Phelps Dodge Corp.

National Labor Relations Board - Board Decisions

Sep 27, 1939

15 N.L.R.B. 732 (N.L.R.B. 1939)

In the Matter of PHELPS DODGE CORPORATION , UNITED VERDE BRANCH
and AMERICAN FEDERATION OF LABOR ; INTERNATIONAL ASSOCIATION
OF MACHINISTS , LOCAL 223; INTERNATIONAL BROTHERHOOD OF BOILER-
MAKERS, IRON SHIP BUILDERS AND HELPERS , LOCAL 406; INTERNA-
TIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL B-657; AND
UNITED BROTHERHOOD OF CARPENTERS AND JOINERS OF AMERICA,
LOCAL 1061
Case No. C-1-193.-Decided September 27, 1939
Mining and Smelting Industry-Interference, Restraint , and' Coercion: com-
pany formed , dominated , dealt with , and made contracts with two unaffiliated
Representation Plans at two separate plants, and refused to bargain collectively
with four certified craft unions-Comnpaii.y -Dominated Unions: company in 1937
participated in formation of constitutions empowering it to control the employee
representatives of each Plan , although there was no evidence that such power
was exercised ; formal separation in 1938 of one Plan into a bargaining medium
and a labor organization , sponsored by the old representatives , at company's
suggestion , but with no substantial change over former Plan ; adopted by em-
ployees after wage increase credited to representatives of former Plan ; both
Plans _ disestablished as agencies for collective bargaining ; contracts with, abro-
gated-Units Appropriate for Collective Bargaining : prior determination in
representation case not altered , because no material change since that time-
Representatives: ascertained by elections and certified in prior representation
case-Collective Bargaining : refusal to bargain with certified craft unions in
order to obtain review of units previously found to be appropriate in representa-
tion case, held no defense ; company ordered to bargain.
Mr. William R. Walsh, for the Board.
Ellinwood cfi Ross, Mr. William A. Evans, and Mr. Denison Kitehel,
all of Phoenix, Ariz., for the respondent.
Mr. A. H. Peterson, of Los Angeles, Calif., and Mr. A. S. Holohan
and Mr. F. H. Sizemore, both of Phoenix, Ariz., for the Craft Unions.
Mr. Paul R. Hutchings, of Washington, D. C., for the Machinists.
Mr. T. H. Latham,, of Washington, D. C., for the Electricians.
Mr. Perr/ M. Ling, of Jerome, Ariz., for the Smelter Plan.
Mr. Milton E. Harris, of counsel to the Board.
DECISION
AND
ORDER
STATEMENT OF THE CASE
Upon charges duly filed by the American Federation of Labor,
herein called the A. F. of L., the National Labor Relations Board,
15 N. L . R. B., No. 76.
732
PHELPS DODGE CORPORATION -733
herein called the Board, by its Regional Director for the Twenty-first
Region (Los Angeles, California), issued its complaint, dated No-
vember 29, 1938, against the Phelps Dodge Corporation, herein called
the respondent, alleging that the respondent, at its United Verde
Branch, Clarkdale and Jerome, Arizona, had engaged in and was
engaging in unfair labor practices affecting commerce within the
meaning of Section 8 (1), (2), and (5) of the National Labor Rela-
tions Act, 49 Stat. 449, herein called the Act.
The complaint, which contained a notice of hearing, and an amended
notice of hearing, were duly served on the 'respondent; on the A. F.
of L.; on the International Association of Machinists, Local 223,
herein called the Machinists; 1 on the International. Brotherhood of
Boilermakers, Iron Ship Builders, Welders and .Helpers of America,
Local 406, herein called the Boilermakers; 2 on the International
Brotherhood of Electrical Workers, Local B-657, herein called the
Electricians; on the United Brotherhood of Carpenters and Joiners
of America, Local 1061, herein called the Carpenters; on the Inter-
national President of Grand Lodge, International Association of
Machinists; on the Central Labor Council; on the Los Angeles Indus-
trial Union Council; on the Employees' Representation. Plan, Mines
Division, United Verde Branch, Phelps Dodge Corporation, herein
called the Mines Plan ; 3 and on the Employees' Representation Plan,
Smelter Division, United Verde Branch, Phelps Dodge Corporation,
herein called the Smelter P1an.4 The Machinists, the Boilermakers,
the Electricians, and the Carpenters are herein collectively called the
Craft Unions.
The complaint alleges in substance that the respondent owns and
operates a mine at Jerome, Arizona, and a smelter at Clarkdale, Ari-
zona, the mine and--.Smelter being designated as the respondent's United
Verde Branch; that four described units at the said Branch are
appropriate for the purposes of collective bargaining; that each of
the Craft Unions, having been designated by a majority of the re-
spondent's employees in each of :the said units, respectively, pursuant
to a-Decision and Direction of Elections of the Board, is the exclusive
representative of all the respondent's employees therein; that the
respondent thereafter refused to bargain collectively. with any of the
1 Service was directed to, and the Machinists was designated throughout the complaint
as, the International Association of Machinists , Local 233, but this designation was cor-
rected by amendment at the hearing.
2 Service was directed to, and the Boilermakers was designated throughout the com-
plaint as , the International Brotherhood of Boilermakers , Iron Ship Builders and Helpers,
Local 406.
3 Service was directed to the Employees ' Committee , Employees ' Representation Plan,
