Life Insurance Co. of Virginia

In the Matter of LIFE INSURANCB COMPANY OF VIRGINIA and THE AMER- ICAN FEDERATION OF INDUSTRIAL AND ORDINARY INSURANCE AGENTS UNION No. 22264 In the Matter of THE LIFE INSURANCE COMPANY OF VIRGINIA, RICH- MOND, VA. and THE AMERICAN FEDERATION OF INDUSTRIAL AND ORDI- NARY•INSURANCE AGENTS UNION #'22271 In the Matter of THE LIFE INSURANCE COMPANY OF VIRGINIA- BRANCH OFFICE-ALEXANDRIAN VA. and THE INDUSTRIAL AND ORDINARY INSUR- ANCE AGENTS' UNION #22241 OF ALEXANDRIA, VA. In the Matter of TIIE LIFE INSURANCE COMPANY OF VIRGINIA-BRANCH OFFICE-NORFOLK, VA. and THE INDUSTRIAL AND ORDINARY INSUR- ANCE AGENTS' UNION #21753 OF NORFOLK, VA. In the Matter of THE LIFE INSURANCE COMPANY OF VIRGINIA- BRANCH OFFICE-NEWPORT NEWS, VA. and THE INDUSTRIAL AND ORDINARY INSURANCE AGENTS' UNION #21771 OF NEWPORT NEWS, VA. Cases Nos . R-2223 to B-22,27.-Decided January 28, 1941 Jurisdiction : life insurance industry. Investigation and' Certification of Representatives : existence of questions: re- fusal to accord recognition to union ; elections necessary. Units Appropriate for Collective Bargaining : debit collectors in each of five dis- trict offices of the Company, excluding district managers, assistant, district managers, office and clerical employees, and inspectors; no controversy as to. Definitions : insurance debit collectors held employees within the meaning of the Act. Mr. Sidney J. Hilton and Mr. William R. Shands, of Richmond, Va., for the Company. Mr. Frank Weikel and Mr. George L. Russ, of Washington, D. C., for the Unions. Mr. Eugene M. Purver, of counsel to the Board. DECISION AND DIRECTION OF ELECTIONS STATEMENT OF THE CASE On September 25, 1940, The Industrial and Ordinary Insurance Agents' Union No. 22241 of Alexandria, Va., herein called the Alex- 29 N. L. R. B., No. 44. • • 246 THE LIFE INSURANCE COMPANY OF VIRGINIA 247 andria Union, The Industrial and Ordinary Insurance Agents' Union No. 21771 of Newport News, Va., herein called the Newport News Union, and The Industrial and Ordinary Insurance Agents' Union No. 21753 of Norfolk, Va., herein called the Norfolk Union, each filed with the Regional Director for the Fifth Region (Baltimore, Mary- pet[ aoaatuuzoo .utloa l; uotlsonb r. lain tut^ally uollzlad v (ptrel arisen concerning the representation of employees in the Alexandria, Virginia; Newport News, Virginia; and Norfolk, Virginia, district offices, respectively, of The Life Insurance Company of Virginia, herein called the Company, and requesting an investigation and cer- tification of representatives pursuant to Section 9 (c) of the National "Labor Relations Act, 49 Stat. 449, herein called the Act. On October 18 the Norfolk Union filed an amended petition. On October 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 in each case and authorized the Regional Director to conduct it and to provide for an appropriate hearing upon due notice. On October 4, 1940, The American Federation of Industrial and Ordinary Insurance Agents Union No. 22264, herein called the Detroit Union, filed with the Regional Director for the Seventh Region (De- troit, Michigan) a petition alleging that a, question affecting commerce had arisen concerning the representation of employees in the Detroit, Michigan, district offices of the Company located at 1639 National Bank Building, 9014 Chalmers, 16525 Woodward, and 13538 Michigan, and requesting an investigation and, certification of representatives pursuant to Section 9 (c) of the Act. On October 9 The American Federation of Industrial and Ordinary Insurance Agents Union #22274, herein called the Cincinnati Union, filed with the Regional Director for the Ninth Region (Cincinnati, Ohio) a similar petition concerning employees in the Cincinnati, Ohio, district offices of the Company located in the Temple Bar Building and the Ingalls Building. On November 6, 1940, the Board, acting pursuant to Article III, section 10 (c) (2), of National Labor Relations Board Rules and Regulations-Series 2, as amended, ordered that the Norfolk, Alex- andria, and Newport News cases be consolidated. On November 20, 1940, the Board, acting pursuant to Article III, Section 10 (c) (3), of National Labor Relations Board Rules and Regulations-Series 2, as amended, ordered that the Cincinnati case be transferred from the Ninth Region to the Fifth Region, ordered, pursuant to Section 9 (c) of the Act and Article III, Section 3, of said Rules and'Regulations, that the Regional Director for the Fifth Region conduct an investigation in said case and provide for an ap- 248 DECISIONS OF NATIONAL LABOR RELATIONS BOARD i propriate hearing upon due notice, and further ordered, pursuant