DETROIT & TOLEDO SHORE LINE RAILROAD CO. v. UNITED TRANSPORTATION UNION ET AL.
No. 29
Supreme Court of the United States
Argued October 20, 1969—Decided December 9, 1969
396 U.S. 142
Milton Kramer filed a brief for the Railway Labor Executives’ Association as amicus curiae urging affirmance.
MR. JUSTICE BLACK delivered the opinion of the Court.
This case raises a question concerning the extent to which the Railway Labor Act of 19261 imposes an obligation upon the parties to a railroad labor dispute to maintain the status quo while the “purposely long and drawn out”2 procedures of the Act are exhausted. Petitioner, a railroad, contends that the status quo which the Act requires be maintained consists only of the working conditions specifiсally covered in the parties’ existing collective-bargaining agreement. Respondent railroad brotherhood contends that what must be preserved as the status quo are the actual, objective working conditions out of which the dispute arose, irrespective of whether these conditions are covered in an existing collective agreement. For the reasons stated below, we think that only the union‘s position is consistent with the language and purposes of the Railway Labor Act.
The facts involved in this case are these: The main line of the Detroit and Toledo Shore Line (Shore Line), petitioner‘s railroad, runs from Lang Yard in Toledo, Ohio, 50 miles north to Dearoad Yard near Dеtroit, Michigan. For many years prior to 1961, Lang Yard was the terminal at which all train and engine crews reported for
While the case was pending before the National Mediation Board, the Shore Line announced two new outlying assignments at Dearoad, Michigan, at the northern end of the line. Because work crews could be taken by cab from Dearoad south to Trenton, the railroad concluded that it no longer needed to establish assignments at Trenton and so advised the Mediation Board. When the Dearoad assignments were announced, the union withdrew from the Mediation Board proceedings, and, before a Special Board of Adjustment convened under
Relying in part on the ruling of the Special Board, the railroad notified the union on January 24, 1966, that it was reviving its plan for work assignments at Trenton. Again the union responded by filing a
“In every case where . . . the services of the Mediation Board have been requested by either party . . . , rates of pay, rules, or working conditions shall not be altered by the carrier until the controversy has been finally acted upon . . . by the Mediation Board . . . .”
45 U. S. C. § 156 .
The District Court dismissed the railroad‘s complaint, from which no appeal has been taken, but it granted the injunction sought by the union restraining the railroad from establishing any new outlying assignments at Trenton or elsewhere.12 The United States Court of Appeals for the Sixth Circuit affirmed the issuance of the injunction against the railroad. 401 F. 2d 368 (1968). We granted certiorari, 393 U. S. 1116 (1969).
In granting the injunction the District Court held that the status quo requirement of
We note at the outset that the language of
The Railway Labor Act was passed in 1926 to encourage collective bargaining by railroads and their employees in order to prevent, if possible, wasteful strikes and interruptions of interstate commerce.13 The problem of strikes was considered to be particularly acute in the area of “major disputes,” those disputes involving the formation of collective agreements and efforts to change them. Elgin, J. & E. R. Co. v. Burley, 325 U. S. 711, 722-726 (1945). Rather than rely upon compulsory arbitration, to which both sides were bitterly opposed, the railroad and union representatives who drafted the Act chose to leave the settlement of major disputes entirely to the processes of noncompulsory adjustment. Id., at 724. To this end, the Act established rather elaborate machinery for negotiation, mediation, volun-
There are three status quo provisions in the Act, each covering a different stage of the major dispute settlement procedures. Section 6, the section of immediate concern in this case, provides that “rates of pay, rules, or working conditions shall not be altered” during the period from the first notice of a proposed change in agreements up to and through any proceedings before the National Mediation Board.15 Section 5 First provides that for 30 days following the closing of Mediation Board proceedings “no change shall be made in the rates of pay, rules, or working conditions or established practices in effect prior to the time the dispute arose,” unless the parties agree to arbitration or a Presidential Emergency Board is created during the 30 days.16 Finally,
