International Ass'n v. National Labor Relations Board
Opinion of the Court
The Serrick Corporation, of Ohio, has a plant in Muncie, Indiana, in which it manufactures bolts and screws, automobile moldings, refrigerator parts, and stenotype machines. It is engaged in interstate commerce and has an annual pay roll in excess of one million dollars. Its relations with three labor organizations, which we designate as indicated below,
I.A.M. also challenges the portions of the order which require the employer to deal exclusively with U.A.W. as representative of the production employees. This is done because the Board refused to hold an election prior to its decision on July 27, 1938, and to defer its decision pending an election, notwithstanding it was advised by I.A.M. on July 23 that a majority of the production employees had shifted affiliation from U.A.W. to I.A.M. between the hearing, which ended on November 15, 1937, and the date of the order. This contention may be disposed of briefly, before turning to the principal issues.
I. At the hearing it was stipulated that U.A.W. held applications of a large majority of the production employees. Furthermore, the evidence shows that this majority had been created as early as the preceding 10th of August. No attempt was made by I.A.M. at the hearing to show that such a shift had then occurred. Nothing in the record indicates that it took place. Notice of I.A.M.’s claim of subsequent change was not given to the Board until four days prior to its decision. No effort was made, pursuant to Section 10 (e), 29 U.S.C.A. § 160(e), to apply to a court for leave to adduce additional evidence. In addition to failure to exhaust this judicial remedy, two considerations support the Board’s refusal to call an election in the present circumstances. First, there is nothing to indicate that the unfair practices, which the Board and (as will appear) we have found existed, were remedied until after the order was entered. Therefore, any shift in majority affiliation between the hearing and the decision, had it occurred, presumably must have been affected or effected by them. Furthermore, the case is not one in which the majority at the time of the hearing was doubtful or improperly constituted, as by the employer’s aid or inclusion of ineligible members. Whatever may be the rule when such defects exist,
II. Upon the principal issues, first a preliminary and then a more complete statement of the circumstances out of which this controversy arose are required. Serrick Corporation was organized under the laws of .Ohio with authority to do business in Indiana. It has a plant in Defiance, Ohio, with which we are not concerned. Late in 1936 it acquired the business of Acme Machine Products Company, of Muncie, Indiana, and in January, 1937, that of John Lees Company, of Indianapolis. It brought the Lees Company assets and some of its personnel, including both managing officers and employees, to Muncie. Thereafter it operated the business derived from the two companies as a single enterprise under a single roof as the “Acme-Lees Division.” It employed some 800 persons, of whom approximately
In March officials of the company began to address the Association on the subject of “outside” unions, adversely to the latter, although at the same time the company made a collective bargaining contract with Local 453, Buffers and Polishers. In May U.A.W. began an intensive plant-wide campaign to enroll all employees, except supervisory and clerical ones and buffers and polishers, all of whom were ineligible to membership. The employer immediately converted Acme Welfare into an active company union to hold employees in line and keep them out of U.A.W. The company’s opposition was strenuous and determined. During June and early July numerous and persistent unfair labor practices were perpetrated; Nevertheless, U. A.W.’s campaign gained in effectiveness during June, July, August, and even in September. On August 10 it had acquired a clear majority of all eligible employees and demanded exclusive bargaining rights' for them, including the toolroom. On August 16 U.A.W. filed with the Board a petition for certification under Sec. 9(c) of the Act, as exclusive representative of production workers.
I.A.M. did not appear upon the scene officially until July 28. As will be shown later in detail, the company failed in its use of Acme Welfare to oppose U.A.W. and abándoned it as a company union about the middle or latter part of July. At the same time a group of toolroom employees began to discuss and promote organization of that room for I.A.M.' Their efforts resulted in a meeting with an organizer for I.A.M. on July 28, at which a narrow majority of toolmen signed I.A.M. cards. In rapid succession followed negotiations with the management, recognition and signing of the closed-shop contract covering the toolroom on August 11. The contract was antedated to August 6.
Before setting forth further essential facts, a more concrete statement of the basic issues is appropriate. The nature and importance of the issues, together with the division between the Board and its trial examiner
III. Two basic issues are involved. Under the Wagner Act a closed-shop contract is valid only if it is made with a labor organization which is (1) “not established, maintained, or assisted” by any unfair labor practice; and (2) is the representative of the employees in the appropriate unit covered by the agreement when made.
The power to determine appropriateness of the unit is vested in the Board, not in the employees, the trial examiner or the courts.
