Owens-Illinois Pacific Coast Co.

National Labor Relations Board - Board Decisions

Nov 15, 1941

36 N.L.R.B. 990 (N.L.R.B. 1941)

In the Matter of OWENS-ILLINOIS PACIFIC COAST Co. and INTERNA-
TIONAL LONGSHOREMEN'S AND WAREHOUSEMEN'S UNION, LOCAL 6,
C. I. O.
In the Matter Of OWENS-ILLINOIS PACIFIC COAST Co. and INTERNA-
TIONAL LONGSHOREMEN'S AND WAREHOUSEMEN'S UNION, LOCAL 6,
C. I. O.
Cases Nos. R-3194 and R-3195, respectively-Decided November 15,
19411
Jurisdiction : glass container manufacturing industry.
Investigation and Certification of Representatives
In furtherance of the purposes of the Act to attain stabilized labor rela-
tions in industry through collective bargaining agreements held closed-shop
contracts for a 2-year period constitute a bar to an investigation and
certification of representatives despite a change of affiliation by a sub-
stantial number of members of the contracting unions to the petitioning
union, after contracts had been in effect for more than one year, and
pending modification pursuant to their terms of wage and- vacation provi-
sions of the outstanding contracts.
Practice and Procedure : no question concerning representation exists; petition
dismissed without prejudice to renewal at reasonable time prior to expiration
of outstanding contracts.
Mr. Jesse H. Steinhart and Mr. B. J. Feigenbaum, of San Fran-
cisco, Calif., for the Company.
Gladetein, Grossman, Margolis tC Sawyer, by Mr. Bertram Edises,
of San Francisco, Calif., for the I. L. W. U.
Mr. James F. Galliamo, of Oakland, Calif., for the G. B. B. A. ahd
Locals 140 and 141, thereof.
Mr. Gilbert V. Rosenberg, of counsel to the Board.
DECISION
AND
ORDER
STATEMENT OF THE CASE
On September 24 and October 3, 1941, respectively, International
Longshoremen's and Warehousemen's Union, Local 6,1 herein called
'Although one of the petitions designated the petitioner as "Local 1-6," the record
discloses that Local 6 is the preferable designation.
36 N. L. R. B'., No. 204.
990
OWENSIILLINOIS PACIFIC COAST CO. 991
the I . L. W. U., filed with the Regional Director for the Twentieth
Region (San Francisco , California ) petitions alleging that questions
affecting commerce had arisen concerning the representation of em-
ployees of Owens-Illinois Pacific Coast Co., herein called the Com-
pany, at its Oakland and San Francisco , California , plants, and
requesting an investigation and certification of representatives, pur-
suant to Section 9 (c) of the National Labor Relations Act, 49"Stat.
449, herein called the Act.
On October 13, 1941 , the National Labor Relations Board, herein
called the Board, acting pursuant to Section 9 (c) of the Act and
Article III, Section 3 and Section 10 (c) (2 ), of National Labor
Relations Board Rules and Regulations-Series 2, as amended,
ordered an investigation and authorized the Regional Director to
conduct it and to provide for an appropriate hearing on due notice
and further ordered that the cases be consolidated.
On October 14, 1941, the Regional Director issued a notice of hear-
ing, copies of which were duly served upon the Company, the
I. L. W. U., and Glass Bottle Blowers Association, herein called the
G. B. B. A., a labor organization claiming to represent employees
directly affected by the investigation . Pursuant to notice, a hearing
was held on October 20 , 21, and 22, 1941 , at San Francisco , Califor-
nia, before John Paul Jennings, the Trial Examiner duly designated
by the Chief Trial Examiner. The Company, the I. L. W. U., the
G. B. B.-A., and its Locals 140 and 141, were represented by counsel
and participated in the hearing . Full opportunity to be heard, to
examine and cross-examine witnesses , and to introduce evidence bear-
ing on the issues was afforded all parties . During the course of the
hearing, the Trial Examiner made a number of rulings on motions
and on objections to the admission of evidence . The Board has
reviewed all the rulings of the Trial Examiner and finds that no
,,prejudicial errors were committed . The rulings are hereby affirmed.
