Inland Steel Co.

National Labor Relations Board - Board Decisions

Apr 30, 1946

67 N.L.R.B. 1053 (N.L.R.B. 1946)

In the Matter Of INLAND STEEL COMPANY and UNITED CONSTRUCTION
WORKERS, AFFILIATED WITH UMW OF A
Case No. 9-R-1824.Decided April 30,1946
Messrs. Caldwell and Gray, by Robert T. Caldwell, of Ashland, Ky.,
Messrs. Pope and Ballard, by William F. Price, of Chicago, Ill., and
Messrs. Howard and Mayo, by J. W. Howard, of Prestonsburg, Ky.,
for the Company.
Mr. J. B. Boggs, of Jenkins, Ky., for the UCW.
Mr. Sidney Grossman, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
Upon a petition duly filed by United Construction Workers, affili-
ated with UMW of A, herein called the UCW, alleging that a question
affecting commerce had arisen concerning the representation of em-
ployees of Inland Steel Company, Wheelwright, Kentucky, herein
called the Company, the National Labor Relations Board provided for
an appropriate hearing upon due notice before Allen Sinsheimer, Jr.,
Trial Examiner. The hearing was held at Prestonsburg, Kentucky, on
September 13, 1945. The Company and the UCW appeared and
participated. All parties were afforded full opportunity to be heard,
to examine and cross-examine witnesses, and to introduce evidence
bearing on the issues. The Trial Examiner's rulings made at the
hearing are free from prejudicial error and are hereby affirmed. All
parties were afforded opportunity to file briefs with the Board.
Upon the entire record in the case, the Board makes the following:
FINDINGS OF FACT
1. THE BUSINESS OF THE COMPANY
Inland Steel Company, a Delaware corporation, has its principal
offices in the Chicago, Illinois, area. The Company operates coal
mines in the State of Kentucky, and also is engaged in the manufac-
ture of steel in Indiana, and has inoperative coal properties in Illi-
67 N. L R. B., No. 132.
1053
1054 DECISIONS NATIONAL LABOR RELATIONS BOARD
nois. Together with its mining operations in Kentucky, and gen-
erally for the convenience of its mining epmloyees, the Company
operates mercantile establishments and other facilities' in the town
of Wheelwright, Kentucky,2 the employees of which are solely con-
cerned in this proceeding. The Company employs approximately
1,250 employees in the operation of its mines and about 52 employees
in the ancillary operations here involved .3
The Company's annual sale of steel products to customers through-
out the United States and outside the United States exceeds $75,000,-
000 in value. Its annual purchases of iron, coal, manganese, lime-
stone, and other raw materials for use in the manufacture of steel
are approximately $20,000,000 in value, almost all of which are secured
from sources outside the State of Indiana. Its operative coal prop-
erties are located in Floyd, Knott, and Pike Counties, Kentucky,4
where it annually produces 1,500,000 tons of coal, aggregating approx-
imately $5,000,000 in value, of which over 90 percent is shipped to
points outside the State of Kentucky. Of the coal mined, about 85
percent is used in the Company's steel operations. During the year
1944, the total volume of business of the Company's mercantile estab-
lishments and other facilities amounted to approximately $600,000
in value, all of which represented intrastate transactions. During the
same period, the Company's purchases for its mercantile establish-
ments and other facilities were in excess of $400,000 in value, of
which a substantial portion 5 was secured from sources outside the
State of Kentucky.
The Company concedes that it is engaged in commerce within the
meaning of the Act insofar as it is engaged in the production and sale
of steel and coal. It contends, however, that it is not engaged in
commerce within the meaning of the Act with respect to the opera-
tions of its mercantile activities and other facilities, urging that such
activities are separate and distinct from the mining operations, and
confined to intrastate business. The record discloses that originally
the mining employees were wholly dependent on the Company's stores
because of the undeveloped character of the area in which its mines
were situated, but as a result of the natural growth of the area com-
petitive enterprises have arisen within Wheelwright and its environs.e
'General merchandise stores, soda fountain , gas service station , clubhouse and the
drygoods store therein.
2 The Company owns most of the land and buildings in Wheelwright
8 According to the Company 's brief, there are about 1500 residents in Wheelwright.
About one -third are company employees . The major portion of the remainder of the
Company's employees reside within a 5-mile radius
The mine opening is located in the center of Wheelwright.
