Electric Vacuum Cleaner Co., Inc.

National Labor Relations Board - Board Decisions

Jul 7, 1938

8 N.L.R.B. 112 (N.L.R.B. 1938)

In the Matter of ELECTRIC VACUUM CLEANER COMPANY, INC. and
UNITED ELECTRICAL & RADIO WORKERS OF AMERICA, Lcc a 720
In the Matter of ELECTRIC VACUUM CLEANER COMPANY, INC. and
UNITED ELECTRICAL & RADIO WORKERS OF AMERICA, LOCAL 720
Cases Nos. C-266 and B-353.-Decided July 7, 1938
Electric Vacuum Cleaner Manufacturing Industry-Interference , Restraint,
and Coercion : threatening to discharge employees who refused to join com-
pany-favored union ; aiding union in organizational activities ; closing plant-
Discrimanat2on : discharge , refusing and failing to recall employees after closing
down plant ; charges of, dismissed without prejudice as to four persons-
Preferential Shop Agreement : held not to justify employer 's refusal to recall
employees , where no real notice of terms thereof was given-Closed-Shop Con-
tract: held without force or effect, where majority upon which it was based
was a direct result of employer 's unfair labor practices ; employer ordered to
cease giving effect to-Collective Bargaining : charges of failure to bargain col-
lectively dismissed-Reinstatement Ordered: discharged employee ; employees
not recalled to employment-Back Pay: awarded to discharged employee and
employees not recalled to employment-Investigation of Representatives: con
troversy concerning representation of employees : rival organizations--Strike:
sit-down-Unit Appropriate for Collective Bargaining : production and main-
tenance employees excluding clerical and supervisory employees ; plant-wide ;
organization of business ; history of collective bargaining relations with em-
ployer-Election Ordered : date of, to be determined in future.
Mr. Harry L. Lodisit, for the Board.
Mr. L. C. Speith and Mr. H. A. Spring, of Cleveland, Ohio, for the
respondent.
Mr. Sam H. Griff, of Cleveland, Ohio, for the United.
Mr. Edwin F. Woodle and Mr. Bernard Wachtel, of Cleveland,
Ohio, for the A. F. of L. Affiliates.
Mr. John H. Orgill, of Cleveland, Ohio, for the Cleveland Fed-
eration of Labor.
Miss Margaret B. Bennett, of counsel to the Board.
DECISION
ORDER
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On April 22, 1937, United Electrical and Radio Workers of
America, herein called the United, filed with the Regional Director
8 N. L. It B., No. 14.
112
DECISIONS AND ORDERS 113
for the Eighth Region ( Cleveland , Ohio ) a petition alleging that a
question affecting commerce had arisen concerning the representa-
tion of employees of Electric Vacuum Cleaner Company, Inc., Cleve-
land, Ohio, herein called the respondent , and requesting an investi-
gation and certification of representatives pursuant to Section 9 (c)
of the National Labor Relations Act, 49 Stat. 449, herein called the
Act. On the same day, the United filed with the Regional Director
charges alleging that the respondent had engaged in and was engag-
ing in unfair labor practices affecting commerce within the meaning
of the Act. On May 6, 1937, 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 1, as amended , ordered an investigation and
authorized the Regional Director to conduct it and to provide an
appropriate hearing upon due notice . On May 11, 1937 , the Board,
acting pursuant to Article III, Section 10 (c) (2 ), of said Rules and
Regulations , ordered a consolidation of the two cases for the pur-
poses of hearing.
On May 21 , 1937 , the Board , by the Regional Director, issued its
complaint against the respondent , alleging that the respondent had
engaged in and was engaging in unfair labor practices affecting com-
merce within the meaning of Section 8 (1), (3), and ( 5) and Sec-
tion 2 (6) and (7) of the Act. A motion to make the complaint
more definite and certain having been filed by the respondent, an
amended complaint was filed on May 27 , 1937. Notice of hearing
upon the petition was duly served upon International Molders Union
of North America, Local No. 430; Pattern Makers Association of
Cleveland and Vicinity; Metal Polishers International Union. Local
No. 3; International Association of Machinists, District No. 54;
and Federal Labor Union No. 18907 ; herein jointly called the A. F.
of L. Affiliates , all affiliated with the American Federation of Labor,
herein called the A. F. of L.; upon the respondent ; and upon the
United . The complaint and notice of hearing thereon and the
amended complaint and notice of hearing thereon were duly served
upon the respondent and upon the United. On June 4, 1937, the
respondent filed its answer , in which it admitted the interstate char-
acter of its business but denied having engaged in unfair labor prac-
tices, and prayed that the complaint be dismissed.
Pursuant to the notice a hearing on both the petition and the
complaint was held in Cleveland, Ohio, on June 10, 11 , 15, 16, 17 and
18, 1937, before William R. Ringer, the Trial Examiner duly desig-
nated by the Board . At the hearing the A. F. of L . Affiliates and
the Cleveland Federation of Labor were permitted to intervene. The
Board , the respondent, the United , the A. F. of L . Affiliates, and the
114 NATIONAL LABOR RELATIONS BOARD
Cleveland Federation of Labor were represented by counsel. Full
opportunity to be heard, to examine and cross-examine witnesses,
and to introduce evidence bearing upon the issues was afforded to all
the parties.
At the end of the Board's case concerning the unfair labor prac-
tices, the respondent renewed its motion to dismiss the complaint,
which motion was denied by the Trial Examiner. At the same time
the Trial Examiner granted a motion by counsel for the Board to
amend the complaint to conform to the proof with respect to varia-
tions not involving surprise or material changes. The respondent
also moved that the petition be dismissed, which motion was denied.
