Dominguez Chemical Co.

National Labor Relations Board - Board Decisions

Mar 20, 1940

21 N.L.R.B. 784 (N.L.R.B. 1940)

In the Matter of DOMINGUEZ ' CHEMICAL COMPANY, AND STAUFFER
CHEMICAL COMPANY and OIL WORKERS INTERNATIONAL UNION
LOCAL No. 128, C. I. O.
Case No. R-1746.-Decided March 20, 1940
Chemical Manufacturing Indavstries-Investigation of Representatives: ques-
tion concerning representation : companies refuse to recognize Union as exclusive
bargaining agent until Union is certified by the Board-Unit Appropriate for
Collectme Bargaining: production and maintenance employees of both com-
panies, exclusive of supervisory and clerical employees, at their Dominguez,
California, plants : stipulated-Election Ordered
Mr. Marion A. Prowell, for the Board.
Gibson, Dunn cC Crutcher, by Mr. J. Stuart Neary and Mr. Hen? y
B. Ely, of Los Angeles, Calif., for the Companies.
Mr. Fred L. Phillips, of Long Beach, Calif., for the Union.
Mr. F. HWnilton Seeley, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On November 13, 1939, Oil Workers International Union,
Local No. 128, herein called the Union, filed with the Regional Di-
rector for the Twenty-first Region (Los Angeles, California) a
petition, and on December 29, 1939, an amended petition alleging
that a question affecting commerce had arisen concerning the repre-
sentation of employees of Dominguez Chemical Company, herein
called Dominguez, and Stauffer, Chemical Company, herein called
Stauffer,' both of Dominguez, California, and herein collectively
called the Companies, and requesting an investigation and certifica-
tion of representatives pursuant to Section 9 (c) of the National
Labor Relations Act, 49 Stat. 449, herein called the Act. On Feb-
ruary 10, 1940, 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 Regu-
lations-Series 2, as amended, ordered an investigation and au-
thorized the Regional Director to conduct it and to provide for an
appropriate hearing upon due notice.
' The original petition mentioned only the Dominguez Chemical Company.
21 N L. R B., No. 80
784
DOMINGUEZ CHEMiCAL COMPANY 785
On February 15, 1940, the Regional Director issued a notice of
hearing, copies of which were duly served upon the Companies, the
Union, the Central Labor Council of Los Angeles, and the Los
Angeles Industrial Union Council.2 Pursuant to notice, a hearing
was held on February 26 and 27, 1940, at Los Angeles, California,
before Thomas H. Kennedy, the Trial Examiner duly designated
by the Board. The Board, the Companies, and the Union were rep-
resented by counsel and participated in the hearing. Full oppor-
tunity to be heard, to examine and cross-examine witnesses, and to
introduce evidence bearing on the issues was afforded all parties.
During the course of the hearing the Trial Examiner made several
rulings on motions and on objections to the admission of evidence.
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 COMPANIES
Stauffer Chemical Company is a California corporation having its
principal office in San Francisco, California. It maintains branch
offices in New York City; Chicago, Illinois; Los Angeles, California;
and a plant at Dominguez, California, a portion of its operations
here involved, where it is engaged in the manufacture of liquid
caustic soda . The raw materials used by Stauffer in this process
are soda ash and lime. Stauffer purchased approximately $144,912
and $140,896 worth of such raw materials during 1937 and 1938,
respectively. In the same years the products of Stauffer's Dom-
inguez plant , were valued- at approximately $530,257 and $529,856,
respectively. These were'sold by it to the following firms in the pro-
portions indicated after the name of each : Procter & Gamble-
32.64 per cent ; Shell Oil Company-18.56 per cent; Swift & Com-
pany-3.72 per cent ; Richfield Oil Corporation-8.27 per cent; The
Texas Company-4.75 per cent; and Clorine Solutions , Inc.-4.75
per cent.'
8 The last two organizations did not appear at the hearing
8 Procter .& Gamble uses caustic soda purchased from Stauffer in the production of soap.
About-46 percent of its-products are shipped outside the State of California.
Swift '&d Company-'uses caustic sodavin the. manufacture of soap. A. During 1939 it manu-
factured over 3,617,136 pounds of soap, of which 95 per cent was shipped outside' the
State of California.
Richfield Oil Corporation uses caustic soda purchased from Stauffer in the manufacture
of gasoline and related products . During 1939, it sold over $29,000,000 of such products,
of which 42.48 per cent was shipped outside the State of California.
The Texas Company uses caustic soda purchased from Stauffer in the manufacture of
gasoline. During 1938 , it sold approximately $34,086,050 worth of gasoline, of which
approximately 60.64 per cent was consumed outside the State of California.
786 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Stauffer advertises its products in at least two magazines having
a Nation-wide circulation.
Dominguez Chemical Company is a California corporation having
its office in Los Angeles, California, and its plant in Dominguez, Cali-
fornia. It is a wholly owned subsidiary of Stauffer and its plant is
located beside Stauffer's Dominguez plant. Both plants are located
