NATIONAL LABOR RELATIONS BOARD v. INTERNATIONAL LONGSHOREMEN‘S ASSN., AFL-CIO, ET AL.
No. 84-861
SUPREME COURT OF THE UNITED STATES
Argued April 23, 1985—Decided June 27, 1985
473 U.S. 61
Norton J. Come argued the cause for petitioner. With him on the briefs were Solicitor General Lee, Deputy Solicitor General Fried, David A. Strauss, and Linda Sher. J. Alan Lips argued the cause for the American Trucking Associations, Inc., et al., respondents under this Court‘s Rule 19.6 in support of petitioner. With him on the briefs were Mark E. Lutz and Kenneth E. Siegel. Briefs in support of petitioner were filed by William L. Auten for Houff Transfer, Inc., William H. Towle for the American Warehousemen‘s Association, and David Previant, Robert M. Baptiste, and Roland P. Wilder, Jr., for the International Brotherhood
Donato Caruso argued the cause for respondent New York Shipping Association, Inc. Ernest L. Mathews, Jr., argued the cause for respondent International Longshoremen‘s Association, AFL-CIO. With them on the brief were C. P. Lambos, Thomas W. Gleason, and Francis A. Scanlan.*
JUSTICE BRENNAN delivered the opinion of the Court.
The Rules on Containers are collectively bargained-for guidelines requiring marine shipping companies to allow some of the large cargo containers that they own or lease to be loaded or unloaded by longshoremen at the pier. In NLRB v. Longshoremen, 447 U. S. 490 (1980) (ILA I), we reviewed the National Labor Relations Board‘s conclusion that the Rules and their enforcement constituted unlawful secondary activity under
*Dixie L. Atwater and Stephen A. Bokat filed a brief for the Chamber of Commerce of the United States as amicus curiae urging reversal.
George Kaufmann, David Silberman, and Laurence Gold filed a brief for the American Federation of Labor and Congress of Industrial Organizations as amicus curiae urging affirmance.
Stephen E. Tallent and William F. Highberger filed a brief for Delta Steamship Lines, Inc., as amicus curiae.
I
At issue is the response of unionized dockworkers to a technological innovation known as “containerization.” Traditionally, longshoremen employed by steamship or stevedoring companies loaded and unloaded cargo into and out of oceangoing vessels at the pier. Cargo arriving at the pier by truck was “transferred piece by piece from the truck‘s tailgate to the ship by longshoremen.... The longshoremen checked the cargo, sorted it, placed it on pallets and moved it by forklift to the side of the ship, and lifted it by means of a sling or hook into the ship‘s hold. The process was reversed for cargo taken off incoming ships.” 447 U. S., at 495. As we explained in some detail in ILA I, the advent of containerization some 25 years ago profoundly transformed this traditional pattern, by reducing the cost of ocean cargo transport and “largely eliminat[ing] the need for cargo handling at intermediate stages.” Id., at 509.1
The Rules do not require that all containers be loaded or unloaded by longshoremen at the pier. Instead, they apply only to containers that would otherwise be loaded or unloaded within the local port area, defined for convenience as
Although the marine shipping companies and longshoremen have accepted the various compromises that the Rules represent, three groups of non-ILA employers are unhappy
Unlike consolidators, many of whose businesses have been founded on containerization, some truckers and warehousers have always performed some off-pier cargo handling work. For example, prior to containerization, some interstate truckers would pick up cargo at the pier, drive a short distance to a central facility, and then unload and reload the cargo to meet weight, safety, or delivery requirements. Such unloading and reloading near the pier still sometimes occurs, even if the cargo is picked up in containers. The trucking practice of stopping in the vicinity of the pier to unload and reload cargo for reasons related to trucking requirements is known as “shortstopping.” Similarly, some warehousers have always performed some loading and unloading of cargo stored at the warehouse for reasons unrelated to marine transportation; such cargo handling is still sometimes necessary even though cargo is shipped in containers.5
All these facts were before the Court in ILA I. We did not find that any of them required invalidation of the Rules. Instead, because we found that the Board had erred as a matter of law in defining the “work” in controversy, we remanded to the Board for further proceedings. 447 U. S., at 512-513.