These rulings by the Trial Examiner are hereby affirmed.
During the course of the hearing, the Trial Examiner made sev-
eral other rulings on motions and on objections to the admission of
evidence. The Board has reviewed the rulings of the Trial Exam-
iner and finds that no prejudicial errors were committed. The rul-
ings are hereby affirmed.
After the close of the hearing briefs were filed by all parties.
On November 1, 1937, both cases were transferred to and continued
before the Board.
All parties were granted the right to apply for oral argument; but
no applications were made.
Upon the entire record in both cases, the Board makes the fol-
lowing : -
FINDINGS OF FACT
1. THE BUSINESS OF THE RESPONDENT
Electric Vacuum Cleaner Company, Inc., a New York corporation,
manufactures, sells, and distributes electric vacuum cleaners. It
has its principal office and place of business at Cleveland, Ohio, and
branches in about 100 cities in the United States and Canada. It
controls Premier Vacuum Cleaner Co., Ltd., of Toronto, and one-
third of its own stock is held by General Electric Co. About 75
per cent of the raw materials used by the respondent are obtained
outside of the State of Ohio, and about 90 per cent of its finished
products are shipped out of Ohio.
H. THE ORGANIZATIONS INVOLVED
United Electrical and Radio Workers of America is a labor organi-
zation affiliated with the Committee for Industrial Organization,
herein called the C. I. 0., admitting to its membership all produc-
tion and maintenance employees of the respondent, excluding office
workers and clerical and supervisory employees.
DECISIONS AND ORDERS 115
Metal Polishers, Buffers, Platers and Helpers, International Union,
Local No. 3, is a labor organization affiliated with the A. F. of L.,
admitting to its membership all metal polishers, buffers, and platers,
and their helpers, employed by the respondent.
International Association of Machinists, District No. 54, is a labor
organization affiliated with the A. F., of L., admitting to its mem-
bership all machinists employed by the respondent.
International Molders Union of North America, Local No. 430,
is a labor organization affiliated with the A. F. of L., admitting to
its membership all molders employed by the respondent.
Pattern Makers Association of Cleveland and Vicinity is a labor
organization affiliated with the A. F. of L., admitting to its mem-
bership all pattern makers employed by the respondent.
Federal Labor Union No. 18907 is a labor organization affiliated
with the A. F. of L., admitting to its membership all production
and maintenance employees of the respondent, except supervisory
employees and employees who are eligible for membership in any
of the above-mentioned unions affiliated with the A. F. of L.
III. THE UNFAIR LABOR PRACTICES
A. Interference, restraint, and coercion
Since 1929 , the A. F. of L. Affiliates have had some members among
the respondent's employees, particularly among the polishers. But
by 1935 the A. F. of L. Affiliates had dropped many of their members
because they were unable to pay their dues. After this decrease in
membership in the A. F. of L. Affiliates, the Mechanics' Educational
Society of America, herein called the M. E. S. A., formed a local
among the respondent's employees, and in the spring of 1935 con-
ducted a strike for higher wages. During this strike the M. E. S. A.
endeavored to negotiate with the respondent, but negotiations came to
a deadlock. Efforts of a conciliator from the United States Depart-
ment of Labor to bring the two sides together were unsuccessful.
There is some testimony to the effect that after the strike had gone
on about 10 weeks, members of the M. E. S. A. asked aid from the
A. F. of L. Affiliates, and that officials of the A. F. of L. Affiliates
said they would help the strike only if the strikers joined the A. F.
of L. Affiliates. In any case, officials of the A. F. of L. Affiliates
solicited members on the M. E. S. A. picket line, but obtained, at the
most, about 176 members. At that time the respondent employed
about 800 persons. The A. F. of L. Affiliates were able, however, to
secure a conference with the respondent and an agreement to nego-
tiate a contract . The A. F. of L. Affiliates then called a meeting of
the employees of the respondent and read a contract which they said
117213-39-vol 8--9
116 NATIONAL LABOR RELATIONS' BOARD
would probably be acceptable to the respondent. They asked the
° employees to join the A. F. of L. Affiliates and to go back to work
under the terms of the contract. The majority of the employees
voted to join and to go back to work; and immediately thereafter,
on June 22, 1935, a written contract was signed. The A. F. of L.
Affiliates did not reveal at this-meeting that an oral preferential shop
contract was also contemplated, providing that persons hired for the
first time after the settlement of the strike must join the A. F. of L.
Affiliates or be discharged. The respondent and the A. F. of L.
Affiliates allege, however, that such a contract was entered into orally
immediately after the meeting. This alleged oral preferential shop
contract was never reduced to writing. It does not appear that its
terms were ever posted or that it was ever announced at any meeting
of the employees.
Although the respondent claims that foremen were instructed to
inform employees concerning the alleged oral agreement, the testi-
mony does not show that any such instructions were carried out or
that employees were otherwise informed. The evidence merely
shows that certain employees were aware of a rumor of an oral
agreement. There is no showing that the alleged oral agreement was
put into effect by the respondent.
In July 1936, the respondent and the A. F. of L. Affiliates executed
another written agreement similar to that executed in June 1935.
The respondent claims that at the same time it and the A. F. of L.
Affiliates made another oral agreement similar to the previous oral
agreement. The evidence does not show that the employees were at
that time informed concerning the oral agreement or that it was put
into effect.
