George Benz Sons, Inc.

In the Matter of GEORGE BENZ SONS, INC. and WAREHOUSE EMPLOYEES UNION, LOCAL 503 (A. F. OF L.) and BENZ INSIDE PLANT EMPLOYEES ASSOCIATION, PARTY OF THE CONTRACT Case No. C-1580.-Decided May 29, 1940 Alcoholic Beverage Distributing Industry-Settlement : stipulation providing for compliance with the Act, including disestablishment and abrogation of contract with company-dominated union-Order: entered on stipulation. Mr. Robert J. Wiener, for the Board. Mr. W. H. Smith, of St. Paul, Minn., for the respondent. Mr. Bernard L. Simmer and Mr. Donald C. Casseday, of St. Paul, Minn., for the Union. Mr. Dudley; Warner and Mr. Lloyd Sch mitt, of St. Paul, Minn., for the Association. Mr. Milton E. Harris, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon charges duly filed by Warehouse Employees Union, Local 503, of the Brotherhood of Teamsters, Chauffeurs, Stablemen, & Helpers of N. A., affiliated with the A. F. of L., herein called the Union, the National Labor Relations Board, herein called the Board, by its Regional Director for the Eighteenth Region (Minneapolis, Minnesota), issued a complaint dated May 8, 1940, against George Benz Sons, Inc., St. Paul, Minnesota, 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) and (2) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. With respect to the unfair labor practices, the complaint alleged in substance that the respondent: (1) during July or August 1937, and thereafter, instigated the formation of a labor organization known as Benz Inside Plant Employees Association, herein called the-Association, and dominated and ,.interfered with its administra- 24 N. L. R. B., No. 4. 144 GEORGE BENZ SONS, INC. 145 tion and contributed financial and, other, support. to it,-and otherwise fostered'and encouraged its formation and growth; (2) since July 1.937 advised, urged, threatened, and warned its employees to join the Association and to refrain from joining or remaining members of the Union; (3) on or about September 1, 1937, entered into an exclusive bargaining contract with the Association; and (4) by these and other acts, interfered with, restrained, and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act. On May 8, 1940, the complaint, accompanied by a notice of hearing, was duly served on the respondent, on the Union, and on the Associa- tion. These parties, together with the Regional Director for the Eighteenth Region, thereupon on the same day entered into a stipu- lation, subject to the Board's- approval, in settlement of the case. This stipulation provides as follows : It is hereby stipulated and agreed for the purpose, and only for the purpose, of this cause by and between George Benz Sons, Inc., the Respondent herein, and Warehouse Employees Union, Local 503, of the Brotherhood of Teamsters, Chauffeurs, Stable- men & Helpers of N. A., affiliated with the A. F. of L., the complaining, union herein, and Benz Inside Plant Employees Association, party to the contract, and Robert J. Wiener, Re- gional Director for the Eighteenth Region of the. National Labor Relations Board,.as follows : 1. Charges were filed by Warehouse Employees Union, Local 503, of the Brotherhood of Teamsters, Chauffeurs, Stable- men & Helpers of N. A., affiliated with the A. F. of L., with the Eighteenth Regional Office of the National Labor Relations Board alleging that the Respondent, George Benz Sons, Inc., had violated Section 8, subsections (1) and (2) of the National Labor Relations Act. Thereafter on May 8, 1940, the National Labor Relations Board, through Robert J. Wiener, Regional Director for the Eighteenth Region, duly issued its Complaint and Notice of Hearing alleging that 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 Relations Act (49 Stat. 449). The charges and the Complaint, together with the Notice of Hearing, were duly served upon the Respondent and on Ware- house Employees Union, Local No. 503, and on Benz Inside Plant Employees Association, on May 8, 1940, and said hearing was scheduled to begin on May 27, 1940, at the United States Post Office and Court House, West Fifth and Market Streets, St. Paul, Minnesota. The Respondent did not file an Answer to the. Board's Complaint and hereby waives its right to file said 146 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Answer, but in so doing, does not admit the truth of the allega- tions of the Complaint or any of them, except where' expressly admitted herein, and then only for the purposes of this cause. 