National Labor Relations Board v. Brown Paper M. Co.

Decision Date18 March 1940
Docket NumberNo. 9250.,9250.
Citation108 F.2d 867
PartiesNATIONAL LABOR RELATIONS BOARD v. BROWN PAPER MILL CO., Inc.
CourtU.S. Court of Appeals — Fifth Circuit

Chas. Fahy, Gen. Counsel, Robert B. Watts, Assoc. Gen. Counsel, Laurence A. Knapp, Asst. Gen. Counsel, and Mortimer B. Wolf, Bertram Edises, and Morris P. Glushien, all of Washington, D. C., for National Labor Relations Board.

Clyde R. Brown, of Monroe, La., and L. J. Benckenstein, of Beaumont, Tex., for respondent.

J. B. Thornhill, of Monroe, La., and Bentley G. Byrnes, of New Orleans, La., for interveners.

Before FOSTER, HUTCHESON, and HOLMES, Circuit Judges.

HUTCHESON, Circuit Judge.

Pursuant to charges by the International Brotherhood of Paper Makers, that Brown Paper Mill, Inc., of Monroe, La., has engaged and is engaging in unfair labor practices in violation of Chapter 7, National Labor Relations Act,1 there was a complaint and hearing under the act. The charges were, (1) that in violation of Sections 1572 and 1583, respondent had interfered with and was interfering with its employees in the exercise of their right of self-organization and representation, by assisting in the formation and administration of a labor organization of its employees, known as the Brown Paper Mill Employees Association, (2) that because of their membership in and affiliation with complainant, respondent had discharged three named employees. There were findings and an order4 sustaining the complaint of unfair labor practices as to the "association" but rejecting it as to the discharged employees. By this petition, the Board seeks a court decree to enforce its order. The respondent, Brown Paper Mill, insists that the findings and order, as to unfair labor practices, are without support in the evidence, and that if they are, the order is invalid and improper in three respects.

(1) Because it would compel it against its will to admit an infraction of the law and to confess a commission of an illegal act.

(2) There is no reasonable ground for disestablishment of the Brown Paper Mill Employees Association.

(3) The order as drawn gives the impression that respondent's employees are prevented from organizing an independent association. It therefore opposes the petition altogether, and in the alternative,

seeks amendment of the order. Appearing by intervention, International Brotherhood of Paper Makers, and three discharged employees of respondent, oppose the enforcement of the order to the extent that it dismisses the complaint as to the three discharged employees. The Brown Paper Mill Employees Association intervenes to oppose the Board's order, particularly that part of it requiring its disestablishment as representative of the employees.

Respondent and the intervening association recognize the burden the act imposes upon them, to show that the Board's findings and order are without support in the evidence. They vigorously insist though, that they have more than carried it by the testimony of the "association's" 708 member witnesses, that they were not coerced, dominated or interfered with by respondent and that they want to be represented by the "association;" the testimony of respondent's witnesses that they had not attempted to coerce, dominate or interfere with any of the employees, and the absence of any testimony by the Board's witnesses of the exercise by respondent, of domination, coercion or interference. The Board, on its part, insists, that the evidence that the membership campaign of, and solicitation of the dues5 for, the "association," was carried on on company time, with company support, through the active interference of tour bosses and others interested on the company's side; that its meetings, both organizational and otherwise, were carried on with the approval and consent of the company on company property, while the meetings of complainant Brotherhood were under company surveillance, and that its organization was begun and fostered at the critical time of the drive of complainant to unionize the plant, after the vice-president and general manager of the company had stated; that the company had not dealt with organized labor in the past, that it was opposed to labor unions, that he recognized that its employees had a right to organize, that if they did organize and the law required it, respondent would deal with them, as it intended to stay within the law, is sufficient without more to support its findings and order. But, it insists that there is much more, in the undisputed testimony as to the formation, first, under company auspices and with company support of the Brown Paper Mill Employees Mutual Benefit Association, and that so organized, the subsequent reorganization under the name intervenor now uses, could not and did not change, the status of the "association," as one not freely formed and organized by the employees, but formed, organized and maintained under the aegis and support of the company. The Board insists in short that it was orginally launched under company auspices to an extent sufficient, at least, to deprive it of the character of a labor organization freely formed and operated by the men themselves, and give it that of one coming into being marked, and in law continuing to be marked, as a company dominated and supported union. Pointing to the declaration of policy contained in Section 151, "it is hereby declared to be the policy of the United States * * * by encouraging the practice and procedure of collective bargaining and by protecting the exercise by workers of full freedom of association, self-organization, and designation of representatives of their own choosing, for the purpose of negotiating the terms and conditions of their employment or other mutual aid or protection;" and to the provisions of Section 158, that "it shall be an unfair labor practice for an employer * * * to dominate or interfere with the formation or administration of any labor organization or contribute financial or other support to it," the Board insists that the intervenor association was organized, and is operating, contrary both to the declared policy and the terms of the act. It points, too, to the decision of the Supreme Court in National Labor Relations Board v. Newport News Shipbuilding & Drydock Co., 60 S.Ct. 203, 84 L.Ed. ___, December 4, 1939, that an association once organized under company domination, in eye of the law, continues as so organized, despite changes in its structure and organization and the only remedy for such a situation is complete disestablishment and a new beginning, National Labor Relations Board v. Greyhound Lines, 303 U.S. 261, 58 S.Ct. 571, 82 L.Ed. 831, 115 A.L.R. 307.

We agree with the Board. The act does not compel employees to affiliate themselves with existing national or other unions or associations, nor does it prevent them from forming truly independent local associations of their own. But it does flatly prevent and prohibit the formation of associations of employees for bargaining, which, though they are ostensibly independent, are really supported, controlled or influenced, though ever so slightly, by the management. The statute recognizes two parties to a labor bargaining compact. It requires that the employees in bargaining be completely independent of the employer so that in the bargaining, labor will be represented by persons or organizations having only its interest in mind, and acting wholly uninfluenced by fear or favor, of or from the management. Therefore, when once it appears that management has had a hand in organizing, supporting or in any wise interfering or collaborating with an "association" of employees, such an association may not be recognized as the free and voluntary association of employees called for in the act. If in such cases the employees really intend and want it to be such, their only sure course is to disestablish it as the bargaining agency and, entirely dissolving it, begin organization anew, upon their own time and their own devices without aid or comfort from the...

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