BROTHERHOOD OF MAINTENANCE OF WAY EMPLOYES ET AL. v. UNITED STATES ET AL.
No. 381
Supreme Court of the United States
Argued March 28, 1961.—Decided May 1, 1961.
366 U.S. 169
Solicitor General Cox argued the cause for appellees. With him on the brief were Assistant Attorney General Loevinger, Ralph S. Spritzer, Richard A. Solomon and Robert W. Ginnane.
Ralph L. McAfee argued the cause for the Erie-Lackawanna Railroad Co., appellee. With him on the brief were John H. Pickering, Richard D. Rohr and Thomas D. Caine.
MR. CHIEF JUSTICE WARREN delivered the opinion of the Court.
The dispute in this case commenced when the Delaware, Lackawanna & Western Railroad Co. and the Erie
“As a condition of its approval, under this paragraph (2), of any transaction involving a carrier or carriers by railroad subject to the provisions of this part, the Commission shall require a fair and equitable arrangement to protect the interests of the railroad employees affected. In its order of approval the Commission shall include terms and conditions providing that during the period of four years from the effective date of such order such transaction will not result in employees of the carrier or carriers by railroad affected by such order being in a worse position with respect to their employment, except that the protection afforded to any employee pursuant to this sentence shall not be required to continue for a longer period, following the effective date of such order, than the period during which such employee was in the employ of such carrier or carriers prior to the effective date of such order.” (Emphasis added.)
Preliminarily, it must be noted that the adequacy of the New Orleans conditions is not an issue before this Court: Appellants did not challenge their sufficiency below, nor do they argue the point here.2 Rather, appellants’ sole contention is that no compensation plan is adequate unless it is based on the premise that all the employees currently on the payroll remain in the surviving railroad‘s employ for at least the length of their previous employment up to four years. Appellants do not say that every employee must remain in his present job, but they do insist that some job must remain open for each one. We think, however, that a review of the background of
Section 5 (2)(f), as it now appears, was enacted as part of the Transportation Act of 1940. A broad synopsis of the occurrences which led to the enactment of those sections on railroad consolidation of which
“[N]or shall any employee in such service be deprived of employment such as he had during said month of May or be in a worse position with respect to his compensation for such employment, by reason of any action taken pursuant to the authority conferred by this title.”
Shortly before the Emergency Act expired in 1936, a great majority of the Nation‘s railroads and brotherhoods entered into the Washington Job Protection Agreement,3 an industry-wide collective bargaining agreement which also specified conditions for the protection of employees in the event of mergers. Unlike the Emergency Act, however, the Washington Agreement provided for compensatory protection rather than the “job freeze” previously prescribed. Subsequently, efforts commenced to re-evaluate the law relating to railroad consolidations and a “Committee of Six” was appointed by the President to study the matter. Those portions of the Committee‘s final report pertaining to employee protection urged codification of the Washington Agreement4 and a bill drafted
A bill similar in this respect to S. 2009 was introduced in the House but, before it was sent to the Conference Committee, Representative Harrington inserted an amendment which added a second sentence to the one contained in the original version, this sentence stating that:
“[N]o such transaction shall be approved by the Commission if such transaction will result in unemployment or displacement of employees of the carrier or carriers, or in the impairment of existing employment rights of said employees.” 84 Cong. Rec. 9882.
