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Agreement and the Union or Employer shall be free to enforce such decision by such action as it deems appropriate, anything in clause 12 to the contrary notwithstanding.

14. Labor Disputes. It is agreed that the Employer will not do work, directly or indirectly, for any person, firm, or corporation engaged in the laundry industry and involved in a strike or labor dispute. In the event the employer violates this provision the Union shall be free to take such action as it deems appropriate, anything in clause 12 to the contrary notwithstanding.

15. Soliciting.-(a) Agent Drivers agree to furnish their own vehicles, and be responsible for same.

(b) Agent Drivers agree to furnish customers for the route.

(c) The Employer shall not, directly or indirectly, in any manner, divulge the identity of the customers of the routes operated by the Agent Drivers, nor shall it directly or indirectly solicit said customers for itself or for any person or Agent Driver unless it has first paid in cash, as a bonus to the Agent Driver, the amount of $30 per dollar of average weekly business of the route involved. The preceding 4 weeks shall be the basis for calculating the average volume of business per week of the route. For example: If the route averages $100 per week for the preceding 4 weeks the amount of cash bonus to the Agent Driver shall be $3,000.

16. Check-off.-The Employer shall, in addition, collect weekly from each Agent Driver a sum representing Union dues, in accordance with a list furnished by the Union and shall transmit the same to the Union semimonthly. The Employer agrees to be responsible for such collection of Union dues as well as for transmittal of same to the Union. Should the Employer fail to effect such collection, it shall nevertheless be liable for the total sum required to be collected as berein provided for. In the event the Employer violates this provision the Union shall be free to take such action as it deems appropriate 1 week after the Union has given notice to the Employer by registered mail of such violation, anything in clause 12 to the contrary notwithstanding.

17. Examination of books.-The Union shall have the right at all reasonable times to examine the books, records, and papers of the Employer for the purpose of determining whether the Employer is complying with the provisions of this agreement.

18. Recognition of Union Representatives.-The Employer agrees to recognize and deal with such representatives of the Union as the Union may elect or appoint. The Employer further agrees to permit duly accredited represenatives of the Union to visit its plant during working hours. The Union may post notices in the plant of the Employer. In the event the Employer violates this provision the Union shall be free to take such action as it deems appropriate 1 week after the Union has given notice to the Employer by registered mail of such violation, anything in clause 12 to the contrary notwithstanding.

19. Duration.-This agreement shall commence on the date first mentioned above, and shall terminate on the day of 19, on which latter date this Agreement and the provisions thereof shall be automatically renewed from year to year thereafter unless 30 days prior to the expiration date of this Agree ment of any renewal thereof notice in writing by registered mail is given by either party to the other of its desire to terminate this Agreement.

Employer.

INDEPENDENT LAUNDRY DRIVERS UNION, LOCAL 324,
AMALGAMATED CLOTHING WORKERS OF AMERICA,

Witness:
Witness:
Witness:

--

Manager.

CERTIFICATE OF AUTHORIZATION

The undersigned members of Inter-Borough Laundry Board of Trade, Inc., hereby authorize Louis H. Solomon, Esq., to execute on their behalf and in his sole discretion a collective-bargaining agreement between said association and

Independent Laundry Drivers Union, Local 324, Amalgamated Clothing Workers of America, for the period from May 1, 1946, to May 31, 1948, and with provision for annual renewal of said agrement thereafter, and they each further authorize said Louis H. Solomon, Esq., to execute on their behalf and in his sole discretion any and all supplements to and modifications of said collective-bargaining agreement, and each of the undersigned hereby agrees to be bound by said collectivebargaining agreement and any and all supplements thereto and modifications thereof as shall be executed by Louis H. Solomons, Esq., with the same force and effect as if each of said documents shall have been executed by each of the undersigned individually.

(Signed by members of Inter-Borough Laundry Board of Trade, Inc.)

SUPPLEMENTAL AGREEMENT

Supplement to collective-bargaining agreement made as of May 1, 1946, between Inter-Borough Laundry Board of Trade, Inc., and Independent Laundry Drivers Union, Local 324, Amalgamated Clothing Workers of America.

