New Bedford Cotton Manufacturers' AssociationDownload PDFNational Labor Relations Board - Board DecisionsMar 5, 194347 N.L.R.B. 1345 (N.L.R.B. 1943) Copy Citation -In the Matter of NEW BEDFORD COTTON MANUFACTURERS' ASSOCIATION and TEXTILE WORKERS UNION OF AMERICA (C. I. O.) AND NEW BEDFORD TEXTILE COUNCIL AFFILIATED WITH THE UNITED TEXTILE WORKERS OF AMERICA (A. F. L.) AND INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN AND HELPERS OF AMERICA,-LOCAL No. 59 (A. F. L.) Case No. RT-54.-Decided March 5, 194,3 Jurisdiction : cotton and textile manufacturing industry Investigation and' Certification of Representatives : existence of contract; con-' flicting claims of rival representatives ; election necessary. Unit Appropriate for Collective Bargaining : unit composed of all production and maintenance employees of members of an employer-association, found appropriate in view of the similarity in labor problems among all the companies and the history of collective bargaining Ropes, Gray, Best, Coolidge d Rugg, by Mr. Charles B. Rugg, of Boston, Mass., for the Association. Mr. Isadore Katz, of New York City, for the C. I. O. Mr. Jacob Minkin, of Boston, Mass., for the Council and for the Firemen and Oilers. Mr.'Joseph A. Padway and Mr. Herbert S. ,Thatcher, of Washing- ton, D. C., for the U. T. W. A. Mr. S. P. Jason;, of New Bedford, Mass., for the Teamsters. Mr. Arthur Leff, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF, THE CASE Upon petition duly filed by New Bedford Cotton Manufacturers' Association, New Bedford, Massachusetts, herein called the Associa- tion, alleging that a question affecting commerce had arisen concern- ing the representation of employees of the Association, the National Labor Relations Board provided for an appropriate hearing upon due notice before Samuel G. Zack,. Trial Examiner. Said hearing was held at New Bedford, Massachusetts, on December 22, 23, 29, and 30, 1942. The Association, Textile Workers Uhion of America (C. 'I. 0.), 47 N. L. R. B., No. 174 513024-43-vol 47-85 1345 1346 DECISIONS OF NATIONAL LABOR RELATIONS BOARD herein called the C. I. 0., New Bedford Textile Council, herein called the Council, Local No. 294 of the International Brotherhood of'Firemen, Oilers and Helpers of America, herein called the Firemen and Oilers, and Local No. 59 of International Brotherhood of Team- sters, Chauffeurs, Warehousemen and Helpers of America,. herein called the Teamsters, appeared, participated, and were afforded full opportunity to be heard, to examine and cross- examine witnesses, and to introduce evidence bearing on the issues. At the close of the hear- ing the C. I. O. moved to dismiss the petition on the ground that the Association was not an employer and decision thereon was reserved for the Board. For reasons appearing below, the motion is denied. The Trial Examiner's rulings made at the hearing are free from preju- dicial error and are hereby affirmed. On February 9, 1943, oral argument was presented before the Board at Washington, D. ^C., all of the parties being represented by counsel. The Association, the C. I. 0., the Council, and United Textile Workers of America filed briefs which have been considered by the Board. Upon the entire record in the case, the Board makes the following : FINDINGS OF FACT I. THE BUSINESS OF THE COMPANIES New Bedford Cotton Manufacturers' Association is a voluntary unincorporated association of cotton and textile manufacturing com- panies, all located in the city of New Bedford, Massachusetts. The members of the Association are : Gosnold Mills Corporation, Hath- away Manufacturing Company, Naushon Mills, Inc., Nashawena Mills, Nonquitt Mills, Pierce Brothers Limited, Quissett Mill, Soule Mill, and Wamsutta Mills. The Companies are engaged principally in the manufacture of cotton yarn and cotton cloth in the category of fine goods, although in some instances rayon fabrics are also pro- duced. The member companies annually use 82 million pounds of raw cotton and rayon and produce approximately 170 million yards of fabric and 81/2 million pounds of yarn. Substantially all of the raw material used is received from sources located outside the Com- monwealth of Massachusetts and a vast majority of the finished products are shipped to points outside that State. U. THE ORGANIZATIONS INVOLVED Textile Workers, Union of America is a labor organization affiliated with the Congress of Industrial Organizations, admitting to member- ship production and maintenance employees employed at the Associa- tion companies. NEW BEDFORD COTTON MANUFACTURERS' ASSOCIATION 1347 New Bedford Textile Council is a labor organisation composed of a number of craft unions, all but one of which are also affiliated with United Textile Workers of America-American Federation of Labor. The Council through its affiliates, admits to membership various classes of workers employed at the Association companies.' International Brotherhood of Teamsters, Chauffeurs, Warehouse- men and Helpers of America and its Local No. 59 are labor organiza- tions affiliated with the