Chrysler Corp.

In the Matter Of CHRYSLER CORPORATION and INTERNATIONAL UNION, UNITED AUTOMOBILE WORKERS OF AMERICA, AFFILIATED WITH THE C. I. O. Case No. R-2742.-Decided August 8, 1941 Jurisdiction : tank manufacturing industry. Investigation and Certification of Representatives : existence of question: re- fusal to accord union recognition on ground that it did not represent majority of employees; election necessary and directed to be conducted as early as possible notwithstanding Company's request that no election be held at this time because of increases in its working force. Unit Appropriate for Collective Bargaining : production and maintenance em- ployees, excluding superintendents, foremen, assistant foremen, timekeepers, plant protection employees, confidential salaried employees, and salaried engineers. Mr. Woodrow J. Sandler, for the Board. Larkin, Rathbone cC Perry, by Mr. T. R. Iserman, of New York City, for the Company. Mr. Maurice Sugar and Mr. Jack N. Tucker, of Detroit, Mich., for the Union. Mr. Marvin C. Wahl, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF THE CASE On May 28, 1941, International Union, United Automobile Workers of America, affiliated with the C. I. 0., herein called the Union, filed with the Regional Director for the Seventh Region (Detroit, Michigan) a petition alleging that a question affecting commerce had arisen concerning the representation of employees of Chrysler Corporation, Macomb County, Michigan, herein called the Company, and requesting an investigation and certification of repre- sentatives pursuant to Section 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. On July 3, 1941, the Na- tional Labor Relations Board, herein' called the Board; acting pur- suant 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 and authorized the Regional 34 N. L. It. B., No. 4. 35 36 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Director to conduct it and to provide for an appropriate hearing upon due notice. On July 7, 1941, the Regional Director issued a notice of hearing, copies of which were duly served upon the Company and the Union. Pursuant to notice a hearing was held on July 16, 1941, at Detroit, Michigan, before James C. Batten, the Trial Examiner duly desig- nated by the Chief Trial Examiner. The Board, the Company, and the Union were represented by counsel and participated 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. On July 29 and 30, 1941, respec- tively, the Company and the Union filed briefs which the Board has considered.' Upon the entire record in the case, the, Board makes the following : FINDINGS OF FACT I. THE BUSINESS OF THE COMPANY Chrysler Corporation is a Delaware corporation, engaged in the manufacture of tanks for the United States Government at a tank arsenal located in Macomb County, Michigan.2 The arsenal, the only plant with which this proceeding is concerned, and the machinery, tools, and equipment contained therein are owned by the United States Government. The Company operates the arsenal pursuant to a lease agreement with the Government under which, at the time of the hearing, it was to manufacture 1000 medium-sized tanks exclusively for the United States Army. At the date of the hearing, the Com- pany hired, paid, and supervised approximately 1500 employees at the arsenal who were engaged in the manufacture, assembly, and inspection of the tanks. The Government employs about 150 civil service employees at the plant who handle materials owned by the Government, and inspect the materials and the finished product. The tanks are delivered to the Government at the plant. Of the materials used in the construction of the tanks, 33 per cent in weight is owned and furnished by the United States. These materials include arma- ment, armor, and engines. They are assembled into the completed I On August 1, 1941, the Company wrote a letter to the Board in the nature of a reply brief. 2 The main business of the Company is the manufacture of automobiles , parts, and acces sories. It has plants in Michigan , Indiana, and California, and owns between 25 and 30 subsidiaries throughout the country . See Matter of Chrysler Corporation and United Auto mobile Workers of America, Local 371, al/ liated with C. I. 0., etc., 13 N. L. It. B. 1303. CHRYSLER CORPORATION 37 tank by the Company's employees. Approximately 67 per cent in weight of the materials for the completed tanks are purchased by the Company. Some of them are manufactured or finished at the arsenal. Approximately 73 per cent of the materials purchased by the Company are received from sources outside the State of Michigan. II. THE ORGANIZATION INVOLVED International Union, United Automobile Workers of America, affiliated with the Congress of Industrial Organizations, is a labor organization admitting to membership employees of the Company. III. THE-QUESTION CONCERNING REPRESENTATION On May 19, 1941, the Union by letter advised the Company that it represented a majority of its employees for the purposes of collective bargaining, and requested recognition as the exclusive bargaining representative of all the hourly rate employees and a conference to negotiate a collective bargaining agreement with the Company. By letter dated May 23, 1941, the Company replied that it did not believe that the Union represented a majority of its workers who were then employed, and refused to confer as requested. A statement of the Regional Director was introduced in evidence which shows that the Union represents a substantial number of employees in the unit here- inafter found to be appropriate.' We find,that a question has arisen concerning the representation of employees of the Company. IV. THE EFFECT OF THE QUESTION CONCERNING REPRESENTATION UPON COMMERCE We find that the question concerning