Armour & Co. of Delaware

National Labor Relations Board - Board DecisionsNov 13, 1941

36 N.L.R.B. 866 (N.L.R.B. 1941)

In the Matter of ARMOUR & COMPANY OF DELAWARE AND ARMOUR & COMPANY OF ILLINOIS and AMALGAMATED MEAT CUTTERS AND BUTCHER WORKMEN OF NORTH AMERICA, LOCAL 416, AFFILIATED WITH THE AMERICAN FEDERATION OF LABOR Case No. B-2998.-Decided November 13, 1941 Jurisdiction : meat packing industry. Investigation and Certification of Representatives : existence of question: re- fusal by Company to recognize union until certified; eligibility of'regular employees employed during current pay-roll period and peak-season employees employed during such period and during last previous peak season ; election necessary. Unit Appropriate for Collective Bargaining : all production employees engaged in killing, dressing, processing, packing and shipping, excluding general office and clerical employees, plant clerks, supervisors, foremen, assistant foremen, watchmen, jobbing room employees and livestock drivers; exclusion of unor- ganized maintenance employees; certain employees held supervisory and ex-' eluded; scalers and checkers held clerical employees and excluded. Mr. Paul E. Blanchard, of Chicago, Ill., for the Company. Mr. Max Crowell and Mr. Sam Twedell, of Sioux Falls, S. D., for the Union. Mr. Armin Uhler, of counsel to the Board. DECISION AND DIRECTION OF ELECTION STATEMENT OF THE CASE On June 27, 1941, Amalgamated Meat Cutters and Butcher Work- men of North America, Local 416, affiliated with the American Fed- oration of Labor, herein called the Union, filed with the Regional Director of the Eighteenth -Region (Minneapolis, Minnesota) a peti- tion alleging that a question affecting commerce had arisen concern- ing the representation of employees at the Huron, South Dakota, plant of Armour & Company of Delaware, and Armour & Company of Illinois,1 hereinafter collectively called the Company, and requesting 1 It was stipulated at the hearing that all papers pertaining to this proceeding shall be corrected by inserting in place of the name of the Company "Armour & Company of Dela- ware and Armour & Company of Illinois" instead of "Armour & Company." 36 N. L. R. B., No. 181. 886 ARMOUR & COMPANY 887 an investigation and certification of representatives pursuant to Sec- tion 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. On July 17, 1941, the National Labor Relations Board, herein called the Board, acting pursuant to Section 9 (c) of the Act, and Article III, Section 3, of National Labor Relations Board Rules and Regulations-Series 2, as amended, ordered an investigation and authorized the Regional Director to conduct it and to provide for an appropriate hearing upon due notice. On August 27,1941, the Regional Director issued a notice of hearing, copies of which were duly served upon the Company and the Union. Pursuant to notice, a hearing was held on September 12, 1941, at Huron, South Dakota, before Robert R. Rissman, the Trial Examiner duly designated by the Chief Trial Examiner. The Company was represented by counsel and the Union by an official representative. Both participated in the hearing. Full opportunity to be heard, to examine and cross-examine witnesses and to introduce evidence bear- ing upon the issues was afforded all parties. No objections to the rulings of the Trial Examiner were made by any of the parties. The Board has reviewed the rulings of the Trial Examiner and finds that no prejudicial errors were committed. The rulings are hereby affirmed. Upon the entire record in the case, the Board makes the following: FINDINGS OF FACT I. THE BUSINESS OF THE COMPANY Armour & Company of Delaware is a Delaware corporation whose capital stock is owned by Armour & Company of Illinois, an Illinois corporation, with its principal office and place of business in Chicago, .Illinois. The Company is engaged in operating meat-packing plants, wholesale meat distributing houses, creameries, poultry houses, and branch houses in various plants throughout most of the States of the United States. Among others, the Company operates a meat packing plant at Huron, South Dakota. This proceeding is exclusively con- cerned with employees at the Huron plant. Until January 1, 1940, the Huron plant was owned by the Delaware corporation, and operated in its entirety by the Illinois corporation. Since January 1, 1940, all manufacturing and processing operations at the Huron plant have been performed by the Illinois corporation, and shipment and sales of products manufactured have been handled by the Delaware corporation. Since July 1939, the Illinois corpora- tion purchased all livestock and supplies used in the operation of the Huron plant, paid all costs of labor and all other operating expenses, and directed the employment policy at the plant. During the fiscal year ended October 31, 1940, the Illinois corpora- tion purchased and slaughtered at the Huron plant in excess of 888 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 28,000 cattle, 109,000 sheep, and 180,000 hogs of a total value of approximately $5,000,000. Approximately 5 per cent of the livestock purchased and slaughtered at the Huron plant originated in States other than South Dakota. In the operation of the Huron plant, the Illinois corporation buys annually large quantities of coal, salt, tools, equipment, boxes, and other containers and materials. During the fiscal year ended October 31, 1940, the total value of such materials purchased for the Huron plant amounted to approximately $140,000. Practically all of these materials were shipped to the Huron plant from outside the State of South Dakota. During the same period approximately 60,000,000 pounds of products including fresh heats, provisions, hides, oil, wool, and animal hair, were distributed from the Huron plant. Approximately 98 per cent of these products were sold and shipped from Huron, South Dakota, to destinations outside 'the State of South Dakota. II. THE ORGANIZATION INVOLVED Amalgamated Meat Cutters and Butcher Workmen of North Amer- ica,. Local 416, is a labor organization affiliated with the American Federation, of Labor, admitting to membership employees of the Company. III. THE QUESTION CONCERNING REPRESENTATION Sometime during the month of June 1941, the Union requested recognition from the Company as the exclusive bargaining representa- tive of certain employees at the Company's Huron plant and asked that a conference be arranged in order to enter upon bargaining nego- tiations. The Company declined to recognize the Union until after certification by the, Board. 