Showers Brothers Company, Inc.

National Labor Relations Board - Board Decisions

Jul 22, 1939

13 N.L.R.B. 829 (N.L.R.B. 1939)

In the Matter of SHOWERS BROTHERS COMPANY , INC. and NATIONAL
FURNITURE WORKERS LOCAL No. 1, OF THE UPHOLSTERERS INTERNA-
TIONAL UNION OF NORTH AMERICA, AFFILIATED WITH THE AMERICAN
FEDERATION OF LABOR
Case No. R-1357.-Decided July 00, 1939
Furniture Manufacturing Industry-Investigation of Representatives: con-
troversy concerning representation of employees : rival organizations ; certifica-
tion by Board over a year ago , no bar to-Contract : closed-shop , no bar to
determination of representatives where notice of claim of majority is given to
company by rival union prior to renewal date-Unit Appropriate for Collective
Bargaining : all employees , excluding foremen and salaried and office employees;
stipulation as to-Election Ordered
Mr. Colonel C. Sawyer, for the Board.
Corr ct; Bowen, by Mr. Donald E. Bowen, of Bloomington, Ind.,
and Mr. Clinton H. Givan, of Indianapolis, Ind., for the National.
Mr. Milton Siegel and Mr. Joseph D. Persily, both of Indianapolis,
Ind., for the United.
Mr. Victor A. Pascal, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On March 7, 1939, National Furniture Workers, Local No. 1, of
the Upholsterers International Union of North America, herein called
the National, filed with the Regional Director for the Eleventh Region
(Indianapolis, Indiana) a petition and on March 22, 1939, an amended
petition, both petitions alleging that a question affecting commerce
had arisen concerning the representation of employees of Showers
Brothers Company, Inc., Bloomington, Indiana, herein called the
Company, and requesting an investigation and certification of rep-
resentatives pursuant to Section 9 (c) of the National Labor Rela-
tions Act, 49 Stat. 449, herein called the Act. On March 27, 1939,
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 1, as
13 N. L. R. B., No. 88.
829
830 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
amended, ordered an investigation and authorized the Regional Direc-
tor to conduct it and to provide for an appropriate hearing upon
due notice.
On April 4, 1939, the Regional Director issued a notice of hearing,
copies of which were duly served upon the Company, the National
and its attorneys, United Furniture Workers, Local Industrial Union
No. 496, herein called the United, a labor organization claiming to
represent employees directly affected by the investigation, and its
attorney and its representative, and upon Upholsterers International
Union of North America. Pursuant to the notice, a hearing was
held at Bloomington, Indiana, on April 20, 21, and 22, 1939, before
Mapes Davidson, the Trial Examiner duly designated by the Board.
The Board, the National, and the United were represented by counsel
and participated 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 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. The attorneys for the National and the United filed briefs,
which have been considered by the Board.
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY
Showers Brothers Company, Inc., an Indiana corporation, is en-
gaged in the manufacture, sale, and distribution of bedroom and din-
ing-room furniture, kitchen cabinets, desks, breakfast sets, and other
types of furniture. It operates five plants at Bloomington, Indiana,
and one plant at Bloomfield, Indiana. The present proceeding in-
volves only the plants at Bloomington.
During 1938, the Company purchased for use at its Bloomington
plants approximately $75,000 worth of raw materials, 75 per cent of
which it received from sources without the State of Indiana. During
the same period it sold in excess of $1,000,000 worth of finished prod-
ucts, of which 80 per cent were shipped outside of Indiana. Approxi-
mately 80 per cent of the products shipped outside Indiana were
manufactured and shipped from the Bloomington plants. The Com-
pany's gross pay roll during 1938 exceeded $500,000.
SHOWERS BROTHERS COMPANY, INCORPORATED
II. THE ORGANIZATIONS INVOLVED
831
National Furniture Workers, Local No. 1, of the Upholsterers In-
ternational Union of North America, is a labor organization affiliated
with the American Federation of Labor, apparently admitting to its
membership all the employees of the Company except foremen and
salaried and office employees.
United Furniture Workers, Local Industrial Union No. 496, is a
labor organization affiliated with the Congress of Industrial Organi-
zations, apparently admitting to its membership all employees of the
Company, except foremen, and salaried and office employees.
