Aluminum Co. of AmericaDownload PDFNational Labor Relations Board - Board DecisionsJun 20, 194668 N.L.R.B. 750 (N.L.R.B. 1946) Copy Citation In the Matter of ALUMINUM COMPANY OF AMERICA , LAFAYETTE WORKS and UNITED STEELWORKERS OF AMERICA , C. I. O. Case No. 11-C-1200.-Decided June 20, 1946 DECISION AND ORDER On December 14, 1945, the Trial Examiner issued his Intermediate Report in the above-entitled proceeding, finding that the respondent had engaged in and was engaging in certain unfair labor practices and recom- mending that it cease and desist therefrom and take certain affirmative action , as set forth in the copy of the Intermediate Report attached hereto. Thereafter, the respondent and the A. F. of L.1 filed exceptions to the Intermediate Report and supporting briefs. Pursuant to notice to all parties, oral agreement , requested by the respondent and the A. F. of L., was held before the Board at Washington, D. C., on May 14, 1946. The respondent and the A. F. of L. appeared and participated in the argument. The Board has reviewed the rulings made by the Trial Examiner at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Intermediate Report, the respondent's and the A. F. of L.'s exceptions and briefs, and the entire record in the case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner, except as hereinafter modified. We agree with the Trial Examiner that, in acceding to the A. F. of L.'s request for the discharge of Warren Wilson under the circumstances set forth in the Intermediate Report, the respondent violated Section 8 (3) of the Act. The Trial Examiner has based his finding upon the following grounds, in substance : (1) that the contract between the respondent and the A. F. of L., which provided for maintenance of union membership as a condition of employment, expired on March 24, 1945, and therefore Wilson's discharge on April 5, 1945, for his failure to maintain member- 1 The American Federation of Labor and its affiliate , Aluminum Workers Union , No. 23120, are referred to collectively herein as the A . F. of L. 6R N. L. R B, No. 102. 750 ALUMINUM COMPANY OF AMERICA , LAFAYETTE WORKS 751 ship in the A. F. of L., could not be defended on the basis of the mainte- nance-of-membership clause of the contract; (2) that even if the contract were still in effect, the discharge would have been violative of the Ac: since the respondent knew that the A. F. of L.'s request for Wilson's discharge was based on his expulsion from the A. F. of L. because of his activities on behalf of the Steelworkers during the time that a question of representation was pending. We find it unnecessary to pass upon the second ground because we agree with the Trial Examiner that the con- tract between the respondent and the A. F. of L. expired on March 24, 1945. The respondent and the A. F. of L. contend that the terms of the expired contract were extended by oral agreement until May 20, 1945, when a new contract was executed. Although the record indicates that'the respondent continued to give effect to the provisions of the expired con- tract after March 24, 1945, the evidence does not show that there was any agreement by the respondent and the A. F. of L. to extend the terms of the contract beyond this date. Accordingly, we reject the con- tention of the respondent and the A. F. of L. and find that because the contract between the respondent and the A. F. of L. had expired before the discharge of Wilson on April 5, 1945, the maintenance-of-member- ship clause of this contract cannot serve as a justification for the discharge of Wilson. In the absence of a contractual provision which satisfied the requirements of the proviso to Section 8 (3) of the Act, it plainly was a violation of Section 8 (3) to discharge Wilson for failing to maintain membership in the A. F. of L. ORDER Upon the entire record in the case, and pursuant to Section 10 (c) of the National Labor Relations Act, the National Labor Relations Board hereby orders that the respondent, Aluminum Company of America, Lafayette Works, Lafayette, Indiana, and its officers, agents, successors, and assigns shall : 1. Cease and desist from: (a) Discouraging membership in United Steelworkers of America, affiliated with the Congress of Industrial Organizations, or encouraging membership in Aluminum Workers Union, No. 23120, affiliated with the American Federation of Labor, or any other labor organization of its employees, by discharging or refusing to reinstate any of its employees, or by discriminating in any other manner in regard to their hire or tenure of employment, or any term or condition of their employment ; (b) Engaging in any like or related act or conduct, interfering with, restraining, or coercing its employees in the exercise of the right to self-organization , to form labor organizations , to join or assist United 752 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Steelworkers of America, affiliated with the Congress of Industrial Organizations, or any other labor organization, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purposes of collective bargaining or other mutual aid or protection as guaranteed in Section 7 of the Act. 2. Take the following affirmative action, which the Board finds will effectuate the policies of the Act : (a) Offer to Warren Wilson immediate and full reinstatement to his former or a substantially equivalent position, without prejudice to his seniority and other rights and privileges ; (b) Make whole Warren Wilson for any loss of pay that he may have suffered by reason of the respondent's discrimination against him, by payment to him of a sum of r-,()-ley equal to the amount which he nor- mally would have earned as wages during the period from March 30, 1945, to the date of the respondent's offer of reinstatement, less his net earnings during such period; (c) Post at its plant in Lafayette, Indiana, copies of the notice attached hereto marked "Appendix A." Copies of said notices, to be furnished by the Regional Director for the Eleventh Region, shall, after being duly signed by the respondent's representative, be posted by the respondent immediately upon receipt thereof, and maintaind by it for sixty (60) consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by the respondent to insure that said notices are not altered, defaced, or covered by any other material; (d) Notify the Regional Director for the Eleventh Region in writing, within ten (10) days from the date of this Order, what steps the respon- dent has taken to comply herewith. APPENDIX A NOTICE TO ALL EMPLOYEES Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Re- lations Act, we hereby notify our employees that : We will not discourage membership in United Steelworkers of America, C. I. 0., or encourage membership in Aluminum Workers Union, No. 23120, A. F. of L., or any other labor organization of our employees, by discharging or refusing to reinstate any of our employees, or by' discriminating in any other manner in regard to their hire or tenure of-employment, except insofar as said conduct is protected by the proviso to Section 8 (3) of the Act. ALUMINUM COMPANY OF AMERICA, LAFAYETTE WORKS 753 We will not engage in any like or related act or conduct interfering with, restraining, or coercing our employees in the exercise of their right to self-organization, to form labor organizations, to join or assist the above-named or any other labor organization, to bargain collectively through representatives of their own choosing, and to engage in concerted activities, for the purpose of collective bargaining or other mutual aid or protection. We will offer to Warren Wilson immediate and full reinstate- ment to his former or substantially equivalent position without preju- dice to any seniority or other rights and privileges previously enjoyed, and make him whole for any loss of pay suffered as a result of the discrimination. ALUMINUM COMPANY OF AMERICA, LAFAYETTE WORKS, Employer. By ................................. (Representative) (Title) Dated ..................... NOTE.