Magnolia Petroleum Co.

National Labor Relations Board - Board Decisions

Nov 21, 1941

36 N.L.R.B. 1145 (N.L.R.B. 1941)

In the Matter of MAGNOLIA PETROLEUM COMPANY and OIL WORKERS
INTERNATIONAL UNION, LOCALS Nos. 243 AND 229
- Case No. C-1996.-Decided November 21, 194.1
Jurisdiction : oil refining industry
Settlement : -stipulation providing for compliance with the Act.
Remedial Orders: entered on stipulation.
Mr. V. Lee McMahon, for the Board.
Mr. Ross Madole, of Dallas, Tex., and Mr. Sarnuel C. Lipscomb, of
Beaumont, Tex., for the respondent.
Mr. W. T. Trembley and Mr. John L. Coulter, of Fort Worth, Tex.,
for the Union.
Miss Marcia Hertomark, of counsel to the Board.
DECISION
AND
ORDER
STATEMENT OF THE CASE
Upon charges and amended charges duly filed by Oil Workers Inter-
national Union, Locals Nos. 243 and 229, herein called the Unions, the
National Labor,Relations Board, herein called the Board, by the Re-
gional Director for the Sixteenth Region (Fort Worth, Texas) issued
its complaint and amended complaint, dated respectively April 16, 1941,
and May 6, 1941, against Magnolia Petroleum Company, Beaumont,
Texas, herein called the respondent, alleging that the respondent had
engaged in unfair labor practices affecting commerce, within the
meaning of Section 8 (1), (3), and (4) and Section 2 (6) and (7) of
the National Labor Relations Act, 49 Stat. 449, herein called the Act.
Copies of the complaint and amended complaint and notices of hear-
ing thereon were duly served upon respondent and the Unions.
Concerning the unfair labor practices, the complaint, as amended,
alleged in substance: (1) That the respondent, on designated dates in
1937 and 1938, discharged nine named employees and thereafter re-
fused to reemploy them because they joined and-assisted the Unions
or engaged in other concerted activities for the purposes of collective
bargaining or other mutual aid or protection; (2) that on or about
36 N. L R B, No 235.
1145
1146 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
June 8, 1938, and thereafter, the respondent refused employment to
seven of these nine persons because they gave testimony in a proceeding
before the Board; and (3) that the respondent, by its officers and
agents, from on or about June 1, 1938, urged, persuaded, and warned
its employees to refrain from aiding, becoming, or remaining members
of the Unions, and threatened. them with discharge or other reprisals
if they aided the Unions or became members thereof.
Pursuant to notice, a hearing was begun on April 28, 1941, at Dallas,
Texas, before C. W. Whittemore, the Trial Examiner duly designated
by the Chief Trial Examiner. The respondent, the'B'oard; and the
Unions were represented by counsel and participated in the hearing.
On, October 16, 1941, the respondent and counsel 'for the Board
entered into a stipulation in settlement of the case. This stipulation
provides as follows:
It is hereby stipulated and agreed by and between Ross Madole,
attorney for the Magnolia Petroleum Company, hereinafter re-
ferred to as the Respondent, and V. Lee McMahon, Attorney,
National Labor Relations Board, Sixteenth Region, that
1. The Magnolia Petroleum Company is a Texas corporation,
chartered in 1925. It holds permits to do business in the States
of Louisiana, Arkansas, Oklahoma-, New Mexico, Kansas, Illinois,
Tennessee, Alabama, Mississippi, and Colorado. Its capitaliza-
tion is One Hundred and Twenty-five Million Dollars ($12,5,-
000,000.00). Its principal. officers are :
D. A. Little, President Vice Presidents:
Guy L. Tate, Secretary L. S. Sinclair
W. L. Holmes, Treasurer Walace Hawkins
M. J. McLaughlin
George Miller
J. C. Stephens
J. L. Latimer
John W. Newton
The Chairman of its Board of Directors is Mr. E. R. Brown.
