Goldblatt Bros., Inc.

National Labor Relations Board - Board Decisions

Jun 5, 1942

41 N.L.R.B. 741 (N.L.R.B. 1942)

.In the Matter of GOLDBLATT BROS., INC. and OFFICE EMPLOYEES'
UNION No. 20732, A. F. of L.
Cabe No. R-3795-Decided June 5, 1942
'Jurisdiction : general merhandise selling industry.
Investigation and Certification of Representatives : existence of question: re-
fusal to accord petitioner recognition until certified by the Board ; election
necessary.
Unit Appropriate for. Collective Bargaining : all office, clerical, and secretarial
employees and telephone operators at one of Company's warehouses, excluding
superintendents, assistant superintendents, buyers, assistant buyers, depart-
ment and merchandise managers, and all confidential secretaries; unit based
on extent of self-organization. •
Mr. Robert T. Dickman, for the Board.
Pritzker & Pritzker, by Mr. Stanford Clinton, of Chicago, Ill., for
,the Company.
Mr. S. G. Lippman, of Chicago, Ill., for the Union.
Mr. H. G. Moorhead, Jr., of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
Upon petition duly filed by Office Employees' Union No. 20732
(A. F. of L.), herein called the Union, alleging that a question af-
fecting commerce had arisen concerning the representation of em-
ployees of Go1db]att Bros., Inc., Chicago, Illinois, herein called the
Company, the National Labor Relations Board provided for an ap-
propriate hearing upon due notice before Lester Asher, Trial Ex-
aminer. Said hearing was held at Chicago, Illinois, on May 1, 1942.
The Company and the Union appeared, participated, and were
afforded full opportunity to be heard, to examine and cross-examine
witnesses, and to introduce evidence bearing on the issues. The Trial
Examiner's rulings made at the hearing are free from prejudicial
error and are hereby affirmed.
Upon the entire record in the case, the Board makes the following:_
41 N. L., R. B., No. 137.
r 741
742 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
FINDINGS OF FACT
1. THE BUSINESS OF THE COMPANY
Goldblatt Bros.. Inc., is an Illinois corporation having its prin-
,cipal office at Chicago, Illinois. The business of the Company is the
purchase, sale, handling, and distribution of a general line of mer-
chandise.' The Company has, several wholly owned subsidiary cor-
porations. Martin Food Products is a corporation formed upon mer-
ger of Products Corporation of America, a wholly- owned subsidiary
-of the- Company, and Martin Peanut Products, Inc., a wholly owned
-subsidiary. of Products Corporation of America.2 One of the Conl-
Tally's subsidiaries is a New York corporation, which operates `,lind
maintains purchasing offices for the Company-in New York City.
:The Company owns, maintains, and operates 7 department stores
located in- the city of Chicago, Illinois; 1 department store in Joliet,
Illinois; 1 in Gary, Indiana; and 1 in Hammond, Indiana. G. B.
Community Stores, Inc., a wholly owned subsidiary of the Company,
has started' construction work in preparation' for the openilig of a
department store in Milwaukee; Wisconsin. The Company uses ap-
proximately 200 trade-marks, of which 21 are registered with the
United States Patent Office. It acquired these 21 trade-marks upon
applications in which the Company stated that "the trade-mark is
used . . . in commerce among , the, several States of the United
States." -
The present case concerns employees of a warehouse located at 3913
South Wentworth Avenue, Chicago, Illinois. The Company there
carries its "hard" line of merchandise.3 During the fiscal year ending
January 31, 1942, the: Company i,eceived goods valued at $6,182,459
at its Wentworth warehouse. At least 631/3'percent of these goods
1 The -general line of merchandise includes food pioducts , household furnishings and
equipment, furniture , hardware , electrical supplies . plumbing supplies , musical Instruments,
sporting goods , tires , automobile accessories , 'drugs, cosmetics , di y goods, toilet goods,
books, stationery , luggage, wearing apparel, and other articles ,, materials. pioducts, com-
modities, and merchandise
8 Products Corporation of America for the period January 1, 1941, to January 31, 1942,
made gi oss sales of, approximately $321,000 in amount. Of such sales, approximately
$119,000 were made to the Company and approximately $202,000 were made to other
,persons .` Of the $202,000 of 'sales , approximately $95,000 represented sales for shipment
to persons outside the State of Illinois During the same period Products Corporation
of America purchased law materials valued at $237,000, and approximately 66 percent
rot such purchases weie made , outside the State of Illinois and delivered to it in Illinois.
