New Idea, Inc. v. National Labor Relations Board

117 F.2d 517, 7 L.R.R.M. (BNA) 545, 1941 U.S. App. LEXIS 4273
CourtCourt of Appeals for the Seventh Circuit
DecidedFebruary 6, 1941
DocketNo. 7361
StatusPublished
Cited by8 cases

This text of 117 F.2d 517 (New Idea, Inc. v. National Labor Relations Board) 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
New Idea, Inc. v. National Labor Relations Board, 117 F.2d 517, 7 L.R.R.M. (BNA) 545, 1941 U.S. App. LEXIS 4273 (7th Cir. 1941).

Opinions

KERNER, Circuit Judge.

This case is before us upon the petition of New Idea, Inc., to review and set aside, and upon the petition of Independent Employees Association of New Idea, Inc., to review and modify, an order of the National Labor Relations Board issued pursuant to Section 10(c) of the National Labor Relations Act. 49 Stat.' 449, 29 U.S. C.A. Sec. 151 et seq. In its answer the Board has requested enforcement of its order.

Upon charges duly filed by the International Association of Machinists and the International Brotherhood of Blacksmiths, Drop Forgers and Helpers, both organizations affiliated with the American Federation of Labor and hereinafter jointly referred to as the A.F.L., the Board issued its complaint against the Company alleging that it had' engaged in unfair labor practices within the meaning of Sections 8(1) and 8(2) of the Act. In substance the complaint alleged (a) that in August of 1937 the Company instigated the formation of the Independent Employees Association and thereafter dominated, interfered with and contributed support to its administration; (b) that in September of 1938 the Company entered into an illegal bargaining contract with the Association; and (c) that from August of 1937 to the date of the complaint the Company interrogated its employees regarding their union activities and warned them to refrain from joining or retaining membership in the A.F.L. The Company filed an answer denying that it violated the Act in any manner.

The complaint above described was issued on May 26, 1939, the Company’s answer was filed on or about June 3, 1939 and the hearing was held from July 6 to 14, 1939. On September 29, 1939 the Trial Examiner filed an Intermediate Report in which he found that the Company had engaged in unfair labor practices in violation of Sections 8(1) and 8(2) of the Act. He recommended that the Company cease and desist from certain acts and take certain affirmative action. On March 7, 1940 the Board rendered its Decision and Order, in which it found that the Company had violated 8(2) of the Act by sponsoring, dominating and interfering with the formation and administration of the Association and by contributing support to it. The Board also found that the Company had violated 8(1) of the Act by committing the aforesaid acts, by entering into the September 28, 1938 contract with the Association and by making other statements and engaging in other activities. Upon these findings of fact the [519]*519Board based its order which contained the usual cease-and-desist provisions and compelled certain affirmative action.1

Applicability of the Act. New Idea, Inc., is an Ohio corporation with its principal office located in Coldwater, Ohio. It owns and operates two plants at Coldwater, Ohio, and Sandwich, Illinois, and is engaged in the manufacture and sale of farm implements including hay loaders, hay rakes, portable grain elevators and corn shellers. This proceeding concerns the plant located at Sandwich, Illinois, a town of about 2600 inhabitants, and on September 1, 1937 this plant was employing approximately 179 employees.2 it was situated on 12 acres of land and comprised numerous buildings wherein foundry, machining, wood making, painting and assembling operations occurred. In 1938 its gross sales exceeded $675,000, approximately 75 per cent' of which represented sales to purchasers located outside the State of Illinois. In the same year it purchased raw materials the cost of which exceeded $475,000, approximately 50 per cent of which represented purchases made in states other than the State of Illinois. It is clear that the Act applies to the Company and its employees.

Formation of the Association. No labor organization existed at the Company’s Sandwich plant prior to August 23, 1937 made before August 19, 1937. On August 19, 1937 Richard L. Sidford, foreman in charge of the stockroom, and Douglas Watt, an employee, initiated the formation and no organizational efforts had been of the Association. Pursuant to Sidford’s suggestion they visited the office of John F. Cusack, a Chicago attorney at law, who supplied them with a constitution, by-laws and application forms for a union. Since the by-laws barred supervisory employees from participation in the Association, Sid-ford withdrew and Watt proceeded to organize the Association.

Watt planned an employee meeting to be held at the City Hall on the evening of August 23, and on August 19 arranged to have Wallace E. Cochran, mayor of the city, preside as chairman at the meeting. On August 23 Watt had a second conference with Cusack in Chicago. This time he was accompanied by Fish, an employee, and Eldred, at that time assistant foreman and now foreman of the paint department. According to Fish and Eldred, they did not participate in this conference with Cusack nor did they know or ask what kind of union Watt was promoting. Upon their return to Sandwich about noon Fish and Eldred returned to work, but Watt spent the afternoon circulating through the plant to inform the employees of the meeting, and preparing [520]*520'for the meeting to be held that night. He also discussed the meeting with Harry Miller, plant Superintendent, and pursuant thereto Miller ordered the departments then working overtime to close early so that the employees could attend the meetings. This was the only instance of such a shut-down of the plant during the overtime period which began about 6 weeks prior to August 23 and continued for about 4 weeks thereafter.

During the course of the afternoon of August 23, the employees received notice of the employee meeting to be held that evening. Some of the foremen and assistant foremen not only informed the employees of the overtime cancellation but also urged their attendance at the meeting and told them the purpose of the meeting was to organize an independent union within the Company’s plant for the purpose of keeping out any “outside” .labor organization. For instance there is testimony that Weber, foreman of the yard, announced to a group of 15 or 20 employees working in the yard that “I don’t believe I have seen you fellows yet. * * * We are going to have a meeting at the City Hall tonight to form an Independent Union of our own. I want all my men to be there because we want this . union to keep out other organizations. * * * ” Edward Eagle, then a foreman, was attributed with the statements that “they were going to organize a union, an independent union in the company, because there had been so much C.I.O. and A.F. of L. trouble around they didn’t want that in this factory” and that “the purpose is to keep out the C.I.O. and the A.F. of L.” Ingvald Thorsen, assistant foreman of the yard, was attributed with the statement that “we are going to organize a union of our own here to keep out the A.F. of L. and the C.I.O., because we don’t want any trouble here.”

The above named supervisory employees denied making these statements. For instance foreman Eagle testified that some employees requested leave from overtime work to attend the night meeting, that he sought and obtained permission from Superintendent Miller to shut down his department, that he so informed the employees, but that he neither urged attendance at the meeting nor knew of the purpose of the meeting. In this connection Watt testified that he had advised Superintendent Miller of the purpose of the meeting.

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Bluebook (online)
117 F.2d 517, 7 L.R.R.M. (BNA) 545, 1941 U.S. App. LEXIS 4273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-idea-inc-v-national-labor-relations-board-ca7-1941.