National Labor Relations Board v. Manitowoc Engineering CoNational Labor Relations Board v. Manitowoc Engineering Co
Clifford B. Buelow, Davis & Kuelthau and Matthew R. Robbins, Previant, Goldberg, Uelmen, Gratz, Miller & Brueggeman, Milwaukee, Wis., for respondents.
Before BAUER, Chief Judge, and FLAUM, Circuit Judge, and ESCHBACH, Senior Circuit Judge.
ESCHBACH, Senior Circuit Judge.
The National Labor Relations Board (Board) petitions the Court pursuant to
I.
But Article V, Sec. 17 contains a fly in the ointment. Buried away in the third paragraph of the provision lies a sentence stating that transferred or promoted employees “shall maintain membership in the Union or obtain a withdrawal card in accord with the provision of the Union‘s Constitution.” Thus, the apparent gift of seniority security is made conditional: transferred or promoted employees must earn it. The seniority employees have accumulated throughout their many years of labor in the bargaining unit may, in a wink, disappear, unless when transferred or promoted they either maintain membership or obtain withdrawal. Obtaining withdrawal is easy: the relevant provision of the Union Constitution allows a withdrawal card to issue upon submission of an application, the payment of a minimal fee, and the payment of any overdue financial obligations. But obtaining withdrawal is far from certain; the Constitution states that a withdrawal card “may” issue upon the satisfaction of the above mentioned conditions, not that it “shall” issue. The alternative, maintaining membership, likewise is easy: political fervor is not required, only the satisfaction of “financial core” obligations. See Pattern Makers’ League, 473 U.S. at 106 n. 16, 105 S.Ct. at 3071 n. 16; NLRB v. General Motors Corp., 373 U.S. 734, 742, 83 S.Ct. 1453, 1459, 10 L.Ed.2d 670 (1963). It is not inexpensive, however; at the very least the payment of dues is required. See Pattern Makers’ League, supra; General Motors Corp., supra.
In 1972 Eugene Ruppelt faced Article V, Sec. 17 for the first time. Thirty years before, in 1942, Ruppelt had started work at the Company in a unit represented by the Union. In 1972 Ruppelt was promoted to supervisor. This turn of affairs concerned Ruppelt. The promotion was nice, but he was worried about his seniority. Ruppelt had accrued thirty years that all but guaranteed him a job in the bargaining unit; he did not want to accept the promotion, throw those thirty years away, and later find himself demoted and unemployed. Ruppelt sought to alleviate his fears first through the mechanism of Article V, Sec. 17. Upon his promotion, he applied for a withdrawal card. He met the minimal conditions imposed on applicants, yet from the Union no card was forthcoming. Ruppelt‘s request was blocked by a shop committee chairman, a man miffed by Ruppelt‘s apparent lack of devotion to the Union and his apparent lack of respect for some of the Union brethren. Ruppelt then sought to alleviate his fears through management. About the quandary created by his lack of a withdrawal card Ruppelt talked to Company officials, who apparently convinced him he had nothing to worry about. Without the withdrawal card, Ruppelt took the promotion. He then quit the Union.
Ruppelt lived the supervisor‘s life for 14 years without event. In January of 1986, however, the day of reckoning came. Around January 3, 1986, Ruppelt was demoted back to the bargaining unit. For the past 14 years, however, the Company had listed Ruppelt‘s thirty years accrued seniority on a Union-Company “seniority list,” and this without complaint from the Union, so the Company demoted him with his thirty years accrued seniority. As Ruppelt had anticipated, the seniority came in handy. At the time of his demotion, several unit employees with less seniority were on lay-off. If Ruppelt‘s seniority was taken away he too would be unemployed.
The Union again raised the hue and cry on the issue of Ruppelt. At this point, however, the Company‘s mood was less disposed towards appeasement. It refused to lay him off. Consequently, the Union filed a grievance. The grievance ultimately came before an arbitrator, who, on June 2, decided that under the “clear and unambiguous language” of Article V, Sec. 17 Ruppelt lost his bargaining unit seniority because he failed to pay dues after his promotion to supervisor. Faced with the arbitrator‘s decision and the Union‘s threat to strike over the issue, the Company found itself compelled to lay off Ruppelt. It did so on July 11, 1986.1
In the meantime the contumacious Ruppelt lodged an unfair labor practice charge with the Board. Filed June 24, 1986, the charge alleged that the Union‘s actions had violated the NLRA. On the basis of this charge (and events subsequent to June 24) the Board‘s General Counsel on December 10 issued a complaint against the Union alleging its violation of NLRA
II.
