GUSS, DOING BUSINESS AS PHOTO SOUND PRODUCTS MANUFACTURING CO., v. UTAH LABOR RELATIONS BOARD.
No. 280
Supreme Court of the United States
Argued January 16, 1957. - Decided March 25, 1957.
353 U.S. 1
E. R. Callister, Attorney General of Utah, argued the cause for appellee. With him on the brief was Raymond W. Gee, Assistant Attorney General.
Solicitor General Rankin, Theophil C. Kammholz, Stephen Leonard and Dominick L. Manoli filed a brief for the National Labor Relations Board, as amicus curiae, urging affirmance.
A brief of amici curiae was filed for the States of Florida, by Richard W. Ervin, Attorney General; Georgia, by Eugene Cook, Attorney General; Texas, by John Ben Shepperd, Attorney General; Vermont, by Robert T. Stafford, Attorney General; Virginia, by J. Lindsay Almond, Jr., Attorney General; Wyoming, by George F. Guy, Attorney General; and the Wisconsin Employment Relations Board, by Vernon W. Thomson, Attorney General, and Beatrice Lampert, Assistant Attorney General.
Briefs of amici curiae were also filed by Herbert B. Cohen, Attorney General, and Oscar Bortner, Assistant Attorney General, for the Commonwealth of Pennsylvania, and Philip Feldblum for the New York State Labor Relations Board.
MR. CHIEF JUSTICE WARREN delivered the opinion of the Court.
The question presented by this appeal and by No. 41, post, p. 20, and No. 50, post, p. 26, also decided this day, is whether Congress, by vesting in the National Labor
Some background is necessary for an understanding of this problem in federal-state relations and how it assumed its present importance. Since it was first enacted in 1935, the National Labor Relations Act2 has empowered the National Labor Relations Board “to prevent any person from engaging in any unfair labor practice . . . [defined by the Act] affecting commerce.”3 By this language and by the definition of “affecting commerce” elsewhere in the Act,4 Congress meant to reach to the full extent of its power under the Commerce Clause. Labor Board v. Fainblatt, 306 U. S. 601, 606-607. The Board, however, has never exercised the full measure of its jurisdiction. For a number of years, the Board decided case-by-case whether to take jurisdiction. In 1950, concluding that “experience warrants the establishment and announcement of certain standards” to govern the exercise of its jurisdiction, Hollow Tree Lumber Co., 91 N. L. R. B. 635, 636, the Board published standards, largely in terms
How many labor disputes the Board‘s 1954 standards leave in the “twilight zone” between exercised federal jurisdiction and unquestioned state jurisdiction is not known.8 In any case, there has been recently a substantial volume of litigation raising the question stated at the beginning of this opinion, of which this case is an example.9
Appellant, doing business in Salt Lake City, Utah, manufactures specialized photographic equipment for the Air Force on a contract basis. To fulfill his government contracts he purchased materials from outside Utah in an amount “a little less than $50,000.” Finished prod-
“Further proceedings are not warranted, inasmuch as the operations of the Company involved are predominantly local in character, and it does not appear that it would effectuate the policies of the Act to exercise jurisdiction.”
The union thereupon filed substantially the same charges with the Utah Labor Relations Board, pursuant to the Utah Labor Relations Act.11 Appellant urged that the State Board was without jurisdiction of a matter within the jurisdiction of the National Board. The State Board, however, found it had jurisdiction and concluded on the merits that appellant had engaged in unfair labor practices as defined by the Utah Act. It granted relief through a remedial order. On a Writ of Review, the Utah Supreme Court affirmed the decision and order of
On these facts we start from the following uncontroverted premises:
(1) Appellant‘s business affects commerce within the meaning of the National Labor Relations Act and the National Labor Relations Board had jurisdiction. Labor Board v. Fainblatt, supra.
(2) The National Act expressly deals with the conduct charged to appellant which was the basis of the state tribunals’ actions. Therefore, if the National Board had not declined jurisdiction, state action would have been precluded by our decision in Garner v. Teamsters Union, 346 U. S. 485.
(3) The National Board has not entered into any cession agreement with the Utah Board pursuant to § 10 (a) of the National Act.
Section 10 (a) provides:
“The Board is empowered, as hereinafter provided, to prevent any person from engaging in any unfair labor practice (listed in section 8) affecting commerce. This power shall not be affected by any other means of adjustment or prevention that has been or may be established by agreement, law, or otherwise: Provided, That the Board is empowered by agreement with any agency of any State or Territory to cede to such agency jurisdiction over any cases in any industry (other than mining, manufacturing, communications, and transportation except where predominantly local in character) even though such cases may involve labor disputes affecting commerce, unless the provision of the State or Territorial statute applicable to the determination of such cases by such
agency is inconsistent with the corresponding provision of this Act or has received a construction inconsistent therewith.” (Emphasis added.)
