Faribault Woolen Mill Co.

National Labor Relations Board - Board Decisions

May 23, 1940

23 N.L.R.B. 1111 (N.L.R.B. 1940)

In the Matter of FARIBAULT WOOLEN MILL COMPANY and TEXTILE
WORKERS UNION of AMI.RICA, AFFILIATE OF CONGRESS OF INDUSTRIAL
ORGANIZATIONS and THE TEXTILE WORKERS ASSOCIATION OF FARI-
BAULT, PARTY TO THE WRITTEN AGREEMENT 1
Case No. C-1569.-Decided May 23, 1940
Woolen Blanket Manufacturing Industry-Settlement : stipulation providing
for compliance with the Act-Order: entered on stipulation
Mr. Lee Loevinger and Mr. Henry W. Lehmann,, for the Board.
Mr. Thomas H. Quinn, of Faribault, Minn., for the respondent.
Mr. Sander Genis, of Minneapolis, Minn., for the T. W. U. A.
Mr. Charles N. Sayles, of Faribault, Minn., for the Independent.
Mr. Edwin L. Swope, of counsel to the Board.
DECISION
AND
ORDER
STATEMENT OF THE CASE
Upon charges and amended charges duly filed by Textile Workers
Union of America ,2 herein called the T. W. U. A., the National
Labor Relations Board, herein called the Board, by the Regional
Director for the Eighteenth Region ( Minneapolis , Minnesota ), issued
its complaint dated March 25, 1940 , against Faribault Woolen Mill
Company, Faribault , Minnesota , herein called the respondent , alleg-
ing that the respondent had engaged in and was engaging in unfair
labor practices affecting commerce within the meaning of Section 8
(1) and ( 2) and Section 2 (6) and ( 7) of the National Labor Rela-
tions Act , 49 Stat. 449, herein called the Act. Copies of the com-
plaint and notices of hearing thereon were duly served upon the
respondent ; upon the T . W. U. A.; and upon The Textile Workers
Association of Faribault also known as Faribo Textile Workers
Organization, as Faribault Textile Workers Organization, and as
The Club, herein called the Independent, a labor organization alleged
to have been dominated by the respondent ; and upon Faribo Inde-
The title of this case was amended at the hearing to read as set forth above.
s The Textile Workers Union of America is also known as the Textile Workers Organ-
izing Committee.
23 N L R B, No. 113
1111
1112 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
pendent Textile Organization, herein called the Organization, another
labor organization alleged to have been dominated by the respondent.
Concerning the unfair labor practices the complaint alleged, in
substance, (1) that the respondent dominated and interfered with
the formation and administration of the Independent, its alterations,
modifications, and successors, gave it financial and other support, and
entered into a written agreement with it for the purpose of furthering
and maintaining the respondent's domination and control of it and
also for the purpose of encouraging the respondent's employees to
join it and to refrain from joining or retaining membership in the
T. W. U. A.; and (2) that by these and other acts the respondent in-
terfered with, restrained, and coerced its employees in the exercise of
the rights guaranteed in Section 7 of the Act. On March 30, 1940,
the respondent filed an answer to the complaint. On April 3, 1940,
the Organization filed with the Regional Director a motion to inter-
vene, which was granted by the Regional Director on April 8, 1940.
On April 15, 1940, the Organization filed an answer to the complaint.
On April 18, 1940, the Regional Director issued and served upon the
parties a notice of a change in the place of the hearing.
Pursuant to notice, a hearing was held on April 25 and 26, 1940, in
Faribault, Minnesota, before Henry W. Schmidt, the Trial Examiner
duly designated by the Board. The Board, the respondent, the
T. W. U. A., and the Organization were represented by counsel and
participated in the hearing.
On April 26, 1940, during the course of the hearing, the respond-
ent, the T. W. U. A., the Organization, and counsel for the Board
entered into a stipulation in settlement of the case. The stipulation
provided as follows :
STIPULATION FOR BOARD ORDER AND CONSENT
DECREE
It is hereby stipulated and agreed by and between the Fari-
bault Woolen Mill Company, respondent herein, by its attorney,
Thos. H. Quinn; the Textile Workers Union of America, also
known as the Textile Workers Organizing Committee, affiliated
with the C . I. 0., by its representative Sander Genis; the Faribo
Independent Textile Workers Organization , by its attorney Chas.