In March 1937, the A. F. of L. Affiliates began a new organizational
drive among the respondent's employees, which met with little suc-
cess. The A. F. of L. Affiliates then turned to and received aid from
the respondent. On at least one occasion, the respondent's superin-
tendent, George R. Paulus, accompanied an organizer while he went
from machine to machine talking to employees. On several occa-
sions foremen sent groups of employees to the respondent's office,
where officials of the A. F. of L. Affiliates, in the presence of officials
of the respondent, informed employees that if they did not join-one
of the A. F. of L. Affiliates they would lose their jobs. The respond-
ent claims that on such occasions the employees were notified of the
terms of the oral agreement. The testimony of the employees is to
the effect that while at these conferences they became aware of cooper-
ation between the respondent and the A. F. of L. Affiliates, the terms
of the alleged oral agreement were not made clear to them. , The
respondent conceded that persons employed prior to the strike on
DECISIONS AND ORDERS 117
June 23, 1935, and therefore not required to join the A. F. of L.
Affiliates under the alleged agreement, were among those called in,
but claims that such employees were merely asked to help organize
the other employees.
On March 18, 1937, Ed Ramsey, a machinist hired prior to June 23,
1935, was discharged for refusing to join one of the A. F. of L. Affili-
ates.' The discharge resulted in a spontaneous sit-down strike in the
machine shop. The respondent states that Ramsey's discharge was a
mistake and that he was immediately thereafter called to the office
but refused to come. Ramsey was not called, however, until after
the strike had begun, and he was not told why he was wanted in the
office. Moreover, Paulus, the superintendent, testified that he told
Ramsey's foremen that Ramsey had been discharged. Paulus clearly
knew at the time that Ramsey had been employed prior to June 23,
1935. The evidence is contradictory as to whether Paulus thereafter
went into. the machine shop and told Ramsey that he was not
discharged.
Several days before, the sit-down, some of the employees communi-
cated with the C. I. O. relative to organization of the respondent's
employees by it; and the C. I. O. began an organizational campaign.
When the sit-down began, the C. I. 0., at the behest of some of the
employees, sent as an adviser Walter E. Scott, who had been an organ-
izer for the M. E. S. A. at the time of the 1935 strike. Scott proposed
to the respondent, through the chief of police, a settlement of the
strike on the basis of the reinstatement of Ramsey and another em-
ployee, whose identity is not clear, and of free choice of union affilia-
tion. The respondent agreed to these terms, provided the A. F. of L.
Affiliates would consent. The A. F. of L. Affiliates then consented.
Thereupon, on March 19, 1937, the strikers evacuated the plant. The
next working day was Monday, March 22, 1937.
On Sunday, March 21, 1937, the respondent announced in the Cleve-
land newspapers that, in accordance with a letter which it had re-
ceived from the A. F. of L. Affiliates, its plant would be closed on
Monday, March 22.1 The letter, dated March 20, stated that "as bar-
gaining agent for your employees, we request you to temporarily
close your plant, pending present negotiations with you relative to
matters covered by our contract with you." The letter resulted from
a conference between the respondent and the A. F. of L. Affiliates on
March 20, 1937, at which, according to the respondent, the A. F. of L.
Affiliates threatened to strike unless the plant was closed.
With the closing of the plant, the membership of the United
increased. On March 26, 1937, Sam H. Griff, counsel for the United,
telephoned L. C. Speith, counsel for and vice president of the re-
1 The letter was quoted in full.
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118 NATIONAL LABOR RELATIONS BOARD
spondent, and offered to discuss the reopening of the plant. Speith
replied. that he would notify -Grill if his services were needed, but
Griff did not hear from Speith again. On April 2, 1937, the United
informed the respondent by letter that a majority of the respondent's
employees were members of the United; that the United, instead of
the A. F. of L. Affiliates, represented the majority "as to a settlement
of grievances arising under the existing contract" and were ready to
return to work under its terms; and that all grievances arising under
the contract would thereafter be handled by the committee of the
United signing the letter.
On April 3 and 4, 1937, the respondent put notices in the papers
directed to the respondent's employees, which stated that on July
6, 1936, the respondent, at the employees' request, had entered into a
contract with the A. F. of L. Affiliates recognizing them as the em-
ployees' duly chosen agents for collective bargaining; that, thereafter,
until June 23, 1937, it was agreed that the respondent employ only
persons affiliated with the A. F. of L. Affiliates; and that, after con-
ferences with the employees' agents, it was at their request resuming
operations April 5, 1937, but only those employees who were members
of the crafts under contract with the respondent would be employed.
Thereafter, on May 20, 1937, the respondent entered into a closed-
shop agreement with the A. F. of L. Affiliates, designating them as the
e2clusive representative of the respondent's employees. Any major-
ity which the A. F. of L. Affiliates may have had at this time was
clearly the result of the shut-down of the plant by the respondent and
the refusal of the respondent to employ persons other than those in
good standing with one of the A. F. of L. Affiliates.
It is clear from the foregoing that the respondent, in and after
March 1937, aided in the organizational activities of the A. F. of L.
Affiliates ; threatened to discharge and acquiesced in threats to dis-
charge employees who refused to join the A. F. of L. Affiliates; pub-
lished statements of intention to close its plant; did on March 22,
1937, close its plant; and on May 20, 1937, entered into a closed-shop
agreement with the A. F. of L. Affiliates. The respondent asserts in
justification of its acts other than the execution of the closed-shop
agreement on May 20 that they were undertaken in order to effectuate
the terms of the oral preferential shop agreement with the A. F. of L.
