Faribault Woolen Mill Co.

In the Matter of FARIBAULT WOOLEN MILL COMPANY and TEXTILE WORKERS UNION of AMI.RICA, AFFILIATE OF CONGRESS OF INDUSTRIAL ORGANIZATIONS and THE TEXTILE WORKERS ASSOCIATION OF FARI- BAULT, PARTY TO THE WRITTEN AGREEMENT 1 Case No. C-1569.-Decided May 23, 1940 Woolen Blanket Manufacturing Industry-Settlement : stipulation providing for compliance with the Act-Order: entered on stipulation Mr. Lee Loevinger and Mr. Henry W. Lehmann,, for the Board. Mr. Thomas H. Quinn, of Faribault, Minn., for the respondent. Mr. Sander Genis, of Minneapolis, Minn., for the T. W. U. A. Mr. Charles N. Sayles, of Faribault, Minn., for the Independent. Mr. Edwin L. Swope, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon charges and amended charges duly filed by Textile Workers Union of America ,2 herein called the T. W. U. A., the National Labor Relations Board, herein called the Board, by the Regional Director for the Eighteenth Region (Minneapolis , Minnesota), issued its complaint dated March 25, 1940 , against Faribault Woolen Mill Company, Faribault, Minnesota, herein called the respondent , alleg- ing that the respondent had engaged in and was engaging in unfair labor practices affecting commerce within the meaning of Section 8 (1) and (2) and Section 2 (6) and (7) of the National Labor Rela- tions Act, 49 Stat. 449, herein called the Act. Copies of the com- plaint and notices of hearing thereon were duly served upon the respondent ; upon the T . W. U. A.; and upon The Textile Workers Association of Faribault also known as Faribo Textile Workers Organization, as Faribault Textile Workers Organization, and as The Club, herein called the Independent, a labor organization alleged to have been dominated by the respondent ; and upon Faribo Inde- The title of this case was amended at the hearing to read as set forth above. s The Textile Workers Union of America is also known as the Textile Workers Organ- izing Committee. 23 N L R B, No. 113 1111 1112 DECISIONS OF NATIONAL LABOR RELATIONS BOARD pendent Textile Organization, herein called the Organization, another labor organization alleged to have been dominated by the respondent. Concerning the unfair labor practices the complaint alleged, in substance, (1) that the respondent dominated and interfered with the formation and administration of the Independent, its alterations, modifications, and successors, gave it financial and other support, and entered into a written agreement with it for the purpose of furthering and maintaining the respondent's domination and control of it and also for the purpose of encouraging the respondent's employees to join it and to refrain from joining or retaining membership in the T. W. U. A.; and (2) that by these and other acts the respondent in- terfered with, restrained, and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act. On March 30, 1940, the respondent filed an answer to the complaint. On April 3, 1940, the Organization filed with the Regional Director a motion to inter- vene, which was granted by the Regional Director on April 8, 1940. On April 15, 1940, the Organization filed an answer to the complaint. On April 18, 1940, the Regional Director issued and served upon the parties a notice of a change in the place of the hearing. Pursuant to notice, a hearing was held on April 25 and 26, 1940, in Faribault, Minnesota, before Henry W. Schmidt, the Trial Examiner duly designated by the Board. The Board, the respondent, the T. W. U. A., and the Organization were represented by counsel and participated in the hearing. On April 26, 1940, during the course of the hearing, the respond- ent, the T. W. U. A., the Organization, and counsel for the Board entered into a stipulation in settlement of the case. The stipulation provided as follows : STIPULATION FOR BOARD ORDER AND CONSENT DECREE It is hereby stipulated and agreed by and between the Fari- bault Woolen Mill Company, respondent herein, by its attorney, Thos. H. Quinn; the Textile Workers Union of America, also known as the Textile Workers Organizing Committee, affiliated with the C. I. 0., by its representative Sander Genis; the Faribo Independent Textile Workers Organization , by its attorney Chas. N. Sayles; and Henry W. Lehmann and Lee Loevinger , attorneys for the National Labor Relations Board, as follows , to-wit:- 1. Charges were filed by the Textile Workers Organizing Com- mittee, affiliated with the C. I. O. on October 12th , 1939; amended charges were filed by the said Textile Workers Organizing Com- mittee, affiliated with the C. I. O. on October 21st , 1939 and sec- ond amended