The Company, the I. L.. W. U., and the G. B. B. A. filed briefs
with the Board which it has considered.
Upon the entire record in the case the Board makes the following :
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY
Owens-Illinois Pacific Coast Co., a Delaware corporation, is- a
wholly owned subsidiary of Owens-Illinois Glass Co., an Ohio cor-
poration . The Company is engaged in the manufacture and sale of
glass containers , caps, enclosures for glass containers , and corrugated
paper boxes at plants located at Oakland, San Francisco, and Vernon,
California. This proceeding involves approximately 400 employees
at the Oakland and San Francisco plants. During 1940 the Com-
992 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
pany purchased raw materials for its, Oakland and San Francisco
plants valued at more than $2,000,000, of which approximately 50
per cent was received from points outside the State of California.
During the same period the Company sold products valued at more
than $2,000,000, of which approximately 30 per cent was sold and
shipped to points outside the State of California.
The Company concedes that it is engaged in commerce within the
meaning of the Act.
IT. THE ORGANIZATIONS INVOLVED
International Longshoremen's and Warehousemen's Union, Local 6,
is a labor organization affiliated with the Congress of Industrial
Organizations, admitting to membership employees of the Company.
Glass Bottle Blowers Association of the United States and Canada,
and Local 140 and Local 141 thereof, are labor organizations affiliated
with the American Federation of Labor, admitting to membership
employees of the Company.
III. THE ALLEGED QUESTIONS CONCERNING REPRESENTATION
Since 1937 the Company has been in contractual relationship,
through successive separate bargaining agreements, with Local 141
and Local 140 of the G. B. B. Al The outstanding agreements, dated
October 10, 1940, between the Company and Local 141 and Local
140,2 respectively, became effective September 1, 1940, and are to
continue in effect until September 1, 1942, excepting, however, tha
wage and vacation provisions thereof which after September 1, 1941,
became subject to modification at the request of either party. By
their terms these contracts provide, among other things, for a closed
shop and for recognition by the Company of Local 141 and Local
140, respectively, as the exclusive bargaining representatives of all
the Company's employees named in the respective contracts. The'
two units alleged herein to be appropriate by the I. L. W. U.,
comprise, respectively, the same employees, covered by the two
contracts.3
2 These agreements were signed by the Company and, on behalf of the labor organizations,
by the chairman of the negotiating committee for the several G . B. B. A. locals, by a
committee representing the particular local involved, anal by International representa-
tives of the G. B. B. A.
3-In Case No. R-3194, the petition alleges in effect that all employees of the Company
covered by, the contract to which Local 141 is a party, constitute an appropriate unit.
By its terms this contract covered employees in the selecting, grit blast, transfer and
decorating, and carton assembly departments at the Oakland plant. The parties have
extended this contract to also cover employees in the cap and closure department at the
San Francisco plant.
In Case No. R-3195, the petition alleges that all employees of the Company covered by
the contract to which Local 140 is a party, constitute an appropriate unit. By its terms
this contract covers employees in the batch and furnace department at the Oakland plant.
OWEINNS-ILLINOIS PACIFIC COAST CO. 993
On July 17 . and 28, 1941, respectively, Local 140 and Local 141.
notified the Company that in accordance with the terms- of the con-
.tr'acts they desired to bargain. for changes with respect to wages and
vacati6 ns.4 ' Pursuant to these notices, in the latter 'part of August
the Company and Locals 141 and.140, together with a representative
of the G. B. B. A., began to bargain concerning increased wages and
changes. in the vacation plan. A number of conferences were held
in which the Company consented to some of the demands and made
counterproposals as to others. The last conference was held on about
September 16 and although at that time Locals 141 and 140 and
the Company had failed to reach a complete accord on matters under
consideration,' they contemplated a continuation of. negotiations.
However, no further demands for bargaining were made. upon the
Company until after September 24, as related below.
