Life Insurance Co. of Virginia

In the Matter of LIFE INSURANCE COMPANY OF VIRGINIA, BRANCH OFFICE, ROANOKE, VIRGINIA and AMERICAN FEDERATION OF INDUSTRIAL & ORDINARY INSURANCE AGENTS' UNION No. 22857 OF ROANOKE, VIRGINIA In the Matter of THE LIFE INSURANCE CO. OF VIRGINIA, TOLEDO, OHIO and AMERICAN FEDERATION OF INDUSTRIAL & ORDINARY INSURANCE AGENTS' UNION No. 22832 In the Matter of LIFE INSURANCE COMPANY OF VIRGINIA; BRANCH OFFICE, SAVANNAH, GEORGIA and AMERICAN FEDERATION OF INDUS- TRIAL & ORDINARY INSURANCE AGENTS' UNION No. 22802 OF SAVANNAH, GEORGIA , In the Matter of LIFE INSURANCE COMPANY OF VIRGINIA, BRANCH OFFICE, ANDERSON, INDIANA and AMERICAN FEDERATION OF INDUSTRIAL & ORDINARY INSURANCE AGENTS' UNION No. 22872 In the Matter of LIFE INSURANCE COMPANY OF VIRGINIA, BRANCH OFFICE, GREENVILE, SOUTH CAROLINA and AMERICAN FEDERATION OF INDUSTRIAL & ORDINARY INSURANCE AGENTS' UNION NO. 22870 In the Matter of LIFE INSURANCE COMPANY OF VIRGINIA, BRANCH OFFICE, NEW ORLEANS AND ALGIERS, LA. and AMERICAN FEDERATION OF INDUSTRIAL & ORDINARY INSURANCE AGENTS' UNION No. 22873 In the Matter of LIFE INSURANCE' COMPANY OF VIRGINIA, BRANCH OFFICE, LYNCHBURG, VIRGINIA and AMERICAN FEDERATION OF INDUS- TRIAL & ORDINARY INSURANCE AGENTS' UNION No. 22947, LYNCHBURG, VIRGINIA, AFFILIATED WITH AMERICAN FEDERATION OF LABOR In the Matter of I= INSURANCE COMPANY OF VIRGINIA, BRANCH OFFICE, AUGUSTA, GEORGIA and AMERICAN FEDERATION OF INDUSTRIAL & ORDINARY INSURANCE AGENTS' UNION No. 22902 Cases Nos. R 3259 to R-3366, respectively-Decided January 3, 1942 Jurisdiction : life insurance business. Investigation and Certification of Representatives : existence of questions: Company and union agree that question be submitted to Board ; election necessary. Units Appropriate for Collective Bargaining : debit collectors in eight district offices excluding district managers, assistant district managers, office and clerical employees, and inspectors constitute eight separate units. 38 N. L. R. B., No. 5. 20 LIFE INSURANCE- COMPAKY OF VIRGINIA 21 Mr. Elgin Hardin, for the Board. Mr. Sidney J. Hilton and Mr. William R. Sh,ands, of Richmond, Va., for the Company. Mr. ,George ,L. Russ, of Washington, D. C., for the A. F. of L., the Council, and the Unions. Mr. Wm. F. Scharnikow, of counsel to the Board. DECISION AND DIRECTION OF ELECTIONS STATEMENT OF THE CASE On various dates between July 25, and September 29, 1941, Ameri- can Federation of Labor, herein called the A. F. of L., Industrial & Ordinary Insurance Agents' Council, affiliated with the American Federation of Labor, herein called the Council, and three locals of the American Federation of Industrial & Ordinary Insurance Agents' Union, affiliated with the American Federation of Labor, herein col- lectively called the Unions and individually referred to by their local union numbers, filed petitions, totalling eight in number, with the Regional Directors for the Fifth, Eighth, Tenth, Eleventh, and Fifteenth Regions.' The petitions alleged that questions affecting commerce had arisen concerning the representation of employees of the Life Insurance Company of Virginia, Richmond, Virginia, herein called the Company, in its district offices at Roanoke, Virginia ; 2 at Toledo, Ohio; 3 at,Savannah, Georgia;' at Anderson, Indiana; 5 at Greenville, South Carolina; 6 at Algiers and New Orleans, Louisi- ana; 7 at Lynchburg, Virginia; 8 and at Augusta, Georgia,9 respec- 1 Baltimore, Maryland ; Cleveland, Ohio ; Atlanta, Georgia ; Indianapolis , Indiana ; and New Orleans , Louisiana, respectively . See footnotes 2 to 9, inclusive, below 2 Case No. R-3259, on petition of Union No . 22857 of Roanoke, Virginia , filed with the Regional Director for the Fifth Region on August 4, 1941. 3 Case No R-3260, on petition of the A F. of L filed with the Regional Director for the Eighth Region on July 25 , 1941. Transferred to the Fifth Region on August 8, 1941. * Case No R-3261, on petition of Union No . 22802 of Savannah , Georgia, filed with the Regional Director for the Tenth Region on August 4 , 1941. Transferred to the Fifth Region on August 13, 1941. 6 Case No. R-3262 , on petition of the Council , filed with the Regional Director for the Eleventh Region on August 20 , 1941 . Transferred to the Fifth Region on September 3, 1941. e Case No. R-3263, on petition of the Council , filed with the Regional Director for the Tenth Region on August 18, 1941. Transferred to the Fifth Region' on September 5, 1941. 