American Federation of Labor, admitting to membership truck drivers, yardmen, and warehousemen, employed at the Association companies. III. THE QUESTION CONCERNING REPRESENTATION On October 27, 1942, the C. I. O. wrote the Association and each of its member companies requesting 'recognition as the exclusive bargain- ing representative for employees in each of said member companies, respectively, for the purposes of negotiating a collective bargaining agreement to become effective on February 1, 1943. At that time there was in force a written collective bargaining agreement, date June 16, 1941, between the Association and the Coun- cil, .covering all employees in the member companies , exclusive of executives, managers, overseers, second hands, watchmen, clerical forces, truck drivers, and warehousemen. The contract was termin- able by either party on January 31, 1943. Due notice of its intention to amend or modify this contract had been given by the Council to the Association on October 15, 1942. Because of the conflicting claims of representation, the Association by its petition has in effect referred the matter to the Board for in- vestigation. A statement of the Regional Director, introduced into evidence at the hearing, indicates that the C. I. O. represents a substantial number of the employees in the unit hereinafter found to be appropriate. We find that a question affecting commerce has arisen concerning the representation of employees of the Companies within the meaning of Section 9 (c) and Section 2 (6) and (7) of the Act. 'The following local labor organizations of New Bedford, Massachusetts , are affiliated with and are represented by the Council: Carders & Ring, Spinners Union, Knotters Union, Loomfixers 'Union. Maintenance Men's Union, Yarn Finishers' Union, Shearer Tenders' and Cloth Room workers Union, Slasher Tenders' Union, Warp Twisters' Union, Weavers Onion, and Local No. 294 of the Firemen and Oilers. The Firemen and Oilers, although represented by the Council in labor negotiations with the Association, is not affiliated with United Textile Workers of America, but is affiliated with - another international, labor organization as hereinabove noted The Firemen and oilers , although appearing separately , was repiesented in this proceeding by the attorney also representing the Council, and took no independent position - 2 The statement shows that the C I 0 submitted a total of 3,380 membership cards purported to' be signed by employees in the mills of the Association companies. At the - ime of the hearing there were approximately 11,000 employees in said mills. 1348 DECISIONS OF NATIONAL LABOR RELATIONS BOARD . IV., THE APPROPRIATE UNIT The C. I. O. contends that the Board should find appropriate a separate unit for the'employees in each member company of the Asso- ciation, including in such separate units the production and mainte- .iiance employees of each respective company, but excluding therefrom executives and supervisory employees (second hands and up), office and clerical employees, warehousemen, yardmen, and truck drivers.' The Council desires a single city-wide unit, composed of employees in substantially similar included categories, covering all New Bedford, Massachusetts, mills engaged in the manufacture of fine cotton goods, but urges at its secondary position, in the event that a city-wide unit is found inappropriate, that the Board should nevertheless declare as ;appropriate a single unit, composed of such employees, covering all ,such companies as are members of the Association. The position of the Association is that the unit should be Association-wide, but it has no objection to a city-wide unit should the Board deem the broader ,unit feasible. It appears from the record that there are today, in,New Bedford 11 mills in the class generally known as fine cotton goods mills." Of these, 9 are members of the Association.5 The 2 remaining mills, Hoosac Mills 1, and the Kilburn Mill,7 while not members of the Asso- ciation at the time of the hearing, have generally, although not invari- ably, followed the lead of the Association in their collective bargain-, ing. However, each of them has conducted its negotiations separately and has entered into contracts independently of the Association and its member mills. Neither of them has authorized the Association to bargain on its behalf, nor considered itself bound by the action of the- Association.,' For these reasons we are of the opinion, and therefore 3 This is the C I 0 position as modified at the oral argument before the Board. At that time the C 1 0 counsel stipulated in substance that the C I 0 no longer claimed to represent any employees within the categories claimed by the Teamsteis, namely, ware- housemen , yaidmen , and truck (Divers employed in the mills of the Association members, and that there was no question concerning the representation of such employees 41n addition , New Bedfoi d has at least two mills which manufacture cotton fabrics tor industrial use and are not within the classification mentioned' There