California State Automobile Association

National Labor Relations Board - Board Decisions

Mar 28, 1968

170 N.L.R.B. 844 (N.L.R.B. 1968)

844 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
California State Automobile Association and Chauf-
feurs, Teamsters , and Helpers Local No. 150, In-
ternational Brotherhood of Teamsters , Chauf-
feurs , Warehousemen and Helpers of America,
Petitioner . Case 20-RC-7775
March 28, 1968
DECISION ON REVIEW
BY MEMBERS BROWN, JENKINS, AND ZAGORIA
On November 29, 1967, the Regional Director
for Region 20 issued a Decision and Direction of
Election attached hereto, in the above-entitled
proceeding, in which he found appropriate a unit of
licensed salesmen employed at the Employer's
Sacramento and Carmichael, California, district of-
fices. Thereafter, the Employer filed a timely
request for review of the Regional Director's Deci-
sion, contending that the National Labor Relations
Board lacks jurisdiction in this case, that if it has ju-
risdiction the Board should decline to assert ju-
risdiction, or that if the Board asserts jurisdiction,
the only appropriate unit should include licensed
salesmen employed at all of the Employer's district
offices in California and Nevada.
On January 8, 1968, the Board by telegraphic
order granted the request for review and stayed the
election pending decision on review. Thereafter,
the parties filed timely briefs on review.
Pursuant to the provisions of Section 3(b) of the
National Labor Relations Act, as amended, the Na-
tional Labor Relations Board has delegated its
powers in connection with this case to a three-
member panel
The Board has considered the entire record in
this case with respect to the issues under review, in-
cluding the briefs of the parties, and hereby affirms
the Regional Director's Decision. For the reasons
set forth by the Regional Director in his Decision,
we agree that the Employer is engaged in com-
merce within the meaning of the Act and that it will
effectuate the purposes of the Act to assert jurisdic-
tion herein. We likewise agree, upon review of the
record, that the Employer's licensed salesmen at its
two district offices in Sacramento County con-
stitute an appropriate unit.
Accordingly, this case is hereby remanded to the
Regional Director for Region 20 for the purpose of
holding an election pursuant to his Decision and
Direction of Election, except that the payroll
period for determining eligibility shall be that im-
mediately preceding the date below.'
' A corrected election eligibility list, containing the names and addres-
sees of all the eligible voters, must be filed by the Employer with the Re-
gional Director for Region 20 within 7 days after the date of this Decision
on Review The Regional Director shall make the list available to all parties
170 NLRB No. 106
to the election No extension of time to file this list shall be granted by the
Regional Director except in extraordinary circumstances Failure to
comply with this requirement shall he grounds for setting aside the election
whenever proper objections are filed Etcelswr Underss ear inc , 156 NLRB
1236
DECISION AND DIRECTION OF ELECTION
Upon a petition duly filed under Section 9(c) of
the National Labor Relations Act, a hearing was
held before a hearing office of the National Labor
Relations Board. The hearing officer's rulings made
at the hearing are free from prejudicial error and
are hereby affirmed.
Pursuant to the provisions of Section 3(b) of the
Act, the Board has delegated its powers in connec-
tion with this case to the Regional Director.
Upon the entire record in this case, the Regional
Director finds:
1. The Employer is engaged in commerce within
the meaning of the Act and it will effectuate the
purposes of the Act to assert jurisdiction herein.'
' The Employer, an automobile club, is a nonprofit California corpora-
tion with its principal office in San Francisco and branch offices located
throughout Northern California and two in Nevada Its principal function is
to provide its members with certain services including travel information,
maps, tour books, making reservations, emergency road, licensing, and
traffic citation It also engages in the sale of automobile insurance During
1966, receipts from the membership sales exceeded $500,000 During the
same period, it purchased and received maps and other materials valued in
excess of $50,000 from the American Automobile Association in Washing-
ton, D C , with which it is affiliated The Employer asserts that the Board
lacks jurisdiction over its operations since it is a nonprofit organization and
therefore could not have an impact on interstate commerce The Employer
contends alternatively, that, even if the Board has jurisdiction over its
operations, it should decline to assert it
The record disclosed that members of the Employer are entitled to
purchase automobile insurance through the California State Automobile
Association Inter-Insurance Bureau, herein called 116 11B is a reciprocal
company licensed under the laws of the State of California to sell in-
surance Like the Employer, it is also a nonprofit business entity It is per-
mitted to sell insurance only to members of the Employer, however, mem-
bers of the Employer are not required to purchase insurance through the
I1B IIB insurance is sold only by employees of the Employer and IIB in-
surance claims are handled by claims adjusteis who are also employed by
the Employer Premiums from the sale of 11B insurance policies are in ex-
cess of $60 million per year Premium payments are made directly to the
Employer and then transmitted to the iiB accounting department IIB reim-
burses the Employer for the value of services rendered by claims adjusters
and office clerical employees the directors and officers of the Employer
and 118 are substantially the same The general manager of the Employer
and 11B is the saute individual who is in charge of personnel matters for
both entities
While the Board has declined to assert jurisdiction where the activities of
an organization are noncommercial and intimately connected with charita-
ble or educational activities, where a nonprofit organization has engaged in
activities commercial in nature, the Board will assert jurisdiction Lovelace
Foundation for Medical Education and Research, 165 NLRB 743, Woods
Hole Oceanographic Institution , 143 NLRB 568, Labor Relations Conin fis-
sion of the Comnionuealth of Massachusetts, 138 NLRB 1329, The
Westchester Corporation, 124 NLRB 194 In the instant case it is clear that
the activities of the Employer, although nonprofit, are of a commercial na-
ture Moreover, the Employer is in business for neither an educational nor
a charitable purpose The selling of memberships and the providing of
travel services to its members are clearly commercial The sale of IIB in-
surance exclusively by employees of the Employer to only its members
further underscores the commerical nature of the business As the Em-
