Lead Opinion
Opinion for the court filed by Circuit Judge J. SKELLY WRIGHT.
Concurring opinion filed by Chief Judge BAZELON.
Dissenting opinion, in which Circuit Judges TAMM, ■ ROBB, and WILKEY join, filed by Circuit Judge MacKINNON.
We are required by this case to review once again the National Labor Relations Board’s “right to control” test for determining whether a union has engaged in secondary activity proscribed by Section 8(b)(4)(B) of the National Labor Relations Act, 29 U.S.C. § 158(b)(4)(B) (1970).
We have held in two previous decisions, Local 742, Carpenters v. NLRB,
I
Petitioner Enterprise Association, a plumbing and pipefitting union, has for many years negotiated a collective bargaining agreement with Hudik-Ross Company, a firm engaged in the business of heating, ventilating, and air conditioning contracting. The agreement which was effective during the period of the union’s allegedly secondary activity contained a provision, Rule IX, which obligated Hudik-Ross to have its employees “cut and thread internal piping in climate control units” which Hudik-Ross contracted to install.
The Austin Company is the general contractor and engineer for construction of the Norwegian Home for the Aged in Brooklyn, New York. In January 1972, as a result of competitive bidding, Hudik-Ross was awarded a subcontract to provide the heating, ventilation, and air conditioning work for the Norwegian Home construction. This subcontract incorporated Austin’s specifications that certain heating and air conditioning units manufactured by Slant/Fin Corporation would be installed in the Norwegian Home. The specifications clearly
Shortly after the Slant/Fin units arrived at the Norwegian Home jobsite, a business agent for the union informed Hudik-Ross that the steamfitters represented by the union would not install the units because their internal piping had been completed at the factory in violation of Rule IX. The refusal to install the Slant/Fin units having delayed completion of the Norwegian Home, Austin filed a complaint with the Board charging that the union was violating Section 8(b)(4)(B) by encouraging individuals employed by Hudik-Ross to refuse to perform certain services with an object of forcing or requiring Austin and HudikRoss to cease using the products of Slant/Fin. Both the administrative law judge (ALJ) and the Board sustained Austin’s charge, despite the fact that there- was no evidence indicating that the union or its affiliates had ever attempted to organize Slant/Fin or that the union was even aware of the organizational status or working conditions of the Slant/Fin employees.
Our two earlier opinions rejecting the Board’s right to control test were guided by the teaching of the Supreme Court in National Woodwork, supra. Affirming the Board, the National Woodwork Court held that a work preservation
clause in a collective bargaining agreement does not violate Section 8(e) of the National Labor Relations Act, 29 U.S.C. § 158(e) (1970),
As we recognized in Local 742, supra, and Local 636, supra, the National Woodwork Court explicitly noted that it was not presented with the question of the propriety of the Board’s right to control doctrine since the struck employer in that case was a general contractor who had the legal power to determine who performed the work the union desired to preserve.
A.
In validating work preservation clauses, the National Woodwork Court placed primary reliance on the legislative history of Sections 8(b)(4)(B) and 8(e). The Court determined that Congress only intended these sections to prohibit coercive union activity that is directly exerted against an “unconcerned”
To assert that Hudik-Ross is a neutral bystander innocently caught up
The Board insists on closing its eyes to the circumstances surrounding the creation of this labor dispute, circumstances which belie the assertion that HudikRoss is a neutral caught between the contending forces really involved in the work preservation controversy.
Of course, Hudik-Ross might prefer to terminate its subcontract with Austin or pressure Austin to change its specifications for premachined climate control units rather than to negotiate with its employees as to alternatives for compensating them for their lost work. However, the fact that such a decision might have adverse effects on other employers like Austin and Slant/Fin does not transform an involved employer like Hudik-Ross against whom pressure is exerted into an innocent neutral.
The Board’s right to control doctrine is a continuing attempt to circumvent the congressional proviso and is inconsistent with the Court’s analysis in National Woodwork. Moreover, it is a continuing inducement for employers to violate their bargaining agreements. If employers do not want work preservation clauses to cover prefabricated units, they should not sign bargaining agreements with such clauses unless they so state. And when an employer gets himself into a bind, as did Hudik-Ross, he should arbitrate or negotiate his way out. Having the Board bail him out is to demean the National Labor Relations Act by encouraging deliberate, if not always planned, violations of bargaining agreements.
In its brief to this court, the Board vigorously asserts that NLRB v. Denver Bldg. & Constr. Trades Council,
If there had been no contract between Doose & Lintner [the general contractor] and Gould & Preisner [the nonunion subcontractor] there might be substance in [the union employees’] contention that the dispute involved no boycott. If, for example, Doose & Lintner had been doing all the electrical work on this project through its own nonunion employees, it could have replaced them with union men and thus disposed of the dispute. However, the existence of the Gould & Preisner subcontract presented a materially different situation. The nonunion employees were employees of Gould & Preisner. The only way that respondents [the union employees] could attain their purpose was to force Gould & Preisner itself off the job. This, in turn, could be done only through Doose & Lintner’s termination of Gould & Preisner’s subcontract. The result is that, the Council’s strike, in order to attain its ultimate purpose [full unionization of the construction site], must have included among its objects that of forcing Doose & Lintner to terminate that subcontract. * * * It is not necessary to find that the sole object of the strike was that of forcing the contractor to terminate the subcontractor’s contract.
As we have already indicated, we do not agree that termination of the Slant/Fin contract was a necessary intermediate step to satisfaction of the union’s ultimate objective; Hudik-Ross could have resolved the dispute without
A closer examination of the Denver opinion reveals why that case was inapposite to both National Woodwork and the present case. The Board’s quotation of Denver is less than candid, and reveals the danger of reducing a complex analysis turning upon “all the surrounding circumstances” into a simplistic per se doctrine. For the above paragraph from Denver was introduced by this observation:
In the background of the instant case there was a longstanding labor dispute between the Council and Gould & Preisner due to the latter’s practice of employing nonunion workmen on construction jobs in Denver.
Ill
We do not think that an employer who is struck by his own employees for the purpose of requiring him to do what he has lawfully contracted to do to benefit those employees can ever be considered a neutral bystander in a dispute not his own.
We therefore conclude that in this case, as in National Woodwork, the union’s refusal to install the prefabricated components must be deemed primary concerted activity hot prohibited by Section 8(b)(4)(B) if it is determined, “under all the surrounding circumstances,”
Remanded for further proceedings.
Notes
.Section 8(b)(4)(B), 29 U.S.C. § 158(b)(4)(B) (1970), provides:
(b) It shall be an unfair labor practice for a labor organization or its agents — ■ ******
(4)(i) to engage in, or to induce or encourage any individual employed by any person engaged in commerce or in an industry affecting commerce to engage in, a strike or a refusal in the course of his employment to use, manufacture, process, transport, or otherwise handle or work on any goods, articles, materials, or commodities or to perform any services; or (ii) to threaten, coerce, or restrain any person engaged in commerce or in an industry .affecting commerce, where in either case an object thereof is—
* * * * * *
(B) forcing or requiring any person to cease using, selling, handling, transporting, or otherwise dealing in the products of any other producer, processor, or manufacturer, or to cease doing business with any other person, or forcing or requiring any other employer to recognize or bargain with a labor organization as the representative of his employees unless such labor organization has been certified as the representative of such employees under the provisions of section 159 of this title: Provided, That nothing contained in this clause (B) shall be construed to make unlawful, where not otherwise unlawful, any primary strike or primary picketing!.]
. Joint Appendix at 254.
. See NLRB v. Local 164, IBEW,
Recently a panel of Ninth Circuit judges approved the Board’s right to control test in dictum. See Associated General Contractors of California, Inc. v. NLRB,
. See Local 438, Plumbers & Pipe Fitters,
. JA at 253.
. Id. at 234.
. See id. at 236.
. Id. at 254.
. Since the right to control doctrine had been rejected by five circuits, the Board understandably did not mention that doctrine by name. Rather, after noting the union’s work preservation purpose, the Board merely cited its Koch opinion and stated that “Hudik was incapable of assigning its employees this work; such work was never Hudik’s to assign in the first place.” Id. See also note 36 infra. In its brief to this court the Board admits that it is applying the right to control doctrine, but characterizes the test as merely creating a ‘‘prima facie" inference that there is an illegal secondary objective, “absent proof to the contrary.” Brief for the NLRB at 5. We realize that under SEC v. Chenery Corp.,
Our conclusion that Hudik-Ross is far from being an innocent neutral bystander to the dispute over installation of the prefabricated units does not depend at all on any suspicion that Hudik-Ross instigated Austin’s decision to use the Slant/Fin units. Cf. Painters Dist. Council No. 20,
The artificiality of the [Board’s right to control] test is particularly patent in cases such as this one — where the employees apparently have a grievance growing out of labor relations with their own employer (i.*231 e., loss of traditional unit work) and immediately provoked by an action of their own employer (i. e., his signing of a contract which would deprive them of that work). The Board does not stop to consider these aspects of the dispute. Nor does it look to see whether there may be other grievances, against other employers, which underlie the union’s action. Rather, the Board seems to hold that, when an employer contracts away his power to satisfy union demands, he also contracts away his interest and involvement in the labor relations issue in dispute. He is depicted as the mere passive agent of others * * * ; the fact that the present dispute has its origin and its substantive focus in his ongoing labor relations with his employees is deemed irrelevant. * * *
(Footnote omitted.)
In attempting to rationalize and affirm the Board’s holding, the dissenters present a smorgasbord of possible explanations of what the Board has done. But see dissenting op. at n.72. First, we are offered the per se right to control test in its purest form:
Hudik is essentially neutral in this dispute because it does not have and never did have the power to comply with the Steamfitters’ demands. Thus the pressure created by the Hudik employees’ boycott of the Slant/Fin units must have been directed at Austin and Slant/Fin as they were the only parties with the power to satisfy the demand that the work be taken from Slant/Fin employees and reassigned to the Union.
Id. at
Next, we are told that the Board has applied a prima facie test because it will validate a work preservation action against a subcontractor who possessed the legal right to control the work assignment but contracted away that right:
The Board does not employ a per se formulation, which might well violate the stricture of National Woodwork that the focus of a union’s action must be determined from all the surrounding circumstances; instead, the Board'relies on a prima facie standard. By this test, a union may not boycott an employer who lacks the right to control the assignment of disputed work, provided that the employer has not voluntarily relinquished that control. The redeeming feature of this criterion is that it permits and even mandates the conclusion that the union acted properly in launching an economic action whenever “the employer’s loss of power to assign the work is the result of his own efforts to instigate the subcontracting to another of work subject to his work preservation agreement with the union” * * *. In such a case the employer would cease to be ’ neutral, and would be termed “offending” by virtue of his voluntary action surrendering legal control of the disputed work.
Dissenting op.,
Finally, the dissent asserts that the Board, in conformity with the National Woodwork decision, actually evaluated “all the surrounding circumstances” to determine whether HudikRoss was a neutral; the Board, under this rationalization, did not simply label Hudik-Ross a neutral party once the Board concluded it did not have, and never had, the legal power to assign its employees the disputed work. See, e. g., dissenting op.,
While it is true that there are conflicting interpretations of the National Woodwork decision, supra, I believe that under the Board’s view of the law the Respondent herein has violated section 8 (b) (4) (i) (ii) (B) of the Act since Hudik was a secondary employer that, unlike Frouge in the National Woodwork case, had no control over the selection and specification of the prepiped units. * * *
JA at 242 (emphasis added). Moreover, the cases cited and discussed by the ALJ, see JA at 237, 242 n.13, are all ones in which the Board determined that the locus of control over the work in dispute was conclusive as to the question of the legality of the union’s activity.
Nevertheless, it is true that the ALJ employed the phrase “surrounding circumstances” in the hypotheticals quoted by the dissent, see dissenting op. at n.8, and the dissenters dwell at considerable length on the circumstance to which the ALJ referred — the extent to which the construction industry in major metropolitan areas is unionized. See, e. g., id.
. Except for those agreements specified in the proviso to § 8(e), that section renders void and unenforceable an employer’s agreement to do that which § 8(b)(4)(B) prevents the union from exerting pressure to bring about. See note 38 infra.
The language of § 8(e) is comparable to the language of § 8(b)(4)(B) in most significant respects:
(e) It shall be an unfair labor practice for any labor organization and any employer to enter into any contract or agreement, express or implied, whereby such employer ceases or refrains or agrees to cease or refrain from handling, using, selling, transporting or otherwise dealing in any of the products of any other employer, or to cease doing business with any other person, and any contract or agreement entered into heretofore or hereafter containing such an agreement shall be to such extent unenforcible [sic] and void[.] * * *
. In 1959, a proviso was added to § 8(b)(4)(B), explicitly exempting primary activity from the prohibitions of that section:
Provided, That nothing contained in this clause (B) shall be construed to make unlawful, where not otherwise unlawful, any primary strike or primary picketing[.]