-The above-named employee, if presently serving in the armed forces of the United States, will be offered full reinstatement upon appli- cation in accordance with the Selective Service Act after discharge from the armed fore' This notice must remain posted for 60 days from the date hereof, and must not be altered, defaced, or covered by any other material. INTERMEDIATE REPORT Mr. William O. Murdock, for the Board. Messrs. Stuart, DeVol, Branigan & Ball, by Messrs. Allison E. Stuart and Michael T. Ricks, of Lafayette, Ind., and Mr William C. Winter, of Pittsburgh, Pa., for the Respondent Mr. James Robb, of Indianapolis, Ind., for the Steelworkers Mr. Lloyd W. Littell, of Lafayette, Ind., for Local 23120. Mr Hugh J. Gormley, of Indianapolis, Ind., for the American Federation of Labor. STATEMENT OF THE CASE Upon a charge duly filed by United Steelworkers of America, C. I. 0., herein called the Steelworkers, the National Labor Relations Board, herein called the Board, by the Regional Director for the Eleventh Region (Indianapolis, Indiana), issued its complaint, dated October 17, 1945, against Aluminum Company of America, Lafayette Works, Lafayette, Indiana; herein called the Respondent, alleging that the Respondent had engaged in and was engaging in unfair labor practices affecting commerce, within the meaning of Section 8 (1) and (3) and Section 2 (6) and (7) of the National Labor Relations-Act, 49 Stat. 449, herein called the Act. Copies of the complaint and the charge, accompanied by notice of hearing thereon, were duly served upon the Respondent, the Steelworkers, and Mr. Hugh Gormley, Regional Director of the American Federation of Labor. 754 DECISIONS OF NATIONAL LABOR RELATIONS BOARD With respect to the unfair labor practices , the complaint alleged in substance : (1) That the Respondent, on or about March 30, 1945, discharged Warren Wilson, and since that date has continuously refused to reinstate him to his former or substantially equivalent position, for the reason that he joined and assisted the Steelworkers, and engaged in other concerted activities for the purposes of collec- tive bargaining or other mutual aid or protection; and (2) that by the aforesaid acts, the Respondent violated Section 8 (1) and (3) of the Act. Pursuant to notice, a hearing was held at Lafayette, Indiana, on November 8 and 9, 1945, before the undersigned, W. P. Webb, the Trial Examiner duly desig- nated by the Chief Trial Examiner. The Board, the Respondent, and Aluminum Workers Union, No. 23120, A. F. of L., herein called Local 23120, were repre- sented by counsel and the Steelworkers and the American Federation of Labor by their representatives . All parties participated in the hearing. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evidence bearing on the issues was afforded all parties. The Respondent's answer, which was filed on November 5, 1945, admitted the jurisdictional allegations of the complaint and that the Respondent discharged Warren Wilson on the date alleged in the complaint and thereafter refused to reinstate him, but denied that it had engaged in the alleged unfair labor practices. On November 1, 1945, the American Federation of Labor, by its Regional Director, Hugh Gormley, filed a petition to intervene in this proceeding. The petition was granted by the Trial Examiner. At the beginning of the hearing, the Trial Examiner denied the motion of the American Federation of Labor to dismiss the complaint, but granted the right to renew the motion at the conclusion of the hearing. At the conclusion of the hearing, the motion of the Board to conform the pleadings to the proof with respect to formal matters was granted by the Trial Examiner, without objection. Ruling was reserved by the Trial Examiner on the motions of the Respondent and the American Federation of Labor to dismiss the complaint. Both of these motions are herewith denied by the undersigned. The parties waived the privilege of oral argument before the Trial Examiner. Briefs have been received by the undersigned from the Board and the Respondent. Upon tJie entire record in the case and from his observation of the witnesses, the undersigned makes the following: FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The Respondent, Aluminum Company of America, is a Pennsylvania Corpora- tion. It is engaged in the manufacture and sale of aluminum extruded shapes and tubing. The Respondent operates approximately 40 different plants located in 17 different States of the United States. The instant proceeding involves only the employees of the Respondent at its plant in Lafayette, Indiana, herein referred to as the Lafayette Works. The principal raw materials used at the Lafayette Works are pig aluminum , coal, coke, and lumber. The annual consumption of such materials at the Lafayette Works exceeds one million dollars in value, of which 75 percent or more is obtained from sources outside of Indiana. The finished products manufactured at the Lafayette Works annually, exceed one million dollars in value, of which 75 percent or more is distributed to points outside of Indiana . The Respondent concedes that it is engaged in commerce, within the meaning of the Act. ALUMINUM COMPANY OF AMERICA, LAFAYETTE WORKS II. THE ORGANIZATIONS INVOLVED 755 United Steelworkers of America, affiliated with the Congress of Industrial Organizations, and Aluminum Workers Union, No. 23120, affiliated with the American Federation of Labor, are labor organizations admitting to membership employees of the Respondent. III. THE UNFAIR LABOR PRACTICES 1. Introduction For the past several years considerable rivalry has existed between the American Federation of Labor and the International Union, Aluminum Workers of America, C. I. O.1 in respect to organizing the Respondent's employees at the Lafayette Works, of which there were approximately 4,000. In October 1942, pursuant to a petition filed by A F of L,2 a Board election was held in the Lafayette Works. Neither union received a majority, and the petition was dismissed.3 In April 1943, a consent