MEMORANDUM OPINION
Plаintiffs in this action have filed a complaint on behalf of themselves and putative class members alleging that defendant has violated the first amendment, the National Labor Relations Act (NLRA) § 8(a)(3) and the duty of fair representation owed by the defendant to plaintiffs. Plaintiffs are employees of private telephone companies who work in collective bargaining units represented by Communications Workers of America (CWA) and pay agency fees to CWA pursuant to collectively bargained union security provisions.
Plaintiffs maintain that the current collection of agency fees is in excess of the amount of such fees which the union spends on collective bargaining activities and thus violates the first amendment, the NLRA, and the duty of fair representation. Defendant acknowledges the collection of fees in excess of those needed to support collective bargaining activity, but maintains that because the excess is not spent on non-collective bargaining activity, but rather held in an interest-bearing escrow account to be later refunded to plaintiffs, defendant is not in violation of any duty to plaintiffs. Defendant further maintains that no state action is involved such as to *921 make defendant subject to the first amendment.
Defendant has filed a motion to dismiss, and plaintiffs have filed a motion for a preliminary injunction. The Court addresses each of these motions in turn.
I. Defendant’s Motion to Dismiss
A. First Amendment Claim
Plaintiffs’ complaint, the facts of which are taken as true for purposes of this motion, alleges that the agency fees collected by defendant are spent on political and ideological activities not authorized by plaintiffs, in violation of plaintiffs’ first amendment rights. Defendant argues that, insofar as plaintiffs’ complaint states a first amendment claim, that complaint fails for want of state action.
This issue was recently before the Supreme Court in
Communications Workers of America v. Beck,
— U.S. -,
In
Kolinske,
the Court of Appeals addressed the issue of whether the defendant union violated the constitutional rights of the nonmember employee plaintiff when it refused to pay him strike benefits. Plaintiff had refused to participate in any strike activities except to honor the picket line. The strike benefits were paid from fees collected under an agency shop clause similar to the one at issue in this action. The Court of Appeals addressed at length the issue of whether or not the agency shop clause negotiаted between a private union and a private employer pursuant to the NLRA constituted state action. This discussion encompassed all but one of the line of cases relied upon by plaintiffs, beginning with
Railway Employes’ Department v. Hanson,
This line, which also includes
International Association of Machinists v. Street,
More troubling to the
Kolinske
court, and to plaintiffs in the present action, is the Supreme Court’s expansive dicta in
Abood,
in which the court stated that “differences between public- and private -sector bargaining simply do not translate into differences in First Amendment rights.”
Plaintiffs argue that
Kolinske
has been overruled by the Supreme Court
sub silentio
in
Ellis v. Railway Clerks,
This court does not read Ellis so broadly. As the Supreme Court most recently pointed out in Beck:
[W]e ruled in Railway Employes’ Dept. v. Hanson,351 U.S. 225 [76 S.Ct. 714 ,100 L.Ed. 1112 ] (1956), that because the RLA pre-empts all state laws banning union security agreements, the negotiation and enforcement of such provisions in railroad industry contracts involves “governmental action” and is therefore subject to constitutional limitations.
— U.S. at -,
Defendant cites two other cases, cited in both
Kolinske
and
Beck,
which support defendant’s reading of
Kolinske
and the proposition that actions of private unions covered by the NLRA are not state action. In
Steelworkers v. Sadlowski,
Lastly, plaintiffs attempt to distinguish
Kolinske
on its facts, adopting the distinction made by Judge Murnaghan in the concurrence in
Beck v. C.W.A.,
Even accepting this distinction as meritorious, it does not serve in itself to make actions under § 8(a)(3) constitute state action for two reasons. First, the argument fails to distinguish
Weber, supra,
in which an employer was intimately involved in enforcing the terms of the affirmative action plan incorporated into the collective-bargaining agreement. Like agency shop clauses under the NLRA, federal law merely authorizes such agreements, but does not mandate them, and thus no state action is involved. Second, because
Kolinske
and
Beck
both involve § 8(a)(3) issues, drawing a distinctiоn between them does not advance the idea that all actions under § 8(a)(3) involve state action, as appears to be the case under the RLA § 2(11). Thus, this distinction is only a factor to be considered in determining whether state action
*923
exists in
this
case, under the test set forth in
Lugar v. Edmondson Oil Co.,
The first part of the
Lugar
test examines whether the alleged deprivation of constitutional rights is caused by “the exercise of some right or privilege created by the state or by a rule of conduct imposed by the state or by a рerson for whom the state is responsible. The second part of the test asks whether the person responsible for the deprivation may be held to be a state actor,
e.g.
the actor performed a traditional public function, was compelled to act by state law, or acted in concert with the state.
