Hat Corp. of America

In the Matter of HAT CORPORATION OF AMERICA and UNITED HATTERS, CAP AND MILLINERY WORKERS' INTERNATIONAL UNION, A. F. OF L. Case No. C-1872.-Decided September 10, 1941 Jurisdiction : hat manufacturing industry. Settlement : stipulation providing for compliance with the Act; findings of Trial Examiner in so far as they relate to organization not a party to the stipulation, in absence of exceptions of the parties and upon the entire record in the case, concurred in, adopted, and incorporated by reference in Board's decision. Remedial Orders : entered on stipulation. Mr. Christopher W. Hoey, for the Board. McLanahan, Merritt, Ingraham & Christy, by Mr. Walter Gordon Merritt and Mr. Henry Clifton, Jr., of New York City, for the respondent. Coult, Satz, Tomlinson & Morse, by Mr. David A. Morse and Mr. Joseph Coult, Jr., of Newark, N. J.; Mr. Elias Lieberman, of New York City; Mr. Hugh J. Glover, of Newark, N. J.; Mr. Marx Lewis, of New York City; and Mr. Vincent Novaco, of Danbury, Conn., for the Union. Mr. Leroy Emmerthal, Mr. Charles A. Curry, Mr. Frank Tooker, and Mr. Anthony Papagno, of East Norwalk, Conn., for the Asso- ciation. Mr. Raymond Enyeart, of East Norwalk, Conn., for the Alliance. Miss Josephine Bagdady, of East Norwalk, Conn., for Trimmers Organization. Mr. Edward Roy and Mr. Charles Blarney, of East Norwalk, Conn., for Finishers Organization. Miss Grace MeEldowney, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Upon charges and amended charges duly filed by United Hatters, Cap and Millinery Workers' International- Union, A. F. of L., herein called the Union, the National Labor Relations Board, herein called 35 N. L. R. B., No. 63. 309 310 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Board, by the Regional Director for the Second Region (New York City), issued its complaint, dated March 21, 1940, and ics amended complaint, dated June 14, 1940, against Hat Corporation of America, East Norwalk, Connecticut, herein called the respond- ent, alleging that the respondent had engaged in and was engaging in unfair labor practices affecting commerce, within the meaning of Section 8 (1), (2), (3), and (4) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. Copies of the amended complaint, accompanied by notice of hearing, were duly served upon the respondent and the Union, and upon Front Shop Departmental Alliance, herein called the Alliance, C. & K. Hat Makers Association, Incorporated, herein called the Association, Trimmers Organization, Finishers Organization, Milli- nery Finishers Organization, and Employees of Backshop Division of Hat Corporation of America, organizations alleged in the com- plaint to be dominated by the respondent. With respect to the unfair labor practices the amended complaint alleged in substance that the respondent (1) urged and warned its employees to refrain from becoming or remaining members of the Union; threatened with discharge and other reprisals those who be- came or remained members of the Union; entertained at social func- tions to induce employees to abandon the Union and form an independent association; changed its method of publicly assigning work to a secret plan in order to discourage membership in the Union ; announced it would prefer in `employment those employees who did not participate in a strike called by the Union in December 1937; dnd kept under surveillance meetings of the Union; (2) initi- ated, formed, and sponsored the Alliance and the Association, and dominated, interfered with, and contributed support to the Alliance and its successors, Finishers Organization, Trimmers Organization, and Millinery Finishers Organization, and to the Association and its successor, Employees of Backshop Division of Hat Corpora- tion of America, Plant No. 1; (3) discharged and refused to reinstate eight employees 1 for the reason that they joined or assisted the Union or engaged in concerted activities with other employees for their mutual aid and protection; (4) discharged two 2 of the eight employees for the further reason that they gave testimony in a rep- resentation proceeding before the Board; and (5) by the foregoing and other acts, interfered with, restrained, and coerced its employees in the exercise of the right's guaranteed in Section 7 of the Act. 1 Harriet Singewald, Harry Gerber, Joseph Szabo , Edward Bloom, Thomas Moore, Thomas Maisano, Joseph Dmytryszyan , and John Fanelli. 2 Joseph Dmytryszyan and Joseph Fanelli. HAT CORPORATION OF AMERICA 311 On June 24, 1940, the respondent filed an answer to the amended complaint, admitting the allegations regarding the nature of its busi- ness, but denying that it had engaged in the alleged unfair labor practices. Pursuant to 'notice, a hearing was held at South Norwalk, Con- necticut, from July 1 to 31, and from December 16 to 18, 1940, before Mortimer Riemer, the Trial Examiner duly designated by the Chief Trial Examiner. The Board and the respondent were represented by counsel; the Union by counsel and a representative; the Associa- tion, the Alliance, Trimmers Organization, and Finishers Organiza- tion by representatives; and all parties participated in the hearing. Full opportunity to be heard, to examine and cross-examine wit- nesses, and to introduce evidence bearing on the issues was afforded all parties. Briefs were submitted by the respondent and the Union. Oral argument, pursuant to order thereon, in which the Board attorney, the respondent, and the Union participated, was held before the Trial Examiner