Local 742, United Brotherhood of Carpenters and Joiners of America v. National Labor Relations Board, J. L. Simmons Company, IntervenorLocal 742, United Brotherhood of Carpenters and Joiners of America v. National Labor Relations Board, J. L. Simmons Company, Intervenor
As critical, as it is subtle and difficult, is the distinction in labor law between “primary” and “secondary” activity. It is one that must be drawn by the National Labor Relations Board and reviewing courts in determining whether a labor union has violated the statutory ban on secondary boycotts. National Labor Relations Act § 8(b)(4)(B),
In its initial decision in this case, the Board applied its right to control test and
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found the union in violation of Section 8(b)(4)(B).
While the case was pending, the court agreed to hear en bane another case,
Enterprise Association, Local 638 v. NLRB,
The case sub judice thus presents this court with its first post-Enterprise opportunity to review the Board’s analysis of “all the surrounding circumstances” in a case that would otherwise have been determined on the basis of the right to control test. We conclude that the Board’s findings are not supported by substantial evidence in the record, and that its order under review must be set aside.
I
In July, 1966, the J. L. Simmons Co., Inc. (Simmons) signed a contract with the Decatur and Macon County Hospital Association (Hospital Association) for the purchase of materials for and the construction of additions to the Hospital Association’s Decatur, Illinois facilities. Simmons, as the general contractor, hired a number of Local 742 carpenters to perform appropriate carpenter duties on the project. 3 At the time the contract was signed, it called for installation of several hundred wood doors, 4 a task that might have been expected to provide considerable work for the carpenters since wood door installation traditionally involves *688 prior preparation (trimming, cutting, routing, mortising) as well as actually hanging the doors. 5
The Hospital Association, however, expressly reserved in the contract the option to switch to more expensive premachined plastic-clad doors if adequate financing became available. On August 15, 1966, the Hospital Association and Simmons agreed to substitute premachined plastic-clad doors for the originally specified wood doors. And in mid-November of 1967, approximately eighty of the premachined plastic-clad doors arrived on the construction site.
Simmons apparently recognized that installation of factory prepared doors would cause some controversy with the union, for Simmons wrote to its attorneys on November 18, 1967 concerning these premachined doors and “the Philadelphia precut door case,” obviously referring to National Woodwork Manufacturers Association, supra. Meanwhile, one of the members of Local 742 brought the premachined doors to the attention of John Foreman, business representative of Local 742. Foreman consulted the union’s attorney, who advised Foreman that the union had “the right to refuse to install these doors [to] protect the dimunition [sic] of the bargaining unit,” and that the union should offer to install the eighty doors if Simmons would agree to cancel the balance of the order.
Pursuant to this advice, Foreman met with Neal, Vice-President of Simmons, on December 1, 1967 to discuss installation of the factory prepared doors. Foreman argued at the meeting that the union carpenters had been deprived of bargaining unit work and that the door preparation was being done by factory carpenters employed at a lower wage than Local 742 carpenters. Neal argued that Simmons had “no control” over choice of the doors since the contract had specified premachined plastic-clad doors. Neal also informed Foreman that the contract required a lifetime guarantee on all plastic-clad doors, and that the supplier of the doors refused to give more than a one-year guarantee on any plastic-clad door that had been prepared or adjusted at the jobsite. 6 Foreman and Neal failed to resolve the controversy, and they decided to leave settlement of the issue up to their attorneys.
On December 11, 1967, Simmons’s job superintendent asked some Local 742 carpenters to install premachined doors in the intensive care unit of the building. The carpenters refused, and later that day the attorney for Simmons called the attorney for the union concerning the concerted refusal to hang the doors. The union’s attorney, after expressing surprise upon learning from Simmons’s attorney that the contract specified premachined doors, 7 stated that *689 the union did not intend a product boycott. The attorney for Simmons then apparently rejected an offer by the union’s attorney calling for installation of all the premachined doors upon payment of premium pay to the carpenters by Simmons. On December 15,1967, Simmons filed the unfair labor practice charges that are the subject of the instant case. With the legal issues before the Board for resolution, Foreman eventually authorized the Local 742 carpenters to begin installing the premachined doors. 8
II
Section 8(b)(4)(B) bars “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.”