aie also a number of mills genei ally classified as synthetic goods mills and commission weavers. i The navies of the member mills arc set forth in Section I, above 6 lloosac Mills was formerly a member of the Association, but resigned when it went into receivership some yens ago Its contracts aie subject to court approval , 7 Separate petitions for investigation and certification involving employees of Hoosac Mills and Kilburn Mill have been filed, and decisions thereon are being issued simul- taneously herewith See Matter of Morgan Butler ,- as he is receiver of Hoosac Mills Car- poratiorr (Nei, Bedford Ditiision) and Textile Workers Union of flniotea ( C 1 0 ) et at. (RE-56), 47 N L It B 1361; Matter of Kilburn Mill and Textate Workers Union of America (R-4726), 47 N L R B 1356 - 8 The Kilburn Mill was not it member of the Association at the time of the hearing ,On l'ebi uary 25, 1943, the Association, alleging that Kilburn Mill had been admitted to OF, membership on February 23, 1943, moved to have the record in this case amended by including Kilburn Mill as an Association member in all pertinent provisions of the petition and in all orders to be issued by, the Boaid in this proceeding and -to have the record and official report of the proceedings before the Board in Matter of Kilburn Mill NEW BEDFORD COTTON MANUFACTURERS' ASSOCIATION - 1349' find, that employees of the Hoosac Mills and Kilburn Mill may not at this time appropriately be included in a single unit,with the employees, in the Association group.° There remains for consideration the issue as to whether the appro- priate unit is company-wide or Association-wide. - The organization and history of the Association The Association admits to membership cotton and textile companies in the city of New Bedford. The exact date of its origin has not been clearly established, but there is evidence indicating that since the turn of this century, the treasurers of a group of New Bedford mills met periodically for the purpose of taking concerted, action in matters of labor relations as well as other matters of mutual interest, and that in the course of years, the Association evolved into its present form . In 1920 the Association adopted bylaws setting forth that it was "established for the purpose of affording convenient means and opportunity for conference, consultation and cooperation with refer- ence to matters of common interest to its members relative to the cotton manufacuring industry in New Bedford and to take such action in connection therewith as may be mutually advantageous . . ." Pursu- ant to the bylaws each member company is represented in the Association by one voting member. The Association maintains a permanent office in the city of New Bedford and has a paid executive secretary and clerical help. It also employs legal counsel and pays his fees, not. only for services rendered in matters involving the entire membership, but also for services ren- dered in the arbitration or settlement of grievances which affect indi- vidual member mills. Funds necessary to meet the operating expenses of the Association are raised through assessments levied against the member mills in ratio to the size of their respective pay rolls. The Association has, in accordance with its bylaws, a full set of. officers and an elected advisory committee. It holds regular meetings not only to discuss and make decisions in matters of labor policy but also to take action on such matters of common interest to its members as legislation and freight rates. Although there is some dissimilarity in the type of goods produced in the various members mills, all are engaged primarily in the pro- and Textile Workers Union of America (R-4726), 47 N L R B 1356, incorporated as pact of the record in this case The said motion is hereby denied However, in the event that the same baigaining representative is chosen in the election hereinafter directed and in the election directed in Matter of Itilbui n Mill and Textile Workers Union of America , supra, we shall then entertain an application to consolidate the units found appropriate in the two cases 0 See Matter of Monon Stone Company and Quarry Workers' International Union of North America , 10-N. L. R B 64 1350 DECISION'S OF NATIONAL LABOR RELATIONS BOARD duction of what has been styled as fine textile goods. Similar skills by craft are required among the employees in the various member mills. In the negotiation of collective bargaining contracts, the Associa- tion-procedure has usually been first to hold a general membership meeting to consider the subject generally and then to refer the matter to the advisory committee of the Association, with instructions to confer with the representatives of the Council or other labor organiza- tion and to conduct negotiations in accordance with the directions given. After the terms of the agreement were negotiated, the practice has been for the advisory committee to report back to the full membership body for the purpose of having its action ratified and approved before the final