International In-Flight Catering Co., Ltd.

National Labor Relations Board - Board Decisions

Mar 6, 1974

209 N.L.R.B. 444 (N.L.R.B. 1974)

444 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
International In-Flight Catering Co., Ltd . and Interna-
tional Association of Machinists and Aerospace
Workers, Lodge 1245 , AFL-CIO, Petitioner. Case
37-RC-1874
March 6, 1974
DECISION AND ORDER
By MEMBERS JENKINS, KENNEDY, AND
PENELLO
Upon a petition duly filed under Section 9(c) of the
National Labor Relations Act, as amended, a
hearing was held before Hearing Officer Dennis R.
MacCarthy. Following the hearing, the Regional
Director for Region 20 transferred this case to the
Board for decision. Thereafter, Petitioner and Em-
ployer filed briefs.
Pursuant to the provisions of Section 3(h) of the
National Labor Relations Act, as amended, the
National Labor Relations Board has delegated its
authority in this proceeding to a three-member panel.
The Board has reviewed the rulings made by the
Hearing Officer at the hearing and finds that they are
free from prejudicial error. They are hereby affirmed.
Upon the entire record in this case, the Board
makes the following findings:
The Employer (IICC) is a Hawaii corporation
providing airline catering services, currently at only
Honolulu International Airport. Japan Air Lines
(JAL) owns 51 percent of the stock of IICC; Kokusai
Kogyo Company, Ltd., owns 39 percent of the stock;
and V. Boyd, vice president of IICC, owns 10 percent
of the stock.
IICC was created in 1971 at the direction of the
board of directors of JAL following a feasibility
study ordered by JAL. Prior to the creation of IICC,
JAL used private contractors for its catering needs in
Hawaii. The IICC stock structure resulted from
Hawaii Department of Transportation advice (in
response to JAL questions) that, in order for JAL to
be able to assign its existing lease of airport property
from JAL to IICC, JAL must maintain at least 51
percent majority control of the subsidiary. JAL
designated Yukichi Abe, a retiring executive of the
Airline, to become president of 11CC. According to
record testimony, JAL currently controls the votes of
8 of the 12 members of the IICC board of directors.
JAL considers IICC one of its related companies
and, consequently, Mr. Abe must attend bimonthly
meetings in Tokyo of the JAL Department of
Related Companies at which all JAL's subsidiaries
are represented. The executives of IICC conduct the
business of the flight kitchen pursuant to a memoran-
' The sublease to 11CC provides that if IICC should cease being majority
owned by JAL, the lease revert -, hack to JAL
dum from the JAL Department of Related Compa-
nies which requires the prior consent of JAL for the
following IICC activities: Agendas for IICC stock-
holder meetings; any change in IICC's board of
directors or corporation officers, or salary changes
for these individuals; corporate planning; establish-
ment of related companies and/or investments;
establishment and deviation of major rules and
regulations; and other similar important items.
IICC must file with JAL, each month, the minutes
of all board of director meetings, a monthly financial
report, a report of major changes in organization or
personnel affairs, and a statement of leasehold
improvements.
JAL maintains the master lease on the property
used by IICC i and holds a mortgage on all IICC
trucks, equipment, and leasehold improvements. The
Airline has complete control over the menus and
their preparation and is free to inspect the facilities at
all times, but the Petitioner Union asserts that this is
equally true as to the facilities of subcontractor
catering companies.
JAL is the recipient of 78 percent of IICC's
catering services; 20 percent of IICC's business is
with Korean Air Lines; and the remaining 2 percent
is provided for Pan American. Each of the three
airlines has a written contractual arrangement with
IICC for the provision of such services. Although
informal business negotiations have occurred with
Air New Zealand, no subsequent contracts have
resulted. The officers of IICC allege that their
primary concern is to provide JAL with all necessary
catering services, and contracts with other airlines
are dependent on the availability of IICC facilities
unnecessary to meet JAL obligations.
The parties stipulated that the Employer during the
past calendar year received gross revenues in excess
of $500,000 and purchased food and beverage
supplies from local firms who, in turn, purchased
such supplies from outside the State of Hawaii
valued in excess of $50,000. However, the Employer
urges dismissal of the petition on the ground that,
because of its affinity with JAL, a foreign air carrier,
its operations and employees are covered by the
provisions of the Railway Labor Act, and this Board
is therefore without jurisdiction.
Because of the nature of the jurisdictional question
presented here, we have in this case, as has been our
practice in the past,2 requested the National Media-
tion Board as the agency primarily vested with
jurisdiction, under the Railway Labor Act, over air
carriers and having primary authority to determine
its own jurisdiction to study the record in this case
and determine the applicability of the Railway Labor
2 See, a g.. Trans-East Air, Inc, 189 NLRB 185
209 NLRB No. 102
INTERNATIONAL IN-FLIGHT CATERING CO.
Act to the Employer. We are administratively
advised by the National Mediation Board that:
The National Mediation Board . . . has con-
cluded that International In-Flight Catering Co.
Ltd. is a company which is directly owned or
controlled by or under common control with an
air common carrier, Japan Air Lines Co., Ltd.
International In-Flight Catering Co. Ltd. pro-
vides services exclusively in connection with
transportation of property by air common carriers
and the major portion of these catering services
(78 percent) are provided to Japan Air Lines.
Additionally, Japan Air Lines directs the manner
of rendition of the services provided to the air
445
carrier by its subsidiary, International In-Flight
Catering Co., Ltd.
Under these circumstances , the National Medi-
ation Board has concluded that International In-
Flight Catering Co. Ltd. meets the statutory
definition of carrier as contained in Sections 1 of
Title I and 201 of Title II of the Railway Labor
Act.
In view of the foregoing , we shall dismiss the
petition.
ORDER
It is hereby ordered that the petition in Case
37-RC- 1874 be, and it hereby is, dismissed.