The bill came out of the Conference Committee without Representative Harrington‘s addendum and, dissatisfaction having been expressed by Representative Harrington and others, a motion to recommit was passed by the House. This motion required that the language of the original House bill be restored “but modified so that the sentence in section 8 which contains the provision known as the Harrington amendment” should speak as the second sentence of
It would not be productive to relate in detail the various statements offered by members of the House to explain the significance of the events outlined above. It is enough to say that they were many, sometimes ambig-
The indications gleaned from the history of the statute are reinforced and confirmed by subsequent events. Immediately after the section was passed, interested parties—including the brotherhood appealing in this case—expressed the opinion that compensation protection for discharged employees was the intendment of
Appellants’ last point is that two cases in this Court have previously treated the present question favorably to their position. Railway Labor Executives’ Assn. v. United States, 339 U. S. 142, and Order of Railroad Telegraphers v. Chicago & North Western R. Co., 362 U. S. 330. However, neither the holding nor the language of these cases, in fact, supports appellants’ claim. The RLEA case was not concerned with the types of protection to be afforded employees for the first four years following the merger; the only question was whether
the United States in this case. It is noteworthy that this Court has recently affirmed a case in which the Commission imposed less comprehensive conditions than those in this case. City of Nashville v. United States, 355 U. S. 63.
In short, we are unwilling to overturn a long-standing administrative interpretation of a statute, acquiesced in by all interested parties for 20 years, when all the signposts of congressional intent, to the extent they are ascertainable, indicate that the administrative interpretation is correct. Consequently, the judgment of the District Court must be
Affirmed.
MR. JUSTICE DOUGLAS, dissenting.
This case is a minor episode in an important chapter of modern history. It concerns the impact of economic and technological changes on workers1 and the manner in
There are some who think that technological change will produce both our highest industrial and business activity and our greatest unemployment. Dr. Robert M. Hutchins recently stated the basic conflict between individual freedom and technology:
“Individual freedom is associated with doubt, hesitancy, perplexity, trial and error. These technology
that moves 20 tons of flour an hour, replacing 24 men who used to move 10 tons an hour. In the bread-baking department of this same plant, one half of the workers were supplanted by automation, and in the wrapping department, no less than 70 per cent of the workers formerly needed have been replaced by machines.
“In the textile industry, entire plants have moved out of New England towns to set up new automated factories in the South, using a comparative handful of workers and leaving great hardship and suffering behind. In the automobile industry, new electronically controlled assembly lines helped to cut total employment by 20 per cent between 1956 and 1958, and over 200,000 workers dropped out of the United Automobile Workers from mid-1957 to early 1959.
“In the shipping industry, huge containers are now packed and sealed at factories and loaded directly aboard special new compartmented ships, eliminating the need for thousands of longshoremen. In the transportation-equipment industry, production rose, but employment fell by a quarter of a million workers between January, 1956, and December, 1958. In the rubber industry, there was a drop of 25,000 workers. In the chemical industry, 36,000 workers were displaced by automation.” Davidson, Our Biggest Strike Peril: Fear of Automation, Look Magazine, April 25, 1961, pp. 69, 75.
See also the remarks of Walter P. Reuther, President, United Automobile Workers of America, as quoted in Christian Science Monitor, Thursday, Apr. 27, 1961, p. 4, col. 2: “When a worker is replaced by a machine, or his skill is made obsolete, or his plant moves, the change may benefit society as a whole and his employer in particular; but that worker is in trouble.”
The measure of the conflict is seen only in a broad frame of reference. As Dr. Hutchins said:
“Technology holds out the hope that men can actually achieve at last goals toward which they have been struggling since the dawn of history: freedom from want, disease, and drudgery, and the consequent opportunity to lead human lives. But a rich, healthy, workless world peopled by bio-mechanical links is an inhuman world. The prospects of humanity turn upon its ability to find the law that will direct technology to human uses.” Two Faces of Federalism (1961), p. 24.
The Secretary of Labor, Arthur J. Goldberg, recently put the problem in simple terms:2
“The issue being joined in our economy today—one that is present in some form in every major industrial negotiation—is simply stated: how can the necessity for continued increases in productivity,
This case is a phase of that problem.
