Belding Hosiery Mills, Inc.

In the Matter of BELD.ING HOSIERY MILLS, INC. and AMERICAN FEDER- ATION OF HOSIERY WORKERS, BRANCH No. 97 and BELDING UNION OF HOSIERY WORKERS, LOCAL No. 215, FEDERATED INDUSTRIAL UNION Case No. C-1427.-Decided February 19, 1940 Hosiery Manufacturing Industry-Settlement: stipulation providing for set- tlement of 8 (1) and 8 (2) portion of case, including disestablishment of and abrogation of contract with company-dominated union ; hearing continued as to 8 (3) allegations of complaint-Order: entered on stipulation-Discriini: notion: no findings made nor order issued relating to allegations of, in view of no exceptions filed and compliance with Trial Examiner' s recommendations. Mr. Earl R. Cross, for the Board. Warner, Norcross & Judd, by Mr. George S. Norcross, of Grand Rapids, Mich., for the respondent. Mr. Kelsey G. Smith, of Grand Rapids, Mich., for the Union. -Mr. Frederick R. Levinstone, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE . Upon charges 'and amended charges filed by American Federation of Hosiery Workers,, Branch No. 97, herein called the Union, the National Labor Relations Board, herein called the Board, by Frank H. Bowen, Regional Director for "the Seventh Region (Detroit, Michi- gan), issued a complaint dated July 28, 1939, against. Belding Hosiery Mills, Inc., 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), and (3) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449,_ herein called the Act. ith respect to the unfair labor practices the complaint alleged, in substance, (1) that during the period from May 1935 to, July 28, 1939, the respondent, through its officers and agents, urged, persuaded, and warned its employees to refrain from becoming members of the Union; threatened said employees with discharge and other reprisals if they became or remained members thereof; initiated and solicited individual bargaining with its employees concerning wages, hours, 20 N. L. R. B., No. 59. 578 BELDING HOSTELRY MILLS, INC'ORPORAT'ED 579 and other terms and conditions of employment; kept under surveil- lance the meetings and meeting places of union members; and, in -various other whys, evinced-hostility toward the Union; (2) that on or about August 13, 1938, the respondent, through its officers, agents, and persons acting in its behalf, dominated and interfered with the formation and administration of the Belding Hosiery Employees' 'Association, later known as the Belding Union of Hosiery Workers, Local No. 215, Federated Industrial Union, herein called the Inde- pendent; that the respondent, by its officers and agents, on or about February 7, 1939, signed an agreement with the Independent by the terms of which persons employed in the respondent's plant were re- quired to become members of the Independent as a condition of em- ployment; (3) that during the period from February 22, 1937, through March 10, 1938, the respondent discharged or laid off 11 of its employees, because they had joined and assisted the Union, thereby discriminating as to the hire and tenure of their employment and discouraging membership in the Union; and (4) that by these and other acts the respondent interfered with, restrained, and coerced its employees in the exercise of rights guaranteed in Section 7 of the Act. On August 12, 1939; the respondent filed its answer admitting certain allegations of the complaint but denying the allegations of unfair labor practices. The Independent filed no answer to the complaint. Pursuant to notice duly served on all parties, a hearing was held at. Belding, Michigan, from August 14 through 21, 1939, before Her- bert Wenzel, the Trial Examiner duly designated by the Board. The Board, the Union, and the respondent were represented by coun- sel and participated in the hearing. No one appeared on behalf of the Independent. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evidence bearing on the issues was afforded all parties. On August 16, 1939, during the course of the hearing, the respond- ent and counsel for the Board entered into a stipulation approved by the Union but subject to approval of the Board, relating to allega- tions of the complaint that the respondent had engaged in- -unfair labor practices in violation of Section 8 (1) and (2) of the-Act. The hearing proceeded on the allegations of the. complaint- that the respondent had en ;aged in unfair labor practices in violation of, Sec- tion 8 (3) of the Act. On August 21, 1939, the stipulation was filed in the cause and thereby became a part of the record in the proceed- ings. During the course of the hearing the- Trial Examiner made several rulings on motions and on objections:. to the admission of evidence.. ' The names of these employees are : James May, Ennis. McDowell, victor Larson, Paul Kelly, Archie Deters, Earl Laundbury, Willis Hart, Adrian Johnson, Aldin Bloom, Arthur Schaarschmidt, and Lila Shinabarger. , ' 580 DECISIONS OF NATIONAL LABOR RELATIONS BOARD On November 22, 1939, the Trial Examiner filed an Intermediate Report in which he found that the respondent, by discharging and refusing to employ Lila Shinabarger, had engaged in and was engaged in unfair labor practices affecting commerce within the meaning of Section 8 (3) and Section 2 (6) and (7) of the Act and recommending that the respondent cease and desist therefrom, and that by way of affirmative action the respondent should offer-to said Lila Shinabarger immediate and full reinstatement to her former position without prejudice to her seniority or other rights and privileges and make whole the said Lila Shinabarger for any loss of pay she may have suffered in regard to her hire or tenure of employment by payment to her of a sum of money equal to that which she would have earned as wages or salary during the period