N. Sayles; and Henry W. Lehmann and Lee Loevinger , attorneys
for the National Labor Relations Board, as follows , to-wit:-
1. Charges were filed by the Textile Workers Organizing Com-
mittee, affiliated with the C. I. O. on October 12th , 1939; amended
charges were filed by the said Textile Workers Organizing Com-
mittee , affiliated with the C. I. O. on October 21st , 1939 and sec-
ond amended charges were filed by the said Textile Workers
FARIBAULT WOOLEN MILL COMPANY 11-13
Organizing Committee, affiliated with the C. I. O. on March 21st,
1940, with the Eighteenth Regional Office of the National Labor
Relations Board alleging that the Faribault Woolen Mill Com-
pany, hereinafter called the Respondent, had violated Section 8,
Sub-Section (1) and (2) of the National Labor Relations Act.
Thereafter, on March 25th, 1940, the National Labor Relations
Board, through Robert J. Wiener, Regional Director for the
Eighteenth Region of the National Labor Relations Board, duly
issued its complaint and notice of hearing alleging that respond-
ent had engaged in and was engaging in unfair labor practices
affecting commerce within the meaning of Section 8 (1) and (2)
and Section 2 (6) and (7) of the National Labor Relations Act
(49 Stat. 449). The complaint and notice of hearing, together
with copies of the second amended charge and the National La-
bor Relations Board Rules and Regulations-Series 2, as
amended, were duly served upon all of the parties hereto. On
March 30th, 1940 respondent filed its answer to the complaint
herein. On April 3rd, 1940 a motion for permission to inter-
vene was filed by the Faribo Independent Textile Workers Or-
ganization, hereinafter called the intervenor. On April 8th,
1940 an order was issued by said Regional Director permitting
intervention by the said intervenor. On April 15th, 1940 said
intervenor filed an answer herein. The hearing in the aforesaid
proceeding was scheduled to begin on April 25th, 1940 in Fari-
bault, Minnesota. The hearing did convene before Henry W.
Schmidt the trial examiner designated by the National Labor
Relations Board to hear, the evidence in said case and the Re-
spondent, the Intervenor and the National Labor Relations
Board appeared by their respective attorneys.
2. The charges, complaint and other pleadings referred to
in paragraph 1. above, together with the transcript made at
the aforesaid hearing and the exhibits introduced at the afore-
said hearing, together with this stipulation and the exhibits
attached hereto shall constitute the entire record in this pro-
ceeding. This stipulation shall be entered in the record herein
and made a part of the record hereof by filing a copy with the
Chief Trial Examiner of the National Labor Relations Board
at Washington, D. C.
3. The stipulation attached hereto and made a part hereof,
marked Exhibit A, is agreed to by all of the parties hereto and
shall be considered a part of this stipulation as fully as though
and with the same force and effect as though set out in full
herein.
4. All of the parties hereto expressly waive the right to a
further hearing in this matter and expressly waive the making
11"14 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
of Findings of Fact and Conclusions of Law by the National
Labor Relations Board, and expressly agree and consent that
the National Labor Relations Board, may enter an order provid-
ing as follows :
I. The respondent shall not and will desist from :
(a) Interfering with, restraining and coercing employees in
the exercise of their rights of self-organization, to form; join or
assist labor organizations, bargain collectively through repre-
sentatives of their own choosing and to engage in concerted
activities, for the purposes of collective bargaining or other
mutual aid and protection, as guaranteed by Section 7 of the
National Labor Relations Act;
(b) Dominating or interfering with the administration of
The Textile Workers Association of Faribault, also known as
Faribo Textile Workers Organization, the Old Local Union, and
The Club, or with the formation or administration of any other
labor organization of its employees, and from contributing finan-
cial or other support to the aforesaid organization or any other
labor organization of its employees;
(c) Recognizing The Textile Workers Association of Fari-
bault (also known as Faribo Textile Workers Organization, the
Old Local Union, and The Club), or the Faribo Independent
Textile Workers Organization, as the representative of any of its
employees for the purpose of dealing with the respondent relative
to any grievances, labor disputes, wages, rates of pay, hours of
employment, or conditions of work, or giving effect to any agree-
ment with said Textile Workers Association of Faribault.
