The Modecraft Co., Inc.

National Labor Relations Board - Board Decisions

Oct 3, 1940

27 N.L.R.B. 634 (N.L.R.B. 1940)

In the Matter of THE MODECRAFT CO., INC. and UNITED FURNI FURE
WORKERS OF AMERICA, AFFILIATED WITH THE C. I. O.
Case No. C-1675.-Decided October 3, 1940
Jurisdiction : beauty parlor equipment manufacturing industry.
Settlement : stipulation providing for compliance with the Act.
Remedial Orders : entered on stipulation.
Mr. Jerome I. Maeht, for the Board.
Fields, Katz and Fiedelbaum, by Mr. Julius Fiedelbaum, of New
York City, for the respondent.
Mr. Zoel Buriclcson, of New York City, for the United.
Mr. Robert F. Koretz, of counsel to the Board.
DECISION
AND
ORDER
STATEMENT OF THE CASE
Upon charges duly filed by United Furniture Workers of America,
affiliated with the C. I. 0., herein called the United, the National
Labor Relations Board, herein called the Board, by the Regional Di-
rector for the Fourth Region (Philadelphia, Pennsylvania), issued
its complaint dated September 6, 1940, against The Modecraft Co.,
Inc., Muncy, Pennsylvania, herein called the respondent, alleging
that the respondent had engaged in and was engaging in unfair labor
practices affecting commerce, within the meaning of Section 8 (1) and
(2) and Section 2 (6) and (7) of the National Labor Relations Act,
49 Stat. 449, herein called the Act. A copy of the complaint, accom-
panied by notice of hearing, was duly served upon the respondent,
upon the United, and upon Independent Association of Modecraft
Employees, also known as and herein called the Committee, a labor
organization alleged in the complaint to be dominated by the
respondent.
With respect to the unfair labor practices, the complaint alleged
in substance: (1) that the respondent in or about July 1937 caused
to be organized and interfered wtih the formation of the labor or-
ganization herein called the Committee, in that the respondent,
27 N. L. R. B., No. 118.
634
I
THE MODEC 'RAFT C 'O.1 1NC. 635
through its officers , representatives , supervisory employees , and agents,
(a) since in or about July 1937 , initiated the idea of forming the Com-
mittee at , its plant ; (b) cautioned , advised, and urged its employees
not to join the United; ( c) during the month of July 1937 circulated
at its plant among its employees , during working hours and on com-
pany time and at respondent 's expense , an agreement which provided,
inter alia , that "all employees represent and agree that they shall
not, under any circumstances become members of any other labor
organization or union during the term of this agreement ;" and that
in the event that any employee becomes a member ' of any other labor
organization , the respondent shall have the right to dispense with
his services forthwith ; ( d) entered into the aforesaid agreement dated
July 12, 1937,'with its individual employees and the Committee; (e)
on or about December 29, 1938, entered into a further agreement with
the Committee which provided , inter a7ia, that "all employees repre-
sent and agree that they shall not under any circumstances become
members of any other labor union or organization during the term of
this agreement ," that in the event that any employee becomes a mem-
ber of any other labor organization the respondent shall have the right
to dispense with his services forthwith ; ( f) on or about December 30,
1939, entered into an agreement with the Committee which provided,
inter alia , for a "closed shop" and that "all employees represent and
agree that they shall not under any circumstances become mem-
bers of any other labor union or organization during the term of this
agreement ," and that in the event that any employee becomes a mem-
ber of any other labor organization the respondent shall have the right
to dispense with his services forthwith; (g) in various and sundry
other ways well known to the respondent dominated and interfered
with the formation of the Committee; and (2) by the foregoing acts
and other acts the respondent has interfered with, restrained, and
coerced its employees in the exercise of the rights guaranteed in Section
7 of the Act.
Pursuant to notice , a hearing was held in Philadelphia , Pennsyl-
vania, on September 19, 1940, before Henry J. Kent, the Trial Ex-
aminer duly designated by the Board. The Board was represented
by counsel and participated in the hearing . The respondent, the
United, and the Committee did not enter an appearance . At the out-
set of the hearing the Trial Examiner received in evidence a stipula-'
tion, dated September 17, 1940, in settlement of issues in the case,
subject to the approval of the Board , entered into by the respondent]
the United , and counsel for the Board. Thereupon the Trial Exam-
iner adjourned the hearing sine die pending consideration of the stipu-
lation by the Board.
