Standard Novelties, Inc.

In the Matter of STANDARD NOVELTIES, INC. AND STANDARD HAND- BAGS, INC. and INTERNATIONAL LADIES' HANDBAG, POCKETBOOK & NOVELTY WORKERS UNION, A. F. OF L. Case No. C-1512-Decided April 8, 1940 Ladies Handbag Manufactur ing Industr2/-Settlement : stipulation providing for compliance with Act, including award of lump sum for back pay, and dismissal of allegation of refusal to bargain-Order: entered on stipulation. - Mr. Jacob Blum and Mr. Millard L. Midonick, for the Board. Mr. Samuel Brodsky, for the respondents. Mr. Elias Lieberman, by Mr. Robert E. Truehaft, for the Union. Mr. David Rein, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon charges and amended charges duly filed by International Ladies' Handbag, Pocketbook & Novelty Workers Union, A. F. of L., herein called the Union, the National Labor Relations Board, herein called the Board, by the Regional Director for the Second Region (New York City), issued its complaint, dated March 21, 1939, against Standard Novelties, Inc., Plainfield, New Jersey, herein called the first respondent, alleging that the first respondent had engaged in and was engaging in unfair labor practices within the meaning of Section 8 (1), (3), and (5) and Section 2 (6) and (7) of National Labor Relations Act, 49 Stat. 449, herein called the Act. Copies of the complaint, accompanied by notices of hearing thereon, were duly served upon the first respondent and the Union. On July 15, 1939, the first respondent filed an answer to the complaint, denying the unfair labor practices alleged therein, and averring that it had dis- continued its business. Pursuant to notice, a hearing was held on July 24, 1939, at New York City before Webster Powell, the Trial Examiner duly designated by the Board. The Board, the first re- spondent, and the Union were represented by counsel and participated in the hearing. 22 N L R. B., No. 48. 784 STANDARD NOVELTIES, INC. 785 At the hearing, upon motion of counsel for the Board, the hear- ing was adjourned in order to permit the filing of an amended com- plaint. This ruling is hereby affirmed. Thereafter, upon amended charges duly filed, the Board, by the Regional Director, issued its amended complaint, dated September 12, 1939, against Standard Novelties, Inc. and Standard Handbags, Inc., herein jointly called the respondents, alleging that the respondents had engaged in and were engaging in unfair labor practices within the meaning of Section 8 (1), (3), and (5) and Section 2 (6) and (7) of the Act. Copies of the complaint, accompanied by notices of hearing thereon were duly served upon the respondents and the Union. With respect to the unfair labor practices the complaint alleged in substance (1) that the respondent Standard Handbags, Inc., herein called the second respondent, is the successor to the business enterprise previously conducted by the first respondent; (2) that on or about August 24, 1938, and at all times thereafter the re- spondents refused to bargain collectively with the Union which had been designated as the exclusive representative for a majority of its employees in an appropriate unit; (3) that the respondents urged, persuaded, and warned their employees to refrain from becoming or remaining members or participating in activities in support of the Union, threatened said employees with discharge or other reprisals if they became or remained members thereof, and kept under surveil- lance the meetings and meeting places and concerted activities of the members of the Union; (4) that the first respondent discharged Sol Simon, Mary Napolitano., and John Napolitano because they joined and assisted the Union and engaged in other concerted activities for the purposes of collective bargaining and other mutual aid and protection and that the respondents have refused to reinstate the said persons; (5) that the respondents refused to reinstate employees who went on strike and continued on strike because of the unfair labor practices of the respondents, for the reason that these em- ployees joined and assisted the Union and engaged in other concerted activities for the purposes of collective bargaining and other mutual aid and protection; (6) that the first respondent caused the second respondent to be formed and incorporated for the purpose of enabling both respondents to defeat and evade their obligations under the National Labor Relations Act; and (7) that by these acts the respond- ents interfered with, restrained, and coerced their employees in the exercise of the rights guaranteed in Section 7 of the Act. On Sep- tember 28, 1939, the respondents filed a joint answer to the complaint denying the unfair labor practices alleged therein. Thereafter on March 20, 1940 the respondents and counsel for the Board entered into a stipulation in settlement of the case. This stipulation provides as follows : 786 DECISIONS OF NATIONAL LABOR RELATIONS BOARD STIPULATION IT IS HEREBY STIPULATED AND AGREED by and between Standard Novelties, Inc., Standard Handbags, Inc., and Millard L. Midonick, Attorney for the National Labor Relations Board, Second Region : I. Upon charges duly filed by International Ladies' Handbag, Pocketbook & Novelty Workers Union, A. F. of L., hereinafter called the Union, the National Labor Relations Board, herein- after called the Board, by Elinore Al. Herrick, Region Director for the Second Region, New York City, acting pursuant to authority granted in Section 10 (b)' of the National Labor Relations Act, 49 Stat. 449, hereinafter called the Act, and its Rules and Regulations-Series 2, Article IV, Section 1, issued its Amended Complaint on the 12th day of September 1939, against Standard Novelties, Inc., and Standard Handbags, Inc., hereinafter called the respondents. II. A copy of the Fourth Amended Charge, Amended Com- plaint, Notice of Hearing thereon and National Labor Relations Board Rules and Regulations-Series 2, were duly served upon the respondents and the Union. III. The respondent, Standard Novelties, Inc., is and has been since November 15, 1933, a corporation