Save Electric Corp.

National Labor Relations Board - Board Decisions

May 21, 1943

49 N.L.R.B. 1030 (N.L.R.B. 1943)

In the Matter of SAVE ELECTRIC CORPORATION and UNITED RETAIL,
WHOLESALE & DEPARTMENT STORE^EMPLOYEES OF AMERICA , C. Lb.
Case, No. R-52M.-Decided, May'',, 1 c1943
Messrs. Earl P. Smith and Edward Kirby, of Toledo, Ohio, for
the Company.
Mr. Lowell Goerlich, of Toledo, Ohio, for the C. I. 0.
Mulholland, Robie, dl MeEwen, by Messrs. Joseph A. Robie and
Richard R. Lyman, of Toledo, Ohio, for Branch 553.
Mrs. Augusta Spaulding, of counsel to the Board.
DECISION
AND
ORDER
STATEMENT OF THE CASE
Upon petition duly filed by United Retail, Wholesale & Department
Store Employees of America, affiliated with the Congress of Industrial
Organizations, herein called the C. I. 0.,' alleging that a question
affecting commerce has arisen concerning the representation of em-
ployees of Save Electric Corporation, Toledo, Ohio, herein called the
Company, the National Labor Relations Board provided for an ap-
propriate hearing upon due notice before Louis Plost, Trial Examiner.
Said hearing was held at Toledo, Ohio; on April 23, 1943. The Com-
pany, the C. I. ' O., and American .Flint' Glass` Workers'• Union of
North America, Branch 553, affiliated with the American Federation
of, Labor, herein called Branch 553,2 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. On April 30, 1943, Branch 553 filed a brief
which the Board has considered.
1 The petition and other formal papers were amended at the hearing to show the correct
name of the C. I. O.
'The motion of the intervening union and all formal papers were'amended at the, hear-
ing to show the correct name of Branch 553
49 N L R B , No. 146.
1030
SAVE ELECTRIC CORPORAsTION 1031,
Upon the entire record in the case, the Board males the following :
FINDINGS OF FACT
1. THE BUSINESS OF THE COMPANY
Save Electric Corporation is engaged in the manufacture,of incan-'
descent lamps at Toledo, Ohio. The principal raw materials used
by, the Company consist of tungsten, copper, brass, nickel, and steel.
During the year 1942 approximately 90 percent of the raw materials
used at the plant, valued in excess of $200,000, was purchased and
brought to the plant from points outside Ohio. During the same
period 90 percent of the products finished at the Company's plant,
valued in excess of $500,000, was sold and shipped to points outside
Ohio. The Company admits that it is engaged in commerce within
the meaning of the National Labor Relations Act.
II. THE ORGANIZATIONS INVOLVED
United Retail; Vhblesale &'Department Store` Employees of Amer-
ica is a labor organization affiliated with the Congress of Industrial
Organizations, admitting to membership employees of the Company.
American Flint Glass Workers' Union of North America, Branch 553,-
is a labor organization affiliated with the American Federation of
Labor, admitting to membership employees of the Company.
M. THE ALLEGED QUESTION CONCERNING REPRESENTATION
On April 8, 1943, the C. I. O. notified the Company that the C: I. O.
represented a majority of the Company's employees and requested a
bargaining conference. The Company refused to confer on the ground
that a contract between the Company and Branch 553 constituted a bar
to any negotiations with the C. I. O.
Since 1937, under oral and written agreements, the Company has
recognized••Branch'553-as'exclusive'bargaining agent of its production
employees at the Toledo plant. In September 1942 an issue respecting
a wage increase for these employees was submitted to the National
War Labor Board, herein called the N. W. L. B. On February 19,
1943, while the decision on the wage increase was still pending, Branch
553 entered into a new written contract with the Company 3 The
8 The contract does not contain a closed-shop clause. Pursuant to oral agreements be-
tween the Company and Branch 553, however, all employees at the plant since 1937 have
become members of Branch 553 subsequent to a probationary period of employment. The
contract' covers allxproductiom employees -at•theLplant-and-contains a, provision, for'deduc
tion of union dues unpaid at the expiration of a second pay period
1032 \ DE'C'TSSONS OF 'NATIONAL LABOR RELAT IONS BOARD
contract provided that it be in full -force and effect until the first
Monday in September 1943, and thereafter renewable unless and until
terminated.by 30 days' written notice by either "party.