Its principal business office is in Dallas, Texas. It owns and
operates a 'refinery located at Beaumont,- Texas. The general
manager of the refinery operations of the Company is John W.
Newton, who resides at Beaumont, Texas. The Company en-
gages in many activities peculiar to the oil industry, including the
operation of producing wells, refining and wholesale distributing
stations. No retail stations are operated.
The Magnolia Petroleum Company is a subsidiary of the
Socony-Vacuum Oil Company, Inc., all of its stock being owned
MAGNOLIA PETROLEUM COMPANY 1-1`47
by the Socony-Vacuum Oil Company, Inc., with the exception
of one share owned by each director of the Company.
- The Respondent's refinery at Beaumont, Texas, employs ap-
proximately twenty-one hundred (2100) men. This ' refinery
property occupies an area of approximately six hundred (600)
acres, with access to the port of Beaumont by means of a deep
water channel open to ocean-going vessels at all times of the
year. • The daily crude throughput of the Respondent's refinery
at Beaumont was approximately 81,000 barrels for the year 1938
and 90 ,000 barrels for the years 1939 and 1940. Approximately
ninety-seven per cent (97%) of the 'crude used in the refinery
is transported to 'the refinery through the pipe lines of Magnolia
-Pipe Line Company. Of this percentage, approximately eighty
per cent (8070) comes from producing wells located in the
States, of Oklahoma, Arkansas, and Louisiana. About three per
,,,it (3%) of the crude arrives via barge from points in
Louisiana.
At the Beaumont refinery almost every derivative product of
crude petroleum is produced. The chief product is gasoline.
Different grades of fuel oils, heating oils, kerosene, and other
petroleum by-products are also produced.
The completed products of the Beaumont refinery are shipped
out via, rail, truck, and sea carrier. Over fifty per cent (500%
by volume of the finished products moves from the refinery to
points outside the State of Texas via tanker steamship. Deep
sea vessels dock at the Respondent's refinery in Beaumont to
receive cargoes ranging from fifty to one hundred and twenty
thousand barrels. It is estimated by the Company that more
than seventy-five (75/)) of the products of its Beaumont Refinery
are ultimately consumed outside the State of Texas.
Respondent also owns over six hundred (600) wholesale dis-
tributing stations where gasoline is stored in bulk quantities.
The products of the Company are marketed to the general
public through these stations in the ' manner indicated in the
paragraph next preceding. Some of the gasoline and lubri-
cating oils produced by the Company were sold under registered
trade-marks. _
2. Respondent admits the allegations of Paragraphs 1 and 2
of the amended complaint heretofore issued in this matter, and
that it is engaged in interstate commerce within the meaning
of the National Labor Relations Act.
3. Respondent waives its right to further hearing in this cause
and all further or other procedure provided by the National
1148 DECISIONS' OF NATIONAL LABOR RELATIONS BOARD
Labor Relations Act or the Rules and Regulations of the Na-
tional Labor Relations Board, hereinafter referred to as the
Board, including the taking of further testimony and the mak-
ing of findings of fact and conclusions of law in this matter.
It is understood and agreed, however, that Respondent does not
waive its right to have the Board enter its order as herein agreed
and the affirmance of said order by the Circuit Court of Appeals.
4. Irrespective of record heretofore made in this proceeding,
the following papers may be filed with the Chief Trial Examiner
of the National Labor Relations Board in Washington, D. C.,
and when said papers have been so filed, they shall constitute
the entire record herein :
(a) the amended complaint heretofore issued herein,
(b) Respondent's answer heretofore filed herein,
(c) the Notice of Hearing heretofore issued herein,
(d) this Stipulation.
5. That Oil Workers International Union, Locals 243 and 229,
are labor organizations within the meaning of Section 2, sub-
section (5), of the National Labor Relations Act,•and are affili-
ated with the Congress of Industrial Organizations.
6. This Stipulation shall not be considered as an admission
that the Respondent or its agents have engaged in, or are engag-
ing in the unfair labor practices alleged in the complaint, and
the Respondent expressly denies that it or its agents, have engaged
in any such unfair labor practices.
