McLoughlin Manufacturing Co.

In the Matter of MCLOUGHLIN MANUFACTURING COMPANY and AMAL- GAMATED CLOTHING WORKERS OF AMERICA, LOCAL #373, AFFILIATED WITH THE C. I. O. Case No. R-1961.-Decided August 1 4, 19/0 Jurisdiction : garment manufacturing. Investigation and Certification of Representatives : existence of question: re- fusal to accord recognition to union and request that certification be obtained; election necessary. Employees laid off because of seasonal slump held eligible to vote. Unit Appropriate for Collective Bargaining : production employees exclusive of supervisory, clerical, and maintenance employees. Definitions Employees laid off because of seasonal slump in business held to be still employees of the Company where its policy is to reemploy the same employees from year to year for the work of the peak season. Mr. L. T. Dwyer, of Indianapolis, Ind., for the Company. Mr. Leon M. Despres, of Chicago, Ill., Mr. Harold E. Freed, of South Bend, Ind., and Mr. Frank Napolitano, of Indianapolis, Ind., for the Union. Miss Grace AlIcEldowney, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF THE CASE On April 10, 1940, Amalgamated Clothing Workers of America, Local #373, affiliated with the C. I. 0., herein called the Union, filed with the Regional Director for the Eleventh Region (Indianapolis, Indiana) a petition alleging that a question affecting commerce had arisen concerning the representation of employees of McLoughlin Manufacturing Company, Peru, Indiana, herein called the Company, and requesting an investigation and certification of representatives pursuant to Section 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. On July 15, 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 Rela- tions Board Rules and Regulations-Series 2, as amended, ordered an 26 N. L R. B., No. 62. 578 McLOUGHLIN MANUFACTURING COMPANY 57.9 nvestigation and authorized the Regional Director to conduct it and to provide for an appropriate hearing upon due notice. On July 18, 1940, the Regional Director issued a notice of hearing, copies of which were duly served upon the Company and the Union. Pursuant to the notice, a hearing was held on July 25, 1940, at Peru, Indiana, before Arthur R. Donovan, the Trial Examiner duly desig- nated by the Board. The Company was represented by its president, and the Union by counsel and by two of its representatives, all of whom participated 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. Upon the entire record in the case, the Board makes the following FINDINGS OF FACT I. THE BUSINESS OF THE COMPANY McLoughlin Manufacturing Company is an Indiana corporation which has its principal office at Indianapolis, Indiana. At its plant at Peru, Indiana, it is engaged in the manufacture of underwear and sportswear of woven cotton and rayon knitted fabrics. During ,the 10 months ending June 1, 1940, it purchased raw materials to the value of approximately $300,000, of which 90 per cent were shipped to the plant from outside the State. Its finished products during the same period were valued at approximately $400,000, of which 90 per cent were shipped to points outside the State. The parties stipulated that the Company is engaged in commerce within the meaning of the Act. II. THE ORGANIZATION INVOLVED Amalgamated Clothing Workers of America, Local #373, affiliated with the C. I. 0., is a labor organization which admits to membership employees of the Company. III. TIIE QUESTION CONCERNING REPRESENTATION The Company and the Union stipulated for the purpose of this proceeding that the Company refused to recognize the Union until certified by the Board. In its petition the Union claimed to represent 70 per cent of 150 employees in the unit that we have found to be appropriate. In support of its claim it submitted to the Regional Director 97 authorization and application cards, 73 of which bore signatures of persons whose names appear on the Company's pay roll of April 6, 1940. We find that a question has arisen concerning the representation of employees of the Company. 580 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 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 Company described in Section I above, has a close, intimate, and substantial relation to trade, traffic, and commerce among the several States and tends to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE APPROPRIATE UNIT The parties stipulated that the appropriate unit should consist of all production employees of the Company, exclusive of supervisory, clerical, and maintenance employees. We see no reason to depart from the desires of the parties in this regard. We find that all production employees of the Company employed at its plant at Peru, Indiana, excluding supervisory, clerical, and maintenance employees, constitute a unit appropriate for the purposes of collective bargaining, and that said unit will insure to employees of the Company 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 As already noted the Union claimed to represent 70 per cent of 150 employees in the unit that we have found to be appropriate, and submitted to the Regional Director evidence of substantial member- ship. We find that the question concerning representation can best be resolved by means of an election by secret ballot. The Union requested that the pay roll of March 16, 1940, be used to determine eligibility to vote, whereas the Company asked to have the pay roll of June 15, 1940, used for this purpose. Between March 16 and June 15 some 50 employees were laid off because of a seasonal slump in the business of the plant. It is admittedly the policy of the Company to reemploy the same employees from year to year for the work of the peak season, which ordinarily extends from November until the end of March. For this reason such employees have an interest in bargaining negotiations with the Company, and are in effect only temporarily laid off. Under the circumstances we consider that the employees who are laid off after March 16 are still employees of the Company and are entitled to participate in the choice of repre- sentatives. In accordance with our usual practice we shall direct that employees eligible to vote shall be those within the appropriate unit during the pay-roll period immediately preceding the Direction of Election herein. Upon the basis of the foregoing findings of fact and upon the entire record in the proceedings, the Board makes the following: McLOUGHLIN MANUFACTURING COMPANY 581 CONCLUSIONS OF LAw 1. A question affecting commerce has arisen concerning the repre- sentation of employees of McLoughlin Manufacturing Company, Peru, Indiana, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the National Labor Relations Act. 2. All production employees of the Company , exclusive of super- visory, clerical , and maintenance employees, constitute a unit appro- priate for the purposes of collective bargaining , within the meaning of Section 9 (b) of the 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 , 49 Stat. 449 , 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 authorized by the Board to ascertain representatives for the purposes of collective bargaining with McLoughlin Manufacturing Company, Peru , Indiana, an elec- tion by secret ballot shall be conducted as early as possible but not later than thirty (30) days from the date of this Direction of Election, under the direction and supervision of the Regional Director of the Eleventh 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 employees of the Com- pany employed at its plant at Peru, Indiana, who were employed during the pay-roll period next preceding the date of this Direction of Election, including employees who did not work during such pay- roll period because they were ill or on vacation and employees who were then or have since been temporarily laid off , but excluding super- visory, clerical , and maintenance employees , and any employees who have since quit or been discharged for cause , to determine whether or not they desire to be represented by Amalgamated Clothing Workers of America , Local #373, affiliated with the C . 1. 0., for the purposes of collective bargaining. MR. EDWIN S . SMITH took no part in the consideration of the above Decision and Direction of Election. 323429-42-vol 26-33