Montgomery Ward & Co.

National Labor Relations Board - Board Decisions

Jun 24, 1940

24 N.L.R.B. 967 (N.L.R.B. 1940)

In the Matter of MONTGOMERY WARD & COMPANY and WAREHOUSE-
MEN'S UNION, LOCAL No., 26, AFFILIATED WITH I. B. OF T. C. S. & H.
OF A., A. F. or L.
Case No. R' 1863.-Decided June '244, 1940
General Merchandising Mail Order Business-Investigation of Representa-
tives: controversy concerning representation of employees : refusal of Company
to recognize Union until certified by Board-Unit Appropriate for Collective
Bargaining: all employees engaged in warehouse work excluding supervisory
employees-Election Ordered
Mr. F. D. Roth, of Oakland, Calif., and Mr. John- A. Barr, of
Chicago, Ill., for the Company.
Green, Bosen cC Lan.dye, by Mr. James Landye, of Portland, Oreg.,
for the Union.
Miss Ann Landy, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On `April 5, 1940, Warehousemen's Union, Local No. 26, affiliated
with the International Brotherhood of Teamsters, Chauffeurs, Stable-
men &-Helpers of America,' herein called the Union, filed with the
Regional Director for the Nineteenth Region (Seattle, Washington)
a petition alleging that a question affecting commerce had arisen
concerning the representation of employees of Montgomery Ward &
Company, herein called the Company, and requesting an investiga-
tion and certification of representatives pursuant to Section 9 (c) of
the National Labor Relations Act, 49.Stat. 449, herein called the Act.
On April 27, 1940, the National Labor Relations Board, herein
called the Board, acting pursuant to Section 9 (c) of the Act and
Aitie'le III, Section 3, of National Labor Relations Board Rules and
Regulations-Series 2, as amended, ordered an investigation and au-
thorized the :Regional Director to conduct it and to provide for an
Referred to in the order ,directing investigation as Warehousemen's Union, Local.
No. 26, affiliated with I. B. of'T . C. S. & H. of A., A. F. of L.
24 N. L. R. B., No. 100. 967
968 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
appropriate hearing upon due notice. On May. 6, 1940, the Regional
Director issued a notice of hearing, copies of which were duly served
upon the Company and the Union. On May 9, 1940, the Regional
Director issued a notice of postponement of hearing, copies of which
were served upon the same parties. Pursuant to the notice of hear-
ing and notice of postponement, a hearing was held on May 27 and
28, 1940, at Portland, Oregon,.before Thomas B. Graham, the Trial
Examiner duly designated by the Board. - The Company and the
Union were represented by counsel, participated in the hearing, and
were afforded full opportunity to be heard, to examine and cross-
examine witnesses, and to introduce evidence bearing upon the issues.
During the course of the hearing the Trial Examiner made several
rulings on motions and on objection's to the admission. of evidence.
The Board has reviewed the rulings of the Trial Examiner and finds
that no prejudicial errors were committed. The rulings are hereby
affirmed.
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
1. THE BUSINESS OF THE COMPANY
Montgomery Ward & Company, an Illinois corporation having its
principal executive offices in Chicago, Illinois, is engaged in the dis-
tribution of merchandise through the media of mail order houses and
retail stores. The Company owns, operates, and maintains 9 mail
order houses, 5 mail order warehouses, 260 order offices, and 625 retail'
stores throughout the United States. About 20,000,000 customers
throughout the United States and in many foreign. countries are,
served by the Company. The Company's net sales for 1939 amounted
to $474,882,032.
This proceeding is concerned solely with employees of the Company
in Portland, Oregon, where the . Company operates a , mail order
house, a retail store, and a separate warehouse. Approximately 90
per cent of the merchandise distributed by the mail order house and
the store is shipped to Portland from points outside the State of
Oregon. ' About 60 per cent of the 'customers. of the mail order house
live outside the State of Oregon.
Although located in the same building, the mail order house and the
retail store are operated as separate units. On May 23, 1940, the
mail order house employed over 1200 workers, the retail store 175,
and the warehouse 27. The Company denies that the Board had
jurisdiction over employees of the retail store.
MONTGOMERY WARD & COMPANY 969
II. THE ORGANIZATION INVOLVED
Warehousemen's Union, Local No. 26, affiliated with the Interna-
tional Brotherhood of Teamsters, Chauffeurs, Stablemen & Helpers.
of. America, is a labor organization affiliated with the American Fed-
eration of Labor, admitting to membership employees of the Company
engaged in warehouse work.