agreement was consummated. The three written agreements which have been negotiated with the Council have been signed by the member mills, individually, but the last two agreements have also been signed by the Association. All of these agreements contain a recital' that the Association is a party thereto. There is evidence tending to establish that the individual member signatures were af- fixed upon the insistence of the attorney for the Council as a pre- cautionary measure to insure the legal obligation of the subscribing members. Until December 21, 1942, the day preceding the hearing, the Associa- tion bylaws, adopted in 1920, had provided- that "no member corpora- tion shall be bound by any action of the organization . . . unless the authorized representative of such member corporation gives his con- sent thereto by vote or agreement." There is evidence indicating, however, that in actual practice the members of the Association had considered themselves bound by the agreements negotiated by its advisory committee, and regarded the subsequent ratification and actual signing as mere formalities.10 This practice was formalized when on December 21, 1942, the Association by unanimous vote amended its bylaws with respect to labor negotiations by providing that Each of the member corporations shall execute and shall be bound by each contract and agreement, negotiated on behalf of the Association by its duly designated and authorized representatives and approved on behalf of the Association by the Advisory Com- mittee, with any labor organization recognized as exclusive agent for the purposes of collective bargaining with the Association. lo There is on record only one isolated instance when a member corporation refused to join in an agreement negotiated by the advisory committee of the Association This occurred in May 1938 , when the first written collective bargaining agreement between the Association and the Council was signed . On that occasion the dissenting member was obliged to resign from the Association before the agreement was actually signed and this fact was known to the Council at the time it signed the agreement. NEW BEDFORD COTTON MANUFACTURERS' ASSOCIATION 1351 Organization and history of employee organizations Labor organization in the textile industry of New Bedford exists in the form of craft locals with a history covering more than 50 years. More than a score of years ago these craft unions became united for the purposes of collective bargaining in the Council. In many respects the -organization of the Council parallels that of the Association. The Council is composed of delegates from each of the craft locals. Col- lective bargaining, especially with the Association, has been conducted for the craft unions by the Council through a committee designated for that purpose. When agreements were reached between the Council committee and the advisory committee of the Association they were referred back to the respective locals for ratification. The agreements were then signed by the Council and also by its constituent locals. At various times in its history the Council has been independent; at one time it was affiliated with the Committee for Industrial Organization;' -it is now affiliated with the American Federation of Labor. During each of these :periods it has continued to bargain with the Association on an Association-wide basis. History of collective bargaining Since about the beginning of the century , the members of the Asso- ciation and of its forerunner , the Meetings of Treasurers , have acted in unison in matters pertaining to wages, hours, and other conditions of employment . Signed written collective bargining agreements with the Council have been continuously in force since 1938. For many years prior to 1938 verbal agreements , evidenced by unsigned written memoranda , had been made . All of these agreements were negotiated through the Association and made upon an Association -wide basis. When requests were made by a labor organization for collective bar- gaining, they were referred to the Association for consideration and action. Association bargaining was conducted not only with the Council but also with the Teamsters which, as far as the record dis- closes, was the only craft union on of the Council , which attempted to organize employees of Association members. This system of dealing has become traditional in the New Bedford cotton textile industry , has proved conducive to the orderly , function- ing of collective bargaining , and has contributed to uniformity and stability of labor conditions not only among the Association mills but among other New Bedford mills of like class , which as a general rule have followed the lead of the Association . With the exception .of a 6 months ' strike in 1938, precipitated by an Association decision to effect a 10-percent wage reduction and ultimately adjusted in nego- tiations conducted by the Council with the Association , and a strike 1352 , DECISIONS OF NATIONAL LABOIR RELATIONS BOARD of shorter duration in 1934, which was part of