General Industries Co.

In the Matter of GENERAL INDUSTRIES COMPANY and MECHANICS EDUCATIONAL SOCIETY OF AMERICA, LOCAL No. 18, (UNAFFILIATED) Case No. R-1696-Decided March 5, 1940 Phonogi aphs , Electric Motors, Record Change s, Fishing Reels, Synthetic Resin Pioduct .s Manufactu' ing Industry-Investigatton of Representatives : controversy concerning representation of employees : Company refuses to recognize either of rival unions until certified by the Board--Units Appropriate for Collective Bargaining: stipulation among unions, followed by Board, places determination of appropriate unit or units upon the result of elections among three groups of employees-Representation: stipulation among parties to resolve the question by elections-L'tections Ordered: separate elections among ( 1) powerhouse em- ployees. ( 2) compression moulders , including job-setters and inspectors, but ex- cluding clerical and supervisory employees-both foremen and assistant foremen being classed as supervisory ; (3) alrfactory employees , including job-setters and inspectors , but excluding toolroom and powerhouse employees , plastic compression moulders, and clerical and supervisory employees-both foremen and assistant foremen being classed as supervisory. Mr. Harry L. Lodish, for the Board. Mr. John S. Bellamy and Mr. Glen O. Smith, of Cleveland, Ohio, for the Company. 211''. Karl E Pauli, of Cleveland, Ohio, Mr. Robert J. Smith and Mr. Mea Gerber, of Elyria, Ohio, for M. E. S. A. Mr. E. Wayne Patterson, of Cleveland, Ohio, for the Federal. Mr. Roy E. Seitz, of Cleveland, Ohio, for the Firemen. Mrs. Augusta Spaulding, of counsel to the Board. DECISION AND DIRECTION OF ELECTIONS - STATEMENT OF THE CASE On December 1, 1939, Mechanics Educational Society of America, Local No. 18,1 herein called the M. E. S. A., filed with the Regional Director for the Eighth Region (Cleveland, Ohio) a petition alleging that a question affecting commerce had 'arisen concerning the repre- sentation of employees of General Industries Company, Elyria, Ohio, herein called the Company, and requesting an investigation and cer- tification bf representatives pursuant to Section 9 (c) of the National 1 "Local No 18" was added by amendment at the hearing to the name of petitioning union. 21 N. L R. B., No. 21. 131 132 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Labor Relations Act, 49 Stat. 449, herein called the Act. On January 19, 1940, 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 authorized the Regional Director to con- duct it and to provide for an appropriate hearing upon due notice- On January 22, 1940, the Regional Director issued a notice of hearing, copies of which were duly served upon the Company, the M. E. S. A., and Federal Labor Union, A. F. of L., No. 20932, herein called the Federal, a labor organization claiming to represent employees directly affected by the investigation. Service of notice of hearing was also made upon International Brotherhood of Firemen and Oilers and upon Metal Polishers, Buffers, Platers, Spinners and Helpers International Union. Pursuant to the notice, a hearing was held on January 26 and 29, 1940, at Cleveland, Ohio, before Berdon M. Bell, the Trial Examiner duly designated by the Board. The Board and the Coin- pany were represented by counsel; the M. E. S. A. was represented by its officials. International Brotherhood of Firemen and Oilers, Local No. 198, herein called the Firemen, was permitted to intervene and was represented by its vice president. Metal Polishers, Buffers, Platers, Spinners and Helpers International Union did not appear and took no part in the proceedings. All parties, including the Firemen, partici- pated 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. During the course of the hearing the Trial Examiner made several rulings on motions, objections to the admission of evidence, and the form of questions. The Board has reviewed the rulings of the Trial Examiner and finds that no preju- dicial errors were committed. The rulings are hereby affirmed. The M. E. S. A. filed a brief which the Board has considered. On February 21, 1940, the Federal filed with the Board a motion to reopen the record. Subsequently, there was filed with the Board a stipulation dated Feb- ruary 21, 1940, and signed by representatives of the Federation and the M. E. S. A., and counsel for the Board. In the stipulation the Federation withdrew its previous motion to reopen the record.2 Upon the entire record in the case, the Board makes the following : FINDINGS OF FACT 1. THE BUSINESS OF THE COMPANY General Industries Company,3 an Ohio corporation, is both an operating company and a holding company. It operates a plant at 2 The other terms of the stipulation are hereinafter set forth and discussed. 8 See Matter of General Industries Company, a Corporation and Hobart Flenner, Arthur Karbknecht, IV,tl,am Cox, and John Alberts, 1 N. L. R . B. 678. GENERAL INDUSTRIES COMPANY 133 Elyria, Ohio, for the manufacture, sale, and distribution of phono- graphs and electric motors, record changers, fishing reels, bakelite compounds, and synthetic resin products. It employs about 900 persons. It owns the entire stock of the General Phonograph Manu- facturing Company, Putnam, Connecticut, a company which manu- factures phonograph needles, textile pins, and ice picks. In turn, 993/8 per cent of the Company's common stock is owned by a third company, the General Phonograph Company, Putnam, Connect ;cut. The Company's total purchases during 1939 amounted to about $1,000,000, over 55 per cent of which came from points outside Ohio. During the same period the Company's sales totaled approximately $2,000,000, of which 75 per cent was to customers outside Ohio. The Company admits that it is engaged in commerce within the meaning of the Act. II. THE ORGANIZATIONS INVOLVED Mechanics Educational Society of America, Local No. 18, is an unaffiliated labor organization. It admits to membership all employees at the Company's plant, excluding