International Harvester Co.

National Labor Relations Board - Board Decisions

Mar 14, 1944

55 N.L.R.B. 497 (N.L.R.B. 1944)

In the Matter of INTERNATIONAL HARVESTER COMP ANY and SEAFARLRS
INTERNATIONAL UNION OF NORTH AMERICA, A. F. or L., GREAT LAKES
DISTRICT
Case No. 13-R-2117.-Decided March 14, 1944
Messrs. Frank B. Schwarer, Robert Dickman, and G. T. illoredock,
of Chicago, Ill., for the Company.
Daniel D. Carmcll, by Mr. Leo Segall, of Chicago, Ill., and Mr.
Mardy Polaner, of Detroit, Mich., for the S. I. U.
Mr. Edward Hendrickson, of Chicago, Ill., for the N. M. U.
Mr. Seymour J. Spehnan, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
Upon a petition duly filed by Seafarers International Union of
North America, A. F. of L., Great Lakes District, herein called the
S. I. U., alleging that a question affecting commerce had arisen cos'
cerning the representation of employees of International Horvesier
Company, Chicago, Illinois, herein called the Company, the National
Labor Relations Board provided for an appropriate hearrnnw upon
due notice before Robert Ackerberg, Trial Evaiuiner. Said bearing
was held at Chicago, Ill i nois, on January 27, 1944. The Company, the
S. I. U., and the National Maritime Union of America, C. I. 0., herein
called the N. M. U., appeared and participated. All parties wero
afforded full opportunity to be heard, to examine and cross-examine
witnesses, and to introduce evidence bearing on the issues. The Trial
Examiner reserved ruling upon the motion of the N. M. U. to dismiss
the petition. For reasons set forth in Section III, in/ra, said motion
is hereby denied. The Trial Examiner's rulings made at the hearing
are free from prejudicial error and are hereby affirmed. Al] parties
were afforded an opportunity to file briefs with the Board.
55'N. 1, R B. No 92
07S121)-44-col c.-)-33 497
498 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Upon the entire record in the case, the Board makes the following:
FINDiNGs Or FACT
I. THE BUSINESS OF THE COMPANY
International Harvester Company, a New Jersey corporation with
general offices in Chicago, is engaged chiefly in the production of war
material for the United States Government. Formerly, the Com-
pany was engaged in the design, Manufacture, assembly, repair, sale,
and distribution of motor trucks, farm tractors, industrial tractors,
and farm implements. The Company operates ii number of plants,
one of which is the Wisconsin Steel Works at Chicago, Illinois. The
principal raw materials used at this plant are coal, ore, scrap, stone,
magnesluin, and other alloys, which were valued in 1942 at approxi-
mately $16,000,000, of which about 85 percent represented materials
purchased outside the State of Illinois. The principal products of
the plant are carbon, alloy, steel, pig iron, and byproducts. The value
of these products iii 1942 exceeded $10,200,000, approximately 40 per-
cent of which was sent from the plant to points outside the State of
Illinois.
The Company owns and operates two bill!: freighters. S'tr. The Har-
vester and Sir. The Inter°natiormrcl, having gross tonnage of 7,188 and
7,986, respectively, keel lengths of 52:5 and 580 feet. respectively, and
carrying capacities of 10;500 tons and 13 ,500 tons, respectively. These
freighters for the most part make trips from Superior, Wisconsin to
South Chicago, Illinois, carrying ore mined on the Mesabi range in
Minnesota to the Wisconsin Steel Works of the Company, and are
engaged m such work from about May 1 until about, December 1
of each year. Occasionally the vessels stake trips to other ports on
the Great Lakes, but then• operations are predoutinantly the carrying
of iron ore as described above. During 1942 the annual value of the
freight carried by these vessels exceeded $1,000.000.00. This proceed-
ing concerns only the operation of these two freighters. With respect
to operation of these freighters, the Company concedes, and we find,
that it is engaged in commerce within the meaning, of the National
Labor Relations Act.
11. THE ORGANIZATIONS INVOL\ED
Seafarers International Union of North America, Great Lakes Dis
trict, is a labor organization, affiliated with the American Federation
of Labor, admitting to membership employees of the Company.
National Maritime Union of America is a labor organization, affili-
ated with the Congress of Industrial Organizations, admitting to
membership employees of the Company.
