Universal Products, Inc.

In the Matter Of UNIVERSAL PRODUCTS , INC. and INTERNATIONAL UNION, UNITED AUTOMOBILE WORKERS OF AMERICA, (C. I. 0.) LOCAL 174 Case No. R-1674.Decided February 9, 1940 Auto Parts Manufacturing Industry-Investigation of Representatives: con- troversy concerning representation of employees: rival unions : refusal by em- ployer to recognize either as exclusive bargaining agency; contracts with rival labor organizations for members only terminable upon the certification of an exclusive bargaining agent by the Board, no bar to-Unit Appropriate for Col- lective Bargaining : hourly production and maintenance employees exclusive of watchmen, timekeepers, supervisory employees , which includes foremen and assistant foremen, office , clerical, and salaried employees : stipulated as to- Representatives : eligibility to participate in choice of ; stipulation ; seniority list next preceding date of Direction-Election Ordered Mr. Arthur C. O'Connor, for the Board. Mr. Karl B. Goddard and Mr. Lee Henson, of Detroit, Mich., for the Company. Mr. Maurice Sugar and Mr. Jack N. Tucker, of Detroit, Mich., for the C. I. O.-U. A. W. Mr. Edward Barnard, Mr. Arthur C. Lumley, Mr. Harry B. Rot- tiers, and Mr. Valois E. Crossley, of Detroit, Mich., for the A. F. L.- U. A.. W. Mr. Norman M. Neel, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF THE CASE On September 19, 1939, and December 18, 1939, respectively, Inter- national Union, United Automobile Workers of America (C. I. 0.), Local 174, herein called Local 174, filed with the Regional Director for the Seventh Region (Detroit, Michigan) a petition and an amended petition alleging that a question affecting commerce had arisen con- cerning the representation of employees of Universal Products Co., Inc.,' Dearborn, Michigan, herein called the Company, and requesting Designated in some of the pleadings as Universal Products, Inc. At the hearing coun- sel for the Board moved to amend such pleadings to read Universal Products Co., Inc. The motion was grantpA 20, N. L. R. B.. NI 288 1 UNIVERSAL PRODUCTS INCORPORAT'ED 289 'an investigation and certification of representatives pursuant to Sec- tion 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the.Act. On November 27, 1939, the National Labor Relations .Board,: herein called the Board, acting pursuant 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 di- rected the Regional Director to conduct it and to provide for an appropriate hearing upon due notice. . On December 20, 1939, the Regional Director issued a notice of hearing, copies of which were duly served upon the Company, upon ^Local'174, and upon International Union, United Automobile Workers of America, Local 627, - affiliated with the American Federation of Labor, herein called Local 627, a labor organization claiming to repre- sent employees directly affected by the investigation. Pursuant to the notice, a hearing was held on January 3 and 4, 1940, at Detroit.. Michigan, before. Joseph L. Maguire, the Trial Examiner duly desig- nated by the Board. The Board, the Company, Local 174, and Local 627 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 January 8, 1940, Local 174 requested permission to argue orally before the Board. This request was granted and upon notice to all parties a hearing for the purpose of oral argument was set for January 18, 1940, at Washington, D. C. On January 16 and 11, 1940, all parties advised the Board that they did not intend to appear for oral argument. On January 17, Local 627 requested leave to file a -brief; and on January 18, the Board granted leave to all parties until January 26, 1940, to file written briefs. The parties did not avail themselves of this privilege. During the course of the hearing the Trial Examiner made several rulings on motions and on objections to the. admission of evidence. The Board has-reviewed the 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 I. THE BUSINESS OF THE COMPANY 2 - The Company is a Delaware corporation licensed to conduct its business in the State of Michigan, having its principal offices and plant in Dearborn, Michigan . It is engaged in the manufacture , sale,. `'The findings in this section are based upon, a stipulation of facts.between the Com- pany and counsel for the Roaril. 290 DECISIONS OF NATIONAL LABOR RELATIONS BOARD and distribution of universal joints and propeller shafts for motor vehicles. The principal raw materials purchased by the Company during the period from October 1, 1938, to October 1, 1939, a repre- sentative year, were steel forgings, screw-machine products, stampings, and leather parts, of which 25 per cent, aggregating in value over $25,000 were shipped from places outside the State of Michigan. The gross value of its shipments of finished products to places out- side the said State was over $250,000 and over 25 per cent of its total production during the same period. The Company normally employs approximately 408 employees. It concedes that it is engaged in inter- state commerce and in a business affecting commerce within the meaning of the Act. H. THE ORGANIZATIONS INVOLVED International Union, United Automobile Workers of America, Local 174, is a labor organization affiliated with the Congress of Industrial Organizations. It admits to membership production and maintenance employees of the Company., International Union, United Automobile Workers of America, Local 627, is a labor organization affiliated with the American 'Federation of Labor. It also admits to membership production and maintenance employees of the Company. III. THE QUESTION CONCERNING REPRESENTATION Local 174 began to organize the Company's employees in 1937 and on April 30, 1937, entered into a contract with the Company for 1 year in which it was recognized as the representative of its mem- bers. In June 1938 Local 174 and the Company entered into negoti- ations for a new contract which was drafted but not formally executed by the parties. However, both the Company and Local 174 complied with the terms of the proposed contract. In April 1939 Local 627 3 asserted a claim to represent a majority 'of the Company's employees and Local 174 made a : similar claim. The Company declined to contract with either organization as the exclusive representative of its employees until there was a determi- nation of the majority issue. On August 8, 1939, Local 627 filed with this Board a petition for an investigation and certification of representatives. In September 1939 an election was arranged upon the consent of the parties, but