The Board concluded that both the Union and the Company violated the NLRA. Its conclusion followed naturally from its finding that Article V, Sec. 17 “is unlawful on its face.” In the Board‘s view, that finding was compelled by the policy of the NLRA to “insulate employees’ jobs from their organizational rights,” Local 1384, United Automobile Workers v. NLRB, 756 F.2d 482, 487 (7th Cir.1985) (citing Radio Officers’ Union v. NLRB, 347 U.S. 17, 40, 74 S.Ct. 323, 335, 98 L.Ed. 455 (1954)), and, most directly, by the language of
Article V, Sec. 17 looked like a loser in the eyes of the Board: The provision apparently impinged upon the language of
III.
On appeal, both the Union and the Company argue that the Board erred in finding Article V, Sec. 17 “unlawful on its face.” The Company‘s argument relates not to the Board‘s interpretation of the NLRA, but to its interpretation of Article V, Sec. 17. The Company maintains that Article V, Sec. 17, properly interpreted, gives transferred or promoted unit employees “freedom of choice” in deciding what to do with their return rights because they can either pay dues, or obtain a withdrawal card. Freedom of choice comes into play, so claims the Company, because transferred or promoted employees are entitled to a withdrawal card merely by satisfying two conditions: the payment of a fee and the payment of overdue “financial core” obligations incurred while employed in the bargaining unit. Thus Article V, Sec. 17, properly interpreted, encourages no more from employees than that which legally may be encouraged: the satisfaction of financial core obligations incurred while a unit employee. See generally NLRB v. General Motors Corp., 373 U.S. 734, 83 S.Ct. 1453, 10 L.Ed.2d 670 (1963). In the Company‘s view the Board erred in interpreting Article V, Sec. 17 as giving the Union discretion to grant or withhold withdrawal cards at its fancy. The Company believes that the Union has no discretion in the matter and that the real unfair labor practice in this case was not the maintenance and application of an illegal Article V, Sec. 17, but the obstinate and illegal behavior on the part of the Union in denying Ruppelt his withdrawal card in 1972 and in fighting his return to the unit in 1986.
In its brief the Company reminds us that “[i]t has long been a rule of labor contract interpretation that ambiguous clauses in collective bargaining agreements should be interpreted in a manner which renders them lawful, if at all possible.” It then asserts that the Board erred by not following this rule. The phrase in Article V, Sec. 17 that the Company finds ambiguous reads “shall ... obtain a withdrawal card in accord with the provision of the Union‘s Constitution.” It is this phrase that the Company would like us to interpret as restricting the Union‘s discretion in issuing withdrawal cards.3 As we see it, however, this phrase is not at all ambiguous. In the context of all that Article V, Sec. 17 says, the phrase tells transferred or promoted employees that they may secure their accrued seniority if they obtain a withdrawal card, the process for which is spelled out in the Union Constitution. According to the Union Constitution, an employee should submit an application, pay a minimal fee, and satisfy delinquent financial obligations if he wants a withdrawal card; then the Union may issue the card. May issue. We see no ambiguity in this. The word “may,” the Union Constitution, and Article V, Sec. 17 are all clear. They mean exactly what the Board found them to mean: that the Union has “substantial discretion” in deciding whether to issue a withdrawal card.
We cannot transform “may” into “shall.” “May” means what it says. The Union Constitution gives substantial discretion to the Union in granting or withholding a withdrawal card. By requiring a transferred or promoted employee to obtain a withdrawal card “in accord with the provision of the Union‘s Constitution,” Article V, Sec. 17 thereby places the withdrawal card fate of employees at the discretion of the Union. Contrary to the Company‘s assertion, Article V, Sec. 17 affords the employees no “freedom of choice” between obtaining a withdrawal or maintaining membership. Thus, the Board‘s interpretation of Article V, Sec. 17 stands.4
The Union cares not how Article V, Sec. 17 is interpreted. Its concern is with the Board‘s construction of the NLRA. We find no fault with that construction. NLRA
Equally reasonable is the Board‘s conclusion that the disparate treatment occasioned by Article V, Sec. 17 encourages employees to be members of the Union. By its plain words, Article V, Sec. 17 says as much: transferred or promoted employees “shall maintain membership in the Union” at a time when neither law nor contract compels their membership. See generally Radio Officers’ Union v. NLRB, 347 U.S. 17, 74 S.Ct. 323, 98 L.Ed. 455 (1954). True, the alternative offered by Article V, Sec. 17--obtaining a withdrawal card--is a less direct encouragement, but due to the “political” nature of this process it is an encouragement nonetheless. If one‘s chances of getting a withdrawal card (and the benefits it brings) increase directly with increases in the degree with which one participates in union activities as a “good Union member,” then one naturally is encouraged to be a “good” Union member. Participation in union activities and support and assistance of a union, of course, is “membership” as that term is used in
Thus, ever mindful of our standard of review,10 we feel compelled by statutory language and labor policy to uphold the Board‘s conclusion that Article V, Sec. 17 is unlawful on its face. Consequently, its maintenance and application by the Company and the Union resulted in violations of the NLRA.
