Bloedel-Donovan Lumber Mills

National Labor Relations Board - Board Decisions

Jul 12, 1938

8 N.L.R.B. 230 (N.L.R.B. 1938)

In the Matter of BLOEDEL-DONOVAN LUMBER MILLS and COLUMBIA
VALLEY LUMBER COMPANY and INTERNATIONAL WOODWORKERS OF
AMERICA, LOCAL No. 46
Case No. R-695.-Decided July 1. , 1938
Lumber Industry-Employer : parent corporation and wholly owned sub-
sidiary-Investigation of Representatives : controversy concerning representa-
tion of employees : controversy concerning appropriate unit ; rival organizations ;
employer 's refusal to recognize union as exclusive representative-Unit Appro-
priate for Collective Bargatin2ng : employees of parent company and subsidiary,
excluding supervisory employees with authority to hire and discharge and
office employees ; jurisdiction of, eligibility for membership in, and similarity
of organization of both rival organizations ; organization of business ; central
control of labor and personnel policies ; history of collective bargaining relations
with employer ; no controversy as to classifications of employees to be in-
cluded-Contracts : between employer and union , applicable only to members of
the contracting union, no bar to determination of representatives-Election
Ordered
Mr. Patrick H. Walker and Mr. William A. Babcock, Jr., for the
Board.
Mr. W. H. Abbott and Mr. Harold Lant, of Bellingham, Wash.,
for the parent Company and the Columbia Company.
Mr. Orville K. Algyer and Mr. Joseph P. Pemberton, of Blaine,
Wash., for the I. W. A.
Mr. Lester C. Voris, of Seattle, Wash., for the Sawmill Union.
Mr. David IF. Campbell, of counsel to the Board.
d
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On February 26, 1938, International Woodworkers of America,
Local No. 46, herein called the I. W. A., filed a petition with the
Regional Director for the Nineteenth Region (Seattle, Washington)
alleging that a question affecting commerce had arisen concerning
the representation of employees of Bloedel-Donovan Lumber Mills,
Bellingham, Washington, herein called the parent Company, and
requesting an investigation and certification of representatives pur-
suant to Section 9 (c) of the National Labor Relations Act, 49 Stat.
8 N. L. R. B., No. 27.
230
DECISIONS AND ORDERS 231
449, herein called the Act. On March 7, 1938, the National Labor
Relations Board, herein called the Board, acting pursuant to Sec-
tion 9 (c) of the Act and Article III, Section 3, of National Labor
Relations Board Rules and Regulations-Series 1, as amended, or-
dered an investigation and authorized the Regional Director to con-
duct it and to provide for an appropriate hearing upon due notice.
On March 26, 1938, the I. W. A. filed an amended petition stating
that the question concerning representation set forth in the original
petition also affected employees of Columbia Valley Lumber Com-
pany, Bellingham, Washington, herein called the Columbia Com-
pany, and alleging that all employees of the Columbia Company and
of the parent Company at its Cargo mill, including the crib boom,
Larson mill, sash and door factory, box factory, fuel department,
garage, and Saxon logging camp, except supervisory and office em-
ployees, constitute one unit appropriate for the purposes of collec-
tive bargaining.
On March 26, 1938, the Regional Director issued a notice of hear-
ing, copies of which were duly served upon the parent Company,
the Columbia Company, the I. W. A., and upon Lumber and Saw-
mill Workers Union, Local No. 2508, herein called the Sawmill
Union, named in the petition and amended petition as a labor organi-
zation claiming to represent employees directly affected by the inves-
tigation. On April 1, 1938, the Regional Director denied the request
of the parent Company and the Columbia Company for postpone-
ment of the hearing. Pursuant to the notice, a hearing was held
on April 4, 5, 6, and 7, 1938, at Bellingham, Washington, before
James M. Brown, the Trial Examiner duly designated by the Board.
The Board, the parent Company, the Columbia Company, the
I. W. A., and the Sawmill Union were represented by counsel and
participated in the hearing. Full opportunity to be heard, to ex-
amine and cross-examine witnesses , and to introduce evidence bearing
on the issues was afforded all parties.