election was held in the plant and neither Union received a majority.4 A run-off election followed which was won by A. F. of L by 134 votes. On July 20, 1943, the Respondent entered into a written agreement with Local 23120, affiliated with the American Federation of Labor, acting jointly and in cooperation with International Council of Aluminum Workers Union, American Federation of Labor. The agreement applied only to the Respondent's employees at its Lafayette Works, Lafayette, Indiana. The Agreement contained the following maintenance of membership clause: All employees who, 15 days after the date of the application of the mainte- nance of membership provisions now in effect in the plants covered by this agreement, are members of the Union in good standing in accordance with the constitution and by-laws of the Union and those employees who may thereafter become members shall, as a condition of employment, remain members of the Union in good standing during the life of the agreement. The Union shall promptly furnish to the National War Labor Board a notarized list of members in good standing 15 days after the date of the directive order. If any employee named on that list asserts that he withdrew from membership in the Union prior to that date, the assertion or dispute shall be adjudicated by an arbiter appointed by the National War Labor Board whose decision shall be final and binding upon the Union and the employee. The Union agrees that neither it nor any of its officers or members will intimidate or coerce employees into membership in the Union. If any dispute arises (as to whether there has been any violation of this pledge, or whether any employee affected by this clause has been deprived of good standing in any way contrary to the constitution and by-laws of the Union) the dispute shall be regarded as a grievance and submitted to the grievance machinery, and, if necessary, to the final determination of an arbitrator appointed by the National War Labor Board in the event that the collective bargaining agree- ment does not provide for arbitration i In May 1944 International Union, Aluminum Workers of America, C. I 0, merged with the Steelworkers. 2 Case No. R-4201 , 44 N L R B 490. 'Total valid ballots cast was 3709 C. I. 0. received 1310, A. F. of L. 746, and "neither" 1653. 4 Total valid ballots cast was 3843, C. I 0. received 1659, A F of L 1377, and "neither" 798. (Case No 13-R-1739). 696966-469 756 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Section 13 of this agreement provided that no employee shall be discriminated against by the Respondent because of his membership in any other labor organiza- tion It reads as follows : There shall be no discrimination at the time of employment against any prospective employee, nor after employment, by any foreman, superintendent, or any other person in the employ of the Company against any employee be- cause of membership or non-membership in any labor organization. The paragraph covering the term of the agreement, reads as follows • This agreement shall be in effect for the period ending March 24, 1944 and thereafter until modified, after at least thirty-days notice. On February 11, 1944, the Respondent and Local 23120 entered into a written agreement which reads as follows : ADDENDUM TO AGREEMENT between Federal Labor Union No. 23120 of the American Federation of Labor and Aluminum Company of America, Lafayette, Indiana, entered into on July 20, 1945.5 This instrument shall be entitled an "Addendum to Agreement" and shall be considered to be, and is, a part of the agreement entered into on July 20, 1943, between the Aluminum Company of America, Lafayette, Indiana and Federal Labor Union No. 23120, of The American Federation of Labor. It is agreed between the Aluminum Company of America, Lafayette, Indiana and Federal Union No. 23120 of the American Federation of Labor that all working conditions contained in the agreement entered into July 20, 1943 is and shall remain in full force and effect until March 24, 1945.6 On November 6, 1944, the Steelworkers informed H. B. Kahle, works manager of the Lafayette Works, by letter that a majority of the employees had become members of the Steelworkers, and requested a meeting for the purpose of negotiating an agreement. The last two paragraphs of this letter read as follows. ... Also, I have been advised that the American Federation of Labor is going to request that you discharge members of the United Steelworkers of America for exercising their right under the National Labor Relations Act to join a Union of their own choosing. May I point out that this will be a flagrant violation of the National Labor Relations Act, and I sincerely trust that your Company will not comply with any such request made to you by the American Federation of Labor as all the resources of the United Steelworkers of America will be placed at the disposal of our members to contest such action Under date of November 11, 1944, the Respondent replied to this letter of the Steelworkers, stating in substance that Local 23120 had been certified by the Board, on May 13, 1943, as the exclusive representative of the Respondent's employees at the Lafayette Works for the purposes of collective bargaining, and that the Respondent was bound by a contract with this union, which contained a maintenance of membership provision, therefore it declined to negotiate with the Steelworkers. S Evidently this is a typographical error, as it should be 1943. 0 This agreement was also signed by the American Federation of Labor, by Hugh Gormley. ALUMINUM COMPANY OF AMERICA , LAFAYETTE WORKS 757 On January 25, 1945, Local 23120 wrote the Respondent requesting that negotia- tions for a new agreement be commenced on or before February 25, 1945. The full text of this letter reads as follows: This is to advise that your employees, members of the Aluminum Workers' Union, Local #23120, in regular meeting held, January 24, 1945, went on record unanimously requesting that negotiations for a new Agreement with your Company be started on or before Feb. 25, 1945. This action was taken pursuant to the provisions of the existing Agree- ment, and we now request that mutual arrangements be made at an early date, for representatives of the Aluminum Company of America, at the Lafayette Plant, Lafayette, Indiana, and representatives of the American Federation of Labor, and of the said Aluminum Workers Union, Local #23120, to meet in joint conference for the above stated purpose. Anticipating your early and favorable response to the above, we remain, About 4 days after this letter was written, Local 23120 issued hand bills adver- tising the fact that its contract with the Respondent would expire on March 24, 1945, and that the Respondent had been requested to begin negotiations with Local 23120 not later than February 25, 1945, for a new contract. The circular also stated that it was the established custom and practice of Local 23120 to negotiate with the Respondent each year for a new contract. On January 27, 1945, the