Lennox Furnace Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsFeb 28, 194020 N.L.R.B. 962 (N.L.R.B. 1940) Copy Citation In the Matter of LENNOx FURNACE CO., INC. and SYRACUSE FEDERA- TION OF LABOR Cases Nos. C-1267 and R-1.30-5.-Decided February 28, 1940 Furnace and Air Conditioning Equipment Manufacturing Industry-Inter- ference, Restraint, and . Coercion : engendering fear of loss of employment for union activity ; discrediting union and union leaders ; expression of joy at results of poll conducted in plant necessitating choice of union or company- Company-Dominated Union: domination and interference with formation and administration ; advocacy of unaffiliated labor organization by respondent ; out- spoken hostility to "outside " union held to have resulted in organization of company-dominated union; ordered disestablished-Discrimination: charges of, dismissed-Unit Appropriate for Collective Bargain big: production and main- tenance employees , including the installers in the city department , but exclud- ing executives , other supervisory employees , clerical employees , and teamsters- Representatives : proof of choice : applications for union membership-Collec- tive Bargaining: refusal to bargain in good faith ; refusal at outset of negotia- tions to embody any agreement in a signed contract ; affirmative order to bargain with the union and to embody understandings in written agreement upon request-Investigation of Representatives : petition for, dismissed , in view of order to bargain. - Mr. Peter J. Crotty, for the Board. Fraser Brothers, by Mr. Henry S. Fraser, of Syracuse, N. Y., for the respondent. Mr. Francis L. McElroy, of Syracuse, N. Y., for the Union. Mr. Maurice W. Sharp, of Syracuse, N. Y, for the Association. Mr. Louis C,ok'in;..of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE On August 17 and September 10, 1938, and January 3 and Feb- ruary 14, 1939, Syracuse Federation of Labor, on behalf of Sheet Metal Workers International Association, Local 58, herein called the Union, filed with the Regional Director for the Third Region (Buffalo, New York) charges and amended charges that Lennox Furnace Co., Inc., Syracuse, New York, herein called the respondent, 20 N. L. R. B., No. 93. 962 LENNOX FURNA CE COMPANY, INC. 963 had engaged in and was engaging in unfair labor practices affecting commerce within the meaning of Section 8 (1), (2), (3), and (5) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. On December 30, 1938, the Union filed a petition alleging that a question affecting commerce had arisen concerning the representation of employees of the respondent and requesting an investigation and certification of representatives pursuant to Section 9 (c) of the Act. On January 20, 1939, 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 1, as amended, directed that, an investigation be conducted upon'the petition and that an appro- priate hearing be held upon due notice. On the same day, the Board, acting pursuant to Article II, Section 37 (b), and Article III, Section 10 (c) (2), of said Rules and Regulations, ordered a consolidation of the representation and unfair labor practice cases. T'pon the charges and amended charges, the Board, by the Re- gional Director for the Third Region, issued its complaint and amended complaint dated February 6 and 15, 1.939, respectively, against the respondent, alleging that it had engaged and was engag- ing in unfair labor practices affecting' commerce, within the meaning of Section 8 (1), (2), (3), and (5) and Section 2 (6) and (7) of the Act. Copies of the complaint, the amended complaint, the petition, the Board's order of consolidation and direction of investigation and hearing, and notices of hearing on the complaint, the amended complaint, and the petition, were duly served upon the respondent, upon the Union, and upon Lennox Employees Association, herein called the Association. The complaint, as amended, alleged in substance : (1) that the re- spondent fostered, encouraged, sponsored, and dominated the Asso- ciation, interfered with its administration, and contributed support to it; (2) that the respondent on or about July 12, 1938, and at all times thereafter, refused and has refused to bargain collectively with the Union as the exclusive representative of employees of the respondent in a unit appropriate for collective bargaining, although the Union was on or about July 12, 1938, and at all times thereafter has been, the duly designated representative of a majority of the employees in such unit; (3) that on February 8, 1939, the respondent terminated the employment of Charles Breh and Robert Guernsey, employees of the respondent, and refused to reinstate or reemploy them because they joined and assisted the Union; and (4) that by these acts, by causing or permitting anti-union speeches on the re- spondent's property and time, by threats to close down the plant, and other acts, the respondent'-interfered with, restrained, and 964 DECISIONS OF NATIONAL LABOR RELATIONS BOARD coerced its employees in the exercise of rights guaranteed in Section 7 of the