at New York City on February 4, 1941. On May 7, 1941, the Trial Examiner issued his Intermediate Re- port, copies of which were served on all parties, in which he found that the respondent had engaged in and was engaging in unfair labor practices affecting commerce, within the meaning of Section 8 (1), (2), and (3) and 2 (6) and (7) of the Act. He recommended that the respondent cease and desist therefrom and that it take cer- tain affirmative action in order to effectuate the policies of the Act. He also recommended that the complaint be dismissed in so far as it alleged that the respondent changed its method of work distribution in order to discourage membership in the Union, or discriminated with regard to the hire and tenure of employment of Harry Gerber, Thomas Maisano, and Thomas Moore, three of the eight em- ployees named in the complaint.' No exceptions were filed to the Intermediate Report. On July 29, 1941, the respondent, the Union, Finishers Organiza- tion, Trimmers Organization, the Association, and the attorney for the Board entered into a stipulation which provided as follows : IT IS HEREBY STIPULATED AND AGREED among the National Labor Relations Board, Hat Corporation of America, United Hatters, Cap and Millinery Workers' International Union, A. F. of L., B At the hearing of the Trial Examiner had dismissed the allegations of the complaint that the respondent had dominated and interfered with the formation and administration of Millinery Finishers Organization and Employees of Backshop Division of Hat Corpora- tion of America ; that Finishers Organization and Trimmers Organization were successors to the Alliance ; and that the respondent had kept under surveillance the meetings of the Union and had discharged Joseph Dmytryszyan and John Fanelli because they had testified in a representation proceeding. 312 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Finishers Organization, Trimmers Organization and C. & K. Hat Makers Association, Inc.: That Hat Corporation of America, United Hatters, Cap and Millinery Workers' International Union, A. F. of L., Finishers Organization, Trimmers Organization and C. & K. Hat Makers Association, Inc., waive their rights to file exceptions with the National Labor Relations Board to the intermediate report of Trial Examiner Mortimer Riemer, dated May 7, 1941, to argue such exceptions orally before the National Labor Relations Board, and to file briefs with the National Labor Relations Board in support of such exceptions, and they waive their rights to further hearing, to the making of findings of fact by the National Labor Relations Board, and on the basis of the tran- script of record in the above-entitled case and said intermediate report of Trial Examiner Riemer, and on this stipulation, an order may be entered by the National Labor Relations Board as recommended by said Trial Examiner Mortimer ' Riemer in his said intermediate report of May 7, 1941, providing as follows : 'A. Respondent, Hat Corporation of America, East Norwalk, Connecticut, and its agents, officers, successors and assigns, shall : 1. Cease and desist from : (a) Dominating or interfering with the administration of the Finishers Organization, the Trimmers Organization or C. & K. Hat Makers Association, Incorporated, or the forma- tion or administration of any other labor organization of its employees, and from contributing support to the said Finishers Organization, Trimmers Organization, Association, or to any other labor organization of its employees; (b) Discouraging membership in United Hatters, Cap and • Millinery Workers' International Union, A. F. of L., or any other labor organization of its employees by discrimination in discharging, laying off or refusing to reinstate any of its employees, or by discriminating in any other manner in regard to their hire and tenure of employment or any term or con- dition of employment; (c) In any other manner interfering with, restraining, or coercing its employees in the exercise of the right 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. HAT CORPORATION OF AMERICA 313 2. Take the following affirmative action which the Board finds will effectuate the policies of the National Labor Relations Act : (a) Withdraw all recognition from the Finishers Organi- zation. the Trimmers Organization and C. & K. Hat Makers Association, Incorporated, as representatives of any of its employees for the purpose of dealing with the respondent concerning grievances, labor disputes, wages, rates of pay, hours of employment, or other conditions of employment, and completely disestablish the Finishers Organization , the Trim- mers Organization and C. & K. Hat Makers Association, Incorporated; (b) Offer to Harriet Singewald, Edward Bloom, Joseph Szabo, Joseph Dmytryszyan, and John Fanelli, immediate and full reinstatement to their former or substantially equiva- lent positions without prejudice to their' seniority and other rights and privileges; (c) Make whole said Harriet Singewald, Edward Bloom, Joseph Szabo, Joseph Dmytryszyan, and John Fanelli for any loss of pay they may have suffered by reason of the respondent's discrimination against them, by payment to each of them of a sum of money equal to that whi ,h he normally would have received as wages from the date of the respondent's discrimina- tion against him to the date of the respondent's offer of re- instatement, less his or her net earnings during said period, and less losses which each such person may have wilfully in- curred within