from the date of such discrim- ination to the date of offer of reinstatement less her net earnings. The Trial Examiner further found that the respondent, by discharg- ing or laying off James May, Ennis McDowell, Victor Larson, Paul Kelly, Archie Deters, Earl Laundbury, Willis Hart, Adrian Johnson, Alvin Bloom, and Arthur Schaarschmidt, had not engaged in any unfair labor practice affecting commerce within the meaning of Section 8 (3) and Section 2 (6) and (7) of the National Labor Rela- tions Act. Neither the Union nor the respondent has filed excep- tions to the Intermediate Report. On January 8, 1940, the Board was advised by the Regional Di- rector for the Seventh Region that the respondent had complied with the recommendations of the Trial Examiner, set forth above. The Board, therefore, makes no findings nor will it issue any order relating to the allegations that the respondent has engaged in unfair labor practices in violation of Section 8 (3) of the Act. The stipulation hereinabove referred to reads as follows : STIPULATION WHEREAS, certain testimony has been -adduced at the hearing relative to specific facts pertaining to the nature of the business, purchase of raw materials, processing, and sales of finished product of Belding Hosiery Mills, Inc., Respondent, upon which the National Labor Relations Board may make an appropriate finding; and WHEREAS, Respondent, Belding Hosiery Mills, Inc., admits that it is engaged in inters tate,.commerce within the nTh iiing of Section 2, Subdivisions 6 and 7 of the Act, and concedes the juris- diction of the Board; and WHEREAS, Respondent, Belding Hosiery Mills, Inc., desires to stipulate to the entering of an appropriate order by the Board respecting claimed violations of Section 8 (1) and 8 (2) of the Act, as alleged in the complaint, and desires to continue the hear- BELDING HOSIERY MILLS, INCORPORATED 581 ing for the testimony and evidence to be adduced relative to the allegations of Section 8 (3) of the Act, upon which the National Labor Relations Board may make findings of fact and con- clusions of. law. It is hereby stipulated by and between Belding Hosiery Mills, Inc., by George S. Norcross, its counsel, and Earl R. Cross, attorney for the Seventh Region of the National Labor Relations Board, that : 1. The American Federation of Hosiery Workers, Branch No. 97, affiliated with the C. I. 0., and Belding Union of Hosiery Workers, Local 215, F. I. U. are labor organizations within the meaning of the Act. 2. This stipulation covers only the allegations in the complaint relative to Section 8, Subdivision (1) and Subdivision (2) of the Act, and may be introduced as evidence by filing it with the Trial Examiner, duly designated, and at the hearing, and may be received as evidence and in lieu of testimony relative to unfair labor practices involving Section- 8 (1) and 8 (2) alleged in the complaint. 3. Upon this stipulation, if approved by the National Labor- Relations Board, an order may forthwith be entered by said Board, providing as follows : A. The Respondent, Belding Hosiery Mills, Inc., shall cease- and, desist : (1) From in any manner interfering with, restraining or coercing its employees in the exercise of their right to self organization, to form, join or assist labor organizations, to bar- gain collectively with representative of their own choosing, and. to engage in concerted action for the purpose of collective bar-_ gaining, -or',other mutual;, aid, or protection. (2) From discouraging membership of its employees inAmeri- can Federation of Hosiery Workers, Branch 97, affiliated with the C. I. 0., or any other labor organization. (3) From in any manner dominating or interfering with the administration of the Belding Union of Hosiery Workers, Local 215, Federated Industrial Union, or with the formation or- administration of any other labor organization of its employees, contributing material aid or support to said organization; recog-_ niziug_or dealing in any, manner with the Belding Union of' Hosiery Workers, Local 215, Federated Industrial Union, or any- group purporting to represent said organization, or forming or maintaining any groups, or designating 2 any individuals to act 8 Appears as designation in original stipulation. We will correct this obvious error in, our order. 283031 -41-vol . 20--38 582 DECISIONS OF NATIONAL LABOR RELATIONS BOARD as the representative of the employees for the, purposes of collective bargaining respecting any of the terms or conditions of employment. (4) From giving effect to any and all contracts with the Beld- ing Union of Hosiery Workers, Local 215, Federated Industrial Union. B. The Respondent will take the following affirmative action : (1) Withdraw and in the future withhold any recognition from the Belding Union of Hosiery Workers, Local No. 215, Federated Industrial Union, or its successor (successor being defined as any organization which has taken over the Belding Union of Hosiery Workers, Local No. 215, Federated Industrial Union) as a representative of its employees, or any of them, for the purpose of dealing with the Respondent as the representative of their employees, or any of them, concerning grievances, labor disputes, wages, rates of pay, hours of employment, and other conditions of employment. (2) Declare the contract between the Respondent and the Beld- ing Union of Hosiery Workers, Local No. 215, Federated Industrial Union, dated February 7, 1939 null and void `and of no legal effect whatsoever. (3) Post and keep visible in a prominent place in each depart- ment of the plant, for the period of sixty days, immediately if not already posted, a copy of this stipulation. 4. It is further stipulated and agreed that the provisions of this stipulation may be embodied in and become a part of an appropriate order to be entered by the National Relations Board, on the entire record and this stipulation. 