Gettysburg Furniture Co.

In the , Matter Of GETI'YSBURG FURNITURE CO., GETrYSBURG PANEL Co., and REASER FURNITURE Co. and UNITED FURNITURE WORK- ERS OF AirERICA , LOCAL 464, C. I. O. Case No. R-1914.-Decided July 31, 1940 Jurisdiction : furniture manufacturing industry. Investigation and Certification of Representatives : existence of question : re- fusal to accord full recognition to union and request that certification be obtained; election necessary. Unit Appropriate for Collective Bargaining Unit comprising plants of three companies held appropriate where com- panies were under common control, had a unitary labor policy, negotiations with the union were identical, and union desired such a unit. Mr. John D. Keith of Keith, Bigham c Marley, of Gettysburg, Pa., and Mr. Samuel Handler, of Harrisburg, Pa., for the Companies. Mr. Morris Hoffman, of Philadelphia, Pa., for the Union. Mr. Norman M. Neel, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF THE CASE On March 28, 1940, United Furniture Workers of America, Local 464, C. I. 0., herein called the Union, filed with the Regional Direc- tor for the Fourth Region (Philadelphia, Pennsylvania) a petition alleging that a question affecting commerce had arisen concerning the representation of employees of Gettysburg Furniture Co., Gettys- burg, Pennsylvania, herein called Gettysburg; of Gettysburg Panel Co., Gettysburg, Pennsylvania, herein called Panel; of Reaser Fur- niture Co., Gettysburg, Pennsylvania, herein called Reaser, herein collectively referred to as the Companies, and requesting an investi- gation and certification of representatives pursuant to Section 9 (c) of the, National Labor Relations Act, 49 Stat. 449, herein called the Act. On May 27, 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, as amended, ordered an investigation and 25 N. L R. B, No. 115. 1109 283036-42-vol 25-71 1110 DECISIONS OF NATIONAL LABOR RELATIONS BOARD authorized the Regional Director to conduct it and to provide for an appropriate hearing upon due notice. On June 7, 1940, the Regional Director issued a notice of hear- ing, copies of which were duly served upon the Companies and upon the Union. Pursuant to the notice, a hearing was held on June 20, 1940, at Gettysburg, Pennsylvania, before Samuel G. Zack, the Trial Examiner duly designated by the Board. The Board, the Companies, and the Union were represented by counsel and 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. On June 21, 1940, the Coth- panies requested permission to file a brief and to argpe orally before the Board. On June 24, 1940, the Union requested permission to file a written brief., On June' 24, 1940, the Board granted all par- ties until July '2, 1940, to file written briefs, and upon notice to all parties a hearing for the purpose of oral argument was set for July 16, 1940, at Washington, D: C. The Union did not file, a written brief and by letter dated July 12, notified the Board that it did not, wish to present oral argument. The Companies filed a brief and presented oral argument before the Board. , During the course of the hearing the Trial Examiner made sev- eral rulings on motions and on objections to the admission of evi- dence. 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 1 Gettysburg Furniture Company Is a Pennsylvania corporation having its principal office and place of business in Gettysburg, Penn- sylvania; where it is engaged in the manufacture, sale, and distri- bution of household furniture including bedroom and dining-room furniture. The principal raw materials used by it 'in the process of manufacture are lumber, hardware, finishing and trimming materials, veneered panels, and plywood. Its purchases of said materials for the year 1939 were valued at approximately $568,470.62, 41 per cent of which were shipped to Gettysburg from States other than the State of Pennsylvania. The gross volume of sales of Gettysburg for the year 1939 was 12,701 articles of furniture, valued at approximately 1 The findings in this section are based upon stipulations of facts between counsel for the Companies and counsel for the Boaid -GETTYSBURG FURNITURE CO. $1,017,792.45, 69 per cent of which were shipped to States other than the State'of Pennsylvania. - Reaser Furniture Company is a Penmsylvania corporation having its principal office and place of business in Gettysburg, Pennsyl- vania, where it is engaged in the manufacture, sale, and distribution of.' household furniture including bedroom and dining-room furni- ture. The principal raw materials used by Reaser in the process of. manufacture are lumber, hardware, finishing and trimming mate- ials, veneered panels, and plywood. Its purchases'' of said mate-' rials for the year 1939 were valued at approximately ! $461,074.06, 41 per cent of which, were shipped to Reaser from places outside the State' of Pennsylvania. 