The Columbia Company appeared specially at the commencement
of the hearing and moved for the dismissal of the amended petition
as to it, on the grounds that the operations of the parent Company
and the Columbia Company are separate and distinct, that the Co-
lumbia Company is not engaged in interstate commerce, and that the
alleged question concerning the representation of its employees is
not one affecting commerce. The motion was denied by the Trial
Examiner. Thereupon, the parent Company and the Columbia Com-
pany, the latter reserving its objection to the jurisdiction of the
Board , filed their separate answers embodying substantially the
grounds of the above motion and controverting the allegations of the
petition and amended petition as to the appropriate unit and the
232 NATIONAL LABOR RELATION'S BOARD
I. W. A.'s claim to have been designated by a majority of the em-
ployees as their bargaining representative. - At the close of the pres-
entation of evidence concerning the operations of the parent Com-
pany and the Columbia Company, the latter renewed its motion to
dismiss for lack of jurisdiction, and the Trial Examiner reserved
-his ruling. At the close of the presentation of all the evidence, the
Columbia Company again renewed its motion to dismiss the amended
petition for lack of jurisdiction, and the Trial Examiner denied the
motion. The above- rulings are hereby affirmed. During the course
of the hearing the Trial Examiner made rulings on other motions
and on objections to the admission of evidence. The Board has re-
viewed these rulings and finds that no prejudicial errors were com-
mitted. 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 COMPANIES
Bloedel-Donovan Lumber Mills, the parent Company, is a Maine
corporation licensed to do business in the State of Washington, and
has its principal place of business at Bellingham, Whatcom County,
Washington. It is engaged in logging timber and the manufacture
of lumber, boxes, shingles, sash and door products, and wood fuel.
At Bellingham it operates the Larson mill, the Cargo mill, including
a crib boom, a box factory, and a sash and door factory. The parent
Company has at Bellingham a fuel department-and a"garage where
its trucks and the trucks of the Columbia Company are serviced and
repaired. All the above operations are known as the Bellingham
operations. The parent Company also operates the Saxon camp, a
logging camp located in Skagit County, Washington, about 35 miles
from Bellingham. In addition to the above-mentioned operations,
which are involved in this proceeding, it operates a mill known as
the Skykomish mill and has logging camps in Clallam and King
Counties, and shingle mills in King and Whatcom Counties, all. in
the State of Washington, but which are not involved here.
Over 97 per cent of the logs used in its manufacturing operations
come from the parent Company's own timber lands. The remainder
is purchased from contract loggers, known as "gypos", and on the
open market. The parent Company produces approximately 30,-
000,000 millage board feet of lumber per month. Its products are
sold through sales representatives in New York City ; Chicago,
Illinois; Los Angeles, California; Minneapolis, Minnesota; and in
other principal lumber markets, and through wholesalers. Some
products are sold to foreign countries through the Douglas Fir 'Ex-
DECISIONS AND ORDERS 233
port and Exploitation Company. Over 90 per cent of the finished
products are sold and shipped outside the State of Washington.
About 5 per cent of the finished products are sold to the Columbia
Company for resale. Of the logs produced, 60 per cent are used in
the parent Company's mills, and from 4 to 8 per cent are sold out-
side the State. The gross sales during 1937 amounted to $6,800,000
in value. The parent Company employs approximately 1,328 per-
sons at the operations involved in this proceeding.
Columbia Valley Lumber Company is a Washington corporation
and is•a wholly owned subsidiary of the parent Company. Its office,
main retail yard, and detail sash and door shop are located in Bel-
lingham, Washington, in close proximity to the Bellingham opera-
tions. It also operates retail yards at Ferndale, Lynden, and Ever-
son, Whatcom County, Washington, which are situated 8 miles, 16
miles, and 18 miles, respectively, from Bellingham.
The Columbia Company is in the business of selling lumber, lum-
ber products, and building materials at retail. All sales are made
within the State of Washington. About 98 per cent of its purchases
are also made within the State. Almost all the lumber and lumber
products purchased, amounting to about 45 per cent of the Columbia
Company's total purchases, are obtained from the parent Company.
Thus, 85 per cent of the fir lumber and all the lathing are obtained
from the parent Company. Some lumber and the other building
materials, such as roofing, cement, and the like, which are not manu-
factured by the parent Company, are purchased elsewhere. It
employs about 50 persons.
For the purposes of accounting the parent Company and the Colum-
bia Company are treated as separate entities in transactions between
them. Separate sets of books are kept. Thus, the Columbia Company's
office and main yard are located on land leased from the parent Com-
pany at a stipulated rental. The parent Company furnishes the serv-
ices of certain of its skilled employees to the'Columbia Company, for
which the latter pays the parent Company. Conversely, the Colum-
bia Company charges the parent Company for glazing done by it for
the latter's sash and door factory. The Columbia Company pays
the parent Company for servicing and repairing its trucks. The
parent Company furnishes accounting services to the Columbia Com-
pany at $300 per month.
