Naumkeag Steam Cotton Company

National Labor Relations Board - Board Decisions

Jul 8, 1939

13 N.L.R.B. 513 (N.L.R.B. 1939)

In the Matter of NAUMKEAG STEAM COTTON COMPANY and TEXTILE
WORKERS ORGANIZING COMMITTEE, LOCAL No. 74 OF THE COMMITTEE
FOR INDUSTRIAL ORGANIZATION
In the Matter of NAUMKEAG STEAM COTTON COMPANY and INDEPENDENT
SHEETING WORKERS OF AMERICA, IN BEHALF OF WILLIAM E. QUINN
Cases Nos. R-1295 and R-1396, respectively.-Decided July 8, 193[
Textile Manufacturing Industry-Investigation of Representatives: controversy
concerning representation of employees: controversy concerning the appropriate
unit ; rival organizations ; desire of employer and rival organizations for deter-
mination of appropriate unit by the Board-Unit Appropriate for Collective
Bargaining: production, maintenance, shipping room, stockroom, and watchmen
employees, excluding laboratory, office, clerical, and supervisory employees and
engineers, firemen, and truck men ; stipulation by rival organizations and Com-
pany as to classification of employees to be included, except as to watchmen
included over objection of the Company ; appropriate unit including above
classification of employees in two plants engaged in one continuous processing
operation ; organization of business, similarity of wage scales, central control of
labor, and personnel policies ; history of collective bargaining relations with
employer-Election Ordered: opportunity extended for Union requesting certifica-
tion only and objecting to election to withdraw name from ballot.
Mr. Edward Schneider, for the Board.
Mr. Henry R. Guild, of Boston, Mass., for the Company.
Mr. Samuel E. Angoff, of Boston, Mass., for Local 74.
Mr. Louis F. O'Keefe, of Peabody, Mass., for the Independent.
Mr. Ralph S. Rice, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On January 18, 1939, Textile Workers Organizing Committee, Local
No. 74 of the C. I. 0.,1 herein called Local 74, filed with the Regional
Director for the First Region (Boston, Massachusetts) a petition
alleging that a question affecting commerce had arisen concerning the
'The petition as originally filed was signed "Textile Workers Organizing Committee
(C. I. 0.)." It was, however, amended at the hearing so as to substitute "Textile'Workers
Organizing Committee , Local No. 74 of the Committee for Industrial Organization" as the
petitioner.
13 N. L. R. B., No. 59.
513
514 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
representation of the employees of Naumkeag Steam Cotton Corn-
pany, Salem and Peabody, Massachusetts, herein called the Company,
and requesting an investigation and certification of representatives
pursuant to Section 9 (c) of the National Labor Relations Act, 49
Stat. 449, herein called the Act.
On January 23, 1939, Independent Sheeting Workers of America,
herein called the Independent, filed with the Regional Director a
petition alleging that a question affecting commerce had arisen con-
cerning the representation of the employees of the Company and
requesting an investigation and certification of representatives pur-
suant to Section 9 (c) of the National Labor Relations Act.
On January 31, 1939, the National Labor Relations Board, heroin
called 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, ordered investigations with re-
spect to the petitions filed by Local 74 and by the Independent, and
authorized the Regional Director to conduct them and to provide for
an appropriate hearing upon due notice, and, acting pursuant to
Article III, Section 10 (c) (2), of said Rules and Regulations, further
ordered that the two cases be consolidated for the purposes of hearing
and for all other purposes.,
On February 4, 1939, the Regional Director issued a notice of hear-
ing and thereafter a notice of postponement of hearing, copies of
which were duly served upon the Company, upon the Textile Work-
ers Organizing Committee, and upon the Independent.
Pursuant to the notices, a hearing was held on February 16, 17, 20,
and 21, 1939, at Salem, Massachusetts, before Peter F. Ward, the
Trial Examiner duly designated by the Board. The Board, the Com-
pany, the Independent, and Textile Workers Organizing Committee
were represented by counsel and participated in the hearing. Full op-
portunity to be heard, to examine and cross-examine witnesses, and to
introduce evidence bearing on the issues was afforded all parties.
