In this сase, we are called upon to examine the right of a labor organization, consonant with the provisions of the National Labor Relations Act (N.L.R.A.), to discipline those members who have crossed its picket line to work during an authorized strike. We must determine the effect which a member’s resignation from the union, before, during, or after such conduct, has upon the union’s disciplinary authority. We are also requested to consider the legal implications of the “reasonableness” of the fines imposed, where the union has threatened enforcement thereof, or has actually sought collection through legal means.
The essential facts are not in dispute. Booster Lodge No. 405, International Association of Machinists and Aerospace Workers, AFL-CIO (hereinafter sometimes referi’ed to as the Union), and The Boeing Company, (hei’einafter sometimes referred to as the Company), were parties to a collective bargaining agreement which was effective from May 16, 1963, through September 15, 1965.
During the strike period, approximately 143 employees, of the 1900 production and maintenance employees represented by the Union at the Michoud plant, crossed the picket line and reported to work. All of these persons had been Union members during the 1963-1965 contract period. Some of the employees who worked during the strike made no attempt to resign from the Union during the strike. The remaining 119 submitted their voluntary resignations, in writing, to both the Union
In late October or early November of 1965, the Union notified all members and former members whо had crossed the picket line to work during the strike that charges had been preferred against them under the International Union Constitution, for “Improper Conduct of a Member” due to their having “accept[ed] employment ... in an establishment where a strike exist [ed].” They were advised of the dates of their Union trials, which were to be held even in their absence if they did not appear, and they were notified of their right to be represented by any counsel who was a member of the International Association of Machinists and Aerospace Workers. Pursuant to the International Union Constitution provision which permitted the imposition of disciplinary measures, including “reprimand, fine, suspension, or expulsion from membership, or any lesser penalty or combination,” where a member had been found guilty of misconduct after notice and a hearing, fines were imposed on all employees who had worked during the strike. No distinction was drawn between those persons who had resigned from the Union during the course of the strike and those who had remained Union members.
Employees who did not appear for trial before the Union Trial Committee and those who appeared but were found guilty were fined $450.00 each, the amount determined by the membership, and they were barred from holding a Union office for a period of 5 years. The fines of about 35 employees who appeared for trial, apologized, and pledged loyalty to the Union, were reduced to 50 percent of the earnings they received during the strike.
Although none of the $450.00 fines has been paid, reduced fines have been paid in some instances. The Union has sent out written notices that the matter has been referred to an attorney for collection, that suit will be filed if the fines remain unpaid, and that reduced fines will be reinstated to $450.00 in the event of nonpayment. The Union has also filed suit against nine individual employees to collect the fines (plus attorney’s fees and interest). None of these suits has yet been resolved.
On February 18, 1966, the Company filed a charge with the N.L.R.B., alleging that the Union had violated Section 8(b) (1) (A) of the N.L.R.A.,
Finally, the Board determined (4) that it was not the intention of Congress to have the N.L.R.B. regulate the size of such disciplinary fines and establish standards with respect to their reasonableness, and it dismissed the claim that otherwise legal fines may be rendered violative of the N.L.R.A. if unreasonably large. A cease and desist order was issued, and the Union was ordered to refund any fines collected from employees who had resigned before returning to work. The Union was also required to refund a pro rata portion of those fines collected from employees who had resigned after first engaging in work during the strike, so that the part of the fines retained would only reflect pre-resignation conduct.
Booster Lodge 405 challenges the Board’s conclusion that a mid-strike resignation from a union relieves an individual from the burden of union discipline with respect to his post-resignation activity, while The Boeing Company contends that the N.L.R.B. should have examined the reasonableness of the fines imposed by the Union. The Board seeks enforcement of its order.
Part I of this opinion discusses the legality of the imposition of the disciplinary fines by the Union in response to the strikebreaking by the approximately 143 employees involved. Part II considers the effect the reasonableness of the fines has upon their propriety under the N.L.R.A., and the proper function of the N.L.R.B. in this area. Finally, Part III deals with the propriety of the Board’s remedial order.
