Coty, Inc., Coty Products Company, Coty Processing Co.

National Labor Relations Board - Board Decisions

Dec 27, 1938

10 N.L.R.B. 816 (N.L.R.B. 1938)

In the Matter of COTY, INC., COTY PRODUCTS COMPANY, COTY PROC-
ESSING Co. and UNITED MINE WORKERS OF AMERICA, DISTRICT No.
50, CHEMICAL, DRUG & COSMETIC DIVISION
Case No. C-1074.-Decided December 27, 1938
Perfume and Cosmetic Manufacturing Industry-Settlement : stipulation pro-
viding for compliance with the Act-Order: entered on stipulation : complaint
dismissed as to respondent legally dissolved and as to three persons.
Mr. Daniel Baker, for the Board.
Coudert Bros., by Mr. Thomas K. Finletter, Mr. Louis Bernstein,
and Mr. Paul Fuller, Jr., of New York City, for the respondents.
Mr. Herman Edelsberg, of New York City, for the Union.
Mr. Langdon West, of counsel to the Board.
DECISION
AND
ORDER
STATEMENT OF THE CASE
Upon charges and amended charges duly filed by United Mine
Workers of America, District No. 50, Chemical, Drug and Cosmetic
Division, herein called the Union, the National Labor Relations
Board, herein called the Board,' by the Regional Director for the
Second Region (Newt. York City), issued its complaint dated April
5, 1938, and its amended complaint dated September 14, 1938, against
Coty, Inc., Coty Products Corporation, and Coty Processing Co.,
Inc.,1 New York City, herein called the respondents, alleging that
the respondents had engaged in and were 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 Rela-
tions Act, 49 Stat. 449, herein called the Act. A copy of the com-
plaint and the amended complaint and notices of hearing thereon
were duly served upon the respondents and the Union.
Concerning the unfair labor practices, the complaint, as amended,
alleged, in substance, that the respondents terminated the employ-
'In the pleadings two of the respondents were incorrectly designated Coty Products
Company and Coty Processing Co
10 N L. R. B., No. 71.
816
DECISIONS AND ORDERS 817
ment of and refused to reinstate one named employee because he
joined and assisted the Union and engaged in concerted activities
with other employees of the respondents for the purpose of collective
bargaining and other mutual aid and protection; aid that the re-
spondents, by the aforesaid act, and by speeches, suggestions, threats,
and various forms of petty discrimination against three named em-
ployees, and by other acts, interfered with, restrained, and coerced
their employees in the exercise of the rights guaranteed in Section 7
of the Act.
On April 12, 1938, the respondents filed their answer to the com-
plaint and on September 21, 1938, they filed their amended answer
to the amended complaint, in which they denied all the material
allegations and also moved to dismiss the complaint on the grounds
that two of the respondents were not proper respondents, and that
none of the activities alleged in the complaint affected commerce.
On October 4, 1938, the respondents filed a motion for a bill of
particulars relating to various allegations of the complaint. The
motions are hereby denied.
Pursuant to notice, a hearing was held from October 6 to October
24, 1938, at New York City, before Mapes Davidson, the Trial
Examiner duly designated by the Board. All parties participated
in the hearing and were represented by counsel. Full opportunity
to be heard, to examine and cross-examine witnesses, and to intro-
duce evidence bearing upon the issues was afforded all parties. Dur-
ing the hearing the complaint was amended so as to allege discrimi-
nation against an additional employee.
On October 24, 1938, Coty, Inc., Coty Products Corporation, the
Union, and counsel for the Board entered into a stipulation in settle-
ment of the case. This stipulation provides as follows :
It is hereby stipulated by and between Coty, Inc., and Coty
Products Corporation, hereinafter called the respondents; and
the United Aline Workers of America, District No. 50, Chemical,
Drug & Cosmetic Division, hereinafter called the union; and
Daniel Baker, attorney, National Labor Relations Board, as
follows :
1. Coty, Inc. is and has been since December 22, 1922 a cor-
poration duly organized and existing by virtue of the laws of
the State of Delaware and having its principal office in Wilming-
ton, Delaware. Coty Products Corporation is and has been
since 1930 a domestic corporation organized under and existing
by virtue of the laws of the State of New York, having its princi-
pal office and place of business in the City, County and State of
New York. Prior to July 1, 1938 Coty, Inc. was a holding com-
818 NATIONAL LABOR RELATIONS BOARD
pany. Since that date it has become an operating company. It
owns all of the stock of Coty Products Corporation, referred to
above, and Marie Earle, Inc., a domestic corporation organized
in 1922. Coty, Inc. owns a majority of the stock of Rallet Cor-
poration of America, a Delaware corporation.