In a detailed opinion, the ALJ sustained the Rules as a valid work preservation agreement. He found that the “historic jurisdiction” of longshoremen “includes all work in connection with the loading and unloading of cargo on ships, ... including such related intermediate steps as receipt, storage, sorting, checking, palletizing, cargo repair, carpentry, maintenance and delivery.” 266 N. L. R. B., at 247. He rejected the argument that containerization has so changed the character of the cargo transportation industry that this work has simply disappeared.9 Noting that the Rules are
The ALJ did not end his inquiry there, however. He concluded that despite the work preservation objective of the Rules, they might still be invalid if they had the effect of reserving for longshoremen cargo handling work that had been done by nonlongshore labor prior to containerization and thus was not “created” by containerization. Id., at 252. The ALJ reasoned that “to the extent that the Rules seek to compensate longshoremen for losses at the expense of inland employees whose jobs did not derive from containerization, a
The Board adopted the ALJ‘s findings and conclusions, stating that “the ILA had an overall work preservation objective in negotiating the Rules,” and that “the work of loading and unloading containers claimed by the Rules is functionally related to the traditional loading and unloading work of the longshoremen.” Id., at 236, 237. The Board therefore held the Rules lawful as a general matter. It also agreed with the ALJ‘s partial invalidation “as applied,” however, after modifying the ALJ‘s views in two respects.
First, the Board provided a definition of “the work in dispute,” because the ALJ had not done so explicitly. Id., at 236. Second, the Board rejected the ALJ‘s “findings that an illegal work acquisition objective is revealed in the Rules,”
“By focusing on the economic character of the trucking and warehousing industry and on the work historically performed by trucking and warehousing employees, the [ALJ‘s] ... findings give undue emphasis to the work historically performed by trucking and warehousing employees and to the fact that this work was not created by containerization.” Ibid.
Nevertheless, the Board held the Rules unlawful “as applied to ‘shortstopping’ and ‘traditional’ warehousing practices.” Id., at 236. The Board reasoned that some cargo loading and unloading work required to be performed by longshoremen under the Rules would unnecessarily duplicate the similar work done by “shortstopping” truckers and “traditional” warehousers. Because cargo in containers can now be moved directly to and from warehouses and trucking terminals without loading or unloading at the pier, the necessity for such longshore labor has been removed, while “traditional” warehousers and “shortstopping” truckers must still do some container loading and unloading at their facilities. Thus, the Board concluded, the loading and unloading work of the longshoremen “no longer exists as a step in the cargo handling process” and “essentially was eliminated” in these two contexts. Id., at 237. Because the Rules seek to preserve this “eliminated” work, the Board concluded that they have “an illegal work acquisition objective” as applied. Ibid.
The Court of Appeals for the Fourth Circuit affirmed the Board‘s general validation of the Rules, concluding that the Board‘s crucial dual findings—that the shipping companies have the “right to control” container work, and that the Rules had a bona fide work preservation objective—were supported by substantial evidence. American Trucking Assns., Inc. v. NLRB, 734 F. 2d 966, 977-978 (1984). For
First, in concluding that a partial objective of the Rules is “work acquisition,” the Board had failed to make any factual finding that the Rules actually operate to deprive “shortstopping” truckers or “traditional” warehousers of any work. Id., at 979. Second, the Court of Appeals concluded that, as a matter of law, an agreement that preserves duplicative or technologically “eliminated” work simply does not constitute “work acquisition.” National Woodwork had approved as lawful primary activity a collective-bargaining agreement whose objective was “protection of union members from a diminution of work flowing from changes in technology.” 386 U. S., at 648 (Harlan, J., concurring). The ALJ and the Board both had found that the same work-preserving purpose underlies the Rules on Containers. The Rules do not “in any way prevent the identical off-pier work,” and although such work may be economically inefficient, “it is not our function as a court of review to weigh the economic cost of the Rules.” 734 F. 2d, at 979. The Court of Appeals therefore concluded that “the Rules are lawful in their entirety and may be enforced.” Id., at 980.
