NATIONAL WOODWORK MANUFACTURERS ASSOCIATION ET AL. v. NATIONAL LABOR RELATIONS BOARD
No. 110
Supreme Court of the United States
Argued January 18 and 19, 1967.—Decided April 17, 1967.
386 U.S. 612
*Tоgether with No. 111, National Labor Relations Board v. National Woodwork Manufacturers Association et al., also on certiorari to the same court.
Dominick L. Manoli argued the cause for respondent in No. 110 and for petitioner in No. 111. With him on the briefs were Solicitor General Marshall, Arnold Ordman and Norton J. Come.
Briefs of amici curiae were filed by William B. Barton and Harry J. Lambeth for the Associated Builders & Contractors, Inc.; by Gerard D. Reilly and Winthrop A. Johns for the Associated General Contractors of America et al.; by Kenneth C. McGuiness and Stanley R. Strauss for the American Boiler Manufacturers Association; and by J. Albert Woll, Robert C. Mayer, Laurence Gold and Thomas E. Harris for the American Federation of Labor and Congress of Industrial Organizations.
MR. JUSTICE BRENNAN delivered the opinion of the Court.
Under the Landrum-Griffin Act amendments enacted in 1959, 73 Stat. 542,
Frouge Corporation, a Bridgeport, Connecticut, concern, was the general contractor on a housing project in Philadelphia. Frouge had a collective bargaining agreement with the Carpenters’ International Union under which Frouge agreed to be bound by the rules and regulations agreed upon by local unions with contractors in areas in which Frouge had jobs. Frouge was therefore subject to the provisions of a collective bargaining agreement between the Union and an organization of Philadelphia contraсtors, the General Building Contractors Association, Inc. A sentence in a provision of that agreement entitled Rule 17 provides that “... No member of this District Council will handle ... any doors ... which have been fitted prior to being furnished on the job .....”2 Frouge‘s Philadelphia project called for 3,600 doors. Customarily, before the doors could be hung on such projects, “blank” or “blind” doors would be mortised for the knob, routed for the hinges, and beveled to make them fit between jambs. These are tasks traditionally
The National Woodwork Manufacturers Association and another filed charges with the National Labor Relations Board against the Union alleging that by including the “will not handle” sentence of Rule 17 in the collective bargaining agreement the Union committed the unfair labor practice under
“I am convinced and find that the tasks of cutting out and fitting millwork, including doors, has, at least customarily, been performed by the carpenters employed on the jobsite. Certainly, this provision of rule 17 is not concerned with the nature of the employer with whom the contractor does business nor with the employment conditions of other employers or employees, nor does it attempt to control such other employers or employees. The provision guards against encroachments on the cutting out and fitting work of the contract unit em
ployees who have performed that work in the past. Its purpose is plainly to regulate the relations between the general contractor and his own employees and to protect a legitimate economic interest of the employees by preserving their unit work. Merely because it incidentally also affects other parties is no basis for invalidating this provision. ...
“I find that [the provision] is a lawful work-protection or work-preservation provision and that Respondents have not violated Section 8 (e) of the Act by entering into agreements containing this provision and by thereafter maintaining and enforcing this provision.” 149 N. L. R. B., at 657.
The Court of Appeals for the Seventh Circuit reversed the Board in this respect. 354 F. 2d 594, 599. The court held that the “will not handle” agreement violated
The Court of Appeals sustained, however, the dismissal of the
I.
Even on the doubtful premise that the words of
Strongly held opposing views have invariably marked controversy over labor‘s use of the boycott to further its aims by involving an employer in disputes not his own. But congressional action to deal with such conduct has stopped short of proscribing identical activity having the object of pressuring the employer for agreements regulating relations between him and his own employees. That Congress meant
The history begins with judicial application of the
vehement labor protests came with
“The substance of the matters here complained of is an interference with complainant‘s interstate trade, intended to have coercive effect upon complainant, and produced by what is commonly known as a ‘secondary boycott,’ that is, a combination not merely to refrain from dealing with complainant, or to advise or by peaceful means persuade complainant‘s customers to refrain (‘primary boycott‘), but to exercise coercive pressure upon such customers, actual or prospective, in order to cause them
to withhold or withdraw patronage from complainant through fear of loss or damage to themselves should they deal with it.” Duplex Printing Press Co. v. Deering, supra, at 466.
