The Midland Steel Products Co.

In the Matter of THE MIDLAND STEEL PRODUCTS COMPANY, DETROIT PRESSED STEEL DIVISION and LOCAL 410, INTERNATIONAL UNION, UNITED AUTOMOBILE WORKERS OF AMERICA, AFFILIATED WITH CON- GRESS OF INDUSTRIAL ORGANIZATIONS Case No. R-4565.-Decided November 00, 1939 Automobile Parts Manufacturing Industry-Labor Organizations Involved: schism in ranks of union resulting from split in parent labor organization ; two groups respectively affiliated with C. I. 0. and A. F. L.; groups now constitute separate labor organizations-Investigation of Representatives: controversy con- cerning representation of employees : doubt as to which is representative of employees under contract with company ; contract by its terms renewed for year in absence of termination by either party, no bar to determination of representatives in view of confusion resulting from split and the contractual 'claims of the two organizations-Unit Appropriate for Collective Bargaining: :stipulated ; production and maintenance employees including all tool and die employees, all shipping and receiving employees, truckers, and stock chasers, excluding foremen, supervisors, assistant foremen, timekeepers, plant protection -employees, and salaried employees-Election Ordered Mr. Earl R. Cross, for the Board. Mr. TV. T. Kinder, of Cleveland, Ohio, for the Company. Mr. Jack N. Tucker, of Detroit, Mich., for the C. I. O.-U. A. W. Mr. J. L. Busby, of Detroit, Mich., for the A. F. L.-U. A. W. Mr. Albert J. Hoban, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF THE CASE On June 30, 1939, Local 410, International Union, United Auto- mobile Workers of America, affiliated with the Congress of Industrial Organizations, herein called the C. I. O.-U. A. W., filed with the Regional Director for the Seventh Region (Detroit, Michigan) a petition alleging that a question affecting commerce had arisen con- cerning the representation of employees of The Midland Steel Prod- ucts Company,' Detroit Pressed Steel Division, herein called the 1 Incorrectly referred to in the petition as "Midland Steel Products Co." 17 N. L. R. B., No. 84. 936 THE MIDLAND STEEL PRODUCTS COMPANY 937 -Company, and requesting an investigation and certification of repre- sentatives pursuant to Section 9 (c) of the National Labor Relations Act, 49 State 449, herein called the Act. On October 4, 1939, the National Labor Relations Board, herein called the Board, acting pur- suant to Section 9 (c) of the Act and Article III, Section 3, of National Labor Relations Board Rules and 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 October 6, 1939, the Regional Director issued a notice of hear- ing, copies of which were duly served upon the Company, upon the C. I. O.-U. A. W., and upon Local 410, International Union, United Automobile Workers of America., affiliated with the American -Fed- -eration of Labor, herein called the A. F. L.-U. A. W., a labor organi- zation claiming to represent employees directly affected by the investigation. Pursuant to notice, copies of which were duly served upon the parties, a hearing was held on October 19, 1939, at Detroit, Michigan, before Horace A. Ruckel, the Trial Examiner duly designated by the Board. At the hearing the Company filed an answer to the petition. The Board, the Company, the C. I. O.-U. A. W., and the A. F. L.- U. A. W. were represented by counsel and participated in the hearing. Full opportunity to be heard, to examine and cross-examine wit- nesses, and to introduce evidence bearing on the issues was afforded all parties. At the close of the hearing the A. F. L.-U. A. W. moved to dismiss the petition. The motion was denied by the Trial Exam- iner. During the hearing the Trial Examiner made a number of other rulings on motions and on objections to the admission of evi- dence. The Board has reviewed all the rulings of the Trial Exam- iner 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 1. THE BUSINESS OF THE COMPANY The Midland Steel Products Company is an Ohio corporation en- gaged in the manufacture of automobile frames, brake equipment, and heavy stampings at its plant in Detroit, Michigan, known as the Detroit Pressed Steel Division. The Company also maintains a plant at Cleveland, Ohio, which is not involved in this proceeding. . The value of the raw materials used annually by the Company and consisting principally of steel, malleable iron, rivets, and welding wire - amounts to over $1,000,000. More than 50 per cent of these raw materials are shipped from points outside the State of Michigan 938 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to the Detroit Pressed Steel Division. Sales of finished products manufactured at the Detroit Pressed Steel Division are in excess of $1,000,000 annually. Approximately 90 per cent of these products are shipped to plants within the State of Michigan where they are used by their purchasers in the manufacture of automobiles. The remainder of the products manufactured at the Detroit Pressed Steel Division are shipped to customers located outside the State of Michigan. The Company employs between 1,400 and 1,500 persons at the Detroit Pressed Steel Division. II. THE ORGANIZATIONS INVOLVED Early in 1939, a division occurred in the ranks of International Union, United Automobile Workers of America, herein called the International Union, a labor organization affiliated with the Con- gress of Industrial Organizations. The division has resulted in two separate labor organizations, one affiliated with the Congress of In- dustrial Organizations and the other affiliated with the American Federation of Labor.2 As a result of the schism the members of Local 410 of the Inter- national Union, which admitted to membership the employees of the Company, divided into two rival groups. One, the petitioning union, is affiliated with the C. I. O.-U. A. W.; the other, claiming to represent employees directly affected by the investigation, is affil- iated with the A. F. L.