Affiliates previously discussed. It is clear, however, that a preferen-
tial shop agreement would in no event be a valid basis for many of the
acts of the respondent. Furthermore, as set forth above, there is no
showing in the record that, at the time the parties allegedly entered
into the oral agreement, employees were informed concerning it or
that the agreement was then put into effect. Although the respondent
claims later to have informed groups of employees concerning the
0
DECISIONS AND ORDERS 119
oral agreement, the evidence indicates that at no time were the terms
of any oral agreement made clear to them. Although the respondent
states that the oral preferential shop agreement did not apply to per-
sons employed prior to June 23, 1935, the newspaper notices published
April 3 and 4, 1937, did not mention any such distinction. The groups
of employees whom the respondent called in conference included em-
ployees hired prior to June 23, 1935, as well as persons employed
thereafter. We find the respondent's reliance upon the alleged oral
preferential shop agreement to be without merit .2
We find that the respondent by virtue of its aforesaid activities
has interfered with, restrained, and coerced its employees in the
exercise of the rights guaranteed in Section 7 of the Act.
B. The discriminations as to tenure of employment
The respondent delegated to the A. F. of L. Affiliates the task of
putting into effect the policy set forth in the newspaper notice. On
the morning of April 5, representatives of the A. F. of L. Affiliates
were stationed at the gates of the respondent's plant and no one was
permitted to enter without a clearance card from them. New em-
ployees were hired to fill the places of employees who were not
allowed to return to work. The respondent states that the above pro-
cedure was in conformance with the alleged oral contract. It also
states that the A. F. of L. Affiliates were instructed to admit all
employees not subject to discharge under such oral contract. In
actual practice, however, admittance to the plant was refused not
only employees hired since June 23, 1935, who were not members of
one of the A. F. of L. Affiliates in good standing, but also a num-
ber of persons employed prior to June 23, 1935. Moreover, the notice
published in the Cleveland newspapers drew no distinction between
employees hired prior to June 23, 1935, and those hired subsequently,
relative to a return to work. The notice stated that only those per-
sons who were members of one of the A. F. of L. Affiliates would
be employed following the close-down.
The complaint alleges that the respondent, on or about April 5,
1937, and at all times thereafter, failed or refused to recall to em-
ployment 28 named employees who had been required to cease work
when the respondent closed down the plant on March 19.
John Kern, Nicholas Kozma, William Fogarty, and Edward
Koutnik. Each was employed by the respondent prior to June 23,
1935, and worked until the plant, was closed down on March 22,
1937. None of the four employees belonged to any of the A. F. of L.
2 See subsection B hereof for a fuller discussion relative to our views concerning the
alleged oral preferential shop agreement.
120 ` NATIONAL LABOR RELATIONS BOARD
Affiliates. Although all four employees on April 5, 1937, or shortly
thereafter, sought employment, the respondent has failed and refused
to recall any of them to employment.
While working for the respondent Kern received 58 cents per hour,
Kozma 62 cents per hour, Koutnik 63 cents per hour, and Fogarty 58
cents per hour. Each worked 40 hours per week. At the hearing,
Kern testified that since April 28, 1937, he had been employed else-
where at approximately $25 per week but that he did not know
whether the job was temporary or permanent; Kozma and Koutnik
testified that they had been unemployed; and Fogarty testified that
he had earned $8.90 for part-time work.
Steve Dragosa, William Behrse, Howard Lowrance, Alfred Meiss-
ner, Arthur Troyan, George Onda, Arthur Kruse, Mitchell France,
Mike Smith, Theodore Vitosky, Fred Frank, Harold Keehl, John
Masters, and Joseph Macho. Each was also employed by the
respondent prior to the 1935 M. E. S. A. strike and until the respond-
ent closed its plant on March 22, 1937. All at one time or another
joined one of the A. F. of L. Affiliates, but all had become members
of the United before April 5, 1937. Although all the said employees
sought employment on or about April 5, 1937, the respondent has
failed and refused to recall any of them except Keehl to employment.
On April 26, 1937, Keehl was called back to work and worked until
May 10, 1937. On the latter date, he was informed by his foreman
that he could not work longer because his dues in one of the
A. F. of L. Affiliates were not paid. He went to the office of the
union, but being unable to pay his dues, did not receive a card or get
his job back.
At the time of the hearing, Dragosa had a temporary job, from.
which he had received about $230 altogether since the closing of the
plant. Onda, Lowrance, Smith, and France have had no employ-
ment. On June 4, 1937, Kruse obtained a new job, from which he
had earned about $30 at the time of the hearing. Before the closing
of the plant he earned* about $42 a week and had worked for the
respondent 7 or 8 years. Behrse and Frank have also received new
employment, but it may not be permanent. Altogether Behrse has
earned about $173 since the lock-out, and Frank has earned 60 cents
an hour working 9 hours a day. Behrse had worked 12 years for the
respondent and earned $1.05 an hour and Frank had worked 51/2
years and earned 58 cents an hour, -40 hours a week. Masters has
received new employment, from which he had earned about $100
at the time of the hearing.' At the time of the closing of the plant
he had worked 14 years for the respondent and was earning about
$42 a week. Macho has had temporary employment and has received,
including relief, about $205. He had worked 18 years for the
DECISIONS AND ORDERS 121
respondent and also earned $42 a week, working 40 hours a week.