Act. On February 15, 1939, the Association filed a motion to intervene in the proceedings with the Regional Director.. On February 16, 1939, the Regional Director granted the motion but limited the inter- vention to matters directly affecting the Association. On February 18, 1939, and at the hearing, respectively, the re- spondent filed an-answer and an amended answer, in which it denied that its manufacturing activities are interstate in nature, denied the allegations of unfair labor practices, and alleged affirmatively that it refused to bargain with the Union at all times subsequent to Novem- ber 29, 1938, for the reason that it would have been illegal to do so. The respondent's answer, as amended, also contained affirmative alle- gations with respect to the two employees allegedly discharged for union activities. Pursuant to notice, a hearing was held on February 20, 21, 23, 24, 27, 28, and March 1, 1939, at Syracuse, New York, before Madison Hill, the Trial Examiner duly designated by the Board. The Board, the respondent, the Union, and the Association were represented by counsel and participated in the hearing. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evi- dence bearing on the issues was afforded all parties. The Associa- tion moved to intervene at the commencement of the hearing. The motion was granted. At the commencement of the hearing, at the close of the Board's case, and at the close of the hearing, counsel for the respondent moved to dismiss the complaint, as amended, on various grounds. The motions were denied. At the close of tie hearing, counsel for the Board moved to conform the pleadings to the proof. The motion was granted. During the course of the hearing the Trial Examiner made several rulings on other motions and on objections to the admission of evidence. The Board has re- viewed the rulings of the Trial Examiner and finds that no prejudi- cial errors were committed. The rulings are hereby affirmed. On March 17, 1939, the respondent filed a brief. On April 26, 1939 the Trial Examiner issued his Intermediate Report, copies of which were duly served upon all parties, finding that the respondent had engaged in and was engaging in the unfair labor practices al- leged in the amended complaint. On June 20 and 21, 1939, respec- tively, the respondent and the Association filed exceptions to the Intermediate Report. On May 8, 1939, the respondent requested oral argument before the Board. On July 1, 1939, the respondent filed a brief. Pursuant to notice duly served upon the respondent, upon the Union,-and upon the Association, a hearing for the purpose of oral LENNOX FURNACE COMPANY, INC. '965 argument was held before the Board on October 31, 1939, in Wash- ington, .D. C. The respondent appeared by counsel and participated in the argument. The Union and the Association did not appear. The Board has considered the exceptions of the respondent and the Association and the briefs of the respondent, and save as the excep- tions are consistent with the findings, conclusions, and order set forth below, finds them to be without merit. Upon the entire record in the case, the Board makes the following. FINDINGS OF FACT I. THE BUSINESS OF THE RESPONDENT The respondent, an Iowa corporation, owns and operates plants at. Marshalltown, Iowa, and Syracuse., New York, where it is engaged in the business of manufacturing and distributing steel furnaces, air- conditioning equipment, blowers, and oil burners. This proceeding is concerned only with the plant at Syracuse. In 1934 the Syracuse plant expended $160,000 for the purchase of raw materials, 90 per cent of which were shipped to it from points outside the State of New York. The respondent does an annual busi- ness amounting to approximately $1,000,000 at its Syracuse plant, 84 per cent of which is derived front shipments made to points outside the State of New York. The respondent employs approximately 110 employees at its Syracuse plant. II. THE ORGANIZATIONS INVOLVED Sheet Metal Workers International Association, Local 58, is a labor organization affiliated with the American Federation of Labor. It admits to membership all employees of the respondent engaged in handling 10 gauge or lighter steel, excluding office workers, foremen, other supervisory employees and watchmen. Lennox Employees' Association is an unaffiliated labor organiza- tion admitting to membership all production and maintenance em- ployees of the respondent, including watchmen, but excluding de- partment heads, foremen, other supervisory employees, and office and clerical employees. III. THE UNFAIR LABOR PRACTICES A. Sequence of events On July 12, 1938, the Union held a, meeting attended by employees of the respondent. On July 13 or 14, 1938, one Fredericks and. John Speirs, representatives of the Union, called upon. Ralph E. Martin, factory manager, and stated that the Union had been designated by 2 53031.-41-vol . 