(d) Recognizing or entering into an agreement with any labor
organization purporting to represent its employees for the pur-
pose of collective bargaining with respect to rates of pay, wuges,
hours of employment or other terms and conditions of employ-
ment until such organization has been designated as the repre-
sentative of such employees within a unit appropriate for the
purpose of collective bargaining, within the meaning of the Na-
tional Labor Relations Act;
II. The respondent will take the following affirmative action
to effectuate the policies and purposes of the National Labor Re-
lations Act :
(a) Instruct all respondent's officials and agents, including
superintendents, foremen and other supervisory employees, that
they shall not in any manner interfere with, restrain or coerce
respondent's employees in the exercise of their rights of self-
organization, to bargain collectively through representatives of
their own choosing, or to engage in concerted activity for the
FARIBAULT WOOLEN MILL COMPANY 1115
purpose of collective bargaining or other mutual aid and pro-
tection;
(b) Post and keep posted for a period of at least 60 days from
the date of the issuance of the Order herein in several conspicu-
ous places throughout its plant at Faribanlt, Minnesota, copies
of the notice to employees attached hereto and made a part
hereof and marked Exhibit B;
(c) Notify the Regional Director for the Eighteenth Region in
writing within ten days of the date of the issuance of the Order
herein what steps respondent has taken to comply herewith.
5. The parties hereto agree and consent to the entry by the
Eighth Circuit Court of Appeals of an enforcement order em-
bodying the terms of the Board Order agreed to above, and all
parties hereby waive further notice of the application for and
the entry of such Court Order, provided that a certified copy of
said Order shall be served upon the respondent immediately
following its issuance.
6. It is the understanding of the parties hereto that The Tex-
tile Workers Association of Faribault has heretofore been dis-
solved and disestablished, and consequently, no provision is made
herein for the disestablishment of said organization.
7. The hearing of this proceeding, herein above referred to,
has been recessed pending the negotiation of this stipulation.
Upon the signing of this stipulation by the parties hereto the
hearing, which has been recessed, shall be adjourned. All of the
parties hereto agree that the said hearing may be reconvened
upon three (3) days notice to the parties hereto.
8. This stipulation and all agreements made herein are subject
to the approval of the National Labor Relations Board, and
should the Board fail to approve this stipulation within twenty-
one (21) days from the date of signing hereof, this stipulation
shall be null and void and of no effect and the proceeding in this
matter shall be in the same status as though no stipualtion had
been entered into, with the exception that the hearing in this
proceeding may be held, as provided in paragraph 7 above.
9. This stipulation constitutes the entire agreement between
the parties hereto, and no verbal agreement of any kind has
been made which varies, alters, detracts from or adds to this
stipulation.
EXHIBIT A
STIPULATION
It is hereby stipulated by and between the National Labor
Relations Board and Faribault Woolen Mill Company, both
1116 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
being parties to the present proceeding , that the following, facts
may be received in the record herein with the same force and
effect as though established by competent testimony and docu-
mentary evidence , but without prejudice to the right of any
of the parties to the present proceeding to offer other and further
evidence relating to the matters contained herein.
Faribault Woolen Mill Company, hereinafter referred to as
the Company , is, and has been at all times since December 23,
1905, a Minnesota corporation , having its office and place of
business located at Faribault , Minnesota . On July 18, 1936, the
original corporate charter of the Company was renewed and
made perpetual . At the date of the hearing in this proceeding,
the officers of the Company are as follows : President , Frank H.
Klemer; Vice President , Walter F. Klemer; Secretary , Robert
E. Johnson ; and Treasurer , E. A. Johnson . Robert W. Klemer
is a director of the Company . The Company is principally en-
gaged in the manufacture and sale of woolen blankets. The
Company has no subsidiaries , affiliates, or parent corporations.
Approximately 100 production employees are employed at the
Company's plant in Faribault , Minnesota.