'On or about April 5, 1943, the N. W. L. B. decided the wage issue
presented to it in September 1942, refusing to sanction a higher wage
scale at the Company's plant on the ground that the increases already
received by the employees indicated no inequality, in. their wages. On
April 5, at a union meeting, this decision was communicated to mem--
bers of Branch 553. The members instructed their shop committee-to
confer immediately with the Company and try to secure some further
increase. The local shop committee first conferred by long distance
telephone with an international union representative, who advised that
the shop committee confer with the Company and promised that he-
would assist them later. The shop committee, on the same day, asked
the Company to grant an increase of 10'cents per hour, or some wage
increase,4 and threatened to, strike on April 7 if no increase were
granted. I
On Wednesday, April 7, at the noon hour, when the plant was not
operating, the shop committee conferred with representatives of the
Company, who took the position that nothing could be done imme-
diately about a wage increase. The Company's reply was commu-
nicated to employees who were eating their lunch in the dining room.
A spontaneous strike immediately resulted, and a picket line was
formed about the plant. The record does.not disclose how many
employees actively participated in the strike, but the plant was closed
from April 7 until April 14.
On the same day, the secretary of Branch 553, by long distance
telephone, notified international union representatives, then engaged
in a labor conference at Pittsburgh concerning industry-wide wage
conditions, of the strike and requested their help. An international
representative told the secretary that the strike was illegal and that
he could not come immediately to the plant-to relieve the situation.
On April 8, 1943, the president of Branch 553 orally notified em-
ployees on the picket line of a meeting of Branch 553. At that time
all 246 employees at the plant, except 1, were members of Branch 553.
Approximately 102 members attended the meeting., The president
reported to the members present the telephone conversation noted
above. By a standing vote, the members present voted unanimously
-According to the testimony of an .employee,- the--employees' were-generally, under- the
impression that in September 1942, when the matter of a wage increase was submitted to
the N W. L. B ., the plant was classified as "unessential " to the war industry , that it had
since been reclassified as "essential ," and that the refusal of the N. W. L. B. In April 1943
to grant an increase was arbitrary and unjust because it was based on a condition ' exist-
ing in September 1942 and not at the time of the issuance of the decision. According to
a representative of the Company who testified at the hearing, the classification of the plant
has not been changed since September 1942.
SAVE ELECTRIC CORPORATION 1033
to withdraw from Branch, 553. Thereafter, by written ballot, they
voted to form a new organization affiliated with the C. I. O. They
instructed the secretary to invite a C. I. O. representative to the meet-
ing to "`see what he could do, for them." A C. I. O. representative
promptly responded and talked to the employees. All employees
present at the meeting signed cards authorizing the C. I. O..to represent
them as bargaining agent. They expressed their desire to retain as
officers in their new organization all employees who were serving as
officers of Branch 553, except 1 officer whose promotion to foreman
had been announced to employees on that day. After the meeting,,
these employees returned to the picket line. By this time an inter-
national representative of Branch 553 had arrived from Pittsburgh
at the plant. He remonstrated with the picketing employees. The
president of Branch 553 informed him verbally of the action which
had just been taken by members of Branch 553 with respect to the
change of affiliation.
On the same day, April 8, 1943, the C. I. O. notified the Company
that it represented, a majority of the Company's employees and re-
quested a bargaining conference. The Company refused to confer
with the C. 1. 0., on the ground that the contract between the Company
and Branch 553 constituted a bar to such negotiations.
