Saranac Machine Co.

In the Matter Of SARANAC MACHINE COMPANY AND SARANAC AUTO- MATIC MACHINE CORP. and UNITED AUTOMOBILE WORKERS OF AMERICA, LOCAL No. 389 (A. F. L.) Case No. R-1613.-Decided December 5, 1939 Shipping Container and Wire-bound Box Machine Industry-Investigatipn of Representatives : controversy concerning representation of employees : refusal of Companies to bargain until election conducted by Board-Unit Appropriate for Collective Bargaining: production employees of both Companies, including millwrights, but excluding supervisory officials, confidential clerks, timekeepers, drafting-room employees, office employees, and watchmen ; stipulation as to- Election: ordered ; eligibility governed by pay rolls preceding date of Direction. Mr. Earl R. Cross, for the Board. Mr. A. Edward Brown, of St. Joseph, Mich., for the Companies. Mr. J. L. Busby, of Detroit, Mich., for the Union. Mr. Robert D. Allen, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF THE CASE On July 28, 1939, International Union, United Automobile Workers of America, Local No. 389, affiliated with the A. F. L.,' herein called the Union, filed with the Regional Director for the Seventh Region (Detroit, Michigan) a petition and, on October 18, 1939, an amended petition alleging that a question affecting commerce had arisen concerning the representation of employees of Saranac Machine Company and Saranac Automatic Machine Corporation," Benton Harbor, Michigan, herein called, respectively, the Company and the Corporation, and collectively referred to as the Companies, and requesting an investigation and certification of representatives pur- suant to Section 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. On September 9, 1939, the National Labor ' Incompletely designated in the formal papers herein as United Automobile Workers of America, Local No. 389 (A. F. L.). 2 Incompletely designated in the formal papers herein as Saranac Automatic Machine Corp. 18 N. L. R. B., No. 20. 138 SARANAC MACHINE COMPANY 139 Relations Board, herein called the Board, acting pursuant to Section 9 (c) of the Act and Article III, Section 3, of National Labor Re- lations Board Rules and Regulations-Series 2, ordered an investi- gation and authorized the Regional Director to conduct it and to provide for an appropriate hearing upon due notice. On October 18, 1939, the Regional Director issued a notice of hearing, copies of which were duly served upon the Companies, and upon the Union. Pursuant to the notice, a hearing was held on November 9, 1939, at Benton Harbor, Michigan, before Joseph L. Hektoen, the Trial Examiner duly designated by the Board. The Board, the Companies, and the Union were represented by counsel and participated in the hearing. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evidence bear- ing on the issues was afforded all parties. During the course of the hearing the Trial Examiner made several rulings on objections to the admission of evidence. The Board has reviewed these 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 1. THE BUSINESSES OF THE COMPANIES Saranac Machine Company is a Michigan corporation with its principal office and place of business located at Benton Harbor, Michigan, where it is engaged in the production of machinery, and parts therefor, for the manufacture of shipping containers. The principal raw materials used by the Company are gray iron, malle- able iron, steel, brass, and aluminum castings, cold drawn, hot roll, .and tube steel bars, and miscellaneous items such as screws, bolts, and chain. Of such raw materials used during the period from October 1, 1938, to September 30, 1939, of an aggregate value of $36,061, 59 per cent were purchased outside the State of Michigan. During the same period, of the Company's products, having an aggregate value of $241,492, 93.6 per cent were sold to customers located outside the State of Michigan. Saranac Automatic Machine Corporation is a Delaware corpora- tion with its principal office and place of business located at Benton Harbor, Michigan, where it is engaged in the production of machines, and parts therefor, for the' manufacture of wire-bound boxes. The principal raw materials used by the Corporation are gray iron, malle- able iron, aluminum, bronze, and steel castings, hot roll, cold roll, and tool steel parts, structural shapes, and miscellaneous items con- 140 DECISIONS OF NATIONAL LABOR RELATIONS BOARD sisting of nuts, bolts, keys, washers, and screws. During the period from October 1, 1938, to September 30, 1939, the Corporation spent $1,431 for such raw materials, approximately 72 per cent of which were purchased outside the State of Michigan. During the same period, more than 95 per cent of the Corporation's products, having an aggregate total value of $34,481, were sold to purchasers outside the State of Michigan. Although the Companies are separate corporations, the offices of president, secretary and assistant treasurer, and treasurer of each of the Companies are held by the same individuals, as are the positions of general