the doctrine set forth by the United States Supreme Court in the case of National Labor Relations Board vs. Phelps Dodge Corporation, 61 Supreme Court 845; (d) Immediately post on all bulletin boards throughout its plants No. 1 and No. 2 at East Norwalk, Connecticut, and maintain for a period of at least sixty (60) consecutive days, from the date of posting notices to its employees stating (1) that the respondent will not engage in the conduct from which it is ordered that it cease and desist in paragraphs 1 (a), (b), and (c ) above; (2) that the respondent will take the affirma- tive action set forth in paragraphs 2 (a), (b), and ( c) ; and (3) that the respondent's employees are free to become or remain members of United Hatters, Cap and Millinery Work- ers' International Union, A. F. of L., or of any other labor organization, and that the respondent will not discriminate against any employees because of membership or activity in any such organization ; 314 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (e) Notify the Regional Director for .the Second Region in writing within twenty (20) days from the date of this order what steps the respondent has taken to comply therewith. Upon application by the Board, the United States Circuit Court of Appeals for the Second Circuit, or 'any appropriate Circuit Court of Appeals of the United States, may enter its decree enforcing the order of the Board hereinabove agreed to. All parties hereto expressly waive any right to contest the entry of such decree, or to receive further notice of the application for, or entry of, said decree. A copy of said decree shall be served upon the respondent after entry thereof. This stipulation is subject to the approval of the National Labor Relations Board, Washington, D. C. Upon approval by the National Labor Relations Board this stipulation may be filed with the Chief Trial Examiner and when so filed shall become part of the record. It is understood that this stipulation embodies. the entire agreement among the parties. The respondent, the Union, and the attorney for the Board further stipulated as follows : IT IS FURTHER STIPULATED AND AGREED that the order to be entered by the National Labor Relations Board in accordance with the stipulation of which this is made a part, shall provide as follows: v That the complaint be dismissed insofar as it alleges that the respondent changed its method of work distribution in order to discourage membership in the United Hatters, Cap and Millinery Workers' International Union, A. F. of L.; or discriminated with regard to the hire and tenure of employ- ment of Harry Gerber, Thomas Maisano and Thomas Moore. IT IS FURTHER STIPULATED AND AGREED that the Board may make such findings of fact and conclusions of law and may issue such order as it deems appropriate with respect to the Front Shop departmental alliance. On August 1, 1941, the Board issued its order approving the above stipulation and making it a part of the record in the case. Upon the above stipulation and the entire record in the case, the Board makes the following : FINDINGS OF FAOT 1. THE BUSINESS OF THE RESPONDENT The respondent, Hat Corporation of America, is a Delaware cor- poration organized in 1932 as a result of a merger of then existing HAT CORPORATION OF AMERICA 315 hat manufacturers. It has its principal office and place of business in East Norwalk, Connecticut, where it operates three contiguous plants 4 engaged in the manufacture, sale, and distribution of hats for men and women. Through wholly owned subsidiaries the respondent operates retail stores in New York City, to which are sold hats manufactured by it. By dollar volume the respondent is the largest producer of hats in the United States. In the manufacture of its finished products at East Norwalk in 1939, the respondent used materials valued at approximately $1,500,000, and the value of the manufactured products was between $6,000,000 and $7,000,000. Approximately 90 per cent of the raw materials were obtained from sources outside the State of Con- necticut, and 90 percent of the finished products were shipped to points outside the State. The respondent admits that it is engaged in interstate commerce within the meaning of the Act. We find that the above-described operations constitute a con- tinuous flow of trade, traffic, and commerce among the several States. II. THE ALLIANCE Upon the entire record in the case, the Board concurs in, adopts, makes its own, and incorporates by reference in and makes an integral part of this Decision and Order, the findings of fact made by the Trial Examiner in his Intermediate Report, in so far as they relate to the Alliance; specifically, all the material relating to the Alliance set forth in the Intermediate Report under the heading "Findings of Fact." Upon the basis of the foregoing findings of fact and upon the entire record in the case, the Board, in respect to the Alliance, makes the following: , CONCLUSIONS OF LAW 1. Front Shop Departmental Alliance is a labor organization within the meaning of Section 2 (5) of the Act. 2. By dominating and interfering with the. formation and adminis- tration of Front Shop Departmental Alliance, and by contributing support to it, the respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (2) of the Act. 3. By interfering with, restraining, and coercing its employees in the exercise of rights guaranteed in Section 7 of the, Act, the respondent has engaged in and is engaging in unfair labor prac- tices within the meaning of Section 8 (1) of the Act. { These plants are known as Plants Nos 1, 2, and 3 Plant No. 3, the fur plant, is not involved herein. 