Western Electric Co., Inc.

National Labor Relations Board - Board Decisions

Mar 10, 1943

47 N.L.R.B. 1457 (N.L.R.B. 1943)

In -the Matter - of WESTERN ELECTRIC COMPANY, INCORPORATED a"
CHICAGO TELEPHONE EQUIPMENT WORKERS UNION (IND.)
In the Matter Of WESTERN ELECTRIC COMPANY, INCORPORATED and
UNITED ELECTRICAL , RADIO & MACHINE WORKERS OF AMERICA (CIO)
Cases Nos. 'R-4781'and R-4782 respectively .Decided March 10, 1943 -
Jurisdiction : communication equipment manufacturing industry.
'Practice , and Procedure : petition dismissed when unit sought therein was inap-
propriate ; proposed unit of hourly rated non-supervisory employees at one
distributing office held inappropriate when among other circumstances, record
indicated that primary matters of collective bargaining had been negotiated
on a national basis for the entire sales department and bargaining with local
unit was of a• limited and supplementary character
-Mr. Carl K.;-Rang, of New York City, and Sidley; McPherson, Aiis
tin & Burgess, by Mr. H. P. Robinson, of Chicago, Ill., for the Company.
Mr., John J. Shannon, of Chicago, Ill., for the Chicago Workers
Union.
Mr. David Scribner, of New York City, and Mr. Ernest DeMaio, of
Chicago, Ill., for the United.
Mr. Edwin R. Hackett, of Chicago, Ill., and Mr. J. A. Beirne, of New
York City, for the National Association.
Mr. Edwin R., Hackett, of Chicago, Ill., and Mr. C. Grindle, of
Chicago, Ill., for the Association Local.
Miss'A!elvern R. Krelow, of counsel to the Board.
DECISION
AND
ORDER
STATEMENT OF THE CASE
Upon,' petitions duly filed by Chicago Telephone 'Equipment
Workers , Union (Ind.), herein called the Chicago Workers Union,
rind United Electrical Radio & Machine Workers of America (CIO),
herein.called the United, alleging that a question affecting, commerce
had arisen- concerning the representation of employees of Western
' The United's petition was filed during the hearing, and the Board on the same day issued
an order consolidating the cases
47 N,-L. R. B., No -185. - ' •
513024-43-vo1 47-92 1457
1458 DECISIONS OF NAMONAL LABOR RELATIOI'IS BOARD
Electric Company, Incorporated, Chicago, Illinois, herein called the
'Company, the National Labor Relations Board provided for an ap-
propriate hearing upon due notice before Lester Asher, Trial Exami-
ner. Said hearing was held at Chicago, Illinois, on January 20 and
21, .1943. , The Company, -the Chicago Workers Union, the United,
National Association of Telephone Equipment-Workers; herein called
the National Association,, and Chicago Local, National, Association
of, Telephone Equipment Workers, herein called the' Association
Local; appeared, participated, alidwere' afforded -full opportunity to
be heard, to examine and 'cross-examine witnesses, and to "int`roduce
evidence bearing on the issues. At the beginning and at the close of
the hearing, the National Association and; the Association Local
moved to'dismiss the petitions on the grounds that the unit'sought to '
he'established was not appropriate and that existing collective-bar-
gaining contracts constituted a' bar to a determination of 'representa-
tives. The Trial Exariiiner reserved ruling., For reasons hereinafter
set forth, the motions are hereby granted. The .Trial Examiner's
rulings made at the hearing are free from prejudicial error and are
hereby affirmed.
On' February -18, -1943, a stipulation to 'correct the 'transcript of
record, entered into between the parties on February' 16, 1943; was
filed.with,the Board. The stipulation is hereby made a part of. the
record. -
On January 30, 1943, the Company filed a statement in lieu of a
brief, setting forth that it was taking no position-on the issues. On
February 3, 1943, the National Association, the. Association Local,
and the United filed briefs, which the Board has considered.
