Ryan Aeronautical Co.

National Labor Relations Board - Board Decisions

Aug 30, 1940

27 N.L.R.B. 14 (N.L.R.B. 1940)

In the Matter Of RYAN AERONAUTICAL COMPANY and UNITED
• AUTOMOBILE WORKERS OF AMERICA, LOCAL 506, C. I. O.
Case No. R-1989.-Decided August 30, 1940
Jurisdiction : airplane manufacturing industry.
Investigation " and Certification of Representatives : existence of question: re-
fusal to accord recognition-to union; election necessary.
Unit Appropriate for Collective Bargaining : hourly,paid production and main-
tenance employees, exclusive of -supervisory and clerical' employees, and those
employees of the Company who are covered by a contract between the Com-
pany and the welders which is now in effect.
Practice and Procedure
Motion to dismiss petition for investigation and certification of repre-
sentatives on ground the report of Regional Director with respect to
claims of representation and the Order of Board Directing Investigation
and Hearing were ex parte documents which violated the constitutional
rights of the employer as guaranteed in the Fifth Amendment, denied.
Sloane•& Steiner, by Mr. Fred A. Steiner, of San Diego, Calif., for
the Company. - -
Gallagher, Wirin cC Johnson, by Mr. Harry A. Kaplan, of Los
Angeles, Calif., and Mr. John Bacellar, of San Diego, Calif., for the
U. A. W.-C. I. O.
Mr. Jimme Goss, of Los Angeles, Calif., and Mr. Merle H. Griffin,
of San Diego, Calif., for the Welders.
Mr. David H. Karasick, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF `THE CASE
On June 28, 1940, United Automobile Workers of America, Local
506, affiliated with the Congress of Industrial Organizations, herein
called the U. A. W.-C. I. 0., filed with the Regional Director for the
Twenty-first Region (Los Angeles,. California) a petition alleging
that a question affecting commerce had arisen concerning the repre-
sentation.of employees of Ryan Aeronautical Company, San Diego,
California, herein called the Company, and requesting an investiga-
27 N. L. R. B., No. 3.
14
RYAN AERONAUTICAL COMPANY 15
tion and certification of representatives pursuant to Section 9 (c)
of the National Labor Relations Act, 49 Stat. 449, herein called the
Act. On July 30, 1940, the National Labor Relations Board, herein
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 2, as amended, ordered an investigation and
authorized the Regional Director to conduct it and to provide for
an appropriate hearing upon due notice.
On August 1, 1940, the Regional Director issued a'notice of hearing,
and on August 2, 1940, an amendment to notice of hearing, copies of
which were duly served upon the Company; the U. A. W.-C. I. 0.;
.United Aircraft Welders of America, an unaffiliated labor organiza-.
tion, herein called the the Welders; International Association of
Machinists; and Pattern Makers Association of Los Angeles. Pur-
suant to notice, a, hearing was held on August. 8, 1940, at San Diego;
California, before James A. Cobey, the Trial Examiner duly desig-,
nated by the Board. The Company and the U. A. W.-C. I. O. were
represented by counsel, the Welders by its representatives; all partici-
pated in the hearing. Full opportunity 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 with respect 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. . ,
.
At the close of the hearing, counsel for the Company moved that a
written statement of the Regional Director concerning claims of au-
thorization for the purpose of representation be stricken from the
record, that the Order Directing Investigation and Hearing be like-
wise stricken, and that the petition be dismissed. All three motions
were based on the ground that the statement of the Regional Director
and,the Order Directing Investigation and Hearing-.Were ex paree
documents which violated the constitutional rights of the Company
as guaranteed in the Fifth Amendment. The Trial Examiner re-
served ruling on these motions. The motions are hereby denied.
Upon the entire record in the case, the Board makes the following:
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY
Ryan Aeronautical Company is a California corporation, having
its principal place of. business at San Diego, California. It is there
engaged in the manufacture and sale of airplanes and airplane parts
for both commercial and military use. The principal raw materials
16 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
used are aluminum alloy, chrome molybdenum, stainless steel, fabrics,
instruments, and accessories, all of which come from points outside
California, and paints, varnishes, standard parts, engines, and rubber,
some of which come from points outside California. During the
fiscal year July 1, 1939, to June 30, 1940, the Company purchased ap-
proximately $428,000 worth of raw materials. Approximately 10 per
cent of these purchases were made directly by the Company from
suppliers located outside the State; approximately 90 per cent were
madelocally. - Of these locally made purchases, however, a substantial
portion-of the materials were secured from points outside the State.
During the fiscal year July 1, 1939, to June 30, 1940, the Company's
sales of airplanes and airplane parts aggregated $1,838,000. 'Of
these, approximately 54 per cent were sold within the State, approxi-
mately 25 per cent were sold to purchasers located outside the State,
and approximately 21 per cent, exclusive of. the above stated percent-
ages, were sold to the United States Government. The Company
now employs approximately 750 employees, and maintains, an annual
pay roll of approximately $900,000. The Company did not contest
the jurisdiction of the Board.'