316 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 4. The aforesaid labor practices are unfair labor practices affecting commerce within the meaning of Section 2 (6) and (7) of the Act. ORDER, Upon the basis of the foregoing findings of fact, conclusions of law, the stipulation, and 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, Hat Corpo- ration of America, East Norwalk, Connecticut, its officers, agents, successors, and assigns, shall : 1. Cease and desist from : (a) Dominating or interfering with the administration of the Fin- ishers Organization; the Trimmers Organization, Front Shop Depart- mental Alliance, or C. & K. Hat Makers Association, Incorporated, or the formation or administration of any other labor organization of its employees, and from contributing support to the said Finishers Organization, Trimmers Organization, Alliance, Association, or to any other labor organization of its employees; (b) Discouraging membership in United Hatters, Cap and Millinery Workers' International Union, A. F. of t., or any other labor organi- zation of its employees by discrimination in discharging, laying off, or refusing to reinstate any of its employees, or by discriminating in any other manner in regard to their hire and tenure of employment or any term or condition of employment ; (c) In any other manner interfering with, restraining, or coercing its employees in the exercise of the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through rep- resentatives of their own choosing, and to engage in concerted activi- ties for the purpose of collective bargaining or other mutual aid or protection, as guaranteed in Section 7 of the National Labor Relations Act. 2. Take the following affirmative action which the Board finds will effectuate the policies of the National Labor Relations Act : (a) Withdraw all recognition from the Finishers Organization, Trimmers Organization, and C. & K. Hat Makers Association, Incor- porated, as representatives of any of its employees for the purpose of dealing with the respondent concerning grievances, labor disputes, wages, rates of pay, hours of employment, or other conditions of employment, and completely disestablish the Finishers Organiza- tion, the Trimmers Organization, the Alliance,, and C. & K. Hat Makers Association, Incorporated; (b) Offer to Harriet Singewald, Edward Bloom, Joseph Szabo, Joseph Dmytryszyan, and John Fanelli, immediate and full rein- HAT CORPORATION OF AMERICA 317 statement to their former or substantially equivalent positions with- out prejudice to their seniority and other rights and privileges; (c) Make whole said Harriet Singewald, Edward Bloom, Joseph Szabo, Joseph Dmytryszyan, and John Fanelli for any loss of pay they may have suffered by reason of the respondent's discrimination, against them, by payment to each of them of a sum of money equal to that which he normally would have received as wages from the date of the respondent's discrimination against him to the date of the respondent's offer of reinstatement, less his or her net earnings 5 during said period and less losses which each such person may have wilfully incurred within the doctrine set forth by the United States Supreme Court in the case of National Labor Relations Board v. Phelps Dodge Corporation, 61 Supreme Court 845; (d) Immediately post on all bulletin boards throughout its plants No. 1 and No. 2 at East Norwalk, Connecticut, and maintain for a period of at least sixty (60) consecutive days from the date of posting, notices to its employees stating (1) that the respondent will not engage in the conduct from which it is ordered that it cease and desist in paragraphs 1 (a), (b), and (c) above; (2) that the respondent will take the affirmative action set forth in para- graphs 2 (a), (b), and (c) ; and (3) that the respondent's employees are free to become or remain members of United Hatters, Cap and Millinery Workers' International Union, A. F. of L., or of any other labor organization, and that the respondent will not discriminate against any employees because of membership or activity in any such organization; (e) Notify the Regional Director for the Second Region in writing within twenty (20) days from the date of this Order what steps the respondent has taken to comply therewith. AND IT IS FURTHER ORDERED that the complaint be, and it hereby is, dismissed in so far as it alleges that the respondent changed its method of work distribution in order to discourage membership in the United Hatters, Cap and Millinery Workers' International Union, A. F. of L.; or discriminated with regard to the hire and tenure of employment of Harry Gerber, Thomas Maisano, and Thomas Moore. 5 By "net earnings" is meant earnings less expenses , such as for transportation, room, and board, incurred by an employee in connection with obtaining work and working else- where than for the respondent, which would not have been incurred but for his unlawful discharge and the consequent necessity of his seeking employment elsewhere . See Matter of Crossett Lumber Company and United Brotherhood of Carpenters and Joiners of America, Lumber and Sawmill Workers Union, Local $590, 8 N. L. R. B. 440 Monies received for work performed upon Federal , State, county, municipal , or other work-relief projects shall be considered as earnings . See Republic Steel Corporation v. N. L. R. B., 311 U. S. 7.