The National Woodwork Court held that, in light of congressional intent, the same limitation was implicitly incorporated into § 8(e). See note 38 infra.
.
.
. See id.
Brief for the NLRB at 7. Rather than base its holding on the extent of employer control, the Supreme Court engaged in a detailed factual examination of “all the surrounding circumstances” of the dispute. Seen from this perspective, its “reservation” of the control question is better understood as a warning that the opinion not be read as impliedly approving the Board’s right to control doctrine. In resolving the right to control problem, we now follow the lead of the Supreme Court in determining, on all the factors presented, whether the union’s goal is solely work preservation and whether the struck employer is a neutral to the dispute.
.See note 3 supra. Even the Fourth Circuit, in approving the Board’s right to control test, was at pains to conclude that in finding a violation the Board had looked to “all the surrounding circumstances,” as required by National Woodwork. See Koch, supra note 4,
. While the employer’s lack of legal control cannot be determinative, it may still be considered by the Board as part of its inquiry into the union’s actual objectives. See Local 742, Carpenters v. NLRB, supra note 9,
. These sections preserve the right of employees to strike and to engage in other concerted activities for the purpose of mutual aid or protection. The National Woodwork Court stated that, in “the absence of clear indicia of congressional intent to the contrary, these provisions caution against reading statutory prohibitions as embracing employee activities to pressure their own employers into improving the employees’ wages, hours, and working conditions.”
. Id.,
. Id. at 623, 632,
. Id. at 620, 626,
. Id. at 626-27,
.Local 438, Plumbers & Pipe Fitters,
.Indeed, the terms of the collective bargaining agreement itself provide internal indicia that Hudik-Ross is not a neutral to this dispute. Article One of that agreement specifies that both parties are to abide by certain rules governing wages, hours, “and other conditions of employment.” JA at 210. Rule IX is among those to which both sides agreed to be bound. JA at 213. Article Two of the agreement then stipulates that strikes or lockouts are to be prohibited, but only “so long as this agreement and the rules hereto attached are conformed to by both parties.” JA at 210 (emphasis added). Hudik-Ross must therefore have realized that it had contractually acknowledged the union’s right to strike in the situation presented to us. Indeed, it is curious that Hudik-Ross, the “neutral” that was supposedly injured by being dragged into a “labor dispute not its own,” did not file the charge of an unfair labor practice; rather, it was filed by the general contractor, Austin. Perhaps Hudik-Ross perceived the injustice that would result if it attempted to have the Board directly rectify Hudik-Ross’ breach of contract; perhaps it merely sought to avoid the exacerbation of labor relations that would result by adding this insult to the injury it had previously inflicted on the union. We appreciate the fact that a contractual provision cannot immunize either an employer or a union from an unfair labor practice charge. See, e. g., Radio Officers’ Union v. NLRB,
. Local 742, Carpenters v. NLRB, supra note 9,
. We do not believe that this restriction unduly ties an employer’s hands concerning managerial decisions. Hudik-Ross could have, and still can, negotiate collective bargaining agreements which exempt from the work preservation clause work over which it does not have legal control. Indeed, on remand the Board is free to reconsider whether the parties to the agreement actually intended the cutting, threading, and installation of the internal piping of the climate control units to fall within its scope in the situation here presented. The dissent implies that the ALJ has already made a finding that the parties to the bargaining agreement did not so intend, and that the Board implicitly upheld this finding. See, e. g„ dissenting op.,
It is important to recognize that Hudik-Ross’ refusal to bid on the Austin contract, in compliance with its collective bargaining agreement, would indeed serve work preservation goals. This point is often misunderstood. For example, the ALJ in this case asked rhetorically: “[I]f Hudik, an employer of union steamfitters, does not bid on jobs and does not secure subcontracts, how does such a situation preserve or increase work for Hudik’s union steamfitters[?]” JA at 240. Yet he had unknowingly answered that question himself earlier in his opinion: “If prepaid [sic] units cannot be installed * * * Austin and other engineers and general contractors will not specify their purchase and use in buildings.” JA at 239. The union certainly expected the work preservation clause to be complied with. Like the ALJ, it knew such clauses would in fact subserve its legitimate end of ensuring that its members could continue to perform in the future the work they had traditionally performed in the past. Of course, it is also true that Hudik-Ross and similar employers could bid on a subcontract specifying prefabricated products and still satisfy a union’s work preservation goals, but in this latter situation they would probably be subserved by negotiation of a monetary settlement that would partially compensate the employees, for their lost work. See 172 U.S.App.D.C. pp. 238-240, 521 F.2d pp. 898-900 & note 34 infra. It should also be noted that the dissent, apparently oblivious to the fact that Hudik-Ross could take this latter tack, compounds its error by making the statement, which has no support in the record, that “Hudik could not decline to bid on projects with prefabrication specifications and continue to be a competitive subcontractor.” Dissenting op.,
Although the Board rejected the ALJ’s misconception that Rule IX was not designed for work preservation purposes in these circumstances, a similar fallacious belief may lie at the root of its right to control doctrine. In its brief to the Supreme Court in National Woodwork, in supporting its claim that the union had not violated § 8(b)(4)(B), the Board stated:
[T]his provision [in the bargaining agreement in National Woodwork] was a lawful work preservation clause, reflecting the Union’s policy of preserving for jobsite carpenters work which they have performed for over 80 years. Since Frouge had failed to abide by this lawful contract provision, the Union had a legitimate dispute with him; and, since he was not required by any arrangement with the project owner to use pre-cut doors, Frouge was in a position to accede to the Union’s demands without having contract relations severed or even directly affected. Accordingly, by refusing to handle pre-cut doors for Frouge, the Union confined its activity to the employer with whom it had its basic dispute, and its activity was therefore primary.
Brief for the NLRB at 5-6 (emphasis added). If the Board is serious about its characterization of the union/Hudik-Ross provision as a valid work preservation clause, the logic of National Woodwork should mandate a conclusion that the union’s activity in our case is lawful. In both National Woodwork and this case, there was a valid work preservation clause. In both National Woodwork and this case, the employer could comply with the union’s demands before breaking the contract. And, contrary to the Board’s assertion, in both National Woodwork and this case, some third party would inevitably be affected by compliance after the contract was broken. Admittedly, only a manufacturer was involved in National Woodwork, whereas this case involves both a manufacturer and a general contractor. But that cannot obscure the fact that for all relevant analytical purposes the situation of the two employers is identical. See also note 28 infra.
. A final misconception concerning work preservation agreements between subcontractors and unions is that exhibited by the dissent, see, e. g., dissenting op.,
. Local 742, Carpenters v. NLRB, supra note 9,
. As Judge Lasker observed in a similar situation:
It would be unthinkable to apply the “right to control” test to facts such as those just outlined. To do so would be to encourage subcontractor employers to undermine their collective bargaining agreements by actively soliciting contracts whose very terms called for conduct violative of those trade agreements * * *. Manufacturers and general contractors, too, would be tempted to insert all manner of specification and standard[s] into their licenses and contracts with a total disregard of subcontractors’ commitments to their respective unions.
Danielson v. Painters Dist. Council No. 20, supra note 3,
. Cf., e. g., International Union of Electrical Workers v. NLRB,
In its brief for respondent NLRB at 26, which it filed in National Woodwork, the Board stated:
[Wjhere, as here, the union is opposed to a product, not because of its price or its design, but because it deprives the employees whom the union represents of work which they have traditionally performed, there is a sufficiently direct connection between the product and employment security to bring the question respecting the use of that product within the area of mandatory bargaining under the Act.
However, in its Koch opinion the Board distinguished National Woodwork and Fibreboard Paper Products Corp. v. NLRB,
The situation here is radically different since Phillips never initially had the disputed work and thus obviously could not have contracted away that which it never had and could not have been ordered to bargain over that which it never had.
.The Board’s holding has the potential for unnecessarily harsh or excessively disruptive results. Although the ALJ found that Austin and Slant/Fin were'the primary employers for purposes of the work preservation dispute with the union, the Board declined to decide whether the union could therefore have exerted direct pressure against them. See JA at 254 n.l. It is thus possible that the Board is prepared to accept the position advanced by amicus curiae Chamber of Commerce of the United States that, unless the target of the strike has both the power to control the work assigned and a bargaining relationship with the union, the union’s economic pressures are illegal secondary activity. In the present case there would thus be no primary employer; indeed, in most subcontracting situations the subcontractor’s employees would be deprived
On the other hand, when a union’s sole objective is work preservation, it would be anomalous to allow it to press its demands on a general contractor with whom it has no ongoing relationship. Rather than limit the scope of labor disputes consonant with the congressional intent expressed in § 8(b)(4), such a result is likely to expand them since it would probably affect all subcontractors on a jobsite. The National Woodwork Court tacitly accepted work preservation as a legitimate subject of mandatory collective bargaining, within the “wages, hours, and other terms and conditions of employment” language of §§ 8(d) and 9(a) of the National Labor Relations Act. See
Although our holding that the right to control test must be rejected is not based on the above considerations, we find that they shed light on Hudik-Ross’ actual involvement with the subject matter of this labor dispute.
. See Local 438, Plumbers & Pipe Fitters, supra note 4,
. See National Woodwork,
. Local 438, Plumbers & Pipe Fitters, supra note 4,
.
By the contract under which [the subcontractor] Phillips was to perform its work at the G.E. site or not perform any work at all, Phillips was contractually required to utilize in its work certain prefabricated pipe which had not been worked on by the employees the [union] Respondents represented. Thus, although the Respondent’s claim of work preservation was indeed valid, Phillips by its contract with [the general contractor] Koch had no power to give the Respondents the work they sought, since such work was never Phillips’ to award in the first place. And as Phillips had no past, present, or future authority to award this work to the Respondents, their actions here must have been undertaken in order to produce their effects elsewhere. Therefore, since the pressure directed at Phillips was undertaken for its effect elsewhere, such activity was secondary even though Phillips was the immediate employer here. As the Supreme Court itself said in National Woodwork, “In effect Congress in enacting § 8(b)(4)(A) of the Act (hence this holds for the present Section 8(b)(4)(B)) . . . barred as a secondary boycott union activity directed against a neutral employer, including the immediate employer when in fact the activity directed against him was carried on for its effect elsewhere.”
As our opinion elaborates, we remain bewildered as to how Hudik-Ross may be characterized as “neutral” when it executed its contract with Austin in violation of a concededly valid work preservation clause. Nor can we understand how the union’s refusal to acquiesce in that violation must indicate that its objectives were “directed elsewhere,” particularly since Hudik-Ross could itself satisfy the union’s demands, whether by negotiating a compromise with the union or, as in National Woodwork, terminating its tainted contract with Austin.
. Hudik-Ross was free to engage the union in negotiations either before or after it had accepted the subcontracting work. Such negotiations could have centered on an appropriate compromise payment that employees would receive for installing the prefabricated units, although other bargaining solutions were possible. For example, when the collective bargaining agreement was originally accepted the union may have given up demands for additional vacation time or other fringe benefits in order to receive the work preservation guarantee; Hudik-Ross could have achieved a settlement with the union by making concessions on such matters as a quid pro quo for the union’s relaxation of the strictures of Rule IX. Alternatively, Hudik-Ross could have sought an arbitrated solution of the controversy. We cannot understand how, in the absence of such initiatives, Hudik-Ross may be labeled an innocent bystander. The Board appears to place the burden of finding such peaceful resolutions on the union, but we believe that Hudik-Ross, which was the culpable party in generating the controversy, had an obligation to reconcile its actions with its contractual commitments. If Hudik-Ross desires protection from work preservation pressures in the future, it need only negotiate an agreement that incorporates a no-strike provision and that stipulates that such disputes will be submitted to arbitration. Cf. Boys Markets, Inc. v. Retail Clerks Local 770,
What would appear to be a paradigmatic voluntary vehicle for peacefully settling work preservation disputes, both allowing the subcontractor to bid for construction contracts involving prefabricated products and guaranteeing union compensation for an employer’s breach of his collective bargaining agreement, was executed by several of the parties involved in Associated General Contractors of California, Inc. v. NLRB, supra note 3. There a trade council composed of 17 local unions and a trade association of employers .in the construction industry had negotiated a work preservation agreement; if a union representative believed that the agreement was being violated, the union could require the employer to cease doing the contested work, but only for a period of 72 hours, while a joint arbitration board investigated the merits of the claim. After the expiration of 72 hours, the employer could resume work whether or not the investigation was complete. The arbitration board could make a variety of appropriate awards against an offending employer, including “payjment of] the equivalent in wages and fringe- benefits lost by employees * * * ” into the union’s pension fund. Nevertheless, the court in that case found the arbitration board’s assessment against the offending employer of approximately $560 to be improper since it determined that, to the extent the agreement covered work not within a subcontractor’s legal control, it was a prohibited “hot cargo” clause in violation of § 8(e), and that enforcement of that clause constituted a violation of § 8(b)(4)(B).
