Elliott Bay Lumber Co.

National Labor Relations Board - Board Decisions

Aug 1, 1938

8 N.L.R.B. 753 (N.L.R.B. 1938)

In the Matter of ELLIOTT BAY LUMBER COMPANY, ELLIOTT BAY
MILL COMPANY and PLYWOOD AND VENEER WORKERS UNION; LOCAL
No. 26
Case No. R-622 .-Decided August 1, 1938
Lumber and Fir Plywood Industi ties-Investigation of Representatives: con-
troversy concerning representation of employees : rival organizations ; substan-'
tial doubt as to majority status; controversy as to appropriate unit-Unit
Appropriate for Collective Bargaining : production and maintenance employees
in both Mill Company and Lumber Company excluding supervisory and clerical
employees and watchmen; centralization of managementElection Ordered:
ballot to provide for choice of C. I 0. local on the one hand or two A. F. L.
locals on the other.
Mr. Thomas P. Graham, Jr., and Mr.,Daniel Baker, for the Board.
Mr. Craig L. Spencer, of Seattle, Wash., for the Mill Company and
the Lumber Company.
Houghton, Cluck cli Coughlin, by Mr. Paul Coughlin, of Seattle,
Wash., for Local 26.
Mr. Lester C. Voris, Seattle, Wash., for Local 2618 and Local 2519.
Miss Margaret M. Farmer, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On September 16, 1937, Plywood and Veneer Workers Union,
Local 26, herein called Local 26, filed with the Regional Director
of the ' Nineteenth Region (Seattle , Washington ) a petition alleging
that a question affecting commerce had arisen concerning the repre-
sentation of employees of Elliott Bay Mill Company , Seattle,
Washington, herein called the Mill Company, and requesting an
investigation and certification of representatives , pursuant to Section
9 (c) of the National Labor Relations Act, 49 Stat. 449, herein
called the Act. On February 11, 1938, 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
8 N L. R. B ., No. 84.
753
754 NATIONAL LABOR RELATIONS BOARD
Board Rules and Regulations-Series 1, as amended, ordered an
investigation and authorized the Regional Director to conduct it
and to provide for an appropriate hearing upon due notice.
On February 17, 1938, the Regional Director issued a notice of
hearing, copies of which were duly served upon the Mill Company,
upon Local 26, and upon Plywood and Veneer Workers Local 2618,
herein called Local 2618, a labor organization claiming to represent
employees directly affected by the investigation. Pursuant to the
notice, a hearing was held on March 7, 1938, at Seattle, Washington,
before Madison Hill, the Trial Examiner duly designated by the
Board. The Board, Local 26, and Local 2618 were represented by
counsel, the Mill Company by its president, and all participated in
the hearing. During the hearing the Trial Examiner made several
rulings on objections to the admission of evidence. The Board has
reviewed these rulings and finds that no prejudicial errors were
committed.
During the course of the hearing, Local 26 requested permission
to file with the Trial Examiner an amended petition to include em-
ployees of the Elliott Bay Lumber Company. The Trial Examiner
refused to accept the amended petition on the ground that it should
have been filed with the Regional Director. On May 12, 1938, Local
26 filed with the Regional Director an amended petition, alleging
that a question affecting commerce had arisen concerning the repre-
sentation of employees of Elliott Bay Mill Company and Elliott Bay
Lumber Company, Seattle, Washington, herein called the Lumber
Company. On May 18, 1938, the Board ordered the reopening of the
record for the taking of further evidence.
On May 24, 1938, the Regional Director issued a notice of hearing,
copies of which were duly served upon the Mill Company, the Lum-
ber Company, upon Local 26, upon Local 2618, and upon United
Brotherhood of Carpenters and Joiners of America, Local 2519,
herein called Local 2519, a labor organization claiming to represent
employees directly affected by the investigation. Pursuant to the
notice, a hearing was held on June 2, 1938, at Seattle, Washington,
before Thomas S. Wilson, the Trial Examiner duly designated by the
Board. The Board, Local 26, Local 2618, and Local 2519 were repre-
sented by counsel, the Mill Company by its president, the Lumber
Company by its treasurer, and all participated in the hearing. Full
opportunity to be heard, to examine and cross-examine witnesses,
and to introduce evidence bearing on the issues was afforded all
parties.
DECISIONS AND ORDERS 755
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
1. THE BUSINESS OF -THE COMPANIES
Elliott Bay Mill Company, a Washington corporation, with its mill
and principal place of business in Seattle, Washington, is engaged in
the manufacture of fir plywood. Its plant, the fifth largest of its
kind in the United States, is valued at $500,000. It maintains branch
offices in California, Illinois, Arizona, and New York City.
The total sales of the Company during 1937 amounted to $1,500,000.
The Company obtains practically all its raw materials in the State
of Washington. Approximately 90 per cent of the finished product
is shipped to States other than the State of Washington and to
Europe. It employs approximately 345 persons at its Seattle mill.