Coty, Inc. and all its subsidiaries maintain their principal
place of business' at 423 West 55th Street, New York, N. Y.,
where Coty, Inc. together with its subsidiaries is engaged in the
business of manufacturing and/or selling perfumes and allied
products.
On November 1, 1937 Coty Products' Corporation, situated at
the above stated address, was engaged in the purchase of raw
materials and the manufacture of a line of products generally
known as Coty products, consisting of face powders, perfumes,
toilet waters, sachets, talcums and beauty preparations.
Coty Processing Co., Inc., which was then a domestic corpora-
tion organized under the laws of the State of New York with its
principal place of business at the same address, and which on,
or shortly after, July 1, 1938 was legally dissolved, purchased
these products from the Coty Products Corporation, packaged
them and sold them to the Coty Sales Corporation, which was
at that time a domestic corporation organized in 1937 under
the laws of the State of New York and which was subsequently
dissolved on or about July 1, 1938, and to other purchasers.
Coty Sales Corporation during the period from November 1,
1937 to June 30, 1938 sold and distributed merchandise packaged
and manufactured by Coty Processing Co., Inc. and Coty Prod-
ucts Corporation.
Coty Sales Corporation and Coty Processing Co., Inc. were
wholly owned subsidiaries of Coty, Inc. Both companies main-
tained their principal place of business at the above named ad-
dress. On or about July 1, 1938 both of these corporations were
dissolved and the business carried on by them was taken over
and carried on in substantially the same fashion by Coty, Inc.,
which then ceased to be solely a holding company and com-
menced functioning in addition as an operating company.
The management of the business conducted by Coty, Inc. and
its several subsidiaries was at all times conducted under the
general management of H. L. Brooks, the treasurer of the com-
pany, and B. B. Levy, chairman of the Board of Coty, Inc. and
president of Coty Products Corporation and an officer of all of
the other subsidiaries of Coty, Inc. All of the manufacturing
and selling operations of Coty, Inc. and all of its subsidiaries
were carried on at 423 West 55th Street, New York, N. Y.
Financial transactions, which took place between all of these
DECISIONS AND ORDERS 819
companies, were either consummated in cash or recorded as
journal entries upon the books of the several companies.
The raw materials used in the manufacture of Coty products
consist of jasmine, which was purchased and imported from the
south of France to the extent of `8,000 to 9,000 ounces in the
year of 1937; talc purchased in France to the extent of 1,000
tons during, the year of 1937; zinc oxide secured domestically ; oils
imported from Bulgaria ; musk from China ; vanilla beans from
Mexico. Seventy-five percent of these raw materials are secured
by the respondents from outside of the State of New York. In
addition, the respondents use bottles, folded boxes and leather
boxes. A substantial portion of the bottles are purchased in
Baltimore and transported from there to New York. A sub-
stantial portion of the boxes used are purchased in Chicago and
shipped from there to New York.
The products manufactured by the respondents, distributed
through Coty Sales Corporation up until July 1, 1938 and
thereafter by Coty, Inc., are distributed throughout the entire
United States and foreign countries. The respondents maintain
three branch offices and warehouses in Chicago, San Francisco
and Memphis and distribute its products to department stores,
drug stores, chain stores and wholesale druggists throughout
the country. More than fifty percent of the products manufac-
tured at 423 West 55th Street, New York, N. Y. are distributed
outside of the State of New York. Coty, Inc. owns approxi-
mately sixty-six and two-thirds percent of Coty, S. A., a French
company, which in general manufactures and distributes the
same type of products as are manufactured and distributed by
Coty, Inc. and its subsidiaries. This French company distributes
its products throughout a substantial part of the entire world.
The combined sales of the products of Coty, Inc. and its sub-
sidiaries is in excess of $3,000,000.00 a year. The amount ex-
pended for raw materials and accessories per year runs into a
few hundreds of thousands of dollars. Coty, Inc., as already
stated, owns all of the stock of Marie Earle, Inc., which sells and
distributes under the name of Marie Earle, creams, lotions and
face powders, all of which are manufactured by Coty Products
Corporation according to Marie Earle specifications at 423 West
55th Street, New York, N. Y. Rallet Corporation of America,
also a wholly owned subsidiary of Coty, Inc. distributes per-
fumes, bath powders and other products, which are assembled
and distributed from 423 West 55th Street, New York, N. Y.
