Fullerton Oil Co.

National Labor Relations Board - Board Decisions

Apr 14, 1942

40 N.L.R.B. 504 (N.L.R.B. 1942)

In the Matter of FULLERTON OIL COMPANY and OIL WORKERS
INTERNATIONAL UNION, LOCAL 128, C. I. O.
Case No. R-3652.-Decided April 14, 1942
Jurisdiction : oil-producing industry.
Investigation and Certification of Representatives : existence of question: re-
fusal of Company to accord petitioner recognition ; election necessary.
Unit Appropriate for Collective Bargaining : production and maintenance em-
ployees of the Company in the State of California , including working foremen,
but excluding all other supervisory employees , and clerical and sales employees ;
agreement as to.
O'Melveny cfi Myers, by Mr. Homer I. Mitchell, of Los Angeles,
Calif., for the Company.-
Mr. Otto E. Forrester and Mr. George T. Shuster, of Long Beach,
Calif., for the Union.
Mr. George H. Gentithes, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On November 25, 1941, Oil Workers International Union, Local 128,
affiliated with the Congress of Industrial Organizations, hereinafter
called the Union, filed with the Regional Director for the Twenty-first
Region (Los Angeles, California) a petition alleging that a question
affecting commerce had arisen concerning the representation of em-
ployees of Fullerton Oil Company, Los Angeles, California, herein
called the 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 25,
1942, 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 2,
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 28, 1942, the Regional Director issued a
notice of hearing, copies of which were duly served upon the Company
and the Union. Pursuant to notice, a hearing was held on March 16,
40 N. L. R. B., No. 90.
504
FULLERTON OIL COMPANY 505
1942, at Los Angeles, California, before Stanley D. Metzger,'the Trial
Examiner duly designated by the Chief Trial Examiner. The Com-
pany and the Union appeared by representatives and 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. During the course of the hearing, the Trial
Examiner made several rulings on motions and on objections to the
admission of evidence. The Board has reviewed the rulings of the
Trial Examiner and finds that no prejudicial errors were-committed.
The rulings are hereby affirmed. Upon the entire record in the case,
the Board makes the following :
FINDINGS OF FACT
1. THE BUSINESS OF THE COMPANY
Fullerton Oil Company is an Arizona corporation with its principal
office at Los Angeles, California. It is engaged in the development
and exploration of oil- and gas-producing properties in the States of
California, New Mexico, and Texas.
From October 1, 1940, to September 30, 1941, the Company pur-
chased $278,881.65 worth of materials and equipment. Materials
purchased in California for use in California were valued at $204,-
049.61; materials purchased in New Mexico for use in New Mexico, at
$47,400.86; and materials purchased in Texas for use in Texas, at $7,-
433.43. No part of these materials was transferred from one State to
another.
Products originating outside California, but purchased in Cali-
fornia for use in that State were valued at $33,790.69; products
originating outside New Mexico, but purchased in New Mexico for
use in that State, at $19,997.75; and products originating outside
Texas, but purchased in Texas for use in that State, at $7,433.43.
During the same period, the Company sold to purchasers in
California $541,618.19 worth of oil and gasoline. Similar sales of
oil and gasoline made by the Company in New Mexico to purchasers
in New Mexico amounted to $15,498.96. Within this same period,
the Company sold to Standard Oil Company of California, herein
called Standard, 555,067 barrels of crude oil valued at $470,287.92,
subject to pro rata and maximum limitation agreements. This crude
oil is commingled by Standard in the field with crude oil' purchased-
,by Standard from its own producers and is transported by pipe line
to Standard's refineries at El Segundo, California. Upon arrival at
the refineries, this commingled oil is stored with other oil where it
may remain for a considerable period of time or be immediately run
through the refineries. Standard cannot trace particular oil which
01
506 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
it has purchased from particular producers to its interstate commerce
shipments of oil. However, there is no segregation and Standard
does ship in interstate commerce approximately 49.6 percent of its
finished oil products valued at $95,981,400.00 in 1941.
During the same period the Company produced 152,238 M. C. F.
of wet gas in its California field which it delivered to Standard for
processing. In return for this wet gas the Company received 660,366
gallons of casing head gasoline which it later resold to Standard.
Standard in turn sold this to General Petroleum Company, herein
called General, in return for natural gasoline delivered to Standard
by General at other points in California. General commingles the
casing head gasoline which it receives from Standard with its own
California casing head gasoline. It ships it to its own plant in
California where it is commingled with natural gasoline received
from other sources. This casing head and natural gasoline is then