I
The Legality of the Disciplinary Fines A. The Employees Who Did Not Resign
As early as 1954, in Minneapolis Star and Tribune Co.,
National labor policy has been built on the premise that by pooling their economic strength and acting through a labor organization freely chosen by the majority, the employees of an appropriate unit have the most effective means of bargaining for improvements in wages, hours, and working*1150 conditions. The policy therefore extinguishes the individual employee’s power to order his own relations with his employer and creates a power vested in the chosen representative to act in the interests of all employees. “Congress has seen fit to clothe the bargaining representative with powers comparable to those possessed by a legislative body both to create and restrict the rights of those whom it represents ...”
Integral to this federal labor policy has been the power in the chosen union to protect against erosion [of] its status under that policy through reasonable discipline of members who violate rules and regulations governing membership. That power is particularly vital when the members engage in strikes. The economic strike against the employer is the ultimate weapon in labor’s arsenal for achieving agreement upon its terms, and “[t]he power to fine or expel strikebreakers is essential if the union is to be an effective bargaining agent ft
In more recent decisions, the Supreme Court has reaffirmed the right of a union to impose and enforce reasonable fines against members who engage in strikebreaking activities. In Scofield v. N.L.R.B.,
B. The Employees Who Did Resign
As the Supreme Court recognized in Allis-Chalmers, when Section 8(b) (1) (A) was enacted, “Congress was operating within the context of the ‘contract theory’ of the union-member relationship which widely prevailed at that time.” N.L.R.B. v. Allis-Chalmers Mfg. Co., supra,
In Allis-Chalmers, the Court expressly limited its holding to “reasonable discipline of members who violate rules and regulations governing membership.” N.L.R.B. v. Allis-Chalmers Mfg. Co., supra,
As an employee, [an individual] may be a “good, bad, or indifferent” member so long as he meets the financial obligations of the union security contract. * * * But as a union member, so long as he chooses to remain one, he is subject to union discipline. (Emphasis supplied.)
See
Approximately 58 of the employees who worked during the strike submitted their resignations to the Union after they had already engaged in some of the conduct proscribed by the International Union Constitution. In
The provisions of a contract are enforceable, and a cause of action can be brought upon them, even after the expiration or termination of the agreement. The rights and duties created by an agreement are extinguished only prospectively by the termination thereof. Thus the termination of some employees’ membership here did not affect the Union’s subsequent assertion of rights which had accrued to the Union during their earlier period of membership, such as the right to discipline the employees for prior strikebreaking. The effect of these employees’ resignations was only to extinguish the Union’s future authority over them.
Booster Lodge No. 405, International Association of Machinists and Aerospace Workers, AFL-CIO,
C. Fines Imposed for Post-resignation Conduct
An extremely difficult question is presented with respect to the fines which were imposed upon employees for their posi-resignation conduct.
It must be emphasized that in situations like this, while “the function of the court is to determine, as far as is possible, the intention of the contracting parties and to give legal effect thereto,”
In addition, an extremely important national labor policy militates against the imposition of such an im
The Union has relied heavily upon the First Circuit’s holding in N.L.R.B. v. Granite State Joint Board, Textile Workers Union, Local 1029,
Since the International Union Constitution and By-laws contained no express restriction upon a member’s right to resign it is clear that the strikebreaker/employees were free to resign at will, subject only to their being bound by any permissible collective bargaining agreement provision limiting this right. Local Union 621, United Rubber, Cork, Linoleum and Plastic Workers of America,
We agree that the proviso [to § 8(b) (1) (A)] protects the Union’s right to make its own rules with respect to membership, but assuming, arguendo, that a rule wholly prohibiting voluntary resignations would be valid, we think that in the absence of any rule on the subject of voluntary resignation, the proviso is inapplicable. Concededly the Union Constitution and by-laws are absolutely silent as to whether a member can voluntarily resign. Hence we think that the common law doctrine on withdrawal from voluntary associations is apposite. Under that doctrine, a member of a voluntary association is free to resign at will, subject of course to any financial obligations due and owing the association, [citations omitted]20
For the reasons set out above, we conclude that the Labor Board correctly determined that “the Union’s right to discipline employees terminated upon the employees’ submission of their letters of resignation [, thus t]he attempted imposition of discipline for subsequent conduct was beyond the powers of the Union.” Booster Lodge No. 405, International Association of Machinists and Aerospace Workers, AFL-CIO, supra, 1970 CCH NLRB ¶ 22,259, at p. 28,692.
