Servel, Inc.

National Labor Relations Board - Board Decisions

Sep 24, 1941

35 N.L.R.B. 733 (N.L.R.B. 1941)

In the Matter of SERVEL, INC. and LOCAL 1002, UNITED ELECTRICAL
RADIO AND MACHINE WORKERS of AMERICA, C. I. O.
Case No. R-2843.-Decided September 24, 1941
Jurisdiction : refrigerator manufacturing industry. I
Investigation and Certification of Representatives : existence of question : re-
fusal of Company to accord union recognition until it presented proof that
it represented a majority; in view of uncertain employment situation due to
curtailment of operations in the interest of national defense, in accordance
with the Company's policy, employees who have been laid off for a period
not exceeding 6 months held eligible to vote ; election necessary.
Unit Appropriate for Collective Bargaining : all production and maintenance
employees, excluding foremen, assistant foremen, group leaders, other super-
visory officials, office employees, company police, and watchmen.
dlr. William Sentner, of St. Louis, Mo., and Mr. Thurlow Jones,
of Evansville, Ind., for the Union.
Mr. Bonnell Phillips, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On June 13, 1941, Local 1002, United Electrical, Radio and Ma-
chine Workers of America, affiliated with the Congress of Industrial
Organizations, herein called the Union, filed with the Regional Di-
rector for the Eleventh Region (Indianapolis, Indiana) a petition
alleging that a question affecting commerce had arisen concerning
the representation of employees of Servel, Inc., Evansville, Indiana,
herein called the Company, and requesting an investigation and cer-
tification of representatives pursuant to Section 9 (c) of the National
Labor Relations Act, 49 Stat. 449, herein called the Act. On July
26, 1941, 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 Regula-
tions-Series 2, as amended, ordered an investigation and authorized
the Regional Director to conduct it and to provide for an appro-
priate hearing upon due notice.
35 N. L. R. B, No. 164.
733
734 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
On July 30, 1941, the Regional Director issued a notice of hearing,
copies of which were duly served upon the Company and the Union.
Pursuant to notice, a hearing was held on August 6, 1941, at Evans-
ville, Indiana, before Robert D. Malarney, the Trial Examiner duly
designated by the Chief Trial Examiner. The Union was repre-
sented by counsel and participated in the hearing. The Company,
although served with notice of hearing, declined to appear or partici-
pate 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. No objections to'the introduction of
evidence and no exceptions to rulings of the Trial Examiner were
made at the hearing. The Board has reviewed the rulings made by
the Trial Examiner and finds that no prejudicial errors were com-
mitted. 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
Servel, Inc., is an Indiana corporation engaged in the manufacture,
sale, and distribution of gas-operated and kerosene-operated refrig-
erators, electric commercial refrigerator machines, and allied prod-
ucts. Its plant and principal place of business are located at
Evansville, Indiana.
In the course of its manufacture the Company uses large quantities
,of sheet metal, sheet aluminum, aluminum ingots, steel tubing, lum-
ber, paint, enamel , varnishes, insulating materials, and cabinet hard-
ware . During each of the years 1935, 1936, and 1937 the Company
caused to be shipped to the Evansville plant from outside the State
of Indiana over $1,000,000 worth of these materials.
The sales of the Company's finished products for the fiscal year
ending October 31, 1937, exceeded $30,000,000, more than 90% of which
were shipped from the plant to customers located outside the State
of Indiana. The principal market for these products is in the several
States, the District of Columbia, and foreign countries, including
Mexico, Panama, and other countries in Central and South America.,
'Notice of healing ivas served upon a representative of the Company by registered
mail. A return receipt is in evidence At the hearing the comptroller of the Company,
testifying as a witness , stated that to his knowledge the Company had received the notice
of hearing.
2 Our findings concerning the business of the Company are quoted from a previous
Decision and Order . Matter or Servel, Inc. and United Electrical Radio and Machine
Workers of America, Local No. 1005, 11 N L . R B. 1295, issued March 25, 1939 , wherein
we found upon evidence presented in the record of that case that the Company was
engaged in commerce within the meaning of the Act At the hearing in the present
proceeding the Company 's comptroller testified , and we find , that no material change has
occurred in the corporate structure of the Company or in the nature of its interstate and
foreign business transactions since the date of the previous Decision.
SERVEL, INC. 735
The Company presently employs approximately 4,396 employees.
IT. THE ORGANIZATION INVOLVED
Local 1002, United Electrical, Radio and Machine Workers of
America, is a labor organization affiliated with the Congress of
Industrial Organizations, admitting to membership employees of the
Company.
III. THE QUESTION CONCERNING REPRESENTATION
On February 25, 1941, the Unibn, claiming to represent a majority
of the Company's production and maintenance employees, by letter
requested a conference with the Company for the purpose of negotiat-
ing a collective bargaining agreement. On March 6, 1941, the Com-
pany in reply informed the Union that no meeting could be held
until such time as the Union presented proof of its claim to represent
a majority of the Company's employees in an appropriate unit.
From a report prepared by the Regional Director and submitted
in evidence at the hearing, it appears that the Union represents a
substantial number of employees of the Company.3
We find that a question has arisen concerning the representation
of employees of the Company.
IV. TIIE 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
At the hearing the Union urged, and we find, that all production
and maintenance employees of the Company excluding foremen,
assistant foremen, group leaders, other supervisory officials, office
employees, company police, and watchmen, constitute a unit appro-
