Ryan Aeronautical Co.

In the Matter Of RYAN AERONAUTICAL COMPANY and UNITED • AUTOMOBILE WORKERS OF AMERICA, LOCAL 506, C. I. O. Case No. R-1989.-Decided August 30, 1940 Jurisdiction : airplane manufacturing industry. Investigation " and Certification of Representatives : existence of question: re- fusal to accord recognition-to union; election necessary. Unit Appropriate for Collective Bargaining : hourly,paid production and main- tenance employees, exclusive of -supervisory and clerical' employees, and those employees of the Company who are covered by a contract between the Com- pany and the welders which is now in effect. Practice and Procedure Motion to dismiss petition for investigation and certification of repre- sentatives on ground the report of Regional Director with respect to claims of representation and the Order of Board Directing Investigation and Hearing were ex parte documents which violated the constitutional rights of the employer as guaranteed in the Fifth Amendment, denied. Sloane•& Steiner, by Mr. Fred A. Steiner, of San Diego, Calif., for the Company. - - Gallagher, Wirin cC Johnson, by Mr. Harry A. Kaplan, of Los Angeles, Calif., and Mr. John Bacellar, of San Diego, Calif., for the U. A. W.-C. I. O. Mr. Jimme Goss, of Los Angeles, Calif., and Mr. Merle H. Griffin, of San Diego, Calif., for the Welders. Mr. David H. Karasick, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF `THE CASE On June 28, 1940, United Automobile Workers of America, Local 506, affiliated with the Congress of Industrial Organizations, herein called the U. A. W.-C. I. 0., filed with the Regional Director for the Twenty-first Region (Los Angeles,. California) a petition alleging that a question affecting commerce had arisen concerning the repre- sentation.of employees of Ryan Aeronautical Company, San Diego, California, herein called the Company, and requesting an investiga- 27 N. L. R. B., No. 3. 14 RYAN AERONAUTICAL COMPANY 15 tion and certification of representatives pursuant to Section 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. On July 30, 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 authorized the Regional Director to conduct it and to provide for an appropriate hearing upon due notice. On August 1, 1940, the Regional Director issued a'notice of hearing, and on August 2, 1940, an amendment to notice of hearing, copies of which were duly served upon the Company; the U. A. W.-C. I. 0.; .United Aircraft Welders of America, an unaffiliated labor organiza-. tion, herein called the the Welders; International Association of Machinists; and Pattern Makers Association of Los Angeles. Pur- suant to notice, a, hearing was held on August. 8, 1940, at San Diego; California, before James A. Cobey, the Trial Examiner duly desig-, nated by the Board. The Company and the U. A. W.-C. I. O. were represented by counsel, the Welders by its representatives; all 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. During the course of the hearing, the Trial Examiner made several rulings with respect to the admission of evidence. The Board has reviewed the rulings of the Trial Examiner and finds that no prejudicial'errors were committed. The rulings are hereby affirmed. . , . At the close of the hearing, counsel for the Company moved that a written statement of the Regional Director concerning claims of au- thorization for the purpose of representation be stricken from the record, that the Order Directing Investigation and Hearing be like- wise stricken, and that the petition be dismissed. All three motions were based on the ground that the statement of the Regional Director and,the Order Directing Investigation and Hearing-.Were ex paree documents which violated the constitutional rights of the Company as guaranteed in the Fifth Amendment. The Trial Examiner re- served ruling on these motions. The motions are hereby denied. Upon the entire record in the case, the Board makes the following: FINDINGS OF FACT I. THE BUSINESS OF THE COMPANY Ryan Aeronautical Company is a California corporation, having its principal place of. business at San Diego, California. It is there engaged in the manufacture and sale of airplanes and airplane parts for both commercial and military use. The principal raw materials 16 DECISIONS OF NATIONAL LABOR RELATIONS BOARD used are aluminum alloy, chrome molybdenum, stainless steel, fabrics, instruments, and accessories, all of which come from points outside California, and paints, varnishes, standard parts, engines, and rubber, some of which come from points outside California. During the fiscal year July 1, 1939, to June 30, 1940, the Company purchased ap- proximately $428,000 worth of raw materials. Approximately 10 per cent of these purchases were made directly by the Company from suppliers located outside the State; approximately 90 per cent were madelocally. - Of these locally made purchases, however, a substantial portion-of the materials were secured from points outside the State. During the fiscal year July 1, 1939, to June 30, 1940, the Company's sales of airplanes and airplane parts aggregated $1,838,000. 'Of these, approximately 54 per cent were sold within the State, approxi- mately 25 per cent were sold to purchasers located outside the State, and approximately 21 per cent, exclusive of. the above stated percent- ages, were sold to the United States Government. The Company now employs approximately 750 employees, and maintains, an annual pay roll of approximately $900,000. The Company did not contest the jurisdiction of the Board.' II. THE ORGANIZATIONS INVOLVED United Automobile Workers. of America, Local, 506, affiliated with the Congress'of Industrial Organizations, is a labor organization admitting to its membership employees of the Company. United Aircraft Welders of America, an unaffiliated union, is a labor organization admitting to its membership all welders, appren- tice welders, and helpers employed by the Company, exclusive. of oper- ators of mechanical spot-welding machines. III. THE QUESTION CONCERNING REPRESENTATION On June 24, 1940, the U. A. W.