II
The Board’s Duty to Determine the Reasonableness of Fines
In its decision below, the N.L.R.B. relied upon a companion case, International Association of Machinists and Aerospace Workers, Local 504 [Arrow Development Co.],
The Board’s belief that it does not have the obligation of examining the reasonableness of union fines in Section 8(b) (1) (A) proceedings is based upon a clear misconception of the law and the Supreme Court’s relevant decisions. In Allis-Chalmers, the Court stated:
It is no answer that the proviso to § 8(b) (1) (A) preserves to the union the power to expel the offending member. Where the union is strong and membership therеfore valuable, to require expulsion of the member visits a far more severe penalty upon the member than a reasonable fine.
N.L.R.B. v. Allis-Chalmers Mfg. Co., supra,
Since the imposition of an unreasonably excessive disciplinary fine is violative of Section 8(b) (1) (A), it is clearly the obligation of the N.L.R.B. to resolve the question of reasonableness where such an issue is appropriately raised. The Board asserts that such a result might cause conflicts between it and state courts which attempt to examine the reasonableness issue in actions to collect such fines. However, we do not believe that this possible problem detracts from the Board’s obligation under the N.L.R.A.
We recognize that “state courts have been adjudicating internal union disputes for more than 60 yeаrs.” Summers, The Law of Union Discipline: What the Courts Do in Fact, 70 Yale L. J. 175 (I960).
Other factors also support the conclusion that Board intervention is authorized in this very limited area, despite the historical activity of state courts and the reluctance of the 80th Congress to interfere in the internal affairs of unions. There is something to be said for having the reasonableness of fines determined by standards that are as nearly uniform as national standards promulgated by the N.L.R.B. can be. Furthermore, access to the Labor Board is more readily available than meaningful access to state courts. Before the Board, the employee is represented by the General Counsel, and the agency bears the expense of the litigation. If the same employee wants a complete resolution of the reasonableness issue in a state court collection action brought by the union, he must be prepared to accept at least some financial burden. “The danger that the legal rights of a disciplined member will go by default because of the cost of asserting them in court is obvious . . . ” Summers, The Law of Union Discipline: What the Courts Do in Fact, 70 Yale L.J. 175, 220 (1960). We therefore reject the argument that the N.L.R.B. is required to defer to state tribunals with respect to the reasonableness issue. Such “reverse preemption” would not, in our view, be consonant with the principles underlying the N.L.R.A.
Although the Board has not previously had to examine the reasonableness of union fines, it is not without experience in a related area. Under Section 8(b) (5),
The Board must remember that a fine imposed for the violation of a legitimate union rule should be viewed as presumptively protective, and therefore privileged, when the amount of the fine, taking into account the character and importance of the ends served by the rule being enforced, is reasonably related to the need for protection. On the other hand, if the amount of the fine is such as to be inordinately disproportionate to the needed protection, an inference is warranted that the fine was imposed upon the member, not in vindication of a legitimate union interest, but rather as a reprisal for his having exercised a statutorily protected right. In the latter situation, as we have previously indicated, the fine would be “coercive” within the meaning of Section 8(b) (1) (A) of the Act. In determining whether an imposed fine is privileged or prohibited, due to its size, many factors may properly be considered by the Boаrd. We shall mention several obvious factors which might be considered on remand, along with others the Board may consider to be applicable.
