Grace Manufacturing Co.

National Labor Relations Board - Board Decisions

Jan 12, 1953

102 N.L.R.B. 127 (N.L.R.B. 1953)

GRACE MANUFACTURING COMPANY, DANNY-VINE CORPORATION 127
failure to take steps to clarify the actual status of the raise approval
resulted in the election not being conducted in an atmosphere of free
choice by the employees. Whatever the right to rebut election propa-
ganda may be, it does not include the right to create a false impression
that concrete benefits to employees have been secured, when, in fact,
no such assurance can be given before the election takes place.5 Be-
tween this situation and the unilateral announcement of benefits by
an Employer pending representation proceedings, which the Board
consistently recognizes as a ground for setting aside an election, we see
no distinction in effect upon employee free choice.6 We think the
conduct of the Employer and the Intervenor was calculated to and did
affect the results of the election. Accordingly, we adopt the Regional
Director's recommendations and shall set aside the election.? We will
direct a new election at such time as the Regional Director advises the
Board that the circumstances permit a free choice among the employees
herein concerned.
Order
IT IS HEREBY ORDERED that the election held on July 10, 1952, among
the employees of the Employer at Indianapolis, Indiana, be, and it
hereby is, set aside.
6 The very existence of the Wage Stabilization Board regulation concerning nonaction
by it on wage raise petitions pending representation proceedings before this Board also
refutes the assertion that the Petitioner waived its right to object by consenting to the
election with knowledge that a wage raise petition was pending . For discussion concerning
waiver of objections see The Great Atlantic and Pacific Tea Company , 101 NLRB 1118.
6 See Direct Laboratories , Inc., 94 NLRB 380 ; see also F. B. Rogers Salver Company,
94 NLRB 305.
" In view of our decision herein we find it unnecessary at this time to pass upon the
objections relating to the execution of the contract between the Employer and the
Intervenor , which are the subject of a charge and as to which the Regional Director
made no recommendation ; nor do we see the need of a hearing in this matter ; as suggested
by the Employer.
GRACE SCHULTZ D/B/A GRACE MANUFACTURING COMPANY , DANNY-
VINE CORPORATION and Los ANGELES JOINT BOARD, AMALGAMATED
CLOTHING WORKERS OF AMERICA , CIO, PETITIONER. Case No. 21-
RC-$717. January 12, 1953
Supplemental Decision and Order
On October 29, 1952, the Board issued a Decision, Order, and Di-
rection of Election 1 in the above-entitled proceeding, directing that
an election be held among the production and maintenance employees
r Not reported in printed volumes of Board Decisions.
102 NLRB No. 22.
128 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
of the Employer, Grace Schultz, d/b/a Grace Manufacturing Com-
pany, and dismissing the petition as to Danny-Vine Corporation.
Thereafter, on November 12, 1952, the Board was administratively
advised that the Danny-Vine Corporation had assumed ownership
and operation of the Grace Schultz business, but that it was the in-
tention of Danny-Vine Corporation to discontinue the said business
on December 31, 1952. The Board then issued a notice to show cause
why its former decision should not be reconsidered and the petition
dismissed. Thereafter the Board was advised by the Union that
neither it nor the employees in the unit had been informed of the
intention of Danny-Vine Corporation to discontinue the operation
on December 31, 1952, and the Union requested that the Board rein-
state Danny-Vine Corporation as Employer and direct an immediate
election.
Neither Danny-Vine Corporation nor Grace Schultz filed any re-
sponse to the notice to show cause or the Union's answer thereto.
The Board was thereafter administratively advised that Danny-Vine
Corporation acknowledges that it has assumed ownership and opera-
tion of the business. The Board,2 having duly considered the matter,
finds that Danny-Vine is now the Employer of the employees in the
unit found appropriate in the Board's Decision, Order, and Direction
of Election herein. We therefore reinstate the petition as to Danny-
Vine and dismiss it as to Grace Schultz. As the discontinuance of
operations is at present necessarily speculative, we will order that
the Regional Director proceed with the election heretofore directed,
unless before the actual conduct of such election such operations
are in fact discontinued.
Order
IT IS HEREBY ORDERED that the Order dismissing the petition in the
above-entitled matter as to Danny-Vine Corporation be, and it hereby
is, vacated, and that the petition in this matter be, and it hereby is,
dismissed as to Grace Schultz d/b/a Grace Manufacturing Company.
IT IS FURTHER ORDERED that the Regional Director conduct an elec-
tion among the employees in the unit found appropriate in the Board's
Decision in the above-entitled matter within 30 days from the date
of this Supplemental Order, unless the Employer's operations have
previously been discontinued, and in that event that the petition in
this matter be dismissed.
2 Pursuant to the provisions of Section 3 (h) of the Act the Board has delegated its
powers in connection with this case to a three -member panel [ Chairman Herzog and
Members Styles and Peterson].