2. The Respondent is a corporation organized under and exist- ing by virtue of the laws of the State of Minnesota. The prin- cipal offices of the Respondent are located at 367-377 Grove Street, St. Paul, Minnesota. The Respondent owns and operates a warehouse and place of business in St. Paul, Minnesota, at which it is now, and has been continuously since January 1934, engaged in the business of rectifying, bottling, storing, selling, and distributing wines, spirituous liquors, and other alcoholic beverages. The Respondent, in the course and conduct of its business and in the operation of its warehouse in St. Paul, Minne- sota, causes and has continuously caused all of the raw materials used by it in said business, consisting principally of whisky, brandy, wine, gin, neutral spirits, and other liquors and alcoholic beverages and bottles, to be purchased and transported in inter- state commerce from, into, and through various and several States of the United States other than the State of Minnesota and from foreign countries to the Respondent's place of business in the State of Minnesota. The aforesaid raw materials amount to approximately $1,000,000 worth annually. The Respondent, in the course and conduct of its business and in the operation of its warehouse, causes and has continuously caused large quanti- ties of the products sold and distributed by the Respondent, con- sisting principally of whiskies, wines, gins, cordials, brandies, cognacs, champagnes, liquors, and other alcoholic beverages, to be sold and transported in ' interstate commerce from the Re- spondent's warehouse in the State of Minnesota to, through, and into States of the United States other than the State of Minne- sota. The aforesaid products so sold and transported constitute approximately '5 per cent of the total value of the products sold or distributed by the Respondent from its St. Paul warehouse. The total value of the products sold or distributed by the Re- spondent from the St. Paul warehouse is approximately $1,800,000 worth annually. The Respondent agrees and admits that 'it is engaged in interstate commerce within the meaning of Section 2, subdivisions (6) and (7), of the National Labor Relations Act, and that Respondent is subject to the provisions of the National Labor Relations Act and the jurisdiction of the National Labor 'Relations Board. All parties hereto expressly agree that the National Labor Relations Board may make jurisdictional findings based upon facts stipulated in this paragraph and that the Board may find that the above-described operations of the Respondent GEORGE BENZ SONS, INC. 147 constitute a continuous flow of trade, traffic, and commerce among the several States. 3. All parties hereto expressly agree that the charges, Com- plaint, and Notice of Hearing referred to in paragraph 1 above, and this stipulation shall constitute the entire record in this cause, and that said documents shall be entered in the record herein by filing with the Chief Trial Examiner of the National Labor Relations Board at Washington, D. C. 4. All parties hereto expressly waive the right to a hearing in this matter and making 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 providing as follows : The Respondent, George Benz Sons, Inc., shall: I. Cease and desist from : a. Interfering with, restraining, and coercing its employees in the exercise of their rights 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 mu- tual aid and protection, as guaranteed' ;by Section 7 of the Na- tional Labor Relation Act; b. Dominating or interfering with the administration of Benz Inside Plant Employees Association or with the formation or administration of any other labor organization of its employees, and from contributing financial or other support to the Benz Inside Plant Employees Association or any other labor organiza- tion of its employees ; c. Recognizing the Benz Inside Plant Employees Association as the representative -of any of its employees for the, purpose of dealing with the Respondent concerning grievances, labor dis- putes, wages, rates of pay, hours of employment, or conditions of work; d. Giving effect to the agreement entered into September 1, 1937, and any other agreement entered into with the Benz Inside Plant Employees Association with regard to rates of pay, wages, hours of employment, or other conditions of work. II. Take the following affirmative action to effectuate the policies and purposes of the National Labor Relations Act : a. Withdraw all recognition from the Benz Inside Plant Em- ployees Association as representative of any of its employees for the purpose of dealing with the Respondent concerning griev- ances, labor disputes, wages, rates of pay, hours of employment, or other conditions of work, and completely disestablish any and 148 DECISIONS OF NATIONAL LABOR' RELATIONS BOARD all relationship. with=the:..Benz,:Inside'Plant Employee..ASsocia- tion as such