Thus “primary” but not “secondary” pressures were excepted from the antitrust laws. Truax v. Corrigan, 257 U. S. 312, 330 (1921), defined “secondary boycott” as one “where many combine to injure one in his business by coercing third persons against their will to cease patronizing him by threats of similar injury... The question in such cases is whether the moral coercion exercised over a stranger to the original controversy by steps in themselves legal becomes a legal wrong.” See 1 Teller, Labor Disputes and Collective Bargaining § 145 (1940).7 Commentators of the day, while noting the ambiguity which lurked in the definition, discerned its core concept: union pressure directed at a neutral employer the object оf which was to induce or coerce him to cease doing business with an employer with whom the union was engaged in a labor dispute.8
In 1932 Congress enacted the
Labor abuses of the broad immunity granted by the
“This provision makes it unlawful to resort to a secondary boycott to injure the business of a third person who is wholly unconcerned in the disagreement between an employer and his employees.... [U]nder the provisions of the Norris-LaGuardia Act, it became impossible to stop a secondary boycott or any other kind of a strike, no matter how unlawful it may have been at common law. All this provision of the bill does is to reverse the effeсt of the law as to secondary boycotts.”11 (Emphasis supplied.)
Senator Taft and others frequently sounded this note that
“Thus, it would not be lawful for a union to engage in a strike against employer A for the purpose of forcing that employer to cease doing business with employer B; nor would it be lawful for a union to boycott employer A because employer A uses or otherwise deals in the goods of or does business with employer B (with whom the union has a dispute).” S. Rep. No. 105, 80th Cong., 1st Sess., 22, I 1947 Leg. Hist. 428.14
The other subsections of
Judicial decisions interpreting the broad language of
The literal terms of
“It aimed to restrict the area of industrial conflict insofar as this could be achieved by prohibiting the most obvious, widespread, and, as Congress evidently judged, dangerous practice of unions to widen that conflict: the coercion of neutral employers, themselves not concerned with a primary labor dispute, through the inducement of their employees to en
gage in strikes or concerted refusals to handle goods.” Local 1976, United Brotherhood of Carpenters v. Labor Board (Sand Door), 357 U. S. 93, 100 (1958).
Despite this virtually overwhelming support fоr the limited reading of
The argument that the references to Allen Bradley in the debates over
“[It is] an unfair labor practice for a union to engage in the type of secondary boycott that has
been conducted in New York City by local No. 3 of the IBEW, whereby electricians have refused to install electrical products of manufacturers employing electricians who are members of some labor organization other than local No. 3.” S. Rep. No. 105, 80th Cong., 1st Sess., 22, I 1947 Leg. Hist. 428. (Emphasis supplied.)
Other statements on the floor of Congress repeat the same refrain.18 Third, even on the premise that Congress meant to prohibit boycotts such as that in Allen Bradley without regard to whether they were carried on to affect labor conditions elsewhere, the fact is that the boycott in Allen Bradley was carried on, not as a shield to preserve the jobs of Local 3 members, traditionally a primary labor activity, but as a sword, to reach out and monopolize all the manufacturing job tasks for Local 3 members. It is arguable that Congress may have viewed the use of the boycott as a sword as different from labor‘s traditional concerns with wages, hours, and working conditions. But the boycott in the present cases was not used as a sword; it was a shield carried solely to preserve the members’ jobs. We therefore have no occasion today to decide the questions which might arise where the workers carry on a boycott to reach out to monopolize jobs or acquire
It is true that the House bill proposed to amend the Clayton Act to narrow labor‘s immunity from the antitrust laws. H. R. 3020, § 301 (b), I 1947 Leg. Hist. 220. This was omitted from the Conference agreement. It is suggested that this history evidences that Congress meant
“Under clause (A) strikes or boycotts, or attempts to induce or encourage such action, were made unfair labor practices if the purpose was to force an employer or other person to cease using, selling,
In effect Congress, in enacting
Indeed, Congress in rewriting
II.
