Eaton Manufacturing Co.

In the Matter of EATON MANUFACTURING COMPANY and INTERNA- TIONAL UNION, UNITED AUTOMOBILE WORKERS OF AMERICA, AFFILI- ATED'WITH THE CONGRESS OF INDUSTRIAL ORGANIZATIONS Case No. R-2238.-Decided January 16, 1941 Jurisdiction : automotive and aircraft parts manufacturing industry. Practice and Procedure : no question concerning representation found to exist in view of a valid existing contract between Company and intervening union. Mr. Oscar Grossman, for the Board. Mr. Maurice Sugar, of Detroit, Mich., by Mr. Ernest Goodman and Mr. Nedwvn L. Smokier, for the U. A. W.-C. I. O. Mr. Joseph H. Padway, of Washington, D. C., by Mr. Henry Kaiser, for the U. A. W.-A. F. of L. Mr. Richard Inglis, of Cleveland, Ohio, and Mr. Lloyd P. Crane, of Saginaw, Mich., for the Company. M. Edward Scheunemann, of counsel to the Board. DECISION .AND ORDER STATEMENT OF THE CASE On October 12; 1940, International Union, United Automobile Workers of America, affiliated with the C. I. 0., herein called the U. A. W.-C. I. 0., filed with the Regional Director for the Seventh Region (Detroit, Michigan) a petition alleging that a question affect- ing commerce had arisen concerning the representation of employees of Eaton Manufacturing Company, Wilcox-Rich Division, Saginaw Plant, Saginaw, Michigan, herein called the Company, and request- ing an investigation and certification of representatives pursuant to Section 9 '(c) of National Labor Relations Act, 49 Stat. 449, herein called the Act. On November 20, 1940, the National Labor Relations Board, herein called the Board, issued its Order Dismissing the Peti- tion. On December 17, 1940, the Board issued its Order Revoking Order Dismissing Petition, and, 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 in- 29 N L R. B, No 12. 53 54 DECISIONS OF NATIONAL LABOR RELATIONS BOARD vestigation and authorized the Regional Director to conduct it and to provide for an appropriate hearing upon due notice. On December 17, 1940, the Regional Director issued a notice of hearing, copies of which were duly served upon the Company, the U. A. W.-C. I. 0., and International Union, United Automobile Workers of America-A. F. of L., herein called the U. A. W.- A. F. of L. Pursuant to the notice a hearing was held on December 27 and 28, 1940, at Saginaw, Michigan, before William R. Ringer, the Trial Examiner duly designated by the Board. The Board, the Company, the U. A. W.-C. I. 0., and the U. .A. W.-A. F. of L., represented by counsel, participated in the hearing and were afforded full oppor- tunity to be heard, to examine and cross-examine witnesses and to introduce evidence bearing on the issues. During the course of the hearing the Trial Examiner made a number of rulings on motions and on objections to the admission of evidence. The Board has reviewed the rulings of the Trial Examiner and finds that no preju- dicial errors were committed. The rulings are hereby affirmed. On January 13, 1941, the U. A. W.-C. I. O. and the U. A. W.- A. F. of L. filed briefs which the Board has duly considered. On January 14, 1941, pursuant to notice served on all parties, these or- ganizations appeared by counsel in Washington, D. C., and presented oral argument before the Board. Upon the entire record in the case, the Board makes the following: FINDINGS OF FACT 1. THE BUSINESS OF THE COMPANY The Company, an Ohio corporation, with its principal office and place of business in Cleveland, Ohio, is engaged in the manufacture of automotive and aircraft parts in its plants located in the cities of Saginaw, Battle Creek, Marshall, Vassar, and Detroit, Michigan, and in Cleveland and Massillon, Ohio. During the period January 1, 1940 to December 1, 1940, the Com- pany purchased for use in its plant at Saginaw, Michigan,'the only plant involved in this proceeding, raw materials and other supplies valued at approximately $900,000, and it obtained approximately 60 per cent in value of such materials from States other than Michigan. During the same period it manufactured at the Saginaw plant goods valued at approximately $3,250,000 and it shipped approximately 29.8 per, cent in value of such goods to States other than Michigan. The Company admits that it is engaged in interstate commerce with- in the meaning of the Act. EATON MANUFACTTIRING COMPANY II. THE ORGANIZATIONS INVOLVED 55 International Union, United Automobile Workers of America, is a labor organization affiliated with the Congress of Industrial Or- ganizations. It admits to membership employees of the Company.' International Union, United Automobile Workers of America, is a labor organization affiliated with the American Federation of Labor. It admits to membership employees of the Company. III. THE ALLEGED QUESTION CONCERNING REPRESENTATION On or about May 23, 1937, the Company and the U. A. W.-C. I. O. entered into a master collective bargaining agreement covering eight ofthe Company's plants. The agreement provided, inter alia, that it should become effective in each plant of the Company only upon the execution of a supplementary contract between the Company and the Local of the U. A. W.-C. I. O. in each plant. Thereafter supple- mentary agreements were executed between the Company and each of the Locals. In November 1938, a similar master collective bargain- ing agreement was executed by the Company and the U. A. W.