blended by General with other gasoline in the ratio of 15 percent
casing head natural and 85 percent other gasoline to make motor
vehicle fuel. Approximately 40 percent of the vehicle fuel so pro-
duced is shipped by General to points outside the State of California.
II. THE ORGANIZATION INVOLVED
Oil Workers International Union, Local 128, is a labor organization
affiliated with the Congress of Industrial Organizations, admitting
to membership employees of the Company.
III. THE QUESTION CONCERNING REPRESENTATION
The Company has refused to give recognition to the Union as ex-
clusive bargaining agency on the ground that it did not believe that
the Union represented a majority of the Company's employees in an
appropriate unit. A statement of a Field Examiner, introduced in evi-
dence, shows that the Union represented a substantial number of em-
ployees in the unit hereinafter found appropriate., We find that a
question has arisen concerning the representation of employees of the
Company.
i The Company employs approximately 60 employees, about 35 of whom fall within the
unit hereinafter found appropriate . The Field Examiner 's statement shows that the Union
submitted 24 membership cards . Twenty-one of these cards issued in 1938 show dues
payments to 1941 through the following months : 14 through November ; 5 through October ;
1 through September ; 1 through August. The 3 remaining cards were issued in January
1941 and show payments through November 1941. All 24 signatures appear to be genuine
original signatures, and are names of persons appearing on the Company 's pay roll of
October 17, 1941.
FULLERTON OIL COMPANY
IV. THE EFFECT OF THE QUESTION CONCERNING REPRESENTATION
UPON COMMERCE
507
We find that the question concerning representation which has arisen
occurring-in connection with the operations of the Company 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.
V. THE APPROPRIATE UNIT
The parties agreed and we find that all production and maintenance
employees of the Company in the State of California, including work-
ing foremen, but excluding all other supervisory employees, and cleri-
cal and sales employees, constitute a unit appropriate for the purposes
of collective bargaining. We further find that such unit will insure
to employees of the Company the full benefit of their right to self-
organization and collective bargaining and otherwise will effectuate
the policies of the Act.
VI. THE DETERMINATION OF REPRESENTATIVES
We find that the question concerning representation which has arisen
can best be resolved by means of an election by secret ballot. In
accordance with our usual practice, we shall direct that an election by
secret ballot be held among the employees of the Company in the
appropriate unit who were employed during the pay-roll period imme-
diately preceding the date of this Direction of Election, subject to the
limitations and additions set forth in the Direction.
Upon the basis of the above findings of fact and upon the entire
record in the case, the Board makes the following :
CONCLUSIONS OF LAW
1. A question affecting commerce has arisen concerning the repre-
sentation of employees of Fullerton Oil Company, Los Angeles, Cali-
fornia, within the meaning of Section 9 (c) and Section 2 (6) and (7)
of the National Labor Relations Act.,,
2. All production and maintenance employees of the Company in
the State of California, including working foremen, but excluding all
other supervisory employees, and clerical and sales employees consti-
tute an appropriate unit for the purposes of collective bargaining
within the meaning of Section 9 (b) of the National Labor Relations
Act.
508 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
DIRECTION OF ELECTION
By virtue of and pursuant to the power vested in the National Labor
Relations Board by Section 9 (c) of the National Labor Relations
Act, 49 Stat. 449, and pursuant to Article III, Section 8, of National
Labor Relations Board Rules and Regulations-Series 2, as amended,
it is hereby
DIRECTED that, as past of the investigation authorized by the Board
to ascertain representatives for the purposes of collective bargaining
with Fullerton Oil Company, Los Angeles, California, an election by
secret ballot shall be conducted as early as possible, but not later than
30 days from the date of this Direction, under the direction and super-
vision of the Regional Director for the Twenty-first Region acting in
this matter as agent for the National Labor Relations Board, and
subject to Article III, Section 9, of said Rules and Regulations, among
all production and maintenance employees of the Company in the
State of California, who were employed during the pay-roll period
immediately preceding the date of this Direction, including working
foremen and employees who did not work during such pay-roll period
because they were ill or bn vacation or in the active military service or
training of the United States, or temporarily laid off, but excluding all
other supervisory employees, clerical and office employees, and em-
ployees who have since quit or been discharged for cause, to determine
whether or not they desire to be represented by Oil Workers Inter-
national Union, Local 128, affiliated with the Congress of Industrial
-Organizations, for the purposes of collective bargaining. -