National Labor Relations Board v. Gutmann & Co.

121 F.2d 756, 8 L.R.R.M. (BNA) 786, 1941 U.S. App. LEXIS 3319
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 12, 1941
DocketNo. 7585
StatusPublished
Cited by6 cases

This text of 121 F.2d 756 (National Labor Relations Board v. Gutmann & 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. Gutmann & Co., 121 F.2d 756, 8 L.R.R.M. (BNA) 786, 1941 U.S. App. LEXIS 3319 (7th Cir. 1941).

Opinion

EVANS, Circuit Judge.

Should the court give petitioner an enforcement order, Sec. 10(c) of the National Labor Relations Act, 29 U.S.C.A. § 160(c), against respondent, to carry out the Labor Board’s order?

Respondent, an Illinois corporation, is, and since 1892 has been, engaged in the tanning business. It has two plants and employs (did in spring of 1937) about 350 employees, 32 of whom are foremen and sub-foremen.

Its business is so interstate in character as to bring it within the provisions of the Act. Jurisdiction of its labor controversy by the Labor Board is not disputed.

The history of this labor controversy goes back to the fall of 1934 when an unaffiliated union attempted to organize respondent’s employees. Very shortly thereafter a so-called inside organization, known as the Workers’ Co-operative and Benefit Association, came into existence. It became the active and recognized bargaining agent or union for the employees. Respondent paid its representatives for their time in Association activities and otherwise gave support to it. It was clearly outside the pale of the National Labor Re[758]*758lations Act of 1935. The first organization disappeared permanently from the picture after the W. C. B. A. took the stage. In 1935 another organization (U. L. W., Local 79), affiliated with the A. F. of L., began a campaign to organize respondent’s employees. In this campaign, or shortly thereafter, respondent discharged three of its employees who were active unionists and we infer, for their union activities.

In December, 1935, this local union filed charges with the Board against respondent, based upon the discharge of said three employees and based further upon the existence of the W. C. B. A. which was still active in the plant and which U. L. W. Local 79 claimed was formed and dominated by the respondent. A hearing was had by a trial examiner whose report sustained the charges and recommended the disestablishment of W. C. B. A. and the reinstatement of the three employees with back pay. No action was taken upon this report for nine months, or until the U. S. Supreme Court upheld the Act in the Jones & Laughlin Steel Co. case, National Labor Relations Board v. Jones & Laughlin Steel Corp., 301 U.S. 1, 57 S.Ct. 615, 81 L.Ed. 893, 108 A.L.R. 1352. Immediately thereafter, respondent posted notice in the plant stating that the W. C. B. A. would be dissolved . and that the employees were entirely free to join any union organization or independent labor group. It entered into negotiations with the three discharged employees relative to their reinstatement and back pay. These negotiations culminated in an agreement which provided for their return to their employment and cash compensation while they were idle.

Within a few weeks, and on May 10, 1937, a campaign to form what was known as I. T. U., an allegedly “new inside union,” was launched by five of respondent’s employees. At the same time, another union, a sort of a successor to Local No. 79 (called in the record, the Union), began a drive among the employees for members. Petitioner asserts, and the respondent denies, that the employer took immediate and effective measures to induce its employees to join the I. T. U. and not to join the Union, which turned out to be an affiliate of C. I. O.

That dispute furnished the battleground, and the activity of respondent, the casus belli of the controversy which waged the next few years, between the Union and the Board on one side and respondent and its employees on the other. A study of the charges and the denials, the confessions and avoidances of the employer, engages our attention. The wishes of the employees, save as they have struggled to express themselves, have been lost in the heat of battle, the immediate objective of which was the selection of the bargaining agent, which was to speak for the employees, who are, it seems, dehors the combat, for reasons not quite clear.

Petitioner relies principally upon four acts of the employer, which, it asserts, persuasively point to interference, restraint, and coercion of employees, as well as domination and support of I. T. U., in violation of section 8(1) and (2) of the Act, 29 U.S.C.A. § 158(1,2).

The first of the four acts complained of was the distribution of a pamphlet (or letter) to each of its employees.1 Petition[759]*759er argues this document was prejudicial and improper. Respondent denies that it was objectionable, and says it was written in a spirit of complete sympathy and full cooperation with the spirit of the Labor Act.

The second act of respondent of which complaint is made was the recognition of the I. T. U. and the ignoring of a letter from the Union. The Union in its letter asserted it represented the majority of the workers and demanded the right to bargain for them.

A third act of respondent which evidenced a biased hand, so it is argued, was the payment of forty cents a month as check-off to the I. T. U.

The fourth charge was respondent’s failure to reinstate the aforementioned three Union employees until after the drives by the Union and I. T. U. were completed. Prejudice, it seems, here lay in the fact that the advertisement value of said employees’ return to work was withheld the Union and since anything hurtful to one union must be helpful to its competitor, the act established favoritism of said I. T. U.

A study of the evidence convinces us that the question is typical of many of these cases and may be stated thus — Is there sub[760]*760stantial evidence which supports the finding of the examiner?

The decisions which bind us leave no doubt about our duty to ignore flagrant abuses of judgment or of discretion, by the trier of facts, and to search the record for the sole purpose of. ascertaining whether there exists some evidence which supports the Board’s finding.

With this understanding, we approach our task.

The issue of unfair practices narrows itself to a question of favoring the I. T. U. by the employer.

Petitioner’s attack is centered chiefly upon the above communication which the employer addressed to its employees on May 13, 1937.

Obviously, this, letter must be read in its entirety. We can not, in fairness, pick out a sentence from its context and give it a true and correct meaning.

The only two paragraphs of which complaint is made, are headed “Harmony and Confidence” and “Agitators;” Construed in its entirety we can find nothing in the letter which we can call g threat or an attempted coercion of the employees. • If we ignore the rest of the letter and direct our attention to these two paragraphs, it would still require imagination to read into these three sentences, any veiled intimidation, any threat to the employees.

(2) Respondent received from the I. T. U., notice that it represented a majority of the employees, on June 5, 1937. I. T. U. advised the employer that its membérship included 277 out of the 350 employees of the company. It supported this claim by submitting photostatic copies of signed membership cards of 275 émployees,

The Board found,, however, that the recognition of I. T. U. was evidence of partiality because later, on June 25, the representative of C. I. O. notified the .employer that it claimed to represent the majority of the employees. We quote this letter:

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121 F.2d 756, 8 L.R.R.M. (BNA) 786, 1941 U.S. App. LEXIS 3319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-gutmann-co-ca7-1941.