The proviso to § 10 (a), italicized in the quotation above, was one of the Taft-Hartley amendments to the National Labor Relations Act. Timing and a reference in one of the committee reports indicate that it was drafted in response to the decision of this Court in Bethlehem Steel Co. v. New York Labor Board, 330 U. S. 767.13 In Bethlehem foremen in an enterprise affecting commerce petitioned the New York State Labor Relations Board for certification as a bargaining unit. At that time the National Board was declining, as a matter of policy, to certify bargaining units composed of foremen. The Court held that the federal policy against certifying foremen‘s units must prevail. However, it took occasion to discuss the efforts of the two boards to avoid conflicts of jurisdiction.
“The National and State Boards have made a commendable effort to avoid conflict in this overlapping state of the statutes. We find nothing in their negotiations, however, which affects either the construction of the federal statute or the question of constitutional power insofar as they are involved in this case, since the National Board made no concession or delegation of power to deal with this subject. The election of the National Board to decline jurisdiction in certain types of cases, for budgetary or other reasons presents a different problem which we do not now decide.” Id., at 776.
“I read . . . [the Court‘s opinion] to mean that it is beyond the power of the National Board to agree with State agencies enforcing laws like the Wagner Act to divide, with due regard to local interests, the domain over which Congress had given the National Board abstract discretion but which, practically, cannot be covered by it alone. If such cooperative agreements between State and National Boards are barred because the power which Congress has granted to the National Board ousted or superseded State authority, I am unable to see how State authority can revive because Congress has seen fit to put the Board on short rations.” Id., at 779.
Thus, if the opinion of the Court did not make manifest, the concurring opinion did, that after Bethlehem there was doubt whether a state board could act either after a formal cession by the National Board or upon a declination of jurisdiction “for budgetary or other reasons.” When we read § 10 (a) against this background we find unconvincing the argument that Congress meant by the proviso only to meet the first problem, i. e., cession of jurisdiction over cases the National Board would otherwise handle.
The proviso is directed at least equally to the type of cases which the Board might decline “for budgetary or other reasons” to hear as to the type of cases it might wish to cede to the States for policy reasons - if, indeed, there is any difference between the two classes. Cases in mining, manufacturing, communications and transportation can be ceded only where the “industry” is “predominantly local in character.” In other industries, which Congress might have considered to be more or less typically local,
“The proviso which has been added to this subsection [§ 10 (a)] permits the National Board to allow State labor-relations boards to take final jurisdiction of cases in border-line industries (i. e., border line insofar as interstate commerce is concerned), provided the State statute conforms to national policy.”14
The Committee minority agreed as to the purpose of the proviso and agreed “with the majority that it is desirable thus to clarify the relations between the National Labor Relations Board and the various agencies which States have set up to handle similar problems.”15
We hold that the proviso to § 10 (a) is the exclusive means whereby States may be enabled to act concerning the matters which Congress has entrusted to the National Labor Relations Board. We find support for our holding in prior cases in this Court. In Amalgamated Assn. of Employees v. Wisconsin Board, 340 U. S. 383, 397-398, the Court said:
“The legislative history of the 1947 Act refers to the decision of this Court in Bethlehem Steel Co. v. New York Labor Board, 330 U. S. 767 (1947), and, in its handling of the problems presented by that case, Congress demonstrated that it knew how to cede jurisdiction to the states. Congress knew full well that its labor legislation ‘preempts the field that the
act covers insofar as commerce within the meaning of the act is concerned’ and demonstrated its ability to spell out with particularity those areas in which it desired state regulation to be operative.” (Footnotes omitted.)
In a footnote to the first sentence quoted above the Court cited § 10 (a) and described its authorization to cede jurisdiction only where the state law is consistent with the national legislation as insuring “that the national labor policy will not be thwarted even in the predominantly local enterprises to which the proviso applies.” Id., n. 23. See also Algoma Plywood & Veneer Co. v. Wisconsin Board, 336 U. S. 301, 313; California v. Zook, 336 U. S. 725, 732.
Our reading of § 10 (a) forecloses the argument based upon such cases as Welch Co. v. New Hampshire, 306 U. S. 79, and Missouri Pacific R. Co. v. Larabee Flour Mills Co., 211 U. S. 612, that “where federal power has been delegated but lies dormant and unexercised,” Bethlehem Steel Co. v. New York Labor Board, supra, at 775, the States’ power to act with respect to matters of local concern is not necessarily superseded. But in each case the question is one of congressional intent. Compare Welch Co. v. New Hampshire, supra, with Napier v. Atlantic Coast Line R. Co., 272 U. S. 605. And here we find not only a general intent to pre-empt the field but also the proviso to § 10 (a), with its inescapable implication of exclusiveness.
