Tennessee Coal, Iron & Railroad Co.

National Labor Relations Board - Board Decisions

Mar 2, 1942

39 N.L.R.B. 402 (N.L.R.B. 1942)

In the Matter of TENNESSEE COAL, IRON & RAILROAD CO., HOLT BLAST
FURNACE and FEDERAL LOCAL #22871, HOLT, ALABAMA
Case 'No. R-3!63.Decided March 19,, 19/,2
Jurisdiction : iron and steel products manufacturing industry.
Investigation and Certification of Representatives : existence of question : refusal
to accord union recognition until certified by the Board ; contract for members
only with intervening union entered into prior to acquisition of plant involved,
no bar to; election necessary.
Unit Appropriate for Collective Bargaining : production and maintenance em-
ployees excluding foremen, assistant foremen, supervisors in charge of any
classes of labor, guards, watchmen, clerical, and salaried employees
at Company's recently acquired plant located 55 miles from Company's other
steel plants, held to constitute an appropriate unit notwithstanding claim of
intervening union that the appropriate unit consists of all the Company's
plants where among other circumstances the operation of the plant is in all
probability temporary ; and where the union contending that the plant is an
inappropriate unit, had previously entered into consent election agreement
at this plant.
Mr. Borden Burr, of Birmingham; Ala., for the Company.
Mr. Robert R. Moore, Mr. W. O. Hare, and Mr. R. 0. Ross, of Bir-
mingham, Ala., for the Federal.
Parsons Mitch (by Mr. William E. Mitch) and Mr. Noel R. Bed-
dow, of Birmingham, Ala., for the S. W O. C.
Mr. Charles W. Schneider, of counsel to the Board.
DECISION
AND
DIRECTION OF ELECTION
STATEMENT OF THE CASE
On October 31, 1941, Federal, Local #22871, affiliated with the
American Federation of Labor, herein called the Federal, filed with
the Regional Director for the Tenth Region (Atlanta, Georgia) a
petition alleging that a question affecting commerce had arisen con
cerning the representation of employees of Tennessee Coal, Iron &
Railroad Co., Holt Blast Furnace, Holt, Alabama, and requesting an
investigation and certification of representatives pursuant to Section
39 N. L R. B., No. 69.
402
TENNESSEE COAL, IRON & RAILROAD CO. - 403
9 (c) of the National Labor Relations Act, 49 Stat . 449, herein called
the Act . On December 23, 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 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 December 31, 1941, the Regional Director issued a notice of hear-
ing, and on January 8 , 1942, an amended notice of hearing, copies of
both of which were duly served upon the Company , the Federal, and
also upon Steel Workers Organizing Committee , herein called the
S. W. O. C., a labor organization claiming to represent employees
directly affected by the investigation.
Pursuant to notice a hearing was held on January 16 , 1942, at Tus-
caloosa, Alabama, before John C. McRee , the Trial Examiner duly
designated by the Chief Trial Examiner. The Company, the Federal.
and the S. W. O. C. were represented at, and participated in, the hear-
ing. Full opportunity to be heard , to examine and cross -examine wit-
nesses , 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 evi-
dence. The Board has reviewed the rulings of the Trial Examiner and
finds that no prejudicial errors were committed . The rulings are
hereby affirmed.
The Company and the S. W. O. C. filed briefs which the Board has'
considered.
Upon the entire record in the case, the Board makes the following :
FINDINGS OF FACT
I. THE BUSINESS OF THE COMPANY
Tennessee Coal, Iron & Railroad Co ., a subsidiary of United , States
Steel Corporation , is a Tennessee corporation , having its principal
office and place of business in Birmingham , Alabama, and maintaining
offices in other parts of the country in connection with the sale of its
products . It is engaged in the manufacture and fabrication of. steel
and steel products ; a large portion of which are shipped to foreign
countries and to States other than Alabama. The.Company employs
approximately 32,000 persons . Approximately 98 percent of the prod-
ucts of the Company go into the performance of war defense con-
tracts, and the distribution of these products is allocated by the War
Production Board.
The Company admits, that it is ' within the jurisdiction of the Board
for the purposes of this proceeding.
404 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
II. THE ORGANIZATION INVOLVED
Federal Local #22871 is a labor organization affiliated with the
American Federation of Labor, admitting to membership employees
of the Company.
Steel Workers Organizing Committee is a labor organization affili-
ated with the Congress of Industrial Organizations, admitting to
membership employees of the Company.
III. THE QUESTION CONCERNING REPRESENTATION
On September 26, 1941, the Federal notified the Company that it
represented a majority of the employees at the Company's Holt Blast
Furnace, Holt, Alabama, and requested the execution of an exclusive
bargaining contract. The Company refused such recognition until
the Federal was certified by the Board. Both the Federal and the
S. W. O. C. submitted substantial evidence of representation among
employees in the alleged appropriate unit,, -
The S. W. O. C. asserts that an existing members-only contract
which it has with the Company is a bar to an election. This contract
was executed on April 1, 1941, and is to continue in effect until changed
or terminated on 20 days' written notice. The agreement recognizes
the S. W. O. C. as the collective bargaining representative of its
members employed in and about the Company's steel manufacturing
and byproduct coke plants, excluding foremen, assistant foremen,
or supervisors in charge of any classes of labor, watchmen, guards,
clerical, or salaried employees. The Holt Blast Furnace was not in
operation at the time this contract was executed, nor was its
acquisition by the Company then contemplated.
We find that the contract does not constitute a bar to an election
at Holt, and 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
i The Federal submitted to a Field Examiner of the Board 110 authorization-membership
cards, all bearing apparently genuine original signatures , and all dated during September.
October, November, and December 1941. All 110 signatures were the names of persons
on the Company's November 10, 1941, pay roll.
