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V. PRINCIPT.RS ESTABLISHED 51organization," the Board has found such activities of the employerto contravene section 8 (2) as well as section 8 (1) of the Act. Conversely,the Board has given weight to an employer's willingness tobargain with the complaining union and to his refusal to recognizean "inside" union in dismissing charges that the employer dominatedthe latter organization." The Board has held, however, that refusalto recognize the "inside" organization does not demonstrate its independencewhere other elements of domination and support exist, andwhere the employer is engaging in unfair labor practices against thecomplaining union."A common device for disguising unlawful interference, and continueddomination and support, as pointed out in the Fourth AnnualReport," has been the revision of prior company-dominated organizations,or the substitution for them of new organizations. A prominentindex of the domination of the successor organization is foundin the employer's failure, prior to its formation, to disestablish thepredecessor organization and to notify the employees thereof." Alsoamong the indicia of continued domination and support upon whichthe Board has relied in finding the new or revised organization to becompany-dominated are the following : Identity of officers and leadersin both organizations," similarity in structure, bylaws or constitution; 16 transfer of assets from the old organization to the new orrevised one ; " preferences in membership to members of the oldorganization ; 18 employer participation in the reorganization ; 18 hastyrecognition by the employer of the new or revised organization; 20and the refusal of the employer to state, upon request, its neutralitybetween the new or revised organization and the complaining union.'In Matter of Phelps Dodge Corp. etc., and American Federationof Labor et al., 22 the employer formed and dominated two representationplans and later participated in the revision of one of them.The Board found that the revisions were not substantial, that theywere made at the suggestion of the employer, and that the employer"to induce the employees to accept the superficial changes * * *10 Hatter of Jac Feinberg Hosiery Mills, Inc. and American Federation of Hosiery Workers,Dist. 10, 19 N. L. R. B., No 72.11 Matter of Federal Screw Works and Local 17, United Automobile Workers of America,21 N. L. R. B., No. 1512 Matter of E. I. DuPont De Nemours Company, Belle, W. Va., and Distrect 20, ettc..,24 N. L. R B., No. 98."At p. 71.14 Matter of Westinghouse Electric tf Manufacturing Co., and United Electrical Radio etMachine Workers of America, etc., 18 N. L. R. B. No. 46 aff'd as mod., Westinghouse Electricd Manufacturing Co. v. N. L. R. B., 112 F. (2d )657 (C. C. A. 2) • Matter of Kansas CityPower et Light Co., etc., and International Brotherhood of Electrical Workers, etc., 12N. L. R. B. 1414, Ord as mod., Kansas City Power et Light Co. v. N. L. R. B., 111 F. (2d)340 (C. C. A. 8).10 Matter of Southwestern Greyhound Lines, Inc. and Brotherhood of Railroad Trainmen,22 N. L. R. B., No. 1."Matter of A. E. Staley Manufacturing (Jo., etc., and United Grain Processors Local2100, etc., 22 N. L. R. B., No. 31."Matter of McGoldrick Lumber Company, a corporation, et al. and Lumber and SawmillWorkers' Union, Local No. 2552, 19 N. L R. B.. No. 93; see Matter of Donnelly GarmentCompany and International Ladles Garment Workers Union and Donnelly Garment Workers'Union, etc., 21 N. L. R. B., No. 24, where the first company dominated organization financedthe organization of its successor.18 Matter of McGoldrick Lumber Company, a corporation, et al. and Lumber and SawmillWorkers' Union. Local No. P552. 19 N. L. R. B., No. 93."Matter of Phelps Dodge Corporation, United Verde Branch and American Federation ofLabor et al., 15 N L. R. B. 749.Matter of The Cudahy Packing Company and United Packing House Workers, etc., 15N. L. R. B. 676.21 Matter of A. B. Staley Manufacturing Company, etc., and United Grain ProcessorsLocal #21490, etc.. 22 N. L. R. B., No. 31.22 N. L. R. B. 749.