We are told by appellee that to deny the State jurisdiction here will create a vast no-man‘s-land, subject to regulation by no agency or court. We are told by appellant that to grant jurisdiction would produce confusion and conflicts with federal policy. Unfortunately, both may be right. We believe, however, that Congress has ex-
Congress is free to change the situation at will. In 1954 the Senate Committee on Labor and Public Welfare recognized the existence of a no-man‘s-land and proposed an amendment which would have empowered state courts and agencies to act upon the National Board‘s declination of jurisdiction.16 The National Labor Relations Board can greatly reduce the area of the no-man‘s-land by reasserting its jurisdiction and, where States have brought their labor laws into conformity with federal policy, by ceding jurisdiction under § 10 (a).17 The testimony given by the Chairman of the Board before the Appropriations Committees shortly before the 1954 revisions of the jurisdictional standards indicates that its reasons for making that change were not basically
The judgment of the Supreme Court of Utah is
Reversed.
MR. JUSTICE WHITTAKER took no part in the consideration or decision of this case.
MR. JUSTICE BURTON, whom MR. JUSTICE CLARK joins, dissenting.*
I believe the Court is mistaken in its interpretation of the proviso which Congress added to § 10 (a) of the National Labor Relations Act in 1947.1
It is my view that the proviso was added merely to make it clear that
The Labor Acts of 1935 and 1947 granted to the Board extensive jurisdiction over labor controversies affecting interstate commerce but neither Act required the Board to assert at all times the full measure of its jurisdiction. In each Act the first sentence of § 10 (a) “empowered,” but did not direct, the Board to prevent unfair labor practices. Likewise, the first sentence of § 10 (b) granted the “power,” instead of imposing the duty, to issue complaints upon receipt of appropriate charges.2 The Board is not a court whose jurisdiction over violations of private rights must be exercised. It is an administrative agency whose function is to adjudicate public rights in a manner that will effectuate the policies of the Act. See Amalgamated Utility Workers v. Consolidated Edison Co., 309 U. S. 261.
From the beginning, budgetary limitations and other administrative considerations have prevented the Board
Unless restricted by the proviso added to § 10 (a), there is little doubt that the States have the necessary power to act in labor controversies within their borders, even when interstate commerce is affected, provided the Federal Government has not occupied the field and the National Board has not taken jurisdiction. Where the Board has
By this decision the Court restricts the power of the States to those labor disputes over which the National Board expressly cedes its jurisdiction to the appropriate state agencies. However, the proviso‘s requirements are so highly restrictive that not a single cession has been made under it.7 The result of this decision is the crea-
The immediate occasion that led to the enactment of the proviso throws light on its proper interpretation. That occasion was this Court‘s decision in the Bethlehem case, supra, where it was held that a State Board did not have jurisdiction to certify a union of foremen as a collective-bargaining agency because the National Board, by asserting general jurisdiction over foremen‘s unions, had occupied the field.8 Although an agreement had been negotiated between the National Board and the State Board ceding jurisdiction over certain labor matters, this Court concluded that the agreement did not cede jurisdiction over foremen‘s unions. Three Justices decried certain overtones they found in the opinion of the Court to the effect that the National Board lacked authority to cede jurisdiction over predominantly local labor matters
While the proviso thus evidenced a congressional purpose to encourage state action, there is no indication that it was intended to wipe out, by implication, the States’ recognized power to act when the National Board declined to take jurisdiction. Neither the language of the proviso nor its legislative history discloses a conscious congressional intent to eliminate state authority when the National Board has declined to act. Unequivocal legislative history would be necessary to sustain a conclusion that Congress intended such a drastic result. In the Bethlehem case, supra, the Court did not question the authority of the States to act when the Board, for budgetary or other administrative reasons, declined to exercise its full jurisdiction. The Court expressly refrained from passing on that question9 but three Justices said that they found in the opinion of the Court a “suggestion that the National Board‘s declination of jurisdiction ‘in certain types of cases, for budgetary or other reasons’ might leave room for the State in those situations . . . .” 330 U. S., at 778.
As a matter of fact, in 1947, nearly 40 States lacked labor agencies and comprehensive labor legislation.10
The Court‘s interpretation of the proviso is contrary to the established practice of the States and of the National Board, as well as to the considered position taken by the Board as amicus curiae. Congress has demonstrated a continuing and deep interest in providing governmental machinery for handling labor controversies. The creation by it of a large, unsupervised no man‘s land flies in the face of that policy. Due regard for our federal system suggests that all doubts on this score should be resolved in favor of a conclusion that would not leave the States
“Since Congress can, if it chooses, entirely displace the States to the full extent of the far-reaching Commerce Clause, Congress needs no help from generous judicial implications to achieve the supersession of State authority. To construe federal legislation so as not needlessly to forbid preexisting State authority is to respect our federal system. Any indulgence in construction should be in favor of the States, because Congress can speak with drastic clarity whenever it chooses to assure full federal authority, completely displacing the States.” 330 U. S., at 780.
I would sustain the jurisdiction of the respective States in these cases.
