The Life Insurance Co. of Virginia

1. In the Matter of THE LIFE INSURANCE COMPANY OF VIRGINIA, RICH- MOND, VA. and AMERICAN FEDERATION OF INDUSTRIAL AND ORDINARY INSURANCE AGENTS UNION No. 22164, RICHMOND, VA. In the Matter of THE LIFE INSURANCE COMPANY OF VIRGINIA, RICH- MOND, VA. and AMERICAN FEDERATION OF INDUSTRIAL AND ORDINARY INSURANCE AGENTS UNION No. 22265, COLUMBUS, GEORGIA Cases Nos. R-240 and R-0241-Decided May 9, 1941 Jurisdiction : life insurance industry. Investigation and Certification of Representatives : existence of questions: re- fusal to accord union recognition ; elections necessary. Units Appropriate for Collective Bargaining : separate units comprising debit collectors in each of two district offices, respectively, excluding district managers, assistant district managers, inspectors, and office and clerical employees ; no controversy as to. Mr. Sidney J. Hilton and Mr. William R. Shands, of Richi iolud, Va., for the Company. I11r. Frank Weikel and 'Mr. George L. Russ, of Washington; D. C., for the Unions. , Elizabeth W. Weston, of counsel to the Board. DECISION AND DIRECTION OF ELECTIONS STATEMENT OF THE CASE On February 4, 1941, American Federation of Industrial tnd Ordi- nary Insurance Agents Union No. 22164, Richmond, Virginia, herein called the Richmond Union, filed with the Regional Director for the Fifth Region (Baltimore, Maryland) a petition alleging that a ques- tion affecting commerce had arisen concerning the representation of employees in the Richmond, Virginia, district office of The Life In- surance Company of Virginia, herein called the Company, and re- questing 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 February 10, 1941, American Federation of Industrial and Ordinary Insurance Agents Union No. 22265, Columbus, Georgia, 31 N L R B., No. 111 674 THE LIFE INSURANCE COMPANY OF VIRGINIA 675' herein called the Columbus Union, filed with the Regional Director for the Tenth Region (Atlanta, Georgia) a similar petition concern- ing employees in the two district offices of the Company 'located in the Flowers Building in Columbus, Georgia. . On March 13, 1941, 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 investigations in both cases and authorized the Regional Directors for the Fifth and Tenth Regions, respectively, to conduct said investigations and to provide for,appropriate hearings upon due notice. On March 19, 1941, the Board, acting pursuant to Article III, Section 10 (c) (2) and (3), of said Rules and Regulations, ordered that the Columbus, Georgia, case be transferred from the Tenth Region to the Fifth Region, and further ordered that the cases be consolidated. ,On March 22, 1941, the Regional Director for the Fifth Region issued a notice of hearing, copies of which were duly served upon the Company and upon a representative of the Richmond and Co- lumbus Unions, herein collectively called the Unions. Pursuant to the notice a hearing was held on March 31, 1941, in Richmond, Vir- ginia, before Herbert O. Eby, 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 op- portunity to be heard, to examine and cross-examine, witnesses, and to introduce evidence bearing upon the issues was afforded all parties. At the hearing counsel for' the Company filed a motion to dismiss the petitions on jurisdictional grounds. The Trial Examiner made no-ruling on this motion but referred it to the Board for considera- tion. During the course of the hearing the Trial Examiner made rulings on several other motions and on objections to the admission of evidence. The Board has reviewed the rulings of the'Trial' Ex- aminer and finds that no prejudicial errors were committed. Tiw rulings are hereby affirmed. On April 12, 1941, pursuant to leave granted by the Board to all parties, the Company filed a brief in support of its motion to dismiss the petitions, which the Board has considered. Said motion is hereby denied. , Upon the entire record in the case, the Board makes the following : FINDINGS OF FACT 1. THE BUSINESS OF THE COMPANY The Life Insurance Company of Virginia is a Virginia corpora- tion having its principal office, herein called the home office, in Rich- mond, Virginia. It is engaged in the writing of ordinary and 441843-42-vol 31-44 676 DECISIONS OF NATIONAL LABOR RELATIONS BOARD weekly premium insurance on the lives of its, policyholders and in investing its funds. The Company is licensed to do business in 16 States and the District 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 condi- tions of the various policies of insurance offered by the Company are determined 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 insurance,in force are acted upon at the home office. All policies of insurance and all checks covering disbursements by the Company are executed at the home office. On December 31, 1940, the Company had in force and effect in- surance policies amounting to $565,151,504. On the same date, the Company had in force and effect in its Columbus, Georgia, district offices here involved 10,538 policies for $4,333,212 of insurance, and in its Richmond, Virginia, district office here involved, 53,615 policies for $24,252,771 of insurance. The assets of the Company, as of December 31, 1940, were as follows : Cash------------------------------------------- $3,172,112.64 Bonds ($50,553,434.93) : United States Government___________________ 6, 934, 779. 09 Federal Farm Mtg Corporation --------------- 1, 971, 482. 28 Hoiue Owners Loan Corporation_____________ 265, 967.03 Reconstruction Finance Corporation ---------- 90, 360. 45 Canadian Government________________________ 1,177, 106. 35 State and Municipal_________________________ 17, 970, 724. 81 Public Utility________________________________ 11, 346,386. 