Cluett, Peabody & Co., Inc.

In the Matter Of CLUETT, PEABODY & CO., INC. and AMALGAMATED CLOTHING WORKERS OF AMERICA Case No. 0-1531.-Decided April 10, 1940 Shirt Manufactu?ing Industry-Settlement: stipulation providing for com- pliance with the Act-Order : entered on stipulation. Mr. John C. McRee and Mr. William E. Spencer, for the Board. Sullivan c0 Cromwell, by Mr. John C. Bruton, Jr., and Mr. Marshall MacDuge, Jr., of New York City, for the respondent. Mr. May Bagwell and Mr. Bernard Borah, of Atlanta, Ga., for the Union. Mr. Louis Cokin, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon charges and amended charges duly filed by Amalgamated Clothing Workers of America, herein called the Union, the National Labor Relations Board, herein called the Board, by the Regional Director for the Tenth Region (Atlanta, Georgia), issued its complaint dated February 10, 1940, against Cluett, Peabody & Co., Inc., Atlanta, Georgia, 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. Copies of the complaint and notices of hearing thereon were duly served upon the respondent, the Union, and upon Free Workers League, herein called the League, a 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 League and gave it financial and other support; (2) that the respondent threatened its employees with lay-offs if they joined the Union and advised its employees to with- draw from it; and (3) that by these and other acts the respondent 22 N. L. R. B., No. 58 841 842 DECISIONS OF NATIONAL LABOR RELATIONS BOARD interfered with, restrained, and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act. On February 19 and March 11, 1940, respectively, the Regional Director issued an amended and second amended notice of hearing. On February^'29',1'1940, the League filed with the Regional Director a motion to intervene. On March 11, 1940, the respondent filed a motion for a bill of particulars. Pursuant to the second amended notice of hearing, a hearing was held on March 28 and 30, 1940, at Atlanta, Georgia, 'before Henry W. Schmidt, the Trial Examiner duly designated by the Board. The Board, the respondent, and the Union were represented by counsel and participated in the hearing. Although served with notice, the League did not appear at the hearing. On March 28, 1940, the respondent filed an answer to the complaint. On March 30, 1940, during the course of the hearing, the respond- ent, the Union, and counsel for the Board entered into a stipulation in settlement of the case. The stipulation provides as follows : STIPULATION Charges and amended charges having been filed with Charles N. Feidelson, Regional Director of the National Labor Rela- tions Board for the Tenth Region, complaint was issued and served on all parties, wherein and whereby it was alleged that Cluett, Peabody & Co., Inc., respondent herein, had engaged in unfair labor practices in violation of Section 8, subsections (1) and (2) of the National Labor Relations Act (49 Stat. 449). On February 29, 1940, the Free Workers League filed a Motion to Intervene. Pursuant to notice, a hearing was held at Atlanta, Georgia on March 28, 1940 before Henry W. Schmidt, duly authorized to act as Trial Examiner. At the hearing, no one appeared for the Free Workers League, and J. W. Guffin, the president of the League and the person who signed the Motion to Intervene, announced that the League had disbanded and did not desire to press its Motion. Guffin testified that at a meeting on March 14, 1940, all of the members of the League present voted to disband, and he stated that the League no longer existed as a labor organization. It being the intention of the parties to dispose of the matters which have arisen, it is hereby stipulated and agreed by and among Cluett, Peabody & Co., Inc., by its vice-president, R. O. Kennedy, Amalgamated Clothing Workers of America, by its representative, Bernard Borah, and John C. McRee, attorney for the National-Labor Relations Board, as follows: CLUETT, PEABODY & COMPANY, INC . 843 I Cluett, Peabody & Co., Inc. is a corporation, organized and existing under the laws of the State of New York and licensed to f do business in the State of Georgia. It is engaged in the manufacture, sale and distribution of collars, ties, underwear, shirts and handkerchiefs. Its principal office is situated in the State of New York. It operates a plant in Fulton County near the City of Atlanta, Georgia. The said company also operates plants in the states of New York and Massachusetts, maintain- ing sales offices in New York, N. Y., Chicago, Illinois, St. Louis, Missouri and San Francisco, California. All of the company's finished products are sold under the registered trade-mark of "Arrow." The Atlanta plant is engaged in the manufacture of men's shirts. The principal raw materials used at its Atlanta plant are cotton cloth, buttons and thread. The approximate value of the raw materials used during the year 1939 was $1,700,000. Approxi- mately 25 per cent of the raw materials used was purchased and shipped from states other than the State of Georgia. During the same year, the plant produced approximately 235,000 dozen shirts, valued at approximately $3,500,000. Of the shirts produced approximately 90 per cent was shipped to states other than the State of Georgia. There are about 800 employees in the Georgia plant. Respondent admits, for the purposes of this proceeding, that it is engaged in interstate commerce within the meaning of Section 2, subsections (6) and (7) of the said National Labor Relations Act. II The respondent, Cluett, Peabody & Co., Inc., waives all further and other