20-(12 966 DECISIONS OF NATIONAL LABOR RELATIONS BOARD it majority of the respondent's employees and requested exclusive recognition for the production and maintenance employees. - The union representatives also indicated that they would ask for a closed shop, and they asked Martin whether the respondent would sign an agreement with the Union. Martin discussed the nature of a closed shop with the union representatives, but stated that since he had no .authority to bargain with the Union, the union representatives would have to see Dana W. Norris, at that time general manager and sub- sequently vice president of the respondent. Norris had been in Buffalo. On July 13, 1938, E. T. Booth, secre- tary-treasurer of the respondent, telephoned him in Buffalo from Syracuse and informed him that the Union had held a meeting the night before. On July 15, 1938, Norris returned from Buffalo. Mar- -tin reported to Norris the subject of his conference with the Union. Norris summoned the employees to a meeting which was held in the plant during working hours on July 15. Norris explained to the assembled employees that he had called them together to discuss "several problems" of the respondent and to make "a declaration of company policy with respect to collective bargaining." Norris then delivered a talk to the assembled employees. In substance, he stated that business conditions might necessitate lay-offs in the near future, :set forth alleged rights of employees and employers under the Act, and quoted portions of the opinion of the Supreme Court in National Labor Relations Board v. Jones and Laughlin Steel Corp.' In the course of this speech, he twice characterized the representatives of the Union who had called upon Martin as "outsiders." At one point, in stating that the respondent would not "refuse to talk to any group,!! Norris mentioned as an example thereof "outsiders, knowing nothing about our business." With. respect to the demands of the Union, Norris, among other things, said the following : Now, that means that we have a perfectly legal right to refuse to agree with anybody. I do not mean by that to state that we are not going to agree with anybody. I will tell you definitely, with all emphasis that I can put on it, that this company will never agree with anybody to a closed shop. The reason why we make that statement and take that attitude is that we will not force our employees to pay tribute to any organization for the right to work in this shop. That is what our employees would have to do under a closed-shop agreement. We do not intend to sign any agreement with any organization. The law does not re- quire us to do so. It is not my place to express any opinion to you men as to whether you should join any organization or should 1 301 U. S. 1. LENNOX FURNACE COMPANY, INC. 967 not. It is to know exactly where we stand on this subject of collective bargaining, signed agreements, and closed shops. I don't mean by anything I have said that we will refuse to talk to any group, whether that be outsiders, knowing nothing about our business, whether that be a group representing your men, or whether that be your [sic] nien as individuals. I will go a little further than that and say that I will guarantee, so far as I have it in nmy power to do so, that none of you has to pay dues, assessments, or anything else to any outside organization for the right to work in this plant. Conversely, I will guarantee to any and all of you that your jobs will not be in jeopardy in- any way, shape, or form simply because you do happen to join any outside organization. It will thus be noted that Norris stated categorically that he would "never agree with anybody to a closed shop," and characterized such an arrangement as compulsion upon an employee ' to pay "tribute" for "the right to work." Although Norris asserted his willingness "to talk to any group," he insisted that the respondent did "not intend to sign any agreement with any organization." On July 19, 1938, pursuant to agreement, Speirs, union representa- tive, and Norris net in the plant.. At the opening of the conference, Norris summoned eight employees and three supervisory employees to attend and explained his action to Speirs as follows : I have called in these fellows here representing the various departments in the plant 2 because as long as we are going to talk about wages and hours, I wanted them to know what was being discussed. Norris then asked Speirs whether he had "any statement or proposi- tion to present." Speirs stated in reply that the object of the confer- ence was to inform the respondent that the Union had been designated by a majority of the employees and to confer with Norris about the preliminaries incident to making a collective bargaining agreement.