7. Based on this Stipulation and the record herein as described
above in Paragraph 4, the National Labor Relations Board shall
forthwith issue an order in the following form in the above-
entitled matter.
ORDER
Upon the record herein, including a stipulation dated October
16, 1941, the National Labor Relations Board hereby orders that
the Respondent, the Magnolia Petroleum Company, and its officers,
agents, successors, or assigns
1. Refrain from
(a) in any manner discouraging membership in the Oil Workers
International Union, Locals 243 and 229, or any other labor
organization of its employees by discriminating in regard to their
hire or tenure of employment because of their membership in or
activities in behalf of any such labor organization;
(b) in any manner discriminating against any employee because
he has filed charges or given testimony under the National Labor
Relations Act.
MAGNOLIA PETROLEUM COMPANY 1149
2. Shall take the following affirmative action to effectuate the
policies of the National Labor Relations Act:
(a) Offer to reinstate W. T. Davenport to his former employ-
ment or substantially equivalent employmyent; restore to said
W. T. Davenport all rights and privileges to which he was entitled
on the 16th day of April, 1938, by virtue of his seniority or other-
wise, except for his insurance and annuities benefits.
(b) Offer to Lee Nelson a job in the common labor department
of the Beaumont Refinery at the Respondent's rate of pay for
"common labor colored"; restore to the said Lee Nelson all rights
and privileges to which he was entitled on the 4th day of May,
1938, by virtue of his seniority, or otherwise, except for insurance
and annuities benefits. '
(c) Offer to A. B. Bernard a job in the common labor depart-
ment of the Beaumont Refinery at the Respondent's rate of pay
for "common labor colored"; restore to the said A. B. Bernard all
rights and privileges to which the was entitled-on the 22nd day of
January, 1938, by virtue of his seniority or otherwise, except for
his insurance and annuities benefits.
(d) Offer employment to Guy West on what the Respondent
designates as its "temporary roll" at the Beaumont Refinery at
the rate of pay of a mechanical helper, and date his employment
and other rights and privileges as of September 26, 1940.
(e) Offer employment to John Ezell on what the Respondent
designates as its "temporary roll" at the Beaumont Refinery at
the rate of pay of a mechanical helper, and date his employment
and other rights and privileges as of September 26, 1940.
(f) Make whole A. J. Oliver, Louie Dean, Guy West, John Ezell
and John H. Ellison from September 26, 1940, being the date of
the alleged discriminatory refusal to re-hire, and make whole W. T.
Davenport, Lee Nelson and A. B. Bernard, from the date of the
alleged discriminatory discharge, by paying to Edwin A. Elliott,
Regional Director of the National Labor Relations-Board for the
Sixteenth Region, the sum of Fifty-Eight Hundred Dollars
($5,800.00), to be distributed by him among the hereinabove named
men, the Respondent to make the checks payable to the individuals
named.
(g) Post immediately on Respondent's bulletin boards located
at the locker room and in the main office lobby, both being at it&
place of business at Beaumont, Texas, and maintain for a period'
of at least sixty (60) consecutive days, copies of the following
notice :
1150 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
"MAGNOLIA PETROLEUM COMPANY.
NOTICE TO ALL EMPLOYEES, FORE, 211FN, SUPER-
INTENDENTS AND OFFICERS.:
PURSUANT TO THE ORDER OF THE NATIONAL
'LABOR RELATIONS BOARD DATED THE
DAY OF , 1941, BASED UPON AN
AGREED SETTLEMENT STIPULATION DATED THE
16TH DAY OF OCTOBER, 1941, MAGNOLIA PE'T'RO-
LEUM COMPANY AGREES THAT IT WILL :
1. Refrain from
(a) in any manner discouraging membership in the Oil
Workers International Union, Locals 243 and 229, or any other
labor organization of its employees by discriminating in regard
to their hire or tenure of employment because of their member-
ship in or activities in behalf of any such labor organization;
(b) in any manner discriminating against any employee be-
cause he has filed charges or given testimony under the National
Labor Relations Act.