representation which has arisen, occurring in connection with the operations of the Company described in Section I, above, has a close, intimate, and substantial relation to trade, traffic, and commerce among the several States and tends to lead to labor disputes burdening and obstructing commerce and the free flow of commerce 4 3 The Regional Director's statement shows that the Union submitted 290 membership cards and 265 "transfer cards " dated between April and June 1941 . Of the membership cards 279 seemed to bear genuine signatures , and appeared on the Company's June 13, 1941, pay roll. The "transfer cards" indicated that the signers desired to transfer their member- ship from other locals of the Union to the local set up at the Company 's plant herein in- volved. Two hundred and fifty-one of said "transfer cards" bore apparently genuine sig- natures of employees on the Company 's June 13, 1941 , pay roll, which listed 1170 employees in the claimed unit. 6 The Company contends that the manufacture at the Government -owned tank arsenal of products solely for the Government, and the delivery thereof to the Government at the arsenal does not constitute "commerce" within the meaning of the Act , but rather that the operations at the arsenal constitute a course of administrative action by the Government. We find the contention of the Company to be without merit. 451269-42-vol. 34--4 38 DECISIONS OF NATIONAL LABOR RELATIONS BOARD V. THE APPROPRIATE UNIT The parties stipulated and we find that all production and mainte- nance employees of the Chrysler Corporation at the tank arsenal, Macomb County, Michigan, excluding superintendents, foremen, assist- ant foremen, timekeepers, plant protection employees, office employees, confidential salaried employees, and salaried engineers, constitute a unit appropriate for the purposes of collective bargaining.-, We find further that said unit will insure to employees of the Company the full benefit of their right to self-organization and to collective bar- gaining and otherwise effectuate the policies of the Act. VI. THE DETERMINATION OF REPRESENTATIVES We find that the question which has arisen concerning the repre- sentation of employees of the Company can best be resolved by an election by secret ballot. The Union requests that eligibility to vote in the election be determined by the pay roll immediately preceding the date of the Direction of Election. The Company contends that no election should be held at this time on the grounds that it expected to increase its working force from approximately 1,500, at the date of the hearing, to a total of 6,000 by November 15, 1941. While the evidence establishes that the Company's working force is expanding rapidly, to refuse to direct an election would deprive the Company's employees of their right to collective bargaining at this time. Accordingly, we shall direct that an election be held -as early as possible but not later than thirty days from the date of our Direction of Election. ° In ac- cordance with our usual practice we shall direct that those eligible to vote in the election shall be the employees within the appropriate unit who were employed by the Company during the pay-roll period immediately preceding the date of the Direction of Election, subject to such limitations and additions as are set forth in the Direction hereinafter. 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. A question affecting commerce has arisen concerning the repre- sentation of employees of Chrysler Corporation, Macomb County, 5 In accordance with the agreement of the parties all civil service employees employed at the plant are excluded from the appropriate unit. All other employees at the United States Government are also excluded from the unit. 6Matter of National Fireworks, Inc. and Federal Labor Union No. 22691, affiliated with the American Federation of Labor, 33 N. L. R. B. 1115; and see Matter of Foster-Grant Co., Inc. and Local No. 60, Molders Union of Leominster, affiliated to United Paper Novelty and Toy Workers International Union (0. 1. 0.), 32 N. L. R. B. 486. CHRYSLER CORPORATION 89 Michigan, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the National Labor Relations Act. 2. All production and maintenance employees of the Chrysler Cor- poration at the tank arsenal, Macomb County, Michigan, excluding superintendents, foremen, assistant foremen, timekeepers, plant pro- tection employees, confidential salaried employees, and salaried engineers., constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9 (b) of the National Labor Relations Act. DIRECTION OF ELECTION 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 investigation authorized by the Board to ascertain representatives for the purposes of collective bargaining with Chrysler Corporation, Macomb County, Michigan, an election by secret ballot shall be conducted as soon as possible, but not later than thirty (30) days from the date of this Direction of Election, 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 all production and maintenance em- ployees of the Chrysler Corporation at the tank arsenal, Macomb County, Michigan, who were employed by the Company during the pay-roll period immediately preceding the date of this Direction of Election, including employees who did not work during such 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 superintendents, foremen, assistant foremen, timekeepers, plant protection employees, confidential salaried employees, office employees, and salaried engineers, and employees who have since quit or been discharged for cause, to determine whether or not they desire to be represented by International Union, United Automobile Workers of America, affiliated with the C. I. 0., for the purposes of collective bargaining.