representative; b. Instruct all Respondent's officials and agents, including superintendents, foremen, and other supervisory employees, by posting notices as provided in paragraph II (c) of this Order, 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 form or join or assist labor, organizations, to bargain collectively through representatives of their own choos- ing, or to engage in concerted activities for the purpose of collective bargaining or other mutual aid and protection; c. Post and keep posted for a period of at least 60 days from the date of the issuance:,of the. Order herein agreed..to in- several conspicuous places throughout its plant at St. Paul, Minnesota, copies of the notice to employees which is attached hereto and made a part hereof and marked Appendix A; d. 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. Warehouse Employees Union, Local 503 (A. F. of L.), here- by requests permission to withdraw and withdraws the Petition for Investigation and Certification of Representatives Pursuant to Section 9 (c) of the National Labor Relations Act heretofore filed in the Eighteenth Regional Office of the National Labor Relations Board with reference to the production and distribu- tion workers of George Benz Sons, Inc. 7. The Benz Inside Plant Employees Association hereby re- quests permission to withdraw and withdraws the Petition for Investigation and Certification of Representatives Pursuant to Section 9 (c) of the National Labor Relations Act heretofore filed with the Eighteenth Regional Office of the National Labor Relations Board relative to the inside plant workers of George Benz Sons, Inc., and also hereby withdraws all charges hereto- fore filed with said Regional Office of the National Labor Rela- tions Board alleging unfair labor practices by George Benz Sons, Inc. A GEORGE BENZ SONS, INC. 149 8. All stipulations herein made are subject to the approval of the Board, and should the Board fail to approve the terms and conditions contained herein within 21 days from the date hereof, this stipulation shall be null and void, and of no effect, and the proceedings in this matter shall be in the same status as though no stipulations had been entered into. 9. This stipulation constitutes the entire agreement between the parties, and no verbal agreement of any kind has been made which varies, alters, or adds to this stipulation. Attached to the stipulation and marked "APPENDIX A" is the follow- ing notice : NOTICE TO EMPLOYEES In accordance with the National Labor Relations Act, George Benz Sons, Inc. announces to its employees the policy the company will follow with respect to their rights of self-organization. The company will not interfere in, any way with the right of its em- ployees to join or assist the Warehouse Employees' Union 503, or any other labor organization. The company withdraws all recognition from, and completely disestablishes the house union (Benz Inside Plant Employees As- sociation) as the representative of any of its employees for the purpose of dealing with the company concerning grievances, labor disputes, wages, rates of pay, hours of employment or other condi- tions of employment. This means that any contract between the company and the house union is no longer in effect. The company policy will conform to 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. On May 15, 1940, the Board issued and duly served on.the parties, an order approving the stipulation, making it a• part of the record in this case, and, in accordance with Article II, Section 36, of National Labor Relations Board Rules and Regulations-Series 2, as amended, trans- ferring the case to and continuing it before the Board for the purpose of entry of a decision and order pursuant to the provisions of the .stipulation. Upon the basis of the stipulation and the entire record in the case, the Board makes the following : 283035-42-vol. 24-11 150 DECISIONS OF NATIONAL LABOR RELATIONS BOARD FINDINGS OF FACT I. THE BUSINESS OF THE RESPONDENT The respondent, George Benz Sons, Inc., is a Minnesota corporation with its principal offices at 367-377 Grove Street, St. Paul, Minnesota, and a warehouse and place of business in the same city, where it is engaged in the business of rectifying, bottling, storing, selling, and distributing wines, spirituous liquors, and other alcoholic beverages. All the raw materials used by the respondent in its business, consist- ing principally of whisky, brandy, wine, gin, neutral spirits, and other liquors and alcoholic beverages and bottles, to the value of approxi. mately $1,000,000 annually, are transported to the respondent's place of business in interstate commerce from points located outside the State of