Interstate Aircraft and Engineering Corp.

In the Matter Of INTERSTATE AIRCRAFT AND ENGINEERING CORPORA- TION and UNITED AIITOMOBII WORKERS OF AMERICA, LOCAL No. 188 Case No . C-816.-Decided January 15, 194.0 Airplane Parts Manufacturing Industry-Settlement : stipulation providing for compliance with the Act, including disestablishment of company-dominated union and making payments in settlement of discriminatory discharges- Order: entered on stipulation. Mr. Frank A. Mouritsen and Mr. Weldon P. Monson, for the Board. Mr. Elmer J. Walther, of Los Angeles, Calif., for the respondent. Mr. William M. Burke, of Los Angeles, Calif., for the U. A. W. A. Mr. John K. Odisho, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon charges and amended charges duly filed by United Automo- bile Workers of America, Local No. 188, herein called the U. A. W. A., the National Labor Relations Board, herein called the Board, by the Regional Director for the Twenty-first Region (Los Angeles, Cali- fornia), issued its complaint dated April 7, 1938, against Interstate Aircraft and Engineering Corporation, El Segundo, California, herein called the respondent, alleging that the respondent had en- gaged in and was engaging in unfair labor practices affecting com- merce, within the meaning of Section 8 (1), (2), and (3) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. A copy of the complaint, accompanied by notice of hearing, was duly served upon the respondent and the U. A. W. A. The respond- ent filed an answer to the complaint contesting the Board's jurisdic- tion of the subject matter and denying the alleged unfair labor practices. Pursuant to the notice, a hearing was held in Los Angeles, Cali- fornia, on April 18, 19, 20, 21, 22, and 25, before V. P. Lucas, the Trial Examiner duly designated by the Board. The Board and the 19 N. L. R. B., No. 54. 464 INTERSTATE AIRCRAFT AND ENGINEERING CORPORATION 465 respondent were represented by counsel, and the U. A. W. A. by its representative ; all participated in the hearing. Pursuant to permission granted at the hearing by the Trial Ex- aminer, the respondent filed a brief which the Board has considered. On August 12, 1938, the Board, acting pursuant to Article II, Section 37 (a), of National Labor Relations Board Rules and Regulations- Series 1, as amended, ordered the proceeding to be transferred to and continued before it. On September 8, 1938, the Board, acting pursuant to Article II, Section 38 (d), of said Rules and Regulations, issued its order directing issuance of proposed findings of fact, pro- posed conclusions of law, and a proposed order, and granting the right to file exceptions, and to request oral argument and permission to file briefs. On May 13, 1939, the Board issued Proposed Findings of Fact, Proposed Conclusions of Law, and Proposed Order, copies of which were duly served upon all the parties, wherein it found that the respondent had engaged in unfair labor practices affecting commerce, within the meaning of Section 8 (1), (2), and (3) and Section 2 (6) and (7) of the Act, and ordered the respondent to cease and desist from such unfair labor practices and to take certain affirmative action to effectuate the policies of the Act. On December 14 and 15, 1939, the respondent, the U. A. W. A., and counsel for the Board entered into a stipulation in settlement of the case, subject to the approval of the Board. This stipulation reads as follows : It is hereby stipulated and agreed by and between Interstate Aircraft and Engineering Corporation, respondent herein; United Automobile Workers of America, Local No. 188, party herein; and. Weldon P. -.Monson, attorney, National . Labor Relations Board, that: I. Upon charges and amended charges filed by the United Automobile Workers of America, Local No. 188, the National Labor Relations Board, by the Regional Director for the Twenty- first 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 I, as amended, Article IV, Section 1, issued its complaint on the 7th day of April, 1938, against the Interstate Aircraft and Engineering Corporation. II. Pursuant to notice, duly served upon the parties hereto, a hearing was held at Los Angeles, California, on April 18th to 22nd, inclusive, and on April 25, 1938, before V. P. Lucas, Trial Examiner designated by the Board. The Board and the Respondent were represented by counsel and the United Auto- mobile Workers of America, Local No. 188, hereinafter referred 466 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to as the Union, by its representative, and all participated in the hearing. On August 12, 1938, the Board, acting pursuant to Article II, Section 37 (a.) of its Rules and Regulations-Series I, as amended, ordered the proceeding to be transferred to and continued before it. On September 2, 1938; the Board, acting pursuant to Article II, Section 38 (d) of said Rules and Regula- tions, issued its Order directing issuance of Proposed Findings of Fact, Proposed Conclusions of Law, and a Proposed Order, and granting the right to file exceptions, and to request oral argument, and permission to file a brief. Thereafter, on May 13, 1939, the Board issued its Proposed Findings of Fact, Pro- posed Conclusions of Law, and Proposed Order, which were duly served upon the Respondent and the Union. III. The Respondent is a California corporation having its office and plant at El Segundo, California, and is engaged in the operation of a precision machine shop. It manufactures airplane parts for various aircraft manufacturers