. There was no evidence that the union would have installed the Slant/Fin units if the employees who worked on the internal piping off the jobsite had been organized in an affiliated labor organization. Nor was there any evidence that the union’s actions were motivated by, or that the union was familiar with, the organizational status of the Slant/Fin employees. Cf. National Woodwork,
. Congress was concerned with the injury suffered by neutral employers, but only where the injury resulted from the use of a secondary boycott. Almost every strike causes economic loss to one or more employers who are unconcerned with the labor dispute. A coal distributor may go bankrupt because of a coal strike. A small steel fabricator may be forced to close his doors because of a major steel strike. Such economic losses as these far outweigh the losses caused by secondary boycotts. Yet Congress has not sought to aid these neutrals * * * -phis point is significant — and sometimes overlooked — because it shows that, while harm to a neutral is an essential ingredient of a secondary boycott, such injury is not by itself objectionable in the eyes of the legislature.
Tower, A Perspective on Secondary Boycotts, 2 Lab.L.J. 727, 732 (1951), quoted with approval in Lesnick, The Gravamen of the Secondary Boycott, 62 Colum.L.Rev. 1363, 1411-12 (1962). See also Note, supra note 3,
Our conclusion as to the legality of the union’s activity might be different if the union actively sought termination of the Slant/Fin contract by exerting pressure directly against Austin. Cf. National Woodwork,
.
. The Board, apparently cognizant of the inequities produced by its right to control doctrine in a case such as the present one, indicates that “the doctrine does not foreclose a union from enforcing a work preservation provision against an employer who lacks control of the work through a lawsuit or contractual arbitration procedures.” Brief for the NLRB at 5 n.4, citing Koch. See also dissenting op.,
It is thus inescapable that approval of the Board’s right to control test necessarily would preclude a successful union suit for breach of a work preservation agreement whenever the employer who breached the agreement did not have legal control over the work the union desired preserved. See, e. g., Associated General Contractors of California, Inc. v. NLRB, supra note 3. For employees dealing with employers regularly in such a position, collective bargaining and other concerted efforts to protect their traditional work and income from “onrushing technological change,” see Nation
. The dissenters in National Woodwork felt that Denver supported the prohibition of ail work preservation clauses. See
. National Woodwork,
. Id. at 645,
. We also note that both here and in National Woodwork the union was applying economic pressure to enforce a valid contractual provision between its members and their employer. In Denver action was not taken pursuant to any lawful bargaining agreement.
. “Strongly held opposing views have invariably marked controversy over labor’s use of the boycott to further its aims by involving an employer in disputes not his own. But congressional action to deal with such conduct has stopped short of proscribing identical activity having the object of pressuring the employer for agreements regulating relations between him and his own employees.” National Woodwork,
.The Board maintains that this circuit and those other courts which have rejected the right to control doctrine have improperly converted the search for proscribed union activity from an analysis of whether an object of the union is secondary to an analysis of whether the principal object of the union is secondary. See brief for the NLRB at 27-28. The Board thus criticizes these courts because they “seem to conclude that if the union is seeking to enforce a valid work preservation clause
, The first situation would be one in which the union, in furtherance of a work preservation agreement with a subcontractor, not only refuses to handle prefabricated goods, but also exerts pressure directly against the general contractor to terminate its contract with the manufacturer. Cf. NLRB v. Local 825, Operating Eng’rs [Burns and Roe],
A second situation would be one in which the union discriminates in its work preservation tactics on the basis of the organizational status of the manufacturer. For example, when a dispute arose over work preservation and the disputed work was performed by an affiliated labor organization, the union may have only sought compensatory pay and submitted the dispute to arbitration. Yet in similar circumstances, when the manufacturer’s employees were nonunionized, the union may have struck against its employer, hoping it-would pressure the general contractor to terminate the manufacturer’s contract. Given such facts, the valid work preservation objective could be held to be tainted by the improper secondary objective.
We recognize that such secondary objectives will not often be found when the union’s principal objective is work preservation. We merely wish to demonstrate that we are cognizant of the statutory mandate and that we will hold such secondary objectives to be unlawful should they be detected. However, given the Supreme Court’s approval of work preservation clauses in National Woodwork, and the policy of allowing contending parties to support their demands through economic pressures, we do not find that a work preservation action such as the one in the present case necessarily has per se any unlawful secondary objective, although it may have severe effects on neutral employers.
.
. For example, such a reconsideration might challenge the Board’s assumption that the union was not in fact attempting to organize the Slant/Fin employees.
. The National Woodwork Court stated that the relevant “circumstances might include the remoteness of the threat of displacement by the banned product or services, the history of labor relations between the union and the employers who would be boycotted, and the economic personality of the industry. See Comment, 62 Mich.L.Rev. 1176, 1185 et seq. (1964).”
Concurrence Opinion
(concurring):
I concur in Part III of the Court’s opinion, in the bulk of its reasoning and in its judgment that the Board’s “right to control” test is inconsistent with National Woodwork Manufacturing Association v. NLRB,
I.
The central dilemma presented by § 8(b)(4) is well known and needs no extended recital. The section purports to prohibit any inducement to force an employer “to cease doing business with any other person.”
The accommodation between Sections 7 and 13 and Section 8(b)(4) which the Board urges upon us focuses on the union’s “secondary intent.” If a union has an “intent” to achieve the secondary effects occasioned by its strike otherwise protected by Sections 7 and 13, then it follows that the union has engaged in a § 8(b)(4) “secondary boycott.” If the union does not intend to achieve those effects but rather seeks only to achieve effects on the primary employer, then the strike is “primary” and not violative of § 8(b)(4). In the Board’s words: “While not prohibiting ‘the incidental effects of traditional primary activity,’ Congress by Section 8(b)(4)(B) has ‘barred as a secondary boycott union activity directed against a neutral employer, including the immediate employer when in fact the activity directed against him was carried on for its effect elsewhere.’ ... If a ‘tactical object’ of the union’s conduct is a person other than the employer of the boycotting employees, the ‘boycott [is] secondary in its aim.’ ”
A moment’s reflection will suggest the difficulty with this formulation. The union surely intends the secondary effects of all strikes. That secondary effect is part, indeed, in some cases the only operative part of the strike weapon. This observation, rejoins the Board, citing dicta in Denver Building and Trades,
The Board attempts to limit the far reaching effect of its reasoning by applying it only when the primary employer has no “right to control” assignment of disputed work in work preservation controversies. The Board argues that in this limited situation it can reasonably presume that the union’s economic pressure on the primary employer is intended to particularly affect the employer who does have the right to control assignment of the disputed work. The union’s object must then be to pressure the employer who does have this right to control to satisfy the union’s objective.
But can the Board’s reasoning be limited to situations in which the struck employer has no right to control the disputed work? Assume the immediate employer does have the right to control assignment of the work. A strike to force him to exercise that discretion, i. e. change his purchasing policies, to assign the work to his employees has exactly the same effect as a strike to force him to stop doing business with an individual who, in the situation in which the immediate employer has no right to control, would have the discretion to assign the work to the disputing employees. We have consistently held that a strike to force a termination of business is no different from a strike to force a change in purchasing policies;
If the secondary effects of a strike of or job action against a primary employer are equal when the employer has right to control and when he does not have right to control, why is it that the union does not “intend” the secondary effects in the first situation but does in the second? Surely, the Board will not be heard to argue that since the primary employer can legally “satisfy” the union’s demand in the first situation, the presumption as to “intent” is not applicable. The employer who has no right to control can also legally satisfy the union’s demand by terminating the offending contract or paying off the union for its lost wages. Similarly, as the general contractor in the non-right to control situation can satisfy the union’s demands by changing his own purchasing policies, so the manufacturer in the right to control situation can satisfy the union demands by constructing heating and cooling units such that threading and fitting is done on the job or by going out of business.
To this argument, I take it, the Board’s only possible response is that its experience with union actions in the construction industry convince it that (a.) the union is unconcerned with any secondary effect on a manufacturer, when the union’s employer can assign it the work in dispute, but (b.) is specially and vitally concerned with the secondary effect on an employer who could assign the disputed work to the union. But surely the Board does not argue that the union does not intend that the manufacturer feel no effects of economic pressure on a right to control employer; nor by its own admission in this case does it argue that the union is specifically seeking to bargain with an employer who
My conclusion in this regard is buttressed by another consideration. Clearly, a union strike over failure to agree to an increase in wages or failure to comply with such an agreement does not become secondary activity simply because the employer’s ability to pay is practically dependent on the price he himself receives from a third party. Yet only the third party has the “right to control” resolution of the dispute and thus, under the Board’s reasoning, the immediate employer is a “secondary.” The Board seeks to avoid this intuitively absurd result by stating that the inability to satisfy union demands must be “legal” not “practical”
If the Board’s presumption of secondary intent when the employer has no right to control is extended to situations in which the employer does have the right to control — as, in logic, it must be extended, as discussed above — the right to control presumption becomes not an accommodation between § 8(b)(4) and §§ 7 and 13 but rather an administrative repeal of the right to strike.
II.
Having said all this, I think it appropriate to make some brief remarks about what is proscribed by § 8(b)(4). That is not an easy task since the 80th Congress which passed that provision did not specify what the provision was meant to outlaw. All who read the Section agree it can not be taken literally. All who know the history of the Taft-Hartley Act realize that Congress surely meant to outlaw something that unions were engaged in. The project for the courts and the Board has been to formulate the scope of § 8(b)(4)’s proscription. It is instructive to consider the two areas in which the Board and the courts have with some exactitude delineated the scope of § 8(b)(4).
The first area involves those cases in which the union directly seeks to obtain a concession for a specific group of employees from an employer with whom it has no bargaining relationship under the NLRA relating to those specific employees.
These same general policies of the Act may also explain the other area in which the courts and Board have reached agreement on the scope of § 8(b)(4) — any union attempts to obtain from its immediate employer an agreement to or practise of refusing to handle non-union goods or to work on jobs where non-union workers will» be present violate § 8(b)(4).
The relation of the proscription of § 8(b)(4) to the general policies of TaftHartley and the NLRA provides a more firm structure to the secondary boycott provisions, one more easily complied with and one more readily administered. It furthermore has the salutory effect of enhancing Congress’ role as the ultimate arbiter of union power and employer power in the collective bargaining process. With attention thus directed to the substantive desirability of the union’s
. See Brief for the NLRB at 8-10. This question pertains to the effect of a subsidiary holding in Denver Bldg. & Construe. Trades Council v. NLRB,
. National Labor Relations Act § 8(b)(4)(ii)(B), 29 U.S.C. § 158(b)(4)(ii)(B) (1970).
. Local 761, Electrical Workers v. NLRB,
.See, National Woodwork Manuf. Ass’n v. NLRB,
. Brief for the NLRB, at 7 citing National Woodwork Manuf. Ass’n v. NLRB,
. Denver Bldg. & Construe. Trades Council v. NLRB,
. The Board seems unaware of this fact and of the serious problems such an approach raises in terms of the over-all equity of the NLRA. It is largely for this reason that I would, if I were writing on a clean slate, adopt the views of Judge Fahy stated in Denver Bldg. & Construe. Trades Council v. NLRB,
. See, e. g., Local 5, Plumbers & Pipefitters v. NLRB,
. See National Labor Relations Act § 8(b)(4)(ii)(B), 29 U.S.C. § 158(b)(4)(ii)(B) (1970): “ . . . forcing or requiring any person to cease . . . handling . the products of any other . . . manufacturer . . . .”