636 DECISIONS OP--NATIONAL LABOR -RELATIONS BOARD
The stipulation,provides as follows :
STIPULATION
It is hereby stipulated by and between The Modecraft Co:, Inc:,
respondent, hereinafter referred to as the respondent; United
Furniture Workers of America, affiliated with the C. I. 0., a party,
hereinafter referred to as the Union; and Jerome I. Macht, attor-
ney for the National Labor Relations Board, that:
I. Upon a charge duly filed by the Union, the National Labor
Relations Board, by the Regional Director for the Fourth Region,
acting pursuant to authority granted in Section 10 (b) of the
National Labor Relations Act (49 Stat. 449) and its Rules and
Regulations, Series 2, as amended, Article IV, Section 1, issued its
complaint on the 6th day of September, 1940, against The Mode-
craft Co.; Inc., respondent herein.
II. Respondent is and has been since in or about March 1933
a corporation organized and existing by virtue of the laws of the
State of New York, having its principal offices in the City of
New York, State of New York, and a plant in the Town of Muncy,
State of Pennsylvania, and is now and has continuously been
engaged at its plant in the Town of Muncy, State of Pennsylvania,
hereinafter referred to as the Muncy plant, in the manufacture,
sale and distribution of furniture and fixtures for the beauty
parlor industry.
III. Respondent, in the course and conduct of its business at its
Muncy plant uses, among other things, the following principal
raw materials: lumber, upholstery -items, and hardware; and ac-
quires 80-percent of these materials in States of the United States
other than the State of Pennsylvania, and in the course and con-
duct of its business causes and has continuously caused approxi-
mately 80 percent of its raw materials to be transported in inter-
state commerce from and through States of the United States
other than the State of Pennsylvania, to its Muncy plant, in the
State of Pennsylvania, and there these raw materials are manu-
factured by the respondent into the products enumerated in
paragraph II, above.
IV. Respondent manufactures the products set forth above in
paragraph II at the Muncy plant, and causes and has continuously
caused approximately 75 percent of these products produced by it
to be sold and transported in interstate commerce from its Muncy
plant to, into and through States of the United States other than
the State of Pennsylvania. The total amount of products manu-
factured, sold and distributed by the respondent at its Muncy
plant for=the fiscal year 1939 -was, approximately.$.180,000.00.
THE MODIECRAFT CO., iNC. 637
V. Respondent is engaged 'in interstate commerce within the
meaning of the National Labor Relations Act, and the decisions
of the United States Supreme Court thereunder.
VI. Respondent, in the course and conduct of its business at
it's Muncy plant, as above set forth, employs approximately 60
employees. The payroll for the last fiscal year amounted to
approximately $59,000.00.
VII. This Stipulation, together with the Charge, Complaint,
Notice of Hearing, and Rules and Regulations, Series 2, as
amended, of .the National Labor Relations Board, shall consti-
tute the entire record herein and may be admitted in evidence by
filing them with the Trial Examiner of the National Labor Rela-
tions Board designated by said board to conduct a hearing
.herein.
VIII. All the parties hereto waive their right to. a hearing,
and to the making of findings of fact and conclusions of law by
the National Labor Relations Board, pursuant to the provisions
of the National Labor Relations Act, and to any other or further
.procedure before said Board, thereby dispensing with' the neces-
sity for the hearing provided for in the said Complaint and
Notice of Hearing.
IX. Upon the record herein and upon this Stipulation, if
approved by the National Labor'Relations Board,°an order may
be entered by the Board providing as follows : °
Respondent, The Modecraft Co., Inc., its officers, agents, suc
cessors and assigns shall:
1. Cease and desist from :
(a) In any manner interfering with, restraining or coercing
its employees in the exercise of their rights to self-organization.
to form, join; or assist labor organizations, to bargain collectively
through 'representatives of their own• choosing, and. to engage.