III. THE QUESTION CONCERNING REPRESENTATION
Shortly before the hearing the Union requested recognition as bar-
gaining representative for the employees in ' the warehouse. The
Company took the position that it could not recognize the Union as
bargaining agent until the question of proper collective bargaining
unit was determined by the Board. At the hearing the Company
and the Union took conflicting positions regarding the appropriate
unit. We find that a question has arisen concerning the representa-
tion of employees of the Company.
IV. THE EFFECT OF THE QUESTION CONCERNING REPRESENTATION UPON
COMMERCE
We find that the question concerning representation. which has
arisen, occurring in connection with the operations of-the Company
described in Section I above, has a close, intimate, and substantial
relation.to trade, traffic, and commerce among the several States and
tends to lead to labor' disputes burdening and obstructing commerce
and the free flow of commerce.
V. THE APPROPRIATE UNIT
In its petition the Union alleged that employees at the Company's
warehouse engaged in warehouse work constitute an appropriate unit.
The Union defines as warehouse workers employees who handle mer-
chandise. At the hearing the Union amended its petition and alleged
that all warehouse workers at the mail order house as well as the
warehouse should :be included in the .unit.
The Company requests a unit comprising all the employees of the
mail order house and the warehouse, excluding only five persons en-
gaged, at the warehouse, in receiving and handling merchandise con-
signed to the retail store. Neither the Union nor the Company desire
the inclusion of employees at the store itself..
V. H. Brooks, superintendent of operations at the mail order house,
testified at the hearing regarding whether or not the employees in
various departments and work classifications handle merchandise.
970 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Counsel for the Union, on'the basis of this. testimony, summarized as
follows the classifications claimed by the Union as falling within the
appropriate unit : all merchandise checkers in the shipping depart.
ment; all receiving clerks in the receiving department; all employees
on the freight elevators; all sorters, completers, and packers, but not
billers, in the packing and billing department; all employees of the
package opening department, except authenticators;. all employees of
the central repair unit, except those engaged in office work; all em-
ployees in the jewelry repair unit engaged in handling merchandise,
except watchmakers; all employees in the merchandise division, except
timekeepers and employees engaged in taking orders; all employees
in the supply and multigra.ph department who fill in and stock sup-
plies; all employees who handle merchandise in the operating audit-
ing, stock control, and catalog service departments; all porters; and
all employees at the warehouse.
- The employees. at the mail order house whom the Union would
exclude from the unit consist primarily' of clerical workers who are
ineligible for membership in the Union but are eligible for member-
ship in the Office Employees Union, a labor organization which, like
the Union, is affiliated with the American Federation of Labor. The
Office Employees Union is engaged in organizing them.
The Company claims that the close. functional coherence and mutual
interdependence of the operations of the mail order house necessi-
tates that all its employees be included in the same unit. In support
of this claim V. H. Brooks testified generally, that employees who
handle merchandise are frequently transferred to positions involving
clerical work, and vice versa, but offered no specific evidence as to
the number of employees affected by such transfers. The Company
also offered testimony to the effect that its mail order house employees
in other cities have been organized in plant-wide units. The Com-
pany has not entered into collective bargaining agreement with any
labor organization in its mail order houses.
Under the circumstances of this case we find the unit requested
by the Union to be appropriate. Organization of the employees has
proceeded upon the basis of warehouse workers' unit, and the Union
is the only labor organization existing among the employees involved.
The Company further contends that five warehouse employees who
are on the, retail store's separate pay roll should be excluded from
the unit on the ground that the Board has no jurisdiction over the
store. It is not contended that the work of these five employees
differs from that of the other warehouse employees in'any way except
that they handle goods.consigned to the store rather than. to the mail
order house. In another proceeding the Board had assumed juris-
MONTGOMERY WARD & COMPANY 971
diction over the employees of the store 2 and there appears to be no
other reason for excluding these five employees from the unit. We
shall include them. 'In accordance with our usual custom we shall
exclude supervisory employees from the unit.