National Woodwork Manufacturers Association
v.
NLRB, supra,
The Board concluded that there was “scant evidence that a primary dispute existed over ‘genuine work preservation’,” but that there was substantial evidence to establish a secondary purpose in the union’s refusal to install premachined doors.
A. The Evidence Concerning a Work Preservation Objective.
We begin with the Board’s findings with respect to the absence of a primary work preservation objective. The Board noted that there is “no direct evidence that plastic-clad doors have ever, much less traditionally, been installed” by members of Local 742.
But even if we assume that the Board was correct in concluding that there was no evidence that carpenters had ever prepared plastic-clad doors for installation, we would not necessarily conclude that preparation of such doors involved other than traditional unit work. The question is not whether carpenters have ever worked on plastic-clad doors before, but whether the work involved in preparing plastic-clad doors for installation is the
type
of unit work which carpenters have traditionally performed.
10
“Activity . . . which directly protects]
fairly claimable
jobs [is] primary under the Act.”
Meat and Highway Drivers, Local 710
v.
NLRB,
118 U.S. App.D.C. 287,
The evidence in this record indicates that the tasks and skills involved in the preparation of plastic-clad doors are closely related to those involved in traditional carpenter preparation of wood doors.
11
In fact, according to the manufacturer of the plastic-clad doors involved in this case, a “qualified craftsman with the appropriate tools” would have no difficulty in preparing plastic-clad doors at the jobsite for final installation.
12
This evidence, combined with the fact that carpenters had apparently installed non-premachined plastic-clad doors on other projects, led the Trial Examiner to
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find that the work of preparing plastic-clad doors for installation is the “historical and traditional unit work of carpenters at the jobsite.”
13
In rejecting this finding by the Trial Examiner, the Board stressed that there was undisputed record evidence indicating that members of Local 742 had on one prior occasion installed without objection approximately twelve to twenty plastic-clad doors for a construction company other than Simmons. The Board failed to note, however, that the preparation was apparently completed without the union’s knowledge. Moreover, we are unwilling to hold that one incident almost four years earlier involving installation of only twenty premachined plastic-clad doors constitutes a waiver of Local 742’s work preservation claim.
The Board also emphasized that there is no contract clause guaranteeing to the carpenters the preparation work on doors of any material, and no evidence that such a work preservation clause had ever been discussed in contract negotiations between the parties. We agree with dissenting member Fanning that we can attach “no great significance” to the absence of a specific contract clause covering preparation of plastic-clad doors “in light of the facts (1) that there is no disagreement that the work in dispute, if to be done on
wood
doors, traditionally has been done by the Union’s members on the jobsite and (2) that there is no contract clause governing the handling of this work on wood doors either . .”
A review of the entire record — rather than just the facts isolated by the Board — makes it even more difficult to sustain the Board’s conclusion that there was little evidence to indicate a work preservation objective. On numerous occasions union officials discussed the premachined door issue with representatives of Simmons in purely work preservation terms.
15
And, more important, the union offered Simmons a compromise under which the members of Local 742 would install the premachined doors in exchange for premium rates of
*692
pay.
16
Since maintenance of the income level of its members is presumably the objective behind union work preservation efforts, evidence of the proposed compromise is indicative of a primary work preservation intent.
See Enterprise Association, Local 638 v. NLRB, supra,
B. Evidence Concerning Secondary Objectives.
Of course, all that is necessary to find a violation of Section 8(b)(4)(B) is that
“an
objective of the union’s secondary action, although
not necessarily the only objective,
is to force the secondary employer to cease doing business with the primary party.”
Local 419, Carpet Layers v. NLRB,
In the portion of its supplemental opinion dealing with Local 742’s alleged secondary objectives, the Board first considered Simmons’s lack of “control” over the assignment of the disputed work, noting that it still “deem[s] highly relevant to a determination of objective the question as to whether the struck or picketed employer has any power to grant the union’s demands.”