IV. In the decision of questions of fact, the Board’s findings are made conclusive, if supported by evidence,
V. As to the first question, we are required to determine, preliminarily, what evidence should be taken into account. To support the view that organization of the toolroom for I.A.M. was an entirely free and spontaneous movement of the toolmcn, uot aided by any unfair labor practice, it is argued that what occurred in the toolroom between July 28 and August 6, when the company consented to the closed-shop provision, was wholly separate and disconnected from the remainder of the long and plant-wide controversy; that what took place elsewhere in the plant before, during and after this brief period has no bearing upon the organization for I.A.M. or upon its negotiations and agreement with the management. As petitioner states the argument, “the record is clear that there were no employer activities of any kind, coercive or otherwise, operating in any way to assist the International Association of Machinists in acquiring membership prior to the 28th of July. Since at that time the I.A.M. had obtained an uncoerced majority, any subsequent activities on the part of the employer are either irrelevant or are permissive under the Act.” In effect we are asked to confine our own and the Board’s consideration of the evidence to occurrences in the toolroom during a nine-day interval. We are unable to separate events so artificially from their background and consequences,
VI. The toolroom episode was merely one phase of a plant-wide controversy lasting from May to October. The tool-
In these circumstances the toolroom became a “key point” in the labor controversy. If compliant with the employer’s desires, it gave the company opportunity to resist and possibly defeat a general campaign to organize the plant by undesired “invaders.” The evidence, summarized by the Board in its findings, shows that the employer seized the opportunity when other means had failed. The employer’s close connection with the organization of the toolroom is shown by (1) its strenuous and unrelenting campaign from May to October
At the time of the merger, Serrick Corporation inherited from Acme Machine Products Company (Muncie) and John Lees Company (Indianapolis) not only plant, equipment and good will, but also managing officers and employees, as well as the then innócuous employees’ “social” organization, Acme Welfare. Among executives were Murphy, vice president and general manager, Westlund, works manager, and Wise, tool supervisor, who came from John Lees Company, and Lewis, personnel director (also president of Acme Welfare), who came from the Acme Company. Significantly, among John Lees Company employees inherited a'fter long service with Murphy, Westlund and Wise at Indianapolis, were McCoy, toolroom foreman, and Byroad, Fouts, Shock, Baker, Bolander and Dininger, who (except McCoy) became the chief open organizers of the toolroom for I.A.M. Sharpe, tool-room committeeman for Acme Welfare (until July when he joined U.A.W.), came with Lewis, his schoolmate and boyhood friend, from Acme Machine Products Company. As bearing upon the alleged independence and freedom of the toolroom from employer domination, pressure and interference in lining up with I.A.M., the relations between these executives and employees require close scrutiny. The most active open organizers for I.A.M. were Fouts, Shock, Byroad and Bolander, with Baker and Dininger assisting. The first four also, together with Sharpe, were active in the company union, Acme Welfare, until it “blew up” almost contemporaneously with the entry of I.A.M. All four had worked with Murphy, Westlund and McCoy, three of them for periods extending from ten to fourteen years, Bolander for at least four years. With these facts in mind a summary of the main course of events will throw light on the question whether they acted freely and independently or as minions of the employer.
After the merger, as has been stated, the plant continued unorganized, except that Acme Welfare continued as before, Lewis maintaining his dual role, as personnel director and Acme president. In February or March Lewis and Poole (Westlund’s predecessor) through Acme Welfare and otherwise warned employees against “outside” unions, but at the same time the company made the collective bar
Sensing the failure of Acme Welfare to accomplish its purpose, about July 1 the company decided to reorganize it. Shortly before July 15, Lewis asked Sharpe to sign up the toolroom for a new association, saying, “We are going to reorganize the organization.” Fouts knew of the intended reorganization before Sharpe did, and at a time when he, Byroad, Shock and others were beginning to talk I.A.M. It did not materialize. Byroad, Fouts and Shock began discussing A.F.L. for the toolroom about the middle of July. At the same time Lewis resigned as Acme Welfare’s president at Westlund’s command, the company having discovered finally that it was a company union. From then on Acme Welfare faded out of the picture as a labor organization.
Contemporaneously with the “fade-out”' of Acme Welfare during the latter part of July, I.A.M. faded in, through the efforts of Byroad, Fouts, Shock, etc., in the tool-room. Following this success, Production Lodge No. 1200, I.A.M., entered the lists early in August to contest with U.A.W. for representation of production employees. Fouts, Shock, Byroad and Baker, aided by Bolander and Dininger, actively organized the toolroom and I.A.M. Lodge No. 35, soliciting on company time and property, taking the strange straw vote,
With this alleged majority, Shock, Fouts, Byroad and Bolander, accompanied by McCoy and one Keil, as well as McDonald, opened negotiations with Westlund and Murphy on August 3. The proposed contract contained provisions for a 40-hour week, wages (not finally specified in detail until August 11), and a closed shop. Despite Murphy’s frequently expressed hostility toward “outside” unions and his consistent refusal before and after this time to recognize a C.I.O. affiliate as a bargaining agency, Shock, supported by McCoy, “convinced” him in a single conference lasting for an hour and a half to two hours that he should accept the closed shop and blank wage provisions. He asked for a 44-hour week, was assured there would be little trouble about that, and reserved the right to submit the contract to Serrick,
Meanwhile U.A.W. - had continued organization and had secured a large majority of the production workers. On August 10, Clark, a U.A.W. organizer, and Collins, an employee, conferred with Westlund, Lewis and Stillwagon, demanding recognition for U.A.W. as bargaining agency for the plant including the toolroom, but excluding buffers and polishers. Westlund says that following the conference he notified Murphy of it by telephone. Significantly or otherwise, the I.A.M. closed-shop contract for the toolroom was signed on August 11 and antedated to August 6. Toolroom employees were notified, and on August 13 more than 20, perhaps 25, who refused to join I.A.M., were discharged.. A few others then or later joined I.A.M. to preserve their jobs or secure reinstatement. On August 14 the company amended its contract with A.F.L. Local No. 453, Buffers and Polishers, to provide for a closed shop.
In contrast with the precipitate execution of these contracts are the negotiations with U.A.W.
Between August 17 and 20 a field examiner for the Board attempted to bring about a settlement and secured the consent of U.A.W. and I.A.M. to an election among production workers. Murphy refused to agree, demanding separate elections for what he called the John Lees “division” and the Acme “division.” • U.A. W. agreed to this, but I.A.M. declined. Obviously, here Murphy was following the policy of “divide and conquer,” as he had done in the toolroom and in amending the buffers’ and polishers’ contract on August 14. All attempts at settlement failing, U.A.W. called a strike on August 25. The plant was closed for two weeks. The corporation maintained its refusal to recognize U.A.W. Murphy questioned its majority, demanded a list of its members, which U.A.W. declined to give him, and rejected its counterproposal for comparison of its membership cards and the company’s payroll by the regional director of the Board. This conduct may be contrasted with his, Serrick’s and Westlund’s unquestioning acceptance of McDonald’s statement that he would furnish proof of I.A.M.’s majority in the toolroom, and their acceptance of the closed-shop provision before he did so.