For this reason the statement in H.R.Rep.No. 245, 80th Cong., 1st Sess. 23 (1947), cited by the Brief for the NLRB at 9-10 n. 5 and relied upon in Local 419, Carpet Layers v. NLRB,
. See Local 1694, ILA (Bd. of Harbor Comm’rs),
. The Board is apparently waffling on the question of whether the union may strike the general contractor who in circumstances as those sub judice has the right to control. It first held that the union did have that right but the 9th Circuit rejected that holding on appeal. See Western Monolithics Concrete Prod., Inc. v. NLRB,
The Board offers solace to the union by stating that the union may enforce its contractual agreement with its immediate employer in a § 301 suit. See Local 438, Plumbers & Pipefitters (George Koch Sons),
While the Board does not explicitly make the argument, one could argue that the principle of Local 174, Teamsters v. Lucas Flour Co.,
. National Woodwork Manuf. Ass'n v. NLRB,
. See Coronado Coal Co. v. United Mine Workers,
. The sort of judicial review of administrative action involved in this case is not really a direct ruling on a “question of law”; nor is it a ruling on a matter outside of the agency’s expertise. Rather it is a ruling that the agency in exercising its expertise in an area of mixed facts and law did not act reasonably in developing a rational interpretation of the Act. This form of judicial review is largely supervisory and should be sparingly used. Cf. Local 761, Electrical Workers v. NLRB,
. See NLRB v. Local 825, Operating Eng'rs,
But we think a union forfeits its exemption from the antitrust laws when it is clearly shown that it has agreed with one set of employers to impose a certain wage scale on other bargaining units. . . . [T]here is nothing in the labor policy indicating that the union and the employers in one bargaining unit are free to bargain about the wages, hours and working conditions of other bargaining units . . .. On the contrary, the duty to bargain unit by unit leads to a quite different conclusion, (emphasis added)
. Cf. United Mine Workers v. Pennington,
. National Labor Relations Act § 8(b)(7), 29 U.S.C. § 158(b)(7) (1970); see San Francisco Local Jt. Exec. Bd., Culinary Workers v. NLRB,
. Washington-Oregon Shingle Weavers Dist. Council,
.Lesnick, supra note 5, at 1004-06.
. Cf. Bickel & Wellington, Legislative Purpose and the Judicial Process: The Lincoln Mills Case, 71 Harv.L.Rev. 1 (1957).
Congress when confronted with properly framed issues may take two approaches. First, it may directly restrict union economic power when used in pursuit of a particular bargaining objective. See §§ 8(b)(4)(ii)(D); 10(k), 29 U.S.C. §§ 158(b)(4)(ii)(D); 160(k) (1970) (compulsory arbitration over work assignment and jurisdictional disputes); § 8(b)(7), 29 U.S.C. § 158(b)(7) (1970) (time limitation for organizational picketing and the right to have a Board regulated election); § 8(b)(1), (2), 29 U.S.C. § 158(b)(1), (2) (1970) (limitations of union security objectives); and the provisos to § 8(e), 29 U.S.C. § 158(e) (1970) (union may bargain for agreement not to handle non-union goods or work with nonunion workmen but may not strike to enforce such an agreement).
Second, Congress may take steps to mitigate the more harsh effects of union economic power. See, e. g., National Labor Relations Act § 208, 29 U.S.C. § 178 (1970); Railway Labor Act, 45 U.S.C. §§ 154-63, 183-85 (1970); C. Summers & H. Wellington, Labor Law 845-883 (1968).
The “institutional” view of the role of the courts suggested in the text would also seem to mitigate the difficulties of judicial application of the stated purpose of § 8(b)(4) — the protection of “neutral” third parties. See, e. g., National Woodwork Manuf. Ass’n v. NLRB,
. Cf. National Labor Relations Act § 7, 29 U.S.C. § 157 (1970) (“Employees . . . shall also have the right to refrain from” collective bargaining); §§ 8(a)(1), (b)(1), 14(b), 29 U.S.C. §§ 158(a)(1), (b)(1), 164(b) (1970). See also International Ass’n of Machinists v. Street,
Another advantage of the view of § 8(b)(4) enunciated in the text is its correlation with anti-trust doctrine. This correlation has already been suggested in note 15 supra. It may also be seen in a comparison of Local 189, Meat Cutters v. Jewel Tea Co.,
This correspondence between present antitrust doctrine and § 8(b)(4), which focuses on the union’s bargaining objective, is consistent with the common law position on secondary boycotts — that union boycott activity is illegal unless justified by a “privilege.” See Vegelahn v. Guntner,
The Supreme Court appeared to recognize the relation of § 8(b)(4) doctrine and anti-trust doctrine in Connell Construc. Co. v. Local 100, Plumbers & Steamfitters,
. The Board makes one final implied argument. It is suggested that the construction industry proviso to § 8(e) by approving certain types of job sites agreements but forbidding economic pressure brought to enforce such agreements would be undermined by our holding in this case. By permitting economic pressure in support of an agreement which would fall under the proviso to § 8(e) if it involved an agreement with the general contractor, it is argued, this Court is ignoring the Congressional assumption that such agreements may not be enforced through economic pressure. This argument must be rejected. First, a close reading of the legislative history, particularly the Congressional consideration of Denver Bldg. Trades, indicates the only subject of Congressional action was union signatory agreements, economic pressure in support of which would not be approved by my reasoning or the Court’s. See Conf.Rep., supra note 1, at 39; Connell Construction Co. v. Local 100, Plumbers & Steamfitters,
I make one caveat to the reasoning of this opinion. The case sub judice concerns union pressure on an allegedly third party employer proscribed by § (b)(4)(ii)(B), and not union pressure on other employees as proscribed by § 8(b)(4)(i), except to the extent the union here attempted to persuade its own members to
Dissenting Opinion
with whom TAMM, ROBB and WILKEY, Circuit Judges, join (dissenting):
We review here a determination of the National Labor Relations Board that Enterprise Association engaged in an illegal secondary boycott as proscribed by section 8(b)(4)(B) when it sought to enforce its interpretation of a clause in its collective bargaining contract wherein the employer agreed that certain pipefitting operations would be performed at the job-site. The majority opinion concerns itself almost entirely with the validity of the “right-to-eontrol test” which it asserts the Board used as the sole test to judge the legality of the Union’s action. I disagree with the majority’s assessment as to the use of the test, which seems to me thoroughly compatible with the Supreme Court’s National Woodwork decision,
I. THE PROHIBITION AGAINST SECONDARY BOYCOTTS
The central issue in this appeal revolves around the secondary boycott provisions of the Labor-Management Relations Act. The statute prohibiting such boycotts was first enacted in 1947 as section 8(b)(4)(A) of the Taft-Hartley Act. It was amended by the Landrum-Griffin Act in 1959 and at that time redesignated as section 8(b)(4)(B).
A. Factual Background.
The rendition of the following basic facts by the ALJ is not in dispute
Slant/Fin Corporation (hereafter Slant/Fin), manufacturer of the air-conditioning units, was a New York Corporation with its principal office and place of business in Greenvale, New York.
Austin, the general contractor and engineer for the Norwegian Home for the Aged, was an Ohio Corporation with its principal office and place of business in Roselle, New Jersey. Austin engaged in providing and performing engineering, general contracting and related services in various states of the United States, including New Jersey and New York.
Hudik-Ross Co., Inc. (hereafter Hudik), the heating and air-conditioning subcontractor, was a New York Corporation with its principal office and place of business in New York City. It engaged in providing heating, ventilation, air-con
Austin was designated general contractor and engineer for the construction of the Norwegian Home in New York City. In that capacity, Austin prepared the engineering job specifications, employed directly certain Union construction workers, and subcontracted the electrical, plumbing, heating, ventilation and air-conditioning work to various subcontractors.
The building specifications were dated November 29, 1971. With respect to the heating and air-conditioning units they provided:
Furnish at the jobsite Slant/Fin Climate Command Air Conditioners. The unit shall be complete with cabinets, filters, cooling chasis, heating coil fans, main water flow and condensate assembly .
******
The main flow and condensate assembly shall be factory installed as an integral part of the unit by the manufacturer .
******
Manufacturer shall furnish a written guarantee for a period of one year after completion of installation .
******
(J.A. 233). (Emphasis added).
These specifications required the subcontractor (Hudik) to install air-conditioning units as manufactured by Slant/Fin complete with the factory installed “waterflow and condensate assembly,” i. e., with internal prepiped waterflow and condensate assemblies. With this prepiping, the equipment would be guaranteed by the manufacturer for one year.
Hudik received the subcontract for the heating, ventilating and air-conditioning work as the result of competitive bidding and on January 14, 1972, entered into the subcontract with Austin to install the heating and air conditioning in the building according to the specifications. The Administrative Law Judge found that Hudik was aware of the above-quoted specifications prior to bidding.
Hudik had been a union contractor in New York City for many years and its collective bargaining contract with the Union provided for compliance with the following rule:
RULE IX
CUTTING PIPE AND MAKING UP FITTINGS
******
Radiator branches, convector branches and coil connections shall be cut and threaded by hand on the job in accordance with Rule V.
******
(J.A. 213). The Union contends that Rule IX required Hudik to assign to its members on the jobsite the work of cutting and threading certain “internal piping” in the air-conditioning units. But the building specifications with which Hudik was obligated to comply required the installation of the completed units as delivered by Slant/Fin with their internal piping for main waterflow and condensate assembly already assembled by the manufacturer. The subcontract called for the installation of 114 air-conditioning units at a total cost of $51,000 (J.A. 192).
On June 22, 1972, the air-conditioning units arrived at the jobsite and were unloaded. Hudik’s job foreman contacted Daly, the Union’s business agent, and the two men proceeded to inspect the units. The next day, Daly told Austin’s project superintendent that members of
Nevertheless, because the internal piping had been done at the factory, the Union refused to install the Slant/Fin units, and as a consequence held up completion of the building. Austin filed an unfair labor practice charge against the Union alleging that it was engaged in an illegal secondary boycott prohibited by section 8(b)(4)(B). The Union had never met with Slant/Fin and there was no evidence that the Union had ever tried to organize Slant/Fin’s employees.
There was testimony that on other jobs the Union had fitted pipe on similar American Standard air-conditioning units on the jobsite, but a witness for the pipefitters pointed out that those units did not have the bypass arrangement or condenser contained in the Slant/Fin equipment. (J.A. 151 — 155). The engineering sketch of the manufactured unit, see Figure 1 (J.A. 196, 224, 225), indicates that the work the local Union claimed included a number of integrated and necessary internal parts of the complete air-conditioning unit produced and guaranteed by Slant/Fin. The disputed work was substantially more than just cutting and threading the pipe to connect the air-conditioning units to the basic piping that ran throughout the building. It included connecting up two valves and a condenser (J.A. 196, 224, 225) — in other words, the Union sought to perform final assembly tasks on internal parts of the air-conditioning units. See Figure 1. To comply with
Figure 1. At the hearing before the ALJ, Robert Grand, District Superintendent for Austin, drew circles around internal piping at either end of a diagram of the Slant/Fin unit to indicate the location of the “main water flow and condensate assembly piping.” (J.A. 78-79). Subsequent witnesses testified that this piping was guaranteed to the Union by Rule IX and was the source of the dispute between Enterprise and Hudik. (J.A. 122, 130, 167-69). Frank Hudik drew “x’s” on the diagram at both ends of the unit to indicate the location of piping necessary for installation of the completed Slant/Fin assembly. (J.A. 123-24).
The finding critical to this appeal in the decision by the ALJ stated:
3. By inducing and encouraging individuals employed by Hudik to engage in a strike and in a refusal in the course of their employment to handle and work upon factory piped heating and cooling units manufactured by Slant/Fin, which Hudik was required by its contract with Austin to install in the Norwegian Home being constructed by Austin as engineer and general contractor, and by coercing and restraining Hudik, an object thereof being to force or require Hudik to cease using factory piped heating and cooling units and cease doing business with Austin and Slant/Fin, Respondent had engaged and is engaging in unfair labor practices within the meaning of Section 8(b)(4)(i) and (ii)(B) of the Act.7
(J.A. 243). In his opinion the ALJ analyzed the facts and set forth his reasoning in considerable detail,
C. The Board’s Decision
Both the Union and the General Counsel filed exceptions to the ALJ’s decision with the Board. Upon review of these submissions, the Board decided
to affirm the rulings, findings, and conclusions of the Administrative Law Judge to the extent consistent herewith, and to adopt his recommended Order.
(J.A. 252).
Although the Board essentially adopted the findings and reasoning of the ALJ, its opinion highlighted the facts that (1) the refusal to work was based on a “valid work preservation” contract with Hudik, (2) Hudik was incapable of assigning the work because the questioned work was never Hudik’s to assign in the first place, and (3) the Union had immediately and specifically informed Austin, the general contractor, who did not have a contract with or employ any members of the Union, that it would not permit Hudik to install the air-conditioning units. This latter fact indicates that Austin was an object of the Union’s .complaint from the very start. The Union knew that Austin as the general contractor was the only party with the power to comply with its demand. Thus, relying on the opinion of the ALJ and its own additional statement, the Board found that the Union was exerting prohibited secondary pressure on Hudik with the object either of forcing a change in Austin’s manner of doing business or of forcing Hudik to terminate its subcontract with Austin. The Board concluded that the Union’s exertion of pressure on Hudik contravened section 8(b)(4)(B) because it was undertaken for its effect on Austin and Slant/Fin.