duly organized under and existing by virtue of the laws of the State of New Jersey, having its principal office and place of business at 324 West Front Street, in the City of Plainfield, County of Union and State of New Jersey, and had been until about December 15, 1939, con- tinuously engaged at its place of business at 324 West Front Street, in the City of Plainfield, County of Union and State of New Jersey, hereinafter called the First Plant, in the manufac- ture, sale and distribution of ladies' handbags. Standard Novel- ties, Inc., has not engaged in the business of the manufacture, sale and distribution of ladies' handbags or in any other business since about December 15, 1939. IV. The respondent Standard Handbags, Inc., is and has been since about November 17, 1938, a corporation duly organized under and existing by virtue of the laws of the State of New Jersey, having its principal office and place of business at 312 West Second Street, in the City of Plainfield, County of Union, and State of New Jersey, and is now and has been continuously engaged since about March 1st, 1939, at its place of business at 312 West Second Street, in the City of Plainfield, County of Union, and State of New Jersey, hereinafter called the Second Plant, in the manufacture, sale and distribution of ladies' hand- bags. STANDARD NOVELTIES, INC. 787 V. Each of the respondents normally purchases annually imi- tation leather, silk, metal frames, paper and mirrors to be used in their manufacturing operations amounting in value to ap- proximately $100,000. Approximately 60 per cent in value of those materials were and are normally shipped to the First Plant or the Second Plant from points outside the State of New Jersey. VI. Each of the respondents normally distributes and sells annually finished products amounting in value to approxi- mately $170,000. Approximately 80 per cent in value of these finished products manufactured by the respondents were and are normally shipped to points outside the State of New Jersey. The respondents during the conduct of manufacturing opera- tions employ salesmen on the Pacific coast of the United States and in the State of Illinois. VII. Both respondents have from their respective inceptions been closed corporations all of whose stock has been owned by Julius Miller, Leon Miller, and Sarah Miller. Julius Miller has been and is president of each of the respondents and his son, Leon Miller, and his wife, Sarah Miller, have been and are secre- tary-treasurer and vice-president, respectively, of each of the re- spondents. Respondent Standard Handbags, Inc., manufactures substantially the same products, in the same manner, with sub- stantially the same supervisory force, as had previously existed during the conduct of manufacturing operations by respondent Standard Novelities, Inc. Respondent Standard Handbags, Inc., for the purpose of settlement of the above-entitled matter as- sumes the obligations under the Act of Standard Novelties, Inc. VIII. During the period when it conducted manufacturing operations, respondent Standard Novelties, Inc. was engaged in interstate commerce within the meaning of the Act. Respond- ent Standard Handbags, Inc., is and has been engaged in inter- state commerce within the meaning of the Act. IX. International Ladies' Handbag, Pocketbook & Novelty Workers Union, affiliated with the American Federation of Labor, is and has been a labor organization within the meaning of Section 2, subsection (5) of the Act. X. The respondents and the union hereby waive in the above entitled matter the right to a further hearing, to the taking of further testimony or other evidence before a trial examiner, and to the making of findings of fact and conclusions of law by the Board pursuant to the provisions of the Act. XI. This stipulation, together with the Fourth Amended Charge and the Amended Complaint herein, the affidavit of service of said documents dated September 18, 1939, with cor- responding returned receipts, and the answer of respondents to 788 DECISIONS OF NATIONAL LABOR RELATIONS BOARD said Amended Complaint may be introduced into the record in the above entitled matter by filing the said documents with the Chief Trial Examiner of the Board at Washington, D. C. XII. This entire stipulation is subject to the approval of the National Labor Relations Board, and shall become effective im- mediately upon the granting of such approval by the Board. XIII. It is further stipulated that upon the entire record in the above-entitled matter, including this stipulation if ap- proved by the Board the Board may forthwith or at any future time enter the Order set forth below in paragraph XIV and that upon application by the Board without further notice to the respondents, the United States Circuit Court of Appeals for the Third Circuit or any other appropriate court, as provided in Section 10, subdivision (e), of the Act, may enter a decree embodying and enforcing said Order of the Board, and that the respondents hereby expressly consent thereto and expressly waive their rights to contest the entry of such a decree. XIV. The Order referred to above in paragraph XIII shall provide as follows : The respondents, Standard Novelties, Inc., and Standard Handbags, Inc., their officers, agents, successors, and assigns shall : 1. Cease and desist from : (a) Discouraging membership in International Ladies' Hand- bag, Pocketbook & Novelty Workers Union, A. F. of L., or any other labor organization of their employees, by laying off, dis- charging, refusing to reinstate, or in any other manner dis- criminating in regard to the hire or tenure of employment of their employees or any term or condition of employment of their employees because of membership in, or activity in con- nection with, any such labor organization; (b) In any other manner interfering with, restraining or coercing their employees in the exercise of the rights of their employees to self-organization, to form, join or assist labor or- ganizations, 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 