On August 27 the company sued in the state court for an injunction against picketing. The trial judge secured a truce and the plant was reopened September 7. Subsequent conferences between U.A.W. and executives came to naught for inability to agree on wage rates and continued refusal of the company to recognize U.A.W. as exclusive bargaining agency.
This mere recital of principal events discloses sufficiently the employer’s determined purpose, never relaxed, to have nothing to do with U.A.W. and to use 1. A.M. to keep U.A.W. out of the tool-room and the plant. The record is replete with evidence of other acts by executives and foremen which sustain this view.
Lewis warned, cajoled and threatened against the C.I.O. “invasion” and “outside” unions at Acme Welfare meetings and otherwise. In June or early July he told a meeting of Acme Welfare committeemen, “Boys, we don’t want the C.I.O. in this plant. I know of a lot of things that is going on out in the plant, and * * * I have got a couple spotters up to the C.I.O. hall every meeting they have.” To the association he said that C.I.O. was “merely a union coming into our plant to take over the management. We don’t want nothing like that in here. If it gets in to this plant all your privileges will be taken away from you.” At an association “beer party” for women, he put his feminine guests on record by taking a rising vote of “preference” between C.I.O. and Acme Welfare, after haranguing them against C.I.O. The result was almost unanimous for Acme. In July he asked Mona Armstrong to circulate an Acme solicitation paper among production workers. In August he told her, “If you had got those papers signed * * *, you would be still working.” He warned Mrs. Kitchen, cafeteria employee, not to wear her C.I.O. button, saying that if Murphy or Westlund should see it, “they would feel bad about it * * * just like waving a red flag in front of a bull.” He told Levi Benn, discharged from the toolroom on August 13, “Benn, I am sorry this happened. When this thing was first started it was only for a bluff and the fellows called the bluff and we had to go on and do it.”
In addition to Murphy’s activities, stated above, is Sharpe’s undenied statement that Shock told him in July that he had known Murphy from boyhood, and that Murphy had said lie would not recognize a C.I.O. union and would close the plant rather than deal with U.A.W.; that he (Murphy) hadn’t had a vacation, would get on his yacht and take a nice fishing trip. This is confirmed by Murphy’s statement to Clark between August 11 and 25, “Let them strike and get it out of their system * * * just call me up and I will close the plant down until we get it settled,” followed by a similar statement to the chief of police. The most conclusive evidence of his attitude is found in the circular which he signed and distributed to all employees on August 15, four days and one, respectively, after signing closed-shop agreements with I.A.M. and the buffers’ and polishers’ union.
Serrick agreed, apparently instantaneously, to the closed shop for I.A.M.; reproved Murphy in strong terms for consenting to a monetary settlement with the discharged toolmen, though he finally agreed under pressure to payment of two weeks’ wages, which, however, never was made; refused at all times to recognize U.A.W. except to bargain for its own members. In line with these facts is Allison’s testimony, denied by Shimer, night superintendent, of the latter’s statement on July 26 that Serrick would recognize an A.F.L. organization, but not a C.I.O. one.
The record contains equally abundant evidence of assistance to I.A.M. and obstruction to U.A.W. by foremen and minor supervisory officials, who reflected the attitudes and purpose of the management. A few instances are summarized in the margin.
Fouts, frequently described as “assistant foreman” in charge of the roll department, worked under Murphy, Westlund, etc., with John Lees Company for twelve years. He solicited repeatedly for Acme Welfare, then shifted suddenly to active solicitation for A.F.L. Before Sharpe resigned as toolroom committeeman for Acme Welfare, Fouts had knowledge of Lewis’ plan for reorganizing it. He reported to Lewis that he “didn’t see how the hell we can sell the Welfare Association to the employees in the toolroom when the committeeman himself didn’t believe in it.” In soliciting Levi Benn to join A.F.L., he asked, according to Benn, “if I didn’t think it would be my job if I didn’t join.” In the light of these facts Stevenson’s statement that Fouts told him, in soliciting him first for Acme Welfare and later for I.A.M., that he wanted him to join “just in order to beat the C.I.O.,” and that “if I would go in and didn’t want to stay, that would be all right, just as long as they got in enough to beat them out, we could all help out,” is not unworthy of belief.
Shock was a principal organizer of I.A.M. and became its president. He worked for John Lees Company in Indianapolis for fourteen years before going to Muncie. According to Sharpe, he admitted having known Murphy “since I was a kid — from what he told me he absolutely would not recognize the C.I.O.” Westlund acknowledged close acquaintance with Shock dating back more than ten years when they worked together for John Lees Company. Shock also solicited for Acme Welfare before he turned to I.A.M. He told Robert Bunch during the latter part of July, “Murphy made the statement that before the C.I.O. would come in there, they would shut down the plant.” He denied saying at the conference with Murphy on August 3 (when Murphy consented to the closed shop) that so far as he was concerned “after that trouble was settled, why they could tear up the contract,” and Murphy confirmed his denial. But Keil, who was present apparently at Murphy’s invitation, testified directly that Shock made the statement, and the testimony of three other witnesses gives strong support to Keil’s assertion.
