Continental Oil Co.

In the Matter Of CONTINENTAL OIL COMPANY and OIL WORKERS INTER- NATIONAL UNION, C. I. O. Case No. R-3146-Decided December 3,19 4I Jurisdiction : oil producing industry. Investigation and Certification of Representatives : existence of question: refusal to accord union recognition until certified by Board ; election necessary. Unit Appropriate for Collective Bargaining : all drillers, relief drillers, derrick- men, rotary helpers, drilling firemen, hand well pullers, well pullers, dehy- drator operators, dehydrator pumpers, compressor operators, compressor oilers, pumpers, gang pushers, roustabouts, welders, carpenters, painters, truck drivers, tractor drivers, grader operators, yardmen, laborers, warehousemen, and relief compressor operators in the Los Angeles Basin. Ventura, and San Joaquin districts, excluding supervisory and office and clerical employees and the water well pumper in the Ventura' district Martineau and Stratton, by Mr. Warren Stratton, of Los Angeles, Calif., for the Company. Mr. 0. E. Forrester and Mr. John N. Starke, of Long Beach, Calif., for the Union. Mr. Marvin C. Wahl, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF THE CASE On or about July 17, 1941, Oil Workers International Union, C. I. 0., herein called the Union, filed with the Regional Director for the Twenty-first Region (Los Angeles, California) a petition alleging that a question affecting commerce had arisen concerning the representation of employees of Continental Oil Company, Los Angeles, California, 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 August 23, 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 an investigation and authorized the Regional 37 N. L. R. B., No. 36. 234 CONTINENTAL OIL COMPANY 235' Director to conduct it and to provide for an appropriate hearing upon due notice. On September 12, 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 October 7 and 10, 1941, at Los Angeles, California, before Richard A. Perkins, the Trial Examiner duly designated by the Chief Trial Examiner. 'The Company was represented by counsel and the Union by its representa- tives; all parties participated in the hearing. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evi- dence bearing on the issues was afforded all parties. During the course of the hearing the Trial Examiner made various rulings on motions and on objections to the admission of evidence. The Board has re- viewed the rulings of the Trial Examiner and finds that no prejudicial errors were committed. The rulings are hereby affirmed. Upon the entire record in the case, the Board makes the following : FINDINGS OF FACT, 1. THE BUSINESS OF THE COMPANY Continental Oil Company, a Delaware corporation, is engaged in production operations in Colorado, Illinois, Kansas, Louisiana, Mon- tana, New Mexico, Oklahoma, Texas, and Wyoming. It maintains its principal refinery at Ponca City, Oklahoma, and other refineries in Colorado, Louisiana, Maryland, Montana, New Mexico, Texas; and Wyoming. It owns and operates tankers for transporting oil from Lake Charles, Louisiana, to its refinery at Baltimore, Maryland. The Company owns interstate pipe lines which enter the refineries at Denver, Colorado, and Ponca City, and has an interest in the Great Lakes Pipe Line, an interstate pipe line. It markets gasoline in States west of the Mississippi River,, along the southeast coast, and in the Baltimore area. The California Division of Continental Oil Company, with which this proceeding is concerned, is engaged in California in exploring, acquiring, and leasing lands, and in drilling and producing oil. In 1940 it sold more than 3,792,000 barrels of crude oil; 7,500,000 gallons of natural gas; and 8,900,000 Mcf. of dry gas. Its principal customers for the crude oil were the General Petroleum Corporation of Califor- nia, Standard Oil Company of California, Tidewater Associated Oil Company, and Union Oil Company of California. Its natural gasoline was sold- to the Standard Oil Company of California. The dry gas which it'produced was sold to the Kettleman North Dome Association,' 1 This Association is incorporated , and located , in California . It operates all of its members' properties, pools all of the oil at predetermined percentages, sells it or makes it available for sale, and delivers , when required , to its members' customers. 236 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Pacific Mining Corporation, Seaboard Oil Company of Delaware, Southern California Gas Company, and Standard Oil Company of Cal- ifornia. In September-1941, the California Division produced an average of approximately 8,360 barrels of oil per day in addition to its proportionate share in the daily production of Kettleman North Dome Association, which amounted to approximately 3,635 barrels, and its interest in a so-called "Strand partnership", which amounted to approximately 462 barrels per day. The total production of the California Division in September 1941 amounted to approximately 2 per cent of the oil produced in California? The crude oil which the California Division produces is delivered to the pipe lines of the purchasing companies enumerated above, at the Company's tanks located on its leases. The pipe lines, which pipe off the oil from these tanks, also serve a number of wells owned by other companies, and the oil obtained from the California Division is, in normal course, commingled with other oil. It then proceeds to refineries which are operated by the purchasing companies. They, in turn, sell and deliver substantial quantities of gasoline and other refined products derived from the crude oil to customers in States other than California and in foreign countries. II. THE ORGANIZATION INVOLVED Oil Workers International Union is-a labor organization affiliated with the Congress of Industrial Organizations, admitting to member- ship employees of the Company. III. THE QUESTION CONCERNING REPRESENTATION The Company refused to recognize the Union as the representative of any of its employees until the Board certified'the Union as statu- tory representative. There was introduced in evidence a statement prepared by the Regional Director from which it appears that the Union has substantial representation among the employees of the Company in the unit hereinafter found to be appropriate.' We find that a question has arisen concerning the representation of the Company's-employees. 