This is not the first instance of a controversy settled in Congress by adoption of ambiguous language and then transferred to the courts, each side claiming a victory in the legislative halls.3
The Senate passed a bill which required the Interstate Commerce Commission in approving a railroad merger to make “a fair and equitable arrangement to protect the interest of the employees affected.”4 The House Committee adopted the same language.5 When the bill reached the floor of the House, Mr. Harrington suggested the following proviso:6
”Provided, however, That no such transaction shall be approved by the Commission if such transaction will result in unemployment or displacement of employees of the carrier or carriers, or in the impairment of existing employment rights of said employees.”
That amendment would have prohibited permanently the displacement of employees as a result of mergers. It was adopted by the House.7 But in Conference that proviso was eliminated along with the merger provisions that gave rise to it.8 The House recommitted the bill with instructions that the provisions relating to combinations and consolidations of carriers be included in the bill, and be amended to provide that the Commission
The Conference accepted this version, limiting the protective clause to four years. The Conference Report emphasizes that the change made in the Harrington proposal was in limiting its operation to four years.10
“The substitute that we bring in here provides two additional things. First, there is a limitation on the operation of the Harrington amendment for 4 years from the effective date of the order of the Commission approving the consolidation. In other words, the employees have the protection against unemployment for 4 years, but the Commission is not required to give them benefits for any longer period. If the employees themselves make an agreement with the railroad company for a better or a longer period, that is a matter between the railroad men and the railroads, but this 4-year limitation is established by the pending conference agreement.
“There is another limitation on the protective benefits afforded by the amendment. The benefit period shall not be required for a longer period than the prior employment of the employee before the consolidation occurred. In other words, under the original Harrington amendment, if a man was employed for 6 months, he would indefinitely be subject to the benefits of the amendment from the railroad company. We have changed that so the railroad company will not be required to maintain him in no worse condition as to his employment for any longer period than he worked before the consolidation occurred.
“We believe that is a very fair and a very liberal provision for labor. We believe that railway labor substantially agrees in that viewpoint. We take nothing from labor by this agreement.” (Italics added.)
“It was recognized that the real intent of the sponsors was to save railroad employees from being suddenly thrust out of employment as the result of any consolidation or merger entered into.” (Italics added.)
These are the statements13 which, the Court says, “are entitled to the greatest weight” in interpreting the proviso. I do not think that these statements—nor any part of this legislative history—“clearly reveal an understanding that compensation, not ‘job freeze,’ was contemplated.” Instead I find this legislative history—as the Court elsewhere seems to recognize—to be, at best, ambiguous. Compensatory relief will result in the employees’ bearing the initial shock of the railroads’ reduction in plant. The Commission and the railroads contend for a philosophy of firing first and picking up the social pieces later. The Court seizes on ambiguous materials to impute to Congress approval of that philosophy. I would resolve the ambiguity in favor of the employees. I would read the proviso as meaning that nothing less than four-year employment protection to every employee
Notes
“In a bakery in Chicago, one man operates a piece of equipment
In this connection, it should be noted that appellants have contended that the lower court erred when it refused to accept certain testimony concerning the adequacy of the conditions. The short answer to this is that the court did not refuse to accept appellants’ proof; the court explicitly refrained from ruling on the matter when the offer was made and appellants never renewed their efforts. See R. 179.
Goldberg, Challenge of “Industrial Revolution II,” N. Y. Times Magazine, Apr. 2, 1961, p. 11. And see A. H. Raskin‘s recent series in the New York Times. N. Y. Times, Thursday, Apr. 6, 1961, p. 1, cols. 2-3; N. Y. Times, Friday, Apr. 7, 1961, p. 1, cols. 2-3; N. Y. Times, Saturday, Apr. 8, 1961, p. 1, cols. 2-3; N. Y. Times, Sunday, Apr. 9, 1961, p. 1, cols. 2-3.“Each employee of any carrier which is a party to a consolidation or merger pursuant to this section who was employed by such carrier immediately preceding the approval of such consolidation or merger, and whose period of employment began on or before March 1, 1941, shall be employed by the carrier resulting from such consolidation or merger for a period of not less than four years from the date of the approval of such consolidation or merger, and during such period no such employee shall, without his consent, have his compensation reduced or be assigned to work which is inconsistent with his past training and experience in the telegraph industry.” See also the remarks of Senator White, a proponent of this bill, at 89 Cong. Rec. 1195-1196.