Steelworkers informed the Respondent by letter that it was, on that day, filing a Petition for Certification of Representatives with the Board for an election in the Lafayette Works, and requesting that the Respondent desist from entering into any negotiations with the A. F of L. or any other union in regard to collective bargaining until the question of representation had been determined by the Board. On January 27, 1945, the Steelworkers filed the aforesaid petition with the Board. On that same date, the Regional Director informed the Respondent by letter that the petition had been filed.? On January 27, 1945, Local 23120 wrote a further letter to the Respondent with respect to negotiating the new contract, which reads as follows: In the telephone conversation we had last Friday evening, Mr. R. G Woods informed me that in line with the official notice filed with your Company by our Aluminum Workers' Union, Local #23120, requesting negotiations for a new Agreement on or before February 25th, 1945, that Mr. Wm. Winters of the Company would be prepared to begin such negotiations with the Union at 9 A. M. Tuesday, Jan. 30th, 1945. You further suggested that the Union furnish you with an outline of the Changes or modifications, which the Union desires to propose during these negotiations. Pursuant and hereto, he advised that we shall meet with your representative or representatives, as suggested by Mr. R. G. Woods, however, it is well that we point out at this time, that your employees, members of the Union, are to meet in regular Contract Meetings beginning January 31st next, for the express purpose of drafting the proposed changes to the Agreement, and as quickly as these changes are adopted, the proposals as desired by the membership will be formerly presented to your Company for our joint negotiations You will understand that in the forthcoming negotiations, the . proposed changes to be negotiated will be based upon the expressed desires of the Union members, and consequently will be governed accordingly. 'Case No. 11-R-762. 758 DECISIONS OF NATIONAL LABOR RELATIONS BOARD In view of Mr. Winters and your Company being prepared to meet with the Union at such early date, which we interpret to be a mere preliminary to the issues that will soon come before us jointly for disposition, we can at this time give a partial list of several of the essential changes which we can anticipate on the basis of expressions already made by the membership : (a) Closed Shop. (b) Check off of Union Dues. (c) Increased Shift Premium. (d) Sick leave with pay. (e) Paid Holidays (when not worked) and time and one half if worked. Anticipating the pleasure of meeting with Mr. Winters as suggested by Mr. R. G. Woods, we remain, On February 10, 1945, the Steelworkers wrote a letter to the Respondent, which reads as follows : This is to advise you that yesterday we submitted to Mr. Thomas G. Watson, Field Examiner for the National Labor Relations Board, approximately 2300 cards signed by the employees of your Company working at the Lafayette Plant. In view of the fact that the American Federation of Labor refused to agree to an election, I am herewith requesting that you discontinue your collective bargaining conferences with this organization and not enter into any agree- ment until this question has been decided by the National Labor Relations Board. It is my understanding that the National Labor Relations Board will proceed on this case as promptly as possible. Therefore, I am hopeful that your Company will comply with our request in this matter. The Respondent and Local 23120 held several meetings, at which they discussed the terms of a new contract, but before any agreement had been reached, negotia- tions were discontinued, under instructions from the Respondent's Pittsburgh office, because of the question of representation which had arisen under the Steel- workers' petition. On February 19, 1945, a consent election agreement was entered into by the Respondent, Steelworkers, and Local 23120 which was duly approved by the Board's Regional Director and Field Examiner. A few days later, Local 23120 issued circulars with reference to "withdrawal of membership." The full text of this circular reads as follows: MEMBERSHIP WITHDRAWAL PRIVILEGE Special arrangements for membership withdrawal for benefit of all A. F L members at this plant. To remove the idea among some workers who think it necessary to vote CIO to get away from the A . F. L. maintenance of membership clause, because they don't like it , any such member who may so desire , can terminate his member- ship, and all obligations to the A . F. L. at this plant , by just simply bringing his membership book to our office , and his or her name shall be stricken from our A. F. L. membership ledgers. This, any one can do immediately upon expiration of our present contract which will terminate on March 24, 1945. ALUMINUM COMPANY OF AMERICA, LAFAYETTE WORKS 759 So to all who may wish to withdraw from membership, under the mainte- nance clause, just turn in your book at our office, any time from March 24th to March 31st inclusive, and the name will be taken off our membership books, with no further obligation on your part, and with no ill feeling toward anyone Remember this, and hold this statement for your own personal record. We want our entire membership to be voluntary, because that is the basis of our A. F. L. Union, and you will be free to rejoin at any time in the future when you may wish to do so, of your own free will and accord. This is fair play . . . The A. F. L. way. Be right with A. F. L.... Vote American ... Vote A. F. L. VOTE A. F. L. The election was held on March 6, 7, and 8, 1945. Neither union received a majority.8 A run-off election was held on March 13, 14, and 15, 1945, and Local 23120 won by 50 votes. On March 22, 1945, the Regional Director issued his "Consent Determination of Representatives" finding that Local 23120 was the exclusive representative of the employees involved. On May 20, 1945, the Respondent's Pittsburgh, Pennsylvania, office entered into a written agreement with "Aluminum Workers' Union Nos. 18780, 19256 and 21320 affiliated with the American Federation of Labor, acting jointly in cooperation with the International Council of Aluminum Workers' Unions." This contract covers the Respondent's employees at Lafayette, Indiana, East St. Louis, Illinois, Baton Rouge, Louisiana, and Massena, New York. It provides, inter alia, for maintenance of membership and check-off. The term is from date of execution to August 1, 1946, and "thereafter until modified, after at least thirty days' notice." 