in concerted activities for the purpose of collective bargaining or
other mutual aid or protection, as guaranteed in Section 7 of
the National Labor Relations Act;
(b) Discouraging membership in United Furniture Workers
of America, affiliated with the C. I. 0., or any other labor or-
ganization of its employees, or encouraging membership in the
labor organization known as the Independent Association of
Modecraft Employees, also known as the Committee, or any other
labor organization of its employees; by discriminating against
employees in regard to hire or tenure of employment or any
condition of employment or in 'any other manner;
(c) In any manner' dominating or interfering-with 'th'e,admin-
istration of the Independent Association of Modecraft Employees,
638 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
also known as the Committee , and with the formation or -admin-
istration of any other labor organization of its employees, or
from contributing other aid or support to said organization;
from recognizing or dealing in any manner with the Independent
Association of Modecraft Employees , also known as the Com-
mittee, or any successor thereto, or any group that purports to
represent said organization ; or from . forming or maintaining
any groups or designating any individuals to act as the repre-
sentatives of the employees for the purposes of collective bar-
gaining respecting any of the terms or conditions of employment;
(d) Giving effect to its contracts with the Independent Asso-
ciation of Modecraft Employees , also known as the Committee;
2. Take the following 'affirmative action :
(a) Withdraw all recognition from the Independent Associa-
tion of Modecraft Employees , also known as the Committee, as
the representative of its employees , or any of them , for the pur-
pose of dealing with respondent concerning grievances , labor dis-
putes, wages, rates of pay , hours of employment , or other con-
ditions of employment ; and so disestablish said Independent
Association of Modecraft Employees , also known as the Com-
mittee, as the representative of its employees;
(b) Inform each and every one of its employees that the con-
tract entered into on or about December 30 , 1939, and all other
agreements with the Independent Association of Modecraft-Em-
ployees, also known as the Committee , are null and void, and
that the respondent will discontinue said agreements and will
desist in any manner from giving effect to said agreements;
(c) Inform in writing the officers of the Independent Asso-
ciation of Modecraft Employees , also known as the Committee,
that respondent will not in any manner deal with or recognize
the Independent Association of Modecraft Employees , also known
as the Committee;
(d) Post immediately in conspicuous places at its Muncy'plant
and maintain for a period of at least sixty ( 60) consecutive days
from the date of posting , notice to its employees stating: (1)
that the respondent will not engage in the conduct from which
it is ordered to cease and desist in paragraph 1 (a), (b), (c) and
(d) -of this order ; and (2 ) that the respondent will take the
affirmative action set forth in paragraph 2 (a), (b) and (c)
of this order;
(e) Notify the Regional Director for the Fourth Region within
ten (10 ) days from the date of this order what steps the respond-
ent will take to comply with this order.
THE MODECRAFT CO., INC. 639
X. Respondent, The Modecraft Co., Inc., hereby consents to the
entry by the appropriate United States Circuit Court of Appeals,
upon, application by the National Labor Relations Board, of a
consent decree enforcing the order of the Board in the form here-
inabove set forth, and waives its right to contest the entry of such
decree, expressly waiving its right to receive notice of the filing by
the National Labor Relations Board of an application for the
entry of such a decree.
XI. It is stipulated and agreed. that the notice, as provided in
paragraph IX, 2 (d) shall be posted by respondent immediately
upon approval of this stipulation by the Board.
XII. It is stipulated and agreed that the respondent will comply
with the provisions set forth above in paragraphs IX, 1 and 2, im-
mediately upon approval of this stipulation by the Board.
XIII. It is further stipulated and agreed that this stipulation
is subject to the approval of the National Labor Relations Board.
XIV. This stipulation contains the entire agreement of the
parties, and there is no verbal agreement of any kind which varies,
alters, or adds to this'stipulation.
On September 24, 1940, the Board issued its order approving the
above stipulation and making -it a part of the record in the case, and
directing that the proceeding be transferred to and continued before
the Board for the purpose of entry of a decision and order by the
Board, pursuant to the provisions of the stipulation.
