NATIONAL LABOR RELATIONS BOARD v. BROWN ET AL., DBA BROWN FOOD STORE, ET AL.
No. 7
Supreme Court of the United States
Argued January 19, 1965.—Decided March 29, 1965.
380 U.S. 278
William L. Keller argued the cause for respondents. With him on the brief was Allen Butler.
S. G. Lippman and Tim L. Bornstein filed a brief for the Retail Clerks International Association, as amicus curiae, urging reversal.
Joseph M. McLaughlin and Frederick A. Morgan filed a brief for Food Employers Council, Inc., et al., as amici curiae, urging affirmance.
MR. JUSTICE BRENNAN delivered the opinion of the Court.
The respondents, who are members of a multiemployer bargaining group, locked out their employees in response
Five operators of six retail food stores in Carlsbad, New Mexico, make up the employer group. The stores had bargained successfully on a group basis for many years with Local 462 of the Retail Clerks International Association. Negotiations for a new collective-bargaining agreement to replace the expiring one began in January 1960. Agreement was reached by mid-February on all
The Board and the Court of Appeals agreed that the case was to be decided in light of our decision in the so-called Buffalo Linen case, Labor Board v. Truck Drivers Union, 353 U. S. 87. There we sustained the Board‘s finding that, in the absence of specific proof of unlawful motivation, the use of a lockout by members of a multiemployer bargaining unit in response to a whipsaw strike did
The Board‘s decision does not rest upon independent evidence that the respondents acted either out of hostility toward the Local or in reprisal for the whipsaw strike. It rests upon the Board‘s appraisal that the respondents’ conduct carried its own indicia of unlawful intent, thereby establishing, without more, that the conduct constituted an unfair labor practice. It was disagreement with this appraisal, which we share, that led the Court of Appeals to refuse to enforce the Board‘s order.
It is true that the Board need not inquire into employer motivation to support a finding of an unfair labor practice where the employer conduct is demonstrably destructive of employee rights and is not justified by the service of significant or important business ends. See, e. g., Labor
We begin with the proposition that the Act does not constitute the Board as an “arbiter of the sort of economic weapons the parties can use in seeking to gain acceptance of their bargaining demands.” Labor Board v. Insurance Agents, 361 U. S. 477, 497. In the absence of proof of unlawful motivation, there are many economic weapons which an employer may use that either interfere in some measure with concerted employee activities, or which are in some degree discriminatory and discourage union membership, and yet the use of such economic weapons does not constitute conduct that is within the prohibition of either
In the circumstances of this case, we do not see how the continued operations of respondents and their use of temporary replacements imply hostile motivation any more than the lockout itself; nor do we see how they are inherently more destructive of employee rights. Rather, the compelling inference is that this was all part and parcel of respondents’ defensive measure to preserve the multiemployer group in the face of the whipsaw strike. Since Food Jet legitimately continued business operations, it is only reasonable to regard respondents’ action as evincing concern that the integrity of the employer group was threatened unless they also managed to stay open for business during the lockout. For with Food Jet open for business and respondents’ stores closed, the prospect that the whipsaw strike would succeed in breaking up the employer association was not at all fanciful. The retail food industry is very competitive and repetitive patronage is highly important. Faced with the prospect of a loss of patronage to Food Jet, it is logical that respondents should have been concerned that one or more of their number might bolt the group and come to terms with the Local, thus destroying the common front essential to multiemployer bargaining. The Court of Appeals correctly pictured the respondents’ dilemma in saying,
Nor are we persuaded by the Board‘s argument that justification for the inference of hostile motivation appears in the respondents’ use of temporary employees rather than some of the regular employees. It is not commonsense, we think, to say that the regular employees were “willing to work at the employers’ terms.” 137 N. L. R. B., at 76. It seems probable that this “willingness” was motivated as much by their understandable desire to further the objective of the whipsaw strike—to break through the employers’ united front by forcing Food Jet to accept the Local‘s terms—as it was by a desire to work for the employers under the existing unacceptable terms. As the Board‘s dissenting members put it, “These employees are willing only to receive wages while their brethren in the rest of the associationwide unit are exerting whipsaw pressure on one employer to gain benefits that will ultimately accrue to all employees in the associationwide unit, including those here locked out.” 137 N. L. R. B., at 78. Moreover, the course of action to which the Board would limit the respondents would force them into the position of aiding and abetting the success of the whipsaw strike and consequently would render “largely illusory,” 137 N. L. R. B., at 78-79, the right of lockout recognized by Buffalo Linen; the right would be meaningless if barred to nonstruck stores that find it necessary to operate because the struck store does so.