2. The discriminatory discharge of Warren Wilson Prior to his suspension on or about March 29, 1945, and subsequent discharge on April 5, 1945, Wilson had been continuously employed by the Respondent since May 1941. It was stipulated by the parties that "Warren Wilson's work for the company was satisfactory and his employment record is not in question in this case, nor did it have anything to do with the company's decision to discharge him." Wilson joined Local 23120 in May 1943. In January 1945 he joined the Steelworkers. Thereafter, he was very active in the Steelworkers' organizational campaign. He distributed over 100 application cards for membership in the Steelworkers and solicited other employees to join the Steelworkers. Prior to the consent election in the plant on March 6, 7, and 8, 1945, he informed employee Jack Halsema, steward of Local 23120 in his department, that he was campaigning for the Steelworkers. Halsema told him that he was making a big mistake in doing so. Soon after receiving one of the circulars of Local 23120 advising that members could withdraw their membership in Local 23120, Wilson, under date of March 10, 1945, informed both the Respondent and Local 23120, by letter, that he desired to withdraw his membership from Local 23120. He received no reply. On or about March 17 or 18, 1945, Ray Robinson, financial secretary and business agent of Local 23120, sent Wilson a registered letter informing him that a charge Total valid ballots cast was 3133 . Steelworkers received 1461, Local 23120 received 1213 and "neither" 459. 760 DECISIONS OF NATIONAL LABOR RELATIONS BOARD had been filed against him and that a trial would be held on March 21, 1945. This letter reads as follows : Enclosed find copy of alleged charge of Violation of Article #39 of Constitution and By-Laws of Aluminum Workers' Union, Local #23120, A. F. of L. This charge has been filed at this office, and in accordance with Article #9 of the By-Laws, the President, Geo. Dexter Jr. has appointed three Brothers as a Trial Committee to hear evidence of this charge. This committee will be in session on Wednesday Mar. 21, 1945, at 7:30 P. M. at the Union Hall, 10th and Main Sts. You will be extended every courtesy and privilege to dispute such alleged Charge on the above mentioned date, time, and place as provided for in Article #9 of By-Laws, therefore, it is your interest to be present. The charge reads as follows : I do hereby prefer charges against Warren Wilson for violation of Article #3 of Constitution and By-Laws of Aluminum Workers' Union, Local 23120. I will present my evidence to Trial Board upon notification of hearing, for their consideration and findings. (Signed) ALBERT HAINGE. Wilson did not receive the letter and knew nothing about it until the morning of March 22, 1945, the day after the trial. On the morning of March 22, Wilson went to the Union Hall to pay up his dues in Local 23120, in order that his with- drawal could be accepted. He saw Robinson, and the latter told him about the letter and the charge and refused to accept his dues. Robinson also told him that the trial had been held the night before and that he had been expelled from membership in Local 23120. Wilson protested and stated that he had not received the letter Wilson also told Robinson that Local 23120 could not expel him as he had already withdrawn his membership. Robinson then said that another trial would be arranged for March 26, 1945. Robinson's testimony in respect to the letter reads as follows: He [Wilson] informed me it had been impossible for him to be there at that time due to the fact that he lives in a rural community The rural mail carrier left a note-in his mail box informing him he had a registered letter. He didn't get it because he lives back off the road. Consequently, his son found it and went to the Cutler post office and signed for the letter. He said he didn't have knowledge of it until the morning after the original hearing . . . I told him there was a trial as provided by the Constitution, that he was tried to the best of my knowledge. When he told me about the facts involving the thing, told me about-told me about his son receiving his mail, I informed him if there was such a condition, if we found that was true he would be given every opportunity to appear before that same trial board. Wilson went home that night and found the letter. Notwithstanding the fact that Robinson told Wilson that another trial would be held on March 26, Robinson Article 3 reads in part as follows SECTION 2 . Candidates for membership shall be accepted on paying initiation fee in full, and subscribing to the following affirmation. I pledge my honor to faithfully observe the Constitution of this Union to comply with all rules and regulations for the government thereof ; not to divulge or make public any of the private proceedings of this Union ; to faithfully perform all duties assigned to me to they best of my ability and skill ; to so conduct myself at all times as not to bring reproach upon my Union , and at all times to bear true and faithful allegiance to the American Federation of Labor. ALUMINUM COMPANY OF AMERICA, LAFAYETTE WORKS 761 wrote to the Respondent on March 24, requesting that the Respondent discharge Wilson The letter reads as follows: MARCH 24, 1945 The Union is hereby notifying you that Warren Wilson Clk #11066, is no longer a member in good standing with the Aluminum Workers Union #23120 In accordance with the provisions of the agreements between your Company and this Union, you are hereby requested to terminate the employment of this man effective at 3:00 P. M. on Thursday, Mar. 29, 1945. (Signed) RAY ROBINSON, Fin. Sec. and Bus. Agt. A receiving stamp appears on this letter, showing that the Respondent received it on March 24, 1945. On March 26 the Respondent notified Wilson by letter that Local 23120 had re- quested his discharge. The letter reads as follows : Date MARCH 26, 1945 Clock No. 11066 Employee Warren Wilson The Maintenance of Membership Provision of the National War Labor Board provides as follows: "All employees who, 15 days after the date of the Directive Order of the National War Labor Board in this case are members of the Union in good standing in accordance with the Constitution and By laws of the Union and those employees who may thereafter become members shall, as a condition of employment remain members of the Union in good standing during the life of the Agreement." This is to notify you that the Union, which is the Collective Bargaining Agency in this plant has notified us that you failed to maintain your mem- bership in the union in good standing and, therefore, in accordance with the above Provision, the Company is ordered to dismiss you from employment unless you re-establish such union membership by 3.00 P. M., March 29, 1945 In accordance with the union's Constitution and By-laws or unless you have filed an appeal of your case in accordance with the appeal procedure as described by the Agreement within the time limits provided This letter was handed to Wilson by Foreman Charlie Bush on March 26, prior to the second trial, which was held that night at 7.30 p. in Wilson showed the letter to his foreman, Doerdorf, and asked him if it was the result of delinquency in union dues. Doerdorf replied that he did not know, and suggested that Wilson consult Kelly, steward of Local 23120. Wilson showed the letter to Kelly and suggested that he had better pay his dues Kelly replied, "That's the way it looks to me. I would not say positively on that I don t know much about that, but it don't read like I figured it would." On March 26, Wilson arrived at the Central Labor Templer at 4th and Columbia Streets in Lafayette at about 7:30 p. in. He went into the meeting room and sat down. He was under the impression that his trial would be held in this hall. After a short time, he remembered that the trial was scheduled to be held at 10th and Main Streets. He immediately went to the latter place, arriving there about 8 or 8:05 p.m. He met Robinson and told him why he had not arrived there "'The Central Labor Temple was A. F. of L. headquarters, and Local 23120 sometimes held its meetings there. 