7 Case No. R-3264, on petition of the Council , filed with the Regional Director for the Fifteenth Region on September 12, 1941. Transferred to the Fifth Region on September 22, 1941. 8 Case No R-3265, on petition of Union No . 22947, Lynchburg , Virginia , filed with the Regional Director for the Fifth Region on September 29, 1941 9 Case No. R-3266, on petition of the Council , filed with the Regional Director for the Tenth Region on September 6, 1941 . Transferred to the Fifth Region on October 18, 1941. 22 DECISIONS OF NATIONAL LABOR RELATIONS BOARD tively, and requested an investigation and certification of representatives in each case pursuant to Section 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. Thereafter, the National Labor Relations Board, herein called the Board, acting pursuant to Article III, Section 10 (c) (3), of National Labor Relations Board Rules and Regulations-Series 2, as amended, ordered that the cases upon the petitions filed with the Regional Direc- tors for the Eighth, Tenth, Eleventh, and Fifteenth Regions 10 be transferred to, and continued in, the Fifth Region. On October 10, and 27, 1941, the Board, acting pursuant to Sec- tion 9 (c) of the Act and Article III, Section 10 (c) (2), of National Labor Relations Board Rules and Regulations-Series 2, as amended, ordered the Regional Director for the Fifth Region to conduct an investigation and to provide for an appropriate hearing upon due notice, and further ordered that the cases be consolidated. On October 30, 1941, the Regional Director for the Fifth Region issued a notice of hearing, copies of which were duly served upon the Company, the A. F. of L., the Council, and the Unions. Pursu- ant to the notice, a hearing was held on November 7, 1941, at Rich- mond, Virginia, before Malcolm A. Hoffmann, the Trial Examiner duly designated by the Chief Trial Examiner. The Company, the A. F. of L., the Council and the Unions were represented by counsel and participated in the hearing. Full opportunity to be heard, to examined and cross-examine witnesses, and to introduce evidence bear- ing on the issues was afforded all parties. At the hearing, the Trial Examiner, on motions of the A. F. of L., the Council, and the Unions, the Company expressly stating that it had no objection, permitted American Federation of Industrial & Ordinary Insurance Agents' Unions Nos. 22832, 22872, 22870, 22873, and 22902, herein also collectively called the Unions and individually referred to by their local union numbers,. to be substituted for the A. F. of L. in Case No. R-3260, and for the Council in Cases Nos. R-3262, R-3263, R-3264, and R-3266, respectively.- On the motion of the Company, and with the consent of the Unions, the petition in Case No. R-3260 was amended by substituting "debit collectors" for "all salesmen" in designating the unit therein alleged to be appropriate.'-' The Trial Examiner also made certain rulings on-objections to the admission of evidence. The Board has reviewed all the rulings of the Trial Examiner and finds that no prejudicial errors were com- mitted. The rulings are hereby affirmed. - 10 See footnotes 3, 4, 5, 6, 7, and 9 above. n See footnotes 3, 5, 6, 7, and 9 above. 12 The other petitions described the unit sought as consisting of "debit collectors," which the parties at the hearing agreed was the generally accepted description of the employees involved herein. LIFE INS'UR'ANCE COMPANY OF VIRGINIA 23 At the hearing, the Company moved to dismiss the petitions herein on jurisdictional grounds. The Trial Examiner referred the motion to the Board for appropriate action. The 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 Life Insurance Company of Virginia is a Virginia corporation having its principal office, herein called the home office, in Richmond. Virginia. It is engaged in the writing of ordinary and weekly pre- mium insurance on the lives of its policyholders and in investing its funds. It 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 in- surance and claims, applications for loans, and other matters per- taining 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, of which approximately 16.1 per cent by number and 13.7 per cent by amount were in force in the district offices involved herein. Its assets aggregated $111,- 021,357.28, represented