-C. I. O. wrote to' the Company requesting a meeting for the purpose of negotiating "a sole bargaining agreement." The Union stated that it represented a substantial ma- jority of the hourly. paid production:ethploy ees of the Company,. and that, in the event the Company ref used to, meet, the Union would request the Board to hold an election. On. June 27, 1940, the Company wrote in reply that "it has been and is a policy of this company to meet with any of its employees individually or collectively at any time they desire to meet with the management; or its representative for any purpose whatsoever, and we are continuing to follow this procedure." A report of the Regional Director of the Board with respect to the ' See Matter of Ryan Aeronautical Co. and United Aircraft Welders of America, Ind., 15 N. L. R. B. 812. . RYAN AERONAUTICAL COMPANY 17 representation claims of the U. A. W.-C. I. O. was introduced into' evidence at the hearing. The report, which was based on membership application cards and signatures to petitions designating the U. A. W.- C. 1. 0. as the bargaining agent of the signers, shows that the U. A. W.- C. I. O. represents a substantial number of employees of the Company. We find that a question has arisen concerning the representation of employees of the Company. IV. THE EFFECT OF THE QUESTION CONCERNING REPRESENTATION UPON COMMERCE We find that the question concerning representation wliicli 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 U. A. W.-C. I. O. urges that all. the hourly paid production and maintenance employees of the Company at its San Diego, California, plant, exclusive of supervisory and clerical employees, and exclusive also of those employees covered by a contract between the Company and the Welders which is now in effect,' constitute an appropriate bargaining unit. Neither the Company nor the Welders objected to such a unit. We find that all the hourly paid production and maintenance em- ployees of the Company at its San Diego, California, plant, exclusive of supervisory and clerical employees, and those employees of the Company who are. covered by a contract between the Company and the Welders which is now in effect, constitute a unit appropriate for purposes of collective bargaining and that such unit will insure, to employees of the Company the, full benefit of their right to self- I in organization and to collective bargaining and otherwise effectuate the policies of the Act. VI. THE DETERMINATION OF REPRESENTATIVES At the hearing the.Company and the U. A. W.-C. I. O. assumed that the Board would direct an election. We find that the 'question 2 The contract is not in evidence. It was entered into shortly after the Board certified the Welders as the exclusive representative of those employees of the Company who spent more than 50 per cent of their working time in oxy-actylene, oxy-hydrogen, and electric are welding, in gas torch cutting and in the work of welders' helpers, excluding such of those employees having the, right to hire and discharge. See Matter of Ryan Aeronautical Co. and United Aircraft Welders of America, Ind.; 17 N. L. R. B. 231. 12342S-42-vol. 27-3 18 DECISIONS OF NATIONAL LABOR RELATIONS BOARD which has arisen concerning the representation of employees of the. Company can best be resolved by an election by secret ballot. - The Company is presently undergoing a program of plant expan-. Sion which, when completed, will result in an estimated 25 per cent increase in the number of employees. At the time of the hearing, new employees were being hired at the rate of approximately six, a clay. Counsel for the Company requested that, ;should the-Board. direct an election, employees whose navies appear on the pay roll next 'preceding the date of the'Direction of Election be' eligible to vote. Counsel for U. A. W.-CI. : O., however, requested' that eligi- bility-bedetermined as of the date the petition was filed. Ln.accord- ance with our usual practice, the pay roll immediately .piec,,ding the date of the Direction of-Election will be used for the purpose of de- termininig, eligibility to vote. We shall direct that those eligible'.to' vote ' shall be .the employees in the appropriate unit. whose names: appear. upon the Company's pay roll immediately preceding the date of this Direction of Election, including any employees-who did not work during said pay-roll period.because they were ill or on vaca- tion, and employees who were then or have since been temporarily laid off, but excluding those who have since quit or 'been. discharged for cause. At the close,of the hearing, counsel for the Company moved that, in the event that an election was ordered, all labor organizations that have any. membership whatever in the plant be given a place on the ballot. The Trial Examiner reserved ruling on this motion'. No labor organization other than the U. A. W:-C. I.' O. having made a showing of substantial membership among the employees of the "Unit here found appropriate, the motion is hereby denied. 