a national textile strike, the fine goods textile industry in New Bedford has been singularly free from major industrial strife. Under the written agreements negotiated by the Association which have been in force since 1938, uniform base rates of pay have been fixed; a procedure has been established for the negotiation between the Asso- ciation and the Council of grievances arising in an individual member mill which cannot be adjusted by the individual member mill with the employee or craft union involved; provision has been made for the arbitration of all disputes including those affecting individual member mills which fail of settlement after negotiation between the Association and the Council, it being expressly provided that the arbi- trators are to be designated and the expenses of arbitration shared by the Association and the Council; uniform seniority rules govern- ing all mills have been adopted; and other uniform conditions of em- ployment affecting all mills have been established. While uniform base rates of pay for all Association members have been regarded as an Association matter and have been established in the first instance through negotiations between the Association and the Council, it has been recognized that piece rates and work assign- ments will necessarily vary, not only in each mill but in different de- partments of the same mill, depending on the type of fabric being produced, the efficiency of the machinery employed, and other variable factors. The Association and the Council have therefore not at- tempted to negotiate standard piece rates and work assignments, but have left this for determination by the individual mill in the first instance. Piece rates are, however, controlled by the base rate for- mula, first negotiated by the Association with the Council in 1933, kind since then carried over in the various verbal and written collective bargaining agreements which have been in force. Under this formula it is provided in substance that piece rates must be such as to enable 60 percent of all piece-rate workers engaged in the same operation in each plant to earn the base rate of pay." In the case of work assignments it has been specifically provided by contract that should differences arise between the employees and management in any individual mill which cannot be settled between the individual mill and the craft union involved, the matter is to be referred for negotiation between the Association and the Council and any decision reached by them shall be binding on the parties concerned, and if an agreement is not then "The latest contract provides in substance that if 60 pci cent of the woi kers do not earn the base rate of pay, an adjustment to all employees involved shall be made weekly, and that if it is established that the employing comp any has failed to make the appropriate adjustment, all employees involved shall not only be entitled to the differential but shall also be entitled to recover a penalty of 5 per cent of the base pay covering the period during which adjustment was not made Piece-rate disputes , like other grievances, which cannot be adjusted by the null must be referred to the Association for negotiation with the Council NEW BEDFORD COTTON MANUFACTURERS' ASSOCIATION 1353 reached it is to be submitted for final decision to a fact finding board consisting of representatives of the Association and the Council and, if -necessary, a designee of the United States Conciliation Service: During the past several years a number of disputes affecting work as, signments and piece rates involving individual member mills have arisen. The Association has participated in the negotiations and ar- bitrations which followed, and has borne the counsel fees and.other expenses. The procedure set up in the collective bargaining contracts for the adjustment of disputes, through Association participation', has proved an effective aid in curbing industrial strife. CONCLUSIONS On the basis of the facts above referred to and upon the entire record of this case, we find that the Association has been authorized by its members to conduct on their behalf essential functions of collec- tive bargaining , and that it has historically exercised such employer functions by negotiating for its members collective bargaining agree- ments affecting wages, hours, and conditions of work, and by partici- pating in the negotiation, settlement, and arbitration of labor disputes which have affected its member mills. As we have frequently held, the Act includes within the term "em- ployer" any person acting in the interest of an employer directly or indirectly and the term "person" includes one or more associations r2 We have considered, but have not been impressed by the contention of the C. 1. O. that the Association should not be regarded as an em- ployer and that separate mill units should be found appropriate because the separate mills have varying shift hours, piece rates, and work assignments, handle their own grievances in the first instance as they arise, and have no common seniority system