ORDER OF RAILROAD TELEGRAPHERS ET AL. v. CHICAGO & NORTH WESTERN RAILWAY CO.
No. 100
Supreme Court of the United States
Argued March 1-2, 1960. - Decided April 18, 1960.
362 U.S. 330
Carl McGowan argued the cause for respondent. With him on the brief was Jordan Jay Hillman.
Clarence M. Mulholland, Edward J. Hickey, Jr. and James L. Highsaw, Jr. filed a brief for the Railway Labor Executives’ Association, as amicus curiae, urging reversal.
Briefs of amici curiae urging affirmance were filed by Austin L. Roberts, Jr. for the National Association of Railroad and Utilities Commissioners, and by Walter J. Cummings, Jr. for the Bureau of Information of Eastern Railways et al.
MR. JUSTICE BLACK delivered the opinion of the Court.
According to the verified complaint filed in a United States District Court in Illinois by the respondent, Chicago & North Western Railway Company, against the petitioners, the Order of Railroad Telegraphers and its officials, “This is an action for injunction to restrain and enjoin the calling and carrying out of a wrongful and unlawful strike or work stoppage on plaintiff‘s railroad.” Section 4 of the Norris-LaGuardia Act provides, however, that “No court of the United States shall have jurisdiction to issue any restraining order or temporary or permanent injunction in any case involving or growing out of any labor dispute to prohibit any person or persons . . . from . . . (a) Ceasing or refusing to perform any work or to remain in any relation of employment; . . .”1 The main question in this case then was, and still is, whether this prohibition of the Norris-LaGuardia Act bars an injunction in the circumstances of this case.
Respondent railroad, owning and operating a rail system of over 9,000 miles in the States of Illinois, Wis-
“No position in existence on December 3, 1957, will be abolished or discontinued except by agreement between the carrier and the organization.”
The railroad took the position, according to its complaint, that this request did not constitute a “labor dispute under the Railway Labor Act,” that it did not raise a bargainable issue, and that the union had no right to protest
The union contended that the District Court was without jurisdiction to grant injunctive relief under the provisions of the Norris-LaGuardia Act because this case involved a labor dispute, and that the railroad had refused to negotiate in good faith on the proposed change in the agreement in violation of § 2, First, of the Railway Labor Act,
“No restraining order or injunctive relief shall be granted to any complainant who has failed to comply with any obligation imposed by law which is involved in the labor dispute in question, or who has failed to make every reasonable effort to settle such dispute either by negotiation or with the aid of any available governmental machinery of mediation or voluntary arbitration.”
29 U. S. C. § 108 .
See Brotherhood of Railroad Trainmen v. Toledo, P. & W. R. Co., 321 U. S. 50.
After hearings, the District Court found, so far as is relevant here, that the railroad “refused to negotiate, confer, mediate or otherwise treat with defendant Teleg-
On appeal the Court of Appeals did grant a permanent injunction upon its decision that “The District Court‘s finding that the proposed contract change related to ‘rates of pay, rules, or working conditions,’ and was thus a bargainable issue under the Railway Labor Act, is clearly erroneous.”3 It held that the Norris-LaGuardia Act did not apply to bar an injunction against this strike4 and
At the time of the District Court‘s decision, two States (South Dakota and Iowa) of the four in which the railroad had sought permission to institute its Central Agency Plan (the other two were Minnesota and Wisconsin) had granted permission and the plan was
We hold, with the District Court, that this case involves or grows out of a labor dispute within the meaning of the Norris-LaGuardia Act and that the District Court was without jurisdiction permanently to enjoin the strike.
Section 4 of the Norris-LaGuardia Act specifically withdraws jurisdiction from a District Court to prohibit any person or persons from “[c]easing or refusing to perform any work or to remain in any relation of employment” “in any case involving or growing out of any labor dispute” as “herein defined.”6 Section 13 (c) of the Act defines a labor dispute as including,
“any controversy concerning terms or conditions of employment, or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment, regardless of whether or not the disputants stand in the proximate relation of employer and employee.”7
Unless the literal language of this definition is to be ignored, it squarely covers this controversy. Congress made the definition broad because it wanted it to be broad. There are few pieces of legislation where the congressional hearings, committee reports, and the language in the legislation itself more clearly point to the necessity for giving an Act a construction that will protect the congressional policy the Act adopted. Section 2 of this Act specifies the public policy to be taken into
promptly placed in effect. Since then, we are given to understand, the commissions in the remaining two States have issued orders approving the plan.