21n September 1941, the total daily oil production in California amounted to approxi- mately 642 , 515 barrels. 9 The statement shows that the Union submitted 103 membership application cards, all of which appeared to bear genuine original signatures . Thirty of the cards were dated in May 1941, 31 in June 1941 , and 42 in July 1941. Ninety-eight of the signatures repre- sented names of persons appearing on the Company 's July 25 , 1941, pay roll. As of October 3 , 1941, the total number of employees in the claimed unit, excluding clerical and office employees and supervisory employees , was approximately 270. CONTINENTAL OIL COMPANY IV. THE EFFECT OF THE QUESTION CONCERNING REPRESENTATION UPON COMMERCE 237 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 V. THE APPROPRIATE UNIT The parties agree, and we find, that all drillers, relief drillers, der- rickmen, rotary helpers, drilling firemen, head well pullers, well pullers, dehydrator operators, dehydrator pumpers, compressor oper- ators, compressor oilers, pumpers, gang pushers, roustabouts, welders, carpenters, painters, truck drivers, tractor drivers, grader operators, yardmen, laborers, warehousemen, and relief compressor operators in the Los Angeles Basin, Ventura, and San Joaquin districts, compris- ing the California Division of the Company, but excluding super- visory and office and clerical employees and the water well pumper in the Ventura district, constitute a unit appropriate for the purposes of collective bargaining. We also find that such unit will insure to employees of the Company the full benefit of their right to self- organization and to collective bargaining, and otherwise will 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. In accordance with our usual practice, we shall direct that those eligible to vote in the election shall be the em- ployees within the appropriate unit who were employed by the Com- pany during the pay-roll period immediately preceding the date of the Direction of Election, subject to the limitations and additions set forth in the Direction. '+Cf. Matter of Continental Oil Company, a corporation and Oil Workers International Union, Local No. 231, 22 N. L. R. B 61, aff'd as mod ., N. L. R. B. v. Continental Oil Co, 121 F. ( 2d) 120 (C. C. A. 10), wherein the operations of the Company at its Ponca City refinery in Oklahoma were at issue . 1 he Board in its decision pointed out (p. 64, fn. 5) ' At the oral argument, counsel for the respondent stated, "It ( the Continental Oil Company ) is an integrated company It produces oil, owns pipe lines, manufactures gasoline and petroleum products and it markets them. It is engaged in business in approximately 38 States of the Union . There is no question at all but that it is engaged in interstate commerce within the meaning of the Wagner Act." 238 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 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. A question affecting commerce has arisen concerning the repre- sentation of employees of Continental Oil Company, Los Angeles, California, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the National Labor Relations Act. 2. All drillers, relief drillers, derrickmen, rotary helpers, drilling firemen, head well pullers, well pullers, dehydrator operators, de- hydrator pumpers, compressor operators, compressor oilers, pumpers, gang pushers, roustabouts, welders, carpenters, painters, truck drivers, tractor drivers, grader operators, yardmen, laborers, warehousemen, and relief compressor operators in the Los Angeles Basin, Ventura, and San Joaquin districts, comprising the California Division of the Company, excluding supervisory and office and clerical employees and the water well pumper in the Ventura district, 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 Continental Oil Company, Los Angeles, California, 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 Twenty-first Region, acting in this matter as agent for the National Labor Regulations Board, and subject to Article III, Sec- tion 9, of said Rules and Regulations, -among all drillers, relief drillers, derrickmen, rotary helpers, drilling firemen, head well pullers, well pullers, dehydrator operators, dehydrator pumpers, com- pressor operators, compressor oilers, pumpers, gang pushers, rousta- bouts, welders, carpenters, painters, truck drivers, tractor drivers, grader operators, yardmen, laborers, warehousemen, and relief com- pressor operators in the Los Angeles Basin, Ventura, and San Joaquin districts, comprising the California Division of the Company who CONTINENTAL OIL COMPANY 239 were employed by the Company during the pay-roll period immedi- ately preceding the date of this Direction of Election, including em- ployees 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 supervisory and office and clerical employees, the water well pumper in the Ven- tura district, and employees who have since quit or been discharged for cause, to determine whether or not they desire to be represented by Oil Workers International Union, affiliated with the Congress of Industrial Organizations, for the purposes of collective bargaining.