- C. I. 0., to remain in effect until May 15, 1940. On or about January 20, 1939, prior to the execution of a supple- mentary contract between the Company and Local 433 for the Sagi- naw plant, a division occurred within the U. A. W.-C. I. 0., and the U. A. W.-A. F. of L. was formed. Local 433 elected delegates to attend the convention of the U. A. W.-A. F. of L., thereafter paid per capita dues to it, and functioned as a Local of the U. A. W.- A; F. of L. Both the U. A. W.-C. I. 0., and the U. A. W.-A. F. of L., claimed ownership of the 1939-1940 master agreement with the Company. On February 2, 1939, pursuant to the master agreement, Local 433 and the Company entered into a supplementary agreement for the Sagi- naw plant coterminus with the master agreement. In July 1939 the parties added a provision to the supplementary agreement by, which the Company agreed to discipline any employee for violation of the master agreement or the supplementary agreement upon complaint of Local 433. The U. A. W.-C. I. O. and the U. A. W.-A. F. of L. stip ulated at the hearing and the Company has operated on the under- standing that the intent and effect of this provision was to require all employees to pay dues to Local 433. In April 1940, the Company entered into negotiations with the U. A. W.-A. F. of L. for a master agreeement covering the plants of the Company in which the U. A. W.-A. F. of L. represented a major- 56 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ity of the employees, and on May 2, 1940, entered into negotiations 'with representatives of the U. A. W.-C. I. O. for the plants in which the U. A. W.-C. I. O. represented a majority of the employees. The employees of the Saginaw plant were represented in the negotiations between the Company and the U. A. W.-A. F. of L., by officers of Local 433, but were not represented in the negotiations between the Company and the U. A. W.-C. I. O. The U. A. W.-C. I. O. contends, nevertheless, and the Company denies, that during the negotiations the U. A. W.-C. I. O. informed the Company that it claimed to rep- resent a majority of the employees in the Saginaw plant. Upon the entire record, we are not convinced that the U. A. W.-C. I. O. in- formed the Company at this time that it claimed to be majority rep- resentative in the Saginaw plant. On April 24, 1940, the U. A. W.- A. F. of L. and the Company executed a master collective bargaining agreement to become effective May 16, 1940, covering three plants of the Company including the Saginaw plant. On May 23, 1940, the U. A. W.-C. I. O. and the Company executed a master collective bar- gaining agreement, covering, four other plants of the Company. Both contracts provided, as in previous years, that they should be- come effective for each of the Company's plants covered by the re- spective contracts upon the execution of supplementary agreements for such plants. Both agreements contained a provision respecting possible changes of affiliation within the plants of the Company. The provision in the contract between the Company and the U. A. W, A. F. of L. is as follows : - I In the event a Local Union in any other of the company's plants than those covered by this agreement legally elect to form themselves into' a Local Union of the International Union, United Automobile Workers of America affiliated with the American Federation of Labor, and a satisfactory supplemental agreement is arrived at by and between them and their plant management, they will automatically become a party to this agreement, if, and when, said supplemental agreement is prop- erly signed by the plant management and the Local Union so established.' On May 10, 1940, the bargaining committee of Local 433, acting- pursuant to a resolution of Local 433 instructing them to renew the old supplementary agreement,2 and the Company "and Local 433 executed a supplementary agreement covering the Saginaw plant of the Company pursuant to the provisions of the master agreement, 11 1 The provision in the U. A. W.-C. I. O. master agreement is substantially similar except that it provides "in the event the employees of any company plant . . . 3 There is a conflict in testimony as to whether the resolution authorized the committee to renew the agreement for a full term or only for 90 days. EATON MANUFACTURING COMPANY 57, between the U. A. W.-A. F. of L. and the Company. The supple- mentary agreement contained the same terms as those in effect during the previous year and provided that it should become effective May 10, 1940, and continue in effect until May 15, 1942, the date upon which the master agreement between the Company and the U. A. W.- A. F. of L. also is to expire. Prior to and after the execution of this supplementary agreement, some of the members of Local 433 attempted to have Local 433 re- affiliate with the U. A. W.-C. I. O. They were not successful in obtaining a vote within the Local on the question of affiliation. In the latter part of August they informed Linwood Smith, the Regional Director of the U. A. W.-C. I. 0., that the officers of Local 433 would not allow such a vote, and he thereupon, on September 12, 1940, sent a letter to the Company requesting recognition of the U. A. W.- C. I. O. as exclusive bargaining agency for the employees of the Saginaw plant and informed the Company that the U. A. W.