762 DECISIONS OF NATIONAL LABOR RELATIONS BOARD at 7:30 pm. Robinson informed him that the trial had been concluded, and the verdict was that he be expelled from Local 23120. That night, Wilson again endeavored to pay his dues in Local 23120, to Robinson. However, the latter refused to accept them. The next day, March 27, Local 23120 informed Wilson by letter of the findings of the Trial Committee. The letter reads as follows: MARCH 27, 1945. DEAR SIR and BROTHER: The statement below is an exact copy of decision of Trial Committee that sat in session on Mar. 21, 1945, and reconvened on Mar. 26, 1945. STATEMENT We, the undersigned do find one Warren Wilson guilty as charged, and order immediate suspension of membership. This order must be carried out by Mar. 29, 1945 at 3:00 P M. (Signed) Chr. of Com D. R. KELLEY Member ORA MALASKA 11 CLARENCE COZAD Any questions on this matter should be directed to Bus Agt. (Sgd) RAY ROBINSON, Fin Sec. and Bus Agt That evening Wilson had a conversation with Kline,' the then manager of the Respondent's industrial relations department. Wilson protested the action of Local 23120, in cancelling his membership, because he had previously resigned from Local 23120. Wilson's testimony in this respect reads as follows : Well, I explained to him [Kline] where I didn't think it was right, and I told him I would appeal to the Labor Board and he said they had orders to carry on with their contract. I told him that might be so but it was the with- drawal period12 now and how could they [Local 23120] can me in that withdrawal period ... Well, he said I had complained on the situation, said I was going to take it to the Labor Board, and they figured they had better get an arbitrator. According to Robinson's testimony, on March 28, he was informed by Kline that Wilson was protesting the action of the Respondent because of the unfair action taken by Local 23120, and that the Respondent was going to take whatever steps it considered necessary to protect Wilson's interests. Robinson further testified that he consulted E. R. Stahl, president of the International Council of Aluminum Workers' Union, A. F of L, and that the latter instructed him to insist on Wilson's discharge by the Respondent. Robinson also informed Kahle, the Respondent's Works Manager, that he had been informed by one of the plant committeemen of Local 23120 that the employees would not work with Wilson and if the Respondent did not discharge him, there would be a strike. According to Works Manager Kahle, he was informed that the reason Local 23120 had cancelled Wilson's membership was because of Wilson's activity in behalf of the Steelworkers and that if Wilson were allowed to work in the plant there would be a strike. Kahle's testimony in this connection reads as follows: We had previous knowledge of that because of the A. F. of L.'s inter- ference in the case in which they disclosed that and threatened a work " Kline died sometime prior to the instant hearing. 12 Local 23120 had previously advertised the fact that its contract with the respondent would expire on March 24 , 1945, and that during the period from March 24 to March 31, 1945, inclusive, any member of Local 23120 could withdraw his membership with impunity. ALUMINUM COMPANY OF AMERICA, LAFAYETTE WORKS 763 stoppage if we put the man back to work . Well, our thought certainly was we wanted to determine under the maintenance of membership clause we were giving the employee an opportunity That was the reason for taking it to arbitration in the light of the fact the American Federation Local had definitely stated if the man went back to work we faced a work stoppage I think I was in telephone conversation with Ray Robinson about it, yes The Respondent and Local 23120 agreed to submit Wilson's case to an arbitrator Wilson was not consulted in the matter The Respondent requested the War Labor Board in Chicago, Illinois, to send an arbitrator to Lafayette for this purpose. The arbitrator, Lionel Ruby, held a hearing at the plant on March 31, 1945, which was attended by Wilson The arbitrator's report reviewed the history of the dispute, including both the first and second trials of Wilson In respect to the first trial, the arbitrator's report reads as follows According to the transcript of the testimony at the trial Mr Wilson had violated his oath of allegiance to the Union by attempting to organize a rival Union which was contesting the majority status of Local #23120 at the Company's plant His organizing attempts, according to the Union, occurred in connection with the National Labor Relations Board elections of March 6, 7 and 8, and during the run-off elections of March 13, 14, and 15 He was specifically charged with handing out brown application cardr for membership in the rival C I 0 union, [Italics supplied ] The findings of the arbitrator concluded as follows. The Award The undersigned finds that Mr. Wilson was at one time a union member in good standing , that he is no longer a member in good standing, and that according to the contract between the parties , Article 2, the Company should discharge Mr. Wilson forthwith (signed ) LIONEL RUBY, Arbitrator. The arbitrator did not act for or on behalf of the War Labor Board , but as a private individual His report was released on April 5, 1945, and immediately upon receipt of same, the Respondent discharged Wilson . The Respondent furnished Wilson with a "Report of Unemployment," in which it was stated that he was "dismissed for failure to comply with the maintenance of membership clause in Union contract," and that the "Last date for which wages were payable" was March 30, 1945. CONCLUDING FINDINGS The original contract, dated July 20, 1943, between the Respondent and Local 23120 was to remain in force and effect until March 24, 1944, and thereafter until modified after 30 days' notice On February 11, 1944, the parties entered into an addendum to that contract which stated specifically that the contract would expire on March 24, 1945. The record is clear and the undersigned finds that the contract did expire on March 24, 1945. Wilson was discharged by the Respondent on April 5, 1945, about 12 days after the expiration of the contract Therefore the contention of the Respondent that Wilson's discharge was pursuant to the provisions of the 