manager and superintendent. The Companies occupy separate but adjoining buildings, and the nature of their manufactur- ing processes are similar. Employees are not transferred from the pay roll of onel of the Companies to that of the other but "it is the usual practice" to transfer employees from one plant to the other in order to keep employment uniform. II. THE ORGANIZATION INVOLVED International Union, United Automobile Workers of America, Local No. 389, affiliated with the A. F. L., is a labor organization admitting to membership the production and maintenance employees of the Companies. III. THE QUESTION CONCERNING REPRESENTATION In June 1937 the Union presented to the Companies a proposed contract which the Companies, after discussion with union repre- sentatives, rejected. The Union again sought to bargain collectively with the Companies on June 19, 1939, at which time the Union re- quested recognition as the exclusive bargaining representative of the Companies' employees in a unit claimed to be appropriate. The Companies expressed doubt that the Union represented a majority of such employees and the Union refused to present documentary proof of such fact. On June 22, 1939, the Companies notified the Union that majority representation determined by an election con- ducted by the Board would be necessary before the Companies would consider granting the Union exclusive recognition. We find that a question has arisen concerning representation of employees of the Companies. 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 Companies SARANAC MACHINE COMPANY 141 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 com- merce and the free flow of commerce. V. THE APPROPRIATE UNIT At the hearing it was stipulated by all parties that the production employees of both Companies including millwrights, but excluding supervisory officials, confidential clerks, timekeepers, drafting-room employees, office employees, and watchmen, constitute a single appro- priate unit for the purposes of collective bargaining with the Compa- nies. We see no reason for departing from the unit agreed upon. We find that the production employees of both Companies, includ- ing millwrights, but excluding supervisory officials, confidential clerks, timekeepers, drafting-room employees, office employees, and watchmen, constitute a single unit appropriate for the purposes of collective bargaining with the Companies, and that said unit will insure to the employees of the Companies the full benefit of their right to self-organization and to collective bargaining and otherwise effectuate the policies of the Act. VI. THE DETERMINATION OF REPRESENTATIVES We find that the question concerning representation which has arisen can best be resolved by an election by secret ballot. No position was taken by the parties as to the date as of which eligibility of employees to vote in such an election should be deter- mined. We see no reason for not determining eligibility as of the present time. We shall direct that the employees within the appropri- ate unit whose names appear upon the Companies' pay rolls im- mediately preceding this Decision and Direction of Election, including those who did not work during such pay-roll period because they were ill or on vacation, and those 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 the repre- sentation of employees of Saranac Machine Company and Saranac Automatic Machine Corporation, Benton Harbor, Michigan, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the Act. .142 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 2. The production employees of both Companies, including mill- wrights, but excluding supervisory officials, confidential clerks, time- keepers, drafting-room employees, office employees, and watchmen, constitute a single unit appropriate for the purposes of collective bargaining, within the meaning of Section 9 (b) of the 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 Re- lations 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 Saranac Machine Company and Saranac Automatic Machine Corporation, Ben- ton Harbor , Michigan, 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, under the direction and supervision of the Regional Director for the Seventh 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 production employees of Saranac Machine Company and Saranac Automatic Machine Corporation , whose names appear upon the Companies' pay rolls immediately preceding the date of this Direction , including millwrights, those who did not work during such pay-roll period be- cause they were ill or on vacation, and those who were then or have since been temporarily laid off, but excluding supervisory officials, confidential clerks, timekeepers , drafting-room employees, office employees, watchmen, and those who have since quit or been dis- charged for cause, to determine whether or not they desire to be represented by International Union, United Automobile Workers of America, Local No. 389, affiliated with the A. F. L., for the purposes of collective bargaining.