-C. I. O. represented a majority of such employees.3 On September 17, 1940, representatives of Local 433 for the first time notified the membership that the supplementary contract of May 10•had been signed, by post- ing a' notice on the bulletin board. On or, about September 23 the Company informed the. U. A. W.-C. I. O. that it could not grant such organization recognition in.view of its• contract with the U. A. W.-A. F. of L. and the supplementary agreement with Local 433. On and after September 30, 1940, some of the members of Local 433 applied for a charter from the U. A. W.-C. I. O. and repudiated their membership in Local 433, U. A. W.-A. F. of L, The U. A. W.-C. I. O. contends, in substance,, that the master agreement between the Company and the U. A. W.-A. F. of L. and the supplementary agreement signed on- May 10, 1940, do not con- stitute a bar to an investigation of representatives because (1) the supplementary agreement is invalid since it was not authorized or ratified by the membership in accordance with the requirement of the bylaws of the U. A. W.-A. F. of L.; (2) the supplementary agreement was executed by the Company after it had been advised that the U. A. W.-C. I. O. also claimed to represent a majority of the em- ployees in the Saginaw plant; and (3) the supplementary contract of May 10, 1940, does not provide for exclusive recognition of the, U. A. W.-A. F. of L. With respect to the first contention, it is clear that, at the time the supplementary agreement was executed, the bar- gaining committee, represented Local 433, which was in turn the un- disputed representative of a majority of the employees in an appro- priate unit. It is not within the province of the Board to inquire 8 Representatives of the U. A. w: C. I. O. had not previously requested recognition or certification because they had been attempting to convert the entire local as a group. 58 DECISIONS OF NATIONAL LABOR RELATIONS BOARD whether the bargaining committee observed the bylaws of Local 433. That is an internal union matter which is immaterial in a proceed- ing under Section 9 of the Act. With respect to the second conten- tion we have found above that the U. A. W.-C. I. O. had not advised the Company of its claim to represent a majority of the employees in the, Saginaw plant prior to the execution of the May 10,1940, supple- mentary agreement. With respect to the third contention, upon the entire record, it is clear that the parties construed the contracts so as to require all employees to pay dues to Local 433 and give Local 433 recognition as exclusive representative of the Saginaw employees. The U. A. W.-C. I. O. also contended at the hearing that an elec- tion should be directed because of the clauses in the master agree- ments, set out above, respecting changes in affiliation. Whatever their precise meaning may be, we are satisfied that these clauses do not contemplate that the Board should break in on the Saginaw con- tract merely because the U. A. W.-C. I. O. claims to have won over a majority of the employees. We conclude, therefore, that in view of the existing contracts between the Company and the U. A. W.-A. F. of L. no question now exists concerning the representation of the employees of the Company in its Saginaw plant.4 On the basis of the above findings of fact and upon the entire record in the case, the Board makes the following: CONCLUSION OF LAW No question concerning the representation of employees of Eaton Manufacturing Company, in a unit appropriate for purposes of col- lective bargaining has arisen, within the meaning of Section 9 (c) of the National Labor Relations Act. ORDER Upon the basis of the foregoing findings of fact and conclusion of law, the National Labor Relations Board hereby orders that the peti- tion for investigation and certification of representatives of em- ployees of the Eaton Manufacturing Company filed by International Union, United Automobile Workers of America, affiliated with the Congress of Industrial Organizations be and it hereby is dismissed. MR. EDWIN S. SMITH, dissenting: The agreement entered into between Local 433 and the Company covering the Saginaw plant in February 1939 was executed at a time when Local 433 was the undisputed majority representative of 4 Matter of The National Sugar Refining Co., etc. and Local 1476, etc., 10 N. L. R. B. 1410: EATON MANUFACTURING COMPANY 59 the employees at, Saginaw. This was almost 2 years ago. The fact that there is now a contract with Local 433, incorporating the same terms made while it still had a majority and running to May 1942, should not be a bar to a new election. The Regional Director's statement introduced in evidence shows that the U. A. W.-C. I. 0. has obtained approximately 517 -authori- zation cards from among the approximately 1130 employees in the appropriate unit. There is thus an ample showing that a question concerning representation exists. In view of the fact that more than a year has elapsed since Local 433 was first recognized as majority representative and in view of the substantial showing of a change of sentiment among the employees concerning their bargaining repre- sentative, I would sustain the petition of the U. A. W.-C. I. 0. and direct an election.5 6 See my dissenting opinion in the National Sugar case ibid.