Byroad has a history even more interesting than those of Fouts and Shock. He, too, worked for John Lees Company in Indianapolis, while Westlund, McCoy, and Wise, tool supervisor, were connected with the company, and with McCoy as far back as 1916. Whether he was employed continuously by the John Lees Company from that year until the plant was removed to Muncie does not appear. At any rate, he was employed there as early as 1928 and first went to Muncie on February 6, 1937. He remained only one week, leaving and not returning until early in July. . Immediately on coming back he signed first an Acme Welfare card, then a C.I.O. card, but, to quote his own words, “gave them [C.I.O.] no money.” According to Keil, Byroad also solicited for C.I.O. “when he first came in there, but he, for some reason or other, dropped the C.I.O. and became a sort of organizer for the A.F.L. affiliate.” Within a few days after lining up with C.I.O., he discussed the situation with Shock, Fouts and Baker, and became, with the possible exception of Shock, the most active and vigorous solicitor for A.F.L., spending as much as 75 to 80 per cent of his time at this, according to some of the testimony. He not only solicited extensively and continuously on company time and in the toolroom, but collected dues at the bench where he worked. He threatened some employees, including Keil, with loss of their jobs if they did not sign up with A.F.L., cursed others for not doing só (Levi Benn),and told Sharpe: “Mac [McCoy] knows what I am doing. Mac is an old A.F.L. man himself. He wants us to get in the A.F.L., but he don’t want us to have anything to do with the C.I.O.” He took the so-called straw vote about July 20 and reported the alleged 80 per cent preference for I.A.M. His testimony on cross-examination concerning the contrast between the reported percentage and the majority of 34 which actually materialized was, to say the least, embarrassing. After conferring with Shock, Fouts and Baker, he was “delegat-. ed” to find an A.F.L. organizer and did so.
Byroad’s peculiar relations with the management, the circumstances of his various arrivals and departures, and the nature of his activities raise the question whether he was a bona fide employee or actually an employer’s representative in the guise ' of an employee. They call to mind forcibly Lewis’ assertion that he had “a couple spotters up at C.I.O. at every meeting.” Whether the statement was made before or after Byroad’s July ar- " rival, his part was consistent with such a function and with the management’s evident willingness to have it performed. From the evidence the inference is permissible that he was brought in both for purposes of espionage upon C.I.O. and to organize the toolroom for I.A.M. He came just when Acme Welfare was breaking down. He went through the motions of lining up with it and solicited others to do so. Then he shifted, nominally, to C.I.O. Just as suddenly he shunted himself to I.A.M. All this occurred within three weeks. He remained steadfast to the last shift. He was the leader in organizing for I.A.M. and became its committeeman. He was given almost complete freedom to carry on his organizing activities on company time and property. McCoy’s single and none too harsh reproof came lightly and late to his ears. When the task was completed he left the employment without apparent intention of returning and after negotiations which resulted in tender of another job at his old home in Indianapolis. He came back only after the hearing had begun and at Baker’s solicitation. All this may be consistent with his exercising the rights of a free and independent laborer. On the other hand, the inference is not unreasonable or arbitrary that his activities in behalf of I.A.M. were the company’s activities and constituted unfair labor practices.'
Little - further need be said concerning Bolander, Dininger and Baker. Bolander acted as foremán on the third shift, which worked at night, when McCoy was absent. He. likewise worked for four years for John Lees Company before going to Muncie. He, too, joined Acme Welfare, at McCoy’s instance when Sharpe solicited him. McCoy’s statement that he (Bolander) “will sign right now because he is not allowed to hire and fire,” shows McCoy’s recognition of Bolander’s status as foreman of the night shift in McCoy’s absence, though it also shows that McCoy did not consider this to disqualify Bolander for membership. He permitted Wheeler. to solicit and pass out A.F.L. blanks at the foreman’s desk. Dininger also acted as night foreman in the toolroom, and according to McCoy’s statement had power to “lay off” meh, though apparently not to discharge them. He not only was ac
In summary, Byroad, Shock, Fouts and Bolander combined in themselves the capacities of (1) old and trusted employees under Murphy, Westlund, Wise and McCoy at John Lees Company in Indianapolis ; (2) active soliciting agents and promoters of Acme Welfare until it gave up the ghost; (3) principal organizers of the toolroom for I.A.M.; and (4), as will be shown, except for Byroad, minor supervisory officials of the company. Acme Welfare disappeared from the scene as a “labor” organization just as I.A.M. was entering through their efforts, though the conflict of the management with U.A.W. continued with rising bitterness. Contemporaneously with this change the former John Lees executives took over from Lewis, who came from Acme Products Corporation, the direction of important labor policies and negotiations. With Lewis’ eclipse, Sharpe, his boyhood friend, sickened of his servile role and refused to continue in it for the new authority. But for Byroad, Shock, Fouts and Bolander no such transfer of loyalties was required. Acme Welfare was a company union. It follows necessarily that its leading promoters were company representatives. Men accustomed to such submission seldom regain independence overnight. The interval, if there was one, required for the transfer of allegiance by Byroad, Fouts, Shock and Bolander from Acme Welfare and the company to I.A.M. was too brief for disruption of the old and basic loyalty. The evidence supports the conclusion that it was not disrupted, but continued, though manifested in less obvious but more effective form. All that they did, therefore, is imputable to the company. Without their efforts’ no majority for I.A.M., nominal, assisted or otherwise, would have been created on July 28 or at any other time prior to August 11. With them, the majority was not freely and independently created.
Their relations to the management also give substance to the view that they had actual, though not officially nominal, supervisory capacity.