The S. W. O. C. submitted 120 similar cards ; 114 dated in August, September, and
October, 1941, and 6 undated. One hundred and seventeen contained apparently genuine
original signatures ; 3 bore printed signatures . Seventy-eight of the 117 signatures were
the names of persons on the Company's November 10, 1941, pay roll.
There were 264 employees in the alleged appropriate unit according to the November
10, 1941 , pay roll.
TENNESSEE COAL , IRON '& RAILROAD Co. 405
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 Company and- the Federal contend that the appropriate unit
consists of all production and maintenance employees of the Holt
Blast Furnace, excluding foremen, assistant foremen, supervisors in
charge of any classes of labor, guards, watchmen, clerical, and sal-
aried employees. In addition to contending that its contract with the
Company constituted a bar to an election, the S. W. O. C. also con-
tends that a bargaining unit confined to the employees of Holt is inap-
propriate for the reason that the appropriate unit consists of all the
Company's manufacturing plants, including Holt. The S. W. O. C.
did not, however, request an election in such unit.
The Manufacturing Division of the Company consists of six adja-
cent steel plants located in Jefferson County, near Birmingham, Ala-
bama. The S. W. O. C. urges that Holt should be considered a part
of the Manufacturing Division for bargaining purposes.
The Holt Blast Furnace is located at Holt, Alabama, 55 miles from
the Birmingham plants. It appears that Holt had been out of opera-
tion for about 10 years when, at the insistence of the Office of Pro-
duction Management, it was purchased, renovated, and reopened by
the Company, about September 1, 1941, for the production of foundry
iron for Company customers manufacturing defense goods. The
Company had' formerly produced such iron at the Birmingham blast
furnaces, but was not under contract to do so. The Birmingham fur-
naces now manufacture no foundry iron whatever. The 'distribution
of the entire output of Holt, as well as the output of the Company's
other plants, is allocated by the War Production Board.' Although
Holt is under the same general supervision as the Birmingham plants,
it is not considered by the Company to be a permanent part of the
Manufacturing Division, was renovated with the expectation of
being operated for not more than 2 years, and will in all probability
be abandoned after the national emergency has passed. Due to the
fact that its output has proved greater than was anticipated, Holt
is also producing'some basic iron which is used at the Birmingham
plants in the manufacture of, steel. When the monthly quota of
foundry iron has been produced, the Holt furnace is converted to the
manufacture of basic iron for the remainder of the month. Thus far,
about 10 percent of Holt's capacity has been devoted 'to such produc-
tion. However, the basic iron manufactured by Holt is merely over-
z Referred to in the record as the Office of Production Management.
406 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
flow and is not needed for the continued operation of the Birmingham
plants.
The labor used at Holt is native to that region except for 12 to
15 keymen, mostly supervisors, who were transferred from Bir-
mingham plants . There is no other interchange of employment.
Wage rates for basic labor are 8 to 10 cents per hour lower, at Holt
than at Birmingham.
On November 12, 1941, the Company, the Federal, and the S. W.
O. C. entered into an agreement for a consent election at Holt. The
bargaining unit provided by the agreement was the same as that'
urged here by the Company and the Federal . The election was
scheduled for December 19, 1941, but on December 15 the S. W. O. C.
notified the Regional Director that'it withdrew its consent.
In view of these circumstances , we are of the opinion, that the
employees of the Holt Blast Furnace constitute an appropriate bar-
gaining - unit at this time.
We find that' all production and maintenance employees of the
Holt Blast Furnace, excluding foremen, assistant foremen, super-
visors in charge of any classes of labor, • guards, watchmen , clerical,
and salaried employees , constitute a unit appropriate for the pur-
poses of collective bargaining , and that said unit will insure to the
employees of the Company the full benefit of their right , to self-
organization and to collective bargaining and otherwise will 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 an election by secret ballot. We shall
direct that the employees of the Company eligible to vote in the
election shall be those in the appropriate unit employed during the
pay-roll , period immediately preceding this Direction of Election,
subject to the limitations and additions set forth in the Direction.
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 rep
resentation of employees of Tennessee Coal, Iron & Railroad Co.,
Holt Blast Furnace, Holt, Alabama ,'within the meaning of Section
9 (c) and Section 2 (6) and ,( 7) of the Act.
=2. All production and maintenance employees of the , Holt Blast
Furnace, excluding foremen, assistant foremen, supervisors in charge
of any classes of labor, guards , watchmen, clerical , and salaried em-
TENNESSEE COAL , IRON & RAILROAD CO. 407
ployees, constitute a unit appropriate for the purposes of collective
bargaining within the meaning of Section 9 (b) of the 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, 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 bargaining
with Tennessee Coal, Iron & Railroad Co., Holt Blast Furnace, Holt,
Alabama, 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 Tenth 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 production
and maintenance employees of the Holt Blast Furntice who were
employed during the pay-roll period immediately preceding the-date
of this Direction of Election, 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, but excluding foremen, assistant foremen, super-
visors in charge of any classes of labor, guards , watchmen, clerical,
and salaried employees , and employees who have since quit or been
discharged for cause , to determine whether they desire to be repre-
sented by Federal Local #22871 , A. F. L., or by Steel Workers
Organizing Committee , C. I. 0., for the purposes of collective
bargaining, or by neither.
CHAIRMAN' MILLTS took no part' in the consideration of the above
Decision and Direction of Election.