Although a number of the charging parties sought review of the Fourth Circuit‘s decision, we granted only the Board‘s petition for certiorari, 469 U. S. 1188 (1985), thereby limiting our inquiry to the alleged unlawfulness of the Rules with regard to “shortstopping” truckers and “traditional” warehousers.
II
A
We have labored in the past to determine Congress’ will as expressed in
In National Woodwork, after reviewing in detail the relevant legislative and judicial history, we concluded that “Congress meant that both
“whether, under all the surrounding circumstances, the Union‘s objective was preservation of work for [the primary employer‘s] employees, or whether the agreements and boycott were tactically calculated to satisfy union objectives elsewhere. ... The touchstone is whether the agreement or its maintenance is addressed to the labor relations of the contracting employer vis à vis his own employees.” Id., at 644-645.
We expressly noted that a different case might be presented if a union engaged in activity “to reach out to monopolize jobs
We reaffirmed the National Woodwork analysis in ILA I, and noted that “a lawful work preservation agreement must pass two tests“: the objective of the agreement must be preservation of work for members of the union rather than some secondary goal, and the “right of control” test of NLRB v. Pipefitters, 429 U. S. 507 (1977), must be satisfied. 447 U. S., at 504.16 We ruled, however, that the Board had
ILA I concluded, however, that collective-bargaining agreements designed to “accommodate change” while still preserving some type of work for union members may nevertheless be lawful primary agreements; the work preservation doctrine does not require that unions block progress by refusing to permit any use at all of new technology in order to avoid the prohibitions of
Because the Board‘s analysis had proceeded from an erroneous premise, we remanded. We directed the Board to examine “how the contracting parties sought to preserve ... work, to the extent possible, in the face of” containerization, and “to evaluate the relationship between traditional longshore work and the work which the Rules attempt to assign to ILA members.” Id., at 509. If, on remand, the Rules were found to be a bona fide attempt to preserve longshore work, rather than an effort “tactically calculated to satisfy union objectives elsewhere,” then the Rules would be valid. Id., at 511, quoting National Woodwork, 386 U. S., at 644. “[T]he question is not whether the Rules represent the most rational or efficient response to innovation, but whether they are a legally permissible effort to preserve jobs.” 447 U. S., at 511.
B
We accept the Board‘s factual findings as supported by substantial evidence, Universal Camera Corp. v. NLRB, 340 U. S. 474 (1951), and are mindful of the rule that the Board‘s construction of the Act is due our deference. See, e. g., Beth Israel Hospital v. NLRB, 437 U. S. 483, 500-501 (1978); NLRB v. Erie Resistor Corp., 373 U. S. 221, 236 (1963). We are in agreement with the Board‘s basic statutory conclusions:
In our view, the Board committed two fundamental errors. First, by focusing on the effect that the Rules may have on “shortstopping” truckers and “traditional” warehousers, the Board contravened our direction that such extra-unit effects, “no matter how severe,” are “irrelevant” to the analysis. 447 U. S., at 507, n. 22. “So long as the union had no forbidden secondary purpose” to disrupt the business relations of a neutral employer, ibid., such effects are “incidental to primary activity.” Pipefitters, 429 U. S., at 526. Here the ALJ, Board, and Court of Appeals all have agreed that the Rules were motivated entirely by the longshoremen‘s understandable desire to preserve jobs against “the steadily dwindling volume” of cargo work at the pier. 734 F. 2d, at 978. Given this clear primary objective to preserve work in the face of a threat to jobs, extra-unit effects of a work preservation agreement alone provide an insufficient basis for concluding that the agreement has an unlawful secondary objective. Absent some additional showing of an attempt “to reach out to monopolize jobs,” National Woodwork, supra, at 630, that is, proof of an attempt “not to preserve, but to aggrandize,” Pipefitters, supra, at 528-530, n. 16, such an agreement is lawful.19
It must not be forgotten that the relevant inquiry under
In sum, we believe that the Board correctly identified as erroneous the ALJ‘s focus on the effect of the Rules on the work of employees outside the bargaining unit, but then fell into the same analytical trap. The crucial findings are that the ILA‘s objective consistently has been to preserve longshore work, and that the ILA‘s employers have the power to control assignment of that work. ILA I, 447 U. S., at 504. In light of these facts, further inquiry into the effects of the Rules as applied was inconsistent with our precedents in this concededly difficult area.