for the greater part by $3,172,112.64 in cash deposited in 123 banks and trust companies located in 18 States and the District of Columbia; by bonds of a value of $50,553,434.93 in- cluding $11,346,336.76 in public utility bonds, and $10,796,678.16 in railroad and industrial bonds; by stocks of a value of $4,057,410.79, consisting mostly of preferred stocks of railroads, public utilities, industrial and miscellaneous companies; and by real estate mortgages in the sum of $33,034,380.63. During 1940, the Company .purchased securities from companies located in 7 States and the District of Columbia, which securities were delivered to it at its home office. During the same year, the Company purchased furniture, fixtures and mechanical equipment valued at $19,460.67, of which about one- sixth was shipped to its district offices in States other than Virginia and in the District of Columbia, and paper and other stationery sup- plies valued at $62,249.59, 37 per cent of which was distributed among the various district offices of the Company. Of approximately 15,000 24 DECISIONS OF NATIONAL LABOR RELATIONS BOARD pounds of stationery and material so purchased each year, approxi- mately 78 per cent is shipped to district offices of the_ Company out- side the State of Virginia. In 1940, the Company spent $42,292.56 'for postage and for telephone, telegram, and express service and $21,277.70 for the traveling expenses of its agency supervisors.13 The present proceeding involves approximately 149 debit collec- tors employed by the Company in eight of its district offices, to solicit and write life insurance (including annuities and endowments), to be issued by the Company, and to collect the premiums on, and other- wise to service the policies so written. - II. THE ORGANIZATIONS INVOLVED American Federation of Industrial & Ordinary Insurance Agents' Unions, Nos. 22857 of Roanoke, Virginia, 22832, 22802 of Savannah, Georgia, 22872, 22870, 22873, 22947, and 22902 are labor organizations affiliated with the American Federation of Labor, admitting to mem- bership employees of the Company. III. THE QUESTIONS CONCERNING REPRESENTATION The Council and various American Federation of Industrial & Ordi- nary Insurance Agents' Unions have, on a number of occasions, been refused recognition by the Company as the exclusive bargaining agents of debit collectors employed by the Company in district offices other than those here involved until representatives were certified by the Board.14 The instant proceedings were instituted pursuant to agree- ment reached by the Council, the Unions, and the Company, as a matter of policy, that whenever the Council and Unions or any of them claimed recognition as the exclusive bargaining agent for any of the Company's debit collectors such claims should be resolved in a proceed- ing before the Board. At the hearing, statements prepared by the Regional Director for the Fifth Region were introduced' in evidence showing that each of `8A detailed statement of the widespread and diverse nature of the Company's invest- ment business, the structure and the general operation of the Company, and its use of the instrumentalities of interstate transportation and communication may be found in Matter of The Life Insurance Company of Virginia and American Federation of Industrial and Ordinary Insurance Agents' Union No. 22164, 31 N. L. R. 13, No. 111, a prior proceed- ing in which the Company was involved. The Company has agreed that the evidence and the contents of stipulations concerning its business, which were submitted in the prior proceeding may be considered in the present proceeding. 14 The Company in each instance questioned the applicability of the Act and majority representation by the Unions. Matter of Life Insurance Company of Virginia and The American Federation of Industrial and Ordinary Insurance Agents Union No. 22264, et als., 29 N. L. R B, No. 44, and Matter of The Life Insurance Company of Virginia, Richmond, Va. and American Federation of Industrial and Ordinary Insurance Agents Union No. 22164, Richmond, Va., et at., 31 N. L. R. B., No. 111. LIFE INSURANCE COMPANY OF VIRGINIA 25 the Unions represents a substantial number of the, Company's em- ployees in the unit requested by it and hereinafter found to be appropriate.'