H. R. Rep. No. 1217, 76th Cong., 1st Sess., p. 12.“Mr. VORYS of Ohio. Mr. Speaker, will the gentleman yield?
“Mr. LEA. I yield to the gentleman from Ohio.
“Mr. VORYS of Ohio. Would this 4-year rule have the effect of delaying a consolidation for 4 years, or would it mean that if a consolidation were made there would still be a 4-year period during which the man would be paid?
“Mr. LEA. No; this rule does not delay consolidation. It means from the effective date of the order of the Commission the benefits are available for 4 years. The order determines the date, and the protective benefits run 4 years from that date.
“Mr. VORYS of Ohio. That would be whether or not they were still employed?
“Mr. LEA. Yes.
“Mr. O‘CONNOR. Mr. Speaker, will the gentleman yield?
“Mr. LEA. I yield to the gentleman from Montana.
“Mr. O‘CONNOR. As I want to see those who might lose their jobs as a result of consolidation protected, I should like to have the gentleman‘s interpretation of the phrase that the employee will not be placed in a worse position with respect to his employment. Does ‘worse position’ as used mean that his compensation will be just the same for a period of 4 years, assuming that he were employed for 4 years, as it would if no consolidation were effected?
“Mr. LEA. I take that to be the correct interpretation of those words.”
See also the statements of conference member Halleck at 86 Cong. Rec. 10187, and conference member Wolverton at 86 Cong. Rec. 10189. The Conference Report also lends itself to this interpretation. H. R. Rep. No. 2832, 76th Cong., 3d Sess., pp. 68-69.
84 Cong. Rec. 9887.”Four Years’ Full Pay
“2. The law provides that any employe who has been in the service of a railroad four years or more, and loses his job because of a merger or ‘coordination‘, must be paid his full wages for four years. If he has been a railroad employe less than four years, he must be paid his full wages for a period as long as his previous service.
“No such protection and compensation have ever been guaranteed by law to the employes of any other industry, and the railroad workers secured these unprecedented benefits through the Brotherhood of Maintenance of Way Employes, in a cooperative movement with the other Standard Railroad Labor Organizations.” 49 Journal 13-14 (Oct. 1940).
See also 57 The Railway Conductor 308 (Oct. 1940); 39 Railway Clerk 467, 488. It is clear that the District Court did not err in taking cognizance of these publications, particularly since appellants raised no objections below. Cf. Texas & Pacific R. Co. v. Pottorff, 291 U. S. 245, 254.
H. R. Rep. No. 2016, 76th Cong., 3d Sess., p. 61.“In other words, the Harrington amendment made all employees of the affected carriers equal beneficiaries of its provisions regardless of the length of time they may have been employed prior to a consolidation. It also required the carrier to maintain the benefits of its provisions indefinitely and without any specified limitation by time or otherwise. Under the terms of the conference agreement the benefits to employees will be required to be paid for not longer than 4 years after the consolidation, and in no case for longer than the service of the employee for the affected carriers prior to the effective date of the order authorizing the consolidation.” H. R. Rep. No. 2832, 76th Cong., 3d Sess., p. 69.
The Court refers to the “unexplained opposition” of Mr. Harrington to the final version of the bill. But the record offers a plausible explanation for his opposition. Mr. Harrington himself apparently had decided that the proposed amendment was objectionable because it failed to cover abandonments. 86 Cong. Rec., pt. 9, 76th Cong., 3d Sess., p. 10187. And see the remarks of Mr. Crosser, 86 Cong. Rec., pt. 9, 76th Cong., 3d Sess., p. 10192.