INTERNATIONAL HARVESTER COMPANY 499
111. THE QUESTION CONCERNING REPRESENTATION
On August 1, 1941, the Company and the N. M. U. entered into an
agreement fora consent election to be conducted by the National Labor
Relations Board among all unlicensed personnel aboard the Com-
pany's two freighters, The International and The Harvester. Pur-
suant to the agreement, an election was conducted on August 6 and
9, 1941, and, on August 13, the Company was notified by the Regional
Director of the Board that the N. M. U. had been designated as the
exclusive bargaining representative of the employees in the agreed
bargaining unit. Thereafter, the parties entered into negotiations
for a, collective bargaining agreement. On November 28, 1941, they
executed a one-page agreement whereby the Company agreed to rehire
for the 1942 season all those qualified employees among the unlicensed
personnel who had performed the usual services incident to the lay-up
of the vessels at the close of the 1941 season. No further written agree-
ments have been executed, but the Company has, in fact, recognized and
dealt with the N. M. U. as the exclusive bargaining agent of its unli
censed personnel fora period of more than 2 years, and the bargaining
efl'o^-ts of the N. 111. U., during that period, have borne fruit. Thus, in
September or October 1941, in order to lighten the work of the galley
crews, the Company introduced a third porter as a permanent member
of the crew on each vessel. Previously, a third porter had been only
occasionally employed. Some improvements were made in the living
conditions of unlicensed personnel, and agreement has from time to
time been reached on additional improvements which will be made
when the Company can obtain the necessary equipment. A pass was
granted to the N. M. U. port representative in the fall of 1941 and
during the 1942 season. At the same time, a crew member on each
vessel was recognized by the Company as the union delegate with the
status of a shop steward who could present grievances in an informal
manner, there being no agreement to formalize the grievance process.
In hiring unlicensed personnel from August 1941 to December 1943,
the Company called -upon the N. M. U. to supply men before resorting
to other employment methods.
However, although the parties were able to bargain successfully
regarding the matters described above, they reached an impasse in
negotiating with respect to wages, a hiring plan, passes and working
rules, and, on August 18, 1942, a dispute involving these issues was cer-
tified to the National War Labor Board. On February 2, 1943, the
National War Labor Board issued a Directive Order, ordering the
parties to continue negotiations with respect to passes, working rules,
and a hiring plan, and granting a wage increase of $22.00 per month
to all unlicensed personnel. Subsequent negotiations between the
parties, pursuant to the Directive Order, proved fruitless, and on
500 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
March 2,1943, the National War Labor Board issued a Supplementary
Directive, ordering the Company to issue a pass to authorized repre-
sentatives of the N. M. U., to institute a system of proportionate hiring
for the 1913 season, and again directing the parties to negotiate re-
garding working rules.
Thereafter, the parties being unable to agree on the proportion to
be observed in hiring for the 1943 season, an arbitrator was appointed
to determine the issue. On September 1, 1943, the National War
Labor Board issued a decision adopting the findings of the arbitrator
regarding the percentage of N. M. U. members whom the Company
must employ for the 1943 season under the terms of the Supplementary
Directive of March 2, 1943.
On October 18, 1943, the S. I. U. wrote to the Company, claiming
to represent a majority of the unlicensed personnel aboard The In-
ternational and The Harvester and requesting recognition as their
exclusive bargaining representative. The Company replied, on Octo-
ber 19, declining to accord recognition to the S. I. U., on the ground
that the N. M. U. had been "certified" by this Board and that the
parties were engaged in contract negotiations, pursuant to a Directive
Order of the National War Labor Board.
Negotiations between the Company and the N. M. U. regarding
working rules the only unresolved issue-continued over an ex-
tended period, but failed to result in agreement. As a result, on
November 22, 1943, the War Shipping Panel of the National War
Labor Board assumed jurisdiction, and, on February 4,1944, a hearing
on the issue of working rules was conducted. No decision in the
matter has issued. No other issue involving the parties is pending
before the National War Labor Board.
The N. M. U. contends, in effect, that the pendency of the dispute
over working rules before the National War Labor Board operates
to divest this Board of jurisdiction in the instant representation pro-
ceeding. We find no merit in this contention. While it is true that
in some cases we have declined to proceed to a determination of
representatives in the presence of a dispute before the National War
Labor Board, wcidid so, not on jurisdictional grounds, but because
we were of the opinion that to order an election in those cases might
unfairly deprive a recently certified or recognized representative of
a reasonable opportunity to obtain the benefits of exclusive represen-
tation, inasmuch as its initial bargaining efforts, following recognition
or certification, had proved fruitless primarily as a result of unavoid-
able delays consequent upon its voluntary resort to the proceedings of
the National War Labor Board.' It is clear that we are not here
See Matter of Alhs-Chalmers Mfg Co, 50 N. L R. B 306; and Matter of Kennecott Cop-
per Corp., Nevada Mines Division, 51 N. L R. B. 1140.