-' - 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 obstructing commerce and the free flow of commerce. V. THE APPROPRIATE UNITS Contrary to the argument of the Company, we find, as we have previously found and upon the same basis, that its debit collectors are employees within the meaning of Section•2 (3) of the Act. 16 As to the appropriate units, the Unions contend, the Company does not object thereto, and we find that the debit collectors employed by the Company in its district offices in' (1) Roanoke, Virginia (2) Toledo, Ohio (3) Savannah, Georgia , (4) Anderson, Indiana • (5) Greenville, South Carolina (6) Algiers and New Orleans, Louisiana (7) Lynchburg, Virginia • (8). Augusta, Georgia ' excluding district managers, assistant district managers, 'office and clerical employees, and inspectors, constitute eight separate units appropriate 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 otherwise effectuate the policies of the Act. • • 11 The Unions submitted 76 applications for membership in an A. F of L. union and 44, applications for membership in the Council With one exception, each application bore the apparently genuine signature of a debit collector listed on an August, September, or October 1941 pay roll of one of the district offices involved. The applications account for 119 of the total of 149 debit collectors at all such district offices, and for a majority of the debit collectors at each district office. • , V 11 See cases cited, footnote 14, above. 26 DECISIONS OF NATIONAL LABOR RELATIONS BOARD VI. THE DETERMINATION OF REPRESENTATIVES We find that the questions which have arisen concerning the repre- sentation of employees of the Company can best be resolved by elec- tions 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 pay-roll periods next preceding the date of the Direction of Elections herein, subject to the limitations and additions 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 repre- sentation of employees of Life Insurance Company of Virginia, Rich- mond, Virginia, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the Act. - 2. The Company's debit collectors are employees, within the mean- ing of Section 2 (3) of the Act. 3. The debit collectors employed by the Company in its district offices in (1) Roanoke, Virginia (2) Toledo, Ohio (3) Savannah, Georgia (4) Anderson, Indiana (5) Greenville, South Carolina- (6) Algiers and New Orleans, Louisiana (7) Lynchburg, Virginia (8) Augusta, Georgia excluding district managers, assistant district managers, office and clerical employees, and inspectors, constitute eight separate units ap- propriate for the purposes of collective bargaining within the meaning of Section 9 (b) of the Act. 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 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 investigations authorized by the Board to ascertain representatives for the purposes of collective bargaining LIFE INSIU'R'ANC'E COMPANY OF VIRGINIA 27 with Life Insurance Company of Virginia, Richmond, Virginia, sepa- rate elections 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 (a) The debit collectors who worked for the Company in its dis- trict office in Roanoke, Virginia, during the pay-roll period next pre- ceding the date of this Direction, 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 district managers, assistant district managers, office and clerical employees, and inspectors, and those em- ployees who have since quit or been discharged for cause, to deter- mine whether or not they desire to be represented by American Federa- tion of Industrial & Ordinary Insurance Agents' Union No. 22857 of Roanoke, Virginia, affiliated with the American Federation of Labor, for the purposes of collective bargaining; (b) The debit collectors who worked for the Company in its district office in Lynchburg, Virginia, during the pay-roll period next preced- ing the date of this Direction, 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 tempo- rarily laid off, but excluding district managers, assistant district managers, office and clerical employees, inspectors, and those employees who have since quit or been discharged for cause, to determine whether or not they desire to be represented by American Federation of Indus- trial & Ordinary Insurance Agents' Union. No. 22947, Lynchburg, Virginia, affiliated with the American Federation of Labor, for the purposes of collective bargaining. 