procedure provided by the National Labor Relations Act, or the Rules and Regulations of the National Labor Relations Board, including the making of findings of fact and conclusions of law. III On the basis of the facts stipulated in paragraph I above, the pleadings heretofore filed, this stipulation, and by agreement of ,the parties hereto, the National Labor Relations Board may enter its Order in-the following form in the above-entitled case : DECISIONS OF NATIONAL LABOR RELATIONS BOARD ORDER The National Labor Relations Board hereby orders that Cluett, Peabody & Co., Inc., its officers, agents, successors and assigns : (1) Shall not: (a) Interfere with, restrain, or coerce its employees in the exer- cise of 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 and protec- tion as guaranteed in Section 7 of the Act; (b) In any manner dominate or interfere with the administra- tion of the Free Workers League, or with the formation or admin- istration of any other labor organization of its employees, and shall not contribute support to the Free Workers League or to any other labor organization of its employees. (2) Take the following affirmative action which will effectuate the policies of the Act : (a) Shall not recognize the Free Workers League as a repre- sentative 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; (b) Immediately post in conspicuous places throughout its Atlanta plant, for a period of at least sixty consecutive days, notices setting forth the provisions of sub-paragraphs (a) and (b) of paragraph (1) of this Order ; (c) Notify the Regional Director for the Tenth Region, in writing, within ten days from the date of this Order, what steps respondent has taken to comply herewith. IV. Respondent, Cluett, Peabody & Co., Inc., hereby consents to the entry by the appropriate United States Circuit Court of Appeals, upon application by the Board, of a consent decree en- forcing an Order of the Board in the form hereinabove set forth, and hereby waives further notice of the application for such decree. V. Respondent, Cluett, Peabody & Co., Inc., does not admit any of the allegations of the complaint that it has violated any provision or provisions of the National Labor Relations Act, and expressly denies them, but is entering into this stipulation to settle amicably matters which have arisen, and by reason of the prior dissolution and disbanding of the Free Workers League. VI. The entire agreement is contained within the terms of this stipulation, and there is no verbal agreement of any kind which varies, alters, or adds to this stipulation. CLUETT, PEABODY & COMPANY, INC. 845 VII. It is understood and agreed that this stipulation is subject to the approval of the National Labor Relations Board and shall become effective immediately upon notice to the parties of the granting of such approval. 4 On April 4, 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 Cluett, Peabody & Co., Inc., a New York corporation, operates a plant at Atlanta, Georgia, where it is engaged in the manufacture of men's shirts. It also maintains plants in the States of New York and Massachusetts. This proceeding is concerned only with the plant at Atlanta. The principal raw materials used by the respondent are cotton cloth, buttons, and thread. During 1939 the Atlanta plant expended approximately $1,700,000 for the purchase of raw materials, 25 per cent of which were shipped to it from points outside the State of Georgia. During the same period, the respondent produced 235,000 dozen shirts, valued at approximately $3,500,000, of which approxi- mately 90 per cent were shipped to points outside the State of Georgia. The respondent employs approximately 800 employees at the Atlanta plant. It admits, for the purpose of this proceeding, that it is en- gaged in commerce within the meaning of Section 2 (6) and (7) of the Act. We find that the above-described operations 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 the entire record in the case, and pursuant to Section 10 (c) of the Na- tional Labor Relations Act, the National Labor Relations Board hereby orders that Cluett, Peabody & Co., Inc., Atlanta, Georgia, its officers, agents, successors, and assigns : (1) Shall not: (a) Interfere with, restrain, or coerce its employees in the exercise of the right to self-organization, to form, join, or assist labor organiza- 846 DECISIONS OF NATIONAL LABOR RELATIONS BOARD tions, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purpose of col- lective bargaining and other mutual aid and protection as guaranteed in Section 7 of the Act; (b) In any manner dominate or interfere with the administration of the Free Workers League or the formation or administration of any other labor organization of its employees, and shall not contribute support to the Free Workers League or to any other labor organization of its employees. (2) Take the following affirmative action which will effectuate the policies of the Act: (a) Shall not recognize the Free Workers League as a representa- tive of any of its employees for the purpose of dealing with the re- spondent concerning grievances, labor disputes, wages, rates of pay, hours of employment, or other conditions of work; (b) Immediately post in conspicuous places throughout its Atlanta plant, for a period of at least sixty (60) consecutive days, notices setting forth the provisions of sub-paragraphs (a) and (b) of para- graph (1) of this Order; (c) Notify the Regional Director for the Tenth Region, in writing, within ten (10) days from the date of this Order, what steps the respondent has taken to comply herewith.