107 Lab.Cas. P 10,034
CALIFORNIA CARTAGE COMPANY, Petitioner,
v.
NATIONAL LABOR RELATIONS BOARD, Respondent,
International Longshoremen's and Warehousemen's Union, et
al., Pacific Maritime Association, Western
Conference of Teamsters and Local Union
692, et al., Intervenors.
PACIFIC MARITIME ASSOCIATION, Petitioner,
v.
NATIONAL LABOR RELATIONS BOARD, Respondent,
International Longshoremen's and Warehousemen's Union, et
al., Intervenors.
INTERNATIONAL LONGSHOREMEN'S AND WAREHOUSEMEN'S UNION, LOCAL
10, et al., Petitioners,
v.
NATIONAL LABOR RELATIONS BOARD, Respondent,
Western Conference of Teamsters and Local Union 692, et al.,
Intervenors.
Nos. 86-1135, 86-1176 and 86-1183.
United States Court of Appeals, District of Columbia Circuit.
Argued March 16, 1987.
Decided July 14, 1987.
Petitions for Review of an Order of the National Labor Relations Board.
Thomas Preston Burke, with whom Linda Auerbach Allderdice was on the brief for petitioner, California Cartage Co., in No. 86-1135.
Dennis A. Gladwell for Pacific Maritime Ass'n and Norman Leonard for Intern. Longshoremen's and Warehousemen's Union, with whom Kenneth W. Anderson, J. Kevin Lilly, for Pacific Maritime Ass'n, petitioner in No. 86-1176 and intervenor in No. 86-1135 and Richard S. Zuckerman, for Intern. Longshoremen's and Warehousemen's Union, petitioner in No. 86-1183 and intervenor in Nos. 86-1135 and 86-1176 were on the joint brief. William J. Kilberg also entered an appearance for petitioner/intervenor, Pacific Maritime Ass'n.
John G. Elligers, Atty., N.L.R.B., with whom Robert E. Allen, Associate Gen. Counsel, Elliott Moore, Deputy Associate Gen. Counsel and Howard E. Perlstein, Supervisory Atty., N.L.R.B. were on the brief for respondent. Barbara Atkins, Atty., N.L.R.B. also entered an appearance for respondent.
Herman L. Wacker, with whom Charles H. Thulin was on the brief for Western Conference of Teamsters, intervenor in Nos. 86-1135, 86-1176 and 86-1183.
Before MIKVA and SILBERMAN, Circuit Judges, and MARKEY,* Chief Judge, U.S. Court of Appeals for the Federal Circuit.
Opinion for the Court filed by Circuit Judge SILBERMAN.
SILBERMAN, Circuit Judge:
Seventeen years ago, the Pacific Maritime Association ("PMA"), an association of steamship lines, stevedoring firms and marine terminal operators, and the International Longshoremen's and Warehousemen's Union ("ILWU") signed a supplement to their master collective bargaining agreement ("Supplement") under which PMA agreed that all "stuffing" and "unstuffing" of shipping containers1 within fifty miles of West Coast ports would be performed only by longshoremen working at container freight stations belonging to PMA.2 In June, 1971, pursuant to the Supplement, the ILWU instructed longshoremen working at PMA-member stevedoring and terminal operations not to unload or load aboard ships any containers destined for or arriving from the container freight station operated by California Cartage Company, Inc. ("CalCart"). CalCart does not belong to PMA, and employs members of the Teamsters Local 692--not longshoremen.