It is apparent that the literal provisions of the secondary boycott statute were violated: the Union did as “a labor organization . . . induce [and] encourage . . . individuals] employed by any person engaged . in an industry affecting commerce to engage in, a strike [and] . . . refusal in the course of [their] employment to use ... or otherwise handle or work on . . goods, articles . where ... an object thereof [was] — (B) forcing [and] requiring ... [a] person to cease using . . . handling or otherwise dealing in the products of any other producer . . . .” 29 U.S.C. § 158(b)(4)(B). Translating the statute to the facts of this case:
The Union induced and encouraged its steamfitters employed by Hudik to strike and refuse to use, handle and work on air-conditioning units with internal prepiping where an object of their strike and refusal was forcing and requiring Hudik to cease using the products of Slant/Fin and to cause Austin to cease doing business with Slant/Fin.
We are told by National Woodwork, however, that it is not sufficient to find a violation of the “the letter of the statute” and that in determining whether certain action is “within the intention of the makers [of the statute],” we should interpret the Act according to “its spirit.”
To solve it we start with a factual situation which presents a secondary boycott as proscribed by the literal language of the Act. The question then arises whether the spirit of that law is violated by the acts of the Union in this instance.
The majority points to National Woodwork for the principle that “[t]he touchstone is whether the agreement or its maintenance is addressed to the labor relations of the contracting employer visa-vis his own employees.”
Judge Wright’s opinion seeks its principal support in the decision in National Woodwork, but the Supreme Court noted that that case involved a primary boycott, a fact which clearly distinguishes it from this case. There the general contractor had agreed with the local carpenters’ union that carpenters he employed would not handle premachined doors. This building contract gave him discretion to use premachined or blank doors, yet he ordered premachined doors from the National Woodwork Manufacturers Association. He was promptly struck by his union carpenters. On these facts the Supreme Court, in the case which resulted from the petition of the Association, held that when employees strike their immediate employer to secure compliance with demands for legitimate work preservation, the boycott is primary and thus not prohibited by section 8(b)(4)(B).
While the opinion in National Woodwork recognizes that the object of the strike was the preservation of traditional work it does not hold that all attempts to preserve traditional work by striking one’s immediate employer constitute permissible primary boycotts. In fact, the opinion states exactly the contrary:
In effect Congress, in enacting § 8(b)(4)(A) [now § 8(b)(4)(B)] of the Act, returned to the regime of Duplex Printing Press Co. and Bedford Cut Stone Co., supra, and barred as a secondary boycott union activity directed against a neutral employer, including the immediate employer [emphasis added] when in fact the activity directed against him was carried on for its effect elsewhere.
E. Traditional Work
The Union contends, and Judge Wright’s opinion concludes, that the strike against Hudik is primary because the strikers are employed by Hudik, because they are striking Hudik, and because they claim that their sole objective is to enforce Hudik’s agreement to assign them their traditional work. Because they are striking their immediate employer to enforce a provision of their contract with him, this argument has a surface plausibility. But this superficial analysis of obvious facts does not necessarily lead to the conclusion that the Union’s refusal to work on the Slant/Fin air-conditioning units was a primary boycott of Hudik.
As Representative Griffin pointed out during the debate on the Landrum-Griffin Bill, “[w]e must look to the purpose of the picketing in the particular situation.”
The Union is seeking what it asserts is work preservation, but the means it has chosen toward that end — a strike against an employer who never had the disputed work to assign — constitutes secondary pressure. The boycott’s purpose is served primarily by the pressure the Union brings to bear on Austin and Slant/Fin through its strike against Hudik. It is the force and direction of this pressure that determines whether the boycott is primary or secondary. The only parties who could be said to have taken the work away from the local union are Slant/Fin, who manufactured the units complete with internal piping, and Austin, who specified the installation of such completed units. The strike insofar as it is against Hudik is not to achieve work preservation because the strike could not preserve work that Hudik never possessed and never had the power to assign.
What the Union is attempting to do by its strike is to compel Hudik to acquire work its members can perform, and this goal is to be accomplished by the secondary pressure that the strike against Hudik brings to bear upon Austin and Slant/Fin: specifically, Hudik can no longer install air-conditioning units necessary for the completion of the building according to contract specifications. Unlike the strike in National Woodwork, this action is not a primary boycott against an immediate employer seeking to compel him to exercise discre
The determination whether a boycott is secondary involves consideration not only of the objective of the strike in terms of working conditions, but also of the means sought to achieve that objective. As the National Woodwork Court noted, the “central theme” of section 8(b)(4)(B) is “the protection of neutrals against secondary pressure.”
F. The Secondary Boycott Conducted by Local No. 8 in New York City
The majority opinion in National Woodwork sought to identify “Congress’ purpose in enacting” section 8(e), a provision closely related to and enacted at the same time as section 8(b)(4)(B). The Court indicated that the answer was to be found “from an examination of the history of congressional action on the subject.”
This legislative history begins with the enactment in 1947 of section 8(b)(4)(A),
In the Senate the subject matter of section 2(14)(A) and (C) of H.R. 3020, provisions dealing with “illegal boycotts,” was placed in section 8(b)(4)(A), which tracked closely the language of the House bill. In the Senate the section assumed its present basic character as a prohibition against an unfair labor practice.
Illegal boycotts take many forms. Often they are to compel employers to force their employees into unions or to give a union control over them as their bargaining agent in violation of the Labor Act itself. Sometimes they are direct restraints of trade, designed to compel people against whom they are engaged in to place their business with some other than those they are dealing with at the time, or vice versa. The effects of boycotts upon business, and particularly upon small commercial enterprises in metropolitan centers, such as New York, Philadelphia, and Pittsburgh, have often been disastrous.22
The sentence in italics identifies an objective of the boycott we are dealing with here.
The House accepted the statutory framework adopted by the Senate and the Senate’s redraft of section 8(b)(4)(A)
The statements on the floor of Congress and the committee reports all make some contribution toward clarifying the legislative intent, but no single item of legislative history is any more important to the problem posed by this appeal than the following quotation with respect to section 8(b)(4)(A) from the Senate Report in 1947 on the Senate bill:
This paragraph [§ 8(b)(4)(A)] also makes it an unfair labor practice for a union to engage in the type of secondary boycott that has been conducted in New York City by local No. 3 of the IBEW, whereby electricians have refused to install electrical products of manufacturers employing electricians who are members of some labor organization other than .local No. 3. (See testimony of R. S. Edwards, vol. 1, p. 176 et seq.; Allen Bradley Co. v. Local Union No. 3, I. B. E. W.,325 U.S. 797 ,65 S.Ct. 1533 ,89 L.Ed. 1939 .)
S. Rep. No. 105 on S. 1126, 80th Cong., 1st Sess. 22, 1 Leg.Hist. 428 (emphasis added). While the secondary boycott conducted by Local No. 3 in New York City encompassed manufacturing, distribution, installation and repair, it is significant that the Senate Report on the bill chose to mention only the installa
G. Edwards’ Senate Testimony and the Conspiracy in Allen Bradley
The secondary boycott conducted in New York City by Local No. 3, IBEW is best described in Edwards’ testimony
Thus, in its essential features, and particularly as it related to installation abuses, the boycott by Electricians Local No. 3 in New York City described in Edwards’ testimony was very close to that which the Steamfitters’ Union here brought against Hudik. Both unions refused to install manufactured articles to protect the on-site job work of their union members, and the only way their demands could be met was to allow the manufactured articles to be dismantled on site and permit the members of the local union to redo the work already done by the manufacturer, and for the future, for the employer having charge of the installation to cease doing busi
The Senate Report clearly indicated that the “will not handle or work on” provisions of section 8(b)(4)(A) were aimed at precisely the type of secondary boycott that exists here.
H. The Majority Opinion and Right to Control
Faced with the fact that the letter of the statute is clearly violated and that the ALJ and the NLRB after considering all the surrounding circumstances found a secondary boycott in violation of the Act, the majority opinion launches into an attack on the so-called right-to-control test, which it asserts the Board used as the sole basis for its decision. In this respect the majority opinion is in error. The ALJ clearly considered all the “surrounding circumstances”
Moreover, after devoting most of its opinion to an attack on the concept of
However, in remanding in Local 742;38 supra, and Local 636;39 supra, we held that legal control in the struck employer over assignment of the work which a union professes a desire to preserve, while not alone dispositive, may be considered by the Board along with other factors [emphasis added] suggested by the National Woodwork Court in determining the union’s actual objective.
Majority Op.,
It must also be noted that since right-to-control is recognized as a part of the test to be applied in such cases, instances may well arise where the outcome of its application will prove to be the decisive factor. In passing the original secondary boycott restriction, the House of Representatives forecast the use of a right-to-control test when it indicated that it intended to proscribe those boycotts where “the employers are powerless to comply with the demands giving rise to the [boycotting] activities . . . .” H.R.Rep. No. 245, 80th Cong., 1st Sess. 23 (1947), I 1947 Leg. Hist. 314.
This comment recognizes the force and validity of a right-to-control test and the unfairness of permitting a strike against an employer who lacks the right to control the decision. Even where right-to-control is not decisive, in almost any case it will be a factor entitled to very substantial weight because it measures the ability of the employer to comply with the union demands. Law and logic compel the conclusion that the ability or inability of two individuals to comply with a demand is a very material factor in determining whether one or the other is the true object of’the demand.
II. THE RIGHT-TO-CONTROL TEST
By 1967 seven Circuit Courts of Appeals had reviewed the right-to-control test: each circuit had validated the test without dissent.
On two occasions this court has announced similar decisions.
A. The Surrounding Circumstances
The majority admonishes the-Board to scrutinize the “realities” of the Union’s dispute with Hudick-Ross, and insists that the single-minded right-to-control formula is devoid of practicality as well as theoretically bankrupt. A closer look at the findings and conclusions of the Administrative Law Judge (ALJ) which the Board adopted
1. The Contractual Framework
The ALJ determined that Austin was both general contractor and engineer for construction of the Norwegian Home for the Aged. Significantly, “Austin prepared the engineering job specifications for the Norwegian Home.”
In his conclusions of fact, the ALJ advanced an interpretation of the work preservation agreement between Hudik and Enterprise.
[I]n my opinion, the instant contract between Hudik and the Union, in providing that pipe would be cut and threaded on the job, necessarily implied that it referred to pipe within Hudik’s control and which could be cut on the job. Neither Hudik nor the Union in their contract could prescribe nor were they prescribing the treatment of pipe that was within or had*268 been within the control of some other party . . . ,47
The ALJ buttressed his interpretation of the work preservation agreement with a practical analysis of the benefit the Union hoped to derive from the provision.
[W]e might presume that the Union would have been happy and content if Hudik had never sought or received the Norwegian Home contract or if Hudik would breach his subcontract as soon as the Union reminded Hudik of Rule IX of the Union contract. But, if Hudik, an employer of union steamfitters, does not bid on jobs and does not secure subcontracts, how does such ■ a situation preserve or increase work for Hudik’s union steamfitters48
Implicit in this observation is a reality to which the majority gives lip service but which it fails to apprehend: Hudik could not decline to bid on projects with prefabrication specifications and continue to be a competitive subcontractor.
Regardless of the validity of the ALJ’s construction of Rule IX of the collective bargaining agreement, his tacit observation that trade unions’ work preservation agreements almost inevitably conflict with contractual design specifications evinces a practical understanding of the true nature of the dispute between Hudik and Enterprise. Underlying his decision is the determination that the fundamental responsibility for prefabrication specifications in the construction industry falls on architects, engineers, and general contractors, and that boycotts by craft unions against subcontractors necessarily have as a primary object the application of pressure to those third parties who actually require the use of factory-prepared products.
2. The Labor Situation in New York
In analyzing the dispute between Enterprise and Hudik, the ALJ gave particular emphasis to three distinct points. First, Austin, in its capacity as “engineer and general contractor for the entire job, had made an engineering and business judgment that the Slant/Fin units were to be used on the project . . ..”
Second, the ALJ identified the means by which pressure could be brought to bear on these responsible parties. He drew a distinction between “effective” and “ineffective” “means or instrumentalit[ies] . . . for exerting pressure against the manufacturer of prepiped
Third, the ALJ examined the circumstance most relevant to the instant case: the dearth of nonunion labor in New York City, site of the Norwegian project.