Troyan had worked 3 years for the respondent, and received $42 a
week, working 40 hours a week. About 2 weeks before the hearing
he obtained new employment.
James Mitchell, Rudolph Rummell, Leo Pierret, Jewel Smith, and
Joseph Washko. Each was employed by the respondent subsequent to
June 23, 1935, and until the plant was closed' down on March 22, 1937.
All joined the United before the opening of the plant on April 5.
Although Mitchell, Pierret, Smith, and Washko on April 5, 1937, or
shortly thereafter, sought employment, the respondent has at all times
failed or refused to recall any of them except Mitchell to employment.
The respondent gave Mitchell employment on May 19, 1937. Rum-
mell went near the plant on April '5, 1937, but was afraid to go up to
the gate. About April 10, 1937, he joined one of the A. F. of L. Af-
filiates in order to get his job back. For 2 or 3 weeks after that he was
ill, but on May 10, 1937, he applied to the respondent for employment.
On May 24, 1937, the respondent gave him employment. Mitchell and
Rummell testified that they had earned nothing from April 5, 1937, to
the date of their reemployment by the respondent.
At the time of the shut-down, Washko and Pierret each worked 40
hours per week and received, respectively, 57 and 56 cents per hour.
According to their testimony at the hearing, Washko had earned on
a temporary job beginning April 19, 1937, 55 cents per hour for a 40-
hour week; Pierret had earned approximately $8; and Smith had
earned nothing.
Edward Rericha. When Rericha, who had been employed by the
respondent about 11 years, came to work on March 11, 1937, he found
that his time card had been removed. An official of one of the A. F.
of L. Affiliates, to which Rericha belonged, told him to go down to the
union office. There he was told that he had been discharged because
he had been suspended from the union for joining the C. I. O. At
this time he did not belong to the C. I. O. but he had been" discussing
with other employees at the'plant the desirability of joining. Subse-
quently, he was charged with failure to pay dues. Members of his
local, objected to his suspension from the union, and he was told to go
back to work. But by that time the plant had closed, and he has not
since been offered reinstatement by the respondent. While the plant
was closed he joined the United. On June 11, 1937, he found a job
elsewhere. From this job and from relief he has received altogether
about $50 since the shut-down . At the time of his discharge he was
earning about $42 a week, and working 40 hours a week.
The respondent relies upon the alleged oral agreement as justification
for its failure and refusal to recall to employment all of the 24 .persons
discussed above. It claims that under the oral agreement persons
122 NATIONAL LABOR RELATIONS BOARD
whom the respondent hired subsequent to June 23, 1935, became sub-
ject to discharge if they did not join one of the A. F. of L. Affiliates;
that although employees hired prior to June 23, 1935, were not re-
quired to join one of the A. F. of L. Affiliates they became subject to
discharge if they did join but failed to remain in good standing; 3 that
persons hired prior to June 23, 1935, became subject to discharge if
they joined any other union.4
It is clear from the evidence presented that the alleged oral agree-
ment was at most merely a preferential agreement whereby the re-
spondent would employ only persons affiliated with the A. F. of L.
and that it did not apply to persons employed prior to June 23, 1935.
Accordingly, even under the terms of the alleged preferential agree-
ment, the respondent unlawfully discharged the 19 persons here in-
volved who were employed prior to June 23, 1935.
Furthermore, the alleged preferential agreement afforded no justi-
fication for the discharge of Mitchell, Rummell, Pierret, Smith, and
Washko, who were hired subsequent to June 23, 1935. Indeed, the
agreement would furnish no such justification even-if substantially a
closed-shop agreement as is urged in the respondent's brief. Under
Section 8 (3) of the Act, an employer may enter into a closed-shop or
preferential agreement with a labor organization not established,
maintained, or assisted by an unfair labor practice. The employer
may not, however, discharge employees pursuant to such an agree-
ment without any real notice being given of the terms thereof. To
hold otherwise would make it impossible for an employee to dis-
tinguish between discrimination on 'the part of the employer in viola-
tion of the Act and compliance with an agreement valid under Section
8 (3) of the Act. Where an employee is unable to distinguish between
these two types of acts on the part of the employer, he risks jeopard-
izing his job if, thinking he is merely asserting his rights under the
Act, he refuses or neglects to join a designated union. Such a situa-
tion would defeat the purposes of the Act.
We have pointed out in Section III (A) above that the employees
had no real or reasonable notice concerning the terms of the alleged
O
This contention , presented in the respondent ' s brief, is not supported even by the
testimony of the respondent 's witnesses.
4 This contention , also presented in the respondent 's brief, is likewise unsupported by
the testimony of the respondent 's witnesses . In support of its contention , the respondent
calls attention to the following testimony of its vice president relative to a notice posted
in the plant in 1935: ". . . we informed our employees that we had entered into a
contract with the various affiliated unions of the American Federation of Labor, having
determined that a majority of the employees were members of those various organizations.
Having entered into such a contract , any person in our employ in the shop who did any-
thing to disturb the peace and friendly relationship would be considered as working
against the best interests of the company and as such was subject to discharge ." Joining
any union other than one of the A. F. of L. Affiliates, the respondent urges, disturbed
this "peaceful and friendly relationship."
DECISIONS AND ORDERS 123
oral agreement. Indeed, the acts of the respondent and the notices
published by the respondent were contradictory to -the terms of the
alleged oral agreement. Under the circumstances, the respondent
cannot justify its action regarding the aforesaid employees, or any
of them, on the basis of the alleged oral agreement.