B. The § 8(a)(3) Claim
Defendant challenges plaintiffs’ § 8(a)(3) claim on the grounds that the National Labor Relations Board (NLRB) has primary jurisdiction over this claim. Defendant correctly relies on
Beck
which affirms this general rule. — U.S. -,
In Beck, under circumstances nearly identical to this case, the Court found that “the necessity of deciding the scope of § 8(a)(3) arises because petitioners [the union] seek to defend themselves on the ground that the statute authorizes precisely this type of agreement [an agency shop agreement authorizing the exaction of fees unrelated to collective bargaining].” Under these circumstances, the Court held that the federal court had jurisdiction “to decide the § 8(a)(3) question raised by respondents’ duty of fair representation claim.” Id. This court finds Beck indistinguishable on this point, and thus finds jurisdiction to the extent allowable under Beck.
C. Duty of Fair Representation
Although defendant chаllenged this claim in its original motion to dismiss, it has since acknowledged that plaintiffs’ claim for breach of the duty of fair representation states a cognizable claim under Beck.
For the reasons set forth above, defendant’s motion to dismiss will be granted as to plaintiff’s first amendment claim, and denied as to plaintiffs’ § 8(a)(3) and duty of fair representation claims.
II. Preliminary Injunction
Plaintiffs’ motion for a preliminary injunction follows hard on the heels of the Supreme Court’s decision in Beck, supra. In that сase, the Court held that Section 8(a)(3) of the NLRA prohibits a union from exacting, over the objection of nonmember employees, any agency shop fees beyond those necessary to finance collective bargaining activities. Plaintiffs here seek to enjoin defendant from collecting such fees. Under the present arrangement, the union collects from the plaintiffs an amount equal to the dues of union members, but holds a portion of the fee in an interest-paying escrow account. When defendant determines the percentage of the union budget not spent on collective bargaining activities, that percentage of the fee is refunded to plaintiffs and other objecting employees.
Defendant concedes that, after
Beck,
plaintiffs have stated a claim for breach of the duty of fair representation. Indeed,
*924
defendant avows that it will change to an advance-reduction method of collection in 1989, and argues that the delay is necessary only for administrative convenience. The court is troubled by its perception that defendant’s collection system does not meet the requirements of
Beck
and by defendant’s delay in so conforming the system. Nonetheless, even assuming that plaintiffs are likely to prevail on the merits, plaintiffs are not entitled to a preliminary injunction for two reasons. First, plaintiffs have failed to show the traditionаl common law requirement of irreparable harm necessary to the remedy of injunctive relief. See
Virginia Petroleum Jobbers Assoc v. Federal Power Com’n,
Plaintiffs claim that the payment of the excess fees into defendant’s escrow account deprives them of the use of the money for their own political, charitable and other expenditures. This deprivation has been recognized as a first amendment claim.
Seay v. McDonnell Douglas, Corp.,
In addition, the statеd harm is to some degree inevitable. Were the court to grant the injunction, plaintiffs would be required to post a bond equal to the money plaintiffs claim is being wrongfully exacted from them. 29 U.S.C. § 101; F.R.C.P. 65(c). Plaintiffs concede that they would be unable to post a bond in that amount for the 50,000 putative class members, and suggest alternatively that they pay the contested fees into the registry of the court. The court declines to adopt this burdensome suggestion and notes that, were it to do so, the resulting burden to plaintiffs would be exactly the same. The defendant is not expending fees over their objections, but only depriving them of money which they would otherwise use for their own purposes. The preliminary injunction sought by plaintiffs would provide no remedy for this harm, as the money would be paid into the registry of the court and plaintiffs would still be deprived of its use.
Plaintiffs also fail to show that the “public interest,” which they claim is in enforcing the limited-purpose collections required under
Beck,
outweighs the federal labor policy against injunctions as recognized in
Machinists v. Street,
In
Street,
however, the Court went on to find that the use of an injunction to prohibit the сollection of any fees was improper. This would be true, the Court added, even where the injunction would be subject to modification to permit collection of that portion of the fee that the union could show were spent on collective bargaining activities.
This policy against interfering prematurely with union activities, which the Supreme Court has recognized under the RLA, is equally applicable under the NLRA. Cases cited by plaintiffs in which an injunction was found appropriate are first amendment cases and are thus inappli
*925
cable.