Upon the entire record in the case, the Board makes the following':
FINDINGS OF FACT
1. THE BUSINESS OF THE COMPANY
Western Electric Company, Incorporated, a New York corpora-,
tion with its principal office in New York City, is engaged normally
in the manufacture, purchase, and sale of communication equipment
for the Bell Telephone System. However, the Company now devotes
a large share of its' facilities to the furnishing of various types of
combat and communication equipment for the United States. The
business of the-Company is divided generally into manufacturing,
sales, and installation departments. Its principal manufacturing,de--
partment -locations are in Illinois, New Jersey, Maryland,- and New
York.- = The installation department 'has offices scattered .throughout
the United States. The sales or distributing department consists `of
.,29 distributing, houses in various cities throughout the United 'States,
WESTEBI^ ' E'IUECTRIC QOMPANY ,• INCORPORATED ^ 1459
uiie of= ^^ hich is located in Chicago, Illinois . This-pro' -eding involves
the Company's'distributing house in {Chicago. For.the 'first : 9 cmonths
of= 1942; the total gross sales of the Chicago Distributing House
amounted, to $10 ,934,328, of which $8,837 ,734 was intrastate ,business
and $2,096,593 -was interstate business . For the ` same period , sales to
customers in the State , of Illinois from the Company 's manufacturing
plants amounted to $3,838,724. -
The Company admits that it is 'engaged .in commerce -within the
meaning of the National Labor Relations Act. _
II. THE ORGANIZATIONS INVOLVED
Chicago Telephone Equipment Workers Union ( Ind.) is an unaffil-
iated labor organization , admitting to membership employees of the
Company.
National Association of Telephone Equipment Workers, and its
Local , are labor organizations affiliated with the National Federation
of Telephone Workers , admitting to membership employees of the
Company.2 N
United Electrical,. Radio & Machine Workers-of America is a labor
organization - affiliated with the Congress of Industrial Organizations,
admitting to membership employees of, the Company.
III. TIIE ALLEGED APPROPRIATE UNIT
The principal issue involved herein is whether the unit sought to be
-established by,the: Chicago Workers Union and the United is appro-
priate.3 The,Chicago Workers Union and the United contend that
the hourly rated non-supervisory employees of the Chicago -Distrib-
uting House constitute an appropriate unit. The,National Association
and the Association Local contend that a single unit -comprising the
hourly rated non-supervisory employees of the Company's 29 distrib-
uting houses is appropriate, and urge that the petitions be dismissed.
As 'heretofore stated, the Company takes no position with respect to
the issues, involved in this proceeding. -
-'Prior' to October 1937, there were in existence .in the sales.depart-
ment of the Company independent and autonomous unions. In Octo-
ber,,the unions -]net and discussed the establishment, of a national
association: As a result, a constitution was drafted and submitted to
the employees in the sales department, which the employees; including
2 Untii October 1942, the National Association was 'known as National Associatidn of
western Electric Employees of the Telephone Sales Department. The employees of -the
Chicago Distributing House constituted one local of the National Association, known as the
Chicago' Local - -
In view of our finding hereinafter set forth;; we•deem,it unnecessary to determine whether
the collective bargaining contract between "the- Company'=and the Chicago . Local, executed on
February 21, 1935; 'is-a bar to a-pcesent determiriationiof'representatives: 1- .
1460 DECISIONS OF NATIONAL LABOR RELATIONS. BOARD
those.of the Chicago Distributing House, ratified. There are now 29
locals comprising the National Association, covering the 29. distributing
houses. The Chicago Local remained affiliated with the National
Association from 1937 until September 22, 1942, when by referendum
it voted to terminate its relationship with the National Association,
and to become an independent labor organization, the Chicago Workers
Union .4 The National Association refused to honor this disaffiliation,
and chartered the Association Local for the employees of the Chicago
Distributing House to succeed the Chicago Local.
On February 21, 1938, a recognition agreement was executed between
the Company and the Chicago Local of the National Association on
behalf of the hourly rated non-supervisory employees of the Chicago
Distributing House. By this agreement, the Company recognized the
Chicago Local as exclusive agent for employees of the Chicago Dis-
tributing House for the purposes of collective bargaining on all sub-
jects exclusively Iocal in character, and recognized the National Asso-
ciation as exclusive agent on all subjects not within the jurisdiction
of the Chicago Local. The agreement provided that whenever a
question arose as to whether the National Association or the Chicago
Local had jurisdiction over the subject matter involved in the bar-
gaining, the Company would bargain with the proper party upon
written notice to it by the .National Association, concurred in by the
Chicago Local, determining the. jurisdiction. The agreement provided
that it could be terminated by either party upon written notice at least
30 days prior to the cancelation date, provided that no cancelation be
prior to January 1, 1939. 'This agreement had not been terminated at
the time of the hearing. About the time that the Company entered into
this recognition agreement with the Chicago Local, covering the
Chicago Distributing House, the Company entered into similar recog-
nition agreements with the respective locals of the National Associa-
tion covering the other distributing houses of the sales department.
