Continental-Diamond Fibre Co.

National Labor Relations Board - Board Decisions

Jan 1, 1945

59 N.L.R.B. 1367 (N.L.R.B. 1945)

In the Matter of CONTINENTAL-DIAMOND FIBRE COMPANY AND HAVEG
CORPORATION and DISTRICT 50, UNITED MINE WORKERS OF AMERICA
Case,No. 4-R-1570.-Decided January 1, 1945
Mr. Charles A. Wolfe, of Philadelphia, Pa., for the Company.
Mr. Vernon Ford, of Wilmington, Del., for the Union.
Miss Ruth Busch, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
Upon a.petition duly filed by District 50, United Mine Workers of
America, herein called the Union, alleging that a question affecting
commerce had arisen concerning the representation of employees of
Continental-Diamond Fibre Company and Haveg Corporation, Mar-
shallton, Delaware, herein called the Companies, the National Labor
'Relations Board provided for an appropriate hearing upon due notice
before Eugene M. Purver, Trial Examiner. Said hearing was held
at Wilmington, Delaware, on November 28, 1944. The Companies and
the Union appeared and participated. All parties 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. All parties were afforded an opportunity to file briefs
with the Board.
Upon the entire record in the case, the Board makes the following:
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANIES
Continental-Diamond Fibre Company, herein called Continental, is
a Delaware corporation with plants located in Delaware, Pennsyl-
vania, Indiana, and in foreign countries. The Marshallton, Delaware,
plant, the only,one involved in this proceeding, is engaged in the par-
tial manufacture of vulcanized fibre. Continental purchases raw ma-
59 N. L R. B., No 252.
1367
1368 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
terials consisting of rag paper and various chemicals and amounting
to more than $300,000 in value, annually. All of these materials are
shipped to the Marshallton plant from points outside the -State of
Delaware. After the vulcanized fibre is partially manufactured-at this
plant, 90 percent of it is sent to Continental's Pennsylvania plant and
10 percent is sent to another Delaware plant. _ At these plants, the
fibre is processed for ultimate sale to Continental's customers.
Continental denies-that it is engaged in either interstate or intrastate
commerce, inasmuch as the products of the Marshallton plant are sent
to its other plants for further processing. This, it is alleged, is not
commerce because the products are not being sold, but are for Con-
tinental's own use. Since Continental's Marshallton operations con-
stitute an integral step in a commercial manufacturing process con-
ducted in several States,' and since in connection therewith Continental
causes substantial amounts of goods to be shoved in the channels of
commerce, this contention is wholly without merit 2 We find that
Continental- is engaged in commerce within the meaning of the Act.
Haveg Corporation, herein called Haveg, is a Delaware corporation
engaged at Marshallton, Delaware, in the manufacture of a chemically
resistant plastic. During the course of a_ year, Haveg purchases raw
materials consisting of asbestos and resins amounting to more than
$250,000 in value, all of which are shipped from sources outside the
State of Delaware. For the same period, Haveg's products amount to
more than $500,000 in value, all of which are shipped to points outside
the State of Delaware. -
Haveg admits that it is engaged in commerce within the meaning of
the National Labor Relations Act.
II. THE ORGANIZATION INVOLVED
District 50, United Mine Workers of America,,' is a labon organiza-
tion admitting to membership employees of the Companies.
III. THE QUESTION CONCERNING REPRESENTATION
The Companies have refused to grant recognition to the Union as
the exclusive bargaining representative of their production and main-
tenance employees, contending that the Board does not have juris-
diction over Continental and that the proposed unit of employees of
Continental and Haveg is not appropriate for the purposes of collective
bargaining.
'See Matter of Continental -Diamond Fibre Company, 59 N. L. R. B 32, where the
Company admitted that at its plant at Newark, Delaware, it is engaged in interstate
commerce. -
IN. L R. B. V. Fainblatt, 306 U. S. 601 and N. L. R. B. v. Schmidt Baking Co ., Inc.,
122 F. (2d) 162 (C. C. A. 4).
CONTINENTAL-DIAMOND FIBRE COMPANY 1369
A statement of a Field Examiner, introduced into evidence at the
hearing, indicates that the Union represents a substantial number of
employees in the unit hereinafter found appropriate.8 - -
We find that a question affecting commerce has arisen concerning
the representation of employees of the Company, within the meaning
of Section 9 (c) and Section 2 (6) and (7) of the Act.
IV. THE APPROPRIATE UNIT
,The Union requests a unit composed of production and maintenance
employees of both Companies excluding laboratory, technical, clerical,
plant-protection, and supervisory employees. The Companies agree
that the proposed unit is appropriate as to the categories of employees
to be included and excluded. They contend, however,. that separate
units should be established for each company in the event that Conti-
nentathemploye s are found to be subject to the Act. The Companies
assert that a single contract for the employees of both would be "im-
practical," but they do not clarify this contention, nor did they adduce
any evidence to show that the employees of both Companies could not
feasibly be represented for bargaining purposes in a single unit.