It is agreed by and between the parties to the foregoing collective-bargaining agreement as follows:

1. Clause 6 of said agreement, entitled "Disability Relief and Benefit Fund," is modified so as to provide that with respect to net-gross collections received by the employer from the agent drivers for the period commencing with the first day of the week following May 1, 1936, and ending with the end of the last full week in May 1947, the employer shall pay 1% percent to the union's disability relief and benefit fund, and after the said date of the last full week in May 1947, the employer shall pay the full 2 percent to the union's disability relief and benefit fund as provided for in clause 6 of the said agreement.

2. The foregoing modification shall be applicable to the members of the InterBorough Laundry Board of Trade, Inc., only as long as they remain members of said association.

In witness whereof the parties hereto have caused this supplemental agreement to be executed by their duly authorized agents this 3d day of May 1946.

INTER-BOROUGH LANDRY BOARD OF TRADE, INC.,

By Louis H. SOLOMON, Owners.

INDEPENDENT LAUNDRY DRIVERS UNION, LOCAL 324, AMALGAMATED
CLOTHING WORKERS OF AMERICA,

By MURRAY M. GASSMA, Manager.

Supplemental agreements made as of June 19, 1947, between the InterBorough Laundry Board of Trade, Inc., hereinafter called the Employer, and Independent Laundry Drivers Local 324 of the Amalgamated Clothing Workers of America, hereinafter called the Union.

Whereas the Employer and the Union are parties to a collective bargaining agreement dated May 1, 1946, and presently in force (herein called the Agreement), and

Whereas the Employer is presently negotiating with the Laundry Workers Joint Board for an extension of the contract to 1952, and the parties hereto have agreed to an extension of the contract between the parties hereto to terminate on June 19, 1952, in contemplation of the extension of the Laundry Workers Joint Board contract to 1952,

Now, Therefore, in consideration of the premises, the parties agreed that said Agreement shall be modified and amended as follows:

1. Clause 19 of the Agreement is amended so as to provide that the termination date shall be June 19, 1952, or at such earlier date as is finally fixed with the Laundry Workers Joint Board for the termination of the Laundry Workers Joint Board contract presently in negotiations. In the event that the Laundry Workers Joint Board contract presently in negotiation shall terminate at an earlier date, and shall be extended for a further period, then the contract between the parties hereto shall be extended accordingly to the termination date of the Laundry Workers Joint Board contract as renewed and further renewed.

lous employers who believe that, by entering into contracts with agent driver and commission driver salesmen and similarly situated salesmen stating that they are independent contractors, they can go behind the intention of the Social Security Act." [Italics supplied.]

All familiar with the laundry industry and similar service industries know that Representative Lynch's statement is a wholly accurate summarization of the existing facts. Prior to 1930 there were no agent drivers in the laundry industry. In the early thirties, with the advent of social security, unemployment insurance, and other social legislation laundry owners, seeking to reduce operating expenses, began to convert their regular drivers to agent drivers. The general method whereby this fictitious conversion was accomplished was to compel the driver to purchase a truck on terms providing for little or no down payment and intallment payments extended over a period of many years. Significantly, under the contract of purchase, each agent driver was compelled to bring all laundry bundles collected exclusively to his employer until the purchase price had been fully paid. The employer thus retained full control of the driver to the same extent that he had hitherto exercised when the driver was designated as an employee. The agent driver continued as theretofore to drive a laundry vehicle, pick up and mark bundles, carry them between the customers and the laundry, collect payments for services and account for the money so collected to the laundry. The only difference was that agent drivers received percentages of retail prices fixed to cover the agent driver's expenses instead of fixed salaries. Even this difference, however, is illusory; the agent driver's net earnings or take-home pay remaind identical to what his wage had been.

Unfortunately, however, despite Representative Lynch's clear and concise statement that agent drivers are entitled to the benefits of H. R. 6000 and I:. R. 6000 contemplated covering them, that bill would lend itself to the purposes of the litigious employer who seeks to deprive agent drivers from coverage.

That such an ambiguity exists is established by merely looking to the House Ways and Means Committee minority report dealing with the precise question of agent drivers. Contrary to the majority report and Representative Lynch's statement, the minority would interpret the proposed bill as excluding agent drivers (p. 200).

In sum, only by the attached clarifying amendments will the intention of the framers of H. R. 6000 be fully carried out. We therefore respectfully direct the committee's attention to these amendments and urge that H. R. 6000 be clarified as there indicated.

