National Labor Relations Board v. Kropp Forge Co.

• Decision Date: 31 January 1950
• Docket Number: No. 9883.,9883.
• Citation: 178 F.2d 822
• Parties: NATIONAL LABOR RELATIONS BOARD v. KROPP FORGE CO.
• Court: U.S. Court of Appeals — Seventh Circuit

178 F.2d 822 (1949)

NATIONAL LABOR RELATIONS BOARD v. KROPP FORGE CO.

No. 9883.

United States Court of Appeals Seventh Circuit.

December 30, 1949.

Rehearing Denied January 31, 1950.

David P. Findling, A. Norman Somers, Assistant General Counsel, Ruth Weyand, Lawyer, National Labor Relations Board, Washington, D. C., and Arnold Ordman, Washington, D. C., for petitioner.

Louis Linton Dent, Leo T. Norville, Chicago, Ill., John D. Picco, Chicago, Ill., for respondents.

Before KERNER, FINNEGAN and SWAIM, Circuit Judges.

SWAIM, Circuit Judge.

This case is before us on the petition of the National Labor Relations Board, under Section 10(e) of the National Labor Relations Act, 29 U.S.C.A. Supp., §§ 151 et seq., 160(e), for enforcement of its order issued against Kropp Forge Company and Kropp Forge Aviation Co.

Respondents state that "The main question in this case is whether, since the passage of the Taft-Hartley Act, 29 U.S.C.A. 158(c), the Board's decision and order, which were primarily based upon the statements (of officials and representatives of the respondents) and the inference the Board drew therefrom, should be enforced."

The respondents insist that under the new Section 8(c) of the Act, 29 U.S.C.A. § 158(c), all of the statements of the representatives of the respondents were merely expressions of opinion and could not be considered as constituting, or being evidence of, unfair labor practice.

The order in question directed the respondents to cease and desist from: Dominating or interfering with the administration of, or contributing support to, the Employees Association of the Kropp Forge Company (hereinafter referred to as "Association"), or any other labor organization of their employees; recognizing the Association, or any successor thereto, as the bargaining representative of any of their employees; giving effect to the contract with the Association, dated February 26, 1945, or to any other contract with said Association; and in any other manner interfering with, restraining or coercing their employees in the exercise of their right to self-organization, to bargain through representatives of their own choosing and to engage in concerted activity for purposes of collective bargaining or other mutual aid or protection as guaranteed in Section 7 of the Act.

The order also required the respondents to: withdraw all recognition from and disestablish the Association or any successor thereto; discontinue the Labor Management Committee as a medium for dealing with their employees with respect to grievances, wages and other conditions of employment; and to post notices of compliance.

This order was based upon a finding by the Board, upon the entire record, that respondents had, and were, engaging in unfair labor practices, within the meaning of Section 8(2) of the Act, in that respondents dominated and interfered with the formation and administration of, and contributed support to, the Association, and that by such acts and the statements and questions of President Roy Kropp, Plant Managers Hellstrom and Sweeney and Superintendent Lane, the respondents interfered with, restrained and coerced their employees in the exercise of the rights guaranteed in Section 7 of the Act, thereby engaging in unfair labor practices under Section 8(1) of the Act.

The substance of the pertinent facts found by the trial examiner and adopted by the Board are as follows:

Prior to 1939, except for a small group of die sinkers and truck drivers, who were represented by affiliated labor organizations of their own choice, the employees of respondents had no collective bargaining representative. In October, 1939, as a result of the activity of William Ohlson, an old employee of the Kropp Forge and an adherent of A.F. of L., union circulars were distributed outside the plant by the International Brotherhood of Blacksmiths, Drop Forgers and Helpers, A.F. of L., and by the International Associations of Machinists, then also affiliated with the A.F. of L. On the day these circulars were being distributed, Hellstrom stated to Ohlson, "Listen, Bill, I don't want no organization in here." Ohlson persisted in his efforts and Hellstrom again told him he didn't want any organization in the plant.