charges were filed by the said Textile Workers FARIBAULT WOOLEN MILL COMPANY 11-13 Organizing Committee, affiliated with the C. I. O. on March 21st, 1940, with the Eighteenth Regional Office of the National Labor Relations Board alleging that the Faribault Woolen Mill Com- pany, hereinafter called the Respondent, had violated Section 8, Sub-Section (1) and (2) of the National Labor Relations Act. Thereafter, on March 25th, 1940, the National Labor Relations Board, through Robert J. Wiener, Regional Director for the Eighteenth Region of the National Labor Relations Board, duly issued its complaint and notice of hearing alleging that respond- ent had engaged in and was engaging in unfair labor practices affecting commerce within the meaning of Section 8 (1) and (2) and Section 2 (6) and (7) of the National Labor Relations Act (49 Stat. 449). The complaint and notice of hearing, together with copies of the second amended charge and the National La- bor Relations Board Rules and Regulations-Series 2, as amended, were duly served upon all of the parties hereto. On March 30th, 1940 respondent filed its answer to the complaint herein. On April 3rd, 1940 a motion for permission to inter- vene was filed by the Faribo Independent Textile Workers Or- ganization, hereinafter called the intervenor. On April 8th, 1940 an order was issued by said Regional Director permitting intervention by the said intervenor. On April 15th, 1940 said intervenor filed an answer herein. The hearing in the aforesaid proceeding was scheduled to begin on April 25th, 1940 in Fari- bault, Minnesota. The hearing did convene before Henry W. Schmidt the trial examiner designated by the National Labor Relations Board to hear, the evidence in said case and the Re- spondent, the Intervenor and the National Labor Relations Board appeared by their respective attorneys. 2. The charges, complaint and other pleadings referred to in paragraph 1. above, together with the transcript made at the aforesaid hearing and the exhibits introduced at the afore- said hearing, together with this stipulation and the exhibits attached hereto shall constitute the entire record in this pro- ceeding. This stipulation shall be entered in the record herein and made a part of the record hereof by filing a copy with the Chief Trial Examiner of the National Labor Relations Board at Washington, D. C. 3. The stipulation attached hereto and made a part hereof, marked Exhibit A, is agreed to by all of the parties hereto and shall be considered a part of this stipulation as fully as though and with the same force and effect as though set out in full herein. 4. All of the parties hereto expressly waive the right to a further hearing in this matter and expressly waive the making 11"14 DECISIONS OF NATIONAL LABOR RELATIONS BOARD of Findings of Fact and Conclusions of Law by the National Labor Relations Board, and expressly agree and consent that the National Labor Relations Board, may enter an order provid- ing as follows : I. The respondent shall not and will desist from : (a) Interfering with, restraining and coercing employees in the exercise of their rights of self-organization, to form; join or assist labor organizations, bargain collectively through repre- sentatives of their own choosing and to engage in concerted activities, for the purposes of collective bargaining or other mutual aid and protection, as guaranteed by Section 7 of the National Labor Relations Act; (b) Dominating or interfering with the administration of The Textile Workers Association of Faribault, also known as Faribo Textile Workers Organization, the Old Local Union, and The Club, or with the formation or administration of any other labor organization of its employees, and from contributing finan- cial or other support to the aforesaid organization or any other labor organization of its employees; (c) Recognizing The Textile Workers Association of Fari- bault (also known as Faribo Textile Workers Organization, the Old Local Union, and The Club), or the Faribo Independent Textile Workers Organization, as the representative of any of its employees for the purpose of dealing with the respondent relative to any grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work, or giving effect to any agree- ment with said Textile Workers Association of Faribault. (d) Recognizing or entering into an agreement with any labor organization purporting to represent its employees for the pur- pose of collective bargaining with respect to rates of pay, wuges, hours of employment or other terms and conditions of employ- ment until such organization has been