IV.
Simply put, the events of 1972 did not amount to “adverse employment decisions.” Those decisions did not occur until 1986, when Ruppelt was resigned to reading the “Want” ads. It is from the dates of those decisions that the
The second issue we address only briefly. In concocting a remedy for the violations it found the Union and Company to have perpetrated, the Board made the Union and the Company jointly and severally liable “to make Ruppelt whole,” but the Union primarily so. The Union finds this troublesome because, in effect, it will have to foot the remedial bill. It asks us to modify the Board‘s order, arguing that the norm in cases like this is to impose joint and several liability, without more, and that the Board had no reason to deviate from this norm. But this is the wrong argument. If one thing is settled in the area of labor relations it is that “the Board‘s power [to devise remedies] is a broad discretionary one,” Fibreboard Paper Products Corp. v. NLRB, 379 U.S. 203, 216, 85 S.Ct. 398, 406, 13 L.Ed.2d 233 (1964), that “the relation of remedy to policy is peculiarly a matter for administrative competence,” Phelps Dodge Corp. v. NLRB, 313 U.S. 177, 194, 61 S.Ct. 845, 852, 85 L.Ed. 1271 (1941), that an order of the Board will not be disturbed “unless it can be shown that the order is a patent attempt to achieve ends other than those which can fairly be said to effectuate the policies of the [NLRA].” Virginia Elec. & Power Co. v. NLRB, 319 U.S. 533, 540, 63 S.Ct. 1214, 1218, 87 L.Ed. 1568 (1943). See also G. Heileman Brewing Co. v. NLRB, 879 F.2d 1526, 1534 (7th Cir.1989);
The petition for enforcement is GRANTED.
Notes
The Union argues, however, that our deference should be less and our review more exacting because the circumstances before us are not normal. It points out that the issue resolved by the Board below is hardly novel, having received the Board‘s attention in the past on at least four occasions. See Brown & Williamson Tobacco Co., 227 NLRB 2005 (1977); Steel Workers Local No. 1070, 171 NLRB 945 (1968); Kaiser Steel, 125 NLRB 1039 (1959); Namm‘s Inc., 102 NLRB 466 (1953). It also points out--and here lies the rub--that the Board‘s opinions are not consistent: the rule laid down by the Board in this case overruled that enunciated in Brown & Williamson, which overruled that in Kaiser Steel, which overruled that in Namm‘s Inc. The Board, to use the Union‘s phrase, has “a history of vacillation” on the subject. But vacillation on a point of law is not something unique to the Board. Even our highest Court occasionally is afflicted by the law‘s vicissitudes. Compare Garcia v. San Antonio Metropolitan Transit Authority, 469 U.S. 528, 105 S.Ct. 1005, 83 L.Ed.2d 1016 (1985) with National League of Cities v. Usery, 426 U.S. 833, 96 S.Ct. 2465, 49 L.Ed.2d 245 (1976). Nor is vacillation, by itself, cause to abandon deferential review. “An administrative agency is not disqualified from changing its mind; and when it does, the courts still sit in review of the administrative decision and should not approach the statutory construction issue de novo and without regard to the administrative understanding of the statutes.” NLRB v. Local Union No. 103, International Ass‘n of Bridge Workers, 434 U.S. 335, 351, 98 S.Ct. 651, 660-61, 54 L.Ed.2d 586 (1978) (emphasis added). See also NLRB v. J. Weingarten, Inc., 420 U.S. 251, 265-67, 95 S.Ct. 959, 967-68, 43 L.Ed.2d 171 (1975); United Automobile Workers, 756 F.2d at 492; Continental Web Press, Inc. v. NLRB, 742 F.2d 1087, 1093 (7th Cir.1984). But cf. Children‘s Habilitation Center, Inc. v. NLRB, 887 F.2d 130, 132 (7th Cir.1989) (“An administrative agency, like any other first-line tribunal, earns--or forfeits--deferential review by its performance.“); Local 177, Democratic Union Organizing Committee, Seafarers Int‘l Union v. NLRB, 603 F.2d 862 (D.C.Cir.1978), reh‘g denied, 603 F.2d 891 (1979).
It is true that our deference has limits. Board orders should not be enforced “where they ha[ve] ‘no reasonable basis in law’ either because the proper legal standard [is] not applied or because the Board applie[s] the correct standard but fail[s] to give the plain language of the standard its ordinary meaning.” Ford Motor Co., 441 U.S. at 497, 99 S.Ct. at 1849. Nor should they be enforced where the Board‘s interpretation is “‘fundamentally inconsistent with the structure of the [NLRA]’ and an attempt to usurp ‘major policy decisions properly made by Congress.‘” Id. But this is not to say that our deference is less than normal in such circumstances; it is merely to say that our deference can go only so far, i.e., only so far as experience and reason will allow.