to Article III, Section 10 (c) (2), of said Rules and Regulations, that the - Cincinnati case be consolidated with the Norfolk, Alexandria, and Newport News cases. On November 26, 1940, the Board, acting pursuant to Article III, Section 10 (c) (3), of National Labor Re- lations Board Rules and Regulations-Series 2, as amended, ordered that the Detroit case be transferred from the Seventh Region to the Fifth Region, ordered, pursuant to Section 9 (c) of the Act and Article III, Section 3, of said Rules and Regulations, that the Re- gional Director for the Fifth Region conduct an investigation in said case and provide for an appropriate hearing upon due notice and further ordered, pursuant to Article III, Section 10 (c) (2), of said' Rules and Regulations, that the Detroit case be consolidated with the Norfolk, Alexandria, Newport News, and Cincinnati cases. On December 10, 1940, the Regional Director for the Fifth Region issued a notice of hearing, copies of which were duly served upon the Company, the American Federation of Labor, and the Industrial and Ordinary Insurance Agents' Council,' herein called the Council. Pursuant to notice, a hearing was held on December 19, 1940, at Rich- mond, Virginia, before, Charles Y. Latimer, the Trial Examiner duly designated by the Board. The Company was represented by counsel; the Unions, by their representatives; all participated in the hearing. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evidence bearing upon the issues was afforded all parties. At the commencement of the hearing counsel for the Com- pany objected to the consolidation by the Board of the five cases. The Trial Examiner overruled the objection. At the hearing coun- sel for the Company moved to dismiss the petitions on jurisdictional and other grounds. The Trial Examiner denied the motion., During the course of the hearing the Trial Examiner made several rulings on other motions and on objections 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. On January 22, 1941, the Company filed with the Board a Motion to File Brief and Present Oral Argument herein. The motion is hereby denied.2 Upon the entire record in the case, the Board makes the following : ' The Council was created by the American Federation of Labor, with which the five unions here involved are affiliated , and acts as a coordinator and bargaining representative of the Unions. 2 The hearing herein was held on December 19, 1940. Article III, Section 8, of National Labor Relations Board Rules and Regulations-Series 2 , as amended , provides that any party desiring permission to argue orally before the Board or to file a brief with the Board must make request therefor in writing to the Board within 5 days after the close of the hearing. THE LIFE INSURANCE COMPANY OF VIRGINIA 249 FINDINGS OF FACTS 1. THE BUSINESS OF THE COMPANY The Life Insurance Company of Virginia is a Virginia corporation having its principal office, referred to by the Company'as, and herein called, the home office, in Richmond, Virginia. It is engaged in insuring the lives of its policyholders and in investing its funds. The Company is licensed to'do business in 16 States and the Dis- trict of Columbia and operates district offices in 12 States and the District of Columbia. The Company's business is managed and directed by its directors and officers located at the home office. Thus the terms and conditions of the various policies of insurance offered by the Company are de- terriiined and all investments of the Company's funds are made by such officials at` the home office. All applications for insurance and claims, applications for loans, and other matters pertaining to insur- ance in force are acted upon `at the home office. All policies of in- surance and all checks covering disbursements by the Company are executed at the home office. On December 31, 1939, the Company was, in terms of amount of insurance in force, approximately the 28th largest and, in terms of assets,' approximately the 31st largest of the life insurance companies in the United States. On December 31, 1939, the Company had in force and effect in- surance policies amounting to $528,053,461. In its 4 Detroit, Michi- gan, district offices here involved, the Company had in force and effect' at the end of October 1940 approximately 60,000 policies for $26,500,000 of insurance; in its Alexandria, Virginia, district office, approximately 10,000 policies for $4,200,000 of insurance; in its New- port News, Virginia, district office, approximately 13,000 policies for $5,800,000 of insurance; in its Norfolk, Virginia, district office, approximately 30,000 policies for $12,000,000 of insurance; and in its Cincinnati, Ohio, district office, approximately 26,000 policies for $11,000,000 of insurance. The Company's assets as of December 31, 1939, were as follows: Cash--------------------------------------------- $3,314,516.57 United States Government bonds and bonds guaran- - teed by the- United States Government---------- 9,774,885 54 Bonds of United States political subdivisions------ 16, 330, 454. 