In the course and conduct of its business , the Company pur-
chases raw wool, chemicals , bindings , fuel and other supplies.
During the calendar year 1939, the Company purchased approxi-
mately 500 ,000 lbs. of wool at a cost of over $200,000 ; bindings
for $28,707 . 59; chemicals for $25,757 .11; fuel for $9,248.02; and
other supplies for $5526.04 . The dollar value of the wool and
other materials purchased by the Company during the calendar
year 1939 which came to the Faribault plant of the Company
and originated within the State of Minnesota is as follows :
Wool, over $100 ,000; bindings , none; chemicals , none; fuel, none;
and supplies $552.60. The dollar value of the wool and other
raw materials purchased by the Company during the calendar
year, 1939 which came to the Faribault plant of the Company
from points of origin outside of Minnesota is as follows : Wool,
over $110,000 ; bindings , $28,707.59; chemicals , $25,757.11; fuel
$9,248.02; and other supplies , approximately $4,973.44. The wool
and other materials purchased by the Company are transported
to the Company 's plant at Faribault , Minnesota by auto truck
and railroad . Nearly all wool purchased by the Company orig-
inating outside of Minnesota is transported to the Company's
Faribault plant by railroad . A large part of the wool purchased
by the Company originating within the State of Minnesota is
transported to the Company's plant at Faribault , Minnesota,
by truck.
FARIBAULT WOOLEN MILL COMPANY 1117
The product manufactured by the Company consists exclu-
sively of woolen blankets. During the calendar year 1939, the
Company sold 400,000 lbs. of blankets, and the gross value of
such sales amounted to over $500,000. The aforesaid blankets
were sold to approximately 1,500 customers situated throughout
the'United States. The total value of such blankets sold by the
Company during the calendar year 1939 within the State of Min-
nesota amounted to approximately $90,000. and the total value
of such blankets sold by the Company during such calendar year
to purchasers situated outside of the State of Minnesota
amounted to over $400,000.
The Company employs salesmen to sell its blankets, whom it
pays on a commission basis. These salesmen travel throughout
the United States in the course of their employment.
EXHIBIT B
Notice to Employees:
The Faribault Woolen Mill Company hereby notifies its em-
ployees that this Company, its officers, agents and supervisors,
will not interfere with, restrain, or coerce the employees in the
exercise of their rights to self-organization, to form, join, or
assist labor organizations, to bargain collectively through repre-
sentatives of their own choosing and to engage in concerted activi-
ties for the purpose of collective bargaining or other mutual aid
and protection, as guaranteed in Section 7 of the National Labor
Relations Act.
The Company and its officers, agents and supervisors will not
dominate or interfere with the formation or administration of
any labor organization or give any support to any labor organi-
zation.
"The Textile Workers Association of Faribault" (also known
as the "Faribo Textile Workers Organization", "Old Local Un-
ion" and "The Club") has been dissolved and disestablished.
The Company no longer recognizes it and will not recognize it in
the future. The Company will not recognize the Faribo Inde-
pendent Textile Workers Organization.
The Company will not recognize or make an agreement with
any labor organization as the representative of its employees for
the purposes of collective bargaining with respect to rates of pay,
wages, hours of employment and other terms or conditions of
employment, until such labor organization has been designated
as the representative of such employees within an appropriate
unit for collective bargaining, within the meaning of the Na-
tional Labor Relations Act.
1118 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
This Company has instructed all of its officers, agents and su-
pervisors that they must respect the rights of the employees
which are set forth in Section 7 of the National Labor Relations
Act, which reads as follows:-
"Employees shall have the 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 bargaining, or other
mutual aid or protection."
FARIBAULT WOOLEN MILL COMPANY.
On May 8, 1940, the Board issued an order approving the above
stipulation, making it a part of the record, and pursuant to Article
II, Section 36, of National Labor Relations Board Rules and Regula-
tions-Series 2, as amended, transferring the proceeding to the Board
for the purpose of entry of a decision and order pursuant to the pro-
visions of the stipulation.