PROPOSED AMENDMENTS TO H. R. 6000

Section 210 (k) (2) should be amended as follows: Page 49, line 4, omit "expressly"; page 49, line 5, omit "complete." As thereby amended, section 210 (k) (2), page 49, lines 2 through 12, would read as follows:

6614 ** * For purposes of this paragraph, if an individual (either alone or as a member of a group) performs service for any other person under a written contract reciting that such person shall have control over the performance of such service and that such individual is an employee, such individual with respect to such service shall, regardless of any modification not in writing, be deemed an employee of such person (or, if such person is an agent or employee with respect to the execution of such contract, the employee of the principal or employer of such person); or."

More importantly, section 210 (k) (3) should be amended as follows: Add a new subparagraph (G), after subparagraph (F), to read as follows: "(G) As an agent driver or commission driver;".

If the Senate committee accepts the foregoing amendment, subparagraph (G), page 50, line 8, in H. R. 6000 will become “(H)."

Section 203 (k) (4) (F), appearing at lines 14 and 15 of page 51, should be amended by adding the following: "(other than the investment by a salesman or agent driver in facilities for transportation)."

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and the Independent Laundry Drivers Union, Local 324, Amalgamated Clothing

hereinafter called the Employer

Workers of America, located at 799 Broadway, New York City, hereinafter called the Union, for and in behalf of the members thereof now employed and/or hereafter to be employed by the Employer and collectively designated as "Agent

Drivers."

Whereas it is the intent and purpose of the Employer and the Union that this Agreement shall promote and improve industrial and economic relationships between the Employer and its Agent Drivers covered by this agreement, and Whereas it is expected that the respective representatives of the parties to the agreement shall represent in the shop and in their dealings the cooperative spirit of the agreement and shall be leaders in promoting that amity and spirit of good will which it is the purpose of this agreement to establish,

Now, Therefore, in consideration of the mutual covenants, promises, and agreements herein contained, the parties hereto agree as follows:

1. Definition. The term "Agent Drivers" when used in this agreement include all of the Agent Drivers of the Employer, who themselves operate laundry routes, whether or not said Agent Drivers own shares or stock in the business of the Employer. An Agent Driver is one who furnishes his own vehicle in connection with the operation of a route.

2. Recognition.-The Employer recognizes the Union as the exclusive bargaining representative for all of its Agent Drivers as defined in the preceding clause, and will employ such Agent Drivers only who are members in good standing of the Union, and will furnish an official working card from the Union upon Commencement of the employment. In the event the Employer violates any of the provisions of this clause the Union shall be free to take such action as it deems appropriate 1 week after the Union has given notice to the Employer by registered mail of such violation, anything in clause 12 to the contrary notwithstanding.

3. Status of other workers.-(a) The Employer shall not employ any other employees who are not members in good standing of a local union or joint board affiliated with the Amalgamated Clothing Workers of America. In the event the Employer violates this provision the Union shall be free to take such action as it deems appropriate, anything in clause 12 to the contrary notwithstanding. (b) In the event (1) the Employer fails to transmit to the said local union or Joint board affiliated with the Amalgamated Clothing Workers of America all sas required o be checked off and transmitted to it by the Employer in accordance with the provisions of the collective-bargaining agreement between the Employer and the said local union or joint board affiliated with the Amalgamated Clothing Workers of America; or (2) the Employer fails to comply with any arbitration decision or award rendered under the collective agreement beween the Employer and said local union or joint board affiliated with the Amalgamated Clothing Workers of America; or (3) of termination or absence of a collective agreement between the Employer and said local union or joint board affiliated with the Amalgamated Clothing Workers of America, the Union shall be free to take such action as it deems appropriate, anything in clause 12 to the contrary notwithstanding.

(c) The Union shall not support any stoppage by said local union or joint board affiliated with the Amalgamated Clothing Workers of America, under the provisions of this clause 3, unless said local union or joint board obtain the consent of the Union before effecting such stoppage. Said local union or joint board shall be notified by the Union before the Union effects any stoppage under the provisions of this agreement against the Employer.