Mr. B. B. Levy and Mr. H. L. Brooks constitute the managerial
heads of Coty, Inc. and all of its subsidiaries, accountable to
their respective Boards of Directors.
820 NATIONAL LABOR- RELATIONS BOARD
The respondents admit that they are engaged in interstate
commerce within the meaning of Section 2, subdivisions (6) and
(7) of the National Labor Relations Act.
2. It is agreed among all the parties that the National Labor
Relations Board may make a finding of fact with respect to the
business of the respondents in 'conformity with the facts set
forth in paragraph 1 above.
3. The respondents will do as follows :
a. Return Alba Stramose to the position of assistant de-
partment head in the comptometer department as held by her
prior to January 1, 1938.
b. Restore Augusta Klein to the status held by her in the
comptometer department prior to January 1, 1938. Respond-
ents will cause her to be given as much work in the comp-
tometer department on the average as is given to any of the
girls in that department with the exception of Natalie Zack
and Alba Stramose and Rebecca Pollack.
4. The case of Harold Weiss has been adjusted to the mutual
satisfaction of the respondents and the union by the payment
herewith of the sum of $500.00 to Harold Weiss as compensation.
5. The National Labor Relations Board may enter an Order
providing that the respondents :
a. Shall and will not interfere with, restrain or coerce its
employees in their right to self-organization, to form, join or
assist labor organizations, to bargain collectively through
representatives of their own choosing and to engage in con-
certed activities for the purpose of collective bargaining or
other mutual aid or protection.
b. Respondents take the following affirmative action:
(1) Restore Augusta Klein and Alba Stramose to positions
formerly held by them in accordance with the provisions of a
stipulation dated 24th clay of October, 1938.
(2) Post and keep posted at conspicuous' places throughout
the plant and offices for a period of at least 30 days the follow-
ing notice :
NOTICE TO EMPLOYEES OF COTY, INC.
COTY PRODUCTS CORPORATION
PURSUANT TO TIIE NATIONAL LABOR RELATIONS ACT
The employees of the above-named companies are free to
join, form, or assist any labor organization, to bargain col-
lectively through representatives of their own choosing, and
to engage in concerted activities for the purpose of collective
bargaining or other mutual aid or protection.
°' DECISIONS - AND ORDERS 821
The above -named companies will i of interfere with; restrain,
or coerce theii employees 'in'the exercise;of their rights in con-
nection with ' joining labor organizatidns , nor will they-' dis-'
criminate with reference to" liiie,' tenure ; or conditions of! em-
against any of their employees for joining 'or"re=
-maining members bf the United 'Miiie Workers of"Ame"ric&;
District No,. 50, Chemical , Drug .& Cosmetic Division ,• affiliated
with the ' CIO, or any A. F of''L. 'labor organizakion 'or'any
other labor ' organization . • -1
"I
It is 'expressly understood that the respondents in consenting
to entry of the Order set out in the preceding paragraph"naive
the further presentation of testimony before the Trial Examiner
in the hearing now pending and also waive the making of find`
ings of fact and conclusions of law by the National Labor Rela=
tions Board. ' ••
The respondents expressly consent to the entry by the Second
Circuit Court of Appeals of an enforcement order embodying -the
terms of the National Labor Relations Board's Order agreed to-
above in the event that the National Labor Relations Board-sebks
enforcement of its Order before that tribunal.
It is expressly understood by all parties to this agreement that
this stipulation is executed - subject to the approval of the N-a=
tiolial Labor Relations Board and should the National Labor
Relations Board fail to approve the terms and provisions con-
tained herein this stipulation shall be null and void and of no
effect and-the proceedings in this matter shall be in the same
status as ' if no ' stipulatibn had been entered into.