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 1. A question affecting commerce has arisen concerning the repre- sentation of employees of Ryan Aeronautical Company, San Diego,. California, within the meaning of. Section 9 (c) and Section 2 (6) and (7) of the National Labor Relations Act. 2. All hourly paid production and maintenance employees of the Company at its San Diego, California, plant, exclusive of supervisory and clerical employees, and exclusive also of those employees covered by a contract between the Company and the Welders which is now in effect, constitute a unit appropriate for the purposes of collective. bargaining, within the meaning of Section 9 (b) 'of the Act. RYAN AERONAUTICAL COMPANY 19' 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.amendecl; it is- hereby DIRECTED that, as part of the investigation au"ihorized by the Board to ascertain representatives for the purposes of collective bargaining with Ryan Aeronautical Company, San Diego, California, an election 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 for the Twenty-first Region, acting in this matter as agent for the Na- tional Labor Relations "Board and subject to Article III, Section.9, of said Rules and Regulations, among all hourly paid 'production and maintenance employees of Ryan Aeronautical Company, San- Diego, California, whose names appear upon the Company's pay roll immediately preceding the date of this Direction of Election, includ i`ng any employees who, did not work during said pay-roll period- because they were ill or on vacation, and employees who were then, or have since been temporarily laid off, but excluding supervisory and clerical employees, and those employees, covered by' a contract between the Company' and the Welders which is now in effect, and employees who have since quit or been discharged for cause, to deter- mine whether or not they desire to be represented by United' Auto; mobile Workers of America, Local 506, affiliated with the Congress' of Industrial Organizations, for'the purposes of collective bargaining. [SAME TITLE] . .CERTIFICATION OF REPRESENTATIVES . October 01, 1940 - On August 30, 1940, the National Labor Relations Board, herein called the Board, issued its Decision a,nd'Direction of 'Election in the above-entitled proceeding. Pursuant to the Direction of- Election, an election by secret ballot was conducted on September 20, 1940, under the ' direction and supervision of the Regional Director for the Twenty-first Region (Los Angeles, California). On September 23, 1940, 'the' Regional Director, acting pursuant to Article III, Section 9, of National Labor Relations Board Rules and Regulations-Series.2,: 20 DECISIONS OF NATIONAL LABOR RELATIONS BOARD as amended, issued and duly served upon the parties an Election Report. As to the balloting and its results, the Regional Director reported as follows : Total on eligibility list------------------------------------- 776 Total ballots cast------------------------------------------ 667 Total ballots challenged------------------------------------- 38 Total void ballots------------------------------------------ 1 Total blank ballots----------------------------------------- 1 Total ballots not counted----------------- ----------------- ------------------ 40 Total ballots counted---------------------------------- -- --- 627 Total votes for. International Union, United Automobile Work- ers of America, Local No. 506, affiliated with the C. I. O__ 354 Total votes against International Union, United Automobile Workers of America, Local No. 506, affiliated with the C. I. 0---------------------------------------------------- 273 By letter dated September 20, 1940, and received by the.Regional Director on September 24, 1940, the Company filed objections to the conduct of the election. On September 24, 1940, the Regional Di- rector, acting pursuant to Article III, Section 9, of National Labor Relations Board Rules and Regulations-Series 2, as amended, issued a report on objections to the conduct of the election. Objection to the Conduct of the Election and to the Election Re- port, dated September 27, 1940, were filed by the Company with the Regional Director. On October 4, 1940,, the Regional Director, acting pursuant to Article III, Section 9, of National Labor Relations Board Rules and Regulations-Series 2, as amended, issued a report on Objection to the Conduct of the Election and to the Election Report., We have considered the Company's objections : and the Regional. Director's Reports thereon. We find that the objections raise no substantial and material issues with respect to tho conduct of the ballot or the Election Report. The objections are hereby 'overruled. By virtue of and pursuant to the power vested in they National Labor Relations Board by Section 9 (c) of the National Labor Rela- tions Act, 49 Stat. 449, and pursuant to Article III, Sections 8 and 9, of National Labor Relations Board Rules and Regulations-Series 2, as amended, IT IS HEREBYi CERTIFIED that United Automobile Workers of Amer ica, Local 506, affiliated with the Congress of Industrial Organiza- tions, has been designated and selected by a majority of,the hourly paid production and maintenance employees of Ryan Aeronautical Company, at its San Diego, California, plant, exclusive of super- visory and clerical employees, and those employees ' of the Company who are covered by a contract between the Company and the Welders RYAN AERONAUTICAL COMPANY 21 which is now in. effect, as their representative for the, purposes of collective bargaining , and that, pursuant to Section 9 (a) of the Na- tional Labor Relations Act, United Automobile Workers of America, Local 506, affiliated with the Congress of Industrial Organizations, is the exclusive representative of all such employees for the purposes of collective bargaining in respect to rates of pay, wages , hours of employment, and other conditions of employment. 27 N. L. R. B., No. 3a.