Martin Peanut Products Inc, during the same period , made gross sales approximating
$85,000 in -amount , $4,500 to the Company and $80 500 to other purchasers. Of the
$80,500, ' approximately $49,000 represented . sales for shipment to persons outside the
State of Illinois ; it purchased raw materials of the approximate value of $76 ,000, and
approximately 50 percent of such purchases were made outside the State of Illinois
and delivered in Illinois . - I-' I I ;
3 The line includes furniture , mayor electrical appliances . radios , sewing machines, toys,
lamps, paints , jewehy, lugs , and linoleums , spoiting goods, venetian blinds , auto acces-
sories, electrical supplies , pots and pans, plumbing and heating materials and equipment,
dishes and vending machines
G'OLD'BLATT BROS., INC. 743
were shipped to the Wentworth warehouse from points outside the
-State of Illinois. During the same period the Company shipped from
its Wentworth warehouse' goods valued at $5,585,583.47, and of these
goods amounts totaling a value of $1,100,000 were shipped to points
outside the State of Illinois. The Company ships by boat, railroad,
and truck, and operates appr*oximately 210 trucks,' trailers, and
tractors.
We find, upon the entire record, and contrary to the contention of
the Company, that the Company is engaged in commerce within the
meaning of the National Labor Relations Act.4
II. THE ORGANIZATION INVOLVED
Office Employees' Union No. 20732 is a labor, organization affiliated
with ,the American Federation of Labor, admitting to membership
employees of the Company.
III. THE QUESTION- CONCERNING REPRESENTATION
Oneor abort larch-,11,;1942, the, Company refused to recognize the
Union as a bargaining representative of its employees except upon
,certification by the Board.
A statement of the Acting Regional, Director for the Thirteenth
Region indicates that the Union represents a substantial number of
employees in the unit herein found appropriate 5
We find that a question affecting commerce has arisen concerning
.the representation of employees of the.Comp4ny. withinjhe,mean1ing
of Section 9 (c) and Section 2 (6) and (7) of the National Labor
Relations Act.
IV. THE APPROPRIATE UNIT
The Union contends that all office, clerical, and secretarial em-
ployees and telephone operators employed at the Company's Went-
' In Fleming v Goldblatt Btoe , Inc. , 39 Fed Stipp . 701, the United States District
Court for the Northern District of Illinois held that certain warehouse employees of the
Company were not engaged iii interstate commerce , but noted in its opinion that the
Fair Labor Standards Act, which was therein involved, does not base jurisdiction upon
transactions "affecting" interstate commerce , as does the National Labor Relations Act.
See and compare Tine Coinpaniy v N. L. R. B., 7th Circuit, 125 F., (2d) 832; Fleming v.
Alterman,' 38 F. Supp. 94
"The Acting Regional Director reported that he had examined a pay roll furnished
him by the Company and that the pay roll included the names of 69 employees who were
in the unit proposed by the Union in its petition. He reported that union application
cards with apparently genuine and original signatures were presented for 35 of these
employees . During the course of the.bearing the Union amended its petition to exclude
from the unit proposed in its petition , employees classified as confidential secretaries ;
there are 7 employees so classified ,' and excluded , ^as is'hereinafter found. If the report
is corrected : to conform to -the amendment , taking ' into ` ^ consideration ^ iincontroverted-
testimony which establishes that none of the 7' confidentiall ,secretaries are, fepresented
by the Union , the report will then indicate that the Union represents 35 employees
whose names appeared on the pay roll and that there are 62 employees in the unit
herein found appropriate.
'744 DECISIONS OF NATIONAL •LAB4R RELATIONS BOARD
worth warehouse in Chicago, excluding superintendents, -assistant
,superintendents, buyers, assistant buyers, department and merchan-
dise managers, and all, confidential secretaries, constitute an appro-
priate unit. The Company contends that similar categories of
employees at its Wolcott warehouse, in Chicago, should also be in-
cluded in the unit, and disagrees with the Union as to which of its
employees should be excluded as "confidential" secretaries.
In, support of its contention that the unit should comprise em-
ployees of both warehouses the Company asserted that it plans during
the next autumn or winter to merge the office employees of both ware-
houses and to move them to offices located in premises it has leased
for the purpose, and that-it plans after the war to erect a building
,which will house as well as provide working quarters for both groups.
'The' Company has already, established a centralized personnel control
over the employees of both warehouses, but executives at-the Went-
worth warehouse retain substantial control 'over the employees,, work-
ing under them, , particularly with respect- to discharging such
employees. Witnesses called by the Company testified that duties,
working conditions, and wages of office employees at Wolcott and at
Wentworth' are similar. The Company transfers individual em-
ployees and working units of employees, not only between these
`two warehouses but, also to and from other places of business it
maintains in Chicago.