I General merchandise stores, including the drygoods store, 52 percent ; clubhouse, 35
percent ; gas service station , 1 6 percent, and soda fountain , 50 percent.
9 The general merchandise stores were established in 1916 when mining operations were
started , the soda fountain in 1930 , the gas service station since 1930 , and the clubhouse
was erected in 1941.
- INLAND STEEL COMPANY 1055
The Company maintains that its employees live and trade at consid-
erable distances from the mines, and that as a result, a large part of
its mining employees are not now dependent upon its mercantile estab-
lishments and other facilities, which also serve the general public,
but do a considerable portion of their trading with its competitors.
Although it appears that, as a result of the natural growth of the
community herein concerned, stores and other facilities similar to
those maintained by the Company have arisen to offer their services
in competition with those furnished by the Company, a large percent-
age of the inhabitants of Wheelwright are employees of the Com-
pany who depend to a substantial degree on the merchandising
operations of the Company for their daily purchases' As an aid to
such purchases by its employees, the Company extends credit to them
in the form of deferred payment accounts for bulk purchases. The
administrative structure of the Company also illustrates a close in-
terrelationship between the Company's ancillary activities and its
mining operations. The managers of its mercantile establishments
and other facilities are directly responsible to the general superintend-
ent of coal properties, and auditing reports relating both to mining
and the ancillary operations are transmitted to him.
In view of the foregoing, we find, contrary to the contention of the
Company, that the Company's mercantile establishments and other
facilities are a part of its integrated business enterprise, and that,
in the operation of such facilities, the Company is engaged in com-
merce within the meaning of the Act."
II. THE ORGANIZATION INVOLVED
United Construction Workers, affiliated with the United Mine
Workers of America, is a labor organization admitting to membership
employees of the Company.
III. THE QUESTION CONCERNING REPRESENTATION
The Company refuses to accord the UCW recognition as the exclu-
sive bargaining representative of the employees the UCW here seeks
to represent.
The Company argues that, under the doctrine enunciated in the
Briggs Indiana case,° the contract existing at the time of the hearing
' The record discloses that the Company 's stores do 40 percent of the total volume of
business engaged in by competitive enterprises within a 2 -mile radius , and 30 percent
within a 5-mile radius. In -iddition to revenue derived from others associated with the
Company, the revenue derived from mining and production employees comprises 11 percent
of the total revenue of the clubhouse
8 See Matter of Elk Horn Coal Corporation , 64 N L it . B 1563 , and cases cited therein.
0 Matter of Briggs Indiana Corporation , 63 N L . R. B. 1270.
1 056 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
to which the United Mine Workers of America (hereinafter called the
UMWA), and the Company are parties, estops the UCW, an affiliate
of the UMWA, from seeking to represent nonproduction employees
of the Company such as are here sought by the UCW. On March 2,
1946, the Board received official notice from the UMWA, in accord-
ance with the War Labor Disputes Act (50 U. S. C. A. 1508), stating
that it had served notice on the Operators' Negotiating Committee
for a negotiating conference to convene oil March 12, 1946. The
UMWA's letter indicated that the contract would be terminated as of
March 31, 1946. It is the Board's information that the agreement
between the UMWA and the Company in fact has been terminated
and that the parties are now in the process of negotiating a new con-
tract. Inasmuch as the contract upon which the Company relies has
expired, we find that such contract does not preclude a present deter-
mination of representatives, and that consequently it is unnecessary
for us to determine the applicability of the principles enunciated in
the Briggs Indiana case.10
A statement of a Board agent, introduced into evidence at the hear-
ing, indicates that the UCW represents a substantial number of em-
ployees in the alleged appropriate unit."
We find that a question affecting commerce has arisen concerning
the representation of employees of the Company, within the meaning
of Section 9 (c) and Section 2 (6) and (7) of the Act.
IV. THE APPROPRIATE UNIT
The UCW seeks a unit consisting of the employees of the Company's
general merchandise stores, soda fountain, gas service station, and
clubhouse, including janitors and truck drivers, but excluding full-
time office employees, managers, and supervisory employees. The
UCW also would include therein the Company's cab drivers who trans-
port employees to and from work as a war emergency measure, and
the street sweepers who act as street cleaners for the town of Wheel-
wright. The Company opposes the appropriateness of the unit for
the reason that it is composed of heterogeneous groups of employees
who do not possess common interests. A dispute also exists as to the
inclusion or exclusion of certain categories hereinafter discussed.