'A statement prepared by the Regional Director and introduced in evidence at the hearing shows that the Union represents a substantial number of employees in the unit found appropriate for bargaining purposes in Section V below.2 We find that a question has arisen concerning the representation of employees of the Company. IV. THE EFFECT OF THE QUESTION CONCERNING REPRESENTATION UPON COMMERCE We find that the question concerning representation which has arisen, occurring in connection with the operations of the Company 2 The Regional Director 's statement sets forth that the Union submitted 96 authorization cards . 93 of which are dated between May and June 1941 , while 3 are .undated . It appears from the statement that all of these cards bear apparently genuine signatures . 88 of which correspond to names on the Company ' s pay roll. The unit for which the Union contends wou'd embrace approximately 220 employees on the basis of the Company 's last peak season pay roll of November 30. 1940. ARMOUR & COMPANY 889 described in Section I, above, has a close, intimate, and substantial relation to trade, traffic, and commerce among the several States, and tends to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE APPROPRIATE UNIT The Union requests that a bargaining unit be established comprising all production employees at the Huron plant engaged in killing, dress- ing, processing, packing, and shipping, but excluding maintenance employees, general office and clerical employees, plant clerks, super- visors, foremen , assistant foremen, and watchmen. The Company does not contest the appropriateness of the proposed unit, except inso- far as it requests the Board to determine (1) whether or not mainte- nance employees should form a part of the unit,-' (2) whether certain employees sought to be excluded by the Union are either supervisory. or clerical employees as alleged by the Union. It was agreed at the hearing that a jobbing room employee and a livestock driver listed by the Company under "Miscellaneous Departments" should also be excluded from the unit. The record shows that the Union's primary reason for desiring the exclusion of maintenance employees from the unit is that they have not expressed any desire for organization and have, in fact, not been organized. None of the authorization cards submitted by the Union bear signatures of maintenance employees.4 Under these circum- stances we shall exclude maintenance employees from the unit. The Union alleges that 13 employees 5 on the Company's peak- season pay roll of November 30, 1940, are employed in a supervisory capacity and therefore should be excluded from the unit. The record dis- closes that these employees are paid at a higher hourly rate than their subordinates.' Each of the employees sought to be excluded has the power to hire and discharge. We find that they are supervisory employees and they will accordingly be excluded from the unit herein. The Union further insists that five employees 7 listed on the Com- pany's November 30, 1940, pay roll as production employees perform clerical duties and should therefore be excluded from the unit. These employees are scalers or checkers. They weigh, and record and re- 3 Maintenance employees are those listed by the Company under motive power, machine shop , streets, laundry , janitors, and stockyards. 4 The Union also alleges that the interests of maintenance employees are dissimilar in that employment of maintenance employees is considerably less subject to seasonal fluctua- tions than that of production employees. rWalter Collins, Mike Kaminski , Harry Cowing, Sam Biggerstaff , John Ames, Orville Howard , August Erickson , Earl Dolan , Robert Schwartz , Verne Oleyson , Otto Frank, Durmond Nelson , and Cyril Moore. 6 The number of subordinates supervised by each of these employees ranges from 3 to 70 during peak season. "Clarence Petersen , A. T. Christensen, Chas. Corcoran , Otto Werner, and Ole Bakken. 890 DECISIONS OF NATIONAL LABOR RELATIONS BOARD port weights of, products going into or leaving cold storage. During the peak season more than 50 per cent of the time of each of these employees is consumed by work of a clerical nature. They receive a "split rate" of pay which is higher for clerical than for manual duties. The Company contends that, in addition to the five scalers and checkers whose 'exclusion is requested by the Union, two other employees $ are employed in an identical capacity and should be either included or excluded, together with the five scalers or checkers named by the Union. The record shows that the only difference in the duties of the two employees named by the Company is that under the conditions prevailing at the Huron plant, they are less frequently called upon to do clerical work than the employees rejected by the Union. We find that scalers and checkers are clerical employees and we shall exclude from the unit the scalers and checkers named by both the Union and the Company s We find that all production employees in the Company's Huron plant engaged in killing, dressing, processing, packing, and shipping, excluding maintenance employees, general office and clerical em= ployees, plant