Elliott Bay Lumber Company, a wholly owned subsidiary of the
Mill Company, is located in Seattle, Washington, on the same prop-
erty as that of the Mill Company. It is engaged in the remanu-
facture of rough lumber. It remanufactures approximately six
million feet of lumber annually. Approximately 30 per cent of its
finished product is shipped outside the State of Washington and
approximately 70 per cent is sold at wholesale and retail in the city
of Seattle. It employs approximately 30 persons.
IT. THE ORGANIZATIONS INVOLVED
Plywood and Veneer Workers Local 26 is a labor organization
affiliated with the International Woodworkers of America, which is
in turn affiliated with the Committee for Industrial Organization.
It admits to membership all production and maintenance employees
of - both the Mill Company and the Lumber Company, excluding
watchmen and clerical employees.
Plywood and Veneer Workers Local 2618 is a labor organization
affiliated with the United Brotherhood of Carpenters and Joiners of
America, which is in turn affiliated with the American Federation of
Labor. It admits to its membership all production and maintenance
employees in both the Mill Company and the Lumber Company,
excluding watchmen and clerical employees.
Local 2519, United Brotherhood of Carpenters and Joiners of Amer-
ica, is a labor organization affiliated with the American Federation
of Labor. It claims jurisdiction over employees engaged in wood-
working involved in the manufacture, remanufacture, and handling
for sale of lumber in Seattle, Washington, and vicinity.
117213-39-vol. 8-49
756 NATIONAL LABOR RELATIONS BOARD
III. THE QUESTION CONCERNING REPRESENTATION
Prior to May 1935, Local 2519 was the only labor organization hav-
ing any membership among the employees of either company. It
numbered among its members three or four employees of.the Lumber
Company. It claimed no membership among the Mill Company
employees.
In May 1935, during a strike at the Mill Company, approximately
100 employees, including a few from the Lumber Company, formed
Local 2618 and obtained a charter from the American Federation of
Labor. In May 1937, the Mill Company recognized Local 2618 as
the sole collective bargaining representative of its employees. An
agreement negotiated by the parties was signed by the president of the
Mill Company but rejected by the labor organization pending the ad-
dition thereto of a wage scale. No wage scale was added and the
agreement was not signed by Local 2618.
During the summer of 1937, the Committee for Industrial Organi-
zation conducted an intensive campaign for members in and around
Seattle. Local 26 was chartered at. this time and many employees
from both companies became members of it. It claims that it repre-
sents a majority of such employees.
During January and February 1938, Local 2618 conducted an in-
tensive membership drive among the Mill Company employees and
succeeded in regaining many former members. At present it claims to
represent a majority of the employees of the Mill Company. It states
that since Local 2519, the other A. F. of L. affiliate, claims jurisdic-
tion over the employees of the Lumber Company and is engaged in
organizational activity among them, it has made no effort to solicit
membership among such employees.
Local 2519 testified that it is organizing the employees of the Lum-
ber Company. It does not claim to represent a majority of these
employees.
The president of the Mill Company has refused to bargain with
Local 26 on the ground that he has already recognized Local 2618 as
the bargaining agent for the Mill Company.
We find that a question has arisen concerning the representation
of employees of the Mill Company and of the Lumber 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 operation of the Mill Com-
pany, and of the Lumber Company, described in Section I above,
has a close, intimate, and substantial relation to trade, traffic, and com-
DECISIONS AND ORDERS 757
merce 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
Local 26 seeks a single bargaining unit composed of the production
and maintenance employees of both the Mill Company and the Lum-
ber Company, exclusive of clerical employees, supervisory employees,
and watchmen. Local 2618 contends that there should be separate
bargaining units composed of such employees in the Mill Company
and the Lumber Company, respectively. At the first hearing the presi-
dent of the Mill Company took the position that the employees of
each company should be in separate units, but at the second hearing
he expressed doubt as to the appropriate bargaining unit or units.
Local 2519 claims jurisdiction only over employees of the_ Mill
Company.
The evidence presented shows that the two companies maintain sep-
arate pay rolls and separate office forces, that there is a separate man-
ager for each company, and that due to the difference in the nature
of the operations there is no interchange of employees between the
two companies. On the other hand, the Lumber Company is a Wholly
owned subsidiary of the Mill Company, and, according to the testi-
mony of the president of the Mill Company, ultimate control of the
policies of both companies rests in his hands. He also testified that
although he had rarely interfered with the management of the Lum-
ber Company, he could make the final decisions concerning the labor
policies of both companies. The two companies occupy the same
property and share a common yard and common office space. One
telephone exchange serves both companies. The Mill Company power-
house supplies steam to both companies, and its maintenance crew also
services both companies. Under all the circumstances, we conclude
that employees of both companies are appropriately included in a
single bargaining unit.
Local 26 and Local 2618 agree to the exclusion from the bargaining
unit of supervisory employees and agree that 12 individuals' desig-
nated as foremen on the pay roll of the Mill Company, February 15,
1938, and 2 foremen of the Lumber Company, Hadley and Bergman,
are supervisory employees. However, they disagree as to the status
of seven employees of the Mill Company. Local 26 wants such em-
ployees excluded from the unit on the ground that they are super-
visory employees; Local 2618 claims that they are not supervisory
'The 12 foremen are : Louis Rossi, Harry Beven, Herbert Johnson, Fred Miller, Al
Mulver, Einar Fagerland , W. H. Davies, Warren Carithers , Kenneth Wines, Cecil Geystel,
Henry Geystel , Del Marcoe.