Nonproduction employees, such as those whom the UCW here de-
sires to represent, are engaged in activities ancillary to the Company's
mining operations. Unlike the mining employees who are hourly
paid, they are salaried employees and all are under the general super-
10 Member Houston would find no bar in the contract , assuming it was in force, on the
basis of his dissenting opinion in the Briggs case,
n The Field Examiner reported that the UCw submitted 38 authorization cards which
bore dates between March and July 1945 , In an alleged appropriate unit consisting of 53
employees.
INLAND STEEL COMPANY 1057
vision of the superintendent of coal properties. The street sweepers
are remunerated by the Company and are under the immediate super-
vision of the superintendent of buildings and grounds. Although
they serve the community, they are employees of the Company, and
as such, are entitled to the benefits of the Act. We have frequently
included various groups of nonproduction employees of coal mining
companies in a single unit 12 We therefore find that the nonproduc-
tion employees petitioned for may comprise an appropriate unit for
the purposes of collective bargaining.
Office janitor. The UCW would include the janitor who works
in the Company's office. Although the Company does not specifically
oppose the inclusion of other janitors associated with its ancillary
operations, it would exclude the office janitor as a confidential em-
ployee and because he is on the office pay roll. Although the office
janitor may have access to confidential information in the Company's
offices, it is clear that in the normal course of his duties he does not
have access to confidential matters relating to the Company's labor
relations and that he, therefore, does not fall within our customary
definition of confidential employee.'-' We shall include him in the
unit.
Chief chef. The UCW would include the chief chef in the club-
house for the reason that he performs manual labor. The Company
would exclude him as a supervisory employee. The record discloses
that the chief chef, who works in the clubhouse kitchen, may effectively
recommend the hire and discharge of employees and earns a substan-
tially higher salary than those under his supervision. Inasmuch as
the chief chef possesses supervisory authority consonant with our cus-
tomary definition, we shall exclude him.
We find that all employees of the Company's general merchandise
stores, soda fountain, gas service stations, and clubhouse, including
truck drivers, cab drivers, street sweepers, and janitors," but excluding
full-time office employees, the chief chef, managers, and all or any other
supervisory employees with authority to hire, promote, discharge, dis-
cipline, or otherwise effect changes in the status of employees, or
effectively recommend such action, constitute a unit appropriate for
the purposes of collective bargaining within the meaning of Section
9 (b) of the Act.
V. TIIE DETERMINATION OF REPRESENTATIVES
We shall direct that the question concerning representation which
h. -s arisen be resolved by an election by secret ballot among employees
12 See Matter of Elk Horn Coal Corporation, 64 N. L. R B. 1563, and cases cited therein.
is See Matter of Andrew Jergens Company, 64 N. L. R. B. 989.
'* Including the office janitor.
692148-46-voi. 67-68
1058 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
in the appropriate unit who were employed during the pay-roll period
immediately preceding the date of the Direction of Election herein,
subject to the limitations and additions set forth in the Direction.15
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,
and pursuant to Article III, Section 9, of National Labor Relations
Board Rules and Regulations-Series 3, as amended, it is hereby
DIRECTED that, as part of the investigation to ascertain representa-
tives for the purposes of collective bargaining with Inland Steel Com-
pany, Wheelwright, Kentucky, an election by secret ballot shall be
conducted as early as possible, but not later than thirty (30) days
from the date of this Direction, under the direction and supervision
of the Regional Director for the Ninth Region, acting in this matter
as agent for the National Labor Relations Board, and subject to
Article III, Sections 10 and 11, of said Rules and Regulations, among
employees in the unit found appropriate in Section IV, above, who
were employed during the pay-roll period immediately preceding the
date of this Direction, including employees who did not work during
said pay-roll period because they were ill or on vacation or temporarily
laid off, and including employees in the armed forces of the United
States who present themselves in person at the polls, but excluding
those employees who have since quit or been discharged for cause and
have not been rehired or reinstated prior to the date of the election,
to determine whether or not they desire to be represented by United
Construction Workers, affiliated with UMW of A, for the purposes
of collective bargaining.
is The parties agree, and we find, that the part-time employee, who works 18 to 20 hours
per week in the clubhouse , shall be eligible to vote