The Modecraft Co., Inc.

In the Matter of THE MODECRAFT CO., INC. and UNITED FURNI FURE WORKERS OF AMERICA, AFFILIATED WITH THE C. I. O. Case No. C-1675.-Decided October 3, 1940 Jurisdiction : beauty parlor equipment manufacturing industry. Settlement : stipulation providing for compliance with the Act. Remedial Orders : entered on stipulation. Mr. Jerome I. Maeht, for the Board. Fields, Katz and Fiedelbaum, by Mr. Julius Fiedelbaum, of New York City, for the respondent. Mr. Zoel Buriclcson, of New York City, for the United. Mr. Robert F. Koretz, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon charges duly filed by United Furniture Workers of America, affiliated with the C. I. 0., herein called the United, the National Labor Relations Board, herein called the Board, by the Regional Di- rector for the Fourth Region (Philadelphia, Pennsylvania), issued its complaint dated September 6, 1940, against The Modecraft Co., Inc., Muncy, Pennsylvania, 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. A copy of the complaint, accom- panied by notice of hearing, was duly served upon the respondent, upon the United, and upon Independent Association of Modecraft Employees, also known as and herein called the Committee, a labor organization alleged in the complaint to be dominated by the respondent. With respect to the unfair labor practices, the complaint alleged in substance: (1) that the respondent in or about July 1937 caused to be organized and interfered wtih the formation of the labor or- ganization herein called the Committee, in that the respondent, 27 N. L. R. B., No. 118. 634 I THE MODEC 'RAFT C'O.1 1NC. 635 through its officers, representatives, supervisory employees, and agents, (a) since in or about July 1937 , initiated the idea of forming the Com- mittee at, its plant ; (b) cautioned, advised, and urged its employees not to join the United; (c) during the month of July 1937 circulated at its plant among its employees, during working hours and on com- pany time and at respondent 's expense, an agreement which provided, inter alia, that "all employees represent and agree that they shall not, under any circumstances become members of any other labor organization or union during the term of this agreement ;" and that in the event that any employee becomes a member ' of any other labor organization, the respondent shall have the right to dispense with his services forthwith ; (d) entered into the aforesaid agreement dated July 12, 1937,'with its individual employees and the Committee; (e) on or about December 29, 1938, entered into a further agreement with the Committee which provided , inter a7ia, that "all employees repre- sent and agree that they shall not under any circumstances become members of any other labor union or organization during the term of this agreement," that in the event that any employee becomes a mem- ber of any other labor organization the respondent shall have the right to dispense with his services forthwith ; (f) on or about December 30, 1939, entered into an agreement with the Committee which provided, inter alia , for a "closed shop" and that "all employees represent and agree that they shall not under any circumstances become mem- bers of any other labor union or organization during the term of this agreement," and that in the event that any employee becomes a mem- ber of any other labor organization the respondent shall have the right to dispense with his services forthwith; (g) in various and sundry other ways well known to the respondent dominated and interfered with the formation of the Committee; and (2) by the foregoing acts and other acts the respondent has interfered with, restrained, and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act. Pursuant to notice, a hearing was held in Philadelphia, Pennsyl- vania, on September 19, 1940, before Henry J. Kent, the Trial Ex- aminer duly designated by the Board. The Board was represented by counsel and participated in the hearing . The respondent, the United, and the Committee did not enter an appearance . At the out- set of the hearing the Trial Examiner received in evidence a stipula-' tion, dated September 17, 1940, in settlement of issues in the case, subject to the approval of the Board , entered into by the respondent] the United, and counsel for the Board. Thereupon the Trial Exam- iner adjourned the hearing sine die pending consideration of the stipu- lation by the Board. 636 DECISIONS OP--NATIONAL LABOR -RELATIONS BOARD The stipulation,provides as follows : STIPULATION It is hereby stipulated by and between The Modecraft Co:, Inc:, respondent, hereinafter referred to as the respondent; United Furniture Workers of America, affiliated with the C. I. 0., a party, hereinafter referred to as the Union; and Jerome I. Macht, attor- ney for the National Labor Relations Board, that: I. Upon a charge duly filed by the Union, the National Labor Relations Board, by the Regional Director for the Fourth Region, acting pursuant to authority granted in Section 10 (b) of the National Labor Relations Act (49 Stat. 449) and its Rules and Regulations, Series 2, as amended, Article IV, Section 1, issued its complaint on the 6th day of September, 1940, against The Mode- craft Co.; Inc., respondent herein. II. Respondent is and has been since in or about March 1933 a corporation organized and existing by virtue of the laws of the State of New York, having its principal offices in the City of New York, State of New York, and a plant in the Town of Muncy, State of Pennsylvania, and is now and has continuously been engaged at its plant in the Town of Muncy, State of Pennsylvania, hereinafter referred to as the Muncy plant, in the manufacture, sale and distribution of furniture and fixtures for the beauty parlor industry. III. Respondent, in the course and conduct of its business at its Muncy plant uses, among other things, the following principal raw materials: lumber, upholstery -items, and hardware; and ac- quires 80-percent of these materials in States of the United States other than the State of Pennsylvania, and in the course and con- duct of its business causes and has continuously caused approxi- mately 80 percent of its raw materials to be transported in inter- state commerce from and through States of the United States other than the State of Pennsylvania, to its Muncy plant, in the State of Pennsylvania, and there these raw materials are manu- factured by the respondent into the products enumerated in paragraph II, above. IV. Respondent manufactures the products set forth above in paragraph II at the Muncy plant, and causes and has continuously caused approximately 75 percent of these products produced by it to be sold and transported in interstate commerce from its Muncy plant to, into and through States of the United States other than the State of Pennsylvania. The total amount of products manu- factured, sold and distributed by the respondent at its Muncy plant for=the fiscal year 1939 -was, approximately.