On the basis of the foregoing, and in accordance with the allega-
tions of the complaint, we find that the respondent, in refusing and
failing to recall the aforesaid persons to employment and in dis-
charging Keehl on May 10, 1937, has discriminated against the said
employees with respect to hire and tenure of employment in order
to discourage membership in the United and encourage membership
in the A. F. of L. Affiliates, and has interfered with, restrained, and
coerced its employees in the exercise of the rights guaranteed in
Section 7 of the Act.
Frank Erzen, Austin Ballard, Frank Hunek, and William Krall.
There is no evidence in the record with respect to the allegations of
the amended complaint that the respondent on or about April 5, 1937,
and at all times thereafter, failed or refused to recall to employment
the said four employees. The portions of the amended complaint
which relate to Erzen, Ballard, Hunek, and Krall will therefore be
dismissed without prejudice.
C. The alleged refusal to bargain
On April 2, 1937, while the plant was closed down, the United
wrote the respondent, stating that a majority of the respondent's
employees were members of the United; that the United, rather than
the A. F. of L. Affiliates, represented a majority of the employees
"as to a settlement of the grievances arising under the existing con-
tract"; that the members of the United recognized the "existing
contract" and were ready to return to work immediately under its
terms; and that all grievances arising under the contract would
thereafter be handled by the committee of the United signing the
letter. The respondent did not reply to the letter. R. B. Wilson, a
vice president of the respondent, testified that the letter was not re-
ceived until April 5, 1937, the day the plant reopened.
At the hearing, a United official testified that 623 out of a total of
approximately 1,000 employees of the respondent had signed appli-
cation cards of the United. The official submitted 573 cards for the
confidential inspection of the Trial Examiner and stated that ap-
proximately 50 additional cards had disappeared from the United's
office. Since the United was unwilling to disclose the names of its
members to the respondent, the application cards were not submit-
ted in evidence.
124 NATIONAL LABOR RELATIONS BOARD
The United did, however, put in evidence what purported to be a
list of its members as of March 26, 1937, with marks after the names
of those who had belonged to one of the A. F. of L. Affiliates but
who had stated at 'a meeting of the United on that date that they
wanted to sever their connection ,with the A. F. of L. The names
marked do not constitute a majority of the employees of the respond-
ent at that time, and the evidence tending to establish, the identity
of the remaining names is insufficient.
We find that the evidence does not establish that the United at
any time represented a majority of the respondent' s employees
within an appropriate unit. We will, therefore, dismiss the amended
complaint in so far as it alleges that the respondent has engaged in
unfair practices within the meaning of Section 8 (5) of the Act.
IV. THE EFFECT OF THE 'UNFAIR LABOR PRACTICES UPON COMMERCE
We find that the activities of the respondent set forth in Section
III above, occurring in connection with the operations of the re-
spondent described in Section I above, have a close, intimate, and
substantial relation to trade, traffic, and commerce among the several
States, and have led and tend to lead to labor disputes burdening
and obstructing commerce and the free flow of commerce.
V. THE REMEDY
We have found that the respondent has interfered with, restrained,
and coerced its employees in the exercise of the rights guaranteed
them in Section 7 of the Act. We shall order the respondent to
cease and desist from such interference, restraint, and coercion.
We have also found that the respondent has discriminated in re-
gard to the hire and tenure of employment of John Kern, Nicholas
Kozma, William Fogarty, Edward Koutnik, Steve Dragosa, William
Behrse, Howard Lowrance, Alfred Meissner, Arthur Troyan, George
Onda, Arthur Kruse, Mitchell France, Mike Smith, Theodore Vi-
tosky, Fred Frank, John Masters, Joseph Macho, James Mitchell,
Rudolph Rummell, Leo Pierret, Jewel Smith, Joseph Washko, and
Edward Rericha, by failing and refusing to recall said persons to
employment on April 5, 1937, or at any time thereafter, except that
Mitchell was recalled to employment on May 19, 1937, and Rummell
on May 24, 1937. We shall, therefore, affirmatively require the re-
spondent to offer reinstatement to all of said employees except the
two who have been reinstated; to pay to the said employees to be
offered reinstatement, a sum of money equal to that which each would
normally have earned as wages, from April 5, 1937, to the date on
which they are offered reinstatement less the amount, if any, which
DECISIONS AND ORDERS 125
each has earned during that period; and to pay to Mitchell and
Rummell a sum of money equal to that which each would normally
have earned as wages from April 5, 1937, to the date on which they
were reinstated, less the amount, if any, which each earned from
April 5, 1937, to the date on which they were reinstated.
We have further found that the respondent has discriminated in
regard to the hire and tenure of employement of Harold Keehl by
failing and refusing to recall him to employment from April 5, 1937,
until April 26, 1937, and by discriminatorily discharging him on May
10, 1937. We shall, therefore, affirmatively require the respondent to
offer reinstatement to Keehl and to pay to him a sum of money equal
to that which he would normally have earned as wages from April 5,
1937, to April 26, 1937, and from May 10, 1937, to the date on which
he is offered reinstatement, less the amount, if any, which he has
earned during the said periods.
VI. THE QUESTION CONCERNING REPRESENTATION
We have noted in Section III above that the United claims to
represent a majority of the respondent's employees and has unsuccess-
fully sought to bargain with the respondent. The A. F. of L. Affili-
ates also claim to represent a majority of the respondent's employees.