During the course of the hearing the Trial Examiner made several
rulings on motions and on objections 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
I. THE BUSINESS OF THE COMPANY
Naurnkeag Steam Cotton Company, a Massachusetts corporation
having its main office and principal place of business at Salem, Massa-
NAUMKEAG STEAM COTTON COMPANY 515
chusetts, is engaged in the manufacture, sale, and distribution of tex-
tile products, principally sheets and pillow cases. It maintains a mill
at Salem, Massachusetts, and a bleachery at Peabody, Massachusetts,
the distance from the mill to the bleachery being slightly more than
3 miles. The mill and the bleachery are operated as one manufactur-
ing unit, the raw cotton being woven into unfinished cloth or "grey
goods" at the mill and thereafter sent to the bleachery where the cloth
is further processed and made into the finished product. Only about
2 per cent of the production at the mill consists of work which does
not go to the bleachery to be finished and only about 5 to 7 per cent
of the work done at the bleachery involves materials not obtained
from the mill. The respondent also maintains sales offices through-
out the United States.
For the fiscal year ending November 30, 1938, the Company pur-
chased for use at its mill and bleachery raw materials valued at ap-
proximately $2,241,000. Approximately 76 per cent of such raw ma-
terials were obtained from outside the State of Massachusetts. Dur-
ing the same period, the Company sold approximately $6,215,000
worth of finished products. Approximately 85 per cent of such prod-
ucts were shipped outside the State of Massachusetts.
II. THE ORGANIZATIONS INVOLVED
Local No. 74, Textile Workers Organizing Committee, is a labor
organization affiliated with the Committee for Industrial Organiza-
tion, admitting to its membership all production, shipping, mainte-
nance, and stockroom employees, including watchmen, of the Company
at its bleachery.
Independent Sheeting Workers of America is an unaffiliated labor
organization. It admits to membership all production, shipping,
maintenance, and stockroom employees, including watchmen, of the
Company both at the mill and the bleachery.
III. THE HISTORY OF LABOR ACTIVITY AMONG EMPLOYEES OF THE COMPANY
In 1916, the loom fixers at the Salem mill formed a labor organiza-
tion known as the Salem Loom Fixers Union which subsequently be-
came known as Salem Loom Fixers Local No. 30. Between 1916 and
1919, two other labor organizations, Salem Textile Workers Local No.
36 and United Textile Workers No. 448, were organized. The latter
two organizations confined their membership to mill employees. Fol-
lowing a strike in 1919, the Salem Textile Workers Local No. 36 and
the United Textile Workers No. 448 amalgamated into one union desig-
nated as National Amalgamation of Textile Operators Local 33.
This organization which subsequently changed its name to American
516 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Federation of Textile Operators Local 33 and in 1924 became United
Textile Workers Local 33 dealt with the Company both for the mill
and for the bleachery employees. In 1927, United Textile Workers
Local 33 made a contract with the Company applicable to the mil] and
the bleachery employees, except the loom fixers who continued to be
represented by Salem Loom Fixers Local No. 30.
In 1933, the Company sought to put into effect at the mill and the
bleachery a "joint research plan" which involved an increase in pro-
duction by the employees. The Company had in 1930 put such plan
in effect at the mill, but had abolished the same in 1932 because of the
opposition of the employees to it. Although officials of United Textile
Workers Local 33 agreed to such plan in 1933, the mill and bleachery
employees opposed it and went on strike. During the strike which
lasted 11 weeks, the employees repudiated the union officials and ap-
pointed their own strike committee. The strike was settled as a result
of negotiations between such committee and the Company. About
this time, the strike committee and other employees formed the Inde-
pendent Sheeting Workers of America which admits to membership
employees both of the mill and the bleachery. United Textile Workers
of America Local 33 apparently was inactive following the strike
and the organization of the Independent.
Although the record does not disclose when it was organized, United
Textile Workers Local 2476 apparently had some membership among
the bleachery workers beginning about 1933 and dealt with the 1om-
pany relative to grievances of its members until early 1937.
On October 22, 1935, the Independent and the Company entered into
a contract which contained provisions relative to conditions of em-
ployment and in which the Company agreed to deal with the Inde-
pendent "for the purpose of collective bargaining as long as they
represent a majority of the workers and for the purpose of handling
grievances of its members at all times, excepting employees who are
members of the United Textile Workers of America . . . " The con-
tract provided that it should remain in full force and effect unless
terminated by 60 days' written notice given by either party. Pursuant
to the contract, the Independent dealt with the Company for employees
both at the mill and at the bleachery. In 1936 the members of Salem
Loom Fixers Local No. 33 affiliated with the Independent and the
Independent thereafter handled grievances on behalf of such
employees also.
During the early part of 1937 , Textile Workers Organizing Com-
mittee, Local 74 , was organized and admitted to membership employees
of the Company at the bleachery. Thereafter , Local 74 dealt with
the Company with regard to grievances of its members. In November
1938, officers of Local 74 "as officers and members of Local 74, T. W.