Minnesota. Large quantities of the products distributed by the respondent from its warehouse, consisting principally of whiskies, wines, gins, cordials, brandies, cognacs, champagnes, liquors, and other alcoholic beverages, valued at about $90,000, and constituting about 5 per cent of the total value of the products so distributed; are likewise transported in interstate commerce to points located outside the State of Minnesota. - We find that the above-described operations constitute a continuous flow of trade, traffic, and commerce among the several States. The respondent stipulated, and we find, that it is engaged in interstate commerce within the meaning of Section 2 (6) and (7) of the Act. H. THE ORGANIZATION INVOLVED Warehouse Employees Union, Local 503, of the Brotherhood of Teamsters, Chauffeurs, Stablemen, & Helpers of N. A., affiliated with the A: F. of L., and Benz Inside Plant Employees Association are labor organizations, within the meaning of Section 2 (5) of the Act. ORDER Upon the basis of the foregoing findings of fact, the 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 the respondent, George Benz Sons, Inc., St. Paul, Minnesota, shall: 1. Cease and desist from : (a) Interfering with, restraining, and coercing its employees in the exercise of their rights to self-organization, to form, join, or J GEORGE.BENZ SONS, INC. 151 assist labor organizations, to bargain collectively through representa- tives of their own choosing, and to engage in concerted activities, for the purpose of collective bargaining or other mutual aid and protec- tion, as guaranteed by Section 7 of the National Labor Relations Act; (b) Dominating or interfering with the administration of Benz Inside Plant Employees Association or with the formation or admin- istration of any other labor organization of its employees, and from contributing financial or other support to the Benz Inside Plant Em- ployees Association or any other labor organization of its employees; (c) Recognizing the Benz Inside Plant.Employees Association as the representative of any of its employees for the purpose of dealing with the respondent concerning grievances, labor disputes, wages, rates of pay; hours of employment, or conditions of work; (d) Giving effect to the agreement entered into September 1, 1937, and any other agreement entered into with the Benz Inside Plant Em- ployees Association with regard to rates of pay, wages, hours of em- ployment, or 'other conditions of work. 2. Take the following affirmative action which the Board finds will: effectuate the policies and purposes of the National Labor Relations, Act: (a) Withdraw all recognition from the Benz Inside Plant Em- ployees Association as representative of any of its employees for the purpose of dealing with the respondent concerning grievances, labor disputes, wages, rates of pay, hours of employment, or other conditions of work, and completely disestablish any and all relationship with the Benz Inside Plant Employees Association as such representative; (b) Instruct all respondent's officials and agents, including super- intendents, foremen, land other supervisory employees, by posting notices as provided in paragraph II (c) of this Order, 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 form, or join, or assist labor organizations, to bargain collectively through representatives of their own choosing, or to engage in concerted activi- ties for the purpose of collective bargaining or other mutual aid and protection ; (c) Post and keep posted for a period of at least 60 days from the date of the issuance of the Order herein in several conspicuous places throughout its plant at St. Paul, Minnesota, copies of the following notice to employees : NOTICE TO EMPLOYEES In accordance with the National Labor Relations Act, George Benz Sons, Inc. announces to its employees the policy the com- pany will follow with respect to their rights of self-organization. 152 DECISIONS OF, NATIONAL LABOR RELATIONS BOARD The company will not interfere in any way with the right of its employees to join or assist the Warehouse Employees' Union 503, or any other labor organization. The company withdraws all recognition from, and completely disestablishes the house union (Benz Inside Plant Employees Association) as the representative of any of its employees for the purpose of dealing with the company concerning grievances, labor disputes, wages, rates of pay, hours of employment or other conditions of employment. This means that,any contract between the company and the house union is no longer in effect. The company policy will conform to 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. (d) 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.