Nor does the record show any basis for concluding that respondents violated
We recognize that, analogous to the determination of unfair practices under
We agree with the Court of Appeals that respondents’ conduct here clearly fits into the latter category, where actual subjective intent is determinative, and where the Board must find from evidence independent of the mere conduct involved that the conduct was primarily motivated by an antiunion animus. While the use of temporary nonunion personnel in preference to the locked-out union members is discriminatory, we think that any resulting tendency to discourage union membership is comparatively remote, and that this use of temporary personnel constitutes a measure reasonably adapted to the effectuation of a legitimate business end. Here discontent on the part of the Local‘s membership in all likelihood is attributable largely to the fact that the membership was locked out as the result of the Local‘s whipsaw stratagem. But the lockout itself is concededly within the rule of Buffalo Linen. We think that the added dissatisfaction, with its resultant pressure on membership, attributable to the fact that the nonstruck employers remain in business with temporary replacements is comparatively insubstantial. First, the replacements were expressly used for the duration of the labor dispute only; thus, the displaced employees could not have looked upon the replacements as threatening their jobs. At most the union would be forced to capitulate and return its members to work on terms which, while not as desirable as hoped for, were still better than under the old contract.
When the resulting harm to employee rights is thus comparatively slight, and a substantial and legitimate business end is served, the employers’ conduct is prima facie lawful. Under these circumstances the finding of an unfair labor practice under
It is argued, finally, that the Board‘s decision is within the area of its expert judgment and that, in setting it aside, the Court of Appeals exceeded the authorized scope of judicial review. This proposition rests upon our statement in Buffalo Linen that in reconciling the conflicting interests of labor and management the Board‘s determination is to be subjected to “limited judicial review.” 353 U. S., at 96. When we used the phrase “limited judicial review” we did not mean that the balance struck by the Board is immune from judicial examination and reversal
Courts must, of course, set aside Board decisions which rest on an “erroneous legal foundation.” Labor Board v. Babcock & Wilcox Co., supra, at 112-113. Congress has not given the Board untrammelled authority to catalogue which economic devices shall be deemed freighted with indicia of unlawful intent. Labor Board v. Insurance Agents, supra, at 498. In determining here that the respondents’ conduct carried its own badge of improper motive, the Board‘s decision, for the reasons stated, misapplied the criteria governing the application of
Affirmed.
MR. JUSTICE GOLDBERG, whom THE CHIEF JUSTICE joins, concurring.
I agree with the Court that, given the Buffalo Linen case, Labor Board v. Truck Drivers Union, 353 U. S. 87,
As the Court seems to recognize, ante, p. 292, n. 6, this would be an entirely different case had the nonstruck employers locked out their employees and hired permanent replacements even if the struck employer had exercised his right to hire permanent replacements under the doctrine of Labor Board v. Mackay Radio & Telegraph Co., 304 U. S. 333. If the Labor Board determined in such a case that the interference with employee rights was not justified by the legitimate economic interests of the employer, the Labor Board determination might well be controlling. See my concurring opinion in American Ship Building Co. v. Labor Board, post, at 327. Cf. Labor Board v. Erie Resistor Corp., 373 U. S. 221. There would be grave doubts as to whether the act of locking out employees and hiring permanent replacements is justified by any legitimate interest of the nonstruck employers, for Buffalo Linen makes clear that the test in such a situation is not whether parity is achieved between struck and nonstruck employers, but, rather, whether the nonstruck employers’ actions are necessary to counteract the whipsaw effects of the strike and to preserve the em-
MR. JUSTICE WHITE, dissenting.
I cannot agree with the severe restrictions which the Court imposes on the Board‘s role in determining the employer conduct banned by
The Court reasons that Buffalo Linen gave the nonstruck employer in a multiemployer unit a “right” to lock out whenever a member of the unit is struck so that a parity of economic advantage or disadvantage between the struck and nonstruck employers can be maintained. In order to maintain parity where the struck employer hires replacements, the nonstruck employers must also be free to hire replacements, lest the right to lock out to protect the unit be illusory. And they need not offer these jobs to the locked-out employees desiring to work, lest the parity between the struck and nonstruck employers be lost and the right to lock out be meaningless. If this reasoning is sound, the nonstruck employers can not only lock out employees who belong to the union because of their union membership but also hire permanent as well as temporary nonunion replacements whenever the struck employer hires such replacements, for parity may well so require. But I cannot accept this reasoning.
