Holly Hosiery Mills

In the Matter of HOLLY HOSIERY MILLS and AMERICAN FEDERATION OF HOSIERY WORKERS Case No. C-1414.-Decided December 8, 1939 Hosiery Manufacturing Industry-Settlement: stipulation providing for com- pliance with the Act, including reinstatement with back pay as to four persons, back pay as to another person, and disestablishment of company -dominated union-Order: entered on stipulation. Mr. Vincent A. Burns, for the Board. Powell and Parker, by Mr. Harold T. Parker, of Mt. Holly, N. J., for the respondent. Mr. Isadore Katz and Mr. Morris Hoffman, of Philadelphia, Pa., for the Union. Mr. Stanley K. Heilbron, of Mt. Holly, N. J., for the Independent. Mr. Ray Johnson, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon charges and amended charges duly filed by American Fed- eration of Hosiery Workers, affiliated with the Congress of Industrial Organizations, herein called the Union, the National Labor Relations Board, herein called the Board, by the Regional Director for the Fourth Region (Philadelphia, Pennsylvania), issued its complaint dated August 8, 1939, and amended complaint dated August 19, 1939, against Holly Hosiery Mills, Mount Holly, New Jersey, 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), (2), (3), and (5) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. Copies of the complaint and amended complaint and notice of hearing thereon were duly served upon the respondent, the Union, NOTE : On July 10, 1939, the Board issued an order consolidating this case and Matter of Holly Hosiery Mills and American Federation of Hosiery Workers (Case No. IV-R-325), involving a petition for investigation and certification of representatives. On November 14, 1939, the Board revoked this order. 18 N. L. R. B., No. 30. 195 196 DECISIONS OF NATIONAL LABOR RELATIONS BOARD and Hosiery Workers' Independent Union, herein called the Inde- pendent, a labor organization alleged to have been dominated by the respondent. Concerning the unfair labor practices the complaint and amended complaint alleged in substance (1) that the respondent dominated and interfered with the formation and administration of the Independent and gave it financial and other support; (2) that the respondent dis- charged and refused to reinstate William A. Edwards, Dorothy Brown, Alice Bublewitz, and Doris Mackintosh, and discriminated against Alice Lewallen in regard to the terms and conditions of her employment by assigning her less work than other employees of less seniority because they joined the Union and engaged in concerted activities for the purposes of collective bargaining and other mutual aid and protection; (3) that in April and May 1939, and at all times thereafter, a majority of the employees in an appropriate unit had designated the Union as their representative for the purposes of col- lective bargaining, and that about May 1939, and thereafter, the re- spondent refused to bargain with the Union as the exclusive repre- sentative of all the employees in the appropriate unit; (4) that the respondent, prior to the Independent's formation in April and May 1939; by threatening to discharge its employees caused many of them to renounce their membership in the Union and thereby, and by other acts, interfered with, restrained, and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act. On August 15, 1939, the Independent filed with the Regional Director a motion to intervene. On the same day the Regional Director granted the motion. Thereafter the respondent filed answers to the complaint and amended complaint in which it admitted the allegations concerning the nature and scope of its business but denied the allegations of un- fair labor practices. On August 15, 1939, the Independent filed an answer denying that it was dominated by the respondent. Pursuant to notice, and notices of postponement, a hearing was held on August 22, 23, 24, and 25, 1939, at Mount Holly, New Jersey, before Whitley P. McCoy, the Trial Examiner duly designated by the Board. The Board, the respondent, the Union, and the Independent were represented by counsel and 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. On September 1, 1939, the respondent, the Union, the Independent, and counsel for the Board .entered into a stipulation in settlement of the case. This stipulation provides as follows : STIPULATION It is hereby stipulated by and between Holly Hosiery Mills, respondent herein; American Federation of Hosiery Workers HOLLY HOSIERY MILLS 197 (CIO), a party herein; the Holly Hosiery Workers' Independent Union, a party herein; and Vincent A. Burns, attorney for the' National Labor Relations Board, that: I. Upon charges duly filed by the American Federation of Hosiery Workers ( CIO), the National Labor Relations Board, by the Regional Director for the Fourth Region, acting pursuant to authority granted in Section 10 (b) of the National Labor Relations Act (49 Stat. 449) and its Rules and Regulations, Series 2, Article IV, Section 1, issued