in California. All its work is done on order and specifications upon castings furnished by these concerns. It does not manufacture for stock or for sale upon the open market. The respondent has approxi- mately fifteen (15) local competitors, six (6) of them comparable to it in size. The Respondent's sales for the period from May, 1937 to and including March, 1938 aggregated $193,980.77. Approximately 80 per cent of its work was done for Douglas Aircraft Company and 13 per cent for North American Aviation Company. Over 50 per cent of the raw materials purchased during the year ending November 30, 1937 by the Douglas Aircraft Com- pany, including the castings furnished the Respondent for pre- cision work, were delivered to it from points outside the State of California. Its total sales for the same period, of which 75 per' cent was shipped to points outside the State of California, aggregated $20,959,000. Approximately 70 per cent of the raw materials purchased dur- ing 1937 by the North American Aviation Company, including the castings furnished the Respondent for precision work, were delivered to it from points outside the State of California. All of its sales for the same period, aggregating $3,469,733.33, were delivered to the United States Government and foreign governments. The respondent employs on an average of approximately one hundred (100) persons. Respondent, Interstate Aircraft and Engineering Corporation, is engaged in interstate commerce within the meaning of the National Labor Relations Act. INTERSTATE AIRCRAFT AND ENGINEERING CORPORATION 467 IV. The United Automobile Workers of America, Local No. 188, is a labor organization within the meaning of Section 2 (5) of the Act. V. The Respondent waives all further and other procedure provided by the National Labor Relations Act or Rules and Regulations of the Board, including the making of Findings of Fact and Conclusions of Law, and waives its right to except to the Proposed Findings of Fact and Proposed Conclusions of Law. VI. Upon this Stipulation, if approved by the National Labor Relations Board, and upon all proceedings heretofore had in this matter, and upon the record, and all the pleadings, Proposed Findings of Fact, Proposed Conclusions of Law, and by agree- ment of the parties hereto, an Order may forthwith be entered by said Board, providing as follows : ORDER Upon the basis of a stipulation, findings of fact and con- clusions of law, and pursuant to Section 10 (c) of the National Labor Relations Act, the National Labor Relations Board hereby orders that the respondent, Interstate Aircraft and Engineering Corporation, and its officers, agents, successors, and assigns, shall : 1. Cease and desist from : (a) Discouraging membership in United Automobile Workers of America, Local No. 188, or any other labor organization of its employees, by discharging or refusing to reinstate any of its employees or in any other manner discriminating in regard to their hire or tenure of employment or any terms or conditions of their employment ; (b) 'Dominating or interfering with the administration of Interstate Local of the Aircraft Workers Union, or the forma- tion or administration of any other labor organization of its employees, or contributing support to Interstate Local of the Aircraft Workers Union, or to any other labor organization of its employees; (c) In any other manner interfering with, restraining, or coercing its employees in the exercise of the right to self organi- zation, 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 and 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 Act : (a) Withdraw all recognition from Interstate Local of the Aircraft Workers Union as representative of any of its em- 468 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ployees for the purpose of dealing with the respondent con- cerning grievances, labor disputes, wages, rates of pay, hours of employment, or other conditions of employment, and com- pletely disestablish the Interstate Local of the Aircraft Work- ers Union as such representatives; (b) Notify the Regional Director for the Twenty-first Re- 'gion'in Writing within ten (10) days from the date of this Order what steps the respondent has taken to comply herewith... VII. The Respondent hereby consents to the entry by the United States Circuit Court of Appeals for the Ninth Circuit, upon application by the Board of a Consent Decree enforcing the Order of the Board in the form hereinabove set forth and hereby waives further notice of application for such Decree. VIII. It is further stipulated, understood, and agreed that in carrying out Section 2 (a), (b), and (c) of the Proposed Order entered by the Board on May 13, 1939, the respondent has of- fered reinstatement to Frank Desautel and Ernest Ralph Davies and that respondent has paid to each of said employees the sum of Seven Hundred and Fifty ($750.) Dollars, which sum is in full settlement of the amount each would have earned but for their . discharges from the. dates thereof to the dates- of offer of reinstatement, deducting net earnings elsewhere during this period; the respondent, further, has paid to Joseph Oxtern the sum of Three Hundred ($300.) Dollars and to Orval O. Thomp- son the sum of Sixty Eight ($68.) Dollars, which sums are full settlement of the amounts each would have earned, but for respondent's discriminations, from the dates that the discrimina- tions occurred to the dates of their employment elsewhere, less net earnings elsewhere. That the payment of