Dominguez Chemical Co.

In the Matter of DOMINGUEZ ' CHEMICAL COMPANY, AND STAUFFER CHEMICAL COMPANY and OIL WORKERS INTERNATIONAL UNION LOCAL No. 128, C. I. O. Case No. R-1746.-Decided March 20, 1940 Chemical Manufacturing Indavstries-Investigation of Representatives: ques- tion concerning representation : companies refuse to recognize Union as exclusive bargaining agent until Union is certified by the Board-Unit Appropriate for Collectme Bargaining: production and maintenance employees of both com- panies, exclusive of supervisory and clerical employees, at their Dominguez, California, plants : stipulated-Election Ordered Mr. Marion A. Prowell, for the Board. Gibson, Dunn cC Crutcher, by Mr. J. Stuart Neary and Mr. Hen? y B. Ely, of Los Angeles, Calif., for the Companies. Mr. Fred L. Phillips, of Long Beach, Calif., for the Union. Mr. F. HWnilton Seeley, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF THE CASE On November 13, 1939, Oil Workers International Union, Local No. 128, herein called the Union, filed with the Regional Di- rector for the Twenty-first Region (Los Angeles, California) a petition, and on December 29, 1939, an amended petition alleging that a question affecting commerce had arisen concerning the repre- sentation of employees of Dominguez Chemical Company, herein called Dominguez, and Stauffer, Chemical Company, herein called Stauffer,' both of Dominguez, California, and herein collectively called the Companies, and requesting an investigation and certifica- tion of representatives pursuant to Section 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. On Feb- ruary 10, 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 Regu- lations-Series 2, as amended, ordered an investigation and au- thorized the Regional Director to conduct it and to provide for an appropriate hearing upon due notice. ' The original petition mentioned only the Dominguez Chemical Company. 21 N L. R B., No. 80 784 DOMINGUEZ CHEMiCAL COMPANY 785 On February 15, 1940, the Regional Director issued a notice of hearing, copies of which were duly served upon the Companies, the Union, the Central Labor Council of Los Angeles, and the Los Angeles Industrial Union Council.2 Pursuant to notice, a hearing was held on February 26 and 27, 1940, at Los Angeles, California, before Thomas H. Kennedy, the Trial Examiner duly designated by the Board. The Board, the Companies, and the Union were rep- resented by counsel and participated in the hearing. Full oppor- tunity 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 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 COMPANIES Stauffer Chemical Company is a California corporation having its principal office in San Francisco, California. It maintains branch offices in New York City; Chicago, Illinois; Los Angeles, California; and a plant at Dominguez, California, a portion of its operations here involved, where it is engaged in the manufacture of liquid caustic soda. The raw materials used by Stauffer in this process are soda ash and lime. Stauffer purchased approximately $144,912 and $140,896 worth of such raw materials during 1937 and 1938, respectively. In the same years the products of Stauffer's Dom- inguez plant , were valued- at approximately $530,257 and $529,856, respectively. These were'sold by it to the following firms in the pro- portions indicated after the name of each : Procter & Gamble- 32.64 per cent ; Shell Oil Company-18.56 per cent; Swift & Com- pany-3.72 per cent ; Richfield Oil Corporation-8.27 per cent; The Texas Company-4.75 per cent; and Clorine Solutions , Inc.-4.75 per cent.' 8 The last two organizations did not appear at the hearing 8 Procter .& Gamble uses caustic soda purchased from Stauffer in the production of soap. About-46 percent of its-products are shipped outside the State of California. Swift '&d Company-'uses caustic sodavin the. manufacture of soap. A. During 1939 it manu- factured over 3,617,136 pounds of soap, of which 95 per cent was shipped outside' the State of California. Richfield Oil Corporation uses caustic soda purchased from Stauffer in the manufacture of gasoline and related products . During 1939, it sold over $29,000,000 of such products, of which 42.48 per cent was shipped outside the State of California. The Texas Company uses caustic soda purchased from Stauffer in the manufacture of gasoline. During 1938, it sold approximately $34,086,050 worth of gasoline, of which approximately 60.64 per cent was consumed outside the State of California. 