NAUMKEAG STEAM COTTON COMPANY 517
O. C., in our own behalf, and in behalf of all employees of the mill
and the bleachery" requested of the Company a wage increase of 15.
per cent for all employees. A representative of Local 74 testified
that Local 74 did not have any members in the mill at the time of
such request and that the request was made as a part of a Nation-wide
campaign by the Committee for Industrial Organization for higher
wages in the textile industry.
On January 5 or 6, 1939, a dispute arose between the Company and
Local 74 regarding the procedure adopted by the Company relative
to seniority of employees in one of the departments at the bleachery.
The Company took the position that its policy relative to seniority
was in accordance with the terms of the contract made with the Inde-
pendent on October 22, 1935, and refused to negotiate with Local 74
relative to this matter. Twenty members of Local 74 thereupon re-
fused to work and were discharged. Following the discharges, picket
lines were established by Local 74 and on January 9, 1939, only about
105 of the approximately 900 bleachery employees went to work. The
strike was, however, settled on January 9, 1939, upon the basis of ail
agreement reached at a meeting attended by representatives of the
Company, Local 74, and the Board. Under the terms of the agreement,
the Company agreed to reinstate all employees at the bleachery with-
out loss of seniority or any discrimination and, pending a determina-
tion of the question concerning representation at the bleachery, to
deal with the T. W. O. C. relative to grievances of its members.
During January 1939, Textile Workers Organizing Committee,
Local 292, was chartered. Daniel J. Gallagher, a field representative
of the T. W. O. C. testified at the hearing that Local 292 limited its
membership to employees at the mill and that it had a substantial
membership among such employees.
IV. THE QUESTION CONCERNING REPRESENTATION
The Independent has petitioned the Board for certification as the
exclusive bargaining representative of employees of the Company
at the mill and at the bleachery. Local 74 has petitioned the Board
for certification as the exclusive representative of the bleachery em-
ployees. At the hearing, the Company indicated its desire that the
Board determine the question of the appropriate bargaining unit and
the proper bargaining agency representative.
We have noted in Section III above that the strike in January 1939,
was settled on the basis of a temporary arrangement pending a deter-
mination by the Board of the question of the appropriate bargaining
representative of the employees at the bleachery.
We find that a question has arisen concerning the representation of
employees of the Company.
187930 -39-vol 13-34
.5 18 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
V. 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 com-
merce and the free flow of commerce.
VI. THE APPROPRIATE UNIT
Local 74 and the Independent stipulated at the hearing that "the
classification of employees in any unit that the Board shall consider to
be the appropriate unit, shall be the production, maintenance, ship-
ping room and stockroom employees, and the watchmen, exclusive of
,office and clerical employees, engineers and firemen and laboratory
-employees, truck men, executive employees and supervisory employees
with the rank of third hand or higher." The Independent seeks a
bargaining unit composed of all such employees both at the mill and
at the bleachery. Local 74 asks for a separate unit limited to all such
employees at the bleachery.
The Company takes the position that a single bargaining unit com-
posed of employees both at the mill and at the bleachery is appropriate.
It would exclude the watchmen from the unit in addition to the other
employees which the unions desire to exclude on the ground that the
watchmen occupy a confidential and fiduciary relationship to the
management.
The mill and the bleachery are, as noted above, operated as one
manufacturing unit. A stoppage of work at either the mill or the
bleachery would result in a stoppage of work at the other plant. The
average wages paid employees at the mill and at the bleachery are
approximately the same and the general working conditions and prob-
lems of employees at the two plants are similar. The general labor
policy of the Company both for the employees at the mill and at the
bleachery is determined upon at the main office of the Company at
Salem. In the past, the Company has applied one general labor policy
for all its employees. During seasonal slack periods, the mill and the
bleachery are both shut down. Although the personnel officers at the
respective plants hire and discharge employees, any action taken by
such personnel officers is subject to review by the general manager
of the Company. Separate laboratories are maintained at both plants,
but the studies made at the bleachery laboratory concern the operations
of the mill as well as the operations of the bleachery. Although there
is little or no exchange of employees between the mill and the bleach-
NAUMKEAG STEAM COTTON COMPANY 519
ery, the nature of the work at the two plants is such that exchange of
some of the unskilled employees could be made. The employees at
the mill are principally of French and Polish extraction and the em-
ployees at the bleachery are chiefly of Irish and American extraction.
There is, however, no definite demarcation as regards nationality in
either plant. Most of the employees live in the towns where their
respective plants are located although many of them work in one town
and live in the other town or nearby towns.