The
The legislative history of
However, provisos were added to
The only mention of a broader reach for
In addition to all else, “[t]he silence of the sponsors of [the] amendments is pregnant with significance. . . .” Labor Board v. Fruit & Vegetable Packers, supra, at 66. Before we may say that Congress meant to strike from workers’ hands the economic weapons traditionally used against their employers’ efforts to abolish their jobs, that meaning should plainly appear. “[I]n this era of automation and onrushing technological change; no problems in the domestic economy are of greater concern than those involving job security and employment stability. Because of the potentially cruel impact upon the lives and fortunes of the working men and women of the Nation, these problems have understandably engaged the solicitous attention of government, of responsible private business, and particularly of organized labor.” Fibreboard Paper Prods. Corp. v. Labor Board, 379 U. S. 203, 225 (concurring opinion of STEWART, J.). We would expect that legislation curtailing the ability of management and labor voluntarily to negotiate for solutions to these significant and difficult problems would be preceded by extensive congressional study and debate, and consideration of voluminous economic, scientific, and statistical data. The silence regarding such matters in the Eighty-sixth Congress is itself evidence that Congress, in enacting
Moreover, our decision in Fibreboard Paper Prods. Corp., supra, implicitly recognizes the legitimacy of work preservation clauses like that involved here. Indeed, in the circumstances presented in Fibreboard, we held that bargaining on the subject was made mandatory by
“Industrial experience is not only reflective of the interests of labor and management in the subject matter but is also indicative of the amenability of such subjects to the collective bargaining process.
Experience illustrates that contracting out in one form or another has been brought, widely and successfully, within the collective bargaining framework. Provisions relating to contracting out exist in numerous collective bargaining agreements, and ‘[c]ontracting out work is the basis of many grievances; and that type of claim is grist in the mills of the arbitrators.’ United Steelworkers v. Warrior & Gulf Nav. Co., 363 U. S. 574, 584.”
See Local 24, Teamsters Union v. Oliver, 358 U. S. 283, 294. It would therefore be incongruous to interpret
Finally, important parts of the historic accommodation by Congress of the powers of labor and management are
III.
The determination whether the “will not handle” sentence of Rule 17 and its enforcement violated
That the “will not handle” provision was not an unfair labor practice in these cases is clear. The finding of the
Similarly, the Union‘s maintenance of the provision was not a violation of
The judgment is affirmed in No. 110, and reversed in No. 111.
It is so ordered.
APPENDIX TO OPINION OF THE COURT.
The relevant provisions of the
8 (b) It shall be an unfair labor practice for a labor organization or its agents—
. . . . .
(4) (i) to engage in, or to induce or encourage any individual employed by any person engaged in commerce or in an industry affecting commerce to engage in, a strike or a refusal in the course of his employment to use, manufacture, process, transport, or otherwise handle or work on any goods, articles, materials, or commodities or to perform any services; or (ii) to threaten, coerce, or restrain any person engaged in commerce or
(A) forcing or requiring any employer or self-employed person . . . to enter into any agreement which is prohibited by section 8 (e);
(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;
. . . . .