One, Buffalo Linen established no unqualified “right” of employers in a multiemployer unit to lock out. Rather it held that the Board was well within the policy and
Two, the threat to the integrity of the multiemployer unit, the consideration that was decisive in Buffalo Linen, is obviously very different where the struck employer continues operations with replacements; it certainly cannot be assumed that the struck employer operating with replacements is at the same disadvantage vis-à-vis the nonstruck employers as the employer in Buffalo Linen whose operations were totally shut down by the union. Indeed, there was no showing here that the struck employer was substantially disadvantaged at all, and the Board found that there was “no economic necessity . . . for the other members shutting down.” 137 N. L. R. B. 73, at 77. The Court makes irrelevant the consideration that justified the lockout in Buffalo Linen—the effect of the single employer strike on the unit—on the faulty premise that Buffalo Linen established the nonstruck members’ right to lock out. Neither the Board nor this Court said the right to lock out ineluctably follows from a single employer strike.
Three, the disparity between the struck employer who resumes operations and the nonstruck employers who choose to lock out to maintain a united front is caused by the unilateral action of one of the employer members of the unit and not by the union‘s whipsawing tactic. The integrity of the multiemployer unit may be important,
Four, the Court asserts that the right of nonstruck employers to hire temporary replacements, and to refuse to hire union men, is but a concomitant of the right to lock out to preserve the multiemployer group. This sanctification of the multiemployer unit ignores the fundamental rule that an employer may not displace union members with nonunion members solely on account of union membership, the prototype of discrimination under
Finally, I cannot agree with the Court‘s fundamental premise on which its balance of rights is founded: that a lockout followed by the hiring of nonunion men to operate the plant has but a “slight” tendency to discourage union membership, which includes participation in union activities, Radio Officers’ Union v. Labor Board, 347 U. S. 17, and to impinge on concerted activity generally. This proposition overturns the Board‘s long-held views on the effect of lockouts and dismissal of union members. Moreover, it is difficult to fathom the logic or industrial experience which on the one hand dictates that a guarantee to strike replacements that they will not be laid off after a strike is “inherently destructive of employee interests,” although based on a legitimate and important business justification, Erie Resistor, 373 U. S. 221, and yet at the same time dictates that the dismissal of and refusal to hire nonstriking union members, who desire to work, because other union members working for a different employer have struck, have but a slight unimportant inhibiting effect on the affiliation with the union and on concerted activities. I think the Board‘s finding that this activity substantially burdens concerted activities and discourages union membership is far more consistent with Erie Resistor and industrial realities. Hence the Board
“Although the Act protects the right of the employees to strike in support of their demands, this protection is not so absolute as to deny self-help by employers when legitimate interests of employees and employers collide. Conflict may arise, for example, between the right to strike and the interest of small employers in preserving multi-employer bargaining. . . . The ultimate problem is the balancing of the conflicting legitimate interests. The function of striking that balance to effectuate national labor policy is often a difficult and delicate responsibility, which the Congress committed primarily to the National Labor Relations Board, subject to limited judicial review.” Buffalo Linen, 353 U. S. 87, 96.
This is especially so where integrity of a multiemployer bargaining unit is the principal factor to be considered, since “the compelling conclusion is that Congress . . . ‘intended to leave to the Board‘s specialized judgment the inevitable questions concerning multi-employer bargaining bound to arise in the future.‘” Ibid. I think the Court now repudiates this decision and assumes for itself the “delicate task . . . of weighing the interests of employees in concerted activity against the interest of the employer in operating his business in a particular manner.” Erie Resistor, 373 U. S. 221, 229. I would adhere to our prior cases and affirm the decision of the Board.
Notes
National Labor Relations Act, as amended, § 8 (a), 61 Stat. 140,
“(1) to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in section 157 of this title;
“(3) by discrimination in regard to hire or tenure of employment or any term or condition of employment to encourage or discourage membership in any labor organization . . . .”
National Labor Relations Act, as amended, § 7, 61 Stat. 140,
This is evident from the authorities cited in Buffalo Linen, 353 U. S., at 96, n. 28.
In Labor Board v. Babcock & Wilcox Co., 351 U. S. 105, we set aside, as resting on an erroneous legal foundation, a Board decision finding that the employer‘s refusal to allow distribution of union literature on a company-owned parking lot violated