CalCart filed unfair labor practice charges with the NLRB in 1971, arguing that the PMA-ILWU Supplement was a "hot cargo" agreement in violation of section 8(e) of the National Labor Relations Act, 29 U.S.C. Sec. 158(e) (1970), and that ILWU attempts to enforce the Supplement constituted a secondary boycott in violation of section 8(b)(4) of the Act, 29 U.S.C. Sec. 158(b)(4) (1970).3 The Board agreed. In a 1974 decision, the Board held the Supplement was "obviously" illegal insofar as it obligated PMA and the longshoremen to prevent steamship lines that were not members of PMA from utilizing other than longshore labor to stuff and unstuff their containers. The Board also concluded the Supplement was illegal with respect to containers of PMA members because stuffing and unstuffing containers was not the traditional work of the ILWU bargaining unit and therefore the Supplement lacked the necessary work preservation objective. ILWU (California Cartage Co., Inc.),
Six years after the Board's decision, the Supreme Court decided a section 8(e) case involving a similar agreement entered into by the East Coast longshoremen's union. NLRB v. ILA,
The ILWU represents a collective bargaining unit that covers stevedoring firms, marine terminal operators and steamship lines. The Board certified the unit almost fifty years ago, defining it to include all longshoremen who worked on the West Coast for companies that were members of several listed employers associations, including the predecessor of PMA. Shipowners' Association,
The ILWU's fifty-year battle to preserve the role of longshoremen on West Coast docks in the face of modernization in the methods of transporting cargo by sea is well documented in the Board's decisions. See
At the time the M & M Agreement was signed, only one steamship serving the West Coast had been fully converted to carry containers. During the subsequent decade, containers swept the industry. Containers could be moved across docks and loaded onto ships more efficiently than pallets, and because containers were much larger, fewer containers were needed to transport the same amount of cargo. These changes, according to the Board, caused a greater loss of longshore work than had been contemplated by the 1960 M & M Agreement. Longshoremen acquired some of the work of stuffing containers, because some cargo continued to be delivered to the docks in individual packages. But most container stuffing and unstuffing work was performed away from the docks--either at container freight stations manned by teamsters, such as the CalCart container freight station, or on the premises of the owner of the cargo. The longshoremen's efforts to take over all stuffing and unstuffing of containers (performed within fifty miles of the docks but away from the owners' premises) resulted in the Supplement that is the subject of this case.
II.
Section 8(e) of the Act bans contracts "whereby [an] employer ... agrees to ... cease doing business with any other person." 29 U.S.C. Sec. 158(e) (1982). This provision, which is congruent with section 8(b)(4),5 covers only "secondary" agreements. NLRB v. International Longshoremen's Ass'n,
The Board ultimately decided, as we mentioned, that PMA and the ILWU did not violate section 8(e) by agreeing that PMA-owned or leased containers could be stuffed and unstuffed only by longshoremen. The Supplement was legal as applied to PMA containers because, the Board thought, it was intended to preserve the ILWU unit's traditional work--loading and unloading cargo on and off ships, including "the unitizing of cargo to be shipped and the breaking down of cargo units for delivery"--by securing the functional equivalent of that work, stuffing and unstuffing modern containers.
CalCart and the teamsters do not seriously dispute the evidentiary support for the Board's finding of a functional relationship between consolidating cargo onto pallets and stuffing containers. CalCart notes that some of the work claimed under the Supplement is performed away from the docks--at, for example, CalCart's Wilmington, California container freight station--whereas the longshoremen's traditional work took place exclusively on the docks. But, as is surely clear after ILA I, the fact that longshoremen have never previously performed work at the exact same location does not prevent the work sought from being the functional equivalent of work the longshoremen have performed. ILA I,
CalCart's principal attack on the Board's decision is directed at the Board's reconstruction of the ILWU's intent in entering into the M & M Agreement and the Supplement. As such, CalCart challenges the Board where perhaps it is strongest before the Court of Appeals; we must affirm the Board if there is substantial evidence to support the Board's finding, NLRB v. Denver Building & Construction Trades Council,
The ILWU, CalCart argues, permanently "waived" any claim to container stuffing and unstuffing long before it signed the Supplement. CalCart finds this waiver in the M & M Agreement, which was signed, it will be recalled, in 1960 and extended in 1966. PMA is said to have then purchased from the ILWU all future reductions in longshore work caused by the introduction of new technology such as containers, leaving the ILWU no right to claim the functional equivalent of the eliminated work, for example, container stuffing. The Board rejected this argument, noting that even during the term of the M & M Agreement longshoremen performed container stuffing when cargo was delivered to the docks break bulk.7 In any event, the Board held, the M & M Agreement was not intended to fix for all time the rights of the signatories to deal with the economic consequences of containerization. Rather, upon expiration of the M & M Agreement, the parties were free to reassess the impact of changing technology and adopt a new approach.
