The Paterson Leitch Co.

In the Matter of THE PATERSON LEITCH COMPANY and INTERNATIONAL ASSOCIATION OF BRIDGE, STRUCTURAL & ORNAMENTAL IRON WORKERS, LOCAL 468, AND WAREHOUSE & DISTRIBUTION WORKERS UNION, LOCAL 2-9 Case No. RE-22.Decided July 17, 1941 Jurisdiction : steel fabrication industry. Practice and Procedure : petition dismissed where no appropriate unit within scope of petition. Mr. L. C. Spieth, of Cleveland, Ohio, for the Company. Mr. James C. Connell, of Cleveland, Ohio, for Local 468. Mr. Edward F. Crudele, of Cleveland, Ohio, for Local 2-9. Mr. Norman M. Neel, of counsel to the Board. DECISION AND ORDER 'STATEMENT OF THE CASE On May 13, 1941, the Paterson Leitch Company, Cleveland, Ohio, herein. called the Company, filed with the Regional Director for the Eighth Region (Cleveland, Ohio) a petition alleging that a question affecting commerce had arisen concerning the representation of em- ployees of the Company and requesting an investigation and certifica- tion of representatives pursuant to Section 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. On May 21, 1941, the National Labor Relations Board, herein called the Board, issued an order dismissing the petition, and on May 26 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, revoked its order dismissing the petition and ordered an investigation and authorized the Regional Director to conduct it and to provide for an appropriate hearing upon due notice. On May 28, 1941, the Regional Director issued a notice of hearing, copies of which were duly served upon International Association of Bridge, Structural & Ornamental Iron Workers, Local No. 468, affiliated with the American Federation of Labor, herein called Local 468, and Warehouse & Distribution Workers Union, Local 2-9, affiliated 33 N. L. R. B., No. 95. 485 486 DECISIONS OF NATIONAL LABOR RELATIONS BOARD with the Congress of Industrial Organizations, herein called Local 2-9, labor organizations claiming to represent employees directly affected by the investigation. Pursuant to notice, a hearing was held June 5 and 6, 1941, at Cleveland, Ohio, before Harry L. Lodish, the Trial Examiner duly designated by the Chief Trial Examiner. The Com- pany, Local 468, and Local 2-9 were represented by counsel and 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 on 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. Local 468 and Local 2-9 each filed a brief and a reply brief, all of which have been considered by the Board. Upon the entire record in the case, the Board makes the following : FINDINGS OF FACT 1. THE BUSINESS OF THE COMPANY The Paterson Leitch Company is an Ohio corporation with its office and plant at Cleveland, Ohio, engaged in the fabrication of various types of steel for industrial purposes, such as tracks, frames, runways, and conveyor frames, and in warehousing for sale, steel requirements for industrial service. Of the steel purchased by the Company for use at its plant approximately 40 per cent is shipped from places outside the State of Ohio, and a substantial amount of its products is shipped to places outside the State of Ohio. The Company employs about 200 persons, of whom approximately 160 are engaged in production and maintenance work. It concedes that it is engaged in interstate commerce within the meaning of the Act. II. THE LABOR ORGANIZATIONS INVOLVED International Association of Bridge, Structural & Ornamental Iron Workers Union, Local No. 468, is a labor organization affiliated with the American Federation of Labor. It admits to membership pro- duction and maintenance employees of the Company. Warehouse & Distribution Workers Union, Local No. 2-9, is a labor organization affiliated with the Congress of Industrial Organizations. It admits to membership production and maintenance employees of the Company. THE PATERSON LEIITCH COMPANY III. THE APPROPRIATE UNIT 487 Prior to 1934, International Association of Bridge, Structural & Ornamental Iron Workers, Local 17, affiliated with, the American Federation of Labor, herein called Local 17, having jurisdiction over persons employed. in the outside erection of iron work, negotiated contracts with the Building Trade Employers Association of Cleve- land and the Iron and Steel Contractors' Association of Cleveland, covering employees of employers who were members of these associa- tions. In November 1934 the International with which Local 17 was affiliated undertook the organization of inside iron workers em- ployed in steel fabricating shops in the Cleveland area and chartered Local 468 with jurisdiction over such employees. In December 1934 Local 468 executed identical contracts with six employers in the Cleveland area. Each year thereafter the contracts were renewed or new ones executed. In 1939 Local 468 executed contracts with a number of companies containing the following clause : "'The employer' agrees to employ members of `The Union', who are in good standing, on the fabrication of all work coming