clerical, supervisory, and toolroom employees. Federal Labor Union, A. F. of L., No. 20932, is a labor organization affiliated with the American Federation of Labor, admitting to mem- bership employees of the Company. International Brotherhood of Firemen and Oilers, Local 198, is a labor organization affiliated with the American Federation of Labor. It admits to membership powerhouse employees at the Company's plant. III. THE QUESTION CONCERNING REPRESENTATION In July 1937 the American Federation of Labor granted a charter to the Federal to organize employees at the Company's plant. In July 1938 Local No. 15 of the Mechanics Educational Society of America was recognized by the Company as the exclusive bargaining agency for the toolroom employees. In July 1939 Local No. 18, hereinafter referred to as the M. E. S. A., was chartered, and it now seeks recog- nition by the Company as sole bargaining agent for all employees, excluding toolroom, supervisory, and clerical employees, but including inspectors and jobsetters. The Federal desires recognition by the Company as exclusive bargaining representative for all production moulders in Department 13, excluding clerical and supervisory em- ployees, but including inspectors and jobsetters. Both the Federal and the M. E. S. A. have conferred with Company representatives regarding grievances and other matters of interest to employees, but 28 03Y 41--vo1 21--10 134 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Company refuses to recognize either as an exclusive bargaining representative until the Board has certified it as such. We find that a question has arisen concerning the representation of employees of the Company at the Elyria, Ohio, plant. 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 As stated in Section III above, the Company in July 1938 recog- nized M. E. S. A., Local 15, as the exclusive bargaining representative of the toolroom employees. Neither the Company nor any union in this proceeding desires to include the toolroom employees in the unit which it contends is appropriate for the purposes of collective bargain- ing and we shall therefore exclude them. The Firemen contend that the 20 employees in the powerhouse con- stitute.an appropriate bargaining: unit. • At the, hearing all parties stipulated that a separate election should be conducted among the powerhouse employees to determine whether they desire to be repre- sented by the Firemen or by the M. E. S. A. for the purposes of col- lective bargaining. It is not altogether clear from the terms of the stipulation whether the parties agreed that the powerhouse employees constituted a separate bargaining unit among whom an election, should be held solely to determine their bargaining agency, or that the results of the election .should also determine whether the powerhouse ein- ployees should constitute a separate bargaining unit as desired by the Firemen, or be included in a larger bargaining unit as desired by the M. E. S. A. We think it plain from the general content of the stipulation, however, that the parties agreed to the latter, that is, that the desires of the powerhouse employees should be the determining factor in fixing the appropriate unit. Both the Federal and the M. E. S. A. agree that all clerical and super- visory employees, including foremen and assistant foremen, should be excluded from any bargaining unit or units, and that inspectors and jobsetters'should be included. The Company does not object to the exclusion or inclusion of any of the above groups, except in the case of jobsetters, whose functions it contends are sufficiently supervisory to warrant their exclusion. In accordance with our usual practice of GENERAL INDUSTRIES CODIPANI 135 including in the appropriate bargaining unit minor supervisory em- ployees at the request of all the labor organizations concerned '4 we shall include jobsetters as well as inspectors and exclude clerical and other supervisory employees (including foremen and assistant fore- men). The Federal contends that all plastic compression moulders alone constitute an appropriate bargaining unit. These moulders all work in one department, number 13. There are about 157 of them. The Company contends, and, at the hearing, the M. E. S. A. contended, that all the employees in the plant (with the exclusions hereinbefore noted) constitute an appropriate bargaining unit. The work of the plastic compression moulders requires some, though not extensive, training. Their department is housed in a building which to a certain extent is separated from the remainder of the plant. However, transfers between Department 13 and the other departments are relatively frequent. There is no evidence that, apart from the Company's plant, plastic compression moulders have ever organized and bargained collectively as a separate unit. At present, the Fed- eral's membership is mainly confined to Department 13 and it has negotiated for the last half year with the Company for the grievances of its members in this department. When chartered in 1937, however, the Federal apparently did not confine its membership to Department 13. The M. E. S. A. has organized on a plant-wide basis, except for the exclusions noted above, and has negotiated, with the Company for the grievances of its members for the last 6 months. It claims to have some members among the compression moulders. The Federal asserts that compression moulding of plastics is a comparatively new industry, and that the American Federation of Labor intends in the future to organize a separate craft union for plastic moulders, corre- sponding to the existing craft unions for wood and metal moulders, but that meanwhile it is the Federation's policy to organize the plastic moulders in federal unions. The Company has engaged in plastic moulding, however, for over 15 years. As hereinbefore stated, subsequent to the hearing there was filed with the Board a stipulation signed by counsel for the Board and representatives for the Federal and the