within a common fence, and employees are interchanged between
them.
Dominguez is engaged in the manufacture of sulphuric acid. The
principal raw materials used by it are crude sulphur and hydrogen
sulphide. Dominguez purchased approximately $173,394 and $115,475
worth of crude sulphur in 1937 and 1938, respectively. Of these
amounts approximately 50 per cent originated outside the State of
California. Dominguez produced and sold approximately $372,595 and
$294,615 worth of sulphuric acid in 1937 and 1938, respectively. The
sulphuric acid was sold to the following companies in the approximate
percentages appearing after the name of each company : Shell Chemical
Company-74.66 per cent; Shell Oil Company-17 81 per cent; and
Stauffer-7.53 per cent.
H. THE ORGANIZATION INVOLVED
Oil Workers International Union, Local No. 128, C. I: 0., is a labor
organization affiliated with the Congress of Industrial Organizations,
admitting to its membership employees of the Companies.
III. THE QUESTION CONCERNING REPRESENTATION
At the hearing it was stipulated by all parties that on or about No-
vember 24, 1939, the Union, claiming to represent a majority of the
employees of the Companies within an appropriate unit, sought rec-
ognition as their exclusive collective bargaining agent. The Compa-
nies, however, at that time and at all times since, questioned the Union's
majority claim and refused to recognize the Union as the , exclusive
bargaining agent for their employees until the Union was certified as
such by the Board.
We find that a question has arisen concerning representation,of
employees of the Companies.
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, Companies de
scribed,in Section I„above; has•a 'close, intimate,'and'substantial rela-
tion to trade, traffic, and commerce among the,several;:St2tes,.and,,tends
DOMINGUEZ CHEMICAL COMPANY • 787
to lead to labor disputes burdening and obstructing commerce and the
free flow of commerce.
V. THE APPROPRIATE UNIT
At the hearing the Companies and the Union agreed that the produc-
tion and maintenance employees of both Companies, exclusive of
supervisory and clerical employees , at their Dominguez , California,
plants, constitute a single appropriate unit for the purposes of collec-
tive bargaining with the Companies . We see no reason for departing
from the unit agreed upon.
We find that the production and maintenance employees of both
Companies , exclusive of supervisory and clerical employees , at their
Dominguez , California , plants, constitute a single unit appropriate for
the purposes of collective bargaining with the Companies , and that said
unit will insure to employees of the Companies 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
We find that the question concerning representation which has
arisen can'best be resolved by an election by secret ballot.
We shall direct that the employees within the appropriate unit who
were employed by the-Companies during the pay-roll period immedi-
ately preceding the date of our Direction of Election , including those
who did not work during said pay-roll period because they were ill or.
on vacation , and those who were then or have since been tem-
porarily laid off, but excluding those who have since quit or been dis-
charged for cause , 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
CONCLUSIONS OF LAW
1. A question affecting commerce has arisen concerning the, repre-
sentation of employees of Dominguez Chemical Company and Stauffer
Chemical Company, Dominguez , California, within the meaning, of
Section 9 (c) and Section 2 (6) and (7) of the Act.
2. The production and maintenance employees of both Companies,
exclusive of supervisory and clerical employees , at their Dominguez,
California , plants, constitute a single unit appropriate for the purposes
of collective bargaining , within the meaning of Section 9 (b) of the
Act.
788 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
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 Relations Act,
and pursuant to Article III, Section 8, of National Labor Relations
Board Rules and Regulations-Series 2,-as amended, it is hereby
DIRECTED that, as part of the investigation authorized by the Board
to ascertain representatives for the purposes of collective bargaining
with Dominguez Chemical Company and Stauffer Chemical Company,
Dominguez, California, 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 of Election, under the direction and supervision of
the Regional Director for the Twenty-first 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 production
and maintenance employees who were employed by the Companies at
their Dominguez, California, plants during the pay-roll period imme-
diately preceding the date of this Direction, including those who did not
work during such pay-roll period because they were ill or on vacation,
and those who were then or have since been temporarily laid off, but
excluding supervisory and clerical employees and those who have since
quit or been discharged for cause, to determine whether or not they
desire to be represented by Oil Workers International Union, Local
No. 128, C. 1. 0., for the purposes of collective bargaining.