The reasonableness of a fine would necessarily have to be determined in light of the circumstances- leading to its imposition. Such factors as the compensation received by the strikebreakers, the level of strike benefits made available to the striking employees, the individual needs of the persons being disciplined, the detrimental effect of the strikebreaking upon the effectiveness of the strike effort, the length of time of the work stoppage, the strength of the particular union involved, the availability of other less harsh union remedies, and many other similar considerations would clearly be relevant.
One additional consideration is worthy of mention. In its original Scofield decision,
Labor Board Remedy Although we are remanding this case to the N.L.R.B. for further consideration of the reasonableness question, it is apparent that the other aspects of the Board’s decision below should be immediately affirmed. As was noted earlier in this opinion, the cease and desist order prohibiting further Union action pertaining to post-resignation strikebreaking conduct is granted enforcement. A more difficult question arises with respect to the affirmative aspects of the Board’s decision.
“In § 10(c) of the Act
With these considerations in mind, we clearly must affirm that part of the Board’s order which requires the Union to reimburse the approximately 35 employeеs who apologized and pledged loyalty, thereby obtaining a reduction in their respective penalties, for any amounts paid which were based upon post-resignation strikebreaking earnings.
With respect to the Board’s order as it relates to the remaining employees who resigned, the Board established a reimbursement formula which pro rated each employee’s respective fine, thereby limiting the collectable portion to that part which reflects the amount Of pre-resignation conduct. It obviously believed that this was the most reasonable manner in which to rectify the effects of the Union’s unfair labor practice with respect to these persons.
The utilization of remedial formulas has been approved by the Supreme Court. N.L.R.B. v. Seven-Up Bottling Co.,
The case is remanded to the Labor Board for further consideration of the questions relating to the reasonableness of the fines imposed by the Union.
So ordered.
Notes
. At the time of the execution of the 1903-1905 agreement, Booster Lodge No. 405 was not yet in existence. Boeing’s Michoud, Louisiana plant, with which we are concerned in this case, was considered to be a “remote location” unit, identified with the “primary location” unit at Seattle-Renton, AYashington. Therefore, the production and maintenance employees in the Michoud unit were represented by Aeronautical Industrial District Lodge No. 751, I.A.M., AFL-CIO, of Seattle, a signatory to the above-mentioned contract with Boeing. Booster Lodge No. 405 came into existence sometime later in 1963, with jurisdiction over the Michoud plant, but the bargaining agreement was not modified to reflect this occurrence.
. The Union objected below to the fact that notices of resignation were sent to District Lodge 751, rather than to Booster Lodge 405. However, since Booster Lodge 405 was not a party to the original 1963-1905 agreement, as explained in footnote 1, supra, it is clear that the employees who notified District Lodge 751 were attempting to comply with the applicable contractual requirements. Furthermore, District Lodge 751 notified Booster Lodge 405 of all resignations it received. AVe thus see no validity in the objection.
. Employeеs who worked during the strike earned between $2.38 and $3.63 per hour, or between $95 and $145 per 40-hour week. In some instances, earnings during the strike period were supplemented by the inclusion of bonus or premium rates for weekend and overtime work.
. 29 U.S.C. § 158(b) (1) (A) (1970), which provides:
(b) It shall be an unfair labor practice for a labor organization or its agents—
(1) to restrain or coerce (A) employees in the exercise of the rights guaranteed in section 157 of this title: Provided, That this paragraph shall not impair the right of a labor organization to prescribe its own rules with respect to the acquisition or retention of membership therein;
29 U.S.C. § 157 (1970) provides:
Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all of suсh activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment as authorized' in section 158(a) (3) of this title.
. See n. 4, supra.
. For another good analysis of the legislative history of § 8(b) (1) (A), see National Maritime Union,
. The Company has asked this court to overrule Allis-Chalmers in order to force reconsideration of the union discipline area by the Supreme Court, but that is not our function. We recognize that “the Supreme Court should retain the exclusive privilege of overruling its own decisions, save perhaps when opinions already delivered have created a near certainty that only the occasion is needed for pronouncement of the doom.” Salerno v. American League of Professional Baseball Clubs,
. See Part II, infra, regarding the effect of the “reasonableness” of the fines imposed on their legality under § 8(b) (1) (A).