INTERNATIONAL HARVESTER COMPANY 50 1
confronted with such a factual situation. For over 2 years, the
N. M. U. has been the exclusive bargaining representative of the un-
licensed personnel aboard the Company's two freighters. During
that period, it has obtained, both through the collective bargaining
process and through directives of the, National War Labor Board,
many substantial benefits for itself and its membership. All disputed
matters before the National War Labor Board, except working rules,
have been resolved. In these circumstances, we believe that the
policies of the Act can best be effectuated by providing the employees
herein with the opportunity to express their present representation
desires in an election by secret ballot.2
A statement of the Regional Director, introduced into evidence at
the hearing, and a statement of the Trial Examiner made at the hear-
ing, indicates that the S. I. U. and the N. M. U. each represents a
substantial number of employees in the unit hereinafter found appro-
priate.-3
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 parties are agreed that all unlicensed employees aboard the
Company's two vessels, The International and The Harvester, exclud-
ing the wireless operators, constitute an appropriate unit.4
The Company expressed doubt regarding the propriety of includ-
ing stewards in the unit. The record discloses that the steward, an
unlicensed employee,has charge of the galley on each vessel. He acts
as chief cook and has the responsibility of making out orders for the
purchase of provisions. The stewards were eligible to vote in the
consent election of 1941, and since that time have been included in the
bargaining unit. In view of these facts, we shall include stewards in
the unit.5
The S. I. U. stated that it would prefer that the appropriate unit be
described as "all unlicensed personnel aboard the Company's vessels."
2 Matter of MacClatchie Maniefacturing Company, 53 N L R. B. 1181 ; Matter of Ft.
Dodge Creamery Company, 53 N. L. R B 92S; Matter of Columbia Protektosite Co, Inc.,
53 N. L R B. 560; Matter of Americus J. Leonard at al., 51 N L. R. B. 1424; Matter of
American Finishing Company, 54 N. L R B 096
3 The Regional Director and the Trial Examiner reported that the S I. U submitted 32
authorization cards, all of which bore apparently genuine original signatures; that the
navies of 24 persons appearing on the cards were listed on the Company's pay roll of No-
vember 18, 1943, which contained the names of 55 employees in the appropriate unit; and
that the cards were dated in September and October 1943.
The N. M U submitted petitions which bore 34 apparently genuine original signatures.
The names of 27 persons appearing in the petitions were contained in the aforesaid pay
roll The petitions were executed in October 1943.
This is the same unit foi which the N. M. U has bargained since 1941.
See Matter of Midland S. S. Lines, Inc., 53 N L. R. B. 727.
502 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
The evidence shows that the Company does not contemplate any change
in the identity or number of vessels it will operate in the foreseeable
future, and both the Company and the N. M. U. request that the names
of the vessels be specified. In view of these facts, we sha11, in our
designation of the appropriate bargaining unit, specify the names of
the vessels. In so doing, we do not determine whether employees on
possible future additions to the Company's fleet could be appropriately
included in the bargaining unit established herein.
We find that all unlicensed employees aboard the Company's vessels,
The International and The h arvester, including stewards, but exclud-
ing wireless operators, constitute a unit appropriate for the purposes
of collective bargaining within the meaning of Section 9 (b) of the
Act.
V. THE DETERMINATION OF REPIILSENTATIYES
The two vessels involved herein sail between Chicago, Illinois, and
Superior, Wisconsin, from about May 1 to December 1 of each year.
The fitting-out period begins about April 15 of each year, and each
vessel makes between 35 and 37 round trips in a season. In the last
2 years about 60 percent of the unlicensed crew which laid up a vessel
at the end of a season returned to work for the next season. There
has been in the past few seasons a turn-over of approximately 4 men
per vessel on each trip, and about 50 percent of the unlicensed em-
ployees who worked on the first trips of the 1941 and 1942 seasons
worked throughout those seasons. Of the 50 percent who did not
finish the season, three-fifths worked at least half of the season. For
each round trip of each vessel the Company prepares a new pay roll.
For the purpose of determining eligibility to vote, the parties
consider reasonable the use of the pay rolls for the second trip of each
vessel of the 1944 season, although the S. I. U. would prefer to limit
eligibility to those employees whose names appear on the last pay
rolls of the 1943 season and who are reemployed in 1944. In view
of the facts set out above, we believe and find that the use of the pay
rolls for the second trip of each vessel of the 1944 season will best
insure a fully representative determination.
We shall, therefore, direct that the question concerning representa-
tion which has arisen be resolved by an election by secret ballot
among the employees in the appropriate unit whose names appear on
the pay rolls for the second trip of each vessel in the 1944 season,
subject to the limitations and additions set forth in the Direction of
Election hereinafter.
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
INTERNATIONAL HARVESTER COMPANY 503
Act, and pursuant to Article III, Section 9, of National Labor Rela-
tions Board Rules and Regulations-Series 3, it is hereby
DInEcvEn that, as part of the investigation to ascertain representa-
tives for the purposes of collective bargaining with International
Harvester Company, Chicago, Illinois, an election by secret ballot
shall be conducted as early as possible, under the direction and super-
vision of the Regional Director for the Thirteenth 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 Regula-
tions, among the employees in the unit found appropriate in Section
IV, above, whose names appear on the pay rolls for the second trip of
each vessel in the 1944 season, including employees whose names do
not appear on said pay rolls 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 they desire to be represented by
Seafarers International Union of North America, A. F. of L., Great
Lakes District, or by National Maritime Union of America, C. I. 0.,
for the purposes of collective bargaining, or by neither.