- Speirs stated further that he had not expected "to meet with repre- sentatives from all- the departments," that -he- was not yet prepared to discuss terms and conditions of employment in detail, and that he would soon receive from union headquarters a standard form of agree- ment which he would then submit with appropriate insertions to the respondent. There then ensued a general discussion in the course of which Norris repeated portions of the speech which lie had delivered to the employees on July 15. Norris asked Speirs whether the Union The record does not indicate that ti:ese employee., represented their respective depart. meets Other than by selection by N( rris. 968 DECISIONS OF NATIONAL LA13OR RELATIONS BOARD would demand a closed shop. Upon Speirs' affirmative reply,. Norris stated the following : ... we are not going to agree with anybody as to a closed shop. That is definite and final. Now the reason why we take that posi- tion is that we believe, and the law says, that every employee has the right to join or refrain from joining any organization, and our opinion is that any agreement on our part to a, "closed shop" would deny the employees the right which they are entitled to under the Constitution of the country. Norris again described a closed shop as forcing the employees to pay "tribute" ' and insisted that the respondent's position in regard to the closed shop was "definite and final and not a subject for discussion." There was further general discussion in the course of which Speirs stated that the Union would insist on a signed agreement and Norris reiterated his position a number of times that no matter what pro- posals the Union submitted, the respondent did "not intend to sign any agreement." At the close of the conference Speirs indicated that he would be prepared to submit concrete proposals at a subsequent time. The respondent and the Union agreed to meet Monday, July 25. On July 21, during the lunch period, Leon Heagle, at this time a member of the Union and one of the employees selected by the re- spondent to attend the conference of July 19, stated to a group of employees that they would receive no benefits from the Union other than the privilege of paying dues. Heagle testified he became dissatis- fied with the Union for the first time at a meeting of the Union held on July 20.4 This was the day after he attended the conference be- tween the respondent and the Union at Norris' invitation. Another member of the luncheon group suggested that Heagle summon the employees to a meeting. Thereupon, Heagle, accompanied by Frank Galuski, a member of the Union, and another of the employees who attended the July 19 conference at Norris' request, asked Norris for permission to address the employees. Norris granted him the. re- quested permission. At the hearing Norris testified that he "suspected that the purpose of the meeting was to discuss the Union question but I had no idea what the outcome of the meeting" would be. Heagle and Galuski returned to the already assembled employees in the plant and a meeting followed. The meeting started during and continued beyond. S Norris further stated in this connection: "I think it is pretty tough for the average worker to-day to meet his grocery bills, rent, and all other personal living expenses without being forced against his own choice to pay tribute for the right to work in any shop. It is his legal privilege to do so, but the law does not force him to do it." 4 neagle was nominated for the office of secretary in the Union at this meeting but declined the nomination "for good and substantial reasons." Fleaglo testified at the. hearing that his reasons were that the Union knew nothing about the conditions at the respondent 's plant. LENNOX FURNACE COMPANY, INC. 969 the lunch period. The employees were not docked for the time spent at this meeting. Heagle told the assembled employees, in substance, that he had been to the "front office," that from his duties as a shipping clerk he knew that the respondent was losing money, and that the plant might close any day. An unidentified employee suggested that the employees vote whether or not they wished to be represented by the Union. Clarence Mitchell, foreman or group leader in charge of the paint department, suggested that the ballot read, "Lennox or Union." Heagle adopted Mitchell's suggestion. Accordingly, the em- ployees were asked to vote for the respondent or for the Union. The result of the balloting was as follows : 52 for the respondent, 12 for the Union, 10 not voting. After Norris had authorized the holding of the meeting, he went to lunch, returned to his office, and waited between an hour and an hour and a half "expecting to get word from somebody, as to what had gone on at that meeting." Between 2 :30 and 3 :00 o'clock Heagle, Galuski, and 'Bill Bell, an employee, came to Norris' office and in- formed him of the vote and its outcome. A discussion ensued. Ga- luski asked Norris what type of labor organization the respondent's employees at Marshalltown, Iowa, had. Norris replied that the C. 1. 