its amended complaint on the 22nd day of August , 1939, against the Holly Hosiery Mills, respondent herein. II. The respondent is and has been since 1932 a corporation organized and existing by virtue of the laws of the State of New Jersey, wherein at the town of Mount Holly, County of Burling- ton, it maintains its principal office, and is now and has con- tinuously been engaged in the operation of a plant in the said town of Mount Holly, hereinafter referred to as the Mount Holly plant, in the manufacture of women's hosiery. III. The respondent , in the course and conduct of its business and its operations at its Mount Holly plant , caused and at all times herein mentioned has continuously caused raw material, to wit, silk, to be shipped and transported in interstate commerce from and through States of the United States other than the State of New Jersey, to its Mount Holly plant in the State of New Jersey; and caused and has continuously caused its manufactured product, to wit, hosiery, to be shipped and transported in inter- state commerce from its Mount Holly plant, in the State of New Jersey, to, into, and through States of the United States other than the State of New Jersey. IV. The raw materials used in the manufacture of its product, as set forth above, consist of silk. Approximately 60 percent of this silk is imported into the State of New Jersey from the Com- monwealth of Pennsylvania. Forty percent of the silk comes from throwing plants in the State of New Jersey . All of the raw silk originates in Japan. Approximately 45 percent of the manufactured hosiery is shipped to a dyeing plant in the Commonwealth of Pennsylvania; 45 percent to a dyeing plant in the State of New Jersey ; the remaining 10 percent to other plants outside of the State of New Jersey. The volume of business during the past year has been approxi- mately 83,200 dozen pairs of hosiery. The average selling price is about $4.60 per dozen . This price fluctuates between $4.50 and $4.75 per dozen . The value of the silk which goes into the manu- 198 DECISIONS OF NATIONAL LABOR RELATIONS BOARD factured hose is approximately $2.60 a dozen. The amount of silk per dozen pairs is approximately 12 ounces. In the ordinary course of its business, during normal seasons, Holly Hosiery Mills has on its pay roll approximately 145 employees. The shipments of the raw material, as set forth above, into the State of New Jersey from other States of the United States and foreign countries, and the shipments of the manufactured hose, as above set forth, to other States of the United States, are made by truck and rail. V. Respondent, Holly Hosiery Mills, is engaged in interstate commerce within the meaning of the National Labor Relations Act, and the decisions of the United States Supreme Court thereunder. VI. The taking of further testimony or evidence before the Trial Examiner in this matter, and the making of findings of fact and conclusions by the Board, pursuant to the provisions of the National Labor Relations Act, are hereby expressly waived by all the parties herein. VII. The American Federation of Hosiery Workers (CIO), hereinafter called the Union, is a labor organization within the meaning of Section 2, Subdivision (5) of the said Act. VIII. Upon this stipulation, if approved by the National Labor Relations Board, and upon the pleadings which include the amended complaint and the answer denying the allegations of the amended complaint, an order may forthwith be entered by said Board, which shall have the same force and effect as if made after a full hearing, presentation of evidence, and the making of findings thereon, providing as follows : The respondent, Holly Hosiery Mills, and its officers, agents, successors, and assigns, shall: 1. Cease and desist from : (a) In any manner interfering with, restraining, or coercing its employees in the exercise of their rights to self-organization, 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 bar- gaining or other mutual aid or protection as guaranteed in Section 7 of the Act : (b) In any manner dominating or interfering with the ad- ministration of the Holly Hosiery Workers' Independent Union; with the formation or administration of any other labor or- ganization of their employees, or from contributing aid and sup- port to said organization; from recognizing or dealing in any manner with the Holly Hosiery Workers' Independent Union HOLLY H!OSID, R•Y MILLS 199 or any successor thereof, or any group that purports to represent said organization, or from forming or maintaining any groups or designating any individuals to act as the representative of the employees for the purposes of collective bargaining respecting any of the terms or conditions of employment; (c) Discouraging membership in the American Federation of Hosiery Workers (CIO), or any other labor organization of its employees, or in any manner discriminating in regard to their hire and tenure of employment or any term or condition of em- ployment because of their membership in or assistance in behalf of the American Federation of Hosiery Workers (CIO), or any other labor organization. 