*270 [I]t is an appropriate subject of official notice that in New York City and probably in all or most of the major cities in this country, the building and construction industry is unionized, certainly with respect to major industrial, commercial, and public construction.56
The ALJ asserted that the Norwegian Home was “in an area where there are no nonunion steamfitters available or no nonunion mechanical contractors; or, if either of the nonunion categories exist, neither Austin, the union general contractor and engineer, nor Hudik, the union subcontractor could or would see them.”
If prepaid [prepiped] units cannot be installed in the large commercial, public, and industrial buildings in the New York area or in other areas effectively organized by the Union and other building trades unions, the manufacture^] will be materially affected and Austin and other engineers and general contractors will not specify their purchase and use in buildings.60
Finally, the ALJ fit these factual parameters into the legal equation of section 8(b)(4)(B) and concluded that the Union’s dispute was not with the actions of Hudik, but rather with the labor policies that Austin enforced through its specifications and with the products distributed by Slant/Fin. Because Hudik was accorded a secondary role in the conflict, the boycott by the Union violated the Act’s prohibition of economic action directed toward neutral employers.
3. The Order of the Board
The Labor Board affirmed “the rulings, findings, and conclusions of the Administrative Law Judge to the extent consistent” with its own brief Decision and Order, and adopted his recommendation that the Union be ordered to discontinue its boycott of Hudik. The Board’s principal exception to the ALJ’s findings was its refusal to rule, as he had, that economic actions directed against Austin and Slant/Fin would constitute lawful primary activity. It nevertheless concurred in his determination of Hudik’s neutrality. To reinforce his conclusion that Austin was the true object of the boycott, the Board noted that
the Respondent informed Austin, who did not employ employees represented by the Respondent and had no agreement with that Union, that it would not let Hudik install the climate control units involved.61
The Board also articulated a point that was implicit in the findings of the ALJ, that the ultimate purpose of the Union’s action was the preservation of work its member employees had traditionally performed. But the means adopted by the Union to achieve this goal offended the Act’s proscription of secondary boycotts. “Since the pressure exerted by the Re
B. The Significance of “Control”
The unrealistic, undimensional per se control test the majority discredits is a straw man. The Board does not employ a per se formulation, which might well violate the stricture of National Woodwork that the focus of a union’s action must be determined from all the surrounding circumstances; instead, the Board relies on a prima facie standard. By this test, a union may not boycott an employer who lacks the right to control the assignment of disputed work, provided that the employer has not voluntarily relinquished that control.
The situation which the Board contemplates would shift responsibility for the dispute to the employer is precisely that of National Woodwork. Discretion in the specification of prefitted doors rested with Frouge, the general contractor.
That the factual differences between National Woodwork and this case are sufficient to justify the legal distinction the Board urges is suggested by the ALJ’s conclusion that Hudik’s alternatives were either to bid on the Norwegian Home contract in spite of the contractual conflict or to have insufficient work for its employees.
The legal consequence of this distinction is the classification of subcontractors like Hudik who enter contracts with specifications contrary to their work preservation agreements as neutral employers. The majority rejects as inherently sophistical the notion that such employers can ever be termed neutral: in their eyes Hudik, for example, has actively violated an understanding for which the Union bargained collectively, and the Union’s dispute is clearly with Hudik.
The right-to-control test would clearly be less palatable if “control” signified-only immediate legal dominion or contractual power, as the majority suggests.
I recognize, as have both the majority and the ALJ, that as a class, as an intermediate echelon in the construction industry, subcontractors like Hudik do exert considerable influence over the use of prefabricated materials in construction projects. In footnote 25 the majority cites the ALJ’s conclusion that “[i]f prepaid [sic] units cannot be installed * * Austin and other engineers and general contractors will not specify their purchase and use in buildings.”
Clearly section 8(b)(4)(B) represents a compromise, an accommodation between the “dual congressional objectives of preserving the right of labor organizations to bring pressure to bear on offending employers in primary labor disputes and of shielding unoffending employers and others from pressures in controversies not their own.”
The majority skirts the effect of the inclusive language of section 8(b)(4)(B) by insisting that the provision cannot in all reason be construed to preclude enforcement of a valid collective bargaining agreement. But we have been cautioned not to expand the Union’s right to strike beyond the limits prescribed by the Act. The principle that “a violation of the secondary boycott provisions cannot be justified by a contractual' arrangement between the union and the neutral employer”
Analysis of the object of economic action taken to enforce a contractual provision would be strained if the purpose of the provision itself were not considered. The National Woodwork Court noted that union economic activity enforcing contractual provisions was prohibited where “the agreements and boycott were tactically calculated to satisfy union objectives elsewhere.”
The realities of coercion are not altered simply because it is said that the employer is forced to carry out a prior engagement rather than forced now to cease doing business with another. A more important consideration, and one peculiarly within the cognizance of the Board ... is the possibility that the contractual provision itself may well not have been the result of choice on the employer’s part free from the kind of coercion Congress has condemned. [T]o allow the union to invoke the provision to justify conduct that in the absence of such a provision would be a violation of the statute might give it the means to transmit to the moment of boycott, through the contract, the very pressures from which Congress has determined to relieve secondary employers.90
Partly in response to Sand Door,
D. The Union’s Alternative Remedies
The majority disapproves the Board’s result as well as its analysis, suggesting that the NLRB is not empowered to define the arsenal of economic weapons each party to a labor dispute may use.
In Insurance Agents the Court rejected a distinction which the Board essayed, between the traditional “total strike” and concerted on-the-job harassment. The Board had concluded that the' latter variety of economic action constituted a refusal to bargain collectively in violation of section 8(b)(3); the Court could find no basis for the Board’s ruling within that statutory provision. Neither did the Act permit the Board’s conclusion that the union’s tactics — demonstrations, leafletting, and refusal to cooperate with company rules and policies — were beyond the protection of sections 7 and 8(a)(1) of
when the Board moves in this area, with only § 8(b)(3) for support, it is functioning as an arbiter of the sort of economic weapons the parties can use in seeking to gain acceptance of their bargaining demands.98
The right-to-control test has a legal as well as a factual component. The standard is predicated on the Board’s determination that subcontractors who lack influence over project specifications cannot realistically be the targets of craft unions’ work preservation boycotts and that union pressure in such instances is more logically considered to be aimed at general contractors and engineers who require the use of prefabricated products. When the Board examines the facts surrounding a particular work preservation dispute and concludes that the true object of the union’s action is to-force a change in the project designs of engineers and general contractors, it denies the union’s right to enforce the work preservation clause in contravention of section 8(b)(4)(B). Clearly this scheme bears a close relation to the statutory standards of the National Labor Relations Act, for by factual determinations and legal conclusions well within its province the Board identifies and prohibits economic actions with secondary objects. This role is readily distinguishable from the one the Board assumed in Insurance Agents, where the line drawn between various species of concerted activity was not founded on specific statutory language.
Moreover, the notion that certain types of contractual provisions might be enforceable by lawsuit but not by economic action did not perish with the Sand Door holding when Congress enacted section 8(e). In a remarkably lucid and unequivocal passage of legislative history the Conference Committee which submitted section 8(e) to the Congress announced that construction subcontracting agreements authorized by the proviso to section 8(e) should not be enforceable by strike or boycott:
The committee of conference does not intend that this proviso should be construed so as to change the present state of the law with respect to the validity of this specific type of agreement relating to work to be done at the site of the construction project or to remove the limitations which the present law imposes with respect to such agreements. Picketing to enforce such contracts would be illegal under the Sand Door case (Local 1796, United Brotherhood of Carpenters v. NLRB [357 U.S. 93 ,78 S.Ct. 1011 , 2 L.Ed.2d 1186] (1958)). To the extent' that such agreements are legal today under section 8(b)(4) of the National Labor Relations Act, as amended, the proviso would prevent such legality - from being affected by section 8(e). The proviso applies only to section 8(e) and therefore leaves unaffected the law developed under section 8(b)(4). The Denver Building Trades case and the Moore Drydock cases would remain in full force and effect. The proviso is not intended to limit, change, or modify the present state of the law with respect to picketing at the site of a construction project.99
In Orange Belt District Council of Painters, No. 48 v. NLRB,
*279 [s]econdary subcontracting clauses in the construction industry are lawful, under the proviso to Section 8(e), and economic force may be used to obtain them notwithstanding Section 8(b)(4)(A) . . . . But under Section 8(b)(4)(B) such secondary clauses may be enforced only through lawsuits, and not through economic action.101
The National Woodwork holding did not undermine this proposition; rather the Court determined that primary work preservation agreements properly enforceable under section 8(b)(4) were not prohibited by section 8(e).
The majority opinion conveys a sense that a work preservation clause would be valueless if it were not enforceable by economic action, and argues that surely the Union did not bargain for a nugatory contractual right. But the ALJ has suggested the function of such clauses: they insure that an employer who in fact has an opportunity to assign work traditionally performed by members of the union representing his employees will not voluntarily order prefabricated goods in derogation of the contract term. In fact the work preservation clause may be given greater impact. If the agreement is interpreted to apply to work beyond the control of the subcontractor at the time he signs the subcontract, he might agree to pay to the union in a contract suit the value of traditional work he cannot assign to his employees. Contrary to the majority’s view that the burden of offering this compensation rests on the employer, the union should pursue an appropriate adjustment, resorting to judicial enforcement when necessary. Neither the Supreme Court in Sand Door nor the Congress that enacted section 8(e) found the concept of enforcement by lawsuit to be disrespectful of employee or union interests. Without speculating over the wisdom— or necessity — of such contractual arrangements, we may note that employers gain considerable bidding flexibility by them, and that they promote resolution of work preservation disputes by an orderly legal process. By endorsing this scheme the Board does not “bail out” delinquent employers, but rather serves the legitimate end of contractually appointed work preservation without unnecessary and unlawful economic dislocations.
E. Conclusion
Reduced to its essentials, this case questions the power of the Board (1) to decide that certain kinds of valid contractual provisions cannot be enforced by economic action without prohibited secondary effects and objects, and (2) to draw the line between permissible primary and unlawful secondary activity at the point where subcontractors employing members of particular craft unions
National Woodwork is an inadequate justification for completely abandoning the logic of these earlier rulings. The decision constitutes a “delineation of that degree of proof which establishes a permissible primary boycott but falls short of evidencing the interdicted secondary boycott.”
The majority is not compelled to consider the fact that the result it reaches strips subcontractors of opportunities to bid on projects with prefabrication specifications, divests designers and architects of meaningful control over the details of their projects, and simultaneously increases the costs of construction projects suited to pre-prepared components. But it should not fail to recognize that the boycott it sanctions is both a “sword” and a “shield,”
. National Woodwork Manufacturers Ass’n v. NLRB,
. Here follow the 1947 provisions with the 1959 amendments italicized. Provisions stricken in 1959 appear in brackets.
Sec. 8(b) It shall be an unfair labor practice for a labor organization or its agents—
* * * * * *
(4)(i) to engage in, or to induce or encourage [the employees of] any [employer] individual employed by any person engaged in commerce or in an industry affecting commerce to engage in, a strike or a [concerted] refusal in the course of [their] his employment to use, manufacture, process, transport, or otherwise handle or work on any goods, articles, materials, or commodities or to perform any services; or (ii) to threaten, coerce, or restrain any person engaged in commerce or in an industry affecting commerce, where in either case an object thereof is—
******
(B) forcing or requiring any [employer or self-employed or other] person to cease using, selling, handling, transporting, or otherwise dealing in the products of any other producer, processor, or manufacturer, or to cease doing business with any other person,Provided, That nothing contained in this clause (B) shall be construed to make unlawful, where not otherwise unlawful, any primary strike or primary picketing . (61 Stat. 141, 73 Stat. 542).
.
. J.A. 234; see also J.A. 253.
. J.A. 234.
. The complete units were factory prepiped, tested and guaranteed by Slant/Fin, the manufacturer. J.A. 233, 235.
. The decision of the ALJ stated another possible ground for decision: that he interpreted Rule IX to refer only to “pipe within Hudik’s control and which could be cut on the job.” The ALJ explicitly declined to rely on this conclusion in his ruling. J.A. 237. See also Rule IX at p. 4 supra, and for text of the decision of the ALJ on this point see text at p. 24 infra. Hudik raised the same point initially with the Union agent (Daly) when the issue first arose:
Q. Did you tell Mr. Daly that Rule 9 did not apply to this unit because of the nature of its construction?
A. (Hudik) Yes.
Q. Did you say that was so because the work had been pre-assembled in Slant/Fin’s factory?
A. Yes.
Q. That was the reason why you told Mr. Daly that, because it had been pre-assembled in the Slant/Fin factory?
A. Pre-assembled and pretested.
Q. In the Slant/Fin factory?
A. Correct.
J.A. 167-68.