758 NATIONAL LABOR RELATIONS BOARD
employees and are properly included within the unit. The record
shows that four of these seven men, namely Wm. Hollinger, Louis
Dudley, Seivert Kvalheim, and Albert Kitt are bosses on the drier.
Each works on one of the four shifts. It is their duty to see that the
right temperature is used for the different thickness of veneer, that
break-downs are repaired , that there are the proper number of men
on the crew , and that they are properly instructed concerning the
handling of the material . It appears from the record that of the
remaining three employees , two, namely E. M. Steiger and Harry
Clarstrom , supervise the crews which repair the sanding machines,
and one, namely B. Williamson , is a foreman in the shipping depart-
ment. The record discloses that, although these seven employees have
no power to hire and discharge , they are in a position to recommend
dismissals . They do not rotate shifts , as do their coworkers. Their
wages are somewhat higher than that of other members of their
crews. They attend production meetings attended by other foremen.
We find that all seven employees are properly classed as supervisory
employees and should be excluded from the unit as such.
The parties also disagree as to the status of Ted Rouse, kiln fore-
man in the planer mill . Local 26 claims that he is engaged largely in
manual labor; Local 2618 and Local 2519 claim that he is a super-
visory employee . It appears from the record that he is in charge
of piling and loading the lumber into the kiln. The manager of the
Lumber Company testified that he was regarded by the company
as a keyman and that he had the power to discharge employees work-
ing under him. We shall exclude Ted Rouse from the unit as a super-
visory employee.
We find that the production and maintenance employees of the
Mill Company and of the Lumber Company , excluding supervisory
employees, clerical employees , and watchmen , constitute a unit appro-
priate for the purposes of collective bargaining and that said unit
will insure to employees of the companies the full benefit of their
right to self-organization and collective bargaining and otherwise
effectuate the policies of the Act.
VI. THE DETERMINATION OF REPRESENTATIVES
The Mill Company submitted in evidence the pay roll for February
17, 1938, containing the names of approximately 327 employees within
the appropriate unit. At the second hearing a representative of the
Lumber Company stated that the Lumber Company employed ap-
proximately 30 employees.
Local 26 submitted in evidence 257 application cards signed by em-
ployees within the appropriate unit, a list of 216 names of members
whom it alleged to be members in good standing at the time of the
DECISIONS AND ORDERS 759
hearing, and a petition signed by approximately 40 employees desig-
nating Local 26 as their collective bargaining agent.
Local 2618 submitted in evidence 228 application cards signed by
employees of the Mill Company, a list of members compiled from its
records containing 165 names, and a petition signed by approximately
206 employees of the Mill Company designating Local 2618 as their
bargaining agent.
Local 2519 stated that it had five members among the Lumber
Company employees.
Upon examination of the various documents introduced in evi-
dence by the unions, we find many duplications in their respective
claims. We find that the question which has arisen concerning the
representation of employees can best be resolved by means of an
election by secret ballot. It was stated at the hearing that the Mill
Company and the Lumber Company have the same pay-roll period.
Eligibility to vote will be determined on the basis of the pay rolls of
the Mill Company and of the Lumber Company, respectively, for the
pay-roll period ending February 17, 1938.
On 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 Elliott Bay Mill Company and of Elliott
Bay Lumber Company, Seattle, Washington, within the meaning of
Section 9 (c) and Section 2 (6) and (7) of the National Labor
Relations Act.
2. The production and maintenance employees of the Mill Com-
pany and of the Lumber Company, excluding clerical and supervisory
employees and watchmen, constitute a unit appropriate for the pur-
poses of collective bargaining within the meaning of Section 9 (b) of
the National Labor Relations Act.
DIRECTION OF ELECTION
By virtue of, and pursuant, to the powers vested in the National
Labor Relations Board by Section 9 (c) of the National Labor Rela-
tions Act, 49 Stat. 449, 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 the purposes of collective bargaining
with Elliott Bay Mill Company and Elliott Bay Lumber Company,
Seattle, Washington, an election by secret ballot shall be conducted
760 NATIONAL LABOR RELATIONS BOARD
within twenty (20) days from the date of this Direction, under the
direction and supervision of the Regional Director of the Nineteenth
Region, acting in this matter as agent for the National Labor Rela-
tions Board and subject to Article III, Section 9, of said Rules and
Regulations, among the production and maintenance employees em-
ployed by the Elliott Bay Mill Company and by the Elliott Bay Lum-
ber Company at their mills in Seattle, Washington, as of the pay-
roll date of February 15, 1938, excluding clerical and supervisory
employees and watchmen, and excluding also those employees who
have since quit or been discharged for cause, to determine whether
they desire to be represented by Plywood and Veneer Workers Local
26, affiliated with the Committee for Industrial Organization or by
Plywood and Veneer Workers, Local 2618, and United Brotherhood
of Carpenters and Joiners, Local 2519, affiliated with the American
Federation of Labor, for the purposes of collective bargaining, or by
neither.