protec- tion as guaranteed in Section 7 of the National Labor Rela- tion Act. 2. Take the following affirmative action : (a) Make whole an employee the loss of pay he has suffered by having been discharged and refused reinstatement, by pay- ment of the sum of Fifty ($50) Dollars to the Regional Direc- tor for the Second Region of the National Labor Relations Board. STANDARD NOVELTIES, INC. 789 (b) Immediately post notices in conspicuous places through- out the plant at 312 West Second Street, Plainfield, New Jersey, and maintain such notices for a period of sixty (00) consecutive days stating that the respondents will cease and desist in the manner set forth in 1 ( a) and (b) and that the respondents will take the affirmative action set forth in 2 (a ) of this Order; and (c) Notify the Regional Director for the Second Region in writing within ten (10) days from the date of this Order of the steps respondents have taken to comply herewith. AND IT IS FURTHER ORDERED that the Amended Complaint be, and it hereby is, dismissed in so far as it alleges that the re- spondents engaged in unfair labor practices within the meaning of Section 8 (5) of the Act. XV. It is expressly understood that the terms of this stipula- tion embody the entire agreement between the parties hereto, and it is further understood that there is no verbal or other agreement of any kind which in substance or effect in any way varies, alters, or adds to the stipulation. On March 28 , 1940, the Board issued its Order approving the above stipulation , making it part of the record, and transferring the proceeding to the Board for the purpose of entry of a decision and order by the Board pursuant to the provisions of the -stipulation. Upon the above stipulation and the entire record in the case, the Board makes the following : - - FINDINGS OF FACT I. THE BUSINESS OF THE RESPONDENTS The respondent Standard Novelties , Inc., is a New Jersey corpora- tion having its principal office and place of business in Plainfield, New Jersey, and until about December 15, 1939, was continuously engaged at its place of business in the manufacture, sale, and dis- tribution of ladies' handbags. It has not engaged in business since about December 15, 1939. The respondent Standard Handbags, Inc., is a corporation organized on about November 17, 1938, under the laws of the State of New Jersey and having its principal office and place of business at Plainfield , New Jersey. It has been continuously engaged since about March 1, 1939 , in the manufacture, sale, and distribution of ladies' handbags. Standard Handbags, Inc., has the same ownership, management , and control as has Standard Novelties, Inc. When engaged in business, each of the respondents purchases annually raw materials such as imitation leather, silk , metal frames, paper, and mirrors to the value of approximately $100,000, approxi- 2S3033-I1-vol 22-51 790 DECISIONS OF NATIONAL LABOR RELATIONS BOARD mately 60 per cent of which is shipped to the plants of the respond, ents from points outside the State of New Jersey, and sells annually finished products amounting in value to approximately $170,000, ap- proximately 80 per cent of which is shipped by the respondents to points outside of the State of New Jersey. In addition, the respond- ents, when engaged in business, employ salesmen on the Pacific coast of the United States and in the State of Illinois. The stipulation set forth above states that Standard Novelties, Inc., was, and Standard Handbags, Inc., has been and is, engaged in interstate commerce within the meaning of the Act. We find that the above-described operations of the respondents constitute a continuous flow of trade, traffic, and commerce among the several States. ORDER Upon the basis of the above findings of fact and stipulation, and pursuant to Section 10 (c) of the National Labor Relations Act, the National Labor Relations Board hereby orders that the respondents Standard Novelties, Inc. and Standard Handbags , Inc., and their officers, agents, successors, and assigns shall : 1. Cease and desist from : (a) Discouraging membership in International Ladies' Handbag, Pocketbook & Novelty Workers Union , A. F. of L., or any other labor organization of their employees, by laying off , discharging, refusing to reinstate, or in any other manner discriminating in regard to the hire or tenure of employment of their employees or any term or condition of employment of their employees because of membership in, or activity in connection with , any such labor organization; (b) In any other manner interfering with, restraining , or coercing their employees in the exercise of the rights of their employees to self-organization , to form, join or assist labor organizations , to bar- gain collectively through representatives of their own choosing and to engage in concerted activities for the purpose of collective bar- gaining or other mutual aid or protection as guaranteed in Section 7 of the National Labor Relations Act. 2. Take the following action : (a) Make whole an employee the loss of pay he has suffered by having been discharged and refused reinstatement , by payment of the sum of Fifty ($50) Dollars to the Regional Director for the Second Region of the National Labor Relations Board. (b) Immediately post notices in conspicuous places throughout the plant at 312 West Second Street, Plainfield , New Jersey, and main- tain such notices for a period of sixty ( 60) consecutive days stating that the respondents will cease and desist in the manner set forth STANDARD NOVELTIES, INC. 791 in 1 (a) and (b) and that the respondents will take the affirmative action set forth in 2 (a) of this Order; and (c) Notify the Regional Director for the Second Region in writ- ing within ten (10) days from the date of this Order of the steps respondents have taken to comply herewith. AND IT IS FURTHER ORDERED that the Amended Complaint be, and it hereby is, dismissed in so far as it alleges that the respondents en- gaged in unfair labor practices within the meaning of Section 8 (5) of the Act.