. “In the instant situation, since Hudik is neither the manufacturer of prepiped units (Slant/Fin) nor is it the engineer and general contractor (Austin) who specified the use of particular prepiped units, it is apparent that the Union’s dispute or problem is with Slant/Fin and Austin. Enforcing a union contract with Hudik to prevent Hudik’s installing prepiped units that were neither manufactured nor specified by Hudik is simply a use of Hudik as an instrumentality or means of exerting pressure against Slant/Fin and Austin. The Union’s real problem and dispute is with the manufacturer of prepiped units and the engineer who specifies that such units are to be used. That Hudik is only a means or instrumentality for exerting pressure against Slant/Fin and Austin with whom the Union has its primary dispute, will appear if we consider two possible situations.
“Example A is where Hudik or similar union subcontractor is invited to bid on a job where prepiped units are to be installed. The Union reminds Hudik of the terms of the union contract requiring on the job piping. Hudik therefore does not bid and does not get the job, or if he does bid and obtains the subcontract, his union employees refuse to install the prepiped units. The construction site, however, in Example A, is in an area where the engineer and general contractor are then able and willing to secure a non-union subcontractor or a subcontractor employing members of a union who are not adverse to installing prepiped units. The job is therefore completed without Hudik and his employees. Assume that this pattern is repeated on other jobs in the area and with the same results. It is clear therefore that in Example A, the Union’s problem and dispute is not with Hudik since Hudik, despite voluntary or involuntary compliance with the union contract, is an ineffective means or instrumentality ‘under all the surrounding circumstances’ for exerting pressure against the manufacturer of prepiped units or the engineer specifying their use. The Union’s problem or dispute is with the last two mentioned parties, not with
“Example B is of course the instant case. The sole difference between A and B is that in the instant case, B, Hudik is an effective means or instrumentality for exerting the economic pressure of the Union against Slant/Fin, the manufacturer, and Austin, the engineer. In Example A Hudik was an ineffective means or instrumentality against the manufacturer and the engineer. The reason for the difference between being an effective or ineffective instrumentality for pressure in the two examples is revealed by considering all the surrounding circumstances. In the instant case, the matter occurs in New York City, where the construction site is in an area where there are no nonunion steamfitters available or no nonunion mechanical contractors; or, if either of the nonunion categories exist, neither Austin, the union general contractor and engineer, nor Hudik, the union subcontractor could or would see them. That is the reason why the union steamfitters, employees of Hudik, by refusing to install Slant/Fin [units] specified by Austin, are able to use Hudik as an effective means or instrumentality for exerting pressure against Slant/Fin and Austin. The true ‘culprits’ and the parties with whom the Union has its dispute are Slant/Fin, who manufactures prepiped units, and Austin, who specified such units as the heating and cooling units for installation in the Norwegian Home. If prepaid units cannot be installed in the large commercial, public, and industrial buildings in the New York area or in other areas effectively organized by the Union and other building trades union, the manufacture[r] will be materially affected and Austin and other engineers and general contractors will not specify their purchase and use in buildings.
“But the fact that in Example A, above, Hudik would be an ineffective means of pressure by the Union against Slant/Fin and Austin, and, in Example B, the instant case, Hudik is an effective means of pressure in view of all the surrounding circumstances, does not alter the fact that in both situations, Hudik is a means or instrumentality and that the Union’s primary dispute is with Slant/Fin and Austin.” [Footnotes omitted.]
J.A. 238 — 40.
.
. The Board’s opinion stated, inter alia:
We agree with the Administrative Law Judge that the Respondent thereby violated*259 Section 8(b)(4)(i) and (ii)(B) of the Act. We note that the refusal of the Respondent to let Hudik’s employees install the climate control units was based on a valid work preservation clause in the agreement with Hudik, the subcontractor, and was for the purpose of preserving work they had traditionally performed. However, Hudik was incapable of assigning its employees this work; such work was never Hudik’s to assign in the first place. Moreover, we note that the Respondent informed Austin, who did not employ employees represented by the Respondent and had no agreement with that Union, that it would not let Hudik install the climate control units involved. Considered together, these facts clearly indicate that the Respondent was exerting prohibited pressure on Hudik with an object of either forcing a change in Austin’s manner of doing business or forcing Hudik to terminate its subcontract with Austin. Since the pressure exerted by the Respondent on Hudik was undertaken for its effect on other neutral employers, this pressure was secondary and prohibited by Section 8(b)(4)(B).
Accordingly, we find that by its conduct the Respondent violated Section 8(b)(4)(i) and (ii)(B) of the Act. [Footnote omitted].
J.A. 254. In a footnote the Board further stated:
In view of our finding that Respondent’s actions were undertaken for a secondary objective, we find it unnecessary to pass upon the Administrative Law Judge’s finding that Austin and Slant/Fin were the primary employers. Hence, we are not deciding herein whether picketing or other actions brought to bear directly against Austin and Slant/Fin would constitute lawful primary activity.
J.A. 254.
. The spirit of the Act is to be found in a combination of (1) the statutory language, (2) the committee proceedings and reports, and (3) the congressional debates. There is no question about the statutory language — it clearly prohibits product boycotts directed to interference in handling or working on articles such as we have here, where the Union seeks to accomplish its objective through secondary pressures. As for the congressional proceedings, National Woodwork notes,
. II Legislative History of the Labor-Management Reporting and Disclosure Act of 1959 (hereafter 1959 Leg.Hist.), 1615.
. Id. at 1707.
. A panel of this court composed of Judges Bastían, Burger (now Chief Justice), and Wright held it was a violation of section 8(b)(4)(B) for a union to strike its immediate employer in an attempt to enforce a provision of its collective bargaining agreement which prohibited the employer from contracting for work where plumbing was “withheld from the plumbing contract by either the owner or general contractor for the purpose of being installed by other than journeymen plumbers. . .” to that case the union contractor (a plumbing subcontractor) had contracted for the inside plumbing and another contractor who employed members of the Laborers’ Union had received the contract for the outside utilities. The collective bargaining provision in that case is even clearer and more direct than the work preservation clause here, but nevertheless there was no dispute that the union strike to enforce its provision violated section 8(b)(4)(B). Local 5, Plumbers & Pipefitters v. NLRB,
. In Local 5, supra, this court stated:
The Board correctly counters with the argument that Sand Door5 disposes of this suggestion. That case teaches us that regardless of the legitimacy of the end sought by the union, it cannot engage in secondary pressure to obtain it. We find nothing in this case which distinguishes it from that rule. Admittedly, clause 32 is not identical to the “hot cargo” provision in Sand Door but that case is not limited to “hot cargo” clauses.
5 Local 1976, United Brotherhood of Carpenters’ etc., Union v. N. L. R. B.,357 U.S. 93 ,78 S.Ct. 1011 ,2 L.Ed.2d 1186 (1958); see also N. L. R. B. v. Bangor Building Trades Council,278 F.2d 287 (1st Cir., 1960).
Id.
. See note 2 supra.
. See National Woodwork,
. The term “illegal boycott” means a concerted refusal, or threat of concerted refusal, by individuals in the course of their employment—
(A) to render services, where an object of the refusal or threat is to force a person to do business or to cease doing business with another person; or
(B) to render services, where an object of the refusal or threat is to force a person to deal with or to cease dealing with a labor organization as the representative of individuals other than themselves; or
(C) to use, install, handle, transport, or otherwise deal with particular articles, materials, or commodities by reason of the origin*263 or proposed destination thereof, or by reason of the character of a prior or proposed future handling thereof, or by reason of the policies or practices of any person (not their, employer) having any direct or indirect relationship thereto.
I 1947 Leg.Hist. 168-69. That the House intended the bill to cover boycotts extending beyond work assignment claims was evident since the bill dealt with such problems as “jurisdictional strikes,” which were also prohibited. Id. at 169, 205.
. Id. at 205.
. Id. at 168, 205.
. Id. at 239 — 40. Cf. note 2 supra.
. I 1947 Leg.Hist. 315 (emphasis added).
. Id. at 548.
. Id. at 407-504, see especially p. 428. The “cease doing business with another person” and the “refusal ... to install [or] handle” provisions were incorporated into the Senate bill almost in haec verba. Id. at 7.
. The Edwards testimony was selected from over 2400 pages of Senate hearings.
. 1 Senate Hearings on S. 55 and S.J.Res. 22, 80th Cong., 1st Sess. 176-204 (1947).
. But see Justice Roberts’ concurring opinion.
. See note 16 supra. This testimony was corroborated by the decision in Allen Bradley,
. 1 Senate Hearings on S. 55; S.J.Res. 22, 80th Cong., 1st Sess. 181 (1947).
. Id. at 187.
. Id. at 183.
. Id. at 188.
. S. Rep. No. 105, 80th Cong., 1st Sess. 22, I 1947 Leg.Hist. 428.
.
. It is settled law that the National Labor Relations Act does not require any employee to cross a primary picket line and that pickets may request him not to cross the picket line (NLRB v. International Rice Milling Company [
H. Rep. No. 741, 86th Cong., 1st Sess. 80, I 1959 Leg.Hist. 838, U.S.Code Cong. & Admin. News 1959, p. 2479.
The purpose of this provision is to make it clear that the changes in section 8(b)(4) do not overrule or qualify the .present rules of law permitting picketing at the site of a primary labor dispute. This provision does not eliminate, restrict, or modify the limitations of picketing at the site of a primary labor dispute that are in existing law. See, for example, NLRB v. Denver Building and Construction Trades Council, et al. (341 U.S. 675 [71 S.Ct. 943 ,95 L.Ed. 1284 ] (1951)); Brotherhood of Painters, Decorators, and Paper Hangers, etc., and Pittsburgh Plate Glass Co., (110 NLRB 455 (1954)); Moore Drydock Co. (81 NLRB 1108 ); Washington Coca Cola Bottling Works, Inc. (107 NLRB 299 (1953)).
H.Conf.Rep. No. 1147, 86th Cong., 1st Sess. 38, I 1959 Leg.Hist. 942, U.S.Code Cong. & Admin.News 1959, p. 2510.
. I 1947 Leg.Hist. 428.
. See especially note 6 supra.
. Local 742, Carpenters v. NLRB,
. Local 636, Plumbers & Pipefitters v. NLRB,
. See Local 5, Plumbers & Pipefitters v. NLRB,
.29 U.S.C. § 158(e) (1970) provides:
(e) It shall be an unfair labor practice for any labor organization and any employer to enter into any contract or agreement, express or implied, whereby such employer ceases or refrains or agrees to cease or refrain from handling, using, selling, transporting or otherwise dealing in any of the products of any other employer, or to cease doing business with any other person, and any contract or agreement entered into heretofore or hereafter containing such an agreement shall be to such extent unenforcible and void: Provided, That nothing in this subsection shall apply to an agreement between a labor organization and an employer in the construction industry relating to the contracting or subcontracting of work to be done at the site of the construction, alteration, painting, or repair of a building, structure, or other work .
.
. See NLRB v. Local 164 IBEW,
. Local 742, Carpenters v. NLRB,
. See text,
. J.A. 233. These facts parallel the situation in National Woodwork. There Frouge, the general contractor for the Naval Capehart Housing Project, exercised dominion over relevant specifications. The significant difference between the cases is evidenced in the ALJ’s conclusion that:
The Government’s specifications for this job with reference to the type of doors required set forth the standards to be followed. However, neither the specifications nor Frouge’s contract with the Navy required the doors to be precut or prefitted or premachined.
.J.A. 237. The ALJ carefully contrasted this situation with the one which obtained in National Woodwork, noting (1) that Frouge “had the choice of using non-premachined or premachined doors, and chose the latter,” and (2) that the union in National Woodwork insisted it would not handle premachined doors. In pointing out that the latter distinction, though “real,” was not a “major basis” of his decision, the ALJ signalled that the former distinction was in fact significant.
. J.A. 240.
. See generally id. at 237, 238.
. Id. at 236.
. Id.
. Id. at 238; see also note 8 supra.