Upon the above stipulation and upon the entire record in the case,
the Board makes the following:'
FINDINGS OF FACT
1. THE BUSINESS OF THE RESPONDENT
The-Modecraft Co., Inc., is-a New York corporation with its prin-
cipal "office in New York City, and a plant in Muncy, Pennsylvania,
hereinafter called the Muncy plant, where it is engaged in the manu-
facture, sale, and distribution of furniture and fixtures for the beauty
parlor industry. The respondent causes approximately 75 percent
of such products to be transported from the Muncy plant to, into,
and through States of the United States other than the State of Penn-
sylvania. In the course of manufacturing its products at the Muncy
plant, the respondent uses raw materials consisting'principally of lum-
ber, upholstery items, and hardware. Approximately 80 percent of
such raw materials are acquired in States of the United States other
than the State of Pennsylvania, and transported from and through
such States to the Muncy plant. The respondent's gross sales of prod-
I
640 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ucts for the fiscal year 1939 amounted to approximately $180,000. The
,respondent employs about _ 60 persons at the Muncy plant ; its total pay
roll for the fiscal year 1939 amounted to approximately $59,000. The
respondent admits that it is engaged in commerce within the meaning
of the Act.
We find that the above -described operations of the respondent, The
Modecraft Co., Inc., constitute a continuous flow of trade , traffic, and
commerce among the several States of the United States.
II. THE ORGANIZATIONS INVOLVED
United Furniture Workers of America , affiliated with Congress of
Industrial Organizations , and Independent Association of Modecraft
Employees , also known as the Committee, are labor organizations
within the meaning of Section 2 (5) of the Act.
ORDER
Upon the basis of the above findings of fact, stipulation, and upon
the entire record in the case, and pursuant to Section 10 (c) of the
National Labor Relations Act, the National Labor Relations Board
hereby orders that the respondent, The Modecraft Co., Inc., its officers,
agents, successors and assigns shall :
1. Cease and desist from :
(a) In any manner interfering with, restraining, or coercing its
employees in the exercise of their rights to self-organization, to form,
join, or assist labor organizations , to bargain collectively through
representatives of their own choosing, and to engage in concerted
activities for the purpose of collective bargaining or other mutual
aid or protection , as guaranteed in Section 7 of the National Labor
Relations Act;
(b) Discouraging membership in United Furniture Workers of
America, affiliated with the C. I. 0., or any other labor organization
of its employees , or encouraging membership in the labor organization
known as the Independent Association of Modecraft Employees, also
known as the Committee , or any other labor organization of its em-
ployees, by discriminating against employees in regard to hire or
tenure of employment or any condition of employment or in any other
manner;
(c) In any manner dominating or interfering with the adminis-
tration of the Independent Association of Modecraft employees, also
known as the Committee , and with the formation or administration
of any other labor organization of its employees, or from contributing
other aid or support to said organization;-from recognizing or dealing
in any manner with the Independent Association of Modecraft Em-
THE MODECRAFT CO., INC. 641
ployees, also known as the Committee, or any successor thereto, or any
group that purports to represent said organization; or from forming
or maintaining any groups or designating any individuals to act as the
representatives of the employees for the purposes of collective bargain-
ing respecting any of the terms or conditions of employment;
(d) Giving effect to its contracts with the Independent Association
of Modecraft Employees, also known as the Committee.
2. Take the following affirmative action to effectuate the policies of
the Act :
(a) Withdraw all recognition from. the Independents Association of
Modecraft Employees, also known as the Committee, as the represen-
tative of its employees, or any of them, for the purpose of dealing
with respondent concerning grievances, labor disputes, wages, rates
of pay, hours of employment, or other conditions of employment, and
so disestablish said Independent Association of Modecraft Employees,
also known as the Committee, as the representative of its employees;
(b) Inform each and every one of its employees that the contract
entered into on or about -December 30, 1939, and all other agreements
with the Independent Association of Modecraft Employees, also known
as the Committee, are null and void, and that the respondent will dis-
continue said agreements and will desist in any .manner from giving
effect to said agreements;
(c) Inform in writing the officers of the Independent Association
of Modecraft Employees, also known as the Committee, that respond-
ent will not in any manner deal with or recognize the Independent
Association of Modecraft Employees, also known as the Committee;
(d) Post immediately in conspicuous places at its Muncy plant
and maintain for a period of at least sixty (60) consecutive days from
the dateof posting, notice to its employees stating: (1) that the re-
spondent will not engage in' the conduct from which it is ordered- to
cease and desist in paragraphs 1 (a), (b), (c), and (d) of this Order;
and (2) that the respondent will take the affirmative action set forth
in paragraphs 2 (a), (b), and (c) of this Order;
(e) Notify the regional Director for the Fourth Region within
ten (10) days from the date of this Order what steps the respondent
will take to comply with this Order.
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