36 Railroad and railroad equipment bonds------------ 5, 707,001. 41 Public Utility bonds------------------------------ 10, 821, 863. 87 Industrial bonds--------------------------------- 2,700,797.50 Stocks-------------------------------------------- 3,509,674.96 Notes secured by mortgage loans on real estate------- 31, 555, 037. 91 Real estate--------------------------------------- 8,747, 681. 90 Installment contracts for sale of real estate---------- 938, 085. 73 Premium notes and loans to policyholders-------- 8,105,890.65 250 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The Company's cash was deposited in 127 banks located in 18 States and the District of Columbia . The public utility bonds were pur- chased from companies located in six States and the District of Co- lumbia. The industrial bonds were purchased from companies located in six States and the District of Columbia. The Company holds some common stock. The stockholdings of the Company, however, consist mainly of preferred stocks of railroads , public utilities , and industrial and miscellaneous companies . All securities purchased by the Com- pany are delivered to it at its home office and are kept in Richmond, Virginia. Loans are made on notes secured by mortgages on residences , apart- ment buildings, business property, and farms. The Company has loans outstanding secured by real estate located in 20 States and the District of Columbia . Real estate is held in 17 States. The Com- pany has 62 loan correspondents in 19 States and the District of Columbia, through whom loans are purchased or mortgage investments made. ° From the foregoing it is clear that in addition to insuring the lives of its many policyholders , the Company engages in a diversified and widespread investment business. In 1939 the Company purchased furniture , fixtures , and mechanical equipment of a value of $21,265.48, of which 26 per cent was purchased in the State of Virginia and used by the Company in other States and the District of Columbia. In 1939 the Company purchased paper and other stationery supplies in the State of Virginia in the amount of $61,089.92 . Of such'paper and supplies , the Company used only about 63 per cent at its home office . In 1939 the home office purchased $6,700 worth of paper which the Company had printed into various forms for use in its business . Ninety-four per cent of such printing was done in the State of Virginia and the printed matter was then sent to the Company's various district offices by express and mail , approxi- mately 11 ,750 pounds of such printed matter having been sent to district offices outside the State of Virginia!. In 1938 the Company spent $39,976.55 for postage, telephone, tele- gram, and express service; in •1939, $42,377 .37; and in the first 9 months of 1940, $31,181.04. In 1939 the Company spent $19,906.76, for traveling expenses of its supervisors ; in the first ten months of 1940,'$17,531.37. We find that the operations of the Company have a close , intimate, and substantial relation to trade, traffic , commerce, and transportation among the several States. II. THE ORGANIZATIONS INVOLVED The American Federation of Industrial and Ordinary Insurance Agents Union No, 22264, The American Federation of Industrial and THE LIFE INSURANCE COMPANY OF VIRGINIA 251' Ordinary Insurance Agents Uhion #22274, The Industrial and Ordi- nary Insurance Agents' Union No. 22241 of Alexandria, Va., The Industrial and Ordinary Insurance Agents' Union No. 21753 of Nor- folk, Va., and The Industrial and Ordinary Insurance Agents' Union No. 21771 of Newport News, Va., herein collectively called the Unions, are labor organizations, affiliated with Industrial and Ordinary Insur- ance Agents' Council and with the American Federation of Labor, ad- mitting to membership industrial insurance agents or debit collectors employed by the Company. III. THE QUESTIONS CONCERNING REPRESENTATION Beginning in March 1940 the Council sought to negotiate with the Company concerning the working conditions, hours, and rates of pay of the Company's agents in various cities. The Company, however, repeatedly questioned the Act's applicability to it and the Council's representation of a majority of the agents in question. On September 6, 1940, the Company