During the absence of the G.. B. B. A. International representative
who had participated in most of these conferences, on the afternoon
and night of September 24,8 respectively, Local 140 and Local 141 held
separate special meetings to consider withdrawing from the G. B. B. A.
and transferring their affiliation to the I. L. W. U. The proceedings
at both of these meetings were substantially the same 'and are sum-
marized as follows : After some discussion by the membership on
the question of change of affiliation the membership voted to permit
a delegation of four I. L. W. . U. representatives to attend the meet-
ing. Whereupon, these I. L. W. U. representatives came into the
meeting' and were introduced to the membership. After answering
a number of questions from the floor, the 1. L. W. U. representatives
submitted previously prepared mimeographed ballots which read as
follows :
Resolved that Glass Bottle Blowers Association, Branch
#141,10 immediately withdraw from and sever its affiliation with
Glass . Bottle Blowers Association of the United. States and'
* Notwithstanding that Loal 1.40's notice stated that it desired to open negotiations for
a new contract , the subsequent negotiations indicate that it had reference to only the
wage and vacation provisions.
'The International representative of the G. B. B. A. participated in most of these
conferences , some of which were joint meetings with severalolocals of the G. B. B. A.,
including Locals 141 and 140 , while others were with representatives of ,a single local.
' The record shows that at about this time the Company had reached an accord with
other locals of the G. B. B. A . not involved in this proceeding who had also been bargain-
ing for modification of the wage and vacation provisions in their respective contracts.
On or about September 17 the International representative left Oakland to participate
in bargaining negotiations between the Company and the G. B. B, A. locals at the Com-
pany's Vernon plant . He did not return to Oakland until the night of September 24;
On. September 24 the I. L. N. U . filed one of the instant petitions involving employees
covered by Local 141's contract.
° Apparently these representatives were in the immediate vicinity of the meeting room
awaiting permission to attend the meeting.
11 The ballots submitted at the meeting of Local 140 contained the number "140."
483118-42-vol. 36-64
994 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Canada,. and affiliate itself with and become a part of Inter-
national Longshoremen's and Warehousemen's Union, Local #6
YES---------- NO----------
(Instructions: If you favor the resolution, vote "YES". If
you are opposed to the resolution vote, "No.")
These ballots were used at the meetings and Local 140 adopted the
resolution by a vote of 18 to nothing; and Local 141 by a vote of 143
to 1.11 Thereafter, the I. L. W. U. obtained a number of authoriza-
tion cards from employees who, according to the terms of the
Company's closed-shop .contracts, were members of either Local 141
or Local 140.12
The G. B. B. A. and Locals 141 and 140 submitted no evidence of
membership, relying on, their closed-shop contracts, described above,
as a bar to this proceeding., It is clear from the record, however,
that at least prior to September 24 all employees of the Company
within the classifications covered by said contracts were members of
their respective G. B. B. A. locals.
By letter dated September 24, the I. L. W. U. informed the Com-
pany that on the above date it. had filed a petition for investigation
and certification of representatives of employees covered by Local
141's contract and that a continuation of bargaining negotiations
with-Local 141 would be "contrary to law." In a letter to the Com-
pany dated September 27, and signed by its International represen-
tative, the G. B. B. A. requested that the Company (1) affirm its
contractual obligation to deal exclusively with the G. B. B. A. or its
affiliates and to employ only members thereof in the classifications
covered in their outstanding contracts; (2) discharge those employees
who have attempted to change their affiliation and who do not reaf-
firm their membership in their proper affiliate of the G. B. B. A.; and
(3) arrange to continue the pending negotiations for modification
of the wage provisions in the outstanding contracts. The G. B. B. A.
also stated it intended to use every means to "force compliance
with the letter of [its] agreements." On or about September .29,
after receipt of the above-mentioned letters, the Company announced
O .
lx The parties stipulated that.this action did not terminate the legal existence of the
locals. All members of the respective locals did not attend these meetings.
".A report by the Field Examiner introduced in evidence and.a statement by the Trial
Examiner at the hearing shows that the I. L. W. U. submitted (1) in support of its
claim to represent employees covered by Local 141's contract, 245 authorization cards,
1 dated August 25 and the others on and after September 24, signed by persons whose
names appeared on the Company's October 1 pay roll, containing the names of approxi-
mately 350 employees who are covered by said contract and (2) in support of its claim
to represent employees covered,by Local 140's contract, 24 authorization cards, of which
18 were dated on and after September 24 and the balance were undated,. signed by persons
whose names appear on the above pay roll, containing the names of approximately 30
employees who are covered by said contract.