Continental and Haveg are separate and distinct corporations with
Continental owning approximately 70 percent of the stock in Haveg.
The president and vice president of Continental hold the same offices
in Haveg and the vice president determines the labor policies for both
Companies. Continental owns five acres of land on which its Mar-
shallton plant is located. Haveg rents several buildings at the -Mar-
shallton plant from the other corporation. The two Companies have
the same plant manager and superintendent at Marshallton. Al-
though Haveg employs the plant manager , he is compensated by both
Companies in proportion to the amount of time he spends in each
plant. ' The plant manager hires employees for both Companies.
Haveg employs no firemen, watchmen, or maintenance men since Con-
tinental maintains the premises. Continental has no laboratory ; hence
the laboratory employees whom the parties have agreed to exclude
from the unit are all in Haveg's employ. There is only one plant
entrance for both Companies and the employees of the two corpora-
tions punch the same time clock. There is an interchange of unskilled
employees between the two corporations, each company reimbursing
the other for the differential in the pay roll. In the event of a lay-off
'The Field Examiner reported that the Union submitted authorization cards, of which
approximately 61 bore the names of persons listed on the Companies ' pay rolls, which
contained the names of 108 employees in the appropriate unit The cards were dated :
1 in April 1944 , 8 In September 1944, 48 in October 1944 , and 4 In November 1944 At
the hearing , the Trial Examiner introduced 6 additional cards which were checked against
llaveg's pay roll. The Field Examiner ' s report shows that 67 were Haveg employees and
41 were Continental employees and that there was a substantial showing among the
employees - of both Companies.
1370 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
by either corporation, the other would try to absorb the employees
concerned,. and- Continental, in such a case, would try to employ- the
workers who had been laid off at one 'of its. other plants. Each com-
pany issues its own pay checks, but both pay rolls are made up in
Continental's-office. Since the employees of both Companies are en-
gaged in the production of chemically treated materials, it is apparent
that their skills and qualifications are not dissimilar.
In a previous case in which Haveg and the Union participated 4
the Union sought a unit of only Haveg's employees. At that time,
Haveg contended that the only feasible unit was one composed of the
employees of the two plants.5 In view' of the close integration be-
tween the two corporations and their employees and on the basis of
the entire record, we find-that Continental and Haveg jointly consti-
tute a single employer within the meaning of the Act as to their
employees at Marshallton. We further find that ti single bargaining
unit composed of Continental and Haveg employees is appropriate.
We find that all production and maintenance employees of both
Continental and-IIaveg, exc%ding laboratory, technical, clerical, and
plant-protection employees, and all supervisory employees-with au-
thority to hire, promote, discharge, discipline, or otherwise effect
changes in the status of employees, or effectively recommend such
action, 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 among the em-
ployees in the appropriate unit who were employed during the pay-
roll period immediately preceding the date of the Direction of
Election herein, subject to the limitations and additions set forth in
the Direction.
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 Relations
Act, and pursuant to Article III, Section 9, of National Labor Rela-
tions Board Rules and Regulations-Series 3, as amended, it is hereby
DIRECTED that, as part of the investigation to ascertain representa-
tives for the purposes of collective bargaining with Continental-
Diamond Fibre Company and Haveg Corporation, Marshallton,
4The petition was withdrawn in Matter of Haveg Corporation , Case No 4-R-872.
, Moreover , Continental proposes in its brief filed in this proceeding that the employees
of each corporation be given an opportunity to determine in it "Globe" election whether
or not they desire to be represented in a single unit with the employees of the other
corporation.
CONTINENTAL- DIAMOND FIBRE COMPANY 1371
Delaware, 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 Di-
rector for the Fourth Region, acting iii this matter as agent for the
National Labor Relations Board, and subject to Article III, Sections
10 and 11, of said Rules and Regulations , among the employees in the
unit found appropriate in Section IV, above, who were employed
during the pay-roll period immediately preceding the date of this
Direction , including employees who did not work during said pay-
roll-period because they were ill or-on vacation or temporarily laid
off, and including employees in the armed forces of the United States
who present themselves in person at the polls , but excluding those
employees who have since quit or been discharged for cause and have'
not been rehired or reinstated prior to the date of the election, to
determine whether or not they desire to be represented by District
50, United Mine Workers of America, for the purposes of collective
bargaining.
CHAIRMAN MILLIS took no part in the consideration of the above
Decision and Direction of Election.