advised the Council that it desired proof of majority representation to be made by means of an election conducted by the Board. At the hearing reports prepared by the Regional Directors for the Fifth and Seventh Regions were introduced in evidence showing that the Unions respectively represent substantial numbers of employees in the respective units found below to be appropriate for the purposes of collective bargaining.3 3 The statements of the Regional Director for the Fifth Region concerning ' Claims of Authorization for the Purpose of Representation show that 1 The Alexandria Union submitted to him nine combined Council membership applica- tions and bargaining authorizations , all dated December 15, 1939, .and all bearing appar- ently genuine, original signatures of persons whose names appear on the Company's pay roll as of September 30, 1940. From the record it appears that there are approximately 12 employees in the unit found below to be appropriate for the purposes of collective bargaining for which the Alexandria Union seeks certification as exclusive bargaining representative 2. The Norfolk Union submitted to him 22 combined Council membership applications and bargaining authorizations , dated as follows : 3 on September 22, 1938 ; 2 on November 21, 1938 ; 3 on January 13, 1939 ; and 14 in 1940 : and all bearing apparently genuine, original signatures of persons whose names appear on the Company 's pay roll as of Septem- ber 30, 1940. From the record it appears that there are approximately 25 employees in the unit found below to be appropriate for the purposes of collective bargaining for which the Norfolk Union seeks certification as exclusive bargaining representative. 3 The Newport News Union submitted to him 12 combined Council membership applica- tions and bargaining authorizations , all dated in 1940 , and all bearing apparently genuine, original signatures of persons whose names appear on the Company's pay roll as of Septem- ber 30, 1940. From the record it appears that there are approximately 14 employees in the unit found below to be appropriate for the purposes of collective bargaining , for which the Newport News Union seeks ' certification as exclusive bargaining representative 4. The Cincinnati Union submitted to him 27 combined Council membership applications and bargaining authorizations , all dated in 1940, and all bearing apparently genuine , origi- nal signatures Of the 27 signatures, 23 are of persons whose names appear on a list of employees furnished by the Company on November 7, 1940. From the record it appears that these are approximately 48 employees in the unit found below to be appropriate for the purposes of collective bargaining for which the Cincinnati Union seeks certification as exclusive bargaining representative The statement of the Regional Director for the Seventh Region concerning claims of authorization for the purpose of representation shows that the Detroit Union submitted to ,252 DECISIONS OF NATIONAL cLABOR RELATIONS BOARD We find that questions have arisen concerning the representation of employees of the Company. IV. THE EFFECT OF THE QUESTIONS CONCERNING REPRESENTATION UPON I - COMMERCE We find that the questions concerning representation which have arisen, occurring in connection with the operations, of the Company described in Section I above, have a close, intimate, and substantial relation to trade, traffic, commerce, and transportation among the several States, and tend to lead to labor disputes burdening and ob- structing-commerce and the free flow of commerce. V. THE APPROPRIATE UNIT In their petitions, the Alexandria, Norfolk, and Newport News Unions seek units consisting of the Company's debit collectors at its district offices in Alexandria, Norfolk, and Newport News, Virginia, respectively; the Detroit Union seeks a unit consisting of the Com- pany's debit collectors in Detroit, Michigan, at 1639 National Bank Building, 9014 Chalmers, 16525 Woodward, and 13538 Michigan, excluding all office employees, assistant managers, inspectors, and' managers; and the Cincinnati Union seeks a unit consisting of the Company's debit collectors employed in its district offices in the Tem- ple Bar Building and Ingalls Building, Cincinnati, Ohio. At the hearing it appeared that all the Unions desire the exclusion from the unit of district managers, assistant district- managers, and office and clerical employees-and that the Unions also desire uniformity of composition of the respective units. Under these circumstances, it appears that the Unions also desire the exclusion of inspectors from the units, as specifically requested by the Detroit Union. Except for its