VII. A further word is required concerning the antedating of the contract Throughout negotiations a written contract was contemplated. The schedule of wages was not settled finally until August 11. I. A.M. had no charter prior to August 8 or 9, hence could make no official contract until that time. The vote taken August 6 to accept Serrick’s condition of the 44-hour week was not communicated to the company until August 7. On that day, Byroad with Westlund’s acquiescence announced that the company would sign a closed-shop contract when Murphy returned. The contract specifically provides that it shall be effective from the time of execution. Yet when it was signed on August 11, it was antedated to August 6. It is contended that this was done because the agreement really was made on that day. However, U.A.W.’s demand for recognition was made on August 10. The inference is equally permissible that the motive was to circumvent this demand, despite denials by Murphy and Westlund, who negotiated with both unions.
The practice of antedating contracts may be legitimate or otherwise according to varying circumstances. Whatever its effect between the parties, rights of third parties should not be affected adversely, particularly when they involve interests so important and controversial as collective bargaining and the closed shop. To stamp with judicial approval a practice so questionable would invite evasion of the statute’s intended protections. The question is important in relation to assistance rendered by the employer during the interval covered by the antedating. The prac
In our view, therefore, the contract did not take effect prior to August 11. It follows that assistance given I.A.M. between that date and August 6 was unlawful. With the company’s acquiescence, a general, though informal, announcement was made (by Byroad) on August 7 that the company would sign such a contract when Murphy returned. This put the company openly on the side of I.A.M. It constituted a threat to the job of every non-member of I.A.M. in the toolroom. Byroad took full advantage of the threat in vigorous solicitation between August 6 and August 11. Without doubt the threat helped to keep the tenuous majority in line, if not to increase it. In its zeal to be rid of U.A.W., the management overreached itself. Permitting the premature announcement gave prohibited aid and comfort to I.A.M. The consequences of its haste cannot be overcome by the artifice employed.
VIII. We think therefore that the evidence fully sustains the findings of the Board that the employer unlawfully assisted I.A.M. to organize the toolroom and secure the closed-shop contract. The evidence is open to two possible inferences. Either the toolroom was entirely unaffected by the controversy which raged all about it, or it was in the very center of that conflict; either the toolroom employees were free from the pressure and intimidation, openly and constantly applied by the chief 'executive officers elsewhere throughout the plant, or they were its victims as were all others; either Byroad, Fouts, Shock, et al. suddenly recovered their independence after serving the management as far as they could in the company union, or their subservience continued when they turned to I.A.M. Only by ignoring all that occurred in the plant from May to October except what took place in the toolroom between July 28 and August 6 is the one set of inferences possible, and then only questionably so. Such limitation of judicial vision would eliminate the most revealing and convincing evidence ,in the record. It may be permissible for an employer merely to express a preference between two unions otherwise contending freely for position as bargaining representative, although this has obvious dangers and limitations and the final authority has not so held.
IX. It follows from what has been said that the Board did not find arbitrarily that the toolroom was not an appropriate unit. In the circumstances prevailing, the unit was subjected to the same unlawful pressures as deprived the union of its capacity for representation and the closed-shop contract of validity. That fact was proper for the Board to consider in determining whether to apply its own so-called “Globe doctrine.”
Independently of assistance from the employer, there was evidence sufficient to sustain the Board’s decision concerning the unit. Although refusal to apply the “Globe doctrine” was based in part on such assistance, two other reasons were assigned, one of which was the existence of a substantial U.A.W. minority in the toolroom. Under the statute the Board is empowered in general terms to designate an “employer unit, craft unit, plant unit or subdivision thereof.”
The order of the Board is affirmed.
Local 459, International Union, United Automobile Workers of America, -will be called “U.A.W.,” except as the context clearly indicates reference to the International Union. Both are affiliated with the Congress for Industrial Organization, which we call “C.I.O.”
Lodge No. 35, International Association of Machinists, Tool and Die Makers, and Production Lodge No. 1200, are affiliated with the International Association of Machinists, and through it with the American Federation of Labor, designated “A.F.L.” Lodge No. 35 and Lodge No. 1200 will be called “I.A.M.,” except as specifically designated by their respective numbers, when separate treatment is required.
Affiliated also with .A.E.L. is Metal Polishers, Buffers, Platers and Helpers International Union, Local 453, which will be referred to as “Local 453, Buffers and Polishers.” This organization is not involved here, except by reference in some of the evidence.
29 U.S.C.A. § 158(1), (2), (3), (5), and § 152(6), (7). The latter define “commerce” and “affecting commerce.” The former provide:
“It shall be an unfair labor practice for an employer—
“(1) To interfei-e with, restrain, or coerce employees in the exercise of the rights guaranteed in section 157 of this title.
“(2) To dominate or interfere with- the formation or administration of any labor organization or contribute financial or other support to it * * *.
“(3) By discrimination in regard to hire or tenure of employment or any term or condition of employment to encourage or discourage membership in any labor organization: Provided, That nothing in this chapter, or in * * * any other statute of the United States, shall preclude an employer from making an agreement with a labor organization (not established, maintained, or assisted by any action defined in this chapter as an unfair labor practice) to require as a condition of employment membership therein, if such labor organization is the representative of the employees as provided in section -159(a) of this title, in the appropriate collective bargaining unit covered by such agreement when made.
* * * *
“(5) To refuse to bargain collectively with the representatives of his employees, subject to the provisions of section 159 (a) of this title.”
See tlie proviso to § 158(3), cit. supra, note 2, and text circa note 9, infra.
Cf. National Labor Relations Board v. Fansteel Metallurgical Corp., 1939, 306 U.S. 240, 59 S.Ct. 490, 83 L.Ed. 627, 123 A.L.R. 599.
Cf. National Labor Relations Board v. Remington-Rand, Inc., 1938, 2 Cir., 94 F.2d 862, 869, 870, certiorari denied, 1938, 304 U.S. 576, 58 S.Ct. 1046, 82 L.Ed. 1540; National Labor Relations Board v. Biles-Coleman Lumber Co., 1938, 9 Cir., 96 F.2d 197, 198.