III. THE QUESTION CONCERNING REPRESENTATION
After an investigation and hearing upon a petition filed on Septem-
ber 3, 1937, by The Upholsterers, Furniture, Carpet and Awning
Workers, Linoleum Workers Union, Local No. 184, affiliated with the
American Federation of Labor, the Board on December 17, 1937,
issued a Direction of Election,' which as amended on December 29,
1937,2 and on December 31, 1937,3 directed that an election by secret
ballot be conducted among the production employees of the company
here involved at its Bloomington, Indiana, plants, excluding office
employees, supervisory employees, engineers, firemen, watchmen, and
maintenance employees, to determine whether they desired to be
represented by the said Local No. 184 or by the United, for the pur-
poses of collective bargaining, or by neither. In the election held
pursuant to the aforesaid Direction of Election, as amended, the
United received a majority of the ballots cast. The Board accord-
ingly, on January 25, 1938, certified it as the exclusive bargaining
representative of all employees of the Company at its Bloomington,
Indiana, plants in the classifications specified in the Direction of
Election, as amended.4
On March 10, 1937, the Company and the United entered into an
agreement in which the United was recognized as the exclusive bar-
gaining representative of all the production and maintenance em-
ployees, watchmen, and firemen of the Company at its Bloomington,
Indiana , plants, exclusive of foremen, supervisors, and salaried and
office employees. The United was also recognized in the agreement
as the bargaining representative of all engineers of the Company
who were members of the United. The agreement further provided
for a closed shop with respect to all employees coming under the
jurisdiction of the agreement, a check-off, and terms relative to wages,
14 N. L. R. B 585.
2 4 N. L. R. B. 591.
4 N. L. R . B. 591.
• 4 N. L. R . B. 593.
832 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
hours of work, seniority, and other conditions of employment. The
agreement was for a term ending March 10, 1939, subject to the
proviso that it should automatically continue from year to year un-
less a notice of desire to change was given by either party in writing
to the other party thirty (30) days before the 10th day of March of
any year.
In the latter part of 1938, the National commenced organizational
activities among the employees of the Company. On February 3,
1939, its attorneys informed the Company in writing that a majority of
the employees of the Company, except foremen, and office and salaried
employees, had designated the National as their bargaining repre-
sentative, requested a meeting for the purpose of negotiating an
agreement, and advised the Company to refrain from entering into
an agreement with any other organization. By letter dated February
6, 1939, the Company replied that it would not recognize the National
as bargaining representative until "the A. F. of L. establishes them-
selves as the bargaining agency for the employees." On the same
day, the Company informed representatives of the United by letter
that the United's contract with the Company would terminate March
10, 1939; that the Company desired to change the terms of the con-
tract; and that it was necessary for the United to reestablish its right
to represent a majority of the employees before the Company would
enter into another contract with it. On February 7, 1939, following
a conference between representatives of the United and the Company,
the Company sent the United a letter withdrawing and canceling
its letter dated February 6, 1939, to the United. It does not appear
that either the Company or the United thereafter took any steps
to modify or terminate the agreement made on March 10, 1937.
We find it unnecessary to pass upon the question whether or not
the closed-shop agreement between the United and the Company was
renewed. Written notice of the National's claim to represent a ma-
jority of the employees was given to the Company more than a month
before the date for the renewal of such agreement. About the date
on which such notice was given a considerable number of employees
had, as set forth hereinafter, signed cards indicating their desire for
representation by the National. The signing of such cards at such
time raises a substantial doubt as to whether at the time of the re-
newal, if any, of the agreement the United represented a majority in
the appropriate unit. Under the circumstances, even if the closed-
shop agreement was renewed such renewal could not operate to pre-
vent a determination and certification of representatives for collective
bargaining in this proceeding." Nor does the certification by the
6 See Matter of Colonic Fibre Company, Inc and Cohoes Knit Goods Workers Union
$1514, A. F. of L., 9 N. L. R. B. 658.
SHOWERS BROTHERS COMPANY, INCORPORATED 833
Board on January 25, 1938, of the United as bargaining representa-
tive preclude such determination and certification of representatives e
For the reasons set forth in Section VI below, we feel that substantial
doubt exists as to the desires of the majority of the employees in the
appropriate unit with respect to representation.
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 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 parties stipulated that all the employees of the
Company at its Bloomington, Indiana, plants, excluding foremen
and salaried and office employees, constitute a unit appropriate for
bargaining purposes. We see no reason for departing from the
wishes of the parties in this regard and we shall adopt the stipulated
unit.
We find that all the employees of the Company at its Bloomington,
Indiana, plants, excluding foremen and salaried and office employees,
constitute a unit appropriate for the purposes of collective bargain-
ing and that said unit will insure to employees of the Company at
its Bloomington, Indiana, plants the full benefit of their right to
self-organization and to collective bargaining and otherwise effectu-
ate the policies of the Act.