$.180,000.00. THE MODIECRAFT CO., iNC. 637 V. Respondent is engaged 'in interstate commerce within the meaning of the National Labor Relations Act, and the decisions of the United States Supreme Court thereunder. VI. Respondent, in the course and conduct of its business at it's Muncy plant, as above set forth, employs approximately 60 employees. The payroll for the last fiscal year amounted to approximately $59,000.00. VII. This Stipulation, together with the Charge, Complaint, Notice of Hearing, and Rules and Regulations, Series 2, as amended, of .the National Labor Relations Board, shall consti- tute the entire record herein and may be admitted in evidence by filing them with the Trial Examiner of the National Labor Rela- tions Board designated by said board to conduct a hearing .herein. VIII. All the parties hereto waive their right to. a hearing, and to the making of findings of fact and conclusions of law by the National Labor Relations Board, pursuant to the provisions of the National Labor Relations Act, and to any other or further .procedure before said Board, thereby dispensing with' the neces- sity for the hearing provided for in the said Complaint and Notice of Hearing. IX. Upon the record herein and upon this Stipulation, if approved by the National Labor'Relations Board,°an order may be entered by the Board providing as follows : ° Respondent, The Modecraft Co., Inc., its officers, agents, suc cessors and assigns shall: 1. Cease and desist from : (a) In any manner interfering with, restraining or coercing its employees in the exercise of their rights 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 or protection, as guaranteed in Section 7 of the National Labor Relations Act; (b) Discouraging membership in United Furniture Workers of America, affiliated with the C. I. 0., or any other labor or- ganization of its employees, or encouraging membership in the labor organization known as the Independent Association of Modecraft Employees, also known as the Committee, or any other labor organization of its employees; by discriminating against employees in regard to hire or tenure of employment or any condition of employment or in 'any other manner; (c) In any manner' dominating or interfering-with 'th'e,admin- istration of the Independent Association of Modecraft Employees, 638 DECISIONS OF NATIONAL LABOR RELATIONS BOARD also known as the Committee , and with the formation or -admin- istration of any other labor organization of its employees, or from contributing other aid or support to said organization; from recognizing or dealing in any manner with the Independent Association of Modecraft Employees, also known as the Com- mittee, or any successor thereto, or any group that purports to represent said organization ; or from . forming or maintaining any groups or designating any individuals to act as the repre- sentatives of the employees for the purposes of collective bar- gaining respecting any of the terms or conditions of employment; (d) Giving effect to its contracts with the Independent Asso- ciation of Modecraft Employees, also known as the Committee; 2. Take the following 'affirmative action : (a) Withdraw all recognition from the Independent Associa- tion of Modecraft Employees , also known as the Committee, as the representative of its employees , or any of them, for the pur- pose of dealing with respondent concerning grievances , labor dis- putes, wages, rates of pay, hours of employment, or other con- ditions of employment ; and so disestablish said Independent Association of Modecraft Employees , also known as the Com- mittee, as the representative of its employees; (b) Inform each and every one of its employees that the con- tract entered into on or about December 30 , 1939, and all other agreements with the Independent Association of Modecraft-Em- ployees, also known as the Committee , are null and void, and that the respondent will discontinue said agreements and will desist in any manner from giving effect to said agreements; (c) Inform in writing the officers of the Independent Asso- ciation of Modecraft Employees , also known as the Committee, that respondent will not in any manner deal with or recognize the Independent Association of Modecraft Employees , also known as the Committee; (d) Post immediately in conspicuous places at its Muncy'plant and maintain for a period of at least sixty (60) consecutive days from the date of posting , notice to its employees stating: (1) that the respondent will not engage in the conduct from which it is ordered to cease and desist in paragraph 1 (a), (b), (c) and (d) -of this order ; and (2 ) that the respondent will take the affirmative action set forth in paragraph 2 (a), (b) and (c) of this order; (e) Notify the Regional Director for the Fourth Region within ten (10) days from the date of this order what steps the respond- ent will take to comply with this order. THE MODECRAFT CO., INC. 639 X. Respondent, The Modecraft Co., Inc., hereby consents to the entry by the appropriate United States Circuit Court of Appeals, upon, application by the National Labor Relations Board, of a consent decree enforcing the order of the Board in the form here- inabove set forth, and waives its right to contest the entry of such decree, expressly waiving its right to receive notice of the filing by the National Labor Relations Board of an application for the entry of such a decree. XI. It is stipulated and agreed. that the notice, as provided in paragraph IX, 2 (d) shall be posted by respondent immediately upon approval of this stipulation by the Board. XII. It is stipulated and agreed that