It is quite apparent that under our interpretation of the status quo requirement, the argument advanced by the Shore Line has little merit. The railroad contends that a party is bound to preserve the status quo in only those working conditions covered in the parties’ existing collective agreement, but nothing in the status quo рrovisions of
The Shore Line‘s interpretation of the status quo requirement is also fundamentally at odds with the Act‘s primary objective—the prevention of strikes. This case provides a good illustration of why that is so. The goal of the BLF&E was to prevent the Shore Line from making outlying assignments, a mattеr not covered in their existing collective agreement. To achieve its goal, the union invoked the procedures of the Act. The railroad, however, refused to maintain the status quo and, instead, proceeded to make the disputed outlying assignments. It could hardly be expected that the union would sit idly by as the railroad rushed to accomplish the very result the union was seeking to prohibit by agreement. The union undoubtedly felt it could resort to self-help if the railroad could, and, not unreasonably, it threatened to strike. Because the railroad prematurely resorted to self-help, the primary goal of the Act came very close to being defeated. The example of this casе could no doubt be multiplied many times. It would be virtually impossible to include all working conditions in a col-
We now turn to answer some of the arguments advanced by the Shore Line in support of its position. The first of these involves
Second, the Shore Line contends that the interpretation of
The Williams case is equally inapposite. In that case “redcaps” brought suit through their union representative against the Dallas railroad terminal to recover wages allegedly owed them and retained by the terminal in violation of the Fair Labor Standards Act and the Railway Labor Act. The redcaps’ argument under the Fair Labor Standards Act was that Congress had not intended that tips be included in their wages for purposes of satisfying minimum wаge requirements. Yet, that is what the terminal had done under its “accounting and guarantee” plan from October 1938, when the F. L. S. A. became effective, until March 1940. The majority of the Court rejected the redcaps’ argument, holding that the F. L. S. A. neither prohibited nor required the inclusion of tips within wages. The question was held to be one for contract between the parties. 315 U. S., at 407-408. The redcaps’ claim under the Railway Labor Act was that the terminal‘s “accounting and guarantee” plan under which tips were considered as part of wages was put into operation unilaterally by the terminal on the effective date of the F. L. S. A., despite the fact that the redcaps had two weeks earlier asked for a conference to negotiate an agreement which would include the subject of wages. This, the redcaps argued, violated the status quo provisions of
Finally, the Shore Line points out, quite correctly, that its position on
The judgment is
Affirmed.
MR. JUSTICE HARLAN, with whom THE CHIEF JUSTICE joins, concurring in part аnd dissenting in part.
I fully agree that the application of
Rather, what persuades me to countenance the extension of
While I recognize, of course, that any subjective test is not easily applied, I cannot subscribe to a rule that may have the incongruous effect of perpetuating what both parties in fact view as a disputed practice, simply because neither party, for reasons of convenience, has exercised a recognized option of resorting to self-help.
Under this standard I consider that the proper disposition of the case before us is to remand to the District Court for additional findings.2 While the District Court found that “[f]or many years prior to 1961” Lang Yard was the established terminal point for reporting to duty, that finding alone would not satisfy a subjective test in light of subsequent events that may have negatived any understanding that might have existed prior to 1961.3 In 1961 the Shore Line advised the union of a contemplated shifting of reporting to its Trenton terminal some 30 miles north. The proposal apparently met with employee resistance and the union served a
In my opinion a remand is called for to determine whether the company‘s voluntary abandonment of its Trenton project, coupled with its undertaking to transport employees from Dearoad at its own cost and the long-established practice prior to 1961, amounted to acceptance in principle of Lang Yard as the reporting location.
For that reason I respectfully dissent from the Court‘s affirmance of the Court of Appeals.