Phelps Dodge Corporation , United Verde Branch , Mine Division.
* Service was directed to, and the Smelter Plan was designated throughout the complaint
as. the Employees ' Committee, Employees ' Representation Plan, Phelps Dodge Corporation,
United Verde Branch , Smelter Division.
734 DECISIONS OF NATIONAL' LABOR RELATIONS BOARD
'Craft Unions as such representative ; that the respondent , since July 5,
1935; dominated and interfered with the formation and administration
of, and contributed support to , the Mines*Plan and the . Smelter Plan;
and that the respondent 's aforesaid acts are unfair labor practices,
.affecting commerce , within the meaning of Section 8 ( 1), (2), and (6)
and Section 2 (6) and (7) of the Act.
Thereafter , the respondent duly filed its answer to the complaint,
in substance admitting some of the allegations thereof, but the re-
spondent denied having committed any unfair labor practices, inas-
much as it denied ( 1) the appropriateness of the four units alleged
in the complaint to be appropriate for the purposes of collective bar-
gainiug, and (2) that it had since July 5, 1935, dominated or inter-
fered with the formation or administration of, or contributed support
to, the Mines Plan or the Smelter Plan.
Pursuant to notice , a hearing was duly held on December 8 and
9, 1938, at Clarkdale , Arizona, before Charles E. Persons , the Trial
Examiner duly designated by the Board. The motion of the Smelter
Plan to intervene wtis granted , but such intervention was limited
to the issue of the respondent 's domination of the Smelter Plan.
The Board, the respondent , the Craft Unions, and the Smelter Plan
were represented at, and participated in, the bearing.' Full oppor-
tunity to be heard, to examine and cross -examine witnesses , to intro-
duce evidence bearing on the issues , and to present oral argument
before and file briefs with the Trial Examiner at the close of the
hearing, was afforded to all parties to the hearing.
On February 8, 1939, the Trial Examiner filed his Intermediate
Report, copies of which were duly served on each of the parties to
the. hearing . In the Intermediate Report , the Trial Examiner found
that the respondent had . engaged in and was engaging in -the unfair
labor practices alleged in the complaint , and he recommended that
the respondent cease and desist from such unfair labor practices and
take certain affirmative action in order to effectuate the policies.of the
Act. At the close of the Intermediate Report, notice was given to
all parties that' they might file a request with the Board for the
privilege of filing briefs or of presenting oral argument.
Thereafter , the respondent and the Smelter Plan each duly filed
exceptions to the Intermediate Report and to other parts of the
.record. Pursuant to notice to all parties, a hearing for the purpose
of oral argument was duly held on April 13 , 1939 , before the Board,
at Washington, D. C., in which the respondent , the Machinists, and
the Electricians participated . Briefs were also duly filed with the
Board by the respondent and by the Smelter Plan . .
6 The 'Mines Plan did not appear at this hearing.
PHELPS DODGE . CORPORATION 735
During the hearing and in his Intermediate Report, the Trial Ex-
aminer made rulings on motions and on objections to the admission
of evidence . The Board has reviewed these rulings, and finds that
no prejudicial errors were committed . The rulings are hereby
affirmed.
The Board has considered the exceptions filed by the respondent
and the oral argument in support thereof, and also the exceptions
filed by the Smelter Plan and the briefs submitted by these. parties.
Save as the exceptions are consistent with the findings , conclusions,
and'. order herein, the Board finds them to be without merit.
Upon the entire record in the case , the Board makes the following:
FINDINGS OF FACT
1. THE BUSINESS OF THE RESPONDENT
The respondent is a corporation organized and existing by virtue
of the laws of the State of New York, and is qualified to do business
in the State of Arizona . The respondent and its subsidiaries are
engaged in the business of mining, refining, and fabricating copper
and other metals, and its wholly owned subsidiaries engage in other
types of business.
The respondent has a branch of its business known as its United
Verde Branch, which is the name given to its mine at Jerome, Ari-
zona, operated by its Mines Division , and its smelter at Clarkdale,
Arizona, operated by its Smelter Division . The mine consists of a
large deposit of copper -bearing ore , with traces of silver and gold.
Ore produced at the mine is shipped to the smelter , approximately
seven miles distant. The ore is there reduced to bullion, which is
shipped by rail and steamship line to the respondent 's refinery at
Laurel Hill , New York. The respondent , in the course and conduct
of its aforesaid business, causes and continuously has caused to be
shipped in interstate commerce from the State of Arizona to the
State of New York large quantities of bullion, amounting in 1936 to
more than 75 ,000,000 pounds of copper , or approximately 6 3 per cent
of the total amount of copper produced in the United States in that
year; and, in addition, the respondent causes and has caused to be
shipped into the State of Arizona from and through other States of
the United States and foreign countries large qu