Although the issue of the validity of the Board’s
prima facie
inference approach has not previously been squarely presented to this court, we did have an opportunity to comment on that approach, in the course of our en banc opinion in
Enterprise
and disapproved it in no uncertain terms: “[W]e find that, given the virtual impossibility of proving the
lack oí
the imputed secondary objective, this ‘prima facie’ approach in effect constitutes the same old
per se
test which we have condemned in our prior opinions and which contravenes the rationale and spirit of
National Woodwork.”
In reviewing the totality of the circumstances in this case, the Board claims to have found such “other evidence” of illegal secondary objectives. The first piece of “further substantiation” mentioned in the Board’s supplemental opinion is that “Simmons was without power to fulfill the desires of the Union to perform the work” and that it was thus “totally impossible for Simmons to carry out its responsibility to install the specified product, as guaranteed by the supplier, without either forcing the Hospital Association and the supplier to change the substance of their agreement as to guarantees — or else to effectuate a ces
*693
sation of business.”
The second item of “further substantiation” noted by the Board was the fact that both Local 742 and its parent international union had a policy “not to install precut doors,” which the Board considered “far more indicative of an objective directed at overall cessation of purchases from neutral manufacturers than at a specific primary dispute between the contractor here and a unit of employees seeking to achieve a desired set of working conditions from their primary employer.”
Finally, the Board concluded that the union’s illegal secondary objectives were “further fleshed out” by evidence that the union’s business representative had made statements to the representatives of Simmons and to a newspaper reporter expressing concern over the “substandard” wages paid to the employees of the manufacturer of the premachined doors.
First, Foreman’s statements concerning the wages paid to employees of Anderson must be read in light of the fact that the contract governing relations between Simmons and Local 742 contained a subcontracting clause that prohibited Simmons from subcontracting out unit work unless the subcontractor observed the equivalent of union wages. Foreman testified that he discussed the wages received by employees of Anderson only to make it clear that he thought that Simmons was violating this union standards clause. Such clauses are presumptively legal, and enforcement of the clause to preserve the work and standards for which the union has bargained is protected primary activity.
Meat & Highway Drivers, Local 710 v. NLRB, supra,
Second, there is evidence in the record which indicates that Local 742 and other sister locals of the United Brotherhood of Carpenters had on prior occasions installed doors supplied by Anderson. In fact, the record indicates that on a prior Simmons project Local 742 had installed nonpremachined plastic-clad doors supplied by Anderson. There is simply nothing in the record to indicate any change in this willingness of Local 742 and its sister locals to install Anderson’s nonpremachined doors. In this dispute, Local 742 merely insisted that Simmons cancel the balance of the order of premachined doors; the union never so much as even hinted that Simmons should replace those doors with nonpremachined doors supplied by a manufacturer other than Anderson. Indeed, Local 742 expressly noted that it was willing to install plastic-clad doors that had been bevelled at the Anderson factory despite the fact that this task is one which has traditionally been preformed on wood doors by carpenters at the jobsite. 18 This willingness to install both wood and plastic-clad doors that are supplied but not premachined by Anderson is no doubt influenced by the fact that doors manufactured by Anderson carry the United Brotherhood of Carpenters union label.
As a final matter, we stress that the Board was in error when it stated that “Simmons was without power to fulfill the desires of the Union to perform the work,”
It is our view that the willingness of the union to install the premachined doors in exchange for a wage premium — a willingness that was communicated to Simmons at the very start of the controversy over installation — substantially undercuts the Board’s conclusion that the record indicates *695 “union objectives elsewhere.” 20 The facts of this case simply do not support a conclusion that “there is no possibility that the struck or picketed or threatened employer can resolve the dispute except by either forcing a secondary independently owned and operated business to take some action or by [sic] ceasing to do business with some other entity . . . .” Id. Indeed, resolution of the dispute through negotiation of a wage premium would have enabled the union to achieve its work preservation goal without any direct impact on employers other than Simmons. Surely the refusal of Simmons even to enter negotiations on the wage premium issue does not justify the Board’s failure to explain its finding of “union objectives elsewhere” given evidence of the union’s willingness to negotiate.