0. had attempted to organize the plant and that a majority of the em- ployees there, opposed to it, had organized a "Lennox Association." Norris stated further to these three employees that his father had told the employees in Marshalltown that if any trouble or a strike occurred, he would shut the plant and go to California. Immediately after this conversation Norris summoned the em- ployees to a meeting at the plant and expressed his joy at the out- come of the vote as follows : "I feel like getting drunk." He informed the employees that the respondent had planned a sales program, that "when the union trouble started I could see the whole thing go out the window," and that now Norris could "sell" the program to his father, president of the respondent, "if I can assure him we are not going to have any labor trouble." Norris thanked the employees for their expression of confidence in the respondent. He also requested the employees not to discuss unions in the plant. On July 25, pursuant to arrangement, Norris met with Speirs and William Goff, representing the Union. Norris again summoned to the conference five employees and three supervisory employees. At this meeting there occurred a general discussion covering several matters, including the balloting held on July 21. Norris stated that in view of this vote, the respondent had no right to recognize the Union as exclusive representative. Goff and Speirs challenged the authenticity of the vote. Norris asked if the union representatives were ready to submit a proposed contract. Speirs replied that the 970 DECISIONS OF NATIONAL LABOR RELATIONS BOARD '.Union was . not yet so prepared because the July .21 balloting had prevented the meeting at which the Union was to formulate its specific bargaining demands. In the course of the conference Speirs and Norris agreed that when Speirs was ready he would call Norris "and set a date for another meeting." At the close of the conference Goff stated that the Union would "lay the matter before the Board to determine the bargaining agency.", On August 17 and September 10, 1938, the Union filed a charge with the Regional Director alleging that the respondent had'engaged in unfair labor practices, within Section 8 (1) and (3) of the Act. On September 12 the Regional Director informed the respondent that the Union had filed charges against it. On October 5, 1938, a group of five employees called upon Maurice H. Sharp, an attorney, informed him that they wished to form an association, and requested him to draft. a constitution and bylaws. Two 'of these five employees, Harry Coughenour and Gene Elliott, had been selected by Norris to attend the conference between the respondent and the Union held on July 25. On October 10, 1938, four or all five of these employees met at Sharp's office. Sharp submitted to this group a proposed constitution which they approved. Sharp suggested that the organization be called Lennox Employees' Association. He also submitted to the group a proposed petition designating the Association as bargaining agent.. At the close of the meeting the group decided to hold a gen- eral meeting on October 12 at a place outside the plant. On October 12, 1938, the meeting of the newly formed Association was held as scheduled. The record does not disclose the number of employees present at this meeting. Edward Mynton, an employee, presided. Sharp read the constitution and, following some discus- sion, promised to redraft the provisions relating to grievance pro- cedure. Thereafter officers were elected. After some discussion of eligibility requirements and the Act, the meeting adjourned. Between October 13 and 17, 1938, about 100 employees came to Sharp's office and there signed the petition purporting to designate the Association. On September 22, 1938, Speirs, representing the Union, and Norris, representing the respondent, held a conference attended. by the Regional Director of the Board. At this conference Norris stated : . . . that the information that I had as to the attitude of a good many of the men whom the Union claimed as members was such that I did not think that the Union at that time truly represented the majority of the employees. LENNOX FURNACE COMPANY, INC. 971 Norris refused to. follow the recommendation .of the Regional Direc- tor that the respondent "meet with representatives of the Union and bargain with then in good faith, and notify the employees by means of a bulletin" of the respondent's determination to do so. At the close of the conference the Union and the respondent agreed to meet at a subsequent time. On October 14, 1938, the respondent and the Union held a further meeting attended by the Regional Director. The respondent reiter- ated the position which it had taken at the conference of September 22, namely that it did not believe that the Union represented a majority and that it would not bargain with the Union. At the close of the conference the respondent and the Union agreed to meet again the following week. On October 18, 1938, Sharp informed the respondent by letter of the formation of the Association. On October 19, 1938, Sharp in- formed the ^ respondent . by letter . that the Association represented a majority and demanded exclusive recognition. On October 21, 1938, pursuant to arrangement, Speirs and Goff, representing the Union, and Norris, representing the respondent, met in conference. Norris informed the union officials that the Associa- tion claimed to represent a majority and that he therefore could not recognize either the Union or the Association as the exclusive repre- sentative. Goff thereupon suggested that the respondent