In re Cudahy Packing Co., 1939, 13 N.L.R.B. No. 61.
The petition was amended September 27 to include toolroom employees. On October 5 the Board issued a complaint against the corporation charging, among other things, that it had improperly discharged 17 production workers and 18 toolroom employees. The corporation answered denying the charges, and alleging that the discharge of the toolmen was obligatory under the closed-shop contract. On October 14 I.A.M. intervened. From October 18 to November 15 the trial examiner heard evidence, and in February, 1938, made Ms findings and recommendations to the Board. As to their nature, see note 8, infra.
His findings and recommendations with respect to the toolroom were favorable to I.A.M.’s contentions, but the Board was unanimous in taking the opposite view. As to other matters, the examiner and the Board were in substantially complete agreement.
See the proviso to § 158 (3), cit. supra, note 2.
29 U.S.C.A. § 159(b).
Id., § 160(e).
Consolidated Edison Co. v. National Labor Relations Board, 1938, 305 U.S. 197, 229, 230, 59 S.Ct. 206, 83 L.Ed. 126.
29 U.S.C.A. § 160(b); Consolidated Edison Co. v. National Labor Relations Board, cit. supra note 12.
The Board, consistently and with judicial approval, has considered “background” evidence in unfair practice cases, particularly when, as here, it discloses a prior hostile attitude of the employer. Pennsylvania Greyhound Lines, Inc., 1935, 1 N.L.R.B. 1, 23, affirmed, 1938, 303 U.S. 261, 58 S.Ct. 571, 82 L.Ed. 831, 115 A.L.R. 307; Wheeling Steel Corp., 1936, 1 N.L.R.B. 699, 709, enforced, 1938, 6 Cir., 94 F.2d 1021; National Labor Relations Board v. National Motor Bearing Co., 1939, 9 Cir., 105 F.2d 652; Hamilton-Brown Shoe Co. v. National Labor Relations Board, 1939, 8 Cir., 104 F.2d 49, 52. Subsequent occurrences similarly have been taken into account. National Labor Relations Board v. National Motor Bearing Co., supra.
The record shows that some production employees received wages equal to those generally paid in the toolroom.
Unless otherwise indicated, all dates referred to were in 1937.
This agreement was not involved in this proceeding, being questioned by none of the parties.
Except for tender of the collective bargaining contract-the last of July, the association reverted to its former status of a purely “social” and “welfare” organization. In September it was incorporated, the corporation taking over its assets and functions from which the charter specifically excluded activity as a labor union.
Byroad conducted this, allegedly going from man to man, asking his preference between A.F.L. and C.I.O., recording the “votes” by tally mark on his ■ sheet of paper. In view of tlio final alignment, it is unbelievable that 80% of the toolroom men indicated preference for A.F.L., as Byroad broadcast through the room, unless many of them did so with knowledge or suspicion of his relation to the management and fear of the consequences of any other answer.
That comparison of speed in negotiating and contracting with contending unions is evidentiary in showing interference or assistance, at least when considered with other acts, see Hamilton-Brown Shoe Co. v. National Labor Relations Board, 1939, 8 Cir., 104 F.2d 49, 53; National Labor Relations Board v. National Motor Bearing Co., 1939, 9 Cir., 105 F.2d 652; Swift & Co. v. National Labor Relations Board, 1939, 10 Cir., 106 F.2d 87.
See note 24, infra.
Of. note 24, infra.
Of. note 28, infra.
The circular deprecated the displacement of the employees’ “high moral [sic] and spirit of cooperation” by “a general feeling of dissatisfaction and unrest,” and continued:
“We frankly believe this change has been brought about by the activities of outsiders. * * ® It -must be obvious that * * * continuance of * * dissatisfaction will result inevitably in * * * loss of business to the company. * * * Should we be confronted with the necessity of making a choice between operating at a loss, or ceasing operations entirely, it would bo definitely to the advantage of the company * * * to stop operations and * * * salvage * * * the assets * * * rather than * * * continue * * * unprofitable operations. It is our understanding strangers have come to you and have promised to secure for you certain increases in wages and other benefits. * * * We sincerely hope you will not be fooled by these promises. *' * * You may be definitely assured we will not*40 at this time, or at any time in the future enter into any agreement, written or verbal, with irresponsible organizations, or associations. There is no place in our picture for groups whose only method of securing desired results is by the use of lawlessness, violation of property rights, or violence of any kind, and we will not operate this plant, if any of these conditions prevail. * * * ”
Reference will be made to only one act of Stillwagon, general superintendent. He told Mary King, in view of her refusal to sign a card for Acme Welfare: “There wasn’t any organization such as the C.I.O. going to tell them how to run the shop, they knew how to run it, and they didn’t need any help; that it was just stubbornness * * * we would either sign or go home, but if we went home and refused to sign, they would have to take it up with the management as to whether or .not we would work.”
Night Superintendent Shimer’s statement that “the foremen don’t like the C. I. 0.,” accompanied by the assertion that there was “going to be quite a lay-off” and that the C. I. O. would go first, made on July 26, two days before I. A. M.’s toolroom organization meeting, was borne out by the facts.