786 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Stauffer advertises its products in at least two magazines having a Nation-wide circulation. Dominguez Chemical Company is a California corporation having its office in Los Angeles, California, and its plant in Dominguez, Cali- fornia. It is a wholly owned subsidiary of Stauffer and its plant is located beside Stauffer's Dominguez plant. Both plants are located within a common fence, and employees are interchanged between them. Dominguez is engaged in the manufacture of sulphuric acid. The principal raw materials used by it are crude sulphur and hydrogen sulphide. Dominguez purchased approximately $173,394 and $115,475 worth of crude sulphur in 1937 and 1938, respectively. Of these amounts approximately 50 per cent originated outside the State of California. Dominguez produced and sold approximately $372,595 and $294,615 worth of sulphuric acid in 1937 and 1938, respectively. The sulphuric acid was sold to the following companies in the approximate percentages appearing after the name of each company : Shell Chemical Company-74.66 per cent; Shell Oil Company-17 81 per cent; and Stauffer-7.53 per cent. H. THE ORGANIZATION INVOLVED Oil Workers International Union, Local No. 128, C. I: 0., is a labor organization affiliated with the Congress of Industrial Organizations, admitting to its membership employees of the Companies. III. THE QUESTION CONCERNING REPRESENTATION At the hearing it was stipulated by all parties that on or about No- vember 24, 1939, the Union, claiming to represent a majority of the employees of the Companies within an appropriate unit, sought rec- ognition as their exclusive collective bargaining agent. The Compa- nies, however, at that time and at all times since, questioned the Union's majority claim and refused to recognize the Union as the , exclusive bargaining agent for their employees until the Union was certified as such by the Board. We find that a question has arisen concerning representation,of employees of the Companies. 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, Companies de scribed,in Section I„above; has•a 'close, intimate,'and'substantial rela- tion to trade, traffic, and commerce among the,several;:St2tes,.and,,tends DOMINGUEZ CHEMICAL COMPANY • 787 to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE APPROPRIATE UNIT At the hearing the Companies and the Union agreed that the produc- tion and maintenance employees of both Companies, exclusive of supervisory and clerical employees, at their Dominguez , California, plants, constitute a single appropriate unit for the purposes of collec- tive bargaining with the Companies . We see no reason for departing from the unit agreed upon. We find that the production and maintenance employees of both Companies , exclusive of supervisory and clerical employees , at their Dominguez , California, plants, constitute a single unit appropriate for the purposes of collective bargaining with the Companies , and that said unit will insure to employees of the Companies 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 We find that the question concerning representation which has arisen can'best be resolved by an election by secret ballot. We shall direct that the employees within the appropriate unit who were employed by the-Companies during the pay-roll period immedi- ately preceding the date of our Direction of Election , including those who did not work during said pay-roll period because they were ill or. on vacation, and those who were then or have since been tem- porarily laid off, but excluding those who have since quit or been dis- charged for cause , shall be eligible to vote in the election. 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 Dominguez Chemical Company and Stauffer Chemical Company, Dominguez , California, within the meaning, of Section 9 (c) and Section 2 (6) and (7) of the Act. 2. The production and maintenance employees of both Companies, exclusive of supervisory and clerical employees , at their Dominguez, California, plants, constitute a single unit appropriate for the purposes of collective bargaining, within the meaning of Section 9 (b) of the Act. 788 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 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 Relations Board Rules and Regulations-Series 2,-as amended, it is hereby DIRECTED that, as part of the investigation authorized by the Board to ascertain representatives for the purposes of collective bargaining with Dominguez Chemical Company and Stauffer Chemical Company, Dominguez, California, 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 of Election, under the direction and supervision of the Regional Director for the Twenty-first 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 production and maintenance employees who were employed by the Companies at their Dominguez, California, plants during the pay-roll period imme- diately preceding the date of this Direction, including those who did not work during such pay-roll period because they were ill or on vacation, and those who were then or have since been temporarily laid off, but excluding supervisory and clerical employees and those who have since quit or been discharged for cause, to determine whether or not they desire to be represented by Oil Workers International Union, Local No. 128, C. 1. 0., for the purposes of collective bargaining.