'The gross volume of ' sales of Reaser for the year 1939, was 10,028 articles of furniture, valued at approxi- mately $788,914.75, 70 per cent of -which were shipped to places outside the State' of Pennsylvania. Gettysburg Panel Company is a Pennsylvania corporation having its principal office and place of business in Gettysburg, Pennsylvania, where it is engaged in the manufacture, sale, and distribution of veneered panels. The principal raw materials used by it- in the process of manufacture are lumber, veneer, core and cross-banding, and glue. Its purchases of said materials • for the year 1939-wer'e' valued at approximately $360,077.57, 90 per cent of which were shipped tb Panel's plant''from places outside 'the State of Penn- sylvania. Its sales for the year' 1939 were valued at approximately $542,548.02, of, which approximately one per cent' were shipped di- rectly to. firms in North Carolina, the remainder having been sold to Gettysburg and Reaser and other companies within the State of Pennsylvania. The Companies concede that they are individually engaged i' interstate commerce and in business affecting commerce within the meaning of the Act. II. THE ORGANIZATION INVOLVED United Furniture Workers of America, Local 464, is a labor organ- ization affiliated with the Congress of Industrial Organizations. ad- mitting to membership production and maintenance employees of the Companies. III. TIIE QUESTION CONCERNING REPRESENTATION The Union began organizing the employees at the Companies' plants in June 1937.2 During negotiations with a representative of 2 At this time the Union was known as United Woodworkers Local Industrial Union'No 464, affiliated directly w ith the Congress of Industrial Organizations In the fall of 1938 an international , United Furniture Workers of America , was set up and thereafter the Union became affiliated with that organization 1112 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Companies in August 1937, the Union suggested a three-plant unit. At subsequent negotiations before representatives of the Board, it was again indicated that it might be well to class the Companies as one unit, but the Companies' argument for three sepa- rate units prevailed. In a consent election, arranged for September 22, 1937, elections were held in three separate units and the Union's majority status was established at all three plants. There were fur- ther negotiations after the election and on October 11 a strike was called at all three plants which terminated with the signing of separate, identical contracts with each company, on October 30, 1937. The contracts were renewed on December 5, 1938, with slight modi- fications, their termination occurring the following year when in identical letters dated November 28, 1939, the Companies gave no- tice of their intention to so terminate the contracts.3 At a confer- ence on February 3, 1940, the Union requested recognition as the exclusive bargaining agent for a single unit consisting of the three plants, and at a conference held on March 28 the Companies refused such' exclusive recognition of the Union until it had been certified by the Board. We find that a question has arisen concerning the 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 described in Section I above, has a close, intimate, and substantial relation to trade, traffic, and commerce among the several States, and has led and tends to lead to labor disputes burdening and obstructing commerce and the" free flow of commerce. V. THE APPROPRIATE UNIT The Union desires a unit consisting of production and maintenance employees of the three plants including inside truck drivers, ship- ping department, receiving department, and watchmen, excluding subforemen, foremen, supervisors, office and clerical employees, and management. The only issue is with respect to the propriety of including all three plants within the appropriate unit, the Companies contending that the best interests of the employees will be served by three separate units, since the operations and wage scales of Panel materially differ from those of the other two companies and the 3 Article XII of the contracts provided that they should remain in effect from December 4, 1938, until November 30, 1939, and should be automatically renewed for successive pe- riods of one month each thereafter unless one party should give notice of its desire to terminate the contract thirty days prior to a designated termination date. GETTYSBURG FURNITURE CO. 1113 Companies are distinct entities differing in annual accrued profit and loss. Gettysburg and Reaser are under the common control of four stockholders who hold a majority of their voting stock, while a majority of the stock of Panel is held by the Gettysburg and Reaser as corporate entities. The four stockholders above-mentioned are also officers and directors of the Companies.4 The Companies are under the general managerial supervision of Al. C. Jones, although each plant has a separate superintendent. C. C. Culp is the pur- chasing agent for Reaser and Gettysburg. In 1937 it was decided to create a "personnel committee" consisting of John D. Keith and another, which was to serve as a mediator between the Companies and the Union. Such a committee was created and since that time negotiations of the Companies with the Union have been conducted through that medium.5 The fact that in their relationship to the Union the Companies have acted as a single entity is further evi- denced by letters sent by each to the Union concerning matters of joint interest," and by a joint employee conference in 1938 at which the Companies requested the employees to accept a 10-per cent wage reduction, and a vote was taken to determine their willingness to so do.7 The plants of the Companies are adjacent, each having offices and showrooms in a _ building owned by Reaser, for which Gettysburg and Panel and other companies pay rent to Reaser. The Companies Ilse a common mail truck and telephone switchboard, and share the cost of the International Business Machine system which they em- ploy. The general accounting for all of the Companies is handled by one Boehner, although he is employed separately by each