claim that the Act is not applicable to the debit col- lectors in question, the Company does not object to the units desired by the Unions. Under the supervision of its managers and assistant managers, the Company's debit collectors collect weekly premiums within an assigned territory, make regular deposits in the district offices of such collections, solicit and, write life insurance, and service the policies so written. They devote their full time to the Com- pany's business and are paid on a fixed salary plus commission basis. We find that the debit collectors are employees within the meaning of Section 2 (3) of the Act. him 53 combined Council membership applications and bargaining authorizations, all dated in 1940, and all bearing apparently genuine, original signatures . Of the 53 signatures, 39 are of persons whose names appear on a list of employees on the Company 's pay roll of November 4, 1940. From the record it appears that there are approximately 100 em- ployees in the unit found below to be appropriate for the purposes of collective bargaining for which ' the Detroit Union seeks certification as exclusive bargaining representative. THE LIFE INSURANCE COMPANY OF VIRGINIA 253: We find that the debit collectors employed by the Company in its district offices in the following cities : (1) Alexandria, Virginia. (2) Norfolk, Virginia. (3) Newport News, Virginia. (4) Detroit, Michigan, at 1639 National Bank Building, 9014 Chalmers; 16525 Woodward, 'and 13538 'Michigan. (5) Cincinnati, Ohio, at the Temple Bar Building and the In- galls Building. excluding district managers, assistant district managers, office and clerical employees, and inspectors, constitute five separate units ap- propriate for the purposes of collective bargaining and that said units 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 We find that the questions which have arisen concerning the repre- sentation of employees of the Company can best be resolved by elec- tions by secret ballot. We shall direct that those eligible to vote in the elections shall be the employees in the respective appropriate units who were employed by the Company during the respective pay- roll periods immediately preceding the date of our Direction of Elec- tions, including employees who did not work during the respective pay-roll periods because they were ill or on vacation and those who were then or have since been temporarily laid off, but excluding' those who have since quit or been discharged for cause. On 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. Questions affecting commerce have arisen concerning the repre- sentation of employees of The Life Insurance Company of Virginia, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the Act. 2. The Company's debit collectors are employees, Within the mean- ing of Section 2 (3) of the Act. 3. The debit collectors employed by the, Company in its district offices in the following cities : (1) Alexandria, Virginia. '(2) Norfolk, Virginia. (3) Newport Nees, Virginia. 254 DECISIONS OF NATIONAL. LABOR RELATIONS BOARD (4) Detroit, Michigan, at 1639 National Bank Building, 9014 Chalmers, 16525 Woodward, and 13538 Michigan. (5) Cincinnati, Ohio, ' at the Temple Bar Building and the Ingalls Building. excluding district managers, assistant district managers, office and clerical employees, and inspectors, constitute five separate units ap- propriate for the purposes of collective bargaining, within the mean- ing of Section 9 (b) of the Act. DIRECTION OF ELECTIONS 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 amended, it is hereby DIRECTED that, as part of the investigations authorized by the Board to ascertain representatives for the pu=rposes of collective bar- gaining with The Life Insurance Company of Virginia, separate elections by secret ballot shall be conducted as early as possible, but not later than thirty (30) days from the date of this Direction of Elections, as follows : 1. Under the direction and supervision of the Regional Director for the Fifth 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 (a) The debit collectors employed by The Life Insurance Company of Virginia in its district office in Alexandria, Virginia, who were employed by the Company during the pay-roll period immediately preceding the date of this Direction, including employees who did not work during said pay-roll period because they were ill or on vacation and those who were then or have since been temporarily laid off, but excluding district managers, assistant district managers, office and clerical employees, inspectors, and those who have since quit or been discharged for cause, to determine whether or not they