entry by the United States Circuit Court of Appeals for the appropriate circuit, upon application by the Board, of a consent decree enforcing an order of the Board in the form hereinabove set forth, and hereby waives further notice of the application for such decree. 8. It is understood and agreed that this Stipulation is subject to the approval of the National Labor Relations Board and shall become effective immediately upon the granting of such ap- proval. Upon approval of the Board of this Stipulation, all petitions, and supplemental petitions heretofore filed by the re- spondent with the Board, requesting the dismissal of the com- plaint, shall be considered withdrawn. It is further understood and agreed that this Stipulation shall be filed with the Chief Trial Examiner in Washington, D. C., and when so filed, shall become a part of the record herein. 9. It is further understood and agreed that this Stipulation contains all provisions on which the parties are in agreement and that there are no ancillary agreements or understandings between the parties not included within the body of this Stipulation. On November 1, 1939, the Board issued its order approving the stipulation and making it part of the record in the case. APPALACHIAN MILLS COMPANY 769 Upon the entire record in the case, the Board makes the following: FINDINGS OF FACT I. THE BUSINESS OF THE RESPONDENT The respondent, a Tennessee corporation with its office and plant located at Knoxville, Tennessee, is engaged in the manufacture of underwear, sweater coats, bathing suits, and cotton and merino yarns. All of the raw materials used by the respondent, consisting of baled cotton, baled wool tops, cotton yarns, wool yarns, and findings, are obtained from points outside the State of Tennessee. In 1938 the respondent purchased approximately 8,000,000 pounds of cotton at a cost of approximately 14 cents a pound, approximately 687,000 pounds of wool tops, 12,000 pounds of wool yarn, and numerous findings. The respondent ships 95 per cent of its products, which in 1938 had a total sales value of approximately $4,500,000, to points outside the State of Tennessee and maintains sales offices in New York City, Chicago, Illinois, and San Francisco, California. It employs an average of 2,000 employees, and in 1938 its pay roll was approximately $1,500,000. 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, stipulation, and the entire record in the case, and pursuant to Section 10 (c) of the Na- tional Labor Relations Act, the National Labor Relations Board hereby orders that the respondent, Appalachian Mills Company, its officers, agents, successors, and assigns, shall: 1. Cease and desist from in any manner interfering with, restrain- ing, 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 purposes of collective bargain- ing or other mutual aid or protection, as guaranteed in Section 7 of the National Labor Relations Act. 2. Take the following affirmative action which the Board finds will effectuate the policies of the National Labor Relations Act : (a) Immediately post notices in conspicuous places throughout its plant at Knoxville, Tennessee, to its employees, and maintain such notices for a period of at least thirty (30) consecutive days from the date of posting, stating that the respondent will cease and desist in the manner set forth in paragraph 1 above; 770 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (b) Inform the Regional Director for the Tenth Region in writing within ten (10) days from the date of this Order what steps the respondent has taken to comply herewith. AND IT IS FURTHER ORDERED that the complaint, as amended, in so far as it alleges that the respondent has engaged in unfair labor practices with respect to John Papas, Robert Kelley, Mrs. Robert Kelley, Ed Houser, Ben Meridith, Bruce Browning, Sterling Law- son, Chas. Richard Faulkner, W. H. Massingill, Frank McPherson, Mrs. Sara Lawson, Mrs. Ann Grubbs, Charles Holt, Mrs. Sam Smith, Raymond Howard Boling, Hazel Koehn, Lula Smith, and Berline Haun, be, and it hereby is, dismissed.