OWENS-ILLINOIS PACIFIC COAST CO. 995
that in view of the fact that it had an outstanding closed-shop con-.
tract with Local 141 and that the I. L. W. U. had claimed to repre-
sent the employees covered by this contract, the Company would not
bargain for said employees pending the Board's determination of
the issues involved in this proceeding. 13
The I. L. W. U. contends that a question concerning representa-
tion has arisen because of 'the shift of affiliation by an "overwhelm-
ing" majority of the employees within the respective units from the
G. B. B. A. locals to the I. L. W. U., at a time when the contracts
covering said employees had been in effect for a year and during
negotiations for ii odification of said contracts. The I. L. W. U.
further contends that these contracts, being for a term of ,2 years
and having been in force for a year, should' not preclude an investi-
gation and certification of representatives at this time.
On the other hand, the Company and the G. B. B. A. contend
that the outstanding closed-shop contracts with Locals 140 and 141,
respectively, are a bar to this proceeding.. Admitting there has been
a considerable defection from its Locals 141 and 140 to the I. L. W. U:,
the G. B. B. A. asserts "that this shift of membership "was due to a
planned raid" by the I. L. W. U. and that if the terms of these
outstanding closed-shop contracts are disregarded, it will encourage
raids by rival labor organizations and result in "unstabilized indus-
trial conditions and jeopardize National Defense." The Company
and G. B. B. A. also contend that these outstanding closed-shop
contracts for a 2-year term, subject to modification of the wage and
vacation clauses at the end of the first year, are of reasonable dura-
tion. They point to the fact that in recent years substantially, all
the Company's bargaining agreements with affiliates of both the
Congress of Industrial Organizations and the American Federation
of Labor have been customarily made for a term of 2 years or
long, er.14
It is significant,, in our opinion, that not all the employees covered
by the outstanding contracts have shifted their membership from
Locals 140 and 141 to the I. L. W. U., and that those contracts include
closed-shop provisions permitting the G. B. B. A. to require that
employees who refuse to retain their membership in the G. B. B. A.
be replaced by members of the G. B. B. A. In view of these cir-
cumstances we believe that the Board in furtherance of the purposes
13 The Company took the same position with regard to the employees covered by the
closed -shop contract with Local 140. The I . L. W. U. filed a petition involving the
employees covered by Local 140's closed -shop contract on October 13.
14 The 1937 and 1938 contracts with Locals ' 141 and 140 were for a 1-year term. How-
ever , the 1 . 939 and subsequent contracts provided for a 2-year . term , subject to certain
modification after the first year . An outstanding national agreement covering machine
operators between the G. B. B. A . and a number of. employers , including the Company,
was made for a 2-year term.
996 DECISIONS OF NATIONAL LABOR RELATIONS- BOARD
of the Act to attain stabilized labor relations in industry through
collective agreements should not proceed to an investigation and
certification of representatives during the term of the closed-shop
contracts between the Company and the G. B. B. A. Locals 141 and
140.15. We find, therefore, that these closed-shop contracts area bar.
to an investigation and certification of representatives at the present
time and shall dismiss the petitions, without prejudice, however, to
the right to renew the petitions at a reasonable time prior to Sep-
tember 1, 1942, when, by their terms, the contracts expire.
We find that no questions have arisen concerning the representation
of employees of the Company.
Upon the basis of the above findings of fact and upon the entire.
record in the case, the Board makes the following :
CONCLUSION OF LAW
No questions concerning thee representation of employees at the
Oakland and San Francisco plants of Owens-Illinois Pacific Coast
Co., San Francisco, California, exist within the meaning of Section
9 (c) of the Act.
ORDER
Upon the.basis of the foregoing findings of fact and conclusion
of law the National Labor Relations Board hereby orders that the
petitions for investigation and certification of representatives of em-
ployees of Owens-Illinois Pacific Coast Co., San Francisco, California,
filed by International Longshoremen's and, Warehousemen's Union,
Local 6, be, and they hereby are, dismissed.
"See Matter of -Douglas and Lomason Company and International Union, United
Automobile Workers of America, Affiliated with the C. I. 0 ., 34 N. L. R. B ., No. S.