52 FIFTH ANNUAL REPORT OF NATIONAL LABOR RELATIONS BOARDafter having announced a 10-percent wage cut only a month before,granted a 10-percent wage increase shortly before the revision wasfirst submitted to the employees, and [gave] the employee representatives* * * credit for obtaining the increase in the minutesof the Industrial Union meeting, copies of which were posted on therespondent's bulletin boards * * *" The Board found the revisedorganization to be company-dominated, and, in rejecting therespondent's contention that this finding would necessarily disqualifyall employee representatives under a company-dominated planfrom taking part in a revision to purge the plan of domination,said:We are of the opinion that such a deduction is entirely unwarranted anderroneous, because of additional material facts in this case. Here the employeerepresentatives produced a revision in effect dictated by the employer,which did not materially change the substance of the original plan or removethe employer's control. Moreover, we have heretofore held, and we now hold,that after an employer has dominated a labor organization for a considerableperiod of time and has thereby fostered among his employees the idea thatthe organization is the "official" representative favored by him, an effectiverevision of the dominated organization requires that this impression be removed,and that the employees be freed of the effects of the employer's pastinterference, restraint, and coercion in the exercise of rights guaranteed insection 7 of the act. In the instant case the respondent did nothing * * *to remove the employee's impression * * but, on the contrary, as wehave found, affirmatively acted to strengthen that impression.The Board has held that where "the entire record discloses agenuine desire on the part of a group of employees for an independentorganization," and "where the potency of this desire transcendedits possible conditioning by the history of company-dominated unionsin the respondent's plant," the fact that the organization followedupon two prior company-dominated organizations was not controlling.23 In Matter of E. T. Frain?, Lock Co., et al. and SteelWorkers of North America Lodge 1732 24 the members of a companyformed"inside" union obtained a charter from the American Federationof Labor. The Board held that the—identity of membership and officers between a labor organization affiliated withone of the national unions and an unaffiliated labor organization previouslyformed by the employer does not establish per Se illegality under the act withrespect to the affiliated labor organization * * * In a situation such asthat presented here, where it is alleged that the employer has supported orencouraged membership in a labor organization affiliated with a national union,for the employer to be found to have engaged in unfair labor practices inrespect to such labor organization and for an order affecting the employer'srelations with that organization to issue, it should appear either by way ofaffirmative proof or as a matter of persuasive inference, that membership inthat organization resulted from or was attributable to employer action illegalunder the act.Such affirmative proof appeared in Matter of Eagle-Pich,er& Smelting Company, etc., and International Union of Mine,Mill, & Smelter Workers, etc. 25 where the successor union was affiliatedwith a national organization. The employers formed, dominated,supported, and interfered with a labor organization known as21 Matter of Sprague Specialties Company and United Electrical, Radio ct Machine "Workersof America Local No. 29, 20 N. L. It. B., No, CO.la 24 N. L. R. B.. No. 13n25 16 N. L. R. B. 727 The complaint did not allege a violation of section 8 (2). TheBoard found that the employer's domination and support of, and interference with, thesuccessor organization infringed section 8 (1).
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NATIONAL LABOR RELATIONS BOARDWILLI
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CONTENTSPageI. Introduction 1A. Wor
Page 8 and 9: FIFTH ANNUAL REPORT OF THE NATIONAL
Page 10 and 11: I. INTRODUCTIONThe number of worker
Page 12 and 13: I. INTRODUCTION 5finding powers. In
Page 14 and 15: I. INTRODUCTION 7percent. There was
Page 16 and 17: II. THE NATIONAL LABOR RELATIONS BO
Page 18 and 19: III. PROCEDURE OF THE BOARDPrevious
Page 20 and 21: IV. STATISTICAL RECORD OF BOARD ACT
Page 22 and 23: IV. STATISTICAL RECORD OF BOA:RD AL
Page 26: IV. STATISTICAL RECORD OF BOARD Ac,
Page 30 and 31: TABLE I V.-Disposition of unfair la
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Page 36 and 37: TABLE X.-Character and results of r
Page 38 and 39: V. PRINCIPLES ESTABLISHEDIn previou
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Page 52 and 53: V. PRINCIPLES ESTABLISHED 45"highly
Page 54 and 55: V. PRIN ICAPLES ESTABLISHED 47As we
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Page 66 and 67: V. PRINCLL'LES ESTABLISITED 59ineli
Page 68 and 69: V. PRINCIPLES ESTABLISHED 61regardi
Page 70 and 71: V. PRINCIPLES ESTABLISHED 63bargain
Page 72 and 73: V. PRINCIPLES ESTABLISHED 65As note
Page 74 and 75: V. PRINCIPLES ESTABLISHED 67ent rep
Page 76 and 77: V. PRINUPLES ESTABLISHED 69appropri
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Page 80 and 81: V. PRINCIPLES ESTABLISHED 739. Prec
Page 82: V. PRINCIPLES ESTABLISHED 75work, s
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Page 89 and 90: VI. JURISDICTIONThe decisions of th
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102 FIFTFI ANNUAL REPORT OF NATIONA
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104 FIFTH ANNUAL REPORT OF NATIONAL
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IX. DIVISION OF ECONOMIC RESEARCH 1
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144 FIFTFI ANNUAL REPORT OF NATIONA
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XII. FISCAL STATEMENTThe expenditur
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