The respondent, however, contends that no question concerning
representation exists, because of a closed-shop contract between it and
the A. F. of L. Affiliates, dated May 20, 1937. This contract was
entered into about a month after the United's petition to the Board
had been filed, and after negotiations between the respondent and
the A. F. of L. Affiliates, dating back to the shut-down -of the plant
by the respondent on March 22, 1937. As proof of authority to nego-
tiate the contract, the A. F. of L. Affiliates showed the respondent
membership cards of a majority of the production and maintenance
employees. It was testified that copies of the contract were signed
by 964 out of a total of about 1,032 employees, and 964 signed copies
were put in evidence.
This majority, however, was a direct result of the respondent's
unfair labor practices in closing its plant on March 22, 1937, and re-
employing only those in good standing with one of the. A. F. of L.
Affiliates. Because of these unfair labor practices the respondent's
employees were not free to designate. the bargaining agents of their
choice, but were compelled to designate the A. F. of L. Affiliates in
order to retain their jobs. The contract is, therefore, without force
or effect.
We find that a question has arisen concerning the representation
of employees of the respondent.
126, NATIONAL LABOR RELATIONS BOARD
VII. 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 respondent
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.
VIII . THE APPROPRIATE UNIT
The United contends that all of the production and maintenance
employees at the respondent's plant, excluding supervisory and cleri-
cal employees, constitute a unit appropriate for purposes of collective
bargaining. The respondent's plant is organized upon a mass pro-
duction basis, and the various departments in it are so closely related
functionally that, according to the testimony of the respondent's vice
president, the plant cannot run unless each department is operated.
The A. F. of L. Affiliates and the Cleveland Federation of Labor do
not suggest that a plant-wide unit is inappropriate, and the contracts
heretofore entered into between the respondent and the A. F. of L.
Affiliates have been on a plant-wide basis.
We find that the production and maintenance employees at the
respondent's plant, excluding clerical and supervisory employees,
constitute a unit appropriate for purposes of collective bargaining
and that said unit will insure to the employees at the respondent's
plant the full benefit of their right to self-organization and to collec-
tive bargaining and otherwise effectuate the policies of the Act.
IX. THE DETERMINATION OF REPRESENTATIVES
We have pointed out above that, although the United claims to
represent a majority of the employees of the respondent within an
appropriate unit, it has failed to establish this claim. We have also
shown that the A. F. of L. Affiliates claim to represent a majority of
such employees , but that they have been aided and assisted by the
respondent in obtaining members. We find, therefore, that the ques-
tion which has arisen concerning representation can best be resolved
by an election by secret ballot.
We shall not, however, at this time fix the date for the holding of
the election since we are of the opinion that the election should not
be held until sufficient time has elapsed to permit a free choice of
representatives unaffected by the respondent's unfair practices. We
shall, at the time we specify the date on which the election is to be
held, also specify the date on the basis of which eligibility to vote
in the election shall be determined.
DECISIONS AND ORDERS 127
Upon the basis of the foregoing findings of fact and the entire
record in the proceeding, the Board makes the following :
CONCLUSIONS OF LAW
1. International Molders Union of North America., Local No.
430; Pattern Makers Association of Cleveland and Vicinity; Metal
Polishers International Union, Local No. 3,; International Associa-
tion of Machinists, District No. 54; Federal Labor Union No. 18907;
and United Electrical & Radio Workers of America are labor
organizations within the meaning of Section 2 (5) of the Act.
2. The respondent, by discriminating in regard to the hire and
tenure of employment of John Kern, Nicholas Kozma, William Fo-
garty, Edward Koutnik, Steve Dragosa, William Behrse, Howard
Lowrance, Alfred Meissner, Arthur Smith, Theodore Vitosky, Fred
Frank, John Masters, Joseph Macho, James Mitchell, Rudolph Rum-
mell, Leo Pierret, Jewel Smith, Joseph Washko, Edward Rericha,
and Harold Keehl, thereby encouraging membership in the first five
labor organizations mentioned in paragraph 1.above, and discourag-
ing membership in United Electrical & Radio Workers of America,
has engaged in and is engaging in unfair labor practices, within the
meaning of Section 8 (3) of the Act.
3. The respondent, by interfering with, restraining, and coercing
its employees in the exercise of the rights guaranteed in Section 7 of
the Act, has engaged 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 commerce, within the meaning of Section 2 (6) and (7) of
the Act.
5. The respondent has not engaged in unfair labor practices within
the meaning of Section 8 (5) of the Act.
6. A question affecting commerce has arisen concerning the repre-
sentation of employees of Electric Vacuum Cleaner Company, Inc.,
Cleveland, Ohio, within the meaning of Section 9 (c) and Section
2 (6) and (7) of the Act.
7. The production and maintenance employees of the said company,
excluding clerical and supervisory employees, constitute a unit appro-
priate for the purposes of collective bargaining, within the meaning
of Section 9 (b) of the Act.
ORDER
Upon the basis of the above findings of fact and conclusions of
law, and pursuant to Section 10 (c) of the National Labor Relations
Act, the National Labor Relations Board hereby orders that ,the
0
128 NATIONAL LABOR RELATIONS BOARD
respondent, Electric Vacuum Cleaner Company, Inc., and its officers,
successors, and assigns, shall :
1. Cease and desist :
(a) From discouraging membership in United Electrical and
Radio Workers of America or any ,other labor organization by dis-
charging, refusing to reinstate, or otherwise discriminating against
its employees in regard to hire or tenure of employment, or any term
or condition of employment;
(b) From encouraging membership in International Molders
Union of North America, Local No. 430; Pattern Makers Association
of Cleveland and Vicinity; Metal Polishers International Union, Lo-
cal No. 3; International Association of Machinists, District No. 54;
Federal Labor Union No. 18907; or any other labor organization by
discharging, refusing to reinstate, or otherwise discriminating
against its employees in regard to hire or tenure of employment, or
any term or condition of employment;
(c) From in any other manner interfering with, restraining, or co-
ercing its employees in the exercise of the rights 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, as guaranteed in Section 7 of the National
Labor Relations Act; -
(d) From giving effect to the closed-shop agreement of May 20,
1937.