desire to be represented by The Industrial and Ordinary Insurance Agents' Union No. 22241 of Alexandria, Va., for the purposes of collective bargaining; • (b) The debit collectors employed by The Life Insurance Com- pany of Virginia in its district office in Norfolk, Virginia, who were employed by the Company during the pay-roll period immediately preceding the date of this Direction, including employees who did not work during said pay-roll period because they were ill or on vacation and those who were then or have since been temporarily laid THE LIFE INSURANCE COMPANY OF VIRGINIA 255 off, but excluding district managers, assistant district. managers, office and clerical employees , inspectors, and those who have since quit or been discharged ,for cause , to determine whether or not they desire to be represented by The Industrial and Ordinary Insurance Agents' Union No. 21753 of Norfolk , Va., for the purposes of collective bargaining; (c) The debit collectors employed by The Life Insurance Company of Virginia in its district office in Newport News, Virginia , who were employed by the Company during the pay-roll period immediately preceding the date of this Direction , including employees who did not work during said pay-roll period because they were ill or on vacation and those who were then or have since been temporarily laid off, but excluding district managers, assistant district managers, office and clerical employees , inspectors, and those who have since quit or been discharged for cause, to determine whether or not they desire to be represented by The Industrial and Ordinary Insurance Agents' Union No. 21771 of Newport' News, Va. 2. Under the direction and supervision of the Regional Director for the Seventh 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 the debit collectors employed by The Life Insurance Company of Virginia in its district offices in Detroit, Michigan, at 1639 National Bank Building, 9014 Chal- mers, 16525 Woodward, and 13538 Michigan , who were employed by the Company during the pay-roll period immediately preceding the date of this Direction , including employees who did not work during said pay-roll period because they were ill or on vacation and those who were then or have since been temporarily laid off, but' excluding district managers, assistant district managers, office and clerical employees , inspectors , and those who have since quit or been discharged for cause , to determine whether or not they desire to be represented by The American Federation of Industrial and Ordinary Insurance Agents Union No. 22264 for the purposes .of collective bargaining. 3. Under the direction and supervision of the Regional Director for the Ninth 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 the debit collectors employed by The Life Insurance Company of Virginia in its district offices in Cincinnati , Ohio, at the Temple Bar Building and the Ingalls Building, who were employed by the Company during the pay-roll period immediately preceding the date of this Direction , including employees who did not work during said pay-roll period because they were ill or on vacation and those who were then or have since 256 DECISIONS OF NATIONAL LABOR RELATIONS BOARD been temporarily laid off, but excluding district managers, assistant district managers, office and clerical employees, inspectors, and those who have since quit or been discharged for cause, to determine whether or not they desire to be represented by The American Federation of Industrial and Ordinary Insurance Agents Union #22274 for the purposes of collective bargaining. CHAIRMAN HARRY A. MILLIS took no part in the consideration of the above Decision and Direction of Elections. SAME TITLE] AMENDMENT TO DIRECTION OF ELECTIONS February 13, 1941 On January 28, 1941, the National Labor Relations Board, herein called the Board, issued a Decision and Direction of Elections in the above-entitled proceedings,, the elections to be conducted-as early as possible, but not later than thirty (30) days from the date of the Direction, under the direction and supervision of the Regional Di- rectors for the Fifth Region (Baltimore, Maryland), Seventh Region (Detroit, Michigan), and Ninth Region (Cincinnati, Ohio), respec- tively. The Board, having been informed that a longer period within which to hold the elections is necessary, hereby amends the Direction of Elections issued on January 28, 1941, by striking therefrom the words "not later than thirty (30) days from the date of this Direc- tion of Elections" and substituting therefor the words "not later than sixty (60) days from the date of this Direction of Elections." 29 N. L. R. B, No. 44a.