II. THE ORGANIZATIONS INVOLVED
United Automobile Workers. of America, Local, 506, affiliated with
the Congress'of Industrial Organizations, is a labor organization
admitting to its membership employees of the Company.
United Aircraft Welders of America, an unaffiliated union, is a
labor organization admitting to its membership all welders, appren-
tice welders, and helpers employed by the Company, exclusive. of oper-
ators of mechanical spot-welding machines.
III. THE QUESTION CONCERNING REPRESENTATION
On June 24, 1940, the U. A. W.-C. I. O. wrote to' the Company
requesting a meeting for the purpose of negotiating "a sole bargaining
agreement." The Union stated that it represented a substantial ma-
jority of the hourly. paid production:ethploy ees of the Company,. and
that, in the event the Company ref used to, meet, the Union would
request the Board to hold an election. On. June 27, 1940, the Company
wrote in reply that "it has been and is a policy of this company to
meet with any of its employees individually or collectively at any time
they desire to meet with the management; or its representative for any
purpose whatsoever, and we are continuing to follow this procedure."
A report of the Regional Director of the Board with respect to the
' See Matter of Ryan Aeronautical Co. and United Aircraft Welders of America, Ind.,
15 N. L. R. B. 812.
.
RYAN AERONAUTICAL COMPANY 17
representation claims of the U. A. W.-C. I. O. was introduced into'
evidence at the hearing. The report, which was based on membership
application cards and signatures to petitions designating the U. A. W.-
C. 1. 0. as the bargaining agent of the signers, shows that the U. A. W.-
C. I. O. represents a substantial number of employees of the Company.
We find that a question has arisen concerning the representation of
employees of the Company.
IV. THE EFFECT OF THE QUESTION CONCERNING REPRESENTATION
UPON COMMERCE
We find that the question concerning representation wliicli 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
The U. A. W.-C. I. O. urges that all. the hourly paid production and
maintenance employees of the Company at its San Diego, California,
plant, exclusive of supervisory and clerical employees, and exclusive
also of those employees covered by a contract between the Company
and the Welders which is now in effect,' constitute an appropriate
bargaining unit. Neither the Company nor the Welders objected to
such a unit.
We find that all the hourly paid production and maintenance em-
ployees of the Company at its San Diego, California, plant, exclusive
of supervisory and clerical employees, and those employees of the
Company who are. covered by a contract between the Company and
the Welders which is now in effect, constitute a unit appropriate for
purposes of collective bargaining and that such unit will insure, to
employees of the Company the, full benefit of their right to self-I in
organization and to collective bargaining and otherwise effectuate the
policies of the Act.
VI. THE DETERMINATION OF REPRESENTATIVES
At the hearing the.Company and the U. A. W.-C. I. O. assumed
that the Board would direct an election. We find that the 'question
2 The contract is not in evidence. It was entered into shortly after the Board certified
the Welders as the exclusive representative of those employees of the Company who spent
more than 50 per cent of their working time in oxy-actylene, oxy-hydrogen, and electric
are welding, in gas torch cutting and in the work of welders' helpers, excluding such of
those employees having the, right to hire and discharge. See Matter of Ryan Aeronautical
Co. and United Aircraft Welders of America, Ind.; 17 N. L. R. B. 231.
12342S-42-vol. 27-3
18 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
which has arisen concerning the representation of employees of the.
Company can best be resolved by an election by secret ballot.
- The Company is presently undergoing a program of plant expan-.
Sion which, when completed, will result in an estimated 25 per cent
increase in the number of employees. At the time of the hearing,
new employees were being hired at the rate of approximately six, a
clay. Counsel for the Company requested that, ;should the-Board.
direct an election, employees whose navies appear on the pay roll
next 'preceding the date of the'Direction of Election be' eligible to
vote. Counsel for U. A. W.-CI. : O., however, requested' that eligi-
bility-bedetermined as of the date the petition was filed. Ln.accord-
ance with our usual practice, the pay roll immediately .piec,,ding the
date of the Direction of-Election will be used for the purpose of de-
termininig, eligibility to vote. We shall direct that those eligible'.to'
vote ' shall be .the employees in the appropriate unit. whose names:
appear. upon the Company's pay roll immediately preceding the date
of this Direction of Election, including any employees-who did not
work during said 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 those who have since quit or 'been. discharged
for cause.
At the close,of the hearing, counsel for the Company moved that,
in the event that an election was ordered, all labor organizations
that have any. membership whatever in the plant be given a place on
the ballot. The Trial Examiner reserved ruling on this motion'. No
labor organization other than the U. A. W:-C. I.' O. having made a
showing of substantial membership among the employees of the "Unit
here found appropriate, the motion is hereby denied.
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 Ryan Aeronautical Company, San Diego,.
California, within the meaning of. Section 9 (c) and Section 2 (6)
and (7) of the National Labor Relations Act.