C
In ILA I it was argued that the Rules preserve work made “utterly useless” by containerization and thus are “nothing less than an invidious form of ‘featherbedding’ to block full implementation of modern technological progress.” Id., at 526-527 (BURGER, C. J., dissenting). Similar arguments are repeated today, see post, at 89, 90, and were presented in National Woodwork as well. See 386 U. S., at 644. Our response is no different than it was 18 years ago: “Those arguments are addressed to the wrong branch of government.” Ibid.22 Justice Harlan wrote separately in National Woodwork to underscore the Court‘s reasoning on this point:
“The only question thus to be decided . . . is whether Congress meant, in enacting
§§ 8(b)(4)(B) and8(e) of the National Labor Relations Act, to prevent this kind of labor-management arrangement designed to forestall possible adverse effects upon workers arising from changing technology.. . . . .
“[B]oth sides of today‘s division in the Court agree that we must be especially careful to eschew a resolution of the issue according to our own economic ideas and to find one in what Congress has done.
“In view of Congress’ deep commitment to the resolution of matters of vital importance to management and labor through the collective bargaining process, and its recognition of the boycott as a legitimate weapon in that process, it would be unfortunate were this Court to attribute to Congress, on the basis of such an opaque legislative record, a purpose to outlaw the kind of collective bargaining and conduct involved in these cases. Especially at a time when Congress is continuing to explore methods for meeting the economic problems increasingly arising in this technological age from scientific advances, this Court should not take such a step until Congress has made unmistakably clear that it wishes wholly to exclude collective bargaining as one avenue of approach to solu
tions in this elusive aspect of our economy.” Id., at 648-650.
Congress has not altered the provisions at issue in the 18 years since National Woodwork was decided, nor has any new evidence been offered regarding Congress’ original intent. In the meantime, management and labor alike have relied on the work preservation doctrine to guide their bargaining. In such circumstances we should follow the normal presumption of stare decisis in cases of statutory interpretation. See Illinois Brick Co. v. Illinois, 431 U. S. 720, 736-737 (1977); Edelman v. Jordan, 415 U. S. 651, 671 (1974).
III
Under the Rules on Containers, the ILA has given up some 80% of all containerized cargo work and the technological “container revolution” has secured its position in the industry. We have often noted that a basic premise of the labor laws is that “collective discussions backed by the parties’ economic weapons will result in decisions that are better for both management and labor and for society as a whole.” First National Maintenance Corp. v. NLRB, 452 U. S. 666, 678 (1981). The Rules represent a negotiated compromise of a volatile problem bearing directly on the well-being of our national economy. We concur with the ALJ, Board, and Court of Appeals that the Rules on Containers are a lawful work preservation agreement. Nothing in this record supports a conclusion that their enforcement has had a secondary, rather than primary, objective. The judgment below is therefore
Affirmed.
JUSTICE REHNQUIST, with whom THE CHIEF JUSTICE and JUSTICE O‘CONNOR join, dissenting.
It is not surprising that neither the opinion of the Court today, nor the body of the opinion in NLRB v. Longshoremen, 447 U. S. 490 (1980) (ILA I), contains the text of the
The Rules on Containers, an agreement entered into between various shipowners and the International Longshoremen‘s Association (ILA), begin by proclaiming their intent to “preserve the work jurisdiction of longshoremen and all other ILA crafts . . . .” They move on to define certain classes of containers which “shall be loaded or discharged . . . at a waterfront facility by deepsea ILA labor.” Among the containers which must be so handled are those described by Rule 1(a)(3)—“[c]ontainers designated for a single consignee from which the cargo is discharged (deconsolidated) by other than its own employees,” provided that such unloading takes place within 50 miles of the port and that the cargo is not warehoused for more than 30 days. If the containers are first unloaded more than 50 miles from the port then they need not be unloaded by ILA labor.