(e) 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 unenforcible and void: Provided, That nothing in this subsection (e) shall apply to an agreement between a labor organization and an employer in the construction industry relating to the contracting or subcontracting of work to be done at the site of the construction, alteration, painting, or repair of a building, structure, or other work: Provided further, That for the purposes of this subsection (e) and section 8 (b) (4) (B) the terms “any employer,” “any person engaged in commerce or an industry affecting commerce,” and “any person” when used in relation to the terms “any other producer, processor, or manufacturer,” “any other em-
ployer,” or “any other person” shall not include persons in the relation of a jobber, manufacturer, contractor, or subcontractor working on the goods or premises of the jobber or manufacturer or performing parts of an integrated process of production in the apparel and clothing industry: Provided further, That nothing in this Act shall prohibit the enforcement of any agreement which is within the foregoing exception.
Memorandum of MR. JUSTICE HARLAN.
In joining the Court‘s opinion, I am constrained to add these few words by way of underscoring the salient factors which, in my judgment, make for the decision that has been reached in these difficult cases.
1. The facts as found by the Board and the Court of Appeals show that the contractual restrictive-product rule in question, and the boycott in support of its enforcement, had as their sole objective the protection of union members from a diminution of work flowing from changes in technology. Union members traditionally had performed the task of fitting doors on the jobsite, and there is no evidence of any motive for this contract provision and its companion boycott other than the preservation of that work. This, then, is not a case of a union seeking to restrict by contract or boycott an employer with respect to the products he uses, for the purpose of acquiring for its members work that had not previously been theirs.
2. The only question thus to be decided, and which is decided, is whether Congress meant, in enacting
3. Because of the possibly profound impacts that the answer to this question may have upon labor-management
4. It is recognized by court and counsel on both sides that the legislative history of
5. We are thus left with a legislative history which, on the precise point at issue, is essentially negative, which shows with fair conclusiveness only that Congress was not squarely faced with the problem these cases present. In view of Congress’ deeр 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
MR. JUSTICE STEWART, whom MR. JUSTICE BLACK, MR. JUSTICE DOUGLAS, and MR. JUSTICE CLARK join, dissenting.
The Union‘s boycott of the prefitted doors clearly falls within the express terms of the federal labor law, which makes such conduct unlawful when “an object thereof” is “forcing or requiring any person to cease using . . . the products of any other . . . manufacturer . . . .”1 And the collective bargaining provision that authorizes such a boycott likewise stands condemned by the law‘s prohibition of any agreement whereby an employer “agrees to cease or refrain from handling . . . any of the products of any other employer . . . .”2 The Court undertakes a protracted review of legislative and decisional history in an effort to show that the clear words of the statute should be disregarded in these cases. But the fact is that the relevant history fully confirms that Congress meant what it said, and I therefore dissent.
The Court concludes that the Union‘s conduct in these cases falls outside the ambit of
It is, of course, true that courts have distinguished “primary” and “secondary” activities, and have found the former permitted despite the literal applicability of
In the interim between the passage of
In 1932 Congress reversed Duplex and its progeny by passing the Norris-LaGuardia Act. See Drivers’ Union v. Lake Valley Co., 311 U. S. 91, 100-103; United States v. Hutcheson, 312 U. S. 219, 229-231, 235-237. But in enacting the Taft-Hartley Act in 1947, 61 Stat. 136, Congress clearly provided that, quite apart from the antitrust laws or the Norris-LaGuardia Act, a product boycott of the kind involved in these cases was to be an unfair labor practice.
A proper understanding of the purpose of Congress in enacting
“Our holding means that the same labor union activities may or may not be in violation of the Sherman Act, dependent upon whether the union acts alone or in combination with business groups. That, it is argued, brings about a wholly undesirable result—one which leaves labor unions free to engage in conduct which restrains trade. But the desirability of such an exemption of labor unions is a question for the determination of Congress.” 325 U. S., at 810.