Warren Leet, production foreman, told Mona Armstrong about August 18 to take off her C. I. O. badge and join the A. F. L. Wright, characterized as “boss” of the cafeteria, told Bessie Price and Mrs. Kitchen to take off their C. I. O. buttons, and later discharged both for C. I. O. affiliation and activities. Pedlow, foreman in the handforming department (production), said to Allred, who was discharged on August 25, “If you d- fellows had sense enough to leave those badges [O. I. O.] off, the company would not be so hard on you.” Earl Gregory, production foreman, asked Marjorie Stoker about August 1 if she belonged to any union yet, and said that of the two unions, “A. F. L. is best.” Lynch, inspector and assistant foreman in the stenotype department, told John Hefley, “If we join the A. F. L. we get some place.” Edward Griffin, production foreman of the third shift in the punch press department, told L. Collins, “If you will join the A. F. L. you can get ten cents more on the hour.” Marvin Edwards, who acted as foreman for Gregory when he was away, engaged in general solicitation for A. F. L., and said to Jacob Gordon, “If you don’t sign up in the A. F. L., there is liable to be a strike here by the C. I. O., and you are liable to lose three or four weeks’ work.” Truax, assistant night foreman in the bolt shop of the production department, made remarks antagonistic to C. I. O. beginning in May, 1937, solicited for Acmé Welfare as late as the last of July, for A. F. L. in September even after the strike according to the testimony of several witnesses, and did not deny, when so charged by Joseph Conner, that he had been directed by the company to solicit for A. F. L. Lewis testified that Truax had the title of assistant foreman and supervisory functions.
Three witnesses testified without contradiction that in August immediately prior to the strike Theodore Fouts, assistant foreman in the handforming de
McCoy, foreman of the toolroom, was an old A. F. L. man, an employee of the John Lees Company at Indianapolis for at least twelve years, aided Sharpe in signing up Bolander as an Acme Welfare member late in June, “because he [Bolander] is not allowed to hire or fire,” told Sliarpe during the early part of July, “If the C. I. O. gets in here, this place will go to hell,” permitted active and open solicitation in the shop by A. F. L. representatives, complained because “the A. F. L. members come and tell me what they are going to do, hut the C. I. O. doesn’t say anything.”
Cf. note 28, infra.
Stevenson testified that immediately after the conference on August 3 Fouts told him that “the C. 1. O. was not as strong as they thought. * * * The A. F. L. would beat them easily. * * * They said if I would get in * * * I could drop it as soon as the trouble was over with, as they was going to do it too.” Maynard, TJ. A. W. committeeman, testified that on September 22 he asked Westlund whether the I. A. M. representatives in presenting the proposed contract had not asserted that “after they had gotten the contract and got the C. 1. O. out of the plant, kept them out of the plant, they could just tear the contract up, they wouldn’t need no union there,” and Westlund replied, “Well, no, not in just that many words, hut the statement was made.” Lewis’ statement to Benn on August 13 quoted in the text supra, note 23, that “it was only for a Muff” confirms the testimony of Stevenson and Maynard. Westlund, on direct • examination, denied Keil’s statement, but on cross-examination qualified the denial by saying he had no recollection of hearing C. I. O. mentioned. All this supports the statement of Benn, who belonged originally to U. A. W., was discharged on August 13, and later joined I. A. M., that Acme Welfare “later developed into I. A. M.”
See note 32, infra.
Lewis told Collins that assistant foremen who acted in the absence of foremen “recommend to hire and fire.”
It is to be emphasized that in Consolidated Edison Co. v. National Labor Relations Board, 1938, 305 U.S. 197, 59 S.Ct. 206, 83 L.Ed. 126, the Supreme Court merely assumed, for' purposes of discussing and refuting an argument of counsel, that it would not be an unfair labor practice for the employer merely to express a preference between two independent labor organizations seeking recognition. The language of the court (305 U.S. at page 230, 59 S.Ct. at page 217, 83 L.Ed. 126), referring to a statement made by an executive of the company at a meeting of - employees that •they were absolutely free to join any labor organization, was:
“Despite this statement and assuming, as counsel for the companies urges, that where two independent labor organizations seek recognition it cannot be said to be an unfair labor practice for the employer merely to express preference of one organization over the other, by reason of the former’s announced policies, in the absence of any. attempts at intimidation or coercion, we think that there was still substantial evidence that such attempts' were made in this case.”
That employees performing supervisory duties, but having no power to “hire and fire,” represent the employer when they engage in conduct amounting to unfair practices is established by Zenite Metal Corp., 1938, 5 N.L.R.B. 509, 515, 516, 518, enforced, National Labor Relations Board v. Zenite Metal Corp., 1938, 7 Cir., 102 F.2d 1006, and by numerous decisions of the Board, including Semet-Solvay Co., 1938, 7 N.L.
When other evidence of the actor’s agency for the employer is Jacking, “supervisory” or “disciplinary” authority supplies it. But lack of such authority only makes it necessary to show the agency in other ways. It does not negative the possibility that the agency may exist.
The doctrine takes its name from Matter of Globe Machine & Stamping Co., 1937, 3 N.L.R.B. 294. Briefly stated, it is to the effect that where the circumstances are such that the Board reasonably could conclude that either the craft or the plant unit would be appropriate for collective bargaining purposes and where either contention if unopposed would be adopted by the Board, it normally gives paramount weight to the wishes of the employees within the craft unit. Cf. Third Annual Report of the National Labor Relations Board (1938), pp. 167-174.
The statute' specifically requires that the unit be appropriate at the time when the closed-shop agreement is made. 29 U.S.C.A. § 158(3). As has been indicated, the effective date here was August 11, not August 6.