We have discussed in Section III above the history of labor activity
among the employees of the Company. The facts there presented
show that, although labor organizations limiting their membership to
employees at the mill or the bleachery have at various times handled
grievances on behalf of their members, there has been a substantial
history of collective bargaining for the mill and bleachery employees
as one unit. The contract made by United Textile Workers Local 33
and the Company in 1927 and the contract made by the Independent
and the Company in 1935 were both upon the basis of a unit composed
both of bleachery and mill employees.
Under all the circumstances, we are of the opinion that a single
unit composed of employees of the Company both at the mill and the
bleachery is appropriate and that which will most effectively insure to
the employees of the Company the full benefit of their right to self-
organization and collective bargaining and otherwise effectuate the
policies of the Act.2
There remains for consideration the question as to whether the
watchmen are to be excluded from the unit. The watchmen are re-
sponsible for the protection of the property of the Company. We
have noted above that the Company desires the exclusion of the watch-
men from the unit whereas Local 74 and the Independent desire their
inclusion. Although the position of the watchmen is such as to iden-
tify them somewhat more closely with the management than other em-
ployees, we are of the opinion that they should be included in the unit
where, as here, the only labor organizations involved desire their
inclusion.3
2 See Matter of Standard Oil Company of California and Oil Workers International
Union, Local 299, 5 N. L. R. B. 750; Matter of C. A. Lund Company and Novelty Workers
Union, Local 1866 ( A. F of L ) successor, 6 N L R . B. 423; Matter of American Steel 6
Wire Company and Steel and Wire Workers Pi otective Association , 5 N L. It B 871,
Matter of Pittsburgh Plate Glass Company and Federation of Flat Glass Woikeis of
America, affiliated with C 1 0, 10 N. L R B 1111.
S See Matter of Luckenbach Steamship Company , Inc, etc and Gatemen, Watchmen
and Miscellaneous Waterfront Workers Union , Local 38-1211; International Longshoremen's
Association, 2 N L It. B. 181 , Matter of Willys Ovemland Motors, Inc and International
Union, United Automobile Workers of America, Local No 12 , 9 N L R B 921; Matter of
Pacific Mills, Cocheco Division and Dover Independent Textile Workers Union, 10 N L
R B 26; Matter of American-Hawaiian Steamship Company, a corpoatioa and Gatemen,
Watchmen and Miscellaneous Waterfront Workers Union, Local 38-1211, International
Longshoremen 's Association, 10 N. L R B. 1355
520 DECISIONS OF NATIONAL LABOR RELATIONS BOARD,
We find that all the production, maintenance , shipping room and
stockroom employees, and watchmen of the Company at its mill in_
Salem and at its bleachery in Peabody, exclusive of office and cler-
ical employees , engineers , firemen , laboratory employees, truckmen,
executive employees , and supervisory employees with the rank of-
third hand or higher, constitute a single unit appropriate for the
purpose of collective bargaining and that such unit will insure to,
employees of the Company the full benefit of their right to self-
organization and collective bargaining and otherwise effectuate the-
policies of the Act.
VII. THE DETERMINATION OF REPRESENTATIVES
There was introduced into evidence at the hearing a list compiledt
by the Company of the employees at the mill and the bleachery.
The manager of the Company testified that the list designated those-
employees of the Company within the unit which we have found to.
be appropriate. The attorney for the Company thereafter stated
in effect that the list covered production and maintenance employees-
generally, excluding supervisory , clerical , and executive employees,.
but that the list might include some employees not within the unit
we have found to be appropriate . In any event it appears clearly
that the list designates substantially only those employees who are
in the appropriate unit and includes all of such employees . The list
contains the names of 3,062 persons, including 2,090 persons who.
work at the mill and 972 persons who work at the bleachery.
Local 74 had available for inspection at the hearing a group of
334 cards signed prior to January 9, 1939 (most of these cards were
signed in October, November , or December , 1938 ) designating the
Textile Workers Organizing Committee as bargaining representa-
tive; a group of 285 such cards signed subsequent to January 9,
1939; and a group of 36 such cards , some of which were signed prior
to January 9, 1939, and some of which were signed subsequent to.
such date. All the aforesaid cards were signed by employees at the
bleachery . Five witnesses for Local 74 testified that they had wit-
nessed, respectively , the signing of 16, 23, 34 , 243, and 257 of such,
cards. There was submitted in evidence by Local 74 three lists of
names taken , respectively , from the three groups of T. W. O. C. ap-
plication cards. A representative of Local 74 testified that Textile-
Workers Organizing Committee, Local 292 , had a substantial mem=
bership among the mill employees.