Later Ohlson prepared four round-robin petitions which stated that the signers were in favor of forming a labor organization but did not specify any particular organization. About 90% of the employees signed these petitions which were circulated during working hours. There-upon Roy Kropp summoned 15 or 20 of the key men of the shop to a conference in the plant offices. The vice-president, secretary and Hellstrom were also present. These officials told the assembled key men that they should try to make any organization which they formed a shop organization and restrict the membership to employees of the plant.

Shortly thereafter Hellstrom offered the employees the use of the plant machine shop for a meeting and election to determine what kind of an organization they should have. On December 30, Ohlson posted notices, prepared by one of the office employees, announcing that such a meeting would be held, at noon of that day, in the machine shop. Thereafter, on the same morning, there was posted, on the same bulletin board, a notice over the signature of the president of the Company, that, in celebration of the close of the year, beer and sandwiches would be served in the same machine shop at noon of that day. The same morning President Kropp stopped Ohlson and told him that, "I don't care whether the employees form an independent organization or one affiliated with the A.F. of L., but for the love of Pete, anything but the C.I.O." About one-third of the employees of the plant attended the meeting. Ohlson acted as chairman and Hellstrom, who was present at the outset of the meeting, told the employees they were free to meet in the machine shop and then left.

After a discussion of the relative merits of organizing as an affiliate of the A.F. of L., or the C.I.O., or as an independent union, a majority of the employees present voted for a shop organization. Immediately after the meeting, pursuant to the notice by the president, the Company served free beer and sandwiches. Hellstrom and foremen Carlson and Dahl were present for this party and the two foremen congratulated Ohlson on the decision of the employees to have an independent organization.

Early in January, 1940, the formal organization of the Association was completed. Thereafter, in February, the Association submitted a proposed collective bargaining contract to the Company with a letter emphasizing the independent, unaffiliated nature of the Association, claiming a membership of at least 80% of the employees of the plant and requesting that the Association be recognized as the sole collective bargaining representative of the plant employees. President Kropp met with the committee representing the Association, asked proof of the Association's majority status and was given, by Ohlson, the round-robin petitions. Kropp glanced at these and returned them to Ohlson. In spite of the fact that these petitions were executed before the formation of the Association; that they did not specify any particular organization as the bargaining agent, and that no check was made as to the number or validity of the signatures or the petitions, Kropp Forge at once granted the Association exclusive recognition. The Company did not accept the contract submitted by the Association but, instead, submitted a contract it had caused to be drawn, which the Association accepted.

In June, 1941, the Association was planning a picnic for all of the employees. The respondent, on learning of the plan, volunteered to, and did, pay for the picnic and for similar picnics each year thereafter.

Prior to 1943 memberships and dues for the Association were openly solicited and collected in the plant during working hours. At the beginning of that year the Company inaugurated a check-off system under which it deducted Association dues each month from the wages of each employee named on the membership list supplied by the Association. This was without cost to the Association.

In 1943 a Labor Management Committee was organized by the Company, pursuant to request of the War Production Board, for the purpose of increasing war production. The program called for membership on the Committee to consist of an equal number of employer and employee representatives, the employee representatives to be selected by the recognized union, if there was one. The purpose of the Committee was to consider and improve all aspects of the production process which would tend to increase the quantity and quality of the products manufactured. According to the War Production Board instructions, the Committee was not to interfere with any bargaining machinery or undertake its functions. At the suggestion of O'Keefe, the industrial relations director of the respondents, the executive board of the Association acted as the labor representatives on the Committee. The unions representing the truck drivers and die sinkers were ignored as were the production and maintenance employees who were not members of the Association. This Labor Management Committee, so constituted, handled problems concerning grievances, wage increases, and other matters ordinarily handled for employees by bargaining representatives. The reports of rival union activities in the plant were discussed and considered.

The 1944 agreement, between the respondents and the Association, provided that wages for the term of the contract should be "in accordance with the established policy of the Company and the wage range approved by the War Labor Board." The contract also provided for an incentive bonus conditioned on certain production and payable only to employees who complied with certain standards and rules. Dissatisfaction among the employees, concerning the 1944 contract, caused other...