2. Take the following affirmative action, which the Board finds will
effectuate the policies of the Act :
(a) Offer immediate and full reinstatement to their former posi-
tions, without prejudice to their seniority and other rights and privi-
leges, to John Kern, Nicholas Kozma, William Fogarty, Edward
Koutnik, Steve Dragosa, William Behrse, Howard Lowrance, Alfred
Meissner, Arthur Troyan, George Onda, Arthur Kruse, Mitchell
France. Mike Smith, Theodore Vitosky, Fred Frank, John Masters.
Joseph Macho, Leo Pierret, Jewel Smith, Joseph Washko and Ed-
ward Rericha;
(b) Make whole the said John Kern, Nicholas Kozma, William
Fogarty, Edward Koutnik, Steve Dragosa, William Behrse, Howard
Lowrance, Alfred Meissner, Arthur Troyan, George Onda, Arthur
Kruse, Mitchell France, Mike Smith, Theodore Vitosky; Fred Frank,
John Masters, Joseph Macho, Leo' Pierret, Jewel Smith, Joseph
Washko, and Edward Rericha, for any loss of pay they have suffered
by reason of the respondent's discrimination in regard to their,hire and
tenure of employment by payment to each of them of a, sum of money
equal to that which each would normally have earned as wages from
DECISIONS AND ORDERS 129
April 5, 1937, to the date of such offer of reinstatement, less the
amount, if any, which each has earned during that period;
(c) Offer to Harold Keehl immediate and full reinstatement to
his former position, without prejudice to his seniority or other rights
and privileges, and make him whole for any loss of pay he has suf-
fered by reason of the respondent's discrimination in regard to his
hire and tenure of employment, by payment to him of a sum of
money equal to that which he normally would have earned as wages
during the period from April 5, 1937, to April 26, 1937, and during
the period from May 10, 1937, to the offer of reinstatement pursuant
to this order, less the amount, if any, which he has earned during
the said periods;
(d) Make whole James Mitchell and Rudolph Rummell for any
loss of pay they have suffered by reason of the respondent's discrimi-
nation in regard to.their hire and tenure of employment, by payment
to each of them of a sum- of money equal to that which each would
normally have earned as wages during the period from April 5, 1937,
to May 19, 1937, in the case of Mitchell, and during the period from
April 5, 1937, to May 24, 1937, in the case of Rummell, less the amount,
if any, which each earned during the respective periods;
(e) Immediately post notices in conspicuous places throughout its
plant, and maintain such notices for a period of thirty (30) con-
secutive days from the date of such posting, stating (1) that the
respondent will- cease and desist in the manner aforesaid; (2) that
the respondent's employees are free to join or assist United Electri-
cal & Radio Workers of America or any other labor organization
for the purposes of collective bargaining with the respondent or
other mutual aid or protection; (3) that in order to secure or con-
tinue employment in the plant, a person need not become or remain
amember of International Molders Union of North America, Local
No. 430; or Pattern Makers Association of Cleveland and Vicinity;
or Metal Polishers International Union, Local No. 3; or International
Association of Machinists, District No. 54; or Federal Labor Union
No. 18907; or any other labor organization; and (4) that the closed-
shop, agreement dated May 20, 1937, between the respondent and
the five unions last named, and designating those unions as the ex-
clusive representative of the respondent's employees, is void and of
no effect;
(f) Notify the Regional Director for the Eighth Region, Cleve-
land, Ohio, in writing within ten (10) days from the date of this
order what steps the respondent has taken to comply therewith.
It is further ordered that the complaint, in so far as it alleges
that the respondent discriminated in regard to the hire and tenure
of employment of Frank Erzen, Austin Ballard, Frank Hunek, and
130 NATIONAL LABOR RELATIONS BOARD
William Krall, within the meaning of Section 8 (3) of the Act, be,
and it hereby is, dismissed without prejudice.
And it is hereby further ordered that the complaint, in so far
as it alleges that the respondent has engaged in unfair labor prac-
tices within the meaning of Section 8 (5) of the Act, be, and it
hereby is, dismissed.
DIRECTION OF ELECTION
By virtue of and pursuant to the power vested in the National
Labor Relations Board by Section 9 (c) of National Labor Relations
Board Rules and Regulations-Series 1, as amended, it is hereby
DIRECTED that, as part of the investigation ordered by the Board
to ascertain representatives for the purposes of collective bargaining
with Electric Vacuum Cleaner Company, Inc., Cleveland, Ohio, an
election by secret ballot shall be conducted at such date as the Board
may in the future direct, under the direction and supervision of the
Regional Director for the Eighth 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 of the said company who were employed
by it during a pay-roll period which we shall in the future specify,
excluding clerical and supervisory employees, to determine whether
they desire to be represented by the American Federation of Labor
or by United Electrical & Radio Workers of America, affiliated with
the Committee for Industrial Organization, for the purposes of
collective bargaining, or by neither.