within the jurisdiction of `The Union,' as set forth in the constitution of the International Association of Bridge, Structural & Ornamental Iron Workers." This contract was signed by officers of the International as well as by Local 468, and in 1940 it was extended until May 31, 1941. On January 27, 1941, pursuant to a provision of the contract that notice of intention to alter the terms of the contract must be given 4 months prior to its expiration, Local 468 proposed certain changes. In April 1941 all 26 employers who had executed the 1940 contract with Local 468, including the Company, agreed upon a counterproposal, which they communicated to Local 468. At a regular meeting on May 5, 1941, after discussion and secret ballot, Local 468 accepted the counterproposal and a notice to that effect was dispatched to the companies on the following day, May 6,1941. By the terms of the counterproposal and acceptance the new contract was to become effective on June 1, 1941. Local 468 subsequently ratified its acceptance of the companies' counterproposal. Local 2-9 began the organization of the Company's employees on May 5, 1941, and on May 10 it gave notice to the Company that it represented a majority of the Company's employees and requested a conference for bargaining purposes.' The Company replied that it was filing a petition with the Board requesting an election to determine the proper bargaining agency. ' On May 15 , 1941, Local 2-9 submitted to a rApresentative of the Board 136 applica- tion cards , and it was determined that 135 of the signatures on said cards were the names of persons on the Company 's pay roll , although a comparison of the signatures was'not made Local 468 claims to continue to represent all the production and maintenance employees of the Company pursuant to its closed -shop contract. 488 DECISIONS OF NATIONAL LABOR RELATIONS BOARD On May 14, 1941, the Company and Local 468 executed a formal contract pursuant to the agreement reached on May 6, containing the closed-shop provision hereinbefore quoted and stating that it was to be effective June 1, 1941, subject however "to any determination of the rights of the parties in the proceedings now pending before the National Labor Relations Board at Cleveland and in which this agreement may be involved." Apparently all the companies had at the time of the hearing entered into identical contracts giving effect to the wage increase and reduction in hours provided for in the counterproposal of the companies which was accepted by Local 468 on May 6,1941. Local 468 and Local 2-9 agreed that the appropriate unit should consist of all production and maintenance employees, excluding super- visory and maintenance employees and truck drivers. Local 2-9 con- tends, however, that the employees of the Company alone should constitute the appropriate unit while Local 468 contends that the employees of the 26 companies who have been acting in concert in the conduct of labor relations should comprise the unit. The same method of negotiation between Local 468 and the com- panies has prevailed since 1934. In that year the president of Re- public Structural Iron Works Co., herein called Republic, was elected chairman of the employer group and since that date the manager of Republic has acted as secretary. In the course of bargaining with the employers, Local 468 has contacted the officers of Republic who have then secured approval of the other companies by calling meetings of employer representatives or by requesting the companies to accept a proposal by telephone. Upon reaching an agreement, the companies held a joint meeting with officials of Local 468 and the terms of the contracts were jointly agreed upon and identical contracts entered into. In view of the established history and practice of bargaining we are of the opinion that the single plant unit contended for by Local 2-9 is inappropriate for the purposes of collective bargaining. IV. THE ALLEGED QUESTION CONCERNING REPRESENTATION Since, as we have found in Section III above, the bargaining unit sought to be established by Local 2-9 is inappropriate for the pur- poses of collective bargaining, and since the employees in the unit contended for by Local 468 are presently covered by valid contracts, we find that no question has arisen concerning the representation of employees of the Company in an appropriate bargaining unit. Accordingly, we shall dismiss the petition. Upon the basis of the above findings of fact and upon the entire record in the case, the Board makes the following: THE PATERSON LEIETCH COMPANY 489 CONCLUSION OF LAW No question concerning the representation of employees of the Paterson Leitch Company, Cleveland, Ohio, in a unit which is ap- propriate for the purposes of collective 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 petition for investigation and certification of representatives filed by the Paterson Leitch Company, Cleveland, Ohio, be, and it hereby is dismissed.