We believe the Board's interpretation of the M & M Agreement is amply supported by evidence. The record indicates that the term "container" does not even appear in the M & M Agreement, and all parties agree that the impact of containerization could not have been fully appreciated in either 1960 or 1966, which suggests the signatories did not intend the Agreement to be the final word on containers. Collective bargaining, moreover, is an ongoing process, and the Board was appropriately reluctant to find in the M & M Agreement an intention to forever freeze aspects of the parties' relationships. Cf. Metropolitan Edison Co. v. NLRB,
CalCart also claims that the Supplement impermissibly sought union objectives beyond protection of bargaining unit work--even assuming that stuffing and unstuffing could be considered bargaining unit work. The real beneficiaries of the Supplement, according to CalCart, were "terminal warehousemen" who had belonged to a separate ILWU bargaining unit.9 The Supplement, as the argument goes, actually created a new bargaining unit for those employees to work at container freight stations (with at least two new job classifications and somewhat different terms than in the master agreement) and therefore must be deemed to have had an objective beyond protection of the primary bargaining unit. To be sure, the Board acknowledged that "the record demonstrates that the predominant source of manpower sent to the newly created stations was nonregistered warehousemen, casuals, and members of other unions," but the Board found that was due to a decline (presumably subsequent to the signing of the Supplement) in the registered longshore workforce.
III.
We think the more difficult question in this case arises out of PMA's and the ILWU's challenge to the Board's adherence, after remand, to the view that the Supplement constitutes a violation of 8(e) insofar as it covers containers owned or leased by non-PMA members. The Board concluded that since PMA, the signatory to the Supplement, had no power to control disposition of the work (stuffing and unstuffing of non-PMA containers), the ILWU dispute, which the Supplement seeks to resolve, is with the non-PMA members, and PMA is a neutral in that dispute. We note that the Board's analysis has an element of artificiality about it. We see no indication of a real dispute between non-PMA members and the ILWU; the former did not even appear before the Board. The Board simply assumed that because those steamship lines are not members of PMA, and typically contract directly with container freight stations to stuff or unstuff their own containers, PMA has no "right of control," see ILA II,
The record, however, does not clearly disclose as much of an operational difference between members and nonmembers of PMA as the Board's opinion suggests.11 The PMA's Southern California area manager, John MacEvoy, testified in 1972 that PMA is controlled by a voting procedure based on the tonnage unloaded by PMA-member stevedoring firms from both member and non-member ships, and that at the time the original Supplement was negotiated the stevedoring firms may have acted as proxies casting votes on behalf of the non-member steamship lines. J.A. 1476. He also stated that non-member steamship lines pay PMA (via the stevedoring firms) a tonnage assessment, which is then contributed to a fund set up under the M & M Agreement. J.A. 1477-78. Finally, MacEvoy testified that grievances by longshoremen working under PMA-ILWU collective bargaining agreements can be filed against non-member steamship lines. J.A. 1512-13. This last point, if true, would seem to indicate, contrary to a statement in the NLRB's brief, that non-members of PMA are bound by at least some provisions of contracts negotiated between PMA and the ILWU. It may well be, then, that PMA does indeed have some control over non-PMA members' assignment of work, or that those steamship companies in fact have some control over PMA itself, or both.
In any event, consideration of the formal indicia of control here ought not end the Board's section 8(e) inquiry. The Board must ultimately determine whether the relationship between PMA and the non-PMA steamship companies is such that either can be treated as neutral in a dispute the other has with the ILWU. See supra p. 8. We have on several occasions held that the interrelationship between employers can be so close that neither can be regarded as a "neutral" or secondary employer. See, e.g., Production Workers, Local 707 v. NLRB,
The [right of control] test as stated would seem to imply that the Board looked solely at the pressured employer's "contract right to control" the work at issue ... to determine whether that pressure was primary or secondary. In fact, this is not now the Board's approach nor was it ever.