-U. A. W. We find that Local 410, International Union, United Automobile, Workers of America, affiliated with the Congress of Industrial Or- ganizations, and Local 410, International Union, United Automobile Workers of America, affiliated with. the American Federation of Labor, are labor organizations admitting to membership employees of the Company engaged at the Detroit Pressed Steel Division. III. THE QUESTION CONCERNING REPRESENTATION On May. 26, 1938, the Company and Local 410, International Union, United Automobile Workers of America, herein called Local 410,. signed a contract providing for exclusive recognition and setting, forth wages, hours, and working conditions. The contract was for a period of 1 year and was automatically renewable in the absence of notice of termination given by one of the parties . at least 30 days prior to its expiration date. In May 1939, after the split in the International Union, and while, the Company was negotiating with an A. F. L.-U. A. W. committee, 2 Matter of Chrysler Corporation and United Automobile Workers of America, Local 371, affiliated soith the C. I. O. et at., 13 N. L. R. B. 1303. THE MIDLAND STEEL PRODUCTS COMPANY 939 :representatives of the C. I. O.-U. A. W. notified the Company that they represented a majority of the members of Local 410 and that collective bargaining negotiations should be conducted with their committee. On June 20, 1939, the Company and the A. F. L.- U. A. W. committee entered into an agreement which recited that neither party to the contract of May 26, 1938, had given notice of -termination, and that it was therefore still in effect. The A. F. L.-U. A. W. and the C. I. O.-U. A. W. each claims to be the only organization authorized to represent the employees covered by the agreement. Under the circumstances we do not consider the contract between the Company and Local 410 a bar to our deter- mination of representatives. In the absence of such a ,determination, the confusion resulting from the split in Local 410 and the con- tractual claims of the two labor organizations will seriously interfere with collective bargaining between the Company and its employees.3 We find that a question has arisen concerning representation of the employees of the Company. IV. THE EFFECT OF THE QUESTION CONCERNING REPRESENTATION UPON COMMERCE We find that the question concerning representation which has <Brisen, occurring in connection with the operations of the Company described in Section I above, has a close, intimate, and substantial relation to trade, traffic, and commerce among the several States and tends to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE APPROPRIATE UNIT At the hearing the Company and both labor organizations stipu- lated with respect to the appropriate unit. We see no reason for departing from the desires of the parties for a unit which has been the basis of successful collective bargaining since 1937. We find that the production and maintenance employees of the Company engaged at the Detroit Pressed Steel Division, including all tool and dye employees, all shipping and receiving employees, truckers and stock chasers, but excluding foremen, supervisors, as- sistant foremen, timekeepers, plant protection employees, and salaried employees, constitute a unit appropriate for the purposes of collective :bargaining and that said unit will insure to employees of the Com- pany the full benefit of their right to self-organization and to col, lective bargaining; and otherwise effectuate the policies of the Act. s Matter of Brewster Aeronautical Corporation and International Union, United Automo- bile Workers of America, Local 365, affiliated with the Congress of Industrial Organizations, 14 N. L. R. B. 1024. 940 DECISIONS OF NATIONAL LABOR RELATIONS BOARD VI. THE DETERMINATION OF REPRESENTATIVES The C. I. O.-U. A. W. claims to represent a majority of the em- ployees of the Company in the appropriate unit and there is evidence- that the A. F. L.-U. A. W. represents employees in said unit. We. find that the question concerning representation which has arisen. can best be resolved by an election by secret ballot. Those employees- in the appropriate unit who were employed by the Company during- the pay-roll period next preceding the date of the issuance of this, Direction of Election, including employees who did not work during- such pay-roll period because they were ill or on vacation, and em- ployees who were then or have since been temporarily laid off, but excluding those who have since quit or been discharged for cause,. shall be eligible to vote. 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 represen-- tation of employees of The Midland Steel Products Company, De- troit Pressed Steel Division, Detroit, Michigan, within the meaning- of Section 9 (c) and Section 2 (6) and (7) of the National Labor- Relations Act. 2. The production and maintenance employees of the Company en- gaged at the Detroit Pressed Steel Division, including all tool and. dye employees, all shipping and receiving employees, truckers, and stock chasers, but excluding foremen, supervisors, assistant foremen, timekeepers, plant protection employees, and salaried employees, con- stitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9 (a) 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 authorized by the Board to ascertain representatives for collective bargaining with The Mid- land Steel Products Company, Detroit Pressed Steel Division, an election by secret ballot shall be conducted as early as possible, but not later than 30 days from the date of this Direction of Election, under the direction and supervision of the Regional Director for the Seventh Region, acting in this matter as agent for the National THE MIDLAND STEEL PRODUCTS COMPANY 941 Labor Relations Board and subject to Article III, Section 9, of said Rules and Regulations, among all production and maintenance em- ployees engaged at the Detroit Pressed Steel Division who were- employed by the Company during the pay-roll period next preceding the date of this Direction, including all tool and dye employees, all. shipping and receiving employees, truckers, and stock chasers, and those employees who did not work during such pay-roll period be- cause they were ill or on vacation or who were then or have since- been temporarily laid off, but excluding foremen, supervisors, assist- ant foremen, timekeepers, plant protection employees, and salaried- employees, and employees who have since quit or been discharged for cause, to determine whether they desire to be represented by Local- 410, International Union, United Automobile Workers of America,, affiliated with the Congress of Industrial Organizations, or by Local 410, International Union, United Automobile Workers of America,_ affiliated with the American Federation of Labor, or by neither.