See Tierney v. City of Toledo,
For the reasons stated above, plaintiffs’ motion for a preliminary injunction will be denied.
ON MOTION TO RECONSIDER OR FOR INJUNCTION PENDING APPEAL
Following the denial of plaintiffs’ motion for a preliminary injunction on October 25, 1988, plaintiffs orally moved this court to reconsider the denial, and, in the alternative, filed a written motion for an injunction pending appeal pursuant to Federal Rule of Civil Procedure 62(c). After giving consideration to the points raised by plaintiffs in the motion and by defendant in its opposition, and by both parties in open court, the court concludes that plaintiffs’ motions must be denied.
Plaintiffs raise a total of nine bases for reconsideration of the propriety of an injunction in this case. These bases are divided between reconsideration of the plaintiffs’ first amendment claim, and reconsideration of non-first amendment related grounds for denial of the preliminary injunction. With respеct to the first amendment issue, plaintiffs submit that the court’s reading of
Communications Workers of America v. Beck,
— U.S. -,
Plaintiffs’ fifth amendmеnt specter, in this court’s view, is simply the ghost of plaintiffs’ earlier first amendment claim, and is likewise ephemeral. The earlier claim argued that the collection of money under the “condition of employment” language violated plaintiffs’ first amendment rights by preventing plaintiffs from using that money for their own political, charitable or other expenditures. Now plaintiffs rely on exactly the same rationale to provide state action in the сollection of fees without notice and hearing.
This analysis clearly ignores the reasoning of
Kolinske v. Lubbers,
In another point, plaintiffs contest this court’s adoption of what appears to be the still-honored distinction between the Railway Labor Act and the NLRA, namely that while the agency shop provisions of the RLA (§ 2, Eleventh) preempt state law and thus give rise to state action, the comparable NLRA prоvision merely authorizes such agreements. Unlike under the RLA, actions taken under the NLRA § 8(a)(3) have not been held to independently constitute state action.
See Beck, supra; Railway Employees’ Department v. Hanson,
Finally, plaintiffs cite
Steele v. Louisville & Nashville Railroad Co.,
Plaintiffs’ second group of points relates to the court’s denial of the preliminary injunction. Plaintiffs complain that, in suggesting that plaintiffs will prevail on the merits yet denying the preliminary injunction, the court in effect is saying “right writ, no remedy.” Plaintiff further objects to the court’s reference to the anti-injunc-tive provisions and policy of the Norris-La-Guardia Act, 29 U.S.C. § 101, and to the court’s finding of no irreparable injury.
The court is not saying “no remedy.” The court says, as did the Supreme Court, that “dissenting employees (at least in the absence of special circumstances not shown here) can be entitled to no relief until final judgment in their favor is entered.”
Railway Clerks v. Allen,
In appropriate cases, the Supreme Court has clearly stated that the Norris-LaGuardia Act does not forbid appropriate injunctive relief.
(Graham, supra
Finally, plaintiffs argue that their harm is not “inevitable”, because, under
Tierney,
*927
the court could order a three-tiered collection system which prevents illegal collections. The court offers no opinion on the ultimate adequacy of this remedy. The harm to which the court referred, however, is plaintiffs’ loss of the use of their money regardless of whether a preliminary injunction issued, because of the bond requirements of the Norris-LaGuardia Act and Federal Rule of Civil Procedure 65(c). Although the court agrees with plaintiffs that Rule 65(c) allows the court some discretion in setting the bond requirement, the plaintiffs have cited no cases supporting such discretion under the Norris-LaGuаrdia Act. Plaintiffs’ authority for waiving the bond requirement,
Damiano v. Matish,
For the reasons stated above and in the court’s memorandum opinion of October 25, 1988, the court finds plaintiffs have shown insufficient injury to warrant a preliminary injunction under the standards of
Virginia Petroleum Jobbers Asso. v. Federal Powers Com’n.,
Notes
. The Kolinske court distinguished Abood for several reasons, noting that the Abood court did not face the issue of state action, and that the Abood court itself pointed out that Hanson and Street were RLA cases, and that no similar preemption provision existed under the NLRA. Id.
. Indeed, pursuant to the court’s expressed concern regarding defendant’s collection system, defendant has taken steps to immediately effect an advance-reduction method of collection. See Third Declaration of Eileen Brackens, filed November 1, 1988. Although plaintiffs argue that the new system remains defective under Beck, *927 nevertheless it is clear that the harm to plaintiffs has been reduced as a result.