Ill
We concluded our en banc opinion in
Enterprise
by noting that although “[t]he Board may fashion its own formulations as to the relevance of certain facts to
National Woodwork’s
test for distinguishing primary from secondary activity,” it may not “transform that test, directly or indirectly, into a vehicle for subverting the congressional purpose by focusing on only one among many potentially relevant factors.”
It is so ordered.
Notes
.
Local 742, Carpenters v. NLRB, supra; Local 636, Plumbers & Pipefitters v. NLRB,
139 U.S. App.D.C. 165,
.
Western Monolithics Concrete Prods., Inc. v. NLRB,
. At the time of the project, Simmons had no direct contractual relationship with Local 742. Simmons did have a contract, however, with the International United Brotherhood of Carpenters and Joiners of America, Local 742’s parent international union.
. The original specifications issued to interested bidders by the Hospital Association’s architect included a provision for installation of premachined plastic-clad doors and a “deduct alternate” that gave the Hospital Association the option to replace the plastic-clad doors with wood doors. In order to qualify for certain *688 federal grant monies by lowering the price of the project, the Hospital Association’s architect negotiated with Simmons, the lowest bidder, to provide for acceptance of the wood door option. Thus, although the original specifications called for installation of premachined plastic-clad doors, the initial contract called for installation of wood doors. See App. at 31-35, 123-24.
. There is some disagreement over whether the job specifications (see App. at 159-62) called for premachined wood doors as opposed to blank wood doors to be prepared at the jobsite. Both Simmons and the Trial Examiner take the position that the wood doors were not to be premachined. See
. The door supplier generally gives a one-year guarantee on blank wood doors — that is, wood doors prepared at the jobsite. See App. at 41. The record is not entirely clear as to whether this supplier will give a life-time guarantee on premachined wood doors. See App. at 39, 41.
. No doubt the attorney for the union realized that the union could no longer rely squarely on
National Woodwork Manufacturers Association v. NLRB, supra,
since the Supreme Court expressly noted that it did not have before it the issue “whether the Board’s ‘right-to-control
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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 . . .
Labor Board v. Insurance Agents’ International Union,
.During December of 1967, Local 742 carpenters had installed several premachined doors in the hospital’s cardiac intensive care unit because of the urgent need to have that part of the facility completed as soon as possible. App. at 70, 86.
. Neal tried to distinguish the Carbondale project by telling Foreman that the specifications on that job required only a one-year guarantee on doors. App. at 68. Since the doors installed on that project were plastic-faced (plastic on both sides of the door) but not plastic-edged, a one-year guarantee is all that the supplier would give; the supplier reserves its life-time guarantee for completely plastic-clad premachined doors. App. at 41. But see note 6 supra. Although specifications concerning the scope of the guarantee are relevant to the right to control factor, we stress that they have no bearing on the question of the scope of unit work. There is simply nothing in the record that indicates that preparation of completely plastic-clad doors requires skills different from or in addition to those involved in the preparation of plastic-faced doors. But see note 13 infra. The Carbondale project is thus one piece of evidence indicating that the work involved in preparing plastic-clad doors for installation is the type of work traditionally performed by carpenters.
. We addressed a somewhat similar question in our en banc opinion in
Enterprise.
The argument was made in that case that unions, when they insist that a subcontracting employer either not bid on a contract or, if he does bid, compensate them for work lost due to prefabrication, are pursuing work
acquisition
rather than work
preservation.
The court explicitly rejected that argument: “[B]y the very nature of subcontract bidding, a subcontractor will always be acquiring work when he bids on a project; the characterization of union activity as having a work preservation objective must therefore depend on whether it is the
type
of unit work which the employees have traditionally performed, not whether they actually performed the particular work in question.”
. Plastic-clad doors are essentially wood doors covered with plastic. Preparation of such doors for installation certainly seems to be more like the type of work involved in preparing wood doors when the type involved in preparing metal doors, a task which the carpenters have not claimed as traditional unit work. App. at 60.