recognize the Union as representative of its 67 claimed members. Norris stated that he could not accede to this suggestion because the Union and the Association were , advancing conflicting. membership. - claims. Speirs then asserted, and Norris denied, that the Association was com- pany dominated. Norris proposed that an election be held. At first the Union took the position that it was opposed to an election. Fol- lowing some discussion, the Union offered to submit to an election provided that Norris would post a "cease and desist" notice, whose terms were to be agreed upon and provided further that the name of the Association would not appear on the ballot. Norris stated that he could not.speak for the Association. The Union thereafter pro- posed that an election be conducted with the Association on the ballot provided that the respondent would agree in advance to enter into a closed-shop agreement with the organization which won the elec- tion. Norris agreed to consider this proposal. The parties arranged to meet again on October 27. On October 21, 1938, Norris assembled the employees at the plant and delivered a talk to them. He spoke briefly about the Association. He then described in detail the employees' "prospects for continued employment." With respect to the Association, Norris mentioned its demand for exclusive recognition, stated his intention to require 972 DECISIONS OF NATIONAL LABOR RELATIONS BOARD proof from the Association that it represented a majority and con- -t.inued as follows : - I made a statement last July upon the subject of a closed shop which I really meant at that time. I am informed that that state- ment constituted a violation of the law. I don't agree with that. The reasoning behind the charge that it did constitute a violation of the law, is not important, but I meant the. statement when I said it, and when I made the statement that I would guarantee that no man would be discriminated against in this shop because he joined any labor organization or refused to join it, I meant what I said, and I am absolutely impartial in that stand. It doesn't make any difference to me what the labor organization in question may be, whether it be Lennox Employees' Association or any other; I still make the statement that you don't have to belong to any organization to hold a job in this shop, as far as I am concerned, and I want that thoroughly understood. In other words, that is simply a policy on the part of the Company management which applies to one and all labor organizations alike. On October 22, 1938, the respondent, replying by letter to the demand of the Association for exclusive recognition, dated October 19, requested the Association to supply proof of majority designation. On October 23, 1938, the Association met with the respondent. Norris took the position that the respondent could not recognize the Association because the Association and the Union were advancing conflicting membership claims. He stated that an election by secret ballot would be necessary. Norris also informed the Association ,of his meetings . with the Union and that the respondent and the Union were to meet again on October 27. On October 24, 1938, the Association sent the respondent a list of members claimed by the Association. On October 26, 1938, the respondent returned the list with an accompanying letter stating, among other things, that under the circumstances it could not regard the list as "conclusive." The letter also contained the following: I must have unmistakable proof as to which of these rival organizations our employees now want to have represent them for purposes of collective bargaining, as I have. already told you verbally. I am leaving it up to the organizations involved as to what method may be adopted to provide me with conclusive evi- dence of the wishes of our employees. I understand that your Association is now proposing that an election be held under impartial auspices to determine the answer to my question. This procedure appears to be all right, but'I want it understood that LENNOX lURNA'CE 00MPANY, INC. 973 I will have.:notliing.to do.personally with anything of that kind. On October 27, 1938, the respondent and the Union held a confer- ence as scheduled. The respondent advised the Union that it could not agree lawfully to enter into a closed-shop agreement with the organization winning an election, that it would not consent to a closed shop, and that it would discuss an election to be conducted by the Board. Grant Radley, president of the Association, was present at this,meeting with the Union's consent. The meeting adjourned, how- ever, because the Union objected to the attendance of Sharp who, without the knowledge. of the respondent, had been invited by Radley. On November 2, 1938, the respondent and the Union held another meeting attended by the Regional Director. The respondent sug- gested that a representative of the Association be invited to be present but abandoned the. suggestion because of the Union's opposition thereto. At this.. meeting the Copy with citationCopy as parenthetical citation