. In Allis-Chalmers, all of the persons disciplined by tiie union enjoyed full membership status. Thus the Court was not required to decide what obligations vis-a-vis the union a person would be under where he was not a full member, but only a “limited member” who merely paid dues and fees in accordance with an appropriate union-security agreement.
. “[N]o employee is subject to union rules if he chooses to forego the privileges and duties of union membership.” Silard, Labor Board Regulation of Union Discipline After Allis-Chalmers, Marine Workers and Scofield, 38 Geo.Wash.L.Rev. 187, 190 (1969). See International Association of Machinists and Aerospace Workers, Local Lodge 504,
. A resignation acts to terminate the existing relationship so far as the incursion of future obligations is concerned. Previously established or perfected liabilities survive the termination. See 5A Corbin, Contracts § 1229, pp. 508-510 (1964).
. This would, of course, include the approximately 61 persons who resigned from the Union before engaging in any strikebreaking activity, as well as the 58 persons discussed previously, who resigned during the period of their strikebreaking, so far as their actions undertaken after they effectively resigned are concerned.
. 1 Corbin, Contracts § 95, p. 396 (1963).
. Summers, Legal Limitations on Union Discipline, 64 Harv.L.Rev. 1049, 1059-1061 (1951), and see cases cited therein.
. 29 U.S.C. § 157 (1970). See n. 4, supra.
. See
.
.
. To the extent that the First Circuit’s decision in Granite State may be read to support Booster Lodge 405’s position here, we respectfully decline to follow it.
. We express no opinion herein concerning the legality of any union constitution or by-law provision expressly limiting the right of a member to resign during the period of an ongoing strike. Compare N. L. R. B. v. International Union, U.A.W.,
. It is clear, as the Board has recognized, that the “resignations were effective upon receipt of notification by the Union." Local 1012, U.E.,
. This would include the Union’s effort not only to discipline those employees who had resigned from membership before engaging in any strikebreaking, but also the organization’s imposition of fines
. The fact that the fines imposed upon the employees for conduct undertaken after they had severed their ties with the Union might not have been collectable in a subsequent collection suit, does not detract from the fact of their eoerciveness at the time they were imposed. See N. L. R. B. v. American Bakery and Confectionery Workers, Local 300,
. This result also supports the Board’s conclusion that the Union fines which were imposed upon the approximately 35 persons who apologized and pledged loyalty, should be confined to 50% of their pre-resignation strikebreaking earnings, since any attempt to enforce the discipline with respect to post-resignation remuneration could be reasonably construed as an effort to punish the very conduct which we have held the Union may not so regulate. “While it is true that [the Board’s] retroactive order might afford [these] employees a better position . . . the Board can hardly be said to be effectuating policies beyond the purposes of the Act by resolving the doubt against the party who violated the Act.” Leeds & Northrop Co. v. N. L. R. B.,
. Appeal is now pending before the Ninth Circuit, sub nom. David O’Reilly v. N. L. R. B., No. 26,892.
. We emphasize the fact that in the instant case, the Union not only threatened to utilize court action to enforce the fines imposed, but in several instances, actual collection suits were begun. Under such circumstances, we believe that the reasonableness of the fines in question is highly relevant to the question of their legality under § 8(b) (1) (A). We intimate no view regarding the need for an examination of the reasonableness of disciplinary fines where the only enforcement mechanism contemplated by the union involves the expulsion of the individual from the union.
. Although the Union has argued that the aggrieved employees should not have the right to have a Board determination concerning the reasonableness of the fines imposed, due to the fact that they have nоt exhausted all available internal Union remedies, we reject this contention. An individual need not, in all eases, exhaust all internal union procedures before seeking the services of the N. L. R. B. See N. Li. Lt. B. v. Industrial Union of Marine etc. Workers,
. Justice White, in his concurring opinion, observed:
[S]inee expulsion would in many cases —certainly in this one involving a strong union — be a far more coercive technique for enforcing a union rule and for collecting a reasonable fine than the threat of court enforcement, there is no basis for thinking that Congress, having accepted expulsion as a permissible technique to enforce a rule in derogation of § 7 rights, nevertheless intended to bar enforcement by another method [court action] which may be far lеss coercive.