the respondent will comply with the provisions set forth above in paragraphs IX, 1 and 2, im- mediately upon approval of this stipulation by the Board. XIII. It is further stipulated and agreed that this stipulation is subject to the approval of the National Labor Relations Board. XIV. This stipulation contains the entire agreement of the parties, and there is no verbal agreement of any kind which varies, alters, or adds to this'stipulation. On September 24, 1940, the Board issued its order approving the above stipulation and making -it a part of the record in the case, and directing that the proceeding be transferred to and continued before 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 upon the entire record in the case, the Board makes the following:' FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The-Modecraft Co., Inc., is-a New York corporation with its prin- cipal "office in New York City, and a plant in Muncy, Pennsylvania, hereinafter called the Muncy plant, where it is engaged in the manu- facture, sale, and distribution of furniture and fixtures for the beauty parlor industry. The respondent causes approximately 75 percent of such products to be transported from the Muncy plant to, into, and through States of the United States other than the State of Penn- sylvania. In the course of manufacturing its products at the Muncy plant, the respondent uses raw materials consisting'principally of lum- ber, upholstery items, and hardware. Approximately 80 percent of such raw materials are acquired in States of the United States other than the State of Pennsylvania, and transported from and through such States to the Muncy plant. The respondent's gross sales of prod- I 640 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ucts for the fiscal year 1939 amounted to approximately $180,000. The ,respondent employs about _ 60 persons at the Muncy plant ; its total pay roll for the fiscal year 1939 amounted to approximately $59,000. The respondent admits that it is engaged in commerce within the meaning of the Act. We find that the above-described operations of the respondent, The Modecraft Co., Inc., constitute a continuous flow of trade , traffic, and commerce among the several States of the United States. II. THE ORGANIZATIONS INVOLVED United Furniture Workers of America , affiliated with Congress of Industrial Organizations , and Independent Association of Modecraft Employees , also known as the Committee, are labor organizations within the meaning of Section 2 (5) of the Act. ORDER Upon the basis of the above findings of fact, stipulation, and upon the entire record in the case, and pursuant to Section 10 (c) of the National Labor Relations Act, the National Labor Relations Board hereby orders that the respondent, The Modecraft Co., Inc., its officers, agents, successors and assigns shall : 1. Cease and desist from : (a) In any manner interfering with, restraining, or coercing its employees in the exercise of their rights 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 or protection , as guaranteed in Section 7 of the National Labor Relations Act; (b) Discouraging membership in United Furniture Workers of America, affiliated with the C. I. 0., or any other labor organization of its employees , or encouraging membership in the labor organization known as the Independent Association of Modecraft Employees, also known as the Committee, or any other labor organization of its em- ployees, by discriminating against employees in regard to hire or tenure of employment or any condition of employment or in any other manner; (c) In any manner dominating or interfering with the adminis- tration of the Independent Association of Modecraft employees, also known as the Committee , and with the formation or administration of any other labor organization of its employees, or from contributing other aid or support to said organization;-from recognizing or dealing in any manner with the Independent Association of Modecraft Em- THE MODECRAFT CO., INC. 641 ployees, also known as the Committee, or any successor thereto, or any group that purports to represent said organization; or from forming or maintaining any groups or designating any individuals to act as the representatives of the employees for the purposes of collective bargain- ing respecting any of the terms or conditions of employment; (d) Giving effect to its contracts with the Independent Association of Modecraft Employees, also known as the Committee. 2. Take the following affirmative action to effectuate the policies of the Act : (a) Withdraw all recognition from. the Independents Association of Modecraft Employees, also known as the Committee, as the represen- tative of its employees, or any of them, for the purpose of dealing with respondent concerning grievances, labor disputes, wages, rates of pay, hours of employment, or other conditions of employment, and so disestablish said Independent Association of Modecraft Employees, also known as the Committee, as the representative of its employees; (b) Inform each and every one of its employees that the contract entered into on or about -December 30, 1939, and all other agreements with the Independent Association of Modecraft Employees, also known as the Committee, are null and void, and that the respondent will dis- continue said agreements and will desist in any .manner from giving effect to said agreements; (c) Inform in writing the officers of the Independent Association of Modecraft Employees, also known as the Committee, that respond- ent will not in any manner deal with or recognize the Independent Association of Modecraft Employees, also known as the Committee; (d) Post immediately in conspicuous places at its Muncy plant and maintain for a period of at least sixty (60) consecutive days from the dateof posting, notice to its employees stating: (1) that the re- spondent will not engage in' the conduct from which it is ordered- to cease and desist in paragraphs 1 (a), (b), (c), and (d) of this Order; and (2) that the respondent will take the affirmative action set forth in paragraphs 2 (a), (b), and (c) of this Order; (e) Notify the regional Director for the Fourth Region within ten (10) days from the date of this Order what steps the respondent will take to comply with this Order. 323428-42-vol 27-42