2. Take the following affirmative action : (a) Withdraw all recognition from the Holly Hosiery Work- ers' Independent Union as the representative of its employees, or any of them, for the purpose of dealing with respondent concern- ing grievances, labor disputes, wages, rates of pay, hours of employment, or other conditions of employment; and so dis- establish said Holly Hosiery Workers' Independent Union as the representative of its employees; (b) Inform in writing the officers of Holly Hosiery Workers' Independent Union that respondent will not in any manner deal with or recognize the Holly Hosiery Workers' Independent Union ; (c) Inform all of its officials and agents, including the secre- tary, treasurer, foremen, foreladies, and other supervisory em- ployees, that they shall not threaten employees in any manner because of their membership in any labor organization in general, or the American Federation of Hosiery Workers (CIO), in particular; (d) Offer to Alice Lewallen on or before September 15, 1939, full and unconditional reinstatement to her former shift, with- out loss of seniority or pay to such extent as previously enjoyed and without prejudice to any rights and privileges previously enjoyed by her; pay to Alice Lewallen $55.72, in payment of the amount she would have received if not removed from her former position with respondent; she shall be reinstated to her former position by approximately October 1, 1939, or when 45-gauge machine number 1 resumes three shifts; Offer to Alice Bublewitz, Dorothy Brown, and Doris Mackin- tosh on or before September 1, 1939, full and unconditional rein- statement with back pay to their former positions without loss of seniority to,such extent as previously enjoyed and without prejudice to any rights and privileges previously enjoyed by them; pay to them, respectively, $57.19; $46.91; and $43.45; 283029-41-vol. 18-14 200 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Pay to William A. Edwards, on or before September 1, 1939, $664.00, in lieu of pay he would have received had he been em- ployed by the respondent since April 10, 1939, the date of his discharge ; (e) Post and keep visible in a prominent place in each depart- ment of respondent's Mount Holly plant, for a period of sixty (60) days after receipt, copies of the Order entered by the Na- tional Labor Relations Board, and notices stating that the re- spondent will cease and desist in the manner aforesaid and respondent will take the affirmative action as aforesaid; (f) Notify the Regional Director for the Fourth Region, in writing, within ten (10) days from the date of the entry of the Order by the Board, of what steps respondent has taken to comply therewith. IX. It is stipulated and agreed that the National Labor Re- lations Board may dismiss that part of the amended complaint which alleges violation of Section 8, Subdivision (5) of the National Labor Relations Act; namely, paragraphs 14, 15, and 16 of said amended complaint. X. It is stipulated and agreed that this stipulation may and shall be substituted for and in the stead of a stipulation executed by the undersigned under date of August 25, 1939, and further, that this stipulation may be filed with the Chief Trial Examiner for the National Labor Relations Board in Washington, D. C. XI. It is stipulated and agreed that the appropriate United States Circuit Court of Appeals may, upon application of the National Labor Relations Board, enter a decree enforcing the aforesaid Order of the Board, all parties to this stipulation hereby expressly waiving their rights to contest the entry of such decree in the appropriate United States Circuit Court of Ap- peals, and further, expressly waiving their rights to receive notice of the filing by the National Labor Relations Board of an appli- cation for the entry of such a decree. XII. It is further stipulated and agreed that this stipulation is subject to the approval of the National Labor Relations Board. XIII. It is further stipulated and agreed that the entire agree- ment is contained within the terms of this stipulation, and that there is no verbal agreement of any kind which varies, alters, or adds to this stipulation. On November 14, 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 a decision and order by the Board. Upon the above stipulation and the entire record in the case, the Board makes the following HOLLY HOSIERY MILLS 201 FINDINGS OF FACT The respondent, Holly Hosiery Mills, a New Jersey corporation, with its principal office and place of business at Mount Holly, New Jersey, is engaged in the manufacture of women's hosiery. At its plant at Mount Holly, New Jersey, the respondent annually uses raw silk amounting to approximately $216,320 in value, of which ap- proximately 60 per cent is shipped to the respondent from the Com- monwealth of Pennsylvania, and