29 U.S.O.A. § 159(b).
Assuming that Congress intended the Board’s decision concerning appro-j priateness of the unit to be reviewable, as are its findings of fact, the review can go only to the question whether the de- ’ cisión is arbitrary, National Labor Relations Board v. Carlisle Lumber Co., 1937, 9 Cir., 94 F.2d 138; National Labor Relations Board v. Lund, 1939, 8 Cir., 103 F.2d 815, not to a weighing of “the equities” or a balancing of conveniences. The language of the court, speaking through Judge Thomas, in the latter case is pertinent: “Obviously 'all these provisions of the Act place a broad power of discretion, though not one that may be exercised arbitrarily, in the Board for the designation of an appropriate bargaining unit. * * * The question of appropriateness depends upon other factors such as unity of interest, common control, dependent operation,, sameness in character of work and unity of labor relations. There may be others; but, unless the finding of the Board is clearly arbitrary upon the point, the-court is bound' by its finding.” 103 F.2d at p. 819.
Dissenting Opinion
(dissenting).
I am unable to agree in so much of the decision as affirms the order of the Board holding invalid the closed shop contract covering the tool room workers. The opinion, as I think, spends itself upon the effort to establish the hostility of Serrick Corporation to United Automobile Workers of America (U.A.W.). Concededly, hostility existed and justified the Board’s findings of unfair labor practices in the ^employer’s efforts to sustain its old company union, but it had nothing to do with the controversy involved on this appeal. In this view, the opinion overlooks the single vital issue we have to determine— the issue involving the respective rights of two rival labor organizations whose existence is independent of the employer. For that reason, I am not concerned with the attitude of Serrick Corporation to U. A.W. The employer is not a party to this appeal. It has accepted the Board’s ruling,, and even before that, had abandoned support of the company union as a collective bargaining agency. Nothing that it did thereafter is shown either directly or impliedly to have had any relation to the tool room controversy. The right of International Association of Machinists (I.A.M.) Lodge 35 to represent the tool
If the question turned upon the weight to be given to the evidence, I should, of course, without hesitation acquiesce in the Board’s decision. But since the Board, in my opinion, has erroneously decided a question of law, the rule which binds me to accept its findings has no bearing.
The unfair labor practive found by the Board concerns the activities of six tool room employees: Fouts, Shock, Byroad, Bolander, Baker, and Dininger; and the responsibility of the employer for their - acts is, as I have said, placed upon the Board’s conclusion that they were supervisory employees and as such should be regarded as acting for the employer. Except for this definite finding, it is obvious the Board would have followed the recommendation df its examiner. But the admitted fact is that all of the above named employees were tool room workers and not “supervisory” in any sense which would make their organizational activities attributable to the employer. This is vouched by a stipulation filed in the record which the examiner and all of counsel considered as binding until its effect was for the first time challenged by the Board’s decision.
The findings, both of the examiner and of the Board, show that in the spring of 1937 one of the C.I.O.-affiliated unions (U.A.W.) began an intensive campaign to enroll members in the production department of the plant of Serriek Corporation. When this activity was at its height, the tool room employees, who compose a separate group of skilled machinists and receive higher wages, and whose working quarters are separated from the production department of the plant — and who are recognized in the industry as a separate unit — and so recognized by the Board,
A majority preference for I.A.M. having been determined 'on July 28, 1937, a meeting with an outside organizer was held, and 34 of the 63 employees of the tool room signed application cards, paid their dues, and obtained a charter. And within a few days thereafter their representative signed a closed shop contract with the employer. The Board’s examiner, who heard all of the evidence, found that the impetus to the organization under the auspices of I.A.M. came from the unwillingness of the majority to go along with U.A.W., and this unwillingness, he concluded, though agreeable to the corporation, was not inspired by any action on its part. On this basis he recommended that the contract dated August 6, 1937, should be held in all respects valid.
The opinion of the court appears to be largely influenced by the impression that the admitted hostility of the employer to the unionization of its plant by U.A.W. justifies the inference that the employer inspired and intended to inspire the tool room men to organize separately. This fancied strategy the opinion speaks of as the “policy of 'divide and conquer’,” but the record does not sustain this inference, and even if it did, such partiality, without more, never has been and never ought to be held an unfair labor practice. Cf. Jefferson Electric Co. v. National Labor Relations Board, 7 Cir., 102 F.2d 949, 957. If the rule were otherwise, it would afford the employer an easy method to control employee representation by simulated préference. The case we have does not turn upon any of these conditions, but rather upon the authority of Fouts and his companions to speak for the employer. If they were not authorized, then obviously their activities cannot be labeled employer activities. If the Board’s classification of these men is wrong, the ruling cannot be sustained. I think the decision as to the tool room contract should be set aside.
“Comes now The Serriek Corporation, respondent, by White & Raymond, its attorneys, Tho National Labor Relations Board by Colonel O. Sawyer, regional attorney for said Board, The International Union United Automobile Workers of America, Local No. 459, by Paul Brady, its attorney, and C. E. McDonald, representing tho International Association of Machinists, affiliated with the American Federation of Labor, and stipulate the following facts, to wit:
That the following list of names includes all tho employees of The Serriek Corporation at its Muncie Plant * * * with the * * * exception of foremen, office employees and other supervisory employees which were on the pay roll, which pay roll included the date of July 9, 1937 * * * ” (Italics supplied.)
Among the names of employees other than supervisory employees appear the names of Pout3, Shock, Byroad, Bolander, Baker, and Dininger.
This statement is conceded in the Board’s findings as follows:
“While ordinarily we have regarded as controlling the free choice of a majority of the employees in a well-defined craft as to the form of organization they desire, in the present case the respondent’s conduct in influencing such choice precludes the application of this doctrine in the determination of the appropriate unit or units.”
Cf. National Labor Relations Board v. Sands Mfg. Co., 306 U.S. 332, 342, 59 S.Ct. 508, 63 L.Ed. 682.
Reference
- Full Case Name
- International Ass’n of MacHinists, Tool and Die Makers Lodge No. 35, v. National Labor Relations Board
- Cited By
- 48 cases
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- Published