On the other hand; the 2 warehouses are physically separated by
a distance of approximately 2 miles. The office employees at Wol-
cott; between 250 and 300 in number, are not represented by any labor
organization and the Union has not attempted to organize them."
Although the evidence offered by the Company tends to prove that the
office employees at both warehouses might appropriately be repre-
sented in a single unit by a union petitioning to so represent
them, in cases of this character we follow the practice of finding ap-
propriate a unit. which corresponds to the extent of employee self-
organization.' We shall include only, the office employees at
Wentworth warehouse in the appropriate unit. -
The Union and the Company differ as to what employees are to
be classified as "confidential" secretaries and to be excluded as such
from the unit. The Union contends that seven secretaries who are
e The Union 's organizer testified that because warehousemen at Wentworth belong to
a union affiliated with the A F of L, as is the Union, whereas warehousemen at Wolcott
belong to a union affiliated with the C. 1. 0., the Union abstained ' from attempting to
organize the office employees at Wolcott lest it cause an inter -union conflict , contrary
to war policy.
7 See Matter of Richmond Greyhound Lines, Inc., and A . A. S. B. R . M. E., Division 1247,
A. F. of L., 37- N. L. R. B. 818 , 820; Matter, of Brown Paper Goods Co. and United Paper
Novelty & Toy -Workers, 34 N L . It. B. 743.
GOLDBLATT BROS., 'rxc. 745
assigned to company executives and 'have respective ' desks within the
separate private offices of the executives are to be so excluded. It
contends that the duties of these secretaries would place them in a
position of divided loyalties, should a labor dispute arise between the
Company and the Union. It does not admit to membership employee's
who perform such duties and it has not attempted to organize these
seven" secretaries.' The Company contends that these seven secre-
taries and others also are alike entrusted with information which is
confidential in that revealing such information would damage the
Company in its business. It offered evidence in support, of this con-
tention, but did not offer evidence directed to the Union's contention
that these seven secretaries come into possession of information which
is confidential with respect to matters of personnel and labor policy 8
and that these seven would be placed in a position of divided loyalties
should a labor dispute arise.' 'Since the Company was in control
of the evidence which would prove or refute the Union's contention,
but did not offer such evidence at the hearing, we find, in accordance
with the contention of the Union, that the seven desci ibed- secretaries
should' 'b6 excluded-from the unit as'confidential secretaries.
We find that all office, clerical, and,secretarial employees and tele-
phone operators employed by.the Company at its Wentworth ware=
house, Chicago, Illinois, excluding superintendents, assistant super-
intendents, buyers, assistant 'buyers, department and merchandise
managers, and all confidential secretaries, to wit,"seven secretaries who
work at desks within the private offices,of executives to whom they
are severally assigned, constitute a unit appropriate for the purposes
of collective bargaining within the meaning of Section 9'(b) of the
Act.
V. THE DETERMINATION OF REPRESENTATIVES
We shall direct that the question concerning representation which
has arisen be resolved by an election by secret ballot. Although the
Union contends that eligibility to vote should be determined by ref-
erence to a pay roll of the Company on or about March 9, 1942, we
shall follow our usual practice and shall direct that the employees
of the Company eligible to vote in the election shall be those in the
appropriate unit who were employed during the pay-roll period im-
mediately preceding the date of the Direction of Election herein,
subject to the limitations and additions set forth in the Direction.
8 The Company Introduced evidence concerning the duties of its personnel staff, but
did not introduce evidence as to whether or not the seven executives under whom the
secretaries work participate in the determination of labor policy at Wentworth
8 See Matter of E P Dutton & Co , Inc and Book and Magazine Guild , Local 18, 33
N I. R B 761, and cases cited therein, footnote 8
746 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
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 to ascertain represent-
atives for the purposes of collective bargaining with Goldblatt Bros.,
Inc., Chicago, Illinois, an election by secret ballot shall be conducted
as early as possible, but not later than thirty (30) days from the
date of this Direction, under the direction and supervision of the
Regional Director for the Thirteenth 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
employees in the unit found appropriate in Section IV above, during
the pay-roll period immediately preceding the date of this Direction,
including any such employees who did not work during such pay-
roll period because they were ill or on vacation or in the active mili-
tary service or training of the United States or temporarily laid off,
but excluding any who have since quit or been discharged for cause,
to determine whether or not they desire to be represented by Office
Employees' Union No. 20732 (A. F. of L.) for the purposes of
collective bargaining.
MR. GERARD D. REILLY took no part in the consideration of the
above Decision and Direction of Election.