On April 12, 1943, the C. I. O. filed the petition in the instant pro-
ceeding. On April 14 the employees returned to work. On this day
an international officer of Branch 553 conferred with a member of the
shop committee and an officer of Branch 553, who informed him that
some members were still paying their dues to Branch 553.5 The local
president of Branch 553 refused to call a meeting of members of Branch
553 or a meeting of the shop committee to confer with their inter-
national representatives. On April 17 the International representa-
tives called a meeting of Branch 553. Forty-five employees attended
-this meeting, including the officer and member of the shop committee,
noted above. No formal action was taken at the meeting with'respect
to the current dispute among the Company's employees. ,
As a general rule the Board does not proceed with an investigation
of representatives if a valid and existing contract is urged as a bar by a
party to the proceeding.e The Board, however, has held that a con-
tract is not a bar to a determination of bargaining representatives if the
bargaining agent which negotiated the contract has ceased to exist as
5 As of ` February ' 25, 1943, 142 ' employees; and on March 18,'1943, ' 110 employees, had
fully paid their dues in Branch 553. Up to the time of the hearing, no employees had
withdrawn their membership from, or been dropped from membership by, the contracting
union.
9 Matter of Douglas and Lomason Company and International Union, United Automobile
Workers of America, affiliated with the C . I. 0., 34 N. L. R. B. 69; Matter of Coney Island,
Incorporated and Buildtng Service Employees International Union, Local No. 158-A, 36
N. L. R. B. 53.
1034 DE'CrSIONS OF NATIONAL LABOR RELATIONS BOARD
an active labor organization or if a reasonable doubt is raised that, by
reason of having been repudiated by substantially all the employee's, it
can no longer administer the contract alleged.as a bar.7
Branch 553 contends that the contract of February 19, 1913, between
the Company and Branch 553 constitutes a bar to this proceeding.
The,C:'I. O. contends that the,contract'is no,•bat'to a'determihation' of
representatives`at this time on the ground that at the time of the hear-
ing all employees at the plant had designated the C. I. 0. as their
bargaining agent and Branch 553 had ceased to exist as an active labor
organization.
OnApril 8, 1943, all 246 employees of the Company but 1 were mem-
bers of Branch 553, and subsequent to that date some employees of the
Company continued 'to pay their local dues. On April 17, 45 em-
ployees of the Company attended a meeting of Branch 553. According
to cards submitted by the C. I. 0., 219 employees .of the Company
designated the C. I. 0. as their bargaining agent prior to April 17,
1943, and If employees subsequent thereto.8 Thus, it clearly-appears
that on April 17, 1943, after the great majority of employees, had
signed,C. I. 0. cards, lav substantial1 number •of'them, signified' their
allegiance to Branch 553 by attending a union meeting. In view of the
support accorded by the Company's employees to their bargaining
agent on April 17, and in view of the short interval of time between
April 17, the date of this meeting, and April 23, the date of the hearing
in this proceeding, we find no substantial evidence on which to predicate
_a finding that Branch 553 has ceased to function as an active labor
organization or that it no longer represents a substantial number of
the employees in the appropriate unit. We therefore find that the con-
tract between the Company and Branch 553 constitutes a bar to a
present determination of representatives 9 We shall accordingly dis-
miss the petition of the C. I. 0. without prejudice to the filing of a new
petition near the close of the contract period.
We find that no 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.
Matter of Fischer Lumber Company, Inc. and International Woodworkers of America,
Local No. 247, affiliated with the C . I O.; 31 N. L. R. B 828 Matter of Precision Castings
Co., Inc and International Union of Mine , Mill & Smelter Workers, CIO , Local 704, 48
N. L R B . 835; Matter of Robert P Scherer and Margaret L Scherer and Margaret
L. Scherer as Trustee for Josephine L. Scherer , Robert P. Scherer, Jr., Karla Scherer, and
John Stephens Scherer , co-partners, doing business as Gelatin Products Company and
United Gas, Coke d Chemical Worker •s of America , affiliated with the C 1 0., 49 N. L. R. B
173
"The C 'I 0 also submitted 13 undated cards.
sMatter of Great Lakes Carbon Corporation and International Council of Gas, Coke and
Chemical Workers, Local 12 327, 44 N. L R B 70
I
SAVE ELECTRIC CORPORATION 1035
ORDER
Upon the basis of the foregoing findings of fact, the National Labor
Relations Board hereby orders that the petition for investigation and
certification of representatives of employees of Save Electric Corpora-
tion, Toledo, Ohio, filed by United Retail , Wholesale & Department
Store employees of America, affiliated with the Congress of Industrial
Organizations ; be,rand -it,hereby,-,is,idismissed'awithout^,prejudice:. --.
D