764 DECISIONS OF NATIONAL LABOR RELATIONS BOARD contract, is without merit.13 The record further shows, and the undersigned finds, that both the Respondent and Local 23120 were well aware of the fact that the contract would expire on March 24, 1945. Local 23120 wrote the Respondent, on January 25, 1945, that it desired to negotiate for a new contract. This letter was followed by another letter, on January 27, 1945, which is set out in full above, in which Local 23120 outlined, in detail, the essential features that it desired to incorporate in the new contract. Several meetings between the Respondent and Local 23120 were held in respect to the new contract However, negotiations were discontinued under instructions from the Respondent's head office in Pittsburgh, Pennsylvania, and a new contract was finally consummated in Pittsburgh in May 1945, as related above. On February 19, 1945, a consent election agreement was entered into by the Respondent and Local 23120, and a few days thereafter, Local 23120 issued a circular headed "Membership Withdrawal Privilege," in which it stated that the contract would expire on March 24, 1945. This circular was dis- tributed throughout the plant. If the Respondent discharged Wilson under the honest, but mistaken belief that the contract was still in force and effect, or even if the contract 'bad still been in effect at the time of the discharge, the Respondent would not have been justified under the Act, in the instant case, in discharging Wilson pursuant to the demand of Local 23120, since the Respondent knew that the demand was based upon Wilson's expulsion from Local 23120 because of his activities on behalf of the Steelworkers during the time that a question of representation was pending. The Respondent admitted that it possessed this knowledge prior to the discharge of Wilson. The Arbitrator's report, which was received by the Respondent, prior to Wilson's discharge reads, in part, as follows : His [Wilson's] organizing attempts, according to the Union occurred in connection with the National Labor Relations Board elections of March 6, 7 and 8, and during the run-off elections of March 13, 14, and 15. He was specifically charged with handing out brown application cards for member- ship in the rival C. I. O. union. In the Portland Lumber Mills case,14 decided by the Board in October 1945, the Board held that the discharge of an employee who had been expelled from mem- bership in a union which had a closed-shop contract with the Respondent with knowledge on the part of the Respondent that the expulsion was due to the fact that the employee had acted as an observer for a rival union in a Board conducted election, was a violation of Section 8 (3) of the Act, even though the Respondent believed in good faith, though mistakenly, that the terms of the closed-shop contract required it to accede to the contracting union's demand for the employee's discharge. In the Rutland Court case15 the Board held that a closed-shop contract does not justify an employer in discharging employees whom he knows the contracting union has expelled from membership simply because they sought to exercise their statutory right, at a time when there was a representation question pending, 18 Phelps Dodge Copper Products Corporation, Habirshaw Cable and Wire Division, 63 N L R. B. 686 The Board held in this case that the discharges , allegedly pursuant to the terms of a maintenance of membership clause, were discriminatory and in violation of the Act, since they occurred the day after the contract had expired , although the union requested the discharges before the contract had expired. 14 Matter of Portland Lumber Mills , 64 N L R B. 159. ie Matter of Rutland Court Owners , Inc., 44 N. L. R. B. 587, and supplemental decision, 46 N. L. R. B 1040; see also The Wallace Corporation , 50 N L. R. B. 138, 141 F (2d) 87 (C C. A 3), 323 U. S. 248 ALUMINUM COMPANY OF AMERICA , LAFAYETTE WORKS 765 to designate a new representative for future bargaining. "To hold otherwise would mean that an employer and a union official, acting in concert, could maintain one labor organization in perpetuity as the bargaining representative by the simple device of expelling any employees who wished to have a different representative when the question of the renewal of the contract arose." Wilson was tried, in absentia, on March 21 by a trial committee appointed by Local 23120, which recommended that he be suspended from membership immedi- ately. After a protest by Wilson, Local 23120 decided to give him another trial on March 26. However, on March 24, the day on which the contract expired, Local 23120 wrote the Respondent and demanded Wilson's discharge. The Re- spondent took no action until March 26, when it notified Wilson of the action taken by Local 23120. Wilson protested and informed the Respondent that he would file charges with the Board if the Respondent carried out the demands of Local 23120. The Respondent then made arrangements for a hearing before an arbitrator. The arbitration was arranged by the Respondent and Local 23120, without prior consultation, approval or consent of Wilson. At no time did Wilson agree to be bound by the decision of the arbitrator. What the Respondent and Local 23120 sought in effect to do was to have an arbitrator decide whether an unfair labor practice would be committed if the Respondent were to discharge Wilson. The Board, under the Act is exclusively charged with the duty of deter- mining unfair labor practices.16 A private agreement to which the Board is not a party, cannot operate to deprive the Board of its function under the Act. The Respondent contends that a determination of the charges against the Respondent in this case places in issue the legality of the contract between the Respondent and Local 23120 dated July 20, 1943, and therefore this case comes within the purview of the "rider"17 to the current appropriation of the Board, therefore the Board is precluded from proceeding with the case. The undersigned finds no merit in this contention. In summary, the undersigned finds that, in the circumstances herein, the Respondent was not justified in discharging Warren Wilson upon the demand of Local 23120 upon the ground that Wilson was no longer a member of Local 23120, or upon the threat that the members of Local 23120 would go out on strike if he was not discharged. On the contrary, the Respondent, having knowledge of the illegal purposes behind the demand, was in duty bound to refuse to comply there- with. Having discharged Wilson, the Respondent, even though acting in good faith, has violated the Act. The undersigned further finds from the entire record in the case, that the Respondent, by discharging Warren Wilson on April 5, 1945, 1 Section 10 (a) of the Act reads as follows • "The Board is empowered , as hereinafter provided, to prevent any person from engaging in any unfair labor practice ( listed in Sec- tion 8) affecting commerce This power shall be exclusive, and shall not be affected by any other means of adjustment