VI. THE DETERMINATION OF REPRESENTATIVES
The Company's pay rolls for February 7, March 10, and April 2Q
1939, were introduced in evidence. The pay roll of February 7 con-
tains the names of 861 persons of whom 704 were then working; the
pay roll of March 10 contains the names of 857 persons of whom 714
were then working; and the pay roll of April 20 contains the names
of 848 persons of whom 701 were then working.?
9 See Matter of Todd-Johnson Dry Docks Inc and Industrial Union of Marine and
Shipbuilding Workers of America, Local No. 29, 10 N. L R. B. 629.
7 Employees temporarily laid off because of a reduction in force are retained on the
Company's pay roll until they quit , are discharged , or unreasonably fail to respond when
called back to work.
834 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
The United had its financial records available at the hearing for
inspection and submitted in evidence a list of its members who had
paid dues up to March 31, 1939. The list contains 684 names. The
United also submitted in evidence membership application cards
signed by approximately 626 persons during the spring of 1939 and
designating the United as bargaining representative. The National
submitted affidavits signed in April 1939 by 37 persons stating that
they had signed the United's cards under protest and that they de-
sired the National as their bargaining representative.
The National introduced in evidence cards entitled "Petition for
Change of Bargaining Agency," signed between January and March
1939 by 221 persons, in which the National was designated as bar-
gaining representative. The United submitted affidavits of 10 per-
sons "retracting" their signatures on the National's cards. At the
hearing, two other employees testified that they had withdrawn their
designation of the National as bargaining representative.
The facts set forth above indicate that the United has a member-
ship in excess of a majority among the employees of the Company
in the appropriate unit, and that more than a majority of such em-
ployes have, by membership application cards, designated the
United as their bargaining representative. The facts further show,
however, that a substantial number of the employees in the appro-
priate unit have designated the National as their bargaining repre-
sentative. The National asserts, moreover, that many employees de-
sirous of representation by it have been hesitant so to indicate because
of the closed-shop agreement between the United and the Company.
The evidence shows in this connection that, in the early part of 1939,
there was posted in the plant a letter signed by the United's Inter-
national representative stating that employees signing A. F. of L.
cards or rendering it support would be deprived of their member-
ship in the United or otherwise penalized; that several employees
were fined by the United because they had assisted the National;
and that, as the employees failed to pay the fines, the United refused
to accept their dues, suspended them from membership in the organi-
zation, and caused the Company to lay them off.
In view of all the circumstances, we find that the question which
has arisen concerning the representation of employees of the Com-
pany can best be resolved by the holding of an election by secret
ballot. We shall direct that the election be held among those persons
in the appropriate unit employed by the Company during the pay-
roll period next preceding the date of the issuance of this Direction
of Election , including employees who did not work during such
period because they were temporarily laid off, ill , or on vacation, but
excluding those employees who have since quit or been discharged
for cause.
SHOWERS BROTHERS COMPANY, INCORPORATED 835
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 Showers Brothers Company, Inc., Bloom-
ington, Indiana, at its Bloomington, Indiana, plants, within the
meaning of Section 9 (c) and Section 2 (6) and (7) of the National
Labor Relations Act.
2. All the employees of the Company at its Bloomington, Indiana,
plants, excluding foremen and salaried and office employees, 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 power vested in the National
Labor Relations Board by Section 9 (c) of the National Labor Re-
lations Act, and pursuant to Article III, Sections 8 and 9, of National
Labor Relations Board Rules and Regulations-Series 2, it is hereby
DIRECTED that, as part of the investigation ordered by the Board
to ascertain representatives for the purposes of collective bargain-
ing with Showers Brothers Company, Inc., Bloomington, Indiana,
at its Bloomington, Indiana, plants, an election by secret ballot
shall be conducted within fifteen (15) days from the date of this
Direction of Election 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 all the
employees of Showers Brothers Furniture Company, Inc., at its
Bloomington, Indiana, plants, employed during the pay-roll period
next preceding the date of the issuance of this Direction of Election,
including employees who did not work during such period because
they were temporarily laid off, ill, or on vacation, but excluding fore-
men and salaried and office employees, and employees who have since
quit or been discharged for cause, to determine whether they desire
to be represented by National Furniture Workers, Local No. 1, of
the Upholsterers International Union of North America, affiliated
with the American Federation of Labor, or by United Furniture.
Workers, Local Industrial Union No. 496, affiliated with the Congress
of Industrial Organizations, for the purposes of collective bargaining,
or by neither.