com- pany, and separate accounts for each are kept. Reaser employs stenographic workers for all, and the other two reimburse Reaser for their proportionate share of the cost. * The officers of the Companies are as follows : Presiden t Vice-pres. Secretary Treasurer Labor Negotiator Gettysburg- A. H. Reeser___ None ---------- John E Stable_ E P Miller___ John 1). Keith. Reaser------ John D Keith_ M C Jones-__ C. C. Culp ----- A H. Reeser--- John D. Keith. Panel ------- A. H Reeser___ John D Keith_ John D. Keith_ M. C. Jones ---- John D. Keith. Reeser, Keith, Jones, and Miller are directors of all the companies. The identical contracts of the Union with each of the Companies (supra, Section III) were signed by the respective officers of the Companies and in each instance ,by John D. Keith as negotiator. The union organizer testified that Keith represented the Companies at the sundry negotiations 6 Letters pertaining to the contracts and termination thereof were identical . The Com- panies also sent out identical employee questionnaire blanks. 7 Although a majority of the employees of the three companies were willing to accede to a wage decrease, it was not put into effect because a majority of the union members voted against it. 1114 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The operations of Panel, with the exception of its millroom, differ from those of Gettysburg and Reaser, and consequently there is some difference in rate and mode of pay between Panel and the other two companies. On the other hand the operations of the Companies are integrated in that Panel manufactures veneered panels which are used by the other companies in the manufacture of furniture, and there is some interchange of employees between' the Companies.,, Since the Companies are under common control, they have a uni- tary labor policy, the negotiations between the Companies and the Union have been identical, and the only labor organization involved has for a considerable length of time believed that its interests would be best served by a three-plant unit, we are of the opinion that the three plants constitute an appropriate unit.' We find that all production and maintenance employees of the three plants of the Companies, including inside truck drivers, ship- ping department, receiving department, and watchmen, excluding subforemen, foremen, supervisors, office and clerical employees, and management, constitute a unit appropriate for the purpose of collec- tive bargaining and that said unit will insure to the 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 The Union submitted substantial evidence in suppprt of its claim to represent sixty per cent of the employees of the Companies. The Companies challenge this claim. We find, therefore, that the ques- tion concerning representation can best be resolved by an election by secret ballot. We shall therefore direct the .holding of such an election. We shall direct that all those persons within the appropriate unit on the Companies' pay rolls immediately preceding the date of our Direction of Election 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 J. A question affecting commerce has arisen concerning the repre- sentation of employees of Gettysburg Furniture Company, Gettys- There was adduced in evidence one instance of the lay-off and ultimate rehiring of an employee in another one of the Companies in such a way as to,evade a provision in the contracts prohibiting further reduction in wages e See Matter of New York Post, Inc, and Publishers Service, Inc., and Newspaper Guild of New York, 14 N. L. R. B. 1008, and decisions cited therein GETTYSBURG FURNITURE Co. 1115 burg, Pennsylvania, Reaser Furniture Company, Gettysburg, Penn- sylvania, Gettysburg Panel Company, Gettysburg, Pennsylvania, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the National Labor Relations Act. 2. All production and maintenance employees of the three plants of the Companies, including inside truck drivers, shipping depart- ment, receiving department, and watchmen, excluding subforemen, foremen, supervisors, office and clerical employees, and management, constitute a unit appropriate for the purposes of collective bargain- ing, within the meaning of Section 9 (b) of the National Labor Relations Act. 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 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 bargaining with Gettysburg Furniture Company, Gettysburg, Pennsylvania, Reaser Furniture Company, Gettysburg, Pennsylvania, Gettysburg Panel Company, Gettysburg, Pennsylvania, an election by secret bal- lot 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 for the Fourth 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 all-production and maintenance employees of the three plants of the Companies, including inside truck drivers, shipping depart- ment, receiving department, and watchmen, who are employed dur- ing the pay-roll period immediately preceding the date of this- Direction, including such employees who did not work during such pay-roll period because they were ill or on vacation, and excluding subforemen, foremen, supervisors, office and clerical employees, and management, and further excluding all persons who have since quit or been discharged for cause, to determine whether or not they de- sire to be represented by United Furniture Workers of America, Local 464, C. I. 0., for the purposes of collective bargaining. . MR: WILLIAM M. LEISERSON took no part in the consideration of the above Decision and Direction of Election.