designated as the repre- sentative of such employees within a unit appropriate for the purpose of collective bargaining, within the meaning of the Na- tional Labor Relations Act; II. The respondent will take the following affirmative action to effectuate the policies and purposes of the National Labor Re- lations Act : (a) Instruct all respondent's officials and agents, including superintendents, foremen and other supervisory employees, that they shall not in any manner interfere with, restrain or coerce respondent's employees in the exercise of their rights of self- organization, to bargain collectively through representatives of their own choosing, or to engage in concerted activity for the FARIBAULT WOOLEN MILL COMPANY 1115 purpose of collective bargaining or other mutual aid and pro- tection; (b) Post and keep posted for a period of at least 60 days from the date of the issuance of the Order herein in several conspicu- ous places throughout its plant at Faribanlt, Minnesota, copies of the notice to employees attached hereto and made a part hereof and marked Exhibit B; (c) Notify the Regional Director for the Eighteenth Region in writing within ten days of the date of the issuance of the Order herein what steps respondent has taken to comply herewith. 5. The parties hereto agree and consent to the entry by the Eighth Circuit Court of Appeals of an enforcement order em- bodying the terms of the Board Order agreed to above, and all parties hereby waive further notice of the application for and the entry of such Court Order, provided that a certified copy of said Order shall be served upon the respondent immediately following its issuance. 6. It is the understanding of the parties hereto that The Tex- tile Workers Association of Faribault has heretofore been dis- solved and disestablished, and consequently, no provision is made herein for the disestablishment of said organization. 7. The hearing of this proceeding, herein above referred to, has been recessed pending the negotiation of this stipulation. Upon the signing of this stipulation by the parties hereto the hearing, which has been recessed, shall be adjourned. All of the parties hereto agree that the said hearing may be reconvened upon three (3) days notice to the parties hereto. 8. This stipulation and all agreements made herein are subject to the approval of the National Labor Relations Board, and should the Board fail to approve this stipulation within twenty- one (21) days from the date of signing hereof, this stipulation shall be null and void and of no effect and the proceeding in this matter shall be in the same status as though no stipualtion had been entered into, with the exception that the hearing in this proceeding may be held, as provided in paragraph 7 above. 9. This stipulation constitutes the entire agreement between the parties hereto, and no verbal agreement of any kind has been made which varies, alters, detracts from or adds to this stipulation. EXHIBIT A STIPULATION It is hereby stipulated by and between the National Labor Relations Board and Faribault Woolen Mill Company, both 1116 DECISIONS OF NATIONAL LABOR RELATIONS BOARD being parties to the present proceeding, that the following, facts may be received in the record herein with the same force and effect as though established by competent testimony and docu- mentary evidence , but without prejudice to the right of any of the parties to the present proceeding to offer other and further evidence relating to the matters contained herein. Faribault Woolen Mill Company, hereinafter referred to as the Company, is, and has been at all times since December 23, 1905, a Minnesota corporation , having its office and place of business located at Faribault , Minnesota . On July 18, 1936, the original corporate charter of the Company was renewed and made perpetual . At the date of the hearing in this proceeding, the officers of the Company are as follows : President, Frank H. Klemer; Vice President, Walter F. Klemer; Secretary , Robert E. Johnson ; and Treasurer, E. A. Johnson . Robert W. Klemer is a director of the Company . The Company is principally en- gaged in the manufacture and sale of woolen blankets. The Company has no subsidiaries , affiliates, or parent corporations. Approximately 100 production employees are employed at the Company's plant in Faribault , Minnesota. In the course and conduct of its business , the Company pur- chases raw wool, chemicals, bindings, fuel and other supplies. During the calendar year 1939, the Company purchased approxi- mately 500 ,000 lbs. of wool at a cost of over $200,000 ; bindings