ployer's operations meet both the Board's retail and nonretail standards, it
is found that the Employer is engaged in commerce within the meaning of
the Act, and that it will effectuate the purposes of the Act to assert jurisdic-
tion over its operations
CALIFORNIA STATE AUTOMOBILE ASSOCIATION 845
2. The labor organization, involved claim(s) to
represent certain employees of the Employer.
3. A question affecting commerce exists con-
cerning the representation of certain employees of
the Employer within the meaning of Section
9(c)(1) and Section 2(6) and (7) of the Act.
4. The following employees of the Employer
constitute a unit appropriate for the purposes of
collective bargaining within the meaning of Section
9(b) of the Act:'
All licensed salesmen of the Employer at its
Sacramento and Carmichael, Californai, Dis-
trict Offices, excluding all other employees,
claims adjusters, office clerical employees,
professional employees,' guards and super-
visors4 as defined in the Act.
[Direction of Election' omitted from publica-
tion. ]
2 Petitioner seeks an election in a unit composed of all of the Employer's
licensed salesmen in its Sacramento and Carmichael district offices Alter-
natively, the Petitioner seeks to represent the licensed salesmen at the two
named district offices in separate units The Employer contends that the
only appropriate unit consists of all licensed salesmen at all of its offices in
Northern California and Nevada There is no history of collective bargain-
ing covering the employees sought herein
The Employer's general manager, whose office is located at the principal
office in San Francisco principal office in San Francisco, is in charge of the
overall operations of the Employer. Under him, and also at the San Fran-
cisco office, are a business manager and various department managers, in-
cluding a manager of field operations The latter , along with his assistant, is
in charge of the district offices Each district office has a district office
manager who supervises the personnel in his respective office The district
offices also have a sales manager who is in charge of sales representatives, a
claims supervisor who supervises the claims adjusters and an office super-
visor who is in charge of the office clerical employees In addition to the
above, there is an attorney assigned to each office
Sales meetings under the direction of the assistant manager of field
operations are generally held twice a year with salesmen from the district
offices being brought to a centralized location Various company records
including payroll records and district manager reports on various aspects of
sales and financial reports are kept at the San Francisco office The San
Francisco headquarters also establishes the "quotas" that salesmen are ex-
pected to maintain
The general overall labor relations policy of the Employer is established
by a committee of the Board of Directors However, the district managers
are authorized to hire employees within their own allowable budget and to
terminate at their discretion those who have been on the payroll for less
than 5 years After an employee has been on the payroll for a period of 5
years, the district managers discuss and recommend potential terminations
with the department of field operations The district managers also have
discretion to grant wage increases subject to their district budgets and a sa-
lary schedule , both of which are determined by management officials in
San Francisco
The distract offices at Sacramento and Carmichael are but a few miles
apart and are the only offices in Sacramento County While salesmen in
both of these offices have a defined area to service , they are permitted to
make sales anywhere in the Sacramento area without penalty Further, they
are permitted to make sales to nonresidents of Sacramento County pro-
vided they are engaged in business within the County However, if they
make a sale outside Sacramento County , they are not eligble for a renewal
sale
While there are factors in the case that would indicate an overall unit
may be appropriate , they are not so compelling as to require a finding that
it is the only appropriate unit Thus it is noted that the district offices func-
tion essentially as distinct entities covering a defined geographical area,
their day-to-day supervision is by the district manager , salesmen in each of-
fice enjoy similar benefits and working conditions and provide services to
customers located in the same geographical area; and interchange among
offices appears to be insubstantial While these factors also indicate the ap-
propriateness of single district office units, the Board has held that a unit
composed of two district offices may also be appropriate if, as here , there is
a reasonable degree of geographic coherence among the offices In this re-
gard ,. it is noted particularly that the Sacramento and Carmichael district
offices are adjacent to one another and are within the same county Also,
employees of both district offices are permitted to make sales throughout
the whole of the county without penalty Moreover , they perform the same
work for the same employer , with the same working conditions in an area
that is clearly defined and sufficiently compact so that a single bargaining
unit will permit the employees to exercise their collective -bargaining rights
under the Act Asa unit consisting of the two district offices in Sacramento
County meets the Board 's geographic coherence test , it is found that the
unit petitioned for is appropriate Metropolitan Life Insurance Company,
156 NLRB 1408, Equitable Life Insurance Company , 138 NLRB 529
3 There is a licensed California attorney in each district office who per-
forms services in regard to the Employer 's membership and llB insurance
They shall, therefore , be excluded as professionals
4 The parties stipulated that the district manager is a supervisor Ac-
cordingly , he shall be excluded from the unit As the record supports the
position of both parties that the sales supervisor is a supervisor , he shall
also be excluded
5 An election eligibility list, containing the names and addresses of all the
eligible voters , must be filed by the Employer with the Regional Director
within seven days of the date of this Decision and Direction of Election
The Regional Director shall make the list available to all the parties to the
election In order to be timely filed, such list must be received in the Re-
gional Office , 450 Golden Gate Avenue, Box 36047, San Francisco,
California 94102, on or before December 6, 1967 No extensionof time to
file this list may be granted except in extraordinary circumstances , nor shall
the filing of a request for review operate to ' stay the filing of such list
Failure to comply with this requirement shall be grounds for setting aside
the election whenever proper objections are filed Excelsior Underwear,
Inc, 156 NLRB 1236