5. This stipulation, if approved, will limit the issues in this case to that portion of the complaint alleging violations of Section 8, subdivision (3) of the Act upon which the Board will make an appropriate finding, together with findings on jurisdic- tion. Nothing in this stipulation is to be construed as an admis- sion or waiver of any of the Respondent's rights, under law, in connection with the remaining' issue at bar involving the allega- tions in the complaint of-violation of Section 8 Subdivision (3). The Respondent waives none of its rights to file exceptions, briefs, or other due process for the purpose of appeal from any findings.or order of the Board relative to said section Subdi- vision (3) of the Act. 6. It is further stipulated and agreed that the United `States Circuit Court of Appeals for the appropriate circuit, may, upon application by the National Labor Relations Board,' enter-`1 decree enforcing the aforesaid order of the ' Botird, so far ts Js covered by this stipulation, Respondents hereby expressly,waiv- BELDING 'HOS'IEIRY MILLS, INCORPORATED 583- ing their rights to contest the entry of said decree in the United States Circuit Court of Appeals for the appropriate circuit, and further expressly waiving their rights to receive notice of the filing by the National Labor Relations Board of an application for the entry of such a decree, so far as is covered by this stipulation. 7. It is further stipulated and agreed that this stipulation is subject to the approval of the National Labor Relations Board. .On September 22, 1939, the Board issued an order approving the above stipulation and making it part of the record in this proceeding. Upon the entire record in the case, the Board makes the following : FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT Belding Hosiery Mills, Inc., a Michigan corporation is engaged in th manufacture, sale, and distribution of ladies' hosiery. It. serves as a processing agent for J. M. Hammerman, Inc., hosiery jobbers at Chicago, Illinois. The raw materials purchased for the respondent are billed directly to J. M. Hammerman , Inc., which .guarantees the account. The finished products are, with few excep- tions, sold on a prepaid basis to J. M. Hammerman, Inc. During the year 1939 the respondent purchased approximately .108,000 pounds of silk and 12 ,000 pounds of cotton at a purchase price of approximately $300,000. During the same year it purchased .dye chemicals at a purchase price of approximately $32,000. Vir- tually all of these products were obtained from sources outside the ..State of Michigan. During the same year sales amounted to approxi- mately $800,000, all but $1 ,900 of which represented items shipped .outside the State of Michigan. The respondent admits that it is engaged in commerce within the meaning of the Act. We find that the above-described operations constitute a continuous flow of trade , traffic, and commerce among the several States- II. THE ORGANIZATIONS INVOLVED The, American Federation of Hosiery Workers,. Branch No. 97, -is a. labor organization, affiliated with the Congress of Industrial •Organizations. 'It admits to membership all employees of the respondent, excluding clerical and supervisory employees. The Belding Union of Hosiery Workers,. Local No. 215, Federated Industrial Union, is a labor organization admitting to membership employees of the respondent and apparently excluding'clerical and supervisory eniproyees. 584 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ORDER Upon the basis of the above findings of fact, stipulation , and then 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 Belding Hosiery Mills, Inc., its officers , 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 right to self organization , to form, join or assist labor organizations , to bargain collectively with repre- sentative of their own choosing , and to engage in concerted action for the purpose of collective bargaining, or other mutual aid or protection. (b) Discouraging membership of its employees in American Fed- eration of Hosiery Workers, Branch 97, affiliated with the C. I. 0., or any other labor organization. (c) In any manner dominating or interfering with tlie `adninistra- tion of the Belding Union of Hosiery Workers, Local 215 , Federated Industrial Union, or with the formation or administration of any other labor organization of its employees , contributing material aid or support to said organization ; recognizing or dealing in any man- ner with the Belding Union of Hosiery Workers, Local 215, Fed- erated Industrial Union, or any group purporting to represent said organization , or 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. (d) Giving effect to any and all contracts with the Belding Union of Hosiery Workers, Local 215, Federated Industrial Union. 2. Take the following affirmative action which will effectuate the policies of the Act : (a) Withdraw and in the future withhold any recognition from the Belding Union of Hosiery Workers, Local No. 215, Federated Industrial Union, or its successor (successor being defined as any organization which has taken over the Belding Union of Hosiery Workers, Local No. 215, Federated Industrial Union ) as a represent- ative of its employees , or any of them, for the purpose of dealing with the Respondent as the representative of their employees, or any of them , concerning grievances , labor 'disputes, ' ages, rates of pay, hours of employment , and other conditions of employment. (b) Declare the contract between the Respondent and the Belding Union of Hosiery Workers, Local No. 215, Federated Industrial Union, dated February 7, 1939 null and void and of no legal effect whatsoever.