on September 14, 1939, Local 627 withdrew its consent to the election and it was not held .4 The record does not disclose the, date Local 627 was organized but apparently it pre- ceded by a short time Local 627 's demand for recognition. F Local 627's petition was dismissed by the Board on November 27, 1939. I J UNIVERSAL PRODUCTS INCORPORATED 291 On September 8, 1939, Local 174 gave notice to the Company of an intention to strike 5 and on September 19, 1939, filed the petition in this proceeding. On October 20, 1939, and October 23, 1939, the Company entered into separate contracts with Local 627 and Local 174, respectively, for their members." The Company contends that no question or controversy concerning representation exists for the reason that the Company has bargained consistently with each organization for its own members. We find no merit in that contention since each organization is seeking ex- clusive bargaining rights to which it is entitled under the Act if it represents a majority of the Company's employees in an appropriate unit? We further find that the contracts entered into during the pendency of this proceeding, which by their express terms are termin- able upon the certification of an exclusive bargaining agent by the Board, do not constitute a bar to a determination of representatives in this proceeding.s We find that a question has arisen concerning the 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 arisen, 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 The parties stipulated that all hourly production and maintenance employees, excluding watchmen (plant protection employees), time- keepers, supervisory employees, which includes foremen and assistant foremen, office, clerical, and salaried -employees, constitute an appro- priate unit. Local 174 claims that two employees in the flange department are supervisory employees. The representative of Local 174 testified s This notice was pursuant to Mich. Stat., Act No. 176, Public Acts of 1939. These contracts provided inter slid that they were to remain in effect for 1 year, and were then terminable upon 30 days' notice, and that "In the event an election is held by any government agency and sole bargaining rights are obtained by any other Union, then this contract shall be considered immediately cancelled." See Matter of Armour and Company and United Meat Packing Workers, Local No. 117, 6 N. L. R . B. 613; Matter of Mackay Radio Corporation of Delaware, Inc., and Mackay Radio & Telegraph Company, a corporation and American Radio Telegraphists Association, 5.N.'L.,R . B. 657. s See Mrtt(er of Unit Cast Corporation and Steel Workers Organizing Committee, 7 N. L. L2. B. 129" a pd cases there cited. 292 DECISIONS OF NATIONAL LABOR RELATIONS BOARD without contradiction that Ernest F. Stephens is working as an.assist- ant foreman, and Arlington M. Rowe supervises the operation of the four-way machines and is also an assistant foreman. We find that Ernest. F.. Stephens and Arlington M. Rowe occupy supervisory posi - tions and they will be excluded from the unit. We. find that all hourly production and maintenance employees of the Company, excluding watchmen (plant protection employees), timekeepers, supervisory employees, which includes foremen and as- sistant foremen, office, clerical, and salaried employees, constitute a unit appropriate for the purposes of collective bargaining and that said unit will insure to the employees of the Company 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 Both Local 174 and Local 627 claim to represent a majority of the employees in the agreed unit. We find, therefore, that an election by secret ballot is necessary to determine the proper representative for collective bargaining and. thus resolve the question concerning representation. The parties stipulated that in the event the Board should direct an election, all those persons whose names were on the seniority list s for the pay-roll period immediately preceding the date of the Board's Direction of Election and who are within the appropriate unit, be permitted to vote. With the exception of watchmen the exclusions from the unit are recognized in the compilation of the seniority lists published by the Company. We shall adopt this stipulation and direct that those eligible to vote shall be all those persons on the seniority list for the pay-roll period immediately preceding the date of this Direction of Election, excepting and excluding watchmen, and flange-department employees Stephens and Rowe, who have been excluded from the appropriate unit as supervisory employees. 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 Universal.., Products Co., Inc., Dearborn, Michigan, within the meaning of Section'9 (c) and Section 2 (6) and (7) of the National Labor Relations Act. .2. All hourly iproduction and maintenance employees of the Com- pany, excluding watchmen (plant protection employees), timekeepers, ° Anr employee acquires seniority status upon the completion of 2 months' continuous ser vice. 1 UNIVERSAL PRODUCTS INCORPORATED 293 supervisory employees, which includes foremen and assistant foremen, office, clerical, and salaried employees, constitute a unit appropriate for the purposes of collective bargaining, within the meaning of Sec- tion 9 (b) 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 Relations .act, and pursuant to Article III, Section '8, of National Labor Rela- tions Board Rules and Regulations-Series 2, as amended, it is hereby DIRECTrD that, as part of the investigation ordered by the Board to ascertain representatives for the purposes of collective bargaining with Universal Products Co., Inc., Dearborn, 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 direc- tion 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 hourly production and maintenance employees of the Company, excluding watchmen (plant protection employees), time- keepers, supervisory employees, which includes foremen and assistant foremen, office, clerical, and salaried employees, whose names appear on the Company's seniority list for the pay-roll period immediately preceding the date of this Direction of Election, to determine whether they desire to be represented by International Union, United Auto- mobile Workers of America, Local 174, affiliated with the Congress of Industrial Organizations, or International Union, United Automobile Workers of America, Local 627, affiliated with the American Federa- tion of Labor, for the purposes of collective bargaining, or by neither. 283031-41-vol. 20--20