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* * *
... [O]ur analysis has not [been] nor will it ever be a mechanical one.... [I]f we find that the employer is not truly an "unoffending employer" who merits the Act's protections, we shall find no violation in a union's pressures such as occurred here, even though a purely mechanical or surface look at the case might present an appearance of a parallel situation.
The Board's opinion does not, in our view, adequately explain those elements in the record that permit the ILWU and PMA to credibly assert that the distinction between member and non-member steamship companies is more formal than real.12 Since we cannot affirm the Board's determination of unfair labor practices on this record without a fuller explanation, we remand the case to the Board for that purpose.
It is so ordered.
Notes
Sitting by designation pursuant to 28 U.S.C. Sec. 291(a)
Shipping containers are large portable compartments for holding and transporting freight. A typical container measures 8 by 8 by 30 feet, holds ten tons of cargo, and is specially designed to rest on both a ship and a truck or railroad car. The task of loading cargo into a container is called "stuffing"; the task of emptying a container is called "unstuffing."
The Supplement does not cover "shippers' load" containers, which are stuffed or unstuffed on the owner's premises and contain only cargo belonging to that shipper or consignee. Shippers' loads constitute approximately 85 percent of all containers
Additional charges were filed after the original version of the Supplement was amended by a Memorandum of Understanding signed on February 10, 1972
Today, some steamship lines belong to PMA (and thus are "included" in the bargaining unit) but some do not. Nothing in the record or briefs suggests whether the reason for this situation is historical or functional, and no party provided an explanation at oral argument
Section 8(b)(4) of the National Labor Relations Act prohibits, inter alia, strikes, threats and other forms of coercion aimed, in part or in whole, at forcing an employer "to cease doing business with any other person." 29 U.S.C. Sec. 158(b)(4)(B) (1982)
CalCart also argues that stuffing and unstuffing containers cannot be the functional equivalent of the longshoremen's traditional cargo handling work because the agreement contemplates that the stuffing/unstuffing will be performed at new container freight stations the construction of which will require large expenditures of capital. This contention was not raised before the Board, and therefore is not properly before this court. 29 U.S.C. Sec. 160(e) (1982)
The Board's 1974 decision was most explicit in this regard, holding that the ILWU bargained away only "make work" rights, such as a claim to perform unnecessary rehandling of cargo.
The teamsters present a broader argument: that even if the longshoremen intended only temporarily to bargain away their claim to traditional unit work, any subsequent attempt to preserve that work was necessarily secondary. The teamsters suggest that once a claim to traditional work is temporarily waived, the work can never again be characterized as traditional. We find no support, however, for the proposition that all waivers of claims to traditional work are necessarily permanent. See ILA v. NLRB,
In 1968, ILWU Local 13 began representing a bargaining unit composed of terminal warehousemen. See NLRB v. ILWU, Local 13,
CalCart's final challenge to the Supplement focuses on the composition of PMA. CalCart argues that any agreement signed by PMA regarding terms of longshore employment is necessarily secondary because PMA membership includes steamship lines and steamship lines, unlike stevedoring firms and terminal operators, generally do not directly employ longshoremen. The teamsters present the exact opposite argument: that stevedoring firms and terminal operators are the neutrals because only steamship lines decide which container freight station (and thus which union) stuffs and unstuffs containers. Both arguments are at bottom a challenge to the bargaining unit determination made by the Board in 1938. These contentions, however, were rejected by the Board in its 1974 decision and were not reasserted before the Board on remand by any party. The issue therefore has not been properly preserved for our consideration
PMA and the ILWU argue that the Board abused its discretion by failing to reopen the record--subsequent to its 1986 decision--in order to accept an affidavit which, it is said, sheds more light on the relationship between PMA members and non-members. Because of our disposition of the case, we do not decide this issue. It is up to the Board on remand to decide in the first instance whether it would be appropriate to take additional evidence on the member/non-member distinction
We recognize that this issue is not unrelated to the definition of the bargaining unit