for $28,707.59; chemicals for $25,757 .11; fuel for $9,248.02; and other supplies for $5526.04 . The dollar value of the wool and other materials purchased by the Company during the calendar year 1939 which came to the Faribault plant of the Company and originated within the State of Minnesota is as follows : Wool, over $100,000; bindings, none; chemicals , none; fuel, none; and supplies $552.60. The dollar value of the wool and other raw materials purchased by the Company during the calendar year, 1939 which came to the Faribault plant of the Company from points of origin outside of Minnesota is as follows : Wool, over $110,000 ; bindings, $28,707.59; chemicals , $25,757.11; fuel $9,248.02; and other supplies , approximately $4,973.44. The wool and other materials purchased by the Company are transported to the Company's plant at Faribault, Minnesota by auto truck and railroad . Nearly all wool purchased by the Company orig- inating outside of Minnesota is transported to the Company's Faribault plant by railroad . A large part of the wool purchased by the Company originating within the State of Minnesota is transported to the Company's plant at Faribault , Minnesota, by truck. FARIBAULT WOOLEN MILL COMPANY 1117 The product manufactured by the Company consists exclu- sively of woolen blankets. During the calendar year 1939, the Company sold 400,000 lbs. of blankets, and the gross value of such sales amounted to over $500,000. The aforesaid blankets were sold to approximately 1,500 customers situated throughout the'United States. The total value of such blankets sold by the Company during the calendar year 1939 within the State of Min- nesota amounted to approximately $90,000. and the total value of such blankets sold by the Company during such calendar year to purchasers situated outside of the State of Minnesota amounted to over $400,000. The Company employs salesmen to sell its blankets, whom it pays on a commission basis. These salesmen travel throughout the United States in the course of their employment. EXHIBIT B Notice to Employees: The Faribault Woolen Mill Company hereby notifies its em- ployees that this Company, its officers, agents and supervisors, will not interfere with, restrain, or coerce the employees in the exercise of their rights to self-organization, to form, join, or assist labor organizations, to bargain collectively through repre- sentatives of their own choosing and to engage in concerted activi- ties for the purpose of collective bargaining or other mutual aid and protection, as guaranteed in Section 7 of the National Labor Relations Act. The Company and its officers, agents and supervisors will not dominate or interfere with the formation or administration of any labor organization or give any support to any labor organi- zation. "The Textile Workers Association of Faribault" (also known as the "Faribo Textile Workers Organization", "Old Local Un- ion" and "The Club") has been dissolved and disestablished. The Company no longer recognizes it and will not recognize it in the future. The Company will not recognize the Faribo Inde- pendent Textile Workers Organization. The Company will not recognize or make an agreement with any labor organization as the representative of its employees for the purposes of collective bargaining with respect to rates of pay, wages, hours of employment and other terms or conditions of employment, until such labor organization has been designated as the representative of such employees within an appropriate unit for collective bargaining, within the meaning of the Na- tional Labor Relations Act. 1118 DECISIONS OF NATIONAL LABOR RELATIONS BOARD This Company has instructed all of its officers, agents and su- pervisors that they must respect the rights of the employees which are set forth in Section 7 of the National Labor Relations Act, which reads as follows:- "Employees shall have 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 or protection." FARIBAULT WOOLEN MILL COMPANY. On May 8, 1940, the Board issued an order approving the above stipulation, making it a part of the record, and pursuant to Article II, Section 36, of National Labor Relations Board Rules and Regula- tions-Series 2, as amended, transferring the proceeding to the Board for the purpose of entry of a decision and order pursuant to the pro- visions of the stipulation. Upon the basis of the above stipulation and the entire record in the case, the Board makes the following : FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT Faribault Woolen Mill Company, a Minnesota corporation, operates a plant at