. Indeed, there is some evidence in the record which indicates that Local 742 carpenters had reprepared several of the premachined plastic-clad doors in order to install them properly. App. at 109-14. Simmons did not authorize this work by the carpenters, and subsequently ordered the carpenters to set aside rather than reprepare any door that did not fit properly. App. at 111. The reason for this order is not made explicit, but a reading of the entire record suggests that Simmons was concerned that the manufacturer would refuse to issue a life-time guarantee on the doors, and not that the carpenters were unable to do the work efficiently.
. Although the Trial Examiner concluded that “bevelling, routing, mortising, and cutting for length” involved traditional unit work, Local 742 has decided not to claim the task of bevelling plastic-clad doors. The union apparently recognizes that plastic-clad doors must be bevelled before plastic strips are attached by heat and pressure to the edges of the door, and that the carpenters do not have the necessary equipment at the jobsite to attach the plastic edges. Consequently, they are willing to install doors that have been bevelled at the factory. See Supp.App. at 9-10.
Plastic strips are not attached to the tops and bottoms of the plastic-clad doors, and once the doors have been cut for length the tops and bottoms are sealed by brushing on a sealant, a task that can be performed at the jobsite. See Supp.App. for the Board at 10. But the carpenters apparently do not claim the task of cutting the doors for length. Supp.App. at 21.
.
See
Local 742,
Carpenters v. NLRB, supra,
If the presence or absence of a specific work preservation agreement is to make a difference, it can only be as one of many “surrounding circumstances” used to determine what the union’s objective was. It may be, for example, that when the union acts to enforce a specific clause, its objective more clearly relates to its labor relations with the primary employer. But the absence of such a specific clause is obviously not enough by itself to indicate a secondary objective relating to another employer.
(Emphasis in original.)
. E. g., App. at 69 (Simmons Vice-President Neal testified that Foreman told him that the carpenters “had been denied the work of prefitting and premachining these doors for hardware”); App. at 149-50 (Foreman indicated that he told Neal at the December 1 meeting that “the work that had been done on the doors at the mill . . . was work that had been done in the past exclusively by members of [the] bargaining unit” and that “it was [Neal’s] responsibility to tell the mill ... to stop doing [the union’s] work”); App. at 101 (the attorney for the union stated that he advised Foreman to tell Neal that the carpenters would not hang the doors “because it was bargaining unit work”).
. App. at 54;
. We note parenthetically that a union policy against installation of all precut doors is more consistent with a finding of a primary work preservation objective than is a union policy of refusing to install only those precut doors supplied by particular manufacturers.
See Enterprise Association, Local 638 v. NLRB, supra,
. See note 13 supra.
. This case differs in this important respect from the Enterprise case. In his Petition for a Writ of Certiorari in the latter case, the Solicitor General argues to the Court that the picketed employer “had available only two courses of action: it either could have induced [the general contractor] to change its requirements and specifications for the job, or failing that, could have terminated its subcontract with [the general contractor].” Petition at 12. He reaches that conclusion because in his view there was no indication that the union in Enterprise would have been content if the subcon-, tractor had paid the union members premium pay for working on prefabricated units. Consequently, the Solicitor General takes the position that “[t]here is no occasion [for the Supreme Court] to consider whether there would have been a violation of Section 8(b)(4)(B) had the union merely demanded compensation from the [struck employer].” Id. at 12 n. 7. The case sub judice raises the precise question bearing on the existence vel non of a violation which, according to the Solicitor General, is not present in Enterprise.
. Subsequent to the filing of the unfair labor practice charge by Simmons, the union renewed its compromise suggestion concerning premium rates of pay. The union indicated that it would be willing to hang the doors during the pendency of the unfair labor practice charge if Simmons would agree either to pay a specific premium or to negotiate a wage premium in the event the union prevailed in the unfair labor practice charge proceeding. It was only after Simmons failed to respond to these proposals that the union members began installing the doors. See text at note 8 supra.