covering employees of all mills. As we^have previously shown, minimum hours of em- ployment are negotiated through the Association. Piece rates are not only governed and controlled by the base rates which are nego- tiated by the Association, but vary in different departments of the same mill as well as from mill to mill. Work assignments also vary in different departments of the same )pill, and disputes concerning such assignments. as well as other grievances, will become a matter for negotiation by the Association if the affected member mill is unable to make its own settlement. Common seniority rules , too, cover all 12 See Matter of Shipowners' Asaociation of the Pacific Coast , et at and International Longshoremen's and lVarehousemen's Union District No 1, 7 N L R B 1002; Matter of Mobile Steamship Association, et at and International Longshoremen's and Warehouse- men's Union, 8 N. L R B. 1297, Mattes of Alston Coal Company and Progressive Mine Workers of America, etc , 13 N L. R B 683; Matter of Federated Fislnng Boats of New England and New York, Inc and American Communications Association, etc, 15 N L R B 1080; Matter of Associated Banning Company and Waterfront Employers Association of .Southern California , 19 N,L R B 140 See also N L. P. B. v Lund, 10', F (2d) 815 (C. C. A 8) 1354 DECISIONS OF NATIONAL LABOR RELATIONS 'BOARD the mills and the groups to which they are made separately applicable are divided not only along mill lines but even within the individual mills according to departments, or occupational groups. Were we to find the considerations urged by the C. I. O. to be controlling, we would be forced to adopt the position, obviously absurd in this case, of constituting as a separate unit each departmental division within every individual company. The fact that the member companies have bound themselves to act in unison in collective bargaining through an association to which they have delegated employer functions, the similarity in labor prob- lems among all the Companies, the fact that the employees as well as the Companies have long considered collective bargaining on an As- sociation-wide basis to be desirable, coupled with the long established history of collective bargaining and other appropriate circumstances of this case, impel the conclusion that a unit coextensive with em- ployees in all Association companies is appropriate in this case.13 For the reasons already set forth, we find that the Association is an employer within the Act, and consequently deny the motion made by the C. I. O. at the close of the hearing to dismiss the petition. We find that all production and maintenance employees of Gosnold Mills Corporation, Hathaway Manufacturing Company, Naushon Mills, Inc., Nashawena Mills, Nonquitt Mills, Pierce Brothers Limited, Quissett Dill, Soule Mill, and Wamsutta Mills, New Bedford, Mas- sachusetts, exclusive of all executive and supervisory employees (sec- ond hands and up), office and clerical employees, warehousemen, yard- men, and truck drivers, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9 (b) of the Act. V. THE DETERDIINAI ION 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 Elec- tion 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 43 See , in addition to cases cited in footnote 12, Matter of Admior Rubber Company and American Federation of Labor, 9 N. L R B 407, Matter of Hijinan -Michaels Company, United Commercial Company Division and International Union of Mine, Mill, and Smelter Workers, Local No 50 , 0. 1 0, 11 N L R. B 796; Matter of John Kausel and Local 142 of the International Moulders Union (A F L ), 28 N L R B 906; Mattei of The Patterson Leitch Company and International Association of Bridge , Structural & Ornamental Iron Workers, Local 468, at al., 33 N. L R B 485. NEW BEDFORD COTTON MANUFACTURERS' ASSOCIATION 1355 Act, and pursuant to Article III, Section 9, of National Labor Rela- tions Board Rules and Regulations-Series 2, as amended ; it is hereby DIRECTED that, as part of the investigation to ascertain representa- tives for the purposes of collective bargaining with New Bedford Cotton Manuficturers' Association as representative of Goshold Mills, Corporation, Hathaway Manufacturing Company, Naushon Mills, Inc., Nashawena Mills, Nonquitt Mills, Pierce Brothers Limited, Qnissett Mill, Soule Mill , and Wamsutta illills , New Bedford, Mas- sachusetts, 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 First Region ; acting in this matter as agent for the National Labor Relations Board, and subject to Article III, Section 10, 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 any such 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 any who have since quit or been discharged for cause, to determine whether they desire to be represented by Textile Workers Union of America (C. I. 0.), or by New Bedford Textile Council, affiliated with the United Textile Workers of America and the American Federation of Labor, for the purposes of collective bargaining or by neither. Copy with citationCopy as parenthetical citation