The Independent had available at the hearing for inspection 2,167"
membership application cards containing the names of 1,637 mill
employees and 530 bleachery employees. Although Local 74 giies-
NAUMKEAG STEAM COTTON COMPANY 521
tioned the authenticity of the signatures on the cards presented by
the Independent, the only proof offered as to the authenticity of the
signatures was the testimony of a representative of the Independent
to the effect that he had witnessed the signing of approximately 100
of the cards. The majority of the cards of the Independent were
undated. The secretary of the Independent testified that all persons
whose names were listed on the application cards had at some time
paid dues to the Independent. No dues-record cards were available
for inspection or were submitted in evidence and there is no basis
in the record for ascertaining when the employees whose names
appeared on the membership application list submitted by the Inde-
pendent last paid dues to that organization.
We conclude that doubt exists as to the desires of the majority
of the employees of the Company as regards their representative
for the purposes of collective bargaining and that the question which
has arisen concerning representation can best be resolved by an
election by secret ballot.
It was stipulated at the hearing that if an election was directed
by the Board, the persons eligible to participate therein should be
the employees in the appropriate unit at the time of the hearing who
had worked a total of 30 working days after September 1, 1938,
including regular employees who, except for illness or because of an
accident which temporarily disabled them, would have worked 30
working days after September 1, 1938, but excluding persons who
had since quit or been discharged for cause. There was introduced
in evidence at the hearing as Board Exhibit No. 12 a list of employees
compiled by the Company who purportedly fall within the above
eligibility requirements, except that it apparently does not include
the names of regular employees who had not worked 30 working-
days since September 1, 1938, but who would have done so except for
illness or because of an accident which temporarily disabled them.
As heretofore noted, the list may contain the names of some employ-
ees not within the appropriate unit. Local 74 expressly reserved all
rights with respect to the accuracy of the list of employees compiled
by the Company.
We have noted above that Local 74 sought a bargaining unit lim-
ited to employees of the Company at the bleachery and doubt exists
as to the desire of Local 74 to participate in the election on the basis
of the unit which we have found to be appropriate. On the other
hand, the Textile Workers Organizing Committee, through Locals 74
and 292, claims to represent a majority of the employees at the
bleachery and a substantial number of employees at the mill. We
shall place the name of the Textile Workers Organizing Committee
522 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
on the ballot, but shall amend the Direction of Election to delete the
name of that organization from the ballot if advised within 10^
days from the issuance of this Direction of Election of the desire
of the T. W. O. C. for such amendment.
On 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 Naumkeag Steam Cotton Company, Salem,
and Peabody, Massachusetts, within the meaning of Section 9 (c)
and Section 2 (6) and (7) of the National Labor Relations Act.
2. The production, maintenance, shipping room and stockroom,
employees, and watchmen of the Company at its mill in Salem and
at its bleachery in Peabody, exclusive of office and clerical employees,
engineers, firemen, laboratory employees, truckmen, executive em-
ployees and supervisory employees with the rank of third hand or-
higher, constitute a unit appropriate for the purposes of collective"
bargaining within the meaning of Section 9 (b) of the National!
Labor Relations Act.
DIRECTION OF ELECTION
By virtue of and pursuant to the powers 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 1,.
as amended, it is hereby
DIRECTED that, as part of the investigation authorized by the,
Board to ascertain • representatives for the purposes of collec-
tive bargaining with Naumkeag Steam Cotton Company, Salem and
Peabody, Massachusetts, an election by secret ballot shall be con-
ducted within twenty (20) days from the date of this Direction, under-
the direction and supervision of the Regional Director for the First
Region, acting in this matter as agent for the National Labor Rela-
tions Board, and subject to Article III, Section 9, of said Rules and
Regulations, among all the production, maintenance, shipping room,
and stockroom employees, and watchmen of the Company at its mill
in Salem and at its bleachery in Peabody, who were employed by the
Company at the time of the hearing beginning February 16, 1939,.
and who had worked a total of 30 working days after September 1,
1938, including, however, regular employees who except for illness-
or because of an accident which temporarily disabled them woul'
NAUMKEAG STEAM COTTON COMPANY 523:
have worked 30 working days after September 1, 1938, but excluding
persons who had since February 16, 1939, quit or been discharged
for cause and excluding also office and clerical employees,, engineers,,
firemen, laboratory employees, truckmen, executive employees, and
supervisory employees with the rank of third hand or higher, to,
determine whether they desire to be represented by Independent
Sheeting Workers of America or by Textile Workers Organizing
Committee, affiliated with the Committee for Industrial Organization,
for the purposes of collective bargaining, or by neither.
MR. WILLIAM M. LEISERSON took 110 part in the consideration of the,
above Decision and Direction of Election.