the above sums was approved by the Union, and accepted by said employees, in full settlement of back pay under Section 2 (b) and (c) of the Proposed Order and it is, therefore, stipulated and agreed that such constitutes compliance under said Section 2 (b) and (c) and that the offer of reinstatement to its employees, as set forth above, constitutes compliance under Section 2 (a) of said Proposed Order. It is further stipulated by and between the parties hereto that at the time of payment of the above named sums to Frank Desautel and Ernest Ralph Davies on, to-wit, June 20, 1939, the receipt for said sums contained the following language : "In the event the undersigned fails to present himself to Inter- state Aircraft and Engineering Corporation for employment within thirty (30) days of this date, the obligations of Interstate Aircraft and Engineering Corporation to reemploy the under- signed shall cease." INTERSTATE AIRCRAFT AND ENGINEERING CORPORATION 469 It is further stipulated by and between the parties hereto that more than thirty (30) days have elapsed and neither Frank Desautel nor Ernest Ralph Davies has presented himself for employment and that respondent is relieved of further obliga- tion to offer employment to such persons. IX. This Stipulation embodies the entire agreement between the parties and there is no verbal agreement of any kind which varies, alters or adds to the Stipulation. X. This Stipulation is subject to the approval of the National Labor Relations Board and shall become effective immediately upon the granting--of such- approval by the Board. On December 22, 1939, the Board issued an order approving the above stipulation and making it part of the record in the proceeding. Upon the above stipulation and upon the entire, record in the case, the Board makes the following : FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT Interstate Aircraft and Engineering Corporation is a California corporation with its office and plant at El Segundo, California, where it is engaged in the operation of a precision machine shop. It manufactures airplane parts for various aircraft manufacturers in California.. All its work is done on order and specification upon castings furnished by these concerns. It does not manufacture for stock or for sale upon the open market. The respondent has ap- proximately 15 local competitors, 6 of them comparable to it in size. The respondent's sales for the period from May 1937 to and includ- ing March 1938 aggregated $193,980.77. Approximately 80 per cent of its work was done for Douglas Aircraft Company and 13 per cent for North American Aviation Company. Over 50 per cent of the raw materials purchased during the year ending November' 30, 1937, by the Douglas Aircraft Company, in- cluding the castings furnished the respondent for precision work, were delivered to it from points outside the State of California. Its total sales for the same period, of which 75 per cent were shipped to points outside the State of California, aggregated $20,959,000. Approximately 70 per cent of the raw, materials purchased during 1937 by the North American Aviation Company, including the cast- ings furnished the respondent for precision work, were delivered to it from points outside the State of California. All of its sales for the same period, aggregating $3,469,735.33, were delivered to the United States Government and foreign governments. 283030-41-vol. 10-3]. 470 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The respondent employs on ' the average approximately 100 per- sons. It concedes that it is engaged in commerce within the meaning of the Act. We find that the respondent is engaged in trade, traffic, and com merce 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 National Labor Relations Act, the National Labor Relations Board hereby orders that the respondent , Interstate Aircraft and Engineer- ing Corporation , El Segundo, California, its officers, agents, succes- sors, and assigns, shall : 1. Cease and desist from : (a) Discouraging membership in' United Automobile Workers of America, Local No. 188, or any .,other labor organization of its employees, by discharging or refusing to reinstate any of its em- ployees or in any ° other manner . discriminating in regard to their hire or tenure of employment or any terms or conditions of their employment ; (b) Dominating or interfering with the administration of Inter- state Local of the Aircraft Workers Union, or the formation or administration of any - other labor organization of its employees, or contributing support to Interstate Local of the Aircraft Workers Union, or to any other labor organization of its employees; (c) In any other manner interfering with , restraining, or coercing its employees in the exercise of the 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 purpose of collective bargaining or other mutual aid and 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 Act : (a) Withdraw all recognition from Interstate Local of the Air- craft Workers Union as representative of any of its employees for the purpose of dealing with the respondent concerning grievances, labor disputes, wages, rates of pay, hours of employment, or other conditions of employment, and completely disestablish the Interstate Local of the Aircraft Workers Union as such representatives; (b) Notify the Regional Director for the Twenty-first Region in writing within ten (10 ) days from the date of this Order what steps the respondent has taken to comply herewith.