2. (a) Offer to reinstate W. T. Davenport to his former em-
ployment or substantially equivalent employment; restore to
said W. T. Davenport all rights and priveleges to which he was
entitled on the 16th clay of April, 1938, by virtue of lus seniority
or otherwise, except for his insurance and annuities' benefits.
(b) Offer to Lee Nelson a job in the common labor depart-
ment of the Beaumont Refinery at the Respondent's rate of
pay for "common labor colored"; restore to the said Lee
Nelson all rights and privileges to -which he was entitled
on the 4th day of May, 1938, by virtue of his seniority, or
otherwise, except for insurance and annuities benefits.'
(c) Offer to A. B. Bernard a job in the connnion labor
department of the Beaumont Refinery at the Re.spondent's
.rate of pay for "common labor colored"; restore to thew said
A. B. Bernard all rights and privileges to Nvlnich lie was en-
titled on the 22nd day of January, 1938, by virtue of his
seniority or otherwise, except for his insurance and annuities
benefits.
(d) Offer employment to Guy West on what the Respondent
designates as its "temporary roll" at the Beaumont Refinery at
the rate of pay of a mechanical helper, and date his employ-
ment and other rights and privileges as of September 26, 1940.
(e) Offer employment to John Ezell on what the Respondent
designates as its "temporary 'roll" at- the Beaumont Refinery
MAGNOLIA PETROLEUM COMPANY - 1151
at the rate of pay of, a mechanical helper, and date his em-
ployment and, other rights and privileges as of September 26,
1940.
(f) Make-whole A. J. Oliver, Louie Dean, Guy West, John
Ezell and John H. Ellison from September 26, 1940, being the
date of the alleged discriminatory refusal to re-hire, and make
whole W. T. Davenport, Lee Nelson and A. B. Bernard, from
the date of the alleged discriminatory discharge, by paying
to Edwin A. Elliott, Regional Director of the National Labor
Relations Board for the Sixteenth Region, the sum of Fifty-
Eight Hundred Dollars ($5,800.00), to be distributed by him
among the hereinabove named men, the Respondent to make
the checks payable to the individuals named.
Joi-iN W. NEWTON,
Manager.
(h) Notify the Regional Director for the National Labor Re-
lations Board for the Sixteenth Region within ten days from
the date of this Order of the steps Respondent has taken to_
comply herewith.
3. It is hereby further ordered that the allegations of the
amended complaint alleging violations of Section 8, subsection
3, of the Act in the lay-off and/or discharge of the said A. J.
Oliver, Louie Dean, John H. Ellison, John Ezell and Guy West
be and hereby are dismissed with prejudice.
4. It is hereby further ordered that the allegations of the
amended complaint alleging violations of the Act concerning
Burtus A. Boyette be and hereby are dismissed with prejudice.
It, is further ordered that all other allegations of unfair labor
practices in the amended complaint not covered by this stipula-
tion are hereby dismissed with prejudice.
'8. The Respoii'defit hereby consents to the entry by the United
States Circuit Court of Appeals for the Fifth Circuit, upon
application by the National Labor Relations Board, of a con-
sent decree affirming and enforcing an order of the Board in the
form hereinabove set forth in Paragraph 7, and hereby waives
further notice of application of such decree. The.Board shall
immediately make application for said consent decree.
9. It is understood and agreed that this Stipulation embodies
the entire agreement between the parties and there is no verbal
agreement of any kind which varies, alters or adds to this Stipula-
tion.
1152 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
10. It is understood and agreed that this Stipulation is subject
to the approval of the National Labor Relations Board and shall
become effective immediately upon the granting of such ap-
proval and its entry of the herein stipulated order.
On October 29; 1941, the Board issued its order approving the above
stipulation, making it a part of the record in the case and trans-
ferring the proceeding to the Board for the purpose of entry of a
Decision and Order by the Board pursuant to the provisions of the
stipulation.