The parent Company's fuel department has office space in the Colum-
bia Company's building, and in return furnishes the fuel to heat the
building. In the past, some work of the Columbia Company has been
performed with the equipment of the parent Company, apparently
without charge. Employees of the parent Company are privileged
234 NATIONAL LABOR RELATIONS BOARD
to purchase goods from the Columbia Company and to have the pur-
chase price deducted from their wages, without written assignment.
The hiring and discharging of employees of the Columbia Company
and the conduct of its daily operations are carried on by E. LeValley,
its manager and secretary. Similar authority, however, is delegated
to the respective superintendents of the operations conducted under
the name of the parent Company. The determination of the policies
of the Columbia Company, however, is vested in J. N. Donovan, who
is its vice president and a director, and who occupies the same posi-
tions in the parent Company. Moreover, with the exception of LeVal-
ley, all the executive officers and directors of the Columbia Company
are also executive officers and directors of the parent Company.
Clearly, therefore, the parent Company exercises complete control over
the operations of its subsidiary. While the latter is organized as a
separate legal entity, in fact it is an integral part or department of the
parent Company.'
II. THE ORGANIZATIONS INVOLVED
International Woodworkers of America, Local No. 46, is a labor or-
ganization affiliated with the Committee for Industrial Organization.
It admits to membership all employees of the parent Company and
the Columbia Company in their operations involved in this proceed-
ing, except supervisory employees having the right to hire and dis-
charge, and office employees.
Lumber and Sawmill Workers Union, Local No. 2508, is a labor or-
ganization affiliated with the American Federation of Labor, admit-
ting to its membership the same employees as the I. W. A. admits.
III. THE QUESTION CONCERNING REPRESENTATION
Prior to August 7, 1937, it appears that the Sawmill Union repre-
sented a majority of all employees in the operations here involved.
Under a contract dated July 22, 1936, it was recognized by the parent
Company as the bargaining agent for its members in the Bellingham
operations. Under a contract dated September 11, 1936, it was recog-
nized as the representative of its members employed by the Colum-
bia Company. Under a contract entered into during the latter part
of 1936, the Sawmill Union was recognized by the parent Company
as the bargaining agent for its members in the' Saxon camp. While
all three contracts are now in effect, the latter until March 1, 1939,
and the former two until 30 days' notice of termination shall be given,
it is to be noted that none of them grant exclusive bargaining rights.
Pursuant to these contracts, the Sawmill Union claims to be the
'Cf. Matter of Consolidated Edison Company of New York , Inc. and its Affiliated
Companies and United Electrical and Radio Workers of America, etc , 4 N. L R. B. 71.
DECISIONS AND ORDERS 235
recognized representative of its members in the Saxon camp and in
the Bellingham operations. The extent of its membership therein is
not shown in the record. As to employees of the Columbia Company,
the Sawmill Union also contends that it is the bargaining agent for
its members pursuant to the applicable contract. It further contends
that it is the exclusive representative of employees of the Columbia
Company, since it alleges that it has been designated by all said
employees.
On August 7, 1937, a majority of the former members of the Saw-
mill Union formed the I. W. A. While they did not formally resign
from membership in the Sawmill Union or relinquish its charter, it is
clear that they are no longer members of the Sawmill Union and hence
do not fall within the terms of the said contracts. Subsequently, the
I. W. A. notified the parent Company, the Columbia Company, and
other employers with whom the Sawmill Union had contracts, of the
change in membership, and treated itself as the successor to the Saw-
mill Union as a party to the said contracts. It is not shown what
effect, if any, the parent Company gave to the notification sent it.
However, thereafter it dealt both with the I. W. A. and with the Saw-
mill Union concerning grievances.
In February 1938 the I. W. A. requested the parent Company to
recognize it as the exclusive representative of the employees at the
Bellingham operations, the Saxon camp, and the Columbia Company.
The parent Company refused on the ground of the existence of the
contracts with the Sawmill Union. The parent Company also ques-
tioned the propriety of including all the aforesaid employees in one
unit. The I. W. A. has made no separate request of the Columbia
Company to recognize it as the exclusive representative of its
employees.
We find that a question has arisen concerning representation of
employees of the parent Company and the Columbia 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 parent
Company and the Columbia Company 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 I. W. A. contends that an appropriate unit consists of all
employees of the parent Company at its Bellingham operations and
236 NATIONAL LABOR RELATIONS BOARD
Saxon camp, together with all employees of the Columbia Company,
excluding supervisory employees with authority to hire and discharge,
and office employees.