approximately 40 per cent from throwing plants in the State of New Jersey. All of the raw silk used by the respondent originates in Japan. The respondent annually manufactures approximately 83,200 dozen pairs of hosiery amounting to approximately $382,720 in value and 62,400 pounds in bulk, approximately 55 per cent of which is shipped to dyeing plants outside the State of New Jersey. The respondent admits that it is engaged in commerce 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 pursuant to Section 10 (c) of the National Labor Relations Act, the National Labor Relations Board hereby orders that Holly Hosiery Mills, Mount Holly, New Jersey, its officers, agents, successors, and assigns, shall : 1. Cease and desist from : (a) In any manner interfering with, restraining, or coercing its employees in the exercise of their rights 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 purpose of collective bargaining or other mutual aid or protection as guaranteed in Section 7 of the Act; (b) In any manner dominating or interfering with the adminis- tration of the Holly Hosiery Workers' Independent Union; with the formation or administration of any other labor organization of their employees, or from contributing aid and support to said organization; from recognizing or dealing in any manner with the Holly Hosiery Workers' Independent Union or any successor thereof, or any group that purports to represent said organization, or from forming or maintaining any groups or designating any individuals to act as the representative of the employees for the purposes of collective bargain- ing respecting any of the terms or conditions of employment; (c) Discouraging membership in the American Federation of Hosiery Workers (CIO), or any other labor organization of its em- 202 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ployees, or in any manner discriminating in regard to their hire and tenure of employment or any term or condition of employment be- cause of their membership in or assistance in behalf of the Amer- ican Federation of Hosiery Workers (CIO), or any other labor organization. 2. Take the following affirmative action : (a) Withdraw all recognition from the Holly Hosiery Workers' Independent Union as the representative of its employees, or any of them, for the purpose of dealing with respondent concerning griev- ances, labor disputes, wages, rates of pay, hours of employment, or other conditions of employment; and so disestablish said Holly Hosiery Workers' Independent Union as the representative of its employees; (b) Inform in writing the officers of Holly Hosiery Workers' Inde- pendent Union that respondent will not in any manner deal with or recognize the Holly Hosiery Workers' Independent Union; (c) Inform all of its officials and agents, including the secretary, treasurer, foremen, foreladies, and other supervisory employees, that they shall not threaten employees in any manner because of their membership in any labor organization in general, or the American Federation of Hosiery Workers (CIO), in particular; (d) Offer to Alice Lewallen on or before September 15, 1939, full and unconditional reinstatement to her former shift, without loss of seniority or pay to such extent as previously enjoyed and without prejudice to any rights and privileges previously enjoyed by her; pay to Alice Lewallen $55.72, in payment of the amount she would have received if not removed from her former position with respondent; she shall be reinstated to her former position by approximately Oc- tober 1, 1939, or when 45-gauge machine number 1 resumes three shifts ; Offer to Alice Bublewitz, Dorothy Brown, and Doris Mackintosh on or before September 1, 1939, full and unconditional reinstatement with back pay to their former positions without loss of seniority to such extent as previously enjoyed and without prejudice to any rights and privileges previously enjoyed by them; pay to them, respectively, $57.19; $46.91; and $43.45; Pay to William A. Edwards, on or before September 1, 1939, $664.00, in lieu of pay he would have received had he been employed by the respondent since April 10, 1939, the date of his discharge; (e) Post and keep visible in a prominent place in each department of respondent's Mount Holly plant, for a period of sixty (60) days after receipt, copies of the Order entered by the National Labor Re- lations Board, and notices stating that the respondent will cease and desist in the manner aforesaid and respondent will take the affirma- tive action as aforesaid; HOLLY HOSIERY MILLS 203 (f) Notify the Regional Director for the Fourth Region, in writ- ing, within ten (10) days from the date of the entry of the Order by the Board, of what steps respondent has taken to comply therewith. AND IT IS HEREBY FURTHER ORDERED that the complaint, as amended, in so far as it alleges that the respondent has engaged in unfair labor practices within the meaning of Section 8 (5) of the Act, be, and it hereby is, dismissed.