. Even the attorney who argued Allis-Chalmers for the union before the Supreme Court has recognized this limitation in the Court’s decision. He has indicated that Allis-Chalmers only determined that “a union suit to collect a reasonable fine imposed on a member for violating a ‘no strikebreaking’ rule does not violate section 8(b) (1).” Silard, Labor Board Regulation of Union Discipline After Allis-Chalmers, Marine Workers and Scofield, 38 Geo.Wash.L.Rev. 187, 190 (1969) (emphasis supplied).
. The question of the extent to which union action for enforcement of disciplinary penalties is pre-empted by federal labor law is not before this court, and we intimate no view concerning the resolution of this complex issue. Compare San Diego Building Trades Council etc. v. Garmon,
. See cases cited
. N.L.R.B. v. Allis-Chalmers Mfg. Co., supra,
. Although the Union has cited language in U. O. P. Norplex, Div. of Universal Oil Products Co. v. N.L.R.B.,
. We emphasize the fact that “[t]he function of striking that balance to effectuate national labor policy is often a difficult and delicate responsibility, which the Congress committed primarily to the National Labor Relations Board . . ” N.L.R.B. v. Truck Drivers Union, etc.,
. 29 U.S.C. § 158(b) (5) (1970), which provides:
(b) It shall be an unfair labor practice for a labor organization or its agents—
*****
(5) to require of employees covered by an agreement authorized under subsection (a) (3) [, i. e., a union-security provision,] the payment, as a condition precedent to becoming а member of such organization, of a fee in an amount which the Board finds excessive or discriminatory under all the circumstances. In making such a finding, the Board shall consider, among other relevant factors, the practices and customs of labor organizations in the particular industry, and the wages currently paid to the employees affected; (emphasis supplied)
. See, e. g., Longshoremen, I.L.A., Local 1419,
. See 29 U.S.C. § 158(b) (2) (1970), which provides, inter alia:
(b) It shall be an unfair labor practice for a labor organization or its agents—
(2) to cause or attempt to cause an employer to discriminate against an employee in violation of subsection (a)
(3). . . .
29 U.S.C. § 158(a) (3) (1970), provides, inter alia:
(a) It shall be an unfair labor practice for an employer—
* * * * *
(3) by discrimination in regard to hire or tenure of employment or any term or condition of employment to encourage or discourage membership in any labor organization. . .
. AVe, of course, recognize that Section 8(b) (2) was enacted to prevent a union from improperly interfering with an individual’s employment relationship through his employer. However, this does not detract from the fact thаt this provision evidences a Congressional desire to protect an employee from any unreasonable adverse affect on his employment status by a labor organization. See N.L.R.B. v. Allis-Chalmers Mfg. Co., supra,
. 29 U.S.C. § 160(c) (1970) authorizes the Board to require the perpetrator of an unfair labor practice “to take such affirmative action ... as will effectuate the policies of this [Act] . . . ”
. Office and Professional Employees International Union, Local 425 v. N.L.R.B.,
. See cases cited
. See n. 24, supra, for further discussion of the remedy pertaining to these persons.
. We are cognizant of the fact that the Union’s $450.00 fine was imposed upon all strikebreakers — except those who apologized and pledged loyalty — regardless of the number of days of strikebreaking engaged in by each. Although the Union argues that this fact indicates that no pro rata reduction should have been required by the Board with respect to these employees, we recognize the N.L.R.B.’s obvious desire to formulate an affirmative order which would rectify the Union’s improper attempt to punish post-resignation conduct. AVe cannot conclude that the Board has abused its broad discretionary authority in this area. See N.L.R.B. v. Seven-Up Bottling Co.,