priate for the purposes of collective bargaining. We further find
that said unit will insure to employees of the Company the full
s The Union submitted to the Regional Director 1,479 authorization and application-
for-membership cards , a majority thereof being dated in 1941 , and all appearing to . the
Regional Director to bear genuine original signatures . The Company refused a request
by the Regional Director that it submit to him a pay roll for the purpose of determining
whether the signatures on the cards were those of company employees.
736 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
benefit of their right to self-organization and to collective bargain-
ing and otherwise effectuate the policies of the Act.
VI. THE DETERMINATION OF REPRESENTATIVES
We find that the question concerning representation which has
arisen can best be resolved by, and we shall accordingly direct, an
election by secret ballot.
At the time of the hearing herein, the Company was in the process
Df taking inventory and retooling, which entails a substantial tem-
porary reduction of employment. The resumption of operations to .i
scale existing prior to the curtailment of manufacturing activity,
which would normally occur in late September or early October, is'
this year rendered uncertain by reason of a possible enforced cut in
the manufacture of refrigerators in the interests of national defense,
As a consequence of certain defense contracts already held by the
Company, however, the future operations of 'the Company will not
be reduced to the full extent of the contemplated reduction in re-
frigerator manufacture. It was testified by a Company official that
the Company regards as employees workers who have been laid off
for a period not exceeding 6 months. In view of the uncertain em-
ployment situation above described and in accordance with the Com-
pany's policy, we find that employees who have been laid off for a
period not exceeding 6 months prior to the holding of the election
herein directed have a reasonable expectation of further work with
the Company; that they are therefore to be classed as employees
temporarily laid off,4 and that as such they will be eligible to vote
in the election. It appears also that the Company's operations will
more nearly approach normal by October 15. In order best to ef-
fecutate the policies of the Act and to facilitate the election, we
shall accordingly provide that the employees within the appropriate
i+nit whose names appear upon the pay roll of the Company for the
pay-roll period including October 15, 1941, shall be eligible to vote
`in the election, subject to such further limitations and additions as
are set forth in the Direction of Election herein, and we shall direct
that the election be held as soon as possible after the termination
of said pay-roll period.
Upon the basis of the above findings of fact and upon the entire
record in the case, the Board makes the following:
4 Excluding , howeier, any such persons who have received but refused offers of rein-
statement following their lay-offs. See Matter of Schafer Brothers Lumber £ Shingle
Company Division of Schafer Brothers Logging Company and Lumber and Sawmill Workers
Union, Local No. 2782 , 23 N. L. R B 1104.
SERVEL, INC.
CONCLUSIONS OF LAW
737
1. A question affecting commerce has arisen concerning the repre-
sentation of employees of Servel, Inc., Evansville, Indiana, within
the meaning of Section 9 (c) and Section 2 (6) and (7) of the
National Labor Relations Act.
2. The production and maintenance employees of the Company
excluding foremen, assistant foremen, group leaders, other super-
visory officials, office employees, company police, and watchmen, con-
stitute a unit appropriate for the purpose 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 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 bar-
gaining with Servel, Inc., Evansville, Indiana, an election by secret
ballot shall be conducted as soon as possible after the termination
of the pay-roll period which includes October 15, 1941, but not later
than thirty (30) days from the termination of such pay-roll period,
under the direction and supervision of the Regional Director for the
Eleventh 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 the production and maintenance em-
ployees of the Company who were employed during the pay-roll
period which includes October 15, 1941, including employees who did
not work during said pay-roll period because they were ill or on
vacation, or in the active military service or training of the United
States, or temporarily laid off,5 but excluding foremen, assistant
foremen,- group leaders, other supervisory officials, office employees,
company police, watchmen, and those who have since quit or been
discharged for cause, to determine whether or not they desire to
be represented by Local 1002, United Electrical, Radio and Machine
Workers of America, affiliated with the Congress of Industrial
Organizations, for the purposes of collective bargaining.
5 See footnote 4 and the text therein annotated.
738 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
[SADi TITLE] -
ORDER. VACATING AND SETTING ASIDE DECISION AND
DIRECTION OF ELECTION, AND PERMITTING WITH-
DRAWAL OF PETITION WITHOUT PREJUDICE
October 9, 1941
The Board having issued a Decision and Direction of Election in
the above-entitled proceeding on September 24, 1941, and. thereafter,
Local 1002, United Electrical, Radio and Machine Workers of Amer-
ica, C. I. 0., the petitioning and sole labor organization involved in
the proceeding, having requested the Board to vacate and set aside
the Decision and Direction of Election and to permit the withdrawal
without prejudice of its petition for an investigation and certification
of representatives previously filed, and the Board having duly con-
sidered the matter,
IT Is HEREBY ORDERED that the said Decision and Direction of Elec-
tion dated September 24, 1941, be, and it hereby is, vacated and set
aside; and
IT IS FURTHER ORDERED that the request of Local 1002, United
Electrical, Radio and Machine Workers of America, C. I. 0., for per-
mission to withdraw its petition without prejudice be, and it hereby
is, granted and that the aforesaid case be, ` and .it hereby is, closed.
35 N. L. R. B., No. 164a.