Rule 7 sets forth sanctions to be imposed on employers and any other entity violating the Rules. Each time a container passes over the pier in violation of the Rules the shipping employer pays the union $1,000 in “liquidated damages“; in addition, Rule 7(d) states that both the employer and the ILA will cease doing business with “[a]ny facility operated in violation of the Container Rules.”
The effect of these Rules is well illustrated by their application to the trucking practice known as “shortstopping“—one of the classes of work with respect to which the Board found the Rules to be work acquisitive. Prior to contain
After containerization there was no longer a need for ILA unloading at the pier. The containers could be lifted directly from the ship‘s hold and placed on a truck chassis. Nevertheless, the trucks might still be “shortstopped” for the same reasons as before. What the Rules—in this case Rule 1(a)(3)—do is to require that the containers be unloaded by ILA labor at the pier despite the fact that such unloading is now completely unnecessary. If the containers are subsequently shortstopped, unloading and loading which need be done only once is instead done twice. The result is that the principal advantage of containerization—that the cargo need not be handled breakbulk at the pier—is lost. And if the truckers shortstop a container that has not been unloaded by the ILA, they are subject to Rule 7 sanctions, including the refusal of the shippers to supply the truckers with containers.
“It shall be an unfair labor practice for a labor organization or its agents—
. . . . .
“(4)(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 . . . Provided, [t]hat nothing contained in this clause (B) shall be construed to make unlawful, when not otherwise unlawful, any primary strike or primary picketing . . . .”
“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 unenforceable and void . . . .”
It should be evident that the Rules violate the plain language of
Yet that is the conclusion that the Court reached in National Woodwork, and the work preservation/work acquisition distinction provides the basis for the conclusion the Court reaches today. As refined by the Court, it now appears that, at least where a particular union‘s jobs are “threatened,” an agreement will be considered valid so long as the union‘s subjective intent is to preserve union jobs and the union conducts its bargaining with an employer who has “control” over those jobs; it is only where the agreement is “tactically calculated to satisfy union objectives elsewhere,” ante, at 78, that the agreement will be considered work acquisitive. In applying this test, we are told first that we must look to “all the surrounding circumstances,” ante, at 75 (quoting National Woodwork), to determine whether the union‘s objective was work preservation, or the acquisition
These directives appear contradictory, for it would seem difficult indeed to determine whether a particular agreement is “work acquisitive” without focusing, to some degree, on the work that is being acquired. It may be that the Court today ultimately resolves this problem by establishing that the only test is whether the union subjectively intended to do more than preserve work it had always done, but if so I cannot agree that the test accurately separates “primary” from “secondary” activity, nor can I agree that the resulting test comports with Congress’ intent in enacting
As to the relationship between the Court‘s test and Congress’ intent, I note that today the Court forthrightly admits that a “work preservation” agreement will not be illegal despite the fact that its intent is to preserve work that has been entirely “eliminated” by technological change. As noted previously, such agreements can result in “preserving” work merely by requiring duplication, thereby forcing an employer to pay for labor that no longer has an economic use. Indeed, one of the reasons stated by the Court of Appeals for the Fourth Circuit for upholding the Rules as applied to “shortstopping” was that, given that under the Rules ILA labor would have to unload at the pier any container that was going to be shortstopped, there still was no indication in the record that the ILA had “acquired” any work, because there was no indication that the containers would not be shortstopped in any event when they reached the trucking terminal. American Trucking Assns., Inc. v. NLRB, 734 F. 2d 966, 979 (1984). As THE CHIEF JUSTICE noted in his dissent in ILA I, the upshot of allowing unions to enter into such agreements is that they may render change so difficult, by artificially raising the costs of a new system, that they stifle technological advance. ILA I, 447 U. S., at 526-527 (BURGER, C. J., dissenting). It is hard to believe that the Congress which enacted a statute that by its plain terms would have prohibited such agreements nevertheless intended to sanction agreements requiring such make-work.