Upon the basis of the above stipulation and the entire record in
the case, the Board makes the following :
FINDINGS OF FACT
1. THE BUSINESS OF THE RESPONDENT
Magnolia Petroleum Company, a Texas corporation with its prin-
cipal office in Dallas, Texas, operates a refinery located at Beaumont,
Texas, at which it employs approximately 2,100 persons. The dally
crude throughput of the respondent's refinery at Beaumont was ap-
proximately 81,000 barrels for the year 1938, and 90,000 barrels for
each of the years 1939 and 1940. Approximately 97 per cent of the
crude used in the respondent's refinery is transported to it through
the pipe lines of Magnolia Pipe Company, and of this percentage
approximately 80 per cent comes to it from producing wells located
in States other than Texas. More than 50 per cent by volume of
the finished products of the respondent's refinery are shipped out-
side the State of Texas by tanker steamship, and more than 75 per
cent of the products of its Beaumont refinery are ultimately consumed
outside the State of Texas.
The respondent admits that it is engaged in commerce within the
meaning of the Act.
We find that the above-described operations constitute a continu-
ous flow of trade, traffic, and commerce among the several States.
ORDER
'Upon the record herein, including a stipulation dated October 16,
1941, the National Labor Relations Board hereby orders that the Re-
spondent, the Magnolia Petroleum Company, and its officers, agents,
successors, or assigns
1. Refrain from :
(a) In any manner discouraging membership in the Oil Workers
International Union, Locals 243 and 229, or any other labor organiza-
tion of its employees by discriminating in regard to their hire or tenure
MAGNOLIA PETROLEUM COMPANY 1153
of employment because of their membership in or activities in behalf
of any such labor organization;
(b) In any manner discriminating against any employee because
he has filed charges or given testimony under the National Labor
Relations Act.
2. Shall take the following affirmative action to effectuate the poli-
cies of -,the National Labor Relations Act;
(a) Offer to reinstate W. T. Davenport to his former employment
or substantially equivalent employment; restore to said W. T. Daven-
port all rights and privileges to which he was entitled on the 16th
day of April 1938, by virtue of his seniority or otherwise, except
for his insurance and annuities benefits;
(b) Offer to Lee Nelson a job in the common labor department of
the Beaumont Refinery at the respondents' rate of pay for "common
labor colored"; restore to the said Lee Nelson all rights and privi-
leges to which he was entitled on the 4th day of May 1938, by virtue
of his seniority, or otherwise, except for insurance and annuities
benefits ;
(c)- Offer to A. B. Bernard a job in the common labor department
of the Beaumont Refinery at the respondent's rate of pay for "common
labor colored"; restore to the said A. B. Bernard all rights and privi-
leges to which he was entitled on the 22nd day of January 1938, by
virtue of his seniority or otherwise, except for his insurance and
annuities benefits ;
(d) Offer employment to Guy West on what the respondent desig-
nates as its "temporary roll" at the Beaumont Refinery at the rate
of pay of a mechanical helper, and date his employment and other
rights and privileges as of September 26, 1940;
(e) Offer employment to John Ezell on what the respondent desig-
nates as its "temporary roll" at the Beaumont Refinery at the rate of
pay of a mechanical helper, and date his employment and other rights
and privileges as of September 26, 1940;
(f) Make whole A. J. Oliver, Louie Dean, Guy West, John Ezell
and John H. Ellison from September 26, 1940, being the date of the
alleged discriminatory refusal to rehire, and make whole W. T.
