National Labor Relations Board v. Automotive Maintainance Machinery Co.

116 F.2d 350, 7 L.R.R.M. (BNA) 491, 1940 U.S. App. LEXIS 2671
CourtCourt of Appeals for the Seventh Circuit
DecidedDecember 12, 1940
DocketNo. 7349
StatusPublished
Cited by11 cases

This text of 116 F.2d 350 (National Labor Relations Board v. Automotive Maintainance Machinery Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Labor Relations Board v. Automotive Maintainance Machinery Co., 116 F.2d 350, 7 L.R.R.M. (BNA) 491, 1940 U.S. App. LEXIS 2671 (7th Cir. 1940).

Opinion

EVANS, Circuit Judge.

The abbreviations here used are explained in the margin.1

Upon petition of the SWOC, the Board issued its complaint, February 21, 1938, wherein respondent was charged with unfair labor practices, in the following respects: (1) Initiating and sponsoring AMMCO and subsequently dominating said organization and then recognizing AM-MCO as its employees’ sole bargaining representative; (2) refusal to bargain with Amalgamated; (3) the discharge and refusal to reinstate four employees because they were active in Amalgamated; (4) intimidating its employees in the exercise of their fight to self-organization.

Respondent denied all unfair labor practices ; admitted it had bargained with AMMCO and had done so because the latter was the duly constituted bargaining representative of a large majority of its employees.

A trial followed; AMMCO intervened. The examiner made his report which was unfavorable to respondent. He therein stated the facts testified to by witnesses for CIO and omitted all facts favorable to respondent and supported by the testimony of numerous witnesses. The Board approved the report and ordered respondent to cease and desist (a) dominating AMMCO or contributing financial support thereto; (b) dominating and interfering with its employees in the exercise of their right to self-organize; (c) recognizing AMMCO as the employees’ representative for collective bargaining; (d) giving effect to its contract with AMMCO, and directing a withdrawal of all recognition of AMMCO; (e) directing respondent to offer reinstatement to three employees, and to make them whole for any loss suffered by reason of their discharge.

Jurisdiction of the Board is not open to question. The stipulated facts bring the case within the rule governing the Board’s jurisdiction, announced in National Labor Relations Board v. Fainblatt, 306 U.S. 601, 59 S.Ct. 668, 83 L.Ed. 1014.

The well-nigh undisputed evidence shows the following fact situation: Respondent’s plant is located close to Fansteel Metallurgical Company’s plant — an open field, only, separating them. During the winter and spring of 1937, agitation and lawlessness occurred in the Fansteel plant which culminated in the sit down strike in February. See National Labor Relations Board v. Fansteel Corp., 306 U.S. 240, 59 S.Ct. 490, 83 L.Ed. 627, 123 A.L.R. 599; Fansteel Corp. v. National Labor Relations Board, 7 Cir., 98 F.2d 375. The unrest spread to respondent’s plant where, up to April, 1937, there was no labor organization of any kind.

The efficiency of the men became lower and production fell off. Instead of working steadily, employees gathered from time to time into small groups to discuss labor conditions generally and the local labor situation in particular.

In April, discussion ran to Amalgamated. Organizers of SWOC contacted some of the employees and a substantial percentage joined. Travis, the respondent’s superintendent, made inquiries of the employees and their activities and expressed opposition to the CIO. At least some witnesses so testified. He denied it.

The unrest resulted in a further reduction in production and Wacker, respondent’s president, called on Travis to “get production back to its normal efficiency.” In an attempt to do so, Travis named an employee, Maguire, a member of the CIO to pass a ballot box around and let the men vote on whether they wanted an inside or outside union. Maguire was told, “It was none of his business, nor of mine, either, how the men voted.” Maguire passed the box and a secret ballot was taken. 29 were for an inside union, 14 were for an outside union. Two ballots were blank; one employee was not at his bench.

[352]*352The employees then asked if they could have a meeting at 4 P. M. that afternoon. The request was granted upon authorization of the president.

The employees .met; a committee and officers were selected. A counsel was employed and AMMCO was born. Its purpose was to bargain with the management concerning wages, hours of work, and labor conditions. Respondent gave its pledge “that no attempt will be made by the management at ány time to influence the action of the AMMCO except through discussion and negotiation with your Committee.”

A subsequent meeting was held where a general wage increase was demanded, upon which respondent asked for time, and requested as an alternative proposition, an expression from employees as to whether they wanted a forty or forty-four hour week. They were told the answer to this query should precede consideration of wage.

AMMCO again met and directed its officers to demand a closed shop agreement. The organization moved toward more complete unionization. Meetings were held by the men during the noon hour. Wages and hours and conditions of work were the chief subject of discussion. The bargaining committee met periodically with the management. AMMCO’s attorney was engaged in drawing up a closed shop agreement. Respondent expressed an unwillingness to deal with a body which was not incorporated and therefore not “legally responsible.” Some weeks later officers of AMMCO learned that a committee from CIO was trying to negotiate with Travis and the employees met in a mass meeting after working hours and again recognized AMMCO as their collective bargaining agent. Its president went to Springfield and secured the incorporation of AMMCO. Again a bargaining committee approached the management for a raise in pay and other matters connected with their employment. This time the request was granted.

On July 1, 1937, AMMCO’s first meeting away from the property was held, dues were fixed, and collected, and money was had to pay rent. By-laws were adopted. Application cards were printed and formality was given to the previous organization efforts. Thereafter, AMMCO served as the sole bargaining agent for the employees. On November 15, 1937, employer entered into a written contract recognizing it as the sole bargaining agent. Membership in it was made a condition of employ-1 ment, and the company agreed to pay the best wages in keeping with the income of the company and sound business judgment. It agreed to pay 1% wages for overtime, but reserved the right to reduce hours of work, if necessary, but only after consultation with AMMCO’s bargaining committee.

A committee for handling of grievances was provided for. AMMCO agreed to refrain from calling a strike until all efforts to arbitrate had failed. The agreement was to remain in force one year, unless AMMCO before that time ceased to represent a majority of the employees or dissolved its corporate existence, in which case the agreement was automatically terminated.

During this time the CIO launched a vigorous membership drive. The record shows five or six, and perhaps more, of the employees joined both organizations, testifying that they did so “in order to be safe no matter which organization won out.”

One Mills, the representative of the CIO, and .organizer for the SWOC, appointed a committee to see the superintendent and arrange a meeting for him to discuss the status of the CIO with the Company. The hour set was two P. M., Saturday afternoon, May 15th, 1937.

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116 F.2d 350, 7 L.R.R.M. (BNA) 491, 1940 U.S. App. LEXIS 2671, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-automotive-maintainance-machinery-co-ca7-1940.