It is no answer to these objections that Congress intended the collective-bargaining process to take care of the various economic problems raised by union work preservation agreements such as those at issue. It is true that Congress established collective bargaining as the primary tool for resolving most labor disputes. But if private ordering were sufficient to alleviate all labor problems then there would be no need for labor laws. Instead, Congress enacted comprehensive labor legislation for the “establishment and maintenance of industrial peace to preserve the flow of interstate commerce.” First National Maintenance Corp. v. NLRB, 452 U. S. 666, 674 (1981). Obviously, in enacting
A decent regard for stare decisis suggests that battle be not again joined on the question decided in National Woodwork, but to me the dubious correctness of that decision indicates that the Court should not expand it beyond its facts, and should now try to move in the direction of the plain language of the statutes in those cases not clearly covered by National Woodwork. I can agree that
The primary/secondary distinction is not, of course, capable of precise application. The classic “secondary” activity, whereby a union that has a dispute with employer A exerts economic pressure on employer B to further its goals with respect to employer A, is not really present in this case. Here the union‘s direct contact has been with the primary employers, the shipowners. But as noted previously, there is little reason to believe that in enacting
There is no dispute that “shortstopping” occurred even when longshoremen regularly unloaded cargo breakbulk from the ships and the cargo was placed into trucks. Similarly,
This scenario convinces me that the Rules constitute illegal secondary activity. Absent the Rules it would have been business as usual for the truckers and warehousemen; with the Rules they are subject to refusals to deal, to possible fines from the shippers who own the containers, and perhaps to difficult decisions concerning the course that their own businesses and employee relations will take. They are the “unoffending employers” who have been mulcted in a labor dispute “not their own.” National Woodwork, supra, at 626-627 (quoting NLRB v. Denver Bldg. Trades Council, 341 U. S. 675, 692 (1951)). Such pressures are what the statutes were intended to protect against. Moreover, from this standpoint the Rules are work acquisitive; however pure the motives of the union might be the result of the Rules is likely to be that the ILA receives work and the truckers and warehousemen lose it.
The conclusion that the Rules are secondary—and work acquisitive—in the case before us is supported by a look at how the Rules actually are structured with respect to “short
The Court avoids this conclusion by stating the test as whether the union‘s objective was to preserve its traditional work, and by pretending to accept the ALJ‘s and the Board‘s “findings” that “the ILA‘s objective consistently has been to preserve longshore work . . . .” Ante, at 81-82. I, of course, agree with the Court that the Board‘s factual findings must be accepted if supported by substantial evidence, and that deference is due to the Board‘s construction of the Act, ante, at 78, but the Board did not make the findings the Court cites. The Board accepted the ALJ‘s finding that the “ILA had an overall work preservation objective in negotiating the Rules,” see 266 N. L. R. B. 230, 236 (1983), but
Notes
...
“(4)... (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... Provided: that nothing contained in this clause (B) shall be construed to make unlawful, where not otherwise unlawful, any primary strike or primary picketing....”
Some of the unfair labor charges in these cases were filed due to cessations of business with off-pier employers by marine shipping companies after the companies were fined by the ILA for allowing “shortstoppers” and warehousers to handle containers in violation of the Rules. See ILA I, 447 U. S., at 500-502. Others were filed prior to the Rules taking effect in various ports. See, e. g., 266 N. L. R. B., at 267-268. Thus the charges are based on facts somewhat attenuated from a direct application of the Rules themselves. The record is silent regarding whether any off-pier employers have actually “lost” work when longshoremen load or unload containers in compliance with the Rules.
With respect to freight consolidators, the ALJ found that their container loading and unloading are performed “pursuant to a reallocation of work from the piers to off[-pier] facilities created virtually in its entirety by the development of containerization.” 266 N. L. R. B., at 254. The ALJ consequently declared the Rules entirely valid as applied to preserve container work destined for consolidators. Ibid. The consolidators’ charges were dismissed, as were the charges of one warehouser, Hill Creek Farms, found not to be engaged in “traditional” warehousing. Id., at 268-269.