We accordingly find that the following employees of the Company
employed at its Portland mail order house and warehouse constitute
a unit appropriate for the purposes of collective bargaining : all
merchandise checkers in the shipping department; all' receiving clerks
in the receiving department; all employees on the freight elevators;
all sorters; completers, and packers; but. not billers, in.,the packing
and billing department; all employees of the package opening de-
partment, except authenticators ; all employees of the central repair
unit; except those engaged in office work; all employees in the jewelry
repair' unit engaged in handling merchandise, except watchmakers;
all employees in the merchandise division, except timekeepers and
employees engaged in taking orders; all employees in the supply and
multigraph department who fill in and stock supplies; all employees
who handle merchandise in the operating auditing, stock control, and
catalog service departments; all porters; and,all employees at the
warehouse, excluding supervisory employees.
VI. THE DETERMINATION OF REPRESENTATIVES
At the hearing the Union and the Company stipulated that a num=
ber of the employees of the Company in, the unit claimed by the
Union have signed application-cards for membership in the Union.
We find that the question concerning representation which has arisen
can 'best be resolved by an election by secret ballot. The employees
of the Company within the appropriate unit who were employed by
the Company during the pay-roll period immediately preceding the
date of our Direction of Election herein, including those employees
who did not work during such pay-roll period because they were ill
or on vacation and employees "who were then or have since been tem-
porarily laid off, but excluding those who have since quit or been
discharged for cause, shall be eligible to vote.
Upon the basis of the above findings of fact and upon the entire
record in the case, the Board makes. the following.:
CONCLUSIONS OF LAW '
1. A question affecting commerce has arisen concerning the repre-
sentation of employees of Montgomery Ward & Company, Portland;
-In the Matter of Montgomery Ward & Company and Reuben Litzenberger et al.;
9 N. L. ,R . B. 538, enfd Montgomery Ward & Company V. National Labor Relations Board,
107 F. (2d) 555 (C. C. A. 7).
972. DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Oregon, within the meaning of Section 9 (c) and Section 2 (6) and
(7) of the National Labor Relations Act.
2. All merchandise checkers in the shipping department; all. re-
ceiving clerks in the receiving department; all employees on the
freight elevators ; all sorters, completers, and packers, but not billers,
in the packing and billing department; all employees of the package
opening department, except authenticators; all employees of the cen-
tral repair unit, except those engaged in office work; all employees in
the jewelry repair unit engaged in handling merchandise, except
watchmakers; all employees in the merchandise division, except time-
keepers and employees engaged in taking orders; all employees in the
supply and multigraph department who fill in and stock supplies; all
employees who handle merchandise in the operating auditing, stock
control, and catalog service departments; all porters; and all em-
ployees at the warehouse; excluding supervisory employees, constitute
a unit appropriate for the purposes.of collective bargaining, within
the meaning, of Section 9 (b) of the Act.
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 Rela-
tions Act, 49 Stat. 449, and pursuant to Article III, Section 8, of
National Labor Relations Board Rules and Regulations-Series 2,
as amended, it is hereby.
DIRECTED that, as part of the investigation authorized by the Board
to ascertain representatives for the purposes of collective bargaining
with Montgomery Ward & Company, Portland, Oregon, 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 of Election
under the direction and supervision of the Regional Director for the
Nineteenth Region, acting in this matter as agent for the National
Labor Relations Board and subject to Article III, Section 9, of said
Rules and Regulations, among all merchandise checkers in the ship-
ping department; all receiving clerks in the receiving department; all
employees on the freight elevators; all sorters, completers, and pack-
ers, but not billers, in the packing and billing department; all
employees of the package opening department, except authenticators;
all employees of the central repair unit, except those engaged in office
work; all. employees in the jewelry repair. unit, engaged in handling
merchandise, except watchmakers; all employees in the merchandise
division, except timekeepers. and employees engaged in taking orders;
all employees in the supply and multigraph department who fill in
and stock supplies; all• employees who handle. merchandise in the
MONTGOMERY WARD & COMPANY 973
operating auditing, stock control, and catalog service departments;
all porters; and all employees at the warehouse; who were employed'
by the Company at its Portland, Oregon, mail order house and ware-
house during the pay-roll period immediately preceding the date of
this Direction of, Election, including those employees who, did not
work during 'such pay-roll period, because they were ill or on vaca-
tion, and employees who were then or have since been temporarily
laid off, but excluding supervisory employees and employees who have
since quit or been discharged for cause, to determine whether or not
said employees desire to be represented by Warehousemen's Union,
Local No. 26, affiliated with the International Brotherhood of Team-
sters, Chauffeurs, Stablemen & Helpers of America, affiliated with
the American Federation of Labor, for the purposes of collective
bargaining.
'MR. EDWIN S. SMITH took no part in the consideration of the- above
Decision and Direction of Election. '