Davenport, Lee Nelson and A. B. Bernard, from the date, of the al-
leged discriminatory discharge, by paying to Edwin A. Elliott, Re-
gional Director of the National Labor Relations Board for the Six-'
teenth Region, the sum of Fifty-Eight Hundred Dollars ($5,800.00),
to be distributed by him among the hereinabove named men, the re-
spondent to make the checks payable to the individuals named;
(g) Post immediately on respondent's bulletin boards located at
the locker room and in the main office lobby, both being at its place of
433118-42-vol. 36-74
1154 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
business at Beauniont , Texas, and maintain for a period of at least
sixty ( 60) consecutive days, copies of the following notice:
"MAGNOLIA PETROLEUM COMPANY
NOTICE TO ALL EMPLOYEES, FOREMEN, SUPERIN-
TENDENTS AND OFFICERS :
PURSUANT TO THE ORDER OF THE NATIONAL LA-
BOR RELATIONS BOARD DATED THE ' DAY
OF 1941, BASED UPON AN AGREED SET-
TLEMENT STIPULATION DATED THE 16TH DAY OF
OCTOBER, 1941, MAGNOLIA PETROLEUM COMPANY
AGREES THAT IT WILL :
1. Refrain from
-(a) in any manner discouraging membership in the Oil Work-
ers International Union, Locals 243 and 229 , or any other labor
organization of its employees by discriminating in regard to their
hire or tenure of employment because of their membership in or
activities in behalf of any such labor organization;
(b) in any ' manner ' discriminating against any employee be-
cause he has filed charges or given testimony under the National
Labor Relations Act.
2. (a) Offer to reinstate W. T. Davenport to his former em-
ployment or substantially equivalent employment ; restore to
said W. T. Davenport all rights and privileges to which he was
entitled on the 16th day of April, 1938 , by virtue of his seniority
or otherwise , except for his insurance and annuities benefits.
(b) Offer to Lee Nelson a job in the common labor department
of the Beaumont Refinery at the Respondent 's rate of pay for
"common labor colored"; restore to the said Lee Nelson all rights
and privileges to which he was entitled on the 4th day of May,
1938, by virtue of his , seniority, or otherwise , except for insurance
and annuities benefits.
(c) Offer to A. B. Bernard a job in the common labor depart-
ment of the Beaumont Refinery at the Respondent 's rate of pay
for "common labor colored "; restore to the said A. B. Bernard
all rights and privileges to which he was entitled on the 22nd
day of January, 1938 , by virtue of his seniority or otherwise, ex-
cept for his insurance and annuities benefits.
(d) Offer employment to Guy West on what the Respondent
designates as its "temporary roll" at the Beaumont Refinery at
.the rate of pay'of a mechanical helper, and date his employment
and other rights and privileges as of September ,26, 1940.
MAGNOLIA PETROLEUM COMPANY 1155
(e) Offer employment to John Ezell on what , theRespondent
designates as its "temporary roll" at the Beaumont Refinery at
the rate of pay of a mechanical helper, and date his employment
and other rights and privileges as of September 26, 1940.
(f) Make whole A. J. Oliver, Louie Dean, Guy West, John
Ezell and John H. Ellison from September 26, 1940, being the date
of the alleged discriminatory refusal to rehire, and make whole
W. T. Davenport, Lee Nelson and A. B. Bernard, from the date
of the alleged discriminatory discharge, by paying to Edwin A.
Elliott, Regional Director of the National Labor Relations Board
for the Sixteenth Region, the sum of Fifty-Eight Hundred Dol-
lars ($5,800.00), to be distributed by him among the hereinabove
named men, the Respondent to make the checks payable to the
individuals named.
JOHN W. NEWTON,
Manager."
(h) Notify the Regional Director for the National Labor Relations
Board for the Sixteenth Region within ten days from the date of this
Order of the steps respondent has taken to comply herewith.
3. It is hereby further ordered that the allegations of the amended
complaint alleging violations of Section 8, subsection 3, of the Act
in the lay-off and/or discharge of the said A. J. Oliver, Louie Dean,
John H. Ellison, John Ezell and Guy West be and hereby are dismissed
with prejudice.
4. It is hereby further ordered that the allegations of the amended
complaint alleging violations of the Act concerning Burtus A. Boyette
be, and hereby are dismissed with prejudice. It is further ordered
that all other allegations of unfair labor practices in the amended
complaint not covered by this stipulation are hereby dismissed with
prejudice.