Upon the basis of the above stipulation and the entire record in
the case, the Board makes the following :
FINDINGS OF FACT
1. THE BUSINESS OF THE RESPONDENT
Faribault Woolen Mill Company, a Minnesota corporation, operates
a plant at Faribault, Minnesota, where it is engaged in the manufac-
ture of woolen blankets, and employs about 100 production employ-
ees. In the course and conduct of its business, the respondent
purchases raw wool, chemicals, bindings, fuel and other supplies.
During the calendar year 1939, it purchased approximately 500,000
pounds of raw wool at a cost of over $200,000; bindings for $28,707.59;
chemicals for $25,757.11; fuel for $9,248.02; and other supplies for
$5,526.04. The value of the wool and other raw materials purchased
by the respondent and originated from within the State of Minnesota
during this period was ' as follows : Wool over $100,000; bindings,
none; chemicals, none; fuel, none; and other supplies, $552.60. The
value of the raw materials which came to the respondent from points
of origin outside the State of Minnesota during the same period was
as follows: Wool,' over $110,000; bindings, $28,707.59; chemicals,
$25,757.11; fuel, $9,248.02; and other supplies, approximately $4,-
973.44. During the calendar year 1939, the respondent produced
400,000 pounds of woolen blankets, its only product, valued at over
$500,000, which were sold to approximately 1,500 customers situated
throughout the United States. The value of the blankets sold within
the .State of Minnesota , during this period amounted to about $90,000,
J
FARIBAULT WOOLEN MILL COMPANY 1119
while the value of those sold outside the State of Minnesota amounted
to over $400,000.
We find that the above-described operations constitute a continu-
ous flow of trade, traffic, and commerce among the several States.
ORDER
Upon the basis of the above findings of fact and stipulation and
the entire record in the case, and pursuant to Section 10 (c) of the
National Labor Relations Act, the National Labor Relations Board
hereby orders that Faribault Woolen Mill Company, Faribault,
Minnesota,
(1) Shall not and will desist from :
(a) Interfering with, restraining and coercing employees in the
exercise of their rights of self-organization, to form, join or assist
labor organizations, bargain collectively through representatives of
their own choosing and to engage in concerted activities, for the pur-
poses of collective bargaining or other mutual aid and protection, as
guaranteed by Section 7 of the National Labor Relations Act;
(b) Dominating or interfering with the administration of The
Textile Workers Association of Faribault, also known as Faribo Tex-
tile Workers Organization, the Old Local Union, and The Club, or
with the formation or administration of any other labor organization
of its employees, and from contributing financial or other support to
the aforesaid organization or any other labor organization of its
employees ;
(c) Recognizing The Textile Workers Association of Faribault,
also known as Faribo Textile Workers Organization, the Old' Local
Union, and The Club, or the Faribo Independent Textile Workers
Organization, as the representative of any of its employees for the
purpose of dealing with the respondent relative to any grievances,
labor disputes, wages, rates of pay, hours of employment, or condi-
tions of work, or giving effect to any agreement with said Textile
Workers Association of Faribault;
(d) Recognizing or entering into an agreement with any labor
organization purporting to represent its employees for the purpose
of collective bargaining with respect to rates of pay, wages, hours
of employment or other terms and conditions of employment until
such organization has been designated as the representative of such
employees within a unit appropriate for the purpose of collective
bargaining, within the meaning of the National Labor Relations Act.
(2) Take the following affirmative action which the Board finds
will effectuate the policies of the Act :
(a) Instruct all respondent's officials and agents, including super-
intendents, foremen and other supervisory employees, that they shall
1120 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
not in any manner interfere with, restrain or coerce respondent's
employees in the exercise of their rights of self-organization, to bar-
gain collectively through representatives of their own choosing, or
to engage in concerted activity for the purpose of collective bargain-
ing or other mutual aid and protection;
(b) Post and keep posted for a period of at least sixty (60) days
from the date of the issuance of the Order herein in several con-
spicuous places throughout its plant at Faribault, Minnesota, copies
of the notice to employees set forth above and marked Exhibit B;
(c) Notify the Regional Director for the Eighteenth Region in
writing within ten (10) days of the date of the issuance of the
Order herein what steps respondent has taken to comply herewith.