M. E. S. A. This stipulation provides that the Board may conduct an election among the employees in Department 13 alone to determine whether they desire to be repre- sented by the Federal or by the M. E. S. A., and that the results of this election shall also decide whether the employees shall constitute , Matte, of Sanger 'Mfg Co and L nited, ^lr Leta ical, Radio, and Machine Wo, hens of Au e,tea. Local Vo 91-,,'S N L R B 434; Matter of R,chanond Hosiery Mills and Textile Wotke,s 0) gantzing Committee, 8 N L R. B 1073. Matte, of Shell Petroleum Corp and Oil Workers International Union, Local No 367, 9 N L It B 831, Matte, of Willys Ozer- land Motoas, Ino and United Automobile Wor!eis of Ainenca, Local No 12, 9 N L R B 924 136 DECISIONS OF NATIONAL LABOR RELATIONS BOARD a separate unit, as desired by the Federal, or be included in a larger unit, as desired by the M. E. S. A. The stipulation also provides that the Board shall conduct an election among the remaining employees, excluding the compression moulders, to determine whether they desire to be represented by the American Federation of Labor or by the M. E. S. A. It is thus apparent that all the labor organizations involved have agreed upon a method for the determination of the appropriate bar- gaining unit or units. The method agreed upon-the determination of the unit on the basis of the desires of the employees in dispute-is one we have frequently used.5 It is not unsuitable under the circum- stances of this case. We find that the desires of the employees shall be the determining factor in fixing the appropriate unit or units for the employees now under discussion. We find in Section VI below that three elections are necessary to determine the desires of employees at the Company's plant with regard to representation for the purposes of collective bargaining. On the result of these elections will depend the determination of the unit or units appropriate for the purposes of collective bargaining. VI. THE DETEP,MIINATION OF REPRESENTATIVES All the parties stipulated that the question concerning representa- tion should be resolved by elections. We shall direct elections among the following groups of employees : (1) All powerhouse employees at the Company's plant, excluding supervisory employees (including foremen and assistant foremen), to determine whether they desire to be represented by the Firemen or by the M. E. S. A. for the purposes of collective bargaining, or by neither ; (2) All employees in Department 13 at the Company's plant, in- cluding jobsetters and inspectors, but excluding clerical and super- visory employees (including foremen and assistant foremen), to deter- mine whether they desire to be represented by the Federal or by the M. E. S. A. for the purposes of collective bargaining, or by neither; (3) All factory employees at the Company's plant, including job- setters and inspectors, but excluding powerhouse and toolroom em- ployees, plastic compression moulders (Department 13 employees), and clerical and supervisory employees (including foremen and assistant foremen), to determine whether they desire to be represented by the American Federation of Labor or by the M. E. S. A. for the purposes of collective bargaining, or by neither. , See cases collected in Fourth Annual Report of the National Labor Relations Board (1940 ) pages 86-87, footnotes 58 and 59 GENERAL INDUSTRIES COMPANY 137 Upon the basis of the above findings of fact and upon the entire record in the case, the Board makes the following : CONCLUSION OF LAW A question affecting commerce has arisen concerning the representa- tion of employees of General Industries Company, Elyria, Ohio, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the National Labor Relations Act. DIRECTION OF ELECTIONS By virtue of and pursuant to the power vested in the National Labor Relations Board by Section 9 (c) of the National Labor Rela- tions Act, and pursuant to Article III, Section 8, of National Labor Relations Board Rules and Regulations-Series 2, as amended, it is hereby DIRECTED that, as part of the investigation ordered by the Board to ascertain representatives for the purposes of collective bar- gaining with General Industries Company, Elyria, Ohio, elections 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 of the Eighth 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 those employees of General Industries Company at its Elyria, Ohio, plant who fall within the groups described below and who were em- ployed during the pay-roll period immediately preceding the date of this Direction, including employees who did not work during such pay-roll period because they were ill or on vacation or temporarily laid off, but excluding employees who have since quit or been discharged for cause : (a) All employees in the powerhouse, excluding supervisory em- ployees (including foremen and, assistant foremen), to determine whether they desire to be represented by International Brotherhood of Firemen and Oilers, Local No. 198, or by Mechanics Educational Society of America, Local 18, for the purposes of collective bargain- ing, or by neither; (b) All employees in Department 13, including jobsetters and inspectors, but excluding clerical and supervisory employees (includ- ing foremen and assistant foremen), to determine whether they desire to be represented by Federal Labor Union, No. 20932, or by Mechanics Educational Society of America, Local 18, for the purposes of col- lective bargaining, or by neither; and 138 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (c) All factory employees, including jobsetters and inspectors, but excluding powerhouse and toolroom employees, plastic compression moulders (Department 13 employees), and clerical and supervisory employees (including foremen and assistant foremen), to determine whether they desire to be represented by Mechanics Educational Society of America, Local 18, or by the American Federation of Labor, for the purposes of collective bargaining, or by neither.