Congress responded when it enacted the Taft-Hartley Act. Although there have been differing views within the Court as to the scope of labor unions’ exemption from the antitrust laws,7 the Court in Allen Bradley had plainly stated that a work preservation product boycott by a union acting alone fell within that exemption. Two years after the Allen Bradley decision, the 80th Congress prohibited such product boycotts, but did so through the Taft-Hartley Act rather than by changing the antitrust
“Under paragraph (A) strikes or boycotts, or attempts to induce or encourage such action, are made violations of the act if the purpose is to force an employer or оther person to cease using, selling, handling, transporting, or otherwise dealing in the products of another, or to cease doing business with any other person. Thus, it would not be lawful for a union to engage in a strike against employer A for the purpose of forcing that employer to cease doing business with employer B; nor would it be lawful for a union to boycott employer A because employer A uses or otherwise deals in the goods of or does business with employer B (with whom the union has a dispute). This paragraph also makes it an unfair labor practice for a union to engage in the type of secondary boycott that has been conducted in New York City by local No. 3 of the IBEW, whereby electricians have refused to install electrical products of manufacturers employing electricians who are members of some labor organization other than local No. 3. (See . . . Allen Bradley Co. v. Local Union No. 3, I. B. E. W., 325 U. S. 797.)”9
This clear expression of legislative intent is confirmed by the floor debates.10 It is entirely understandable that
Although it was deeply concerned with the extensive restraints on trade caused by product boycotts, the 80th Congress specifically declined to amend the antitrust laws to reach the Allen Bradley type of secondary
The Court seeks to avoid the thrust of this legislative history stemming from Allen Bradley by suggesting that in the present cases, the product boycott was used to preserve work opportunities traditionally performed by the Union, whereas in Allen Bradley the boycott was originally designed to create new job opportunities. But it is misleading to state that the union in Allen Bradley used the product boycott as a “sword.” The record in that case establishes that the boycott was undertaken for the defensive purpose of restoring job opportunities lost in the depression. Moreover, the Court is unable to cite anything in Allen Bradley, or in the Taft-Hartley Act and its legislative history, to support a distinction in the applicability of
The courts and the National Labor Relations Board fully recognized that Congress had intended to ban product boycotts along with other forms of the secondary boycott, and that it had not distinguished between “good” and “bad” secondary boycotts.12 In a 1949 decision involving
“[T]he validity of a restrictive agreement challenged under 8 (e) must be considered in terms of whether that agreement, if enforced by prohibited means, would result in an unfair labor practice under Section 8 (b)(4)(B). Clearly, there is little point and no logic in declaring an agreement lawful under 8 (e), but in finding its enforcement condemned under 8 (b)(4)(B) . . . .”
Since, as has been shown, the product boycott enforced by the union in the cases before us violates
The content of the construction industry proviso to
“It should be particularly noted that the proviso relates only and exclusively to the contracting or subcontracting of work to be done at the site of the construction. The proviso does not exempt from
section 8 (e) agreements relating to supplies or other products or materials shipped or otherwise transported to and delivered on the site of the construction.”18
The Court indeed recognizes that the
Finally, the Court‘s reliance on Fibreboard Paper Prods. Corp. v. Labor Board, 379 U. S. 203, is wholly misplaced. That case involved an employer‘s use of workers hired by an independent contractor to perform in its own plant maintenance work formerly done by its own employees. This reassignment of work was held by the Court to be a mandatory subject of collective bargaining. The circumscribed nature of the decision is established by the Court‘s careful observation that
“The Company‘s decision to contract out the maintenance work did not alter the Company‘s basic operation. The maintenance work still had to be performed in the plant : the Company merely replaced existing employees with those of an independent contractor to do the same work under similar conditions of employment. Therefore, to require the employer to bargain about the matter would not significantly abridge his freedom to manage the business.” 379 U. S., at 213.
The relevant legislative history confirms and reinforces the plain meaning of the statute and establishes that the Union‘s product boycott in these cases and the agreement authorizing it were both unfair labor practices. In deciding to the contrary, the Court has substituted its own notions of sound labor policy for the word of Congress. There may be social and economic arguments for changing the law of product boycotts established in
I respectfully dissent.