clerks, scalers and checkers, supervisors, foremen, as- sistant foremen, watchmen, jobbing-room employees and livestock drivers, constitute a unit appropriate for the purposes of collective bargaining. We find further that said unit will insure to employees of the Company the full benefit of their right to self-organization and to collective bargaining and otherwise will effectuate the policies of the Act: VI. THE DETERMINATION OF REPRESENTATIVES We find that the question which has arisen concerning representa-, tion can best be resolved by an election by secret ballot. The parties have expressed no preferences concerning the pay-roll date to be used for determining eligibility to vote. In accordance with our usual practice we shall select a current pay roll as the basis upon which eligibility shall be determined. The Union requests that peak-season employees first employed by the Company during the peak season of 1940-1941 should be pre- cluded from voting in the election. The Company apparently takes the position that all employees on- its pay roll during the last peak season should participate in the election. The Company 's business is highly seasonal and employment during peak season, i. e., between "Roy Barber and Eva Loomis. 9In the Matter of Swift & Company and Amalgamated Meat Cutters & Butcher Workmen of North America, A. F. of L., 35 N. L . R. B., No: 41; Matter of Armour & Company hnd Local #566, Amalgamated Meat Cutters and Butcher Workmen of North America , 16 N. L. R. B. 334 , citing Matter of Armour & Company and Packinghouse Workers Organizing Committee for United Packinghouse Workers, Local 3117, et al., 8 N . L. R. B. 1100, at 1119. ARMOUR & COMPANY 891 'October and March, increases almost 100 per cent.10 It is the Com- pany's policy to employ so far as possible the same peak-season employees each year, and the record shows that normally it is able to fill approximately 70 per. cent of its seasonal needs with such employees. We shall direct that peak-season. employees who were employed during the pay-roll period immediately preceding the date of our Direction of Election, and who were also employed during the last previous peak season, shall be permitted to vote. Accordingly, we shall direct that those eligible to vote in the election shall be those regular employees within the appropriate unit who were employed by the Company during the pay-roll period immediately preceding the date of this Direction of Election, and those peak-season employees within the appropriate unit who were employed both during 'said period and during the last previous peak season, subject to such limitations and additions as are set forth, in the Direction. Upon the basis of the above findings of fact and upon the entire record in the case, the Board makes the following: CONCLUSIONS OF LAW 1. A question affecting commerce has arisen concerning the rep- resentation of employees of Armour & Company of Delaware and Armour & Company of Illinois, Huron, South Dakota, within the meaning of Section 9 (c) and Section 2 (6) and (7) of the National Labor Relations Act. 2. All production employees at the Huron plant, engaged in killing, dressing, processing, packing, and shipping, excluding maintenance . employees,.. general office and, clerical,, employees, ; plant clerks, scalers and checkers, supervisors, foremen, assistant foremen; watchmen, jobbing-room employees and livestock drivers, constitute a unit ap- propriate for the purposes of collective bargaining within the mean- ing of Section 9 (b) of the National Labor Relations Act. DIRECTION OF ELECTION By virtue of and .pursuant to the power vested in the National Labor Relations Board by Section 9 (c) of the National Labor Re- lations Act, 49 Stat. 449, and pursuant to Article III, Section 8, of National Labor Relations Board Rules and Regulations- Series. 2, as amended, it is hereby i° The Company carries on its pay roll approximately 175 regular employees , 150 of whom are engaged in production activities . During peak season as many as 175 extra employees may be added to the pay roll , with proportionately the largest increase occurring in the production departments. . 892 DECISIONS OF. NATIONAL LABOR RELATIONS, BOARD DIRECTED that, as part of the investigation authorized by the Board to ascertain representatives for the purposes of collective bargaining with Armour & Company of Delaware and Armour & Company of Illinois, Huron, South Dakota, an election by secret ballot shall be conducted as early as possible, but not later than thirty (30) days from the date of this Direction, under the direction and supervision of the Regional Director for the Eighteenth Region acting in this matter as agent for the National Labor Relations Board and subject to Article III, Section 9, of said Rules and Regulations, among all regular production employees at the Huron plant engaged in killing, dressing, processing, packing and shipping, who were employed by the Company during the pay-roll period immediately preceding the date of this Direction, and, all peak-season employees in those classi- fications who were employed both during said period and during the last previous peak season, including employees who did not work during such pay-roll period because they were ill or on vacation or in the active military service or training of the United States or temporarily laid off, but excluding maintenance employees, general office and clerical employees, plant clerks, scalers and checkers, super- visors, foremen, assistant foremen, watchmen, jobbing-room em- ployees and livestock drivers, and employees who have since quit or been discharged for cause, to determine whether or not they desire to be represented by Amalgamated Meat Cutters and Butcher Work- men of North America, Local 416, affiliated with the American Fed- eration of Labor, for the purposes of collective bargaining.