Faribault, Minnesota, where it is engaged in the manufac- ture of woolen blankets, and employs about 100 production employ- ees. In the course and conduct of its business, the respondent purchases raw wool, chemicals, bindings, fuel and other supplies. During the calendar year 1939, it purchased approximately 500,000 pounds of raw wool at a cost of over $200,000; bindings for $28,707.59; chemicals for $25,757.11; fuel for $9,248.02; and other supplies for $5,526.04. The value of the wool and other raw materials purchased by the respondent and originated from within the State of Minnesota during this period was ' as follows : Wool over $100,000; bindings, none; chemicals, none; fuel, none; and other supplies, $552.60. The value of the raw materials which came to the respondent from points of origin outside the State of Minnesota during the same period was as follows: Wool,' over $110,000; bindings, $28,707.59; chemicals, $25,757.11; fuel, $9,248.02; and other supplies, approximately $4,- 973.44. During the calendar year 1939, the respondent produced 400,000 pounds of woolen blankets, its only product, valued at over $500,000, which were sold to approximately 1,500 customers situated throughout the United States. The value of the blankets sold within the .State of Minnesota, during this period amounted to about $90,000, J FARIBAULT WOOLEN MILL COMPANY 1119 while the value of those sold outside the State of Minnesota amounted to over $400,000. We find that the above-described operations constitute a continu- ous flow of trade, traffic, and commerce among the several States. ORDER Upon the basis of the above findings of fact and 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 Faribault Woolen Mill Company, Faribault, Minnesota, (1) Shall not and will desist from : (a) Interfering with, restraining and coercing employees in the exercise of their rights of self-organization, to form, join or assist labor organizations, bargain collectively through representatives of their own choosing and to engage in concerted activities, for the pur- poses of collective bargaining or other mutual aid and protection, as guaranteed by Section 7 of the National Labor Relations Act; (b) Dominating or interfering with the administration of The Textile Workers Association of Faribault, also known as Faribo Tex- tile Workers Organization, the Old Local Union, and The Club, or with the formation or administration of any other labor organization of its employees, and from contributing financial or other support to the aforesaid organization or any other labor organization of its employees ; (c) Recognizing The Textile Workers Association of Faribault, also known as Faribo Textile Workers Organization, the Old' Local Union, and The Club, or the Faribo Independent Textile Workers Organization, as the representative of any of its employees for the purpose of dealing with the respondent relative to any grievances, labor disputes, wages, rates of pay, hours of employment, or condi- tions of work, or giving effect to any agreement with said Textile Workers Association of Faribault; (d) Recognizing or entering into an agreement with any labor organization purporting to represent its employees for the purpose of collective bargaining with respect to rates of pay, wages, hours of employment or other terms and conditions of employment until such organization has been designated as the representative of such employees within a unit appropriate for the purpose of collective bargaining, within the meaning of the National Labor Relations Act. (2) Take the following affirmative action which the Board finds will effectuate the policies of the Act : (a) Instruct all respondent's officials and agents, including super- intendents, foremen and other supervisory employees, that they shall 1120 DECISIONS OF NATIONAL LABOR RELATIONS BOARD not in any manner interfere with, restrain or coerce respondent's employees in the exercise of their rights of self-organization, to bar- gain collectively through representatives of their own choosing, or to engage in concerted activity for the purpose of collective bargain- ing or other mutual aid and protection; (b) Post and keep posted for a period of at least sixty (60) days from the date of the issuance of the Order herein in several con- spicuous places throughout its plant at Faribault, Minnesota, copies of the notice to employees set forth above and marked Exhibit B; (c) Notify the Regional Director for the Eighteenth Region in writing within ten (10) days of the date of the issuance of the Order herein what steps respondent has taken to comply herewith.