Notes
“Carriers and representatives of the employeеs shall give at least thirty days’ written notice of an intended change in agreements affecting rates of pay, rules, or working conditions, and the time and place for the beginning of conference between the representatives of the parties interested in such intended changes shall be agreed upon within ten days after the receipt of said notice, and said time shall be within the thirty days provided in the notice. In every case where such notice of intended change has been given, or conferences are being held with reference thereto, or the services of the Mediation Board have been requested by either party, or said Board has proffered its services, ratеs of pay, rules, or working conditions shall not be altered by the carrier until the controversy has been
“What took place here was not a change in the recognized terminal, but simply amounted to an outlying assignment. There is nothing in the rules of agreement which precludes this carrier from establishing an outside assignment.” App. 110.
“The Act provides a detailed framework to facilitate the voluntary settlement of major disputes. A party desiring to effect a change of rates of pay, rules, or working conditions must give advance written notice.
“If arbitration at the request of the Board shall be refused by one or both parties, the Board shall at once notify both parties in writing that its mediatory efforts have failed and for thirty days thereafter,
“After the creation of such board and for thirty days after such board has made its report to the President, no chаnge, except by agreement, shall be made by the parties to the controversy in the conditions out of which the dispute arose.”
“It shall be the duty of all carriers, their officers, agents, and employees to exert every reasonable effort to make and maintain agreements concerning rates of pay, rules, and working conditions, and to settle all disputes, whether arising out of the application of such agreements or otherwise, in order to avoid any interruption to commerce or to the operation of any carrier growing out of any dispute between the carrier and the employees thereof.”
The relationship between the status quo provisions and
“As to maintaining the status quo from the time that a dispute is engendered, it is a violation of the duties imposed by this law for either party to take any action to arbitrarily change the conditions until that dispute has been adjusted in accordance with the law. Their primary duty is to exert every reasonable effort to avoid
This interpretation of the status quo provisions is supported by the legislative history of the Act. See, e. g., the testimony of Donald Richberg set out in n. 18, supra. Mr. Richberg also testified:
“[T]he only thing that can provoke an arbitrary action [referring to strikes] is the power to arbitrarily change the rates of pay or rules of working conditions before the controversy is settled, and it is provided that they shall not be altered during the entire period of utilization of this law.” Hearings on H. R. 7180 before the House Committee on Interstate and Foreign Commerce, 69th Cong., 1st Sess., 93 (1926).
Moreover, when the status quo provision of
“As the present act reads, a railroad, by rejecting the Board of Mediation‘s final recommendation to arbitrate the dispute, is enabled to change the rates of pay, rules, or working conditions arbitrarily, prior to the issuanсe of an order by the President appointing a fact-finding board and maintaining the status quo for 60 days. . . . The
The status quo provision of
“The thought was to include in the broadest way all the factors which contributed to what is commonly called the status quo. In other words, the conditions may depend upon the dispute, whether it is with regard to rules or with regard to wages.” Hearings on H. R. 7180 before the House Committee on Interstate and Foreign Commerce, 69th Cong., 1st Sess., 44 (1926).
“What broader phrase could be used than ‘conditions out of which the dispute arose’ which comprehends all the elements affecting the controversy? It is intended to make it clear that the parties are going to wait and give the Government full opportunity to adjust the controversy.” Hearings on S. 2306 before the Senate Committee on Interstate Commerce, 69th Cong., 1st Sess., 88-89 (1926).
“No carrier, its officers or agents shall change the rates of pay, rules, or working conditions of its employees, as a class as embodied in agreements except in the manner prescribed in such agreements or in section 6 of this Act.”
“Section 6 states that where notice of intended change in an agreement has been given, rates of pay, rules, and working conditions as expressed in the agreement shall not be altered by the carrier until the controversy has been finally acted upon in accordance with specified procedures.” NMB, 34th Ann. Rep. 23 (fiscal year ended June 30, 1968). (Emphasis added.) See also NMB, 33d Ann. Reр. 36 (fiscal year ended June 30, 1967); NMB, 31st Ann. Rep. 25 (fiscal year ended June 30, 1965).