On December 2, 1938, the Board issued its order approving the
above stipulation , making it part of the record, and transferring the
proceeding to the Board for the purpose of entry of a decision and
order by the Board. - -
Upon the entire record in the case, the Board makes the following
FINDINGS OF .FACT
I. THE BUSINESS OF THE RESPONDENTS
Coty, Inc., a Delaware corporation , has its principal office at
Wilmington , Delaware.' It owns all of the stock of 'Coty Products
Corporation , a New York corporation, and Marie Earle, Inc., a New
York corporation, and a majority of the stock of Rallet Corporation
of America, a Delaware corporation. Coty, Inc. and its afore-men-
tioned subsidiaries maintain a principal place of business at New
York City, herein called the New York plant, where they are
engaged in the business of manufacturing and selling perfumes and
cosmetics.
147341-30-vol 10-53
822 NATIONAL LABOR RELATIONS BOARD
Prior to July 1, 1938, Coty, Inc., was solely a holding company;
Coty Products Corporation performed the manufacturing operations;
Coty Processing Co., Inc., another subsidiary of Coty, Inc.,,packed
the products manufactured by Coty Products Corporation; and Coty
Sales Corporation, also a subsidiary of Coty, Inc., sold and distributed
the products manufactured and packed by the other two subsidiaries.
The products were sold by Coty Products Corporation to Coty Proc-
essing Co., Inc., which in turn sold them to Coty Sales Corporation.
The financial transactions which took place between these companies
were either consummated in cash or recorded as journal, entries upon
the books of the several companies. On July 1, 1938, Coty Processing
Co., Inc. and Coty- Sales Corporation were legally dissolved and their
functions taken over and continued by Coty, Inc., which thereupon
became an operating company as, well as a holding company. At
all times Coty, Inc. and all its afore-mentioned subsidiaries had and
have the same management.
The respondents use each year, a few hundred thousand dollars'
worth of raw materials, consisting of jasmine, talc, zinc oxide, oils,
musk, and vanilla beans. Seventy-five per cent of these raw mate-
rials are shipped to the respondent's New York plant from points
outside the State of New York. The respondents also use bottles,
folding boxes, and leather boxes, a substantial portion of which are
shipped to the New York plant ' from points outside the State of
New York. The products sold by Marie Earle, Inc. and Rallet Cor-
poration of America are also manufactured by Coty Products Cor-
poration at the New York plant. The combined sales of Coty, Inc.,
and its subsidiaries are in excess of $3,000,000 per year. More than
50 per cent of the products manufactured at the respondents' New
York plant are distributed outside the State of New York. The re-
spondents admit that they are engaged in interstate commerce within
the meaning of the Act.
We find that the above-described operations constitute a continuous
flow of trade, traffic, and commerce among the several States.
ORDER -
Upon the basis of the above findings of fact, stipulation, and the
entire record in the case, and pursuant to Section 10, (c) of the Na-
tional Labor Relations Act, the National Labor Relations Board
hereby orders that Coty, Inc. and Coty Products Corporation, New
York City, shall:
- 1. Not interfere with, restrain, or coerce its employees in their
right to self-organization, to form, join, or assist labor organizations,
to bargain collectively through representatives of their `own choosing
and to engage in concerted activities for the purpose of collective bar-
gaining or other mutual aid or protection.
DECISIONS AND ORDERS 823
2. Take the following affirmative action, which the Board finds
will effectuate the policies of the Act :
(a) Restore Augusta Klein and Alba Stramose to positions for-
merly held by them in accordance with the provisions of a stipula-
tion dated the 24th day of October 1938;
(b) Post and keep posted at conspicuous places throughout the
plant and offices for a period of at least 30 days the following notice :
NOTICE TO EMPLOYEES OF COTY, INC.
CoTY PRODUCTS CORPORATION
PURSUANT TO THE NATIONAL LABOR RELATIONS ACT
The employees of the above-named companies are free to join,
form, or assist any 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.
The above-named companies will not interfere with, restrain,
or coerce their employees in the exercise of their rights in con-
nection with joining labor organizations, nor will they discrim-
inate with reference to hire, tenure, or conditions of employment
against any of their employees for joining or remaining mem-
bers of the United Mine Workers of America, District No. 50,
Chemical, Drug & Cosmetic Division, affiliated with the CIO,
or any A. F. of L. labor organization or any other labor organ-
ization.
IT IS FURTHER ORDERED that the complaint, in so far as it pertains
to the cases of Harold Weiss, Florence Richmond, and Pauline Vain-
stein, be, and it hereby is, dismissed.
AND IT IS FURTHER ORDERED that the complaint, in so far as it relates
to Coty Processing Co. Inc., now dissolved, be, and it hereby is, dis-
missed.