or prevention that has been or may be established by agreement, code, law, or otherwise " '' The "Rider," which is attached to the current appropriation for the Board contained in the Labor-Federal Security Appropriation Act, 1945, approved June 28 , 1944 . Public Law 373, reads as follows: No part of the funds appropriated in this title shall be used in any way in connection with a complaint case arising over an agreement , or a renewal thereof, between manage- ment and labor which has been in existence for three months or longer without complaint being filed by an employee or employees of such plant : Provided, That, hereafter, notice of such agreement or a renewal thereof shall have been posted in the plant affected for said period of three months , said notice containing information as to the location at an accessible place of such agreement where said agreement shall be open for inspection by any interested person: Provided further, That these limitations shall not apply to agree- ments with labor organizations framed in violation of Section 158, paragraph 2, title 29, United States Code. 766 DECISIONS OF NATIONAL LABOR RELATIONS BOARD discriminated against him in regard to the hire and tenure of his employment, discouraged membership in United Steelworkers of America, C. I. 0., and inter- fered with, restrained, and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICE UPON COMMERCE The activities of the Respondent, set forth in Section III above, occurring in connection with the operations of the Respondent as described in Section I above, have a close, intimate, and substantial relation to trade, traffic, and commerce among the several States, and tend to lead to labor disputes burdening and ob- structing commerce and the free flow of commerce. V. THE REMEDY Since it has been found that the Respondent has engaged in and is engaging in unfair labor practices affecting commerce, it will be recommended that it cease and desist therefrom and take certain affirmative action which the undersigned finds will effectuate the policies of the Act. It has been found that the Respondent discriminatorily discharged Warren Wilson. It will therefore be recommended that the Respondent offer Wilson immediate and full reinstatement to his former or substantially equivalent position without prejudice to his seniority or other rights and privileges. It will be further recommended that the Respondent make whole Warren Wilson for any loss of pay he may have suffered by reason of the Respondent's discrimination against him by payment to him of a sum of money equal to the amqunt that he would normally have earned as wages during the period from March 30, 1945, the date on which he was last paid by the Respondent, to the date of the Respondent's offer of reinstatement, less his net earnings's during said period. Upon the basis of the foregoing findings of fact and upon the entire record in the case, the undersigned makes the following: CONCLUSIONS OF LAW 1. United Steelworkers of America, affiliated with the Congress of Industrial Organizations, is a labor organization, within the meaning of Section 2 (5) of the Act. 2. By discriminating in regard to the hire and tenure of employment of Warren Wilson, thereby discouraging membership in United Steelworkers of America, affiliated with the Congress of Industrial Organizations, the Respondent has en- gaged in and is engaging in unfair labor practices, within the meaning of Section 8 (3) of the Act. 3. By interfering with, restraining, and coercing its employees in the exercise of the rights guaranteed in Section 7 of the Act, the Respondent has engaged in and is engaging in unfair labor practices, within the meaning of Section 8 (1) of the Act. 4. The aforesaid unfair labor practices are unfair labor practices affecting com- merce, within the meaning of Section 2 (6) and (7) of the Act. 38 By "net earnings" is meant earnings less expenses , such as for transportation , room, and board, incurred by an employee in connection with obtaining work and working elsewhere than for the respondent , which would not have been incurred but for his unlawful discharge and the consequent necessity of his seeking employment elsewhere. See Matter of Crossett Lumber Company, 8 N. L. R. B. 440. Monies received for work performed upon Federal, State, and county, municipal, or other work-relief projects shall be considered as earnings . See Republic Steel Corporation v N. L. R. B., 311 U. S. 7. ALUMINUM COMPANY OF AMERICA, LAFAYETTE WORKS RECOMMENDATIONS 767 Upon the basis of the above findings of fact and conclusions of law, the under- signed recommends that the Respondent, Aluminum Company of America, Lafayette Works, Lafayette, Indiana, its officers, agents, successors and assigns shall : 1 Cease and desist from: (a) Discouraging membership in United Steelworkers of America, affiliated with the Congress of Industrial Organizations, or any other labor organization of its employees, by discharging or refusing to reinstate any of its employees, or by discriminating in any other manner in regard to their hire or tenure of employ- ment or any term or condition of employment ; (b) Engaging in any like or related act or conduct, interfering with, restraining, or coercing its employees in the exercise of the right to self-organization, to form labor organizations, to join or assist United Steelworkers of America, affiliated with the Congress of Industrial Organizations, or any other labor organization, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purposes of collective bargaining or other mutual aid or protection as guaranteed in Section 7 of the Act.19 2. Take the following affirmative action which the undersigned finds will effectuate the policies of the Act : (a) Offer to Warren Wilson immediate and full reinstatement to his former or substantially equivalent position, without prejudice to his seniority and other rights and privileges ; (b) Make whole Warren Wilson for any loss of pay that he may have suffered by reason of the Respondent's discrimination against him, by payment to him of a sum of money equal to the amount which he normally would have earned as wages during the period from March 30, 1945, the date on which he was last paid by the Respondent, to the date of the Respondent's offer of reinstatement, less his net earnings20 during said period; Post at its plant in Lafayette, Indiana, copies of the notice attached hereto, marked "Appendix A " Copies of said notice, to be furnished by the Regional Director for the Eleventh Region, shall, after being duly signed by the Respondent's representative, be posted by the Respondent immediately upon receipt thereof, and maintained by it for sixty (60) consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted Reasonable steps shall be taken by the Respondent to insure that said notices are not altered, defaced, or covered by any other material; ii See Portland Lumber Mills , 64 N. L. R. B. 159, in which the Board said "Normally in casCopy with citationCopy as parenthetical citation