The Sawmill Union contends that employees of the Columbia Com-
pany constitute a separate unit. It appears, although it is not entirely
clear, that the Sawmill Union also contends that employees at the
Saxon camp constitute a separate unit.
The parent Company maintains that employees at the Saxon camp
constitute a separate unit. It further contends, as does the Columbia
Company, that the latter's employees constitute a separate unit, over
which the Board has no jurisdiction. We have found above that the
Board has jurisdiction.
An analysis of the contentions of the parties shows that they are in
agreement on two points: (1) that the employees at the Bellingham
operations may properly be included in one bargaining unit, and (2)
that office employees and supervisory employees with authority to hire
and discharge should be excluded from the unit or units found to be
appropriate. The questions remaining are whether either the em-
ployees at the Saxon Camp or the employees of the Columbia Com-
pany or both should be included with the employees at the Bellingham
operations in a single unit or whether each of these three groups of
employees constitutes an appropriate bargaining unit.
The jurisdiction assumed by both the I. W. A. and the Sawmill
Union is identical. Each admits to membership all employees in the
lumber industry in the logging, manufacturing, and retail branches,
except supervisory employees having authority to hire and discharge,
office workers, and certain other classifications of employees not mate-
rial here. Each has geographical jurisdiction over employees of
operations in Whatcom County, and the Saxon camp, which is situ-
ated in Skagit County. Both unions are organized along industrial
lines.
Prior to August 7, 1937, the Sawmill Union included among its
members employees at the Bellingham operations, the Saxon camp,
and the Columbia Company. A sub-local union was established for the
loggers in the vicinity of the various logging camps, since it was incon-
venient for them to attend the regular meetings at Bellingham. More-
over, members at the Saxon camp met informally at the camp to
discuss their individual problems. The authority to act in behalf of
its members and to represent them in matters of collective bargaining,
however, was retained by and continued to be exercised by the Saw-
mill Union. Subsequent to August 7 the Sawmill Union, as well as
the I. W. A., was organized and functioned in the same manner.
From January to June 1935 the parent Company, bargained with
DECISIONS AND ORDERS 237
the Sawmill Union as the representative of employees at the Belling-
ham operations. In June 1935, a strike occurred in the Bellingham
operations and the retail sash and door 'shop of the Columbia Com-
pany. Shortly thereafter, the retail yards of the Columbia Com-
pany were picketed, resulting in their being closed. Although em-
ployees of the Saxon camp were not then fully organized and were
not involved in the strike, it likewise was shut down because of the
closing of the Bellingham operations. The strike was settled pur-
suant to a memorandum dated June 15, 1935, and signed by Donovan
on behalf of the parent Company. The extent of applicability of the
memorandum is not clear from its terms. In the main it covered the
Bellingham operations, although it also provided for base pay for
common labor in the logging camps. Its terms do not on their face
relate to employees of the Columbia Company, but it is not shown
that the strike as to them was settled pursuant to any separate
agreement or memorandum.
Thereafter, the contracts already described in Section III above
were negotiated and signed. In the negotiations the Sawmill Union
acted through committees composed of employees at the Saxon camp,
each of the Bellingham operations, and the Columbia Company, re-
spectively, together with officers of the Sawmill Union. The parent
Company participated in the negotiations through Donovan, its vice
president, who signed the contracts on its behalf, and through the
respective superintendents or managers of the Saxon camp and each
of the Bellingham operations. The Columbia Company was repre-
sented by its manager and secretary, LeValley, who signed the con-
tract on its behalf. LeValley, however, acted upon consultation with
Donovan. The contracts were between the parent Company and the
Columbia Company, respectively, and the Sawmill Union, approval
of the terms in each instance being first made by the latter's entire
membership. The evidence, therefore, shows that there is a history
of successful collective bargaining prior to August 7, 1937, by all
employees involved as one unit. It is not shown that this history has
been altered materially by conditions existing subsequent to that date.
Rather, the contrary conclusion is indicated by the evidence.
It has already been found that the Columbia Company constitutes
an integral part of the parent Company's operations. The history
of bargaining shown by the record and the jurisdictional claims as to
membership of both organizations lead us to find that the employees
at the Saxon camp and at the Columbia Company-should be included
with the employees at the Bellingham operations in one unit.
We find that all employees of the parent Company at its Cargo
mill, including the crib boom, Larson mill, sash and door factory,
238 NATIONAL LABOR RELATIONS BOARD
box factory , fuel department , garage, and Saxon camp , together with
all employees of the Columbia Company, excluding supervisory em-
ployees with authority to hire and discharge , and office employees,
constitute a unit appropriate for the purposes of collective bargain-
ing, and that said unit will insure to employees of the parent Com-
pany and the Columbia Company the full benefit of their right to
self-organization and to collective bargaining and otherwise effectuate
the policies of the Act.