. The significance of the distinction between “effective” and “ineffective” means of exerting pressure escapes the majority, which can only conclude that it is “absolutely irrelevant” to the issue of Hudik’s neutrality. Majority Op.,
I sympathize with the majority’s hesitancy concerning the use of the word “neutral,” and concede that Hudik is not neutral in the sense that it is uninvolved with, or unaffected by, the instant dispute. The source of Hudik’s legal neutrality is the fact that the Union in these circumstances cannot rationally boycott Hudik to secure the right to perform internal piping on the heating and cooling units, without intending to pressure Austin and Slant/Fin, since only Austin and Slant/Fin are capable of acceding to the Union’s demands. Thus Hudik is neutral with respect to the particular remedy of economic action which the Union invoked to redress its grievances. This line of reasoning does not confuse “objects” and “effects” of economic actions, as the majority fears, see Majority Op., 172 U.S.App. D.C. at 240,
. J.A. 238.
. This aspect of the ALJ’s findings is an effective response to the argument that, the Board may not generalize concerning the relative bargaining positions of sub- and general •contractors, but must consider the surrounding circumstances of each individual labor dispute. While the ALJ relies — -and must rely — in part on experience in assessing the ability of Hudik to influence Austin’s prefabrication specifications, he examines the factors which might rebut his presumption that subcontractors cannot directly influence the decision of an engineer or general contractor to use prefabricated products. Contrary to the majority’s insistence that it is virtually impossible to prove the absence of an imputed secondary objective, Majority Op.,
. J.Á. 239.
. Id.
. Id.
. Id. n.10.
. Id.
. Id. at 254.
. Id.
. Brief for the NLRB at 5 n.4; see also Painters District Council No. 20,
. Id.
. See notes 46 & 47 supra.
. The majority argues that “for all relevant analytical purposes the situation of the . employers [in this case and in National Woodwork] is identical.” Majority Op., 172 U.S. App.D.C. at 236,
The realism of this approach lies in its recognition that an employer who simply bids on a contract with specifications which conflict with his own work preservation agreement is not truly “offending”: the economics and practicalities of his occupation leave him little choice. In these circumstances he is a neutral caught between the union on one side and the general contractor and manufacturer on the other.
The majority suggests as another alternative that Hudik and .other subcontractors similarly situated should by prior arrangement offer their employees compensation for traditional work which cannot be performed at jobsite. The short answer to this proposal is that it is not necessary: if the work preservation agreement at issue is construed to reserve to the union all traditional work and not simply that over which the employer has control, then a contractual right to damages enforceable by lawsuit may have accrued to the union. Adjustment by prior arrangement is a desirable solution, but where by ignorance or design an employer enters a contract which denies him the right to preserve traditional work for his employees, judicial enforcement is an established remedy clearly preferable to economic action which violates § 8(b)(4).
. The Board treats the right-to-control test as a standard applicable to the construction industry, and none of the parties cites a case in which the test was applied in a different context.
. Compare Local 636, United Association, and Mechanical Contractors of Detroit,
. Majority Op.,
. Both Justice Brennan’s majority opinion and Justice Harlan’s concurring memorandum in National Woodwork cautioned against judicial interpretations of the NLRA strained to comport with personal economic convictions. Justice Brennan volunteered that “economic and technological factors” militating against “will not handle” clauses “in all circumstances” should be considered by Congress, but insisted that “Congress’ policy has not yet moved to this point . .
.The majority ignores a critical point which validates the Board’s approach: the Board is looking not only at the locus of legal control over disputed work at the time charges are filed, nor only at the predicament of a particular employer and employee, but instead at the locus of power over design specifications in the construction industry in the New York area. Recognizing that the subcontractors who employ members of traditional craft unions lack meaningful input into decisions concerning project specifications, the Board refuses to penalize them for conflicts beyond their control, but does not hesitate to affix responsibility when they voluntarily reassign work which is subject to work preservation agreements. See cases cited at note 68 supra. The ALJ’s construction of Rule IX of Hudik’s collective bargaining agreement with Enterprise to apply only to work which Hudik had discretion to preserve is consonant with this approach. Absent his overview of subcontracting practices in the construction industry, the ALJ could not accurately ascertain an employer’s ability to accede to union demands; with
To hold that the Board cannot generalize from its examination of particular factual situations, that it cannot adopt a rule based on the structure and custom of construction subcontracting, is to reject the benefits of administrative experience and expertise. Like the Supreme Court in National Woodwork, we are confronted with voluminous briefs of amici submitted to demonstrate that prefabrication specifications are both ubiquitous and essential — economically and functionally — to ' the construction of modern buildings. While it is intuitively evident that the meticulous requirements of specialized projects may at times compel the use of prefitted, prefabricated or factory-installed equipment, we cannot extrapolate from the data the amici submit any legal or factual principle concerning work preservation boycotts. But we may note that the Board’s conclusion that general contractors and not subcontractors tend to exercise control over the specification of prefabricated products is not without record support. See, e. g., cases cited at note 68 supra. And this conclusion inevitably influences the Board’s decision as to whose labor policies a boycotting union is attempting to change. Cf. note 55 and accompanying text supra.
.See, e. g„ Majority Op.,
. Discussing the significance of economic interrelationship between the parties to a construction project, a panel of this court noted that “the factors on which the independent contractor finding rests demonstrate that one party does not exercise control over the other in significant respects.” Carpet Layers Local 419 v. NLRB,
. The majority in its footnote 25 states that on remand the Board can examine the contractual relations of the parties to determine “not only the situation the pressured employer finds himself in but also how he came to be in that situation.” This inquiry is one of the surrounding circumstances the Board is urged to consider in assessing innocence, neutrality, and primary status. The majority fails to recognize that the Board has already made precisely such a judgment, that it has determined, contrary to the views of the majority, that to deny subcontractors like Hudik the right to bid where such conflicts exist does in fact “unduly [tie] an employer’s hands concerning managerial discretion.” The Board has concluded that the subcontractor’s hands are tied long before he bids on a general contract with provisions contrary to his work preservation agreement.
Significantly, if the only impediment to Hudik’s ability to preserve work for its employees had been a contractual term, the ALJ’s exami
. J.A. 239.
. Majority Op.,
. The majority notes the facial validity of the ALJ’s conclusion that Hudik cannot preserve work by failing to bid on jobs and secure contracts, but explains that work preservation clauses are in fact efficacious when enforced in concert, since engineers and general contractors will ultimately be forced to eschew prefabrication specifications in order to secure bids from subcontractors.
. A fine distinction may exist between the secondary objects which the statute proscribes and secondary effects of primary action, which the case law tolerates. See, e. g., NLRB v. Local 825, Operating Engineers,
. NLRB v. Denver Building & Construction Trades Council,
. NLRB v. Denver Building & Construction Trades Council,
.
Section 8(b)(4), relating to illegal strikes and boycotts, was amended in conference by striking out the words “for the purpose of” and inserting the clause “where an object thereof is.” Obviously the intent of the conferees was to close any loophole which would prevent the Board from being blocked in giving relief against such illegal activities simply because one of the purposes of such strikes might have been lawful.
93 Cong.Rec. 6859, II 1947 Leg.Hist. 1623. The Supreme Court reiterated the importance of this statement in IBEW v. NLRB,
. Carpet Layers Local 419 v. NLRB,
. Though the ALJ did not articulate this precise conclusion, his determination that the work preservation boycott could only achieve its purpose if it resulted in a modification of the general contractor’s project specifications is a functional equivalent.
. NLRB v. Carpenters, District Council of New Orleans,
. Local 1976, Carpenters & Joiners v. NLRB,
. Id.
. The standard employed by the majority is even more monolithic and unrealistic than the majority’s characterization of the Board’s right-to-control test. For the majority the sole determinant of employer liability to economic action is the existence of a work preservation agreement. This assumption suggests that by acquiring pacts, agreements and contractual provisions, explicit or implicit, which guarantee work to the union, the union is able to immunize itself from liability for economic actions. The equation is, contractual provision plus violation equals legitimate strike. But a realistic appraisal of the construction industry defies this simplistic analysis. Work preservation agreements for crafts are ubiquitous; if
. Local 5, Plumbers & Pipefitters v. NLRB,
.
.
. The case held that while a union could not strike to enforce an employer’s agreement not to handle nonunion goods, voluntary adoption and observance of such a condition was not prohibited by section 8(b)(4)(A).
.
. Id. at 639,
. Elucidating its conclusion that the proviso was prompted by the “close community of interests” on the jobsite, the National Woodwork Court cited the Third Circuit’s opinion in Essex County v. NLRB,
This limited exception was granted apparently in recognition of the problems peculiar to the construction industry, particularly those resulting from sporadic work stoppages occasioned by the traditional refusal of craft unionists to work alongside non-union men on the same project. The exemption does not extend to other agreements such as those relating to subcontracts for supplies and materials to be transported to and delivered on the construction site.
.At the close of its footnote 34 the majority insists that the Board is not authorized to function as an arbiter of the economic weapons respective parties may employ, in order to achieve and maintain what it deems a proper balance between the power of labor and management. This delimitation of Board authority is founded on specific language in NLRB v. Insurance Agents’ Int’l Union,
. Not before us, therefore, is the issue argued by the AFL-CIO in its brief amicus curiae, namely, whether the Board’s “right-to-control doctrine — that employees can never strike against their own employer about a matter over which he lacks the legal power to grant their demand” — is an incorrect rule of law inconsistent with the Court’s decision in Labor Board v. Insurance Agents’ International Union, AFL-CIO,
.
. Id. at 497,
. H.Conf.Rep. No. 1147, 86th Cong., 1st Sess. 39 (1959), U.S.Code Cong. & Admin.News 1959, p. 2511.
.
. Id. at 236,
Both of these cases reflect a situation similar to the present one, for in both the union brought pressure on a subcontractor who was powerless to settle the dispute, as Akron here, in order to affect the purchasing policies of a general contractor. The only significant difference in this case is that the union attempted to influence the subcontracting policies of the general contractor, rather than its purchasing policies. There is nothing in the statute to indicate that this difference should produce a dissimilar result, for in both cases we have a secondary boycott.
(Footnote omitted.) This reasoning supports an analogy between union signatory and work preservation boycotts: both sorts of contract terms have been specifically validated (union signatory by enactment of the section 8(e) construction proviso, work preservation by National Woodwork), yet neither may be enforced where the subcontractor’s lack of control demonstrates the union’s action has a secondary object.
. This determination is not the logical equivalent of the proposition the majority derives from National Woodwork: that work preservation is a valid primary purpose, that work preservation clauses therefore comply with section 8(e), and that their enforcement must satisfy section 8(b)(4). The more precise holding of the case is that section 8(b)(4) and section 8(e) do not prohibit primary activity directed to work preservation; primary activity is in turn defined as pressure levelled against an immediate employer because of some disagreement between boycotting employees and the boycotted employer. Where the Board determines that the operative dispute is in fact with a different employer and that the principal object of the boycott is to change that party’s work policies, the work preservation shibboleth cannot render the economic action permissible under sections 8(b)(4) and 8(e).
. George Koch Sons, Inc. v. NLRB,
. Cf.
. Majority Op.,
. The Court concluded that Congress meant sections 8(e) and 8(b)(4)(B) to prohibit only “secondary” objectives, and that primary work preservation clauses were valid under both provisions of the Act. A subcontractor’s work preservation agreement would clearly be primary if it were given the construction the ALJ placed on Rule IX of Hudik’s collective bargaining agreement with Enterprise: the employer will preserve for the union all its traditional work which he has the ability to assign. This type of provision, innocuous by the standards of section 8(e), nevertheless clearly violates section 8(b)(4) when the union strikes for the right to perform work over which the employer has no effective control.
Even if the ALJ’s interpretation of Rule IX is rejected, a work preservation agreement could satisfy section 8(e) but offend section 8(b)(4) if, for example, it were a lawful primary clause enforced against a neutral employer. Cf.386 U.S. at 632 ,87 S.Ct. at 1262: “In effect Congress, in enacting § 8(b)(4)(A) of the Act [the predecessor of the present section 8(b)(4)(B)], . . . barred as a secondary boycott union activity directed against a neutral employer, including the immediate employer when in fact the activity directed against him was carried on for its effect elsewhere.” The Court noted in National Woodwork that the redrafting of the provision was intended to insure that lawful primary activity would remain legitimate under section 8(b)(4). But although the case validates the concept of primary work preservation', it does not sanction the full panoply of secondary means of enforcing work preservation clauses. Thus a clause which on its face did not constitute an “agreement to cease or refrain from handling any of the products of any other employer” according to the precept of National Woodwork might nevertheless by its enforcement reflect a secondary object of changing the labor policies of a neutral employer.
. George Koch Sons, Inc. v. NLRB,
.
. Cf. National Woodwork:
It is arguable that Congress may have viewed the use of the boycott as a sword as different from labor’s traditional concerns with wages, hours, and working conditions. But the boycott in the present cases was not used as a sword; it was a shield carried solely to preserve the members’ jobs.