4. Registration.-(a) The Employer shall furnish to the Union, once each month, a written list indicating all Agent Drivers employed by it and their helpers, if any, as well as laundry stores or other wholesale customers for whom The Employer processes work. Changes made in said list shall be communicated to the Union by the Employer by means of a written supplementary list, and the sad changes shall be incorporated in the written list furnished to the Union in following month.

The Employer shall process work for only such laundry storekeepers or other wholesale customers as are registered with and agreed upon by the Union, 151 which employ only members in good standing of the Amalgamated Clothing Workers Union, and which laundry storekeepers, if they drive a vehicle themselves in the operation of a laundry route, are members in good standing of the Frion. It is the purpose and intent of the parties, by this provision, to eliminate destructive competition of nonunion labor to prevent undue overtaxing of facilies of the Employer's laundry and to avoid vicious speed-ups. It is the expectaand hope of the parties hereby to minimize undermining of fair labor stand

2. Except as herein modified and amended, the Agreement shall continue in full force and effect until the 19th day of June 1952, or earlier as herein provided.

In witness whereof the parties hereto have caused this Supplemental Agree ment to be executed by their duly authorized agents.

INTER-BOROUGH LAUNDRY BOARD OF TRADE, INC.,

By LOUIS H. SOLOMON, Employer.

INDEPENDENT LAUNDRY DRIVERS UNION LOCAL 324 OF THE
AMALGAMATED CLOTHING WORKERS OF AMERICA,

By MURRAY M. GASSMA, Manager.

CERTIFICATE OF AUTHORIZATION

We, the undersigned employers have authorized the Supplemental Agreement dated June 19, 1947 between the Inter-Borough Laundry Board of Trade, Inc., and the Independent Laundry Drivers Union Local 324 of the Amalgamated Clothing Workers of America and do hereby ratify same with the same force and effect as if the same were entered into between said union and each of the undersigned individually and executed by each of the undersigned individually. (Signed by employers.)

SUPPLEMENTAL AGREEMENT

Supplemental agreement made this 26th day of December 1947 between InterBorough Laundry Board of Trade, Inc., with its principal place of business located at 101 Park Avenue, New York City (hereinafter called the "Association"), for and on behalf of its members signatory hereto (herein collectively called the "Employer"), and INDEPENDENT LAUNDRY DRIVERS UNION LOCAL 324 of the AMALGAMATED CLOTHING WORKERS OF AMERICA, located at 799 Broadway, New York, N. Y. (hereinafter called the Union), for and on behalf of the members thereof now employed or hereafter to be employed by the Employer and collec tively designated as "Agent Drivers."

Whereas, the parties hereto are parties to a collective bargaining agerement dated May 1, 1946, and to agreements supplemental thereto dated May 1, 1946, and June 19, 1947 (said collective bargaining agreement and supplements being hereinafter referred to as the Agreement), and which Agreement is in full force and effect and by its terms will not expire until June 19, 1952, and

Whereas, the parties desire to amend the Agreement in the manner hereinafter set forth,

Now, therefore, in consideration of the premises, the parties agree that the Agreement shall be modified and amended as follows:

1. Clause 5-E of the Agreement is changed to read as follows:

"In the event the Employer charges its retail customers, or in the event the Employer's regular drivers or its own or other storekeepers charge the Employer's or the storekeepers' retail customers, prices for laundry services that are less than the prices which the Employer instructs its Agent Drivers to charge to the public, then the prices to be charged by the Agent Drivers to the public shall be reduced so as to equal said lesser prices charged by the Employer or by its regular drivers or by the storekeepers, and the commissions provided for in Clause 3-B hereof shall be calculated upon said lesser prices charged by the Agent Drivers. The foregoing provisions shall be fully applicable to 'cash and carry' laundry services performed by the Employer except that a differential of 20 percent between the prices charged by the Employer to cash and carry' customers and the prices charged to other retail customers for laundry services shall be permitted before the requirement of reducing the prices to be collected by the Agent Drivers becomes effective. If the Employer fails or refuses to comply with the provisions of this paragraph after demand by the Union, the Union may submit the matter to arbitration and, in the event the Arbitrator finds that the Employer has violated this paragraph he shall "ward damages for such violation in addition to such other relief as he may find appropriate."

2. Clause 12 of the Agreement is amended by including 5-E in the clauses enumerated therein.

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