2. Under the direction and supervision of the Regional Director for the Eighth-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 who worked for the Company in its district office in Toledo, Ohio, during the pay-roll period next preceding the date of this Direction, 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 district managers, assistant district managers, office and clerical employees , and inspectors, and those employees who have since quit or been discharged for cause, to determine whether or not they desire to be represented by American 28 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Federation of Industrial & Ordinary Insurance Agents' Union No. 22832, affiliated with the American Federation of Labor, for the purposes of collective bargaining. 3. 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 (a) The debit collectors who worked for the Company in its district office in Savannah, Georgia, during the pay-roll period next preceding the date of this Direction, 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 tempo- rarily laid off, but excluding district managers, assistant district man- agers, office and clerical employees, and inspectors, and those employees who have since quit or been discharged for cause, to determine whether or not they desire to be represented by American Federation of In- dustrial & Ordinary Insurance Agents' Union No. 22802 of Savannah, Georgia; affiliated with the American Federation of Labor, for the purposes of collective bargaining; (b) The debit collectors who worked for the Company in its district office in Greenville, South Carolina, during the pay-roll period next preceding the date of this Direction, 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 district managers, assist- ant district managers, office and clerical employees, and inspectors, and those employees who have since quit or been discharged for cause, to determine whether or not they desire to be represented by American Federation of Industrial & Ordinary Insurance Agents' Union No. 22870, affiliated with the American Federation of Labor, for the purposes of collective bargaining; (c) The debit collectors who worked for the Company in its district office in Augusta, Georgia, during the pay-roll period next preceding the date of this Direction,, 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 tempo- rarily laid off, but excluding district managers, assistant district man- agers, office and clerical employees, and inspectors, and those employees who have since quit or been discharged for cause, to determine whether or not they desire to-be represented by American Federation of Indus- trial & Ordinary Insurance Agents' Union No. 22902, affiliated with the American Federation of Labor, for the purposes- of collective bargaining; LIFE INs ANCD COMPANY OF VIRCANIA 20 4. Under the direction and supervision of the Regional Director for the Eleventh 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 who worked for the Company in its district office in Anderson, Indiana, during the pay-roll period next preceding the date of this Direction, including employees who did not work during such pay-roll period' because they were ill or on vacation or in the active military service of the United States, or temporarily laid off, but excluding district managers, assist- ant district managers, office and clerical employees, and inspectors, and those employees who have since quit or been discharged for cause, to determine whether or not they desire to be represented by American Federation of Industrial & Ordinary Insurance Agents' Union No. 22872, affiliated with the American Federation of Labor, for the purposes of collective bargaining; 5. Under the direction and supervision of the Regional Director for the Fifteenth 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 who worked for the Company in its district office in Algiers and New Orleans, Louisi- ana, during the pay-roll period next preceding the date of this Direc- tion, 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 district managers, assistant district managers, office and clerical employees, and inspectors, and those employees who have since quit or been discharged for cause, to determine whether or not they desire to be represented by American Federation of Industrial & Ordi- nary Insurance Agents' Union No. 22873, affiliated with the American Federation of Labor, for the purposes of collective bargaining.