The National Association's constitution and bylaws provides that
locals chartered by the National Association may not adopt a constitu-
tion or bylaws in contravention to the National Association's consti-
tution, or to the policies of the National Association. Contracts ex-
ecuted or liabilities incurred by any local on behalf of the National
Association require authorization in writing by the National Associa-
tion; collective bargaining on behalf of any local must conform to the
collective bargaining program of the National Convention. The sole
authority to execute contracts with respect to wages, hours of em-
ployment, and other matters of national scope, and such matters which
had not been satisfactorily settled by locals are vested in the National
40n January 19, 1943, the Chicago Workers Union voted to request affiliation with the
United. At the time of the heariug,this request had not been , acted upon.
VVESTERN 'ELECTRIC 'COMPAN'T;'INC'ORPORATED 1461
-Association. Representatives and officers of each local are designated
as the agents for collective bargaining 1;urposes in their respective
locations concerning only local matters, and may enter into contracts
in behalf of their respective'locals on such matters.
' ' The record indicates that the Chicago Local of the National Asso-
ciation -and the Company, through its Chicago Distributing House,
have executed several agreements between 1939 and 1942. These
agreements covered grievances and methods of procedures relating to
the adjustment of grievances, wage increases, seniority, upgradings;
,downgradings, lay-offs, and hiring 'procedures, and pay-roll deduc-
tions with respect to the employees of the Chicago Distributing House.
The Chicago Workers Union, relying upon the recognition agreement
and these agreements, contends that the Chicago Local has maintained
a formally separate identity, and has so been recognized by the Com=
pang. It therefore asserts that the bargaining has been essentially oii
'a local basis, with the result that the employees of the Chicago Dis-
tributiug House constitute an appropriate unit.
It also appears from the record, however, that the National Associa-
tion and the Company have bargained on a national basis as evidenced
by the numerous agreements executed between them. On March' 20;
1941, an agreement was executed covering wage-rate ranges for all the
distributing houses of the sales department. On April, 4, 1941, an
agreement covering the subject of new and'changed labor grade assign-
meats was executed. On August 31, 1941, an agreement was executed
covering normal work schedules, overtime, pay for holidays, and vaca-
tions. The provisions of this agreement are still in existence on a day-
to-day basis. An agreement, dated November 2`8, 1941, covered griev=
juice procedures, and provided that it was to replace.any.other agree-
ment between the company and the National Association or its locals,
on this subject" thereby superseding the .prior agreement•'between
the Company and the' Chicago Local.' An' agreement, dated Decem-
her 15, 1941; provided for a general wage increase, for all hourly rated
employees of the sales department. 'This agreement recited that ex-
clusive jurisdiction over demands for changes in wages at the dis-
tributing houses of the Company -was to be vested in the National
,Association. Oi_February 6, 1942, an agreement was executed pro-
viding for time off for union activity. 'During August 1942, an agree-
ment was concluded between the Company-and the National Associa-
tion, which had not been signed at the time'of the hearing, covering
normal work schedules, overtime, pay allowances for holidays, vaca-
tions, and termination allowances to employees laid off because of lack
of work.5 On October l,'1942 , the Company entered into separate
6 This agreement had not been signed because the parties were awaiting a decision by the
National War Labor Board respecting the wage provisions.
1462 DECISIONS OF NATIONAL LABOR RELATIONS , BOARD
agreements with the National association covering, respectively,'trans-
fer, ]ay-off procedure, and hiring and rehiring procedures. • ,
From the facts set forth above, it is clear that collective bargaining
between the Company-and the National Association and the Chicago
Local has been carried on--,in accordance, with the provisions of the
National Association's constitution and bylaws. The bargaining on
matters of wages, hours, and general working conditions has been
conducted by the, National Association for the entire sales department
and changes resulting from this bargaining have been applied to all
the distributing houses. While the Chicago Local has maintained a
formally separate identity, and has entered into contracts with the
Company, these separate contracts have been on matters of an; essen-
tially local character. The local agreements are not inconsistent with
bargaining upon a Nation-wide basis.: They merely implement the
basic conditions and general principles established by the National
Association contracts and adapt them to the conditions peculiar to
each plant or distributing house. Manifestly it would be unrealistic
for the parties to attempt to make uniform national provisions on-all
subjects with no allowance for ,leaving- purely local, matters to be
adjusted on a local basis. Upon the entire record, we are convinced
that the primary matters of collective bargaining have been negotiated
on a national basis for the entire, sales department and that the bar-
gaining engaged in by the Chicago Local of the National Association
has been of a limited and supplementary character: Accordingly, we
find that a unit consisting only of the hourly rated non-supervisory
employees at the Company's Chicago Distributing House is inappro-
priate.
IV. THE QUESTION CONCERNING REPRESENTATION
Since 'the bargaining unit sought to be established by the petitions
is inappropriate, as stated in Section III, above, we find that no
question has arisen, concerninguth