76 Railroads ----------------------------------- 5, 751, 588. 03 Industrial and Other__________________ ______ 5,045,090.13 Stocks ------------------------------------------ 4,057,410.79 Loans secured by pledged bonds, stocks, or other collateral____________________________________ 450,673.11 Mortgage Loans on Real Estate-Includes $289,- 050.00 loans on ranches and $212,970 33 on farms---------------------------------------- 33, 034, 380.63 Instalment Contracts for sale of Real Estate ------ 1,162, 762.53 Real Estate Used or Held for Home Office Purposes- 1, 600, 284.65 Real Estate Acquired by Foreclosure---___---___ 6, 571, 505.66 Loans to Policyholders-Secured by cash values of their policies --------------------------- - ----- 7, 889, 846. 71 Interest and rents Due and Accrued_______________ 874, 411. 81 Instalments, not yet due, of Current Year's Pre- miums in Course of Collection, and Premiums Extended-Secured by Policy Reserves 1,633,939 32 Other Assets ------ ------------ __________________ 20,594 50 THE LIFE INSURANCE' COMPANY OF-VIRGINIA 677 The Company's cash was deposited , in 123 banks and trust com- panies located in 18 States and the District of Columbia. During the year 1940 the Company purchased securities from vendors lo- cated in seven States and the District of Columbia. All securities purchased by the Company are delivered to it at its home office and are kept in Richmond, Virginia. " The Company holds some common -stock, but its stock holdings consist principally of the preferred stocks of railroads, public util- ities, industrial, and miscellaneous companies. Loans are made by the Company on notes secured by mortgages on residences, apart- ment buildings, business property, and farms. The Company has outstanding loans secured by real estate located in 20 States and the District of Columbia. The Company has loan correspondents in 19 States and the District of Columbia, through whom loans are pur- chased 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 1940 the Company purchased furniture, fixtures, and mechanical equipment having the value of $19,460.67. The proportion of such purchases made outside the State of Virginia, and the distribution of such furniture, fixtures, and mechanical equipment to offices of the Company outside the State had not been determined at the time of the hearing. However, in 1939 at least 26 per cent of such articles were purchased outside the State of Virginia and used by the Com- pany in other States and the District 'of Columbia. In 1940 the Company purchased in the State of Virginia paper and other stationery supplies in the amount of $62,249.59. Of such paper and supplies, only about 63 per cent was used by the Company at its home office.' In 1939 the Company purchased in the State of Virginia approximately $6,700 worth of paper which it had printed in various forms, approximately 94 per cent of such printing being done in the State of Virginia. The printed matter was then shipped to the Company's various district offices by express and mail. During the same year the Company purchased from a concern in Virginia ap- proximately $6,731 worth of calendars, which were shipped directly by the seller to the various offices of the Company for distribution. Of approxiiiiately 15,000 pounds of stationery and advertising ma- terial shipped by the Company from its home office to its various district offices in 1939, approximately 78 per cent was shipped 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, $12,377.37; and in 1940, $42,292.56. In 1939 the Company spent $19,906.76 for traveling expenses of its agency supervisors ; in 1940 it spent $21,277.70 for the same purpose. 678 DECISIONS OF NATIONAL LABOR RELATIONS BOARD II. THE ORGANIZATIONS INVOLVED American'Federation of Industrial and Ordinary Insurance Agents Union No. 22164, Richmond, Virginia, and American Federation of Industrial and Ordinary Insurance Agents Union No. 22265, Colum- bus, Georgia, are labor organizations chartered by the American Fed- eration of Labor, admitting to membership debit collectors employe' by the Company in its Richmond, Virginia, and Columbus, Georgia, district offices, respectively. III. THE QUESTION CONCERNING REPRESENTATION On January 28, 1941, after proceedings had upon petitions for investigation and certification of representatives filed by five labor organizations affiliated with the American Federation of Labor and- with the Unions here involved, the Board issued its Decision and Direction of Elections in Cases Nos: R-2223 to R-2227, inclusive, in which it directed that elections be conducted among debit collectors employed by the Company in its Alexandria, Virginia, Norfolk, Vir- ginia, Newport News, Virginia; Detroit, Michigan; and Cincinnati. Ohio, district offices.' In February 1941 the Unions filed their peti- tions in the present proceedings, alleging that the Company had de- clined to recognize either the Richmond Union or the Columbus Union as the exclusive bargaining representative of its employes in the units claimed by the respective Unions to be appropriate unless and until said Unions had petitioned the Board for an investigation and certification of representatives. Upon being advised by agents of the Board of the filing of these petitions, the Company, on Febru- ary 24 and 26, respectively, advised the Regional Directors for the Fifth and Tenth Regions that it would decline to enter into consent elections, and suggested that the procedure followed in Cases Nos. R-2223 to R-2227, inclusive, be pursued in these proceedings. At the hearing reports prepared by the Regional Directors for the Fifth and Tenth Regions were introduced in evidence showing that the Unions respectively represent substantial numbers of em- ployees in the units found below to be appropriate for the purposes of collective bargaining.2 ' Ct, 1 Matter of Life Insurance Company of Virginia and The American Federation of Indus- trial and Ordinary Insurance Agents Union No. 22264, et al, 29 N . L R B , No 44. 