2. All hourly paid production and maintenance employees of the
Company at its San Diego, California, plant, exclusive of supervisory
and clerical employees, and exclusive also of those employees covered
by a contract between the Company and the Welders which is now
in effect, constitute a unit appropriate for the purposes of collective.
bargaining, within the meaning of Section 9 (b) 'of the Act.
RYAN AERONAUTICAL COMPANY 19'
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, and pursuant to Article III, Section 8, of National Labor
Relations Board Rules and Regulations-:--Series 2, as.amendecl; it is-
hereby
DIRECTED that, as part of the investigation au"ihorized by the Board
to ascertain representatives for the purposes of collective bargaining
with Ryan Aeronautical Company, San Diego, California, 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 Twenty-first Region, acting in this matter as agent for the Na-
tional Labor Relations "Board and subject to Article III, Section.9,
of said Rules and Regulations, among all hourly paid 'production
and maintenance employees of Ryan Aeronautical Company, San-
Diego, California, whose names appear upon the Company's pay roll
immediately preceding the date of this Direction of Election, includ
i`ng any employees who, did not work during said pay-roll period-
because they were ill or on vacation, and employees who were then,
or have since been temporarily laid off, but excluding supervisory
and clerical employees, and those employees, covered by' a contract
between the Company' and the Welders which is now in effect, and
employees who have since quit or been discharged for cause, to deter-
mine whether or not they desire to be represented by United' Auto;
mobile Workers of America, Local 506, affiliated with the Congress'
of Industrial Organizations, for'the purposes of collective bargaining.
[SAME TITLE] .
.CERTIFICATION OF REPRESENTATIVES .
October 01, 1940 -
On August 30, 1940, the National Labor Relations Board, herein
called the Board, issued its Decision a,nd'Direction of 'Election in the
above-entitled proceeding. Pursuant to the Direction of- Election, an
election by secret ballot was conducted on September 20, 1940, under
the ' direction and supervision of the Regional Director for the
Twenty-first Region (Los Angeles, California). On September 23,
1940, 'the' Regional Director, acting pursuant to Article III, Section 9,
of National Labor Relations Board Rules and Regulations-Series.2,:
20 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
as amended, issued and duly served upon the parties an Election
Report.
As to the balloting and its results, the Regional Director reported
as follows :
Total on eligibility list------------------------------------- 776
Total ballots cast------------------------------------------ 667
Total ballots challenged------------------------------------- 38
Total void ballots------------------------------------------ 1
Total blank ballots----------------------------------------- 1
Total ballots not counted----------------- ------------------ 40
Total ballots counted---------------------------------- - --- 627
Total votes for. International Union, United Automobile Work-
ers of America, Local No. 506, affiliated with the C. I. O__ 354
Total votes against International Union, United Automobile
Workers of America, Local No. 506, affiliated with the
C. I. 0---------------------------------------------------- 273
By letter dated September 20, 1940, and received by the.Regional
Director on September 24, 1940, the Company filed objections to the
conduct of the election. On September 24, 1940, the Regional Di-
rector, acting pursuant to Article III, Section 9, of National Labor
Relations Board Rules and Regulations-Series 2, as amended, issued
a report on objections to the conduct of the election.
Objection to the Conduct of the Election and to the Election Re-
port, dated September 27, 1940, were filed by the Company with the
Regional Director. On October 4, 1940,, the Regional Director, acting
pursuant to Article III, Section 9, of National Labor Relations Board
Rules and Regulations-Series 2, as amended, issued a report on
Objection to the Conduct of the Election and to the Election Report.,
We have considered the Company's objections : and the Regional.
Director's Reports thereon. We find that the objections raise no
substantial and material issues with respect to tho conduct of the
ballot or the Election Report. The objections are hereby 'overruled.
By virtue of and pursuant to the power vested in they National
Labor Relations Board by Section 9 (c) of the National Labor Rela-
tions Act, 49 Stat. 449, and pursuant to Article III, Sections 8 and 9,
of National Labor Relations Board Rules and Regulations-Series 2,
as amended,
IT IS HEREBYi CERTIFIED that United Automobile Workers of Amer
ica, Local 506, affiliated with the Congress of Industrial Organiza-
tions, has been designated and selected by a majority of,the hourly
paid production and maintenance employees of Ryan Aeronautical
Company, at its San Diego, California, plant, exclusive of super-
visory and clerical employees, and those employees ' of the Company
who are covered by a contract between the Company and the Welders
RYAN AERONAUTICAL COMPANY 21
which is now in. effect, as their representative for the, purposes of
collective bargaining , and that, pursuant to Section 9 (a) of the Na-
tional Labor Relations Act, United Automobile Workers of America,
Local 506, affiliated with the Congress of Industrial Organizations, is
the exclusive representative of all such employees for the purposes
of collective bargaining in respect to rates of pay, wages , hours of
employment , and other conditions of employment.
27 N. L . R. B., No. 3a.