VI. THE DETERMINATION OF REPRESENTATIVES
At the hearing, the I. W. A. introduced a membership list. A com-
parison with pay-roll lists introduced in evidence discloses that of
the approximately 1,260 employees shown thereon as being in the
appropriate unit, the names of some 1,076 appear on said membership
list. The Sawmill Union, however, questions the authenticity of the
designations represented by the membership list, and asserts that the
names of some of its members appear thereon . No signed applica-
tions for membership or other original data were introduced in evi-
dence. The extent of the claims of the Sawmill Union does not
appear in the record. There is evidence, however, that the Sawmill
Union has some membership in various operations in the appropriate
unit.
Moreover, it appears that the pay-roll lists which were introduced
include the names of some persons who are not actually employed by
the parent Company at its Bellingham operations , and only approxi-
mately two-thirds of the employees named on the list for the Saxon
camp are permanent employees . Pay rolls which were introduced in
evidence were for periods when the operations of the parent Company
were below the normal volume.
In view of these facts, we believe that the question concerning repre-
sentation can best -be resolved by holding an election by secret ballot.
The petition was filed during a period in which the Bellingham opera-
tions were at less than normal capacity and while the Saxon camp
was completely shut down. It appears that a more normal capacity
of production and employment is attained during the summer months.
In order to insure eligibility to the greatest number of employees, all
employees employed in the appropriate unit during the last pay-roll
period of each of the respective operations next preceding the date of
this Direction shall be eligible to vote in the election.
Upon the basis of the above findings of fact and upon the entire
record in the case , the Board makes the following :
DECISIONS AND ORDERS 239
CONCLUSIONS OF LAW
1. A question affecting commerce has arisen concerning the repre-
sentation of employees of Bloedel-Donovan Lumber Mills and Colum-
bia Valley Lumber Company, Bellingham, Washington, within the
meaning of Section 9 (c) and Section 2 (6) and (7) of the Act.
2. All employees of the parent Company at its Cargo mill, includ-
ing the crib boom, Larson mill, sash and door factory, box factory,
fuel department, garage, and Saxon camp, together with all employees
of the Columbia Company, excluding supervisory employees with
authority to hire and discharge, and office employees, constitute a
unit appropriate for the purposes of collective bargaining, within the
meaning of Section 9 (b) of the 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 Rela-
tions Act, and pursuant to Article III, Section 8, of National Labor
Relations Board Rules and Regulations-Series 1, as amended, it is
hereby
DIRECTED that, as part of the investigation authorized by the Board
to ascertain representatives for collective bargaining with Bloedel-
Donovan Lumber Mills and Columbia Valley Lumber Company, an
.election by secret ballot shall be conducted within twenty (20) days
from the date of this Direction, under the direction and supervision
of the Regional Director for the Nineteenth 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 the
employees of Bloedel-Donovan Lumber Mills employed at its Cargo
mill, including the crib boom, Larson mill, sash and door factory, box
factory, fuel department, garage, and Saxon camp, and among all em-
ployees of Columbia Valley Lumber Company, employed during the
last pay-roll period in each of said operations, respectively, next pre-
ceding the date of this Direction, excluding supervisory employees
with authority to hire and discharge, office employees, and those who
have since quit or been discharged for cause, to determine whether
such employees desire to be represented by International Woodworkers
of America, Local No. 46, affiliated with the Committee for Industrial
Organization, or by Lumber and Sawmill Workers Union, Local No.
2508, affiliated with the American Federation of Labor, for the pur-
pose of collective bargaining, or by neither.
240
[SAME TITLE]
NATIONAL LABOR RELATIONS BOARD
AMENDMENT TO DIRECTION OF ELECTION
July 29, 1938
On July 12, 1938, the National Labor Relations Board, herein
called the Board, issued a Direction of Election in the above-entitled
proceeding, the election to be held within twenty (20) days from the
date of Direction, under the direction and supervision of the Re-
gional Director for the Nineteenth Region (Seattle, Washington).
The Board, upon the recommendation of the Regional Director, for
good cause shown, hereby amends its Direction of Election by strik-
ing therefrom the words "within twenty (20) days from the date of
this Direction" and substituting therefor the words "at such time as
the Board may in the future direct."
8 N. L. R. B., No. 27a.