2 The report of the Regional Director for the Fifth Region shows that the Richmond Union submitted to him 23 membership applications and bargaining authorizations dated in March 1940 and February 1941 , all bearing apparently genuine, original signatures, 16 of which appear to be the signatures of persons listed on the Company's pay roll of February 24, 1941 It appears that the Company employs 40 agents in the unit .herein found appropriate in its Richmond, Virginia, district office The report of the Regional Director for the Tenth Region shows that the Columbus Union submitted to him 6 mem= bership applications of which 5 are dated in Februaiy 1940 , all bearing apparently genuine, original signatures , 5 of which appear to be the signatures of persons listed on the Com- pany s pay roll of Februaiy 25, 1941 It appears that the Company employs 9 agents in the unit herein found to be appropriate in its Columbus , Georgia, district office. THE LIFE INSURANCE COMPANY OF VIRGINIA 679 We find that questions have arisen concerning the representation of employees of the Company. IV. THE EFFECT OF THE QUESTIONS CONCERNING REPRESENTATION UPON 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 UNITS The Unions contend that the debit collectors employed by the Com- pany in its Richmond, Virginia, district office and in its two district ;offices located in the Flowers Building in Columbus, Georgia,3 re- spectively, excluding district managers, assistant district managers, inspectors, and office and clerical employees constitute two separate units appropriate for the purposes of collective' bargaining. The re- quested units are similar to those found by us to be appropriate in other cases involving 'employees in other district offices of the Company.4 The Company does not object to the units desired by the Unions. We find that the debit collectors employed by the Company in its Richmond, Virginia, district office and in its two district offices lo- cated in the Flowers Building in Columbus, Georgia, respectively, excluding district managers, assistant district managers, inspectors, and office and clerical employees, constitute two 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 other- wise effectuate the policies of the Act. VI. THE DETERMINATION OF REPRESENTATIVES We find that the questions which have arisen concerning the rep- resentation of employees of the Company can best be resolved by elections 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 S Referred to at the hearing and in a stipulation and brief prepared by the Company as -a single district office. 0 4 Matter of Life Insurance Company of Virginia and The American Federation of Industrial and Ordinary Insurance Agents Union No. 22264, et al , 29 N. L. R. B 246. 680 DECISIONS OF, NATIONAL LABOR RELATIONS BOARD pay-roll periods immediately, preceding the date of our Direction of Elections, subject to such limitations and. additions as are set forth in the Direction. 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. Questions affecting commerce have arisen concerning the represen- tation 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 debit collectors employed by the Company in its Richmond, Virginia, district office, and in its two district offices located in the Flowers Building in Columbus, Georgia, respectively, excluding dis- trict managers, assistant district managers, inspectors, and office and clerical employees, constitute two separate units appropriate for the purposes 'of 'collective bargaining, within the meaning of Section 9 (b) `of 'the- Act. 0 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 Re- lations 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 purposes of collective bar- gaining,with The Life Insurance Company of Virginia, separate elec- tions 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 the debit collectors employed by The Life Insurance Company of Virginia in its Richmond, Virginia, district office, 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 or in the active military service or training of the United States, or temporarily laid off, but excluding district managers, assistant district managers, inspectors, office and clerical employees, and those who have since quit or been discharged for cause, to determine whether or not they 'desire to be represented by THE LIFE INSURANCE COMPANY OF VIRGINIA 681 American Federation of Industrial and Ordinary Insurance Agents Union No. 22164, Richmond, Virginia, for the purposes of collective bargaining; and I - 2. Under the direction and supervision of the Regional Director - for.the Tenth 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 two district offices located in the Flowers Building in Columbus, Georgia, who were employed by the Company, during the pay-roll period immediately preceding, the date of this Direction, including employees who did hot work during said pay-roll period because they were ill or on vacation or in the active military service or training of the United States, or tem- porarily laid off, but excluding district managers, assistant district managers, inspectors, office and clerical employees, and those who have since quit or been discharged for cause, to determine whether or not they desire to be represented by American Federation of Industrial and Ordinary Insurance Agents Union No. 22265, Colum- bus, Georgia, for the purposes of collective bargaining.