Plainly the controversy here relates to an effort on the part of the union to change the “terms” of an existing collective bargaining agreement. The change desired just as plainly referred to “conditions of employment” of the railroad‘s employees who are represented by the union. The employment of many of these station agents inescapably hangs on the number of railroad stations that will be either completely abandoned or consolidated with other stations. And, in the collective bargaining world today, there is nothing strange about agreements that affect the permanency of employment. The District Court‘s finding that “[c]ollective bargaining as to the length or term of employment is commonplace,” is not challenged.
We cannot agree with the Court of Appeals that the union‘s effort to negotiate about the job security of its members “represents an attempt to usurp legitimate managerial prerogative in the exercise of business judgment with respect to the most economical and efficient conduct of its operations.”10 The Railway Labor Act
In 1942 this Court held that when a railroad abandons a portion of its lines, the Interstate Commerce Commission has power to include conditions for the protection of displaced workers in deciding what “the public convenience and necessity may require.” We so construed the Interstate Commerce Act specifically on the basis that imposition of such conditions “might strengthen the national system through their effect on the morale and stability of railway workers generally.” Interstate Commerce Comm‘n v. Railway L. Exec. Assn., 315 U. S. 373, 378, citing United States v. Lowden, 308 U. S. 225. The brief for the railroad associations there called our attention to testimony previously given to Congress that as early as 1936 railroads representing 85% of the mileage of the country had made collective bargaining agreements
The railroad has argued throughout the proceedings that the union‘s strike here may be enjoined, regardless of Norris-LaGuardia, because its effort to bargain about the consolidation and abandonment of railroad stations is unlawful. It is true that in a series of cases where collective bargaining agents stepped outside their legal duties and violated the Act which called them into being, we held that they could be enjoined.14 None of these cases, however, enjoined conduct which the Norris-LaGuardia Act withdrew from the injunctive power of the federal courts except the Chicago River case which held
The union contends that, whether the state rulings were mandatory or permissive, the States are without authority to order an abandonment of stations that would conflict with collective bargaining agreements made or to be made between the railroad and the union. Whether this contention is valid or not we need not decide since there is no such conflict before us. And the District Court expressly refused to find that the union‘s proposal was prompted by the railroad‘s action in seeking state authority to put its Central Agency Plan into effect. Instead, the District Court specifically found that the dispute grew out of the failure of the parties to reach an agreement on the contract change proposed by the union.
Only a word need be said about the railroad‘s contention that the dispute here with the union was a minor one relating to an interpretation of its contract and therefore one that the Railway Labor Act requires to be heard by the National Railroad Adjustment Board. We have held that a strike over a “minor dispute” may be enjoined in order to enforce compliance with the Railway Labor Act‘s requirement that minor disputes be heard by the Adjustment Board. Brotherhood of Railroad Trainmen v. Chicago River & I. R. Co., 353 U. S. 30. But it is impossible to classify as a minor dispute this dispute relating to a major change, affecting jobs, in an existing collective bargaining agreement, rather than to mere infractions or interpretations of the provisions of that agreement. Particularly since the collective bargaining agreement which the union sought to change was a result of mediation under the Railway Labor Act, this is the type of major dispute that is not governed by the Adjustment Board.
There are other subsidiary questions raised with reference to the validity of a second 30-day restraining order issued by the district judge and an injunction pending appeal under Rule 62 (c) of the Federal Rules of Civil Procedure. But since we have determined the main controversy between the parties, we think it inadvisable to decide either of these questions now. We intimate no opinion concerning either at this time.
It is so ordered.
MR. JUSTICE CLARK, dissenting.
The respondent, suffering from financial headaches, conducted an efficiency survey of its operations. This indicated that it was carrying considerable dead weight on its payroll in the form of local, one-man stations. Some of its local agents worked as little as 12 minutes a day and the average daily work time on its one-man stations was only 59 minutes. All drew a full day‘s pay. In fact, the pay for time worked, it was found, ran in some cases as high as $300 per hour. Meanwhile the railroad was facing a slow death for lack of funds—all to the ultimate but certain detriment of the public, the employees and the management. It then proposed—and, after hearings, four States approved—a consolidation of work so that an agent would have sufficient duties to perform to earn a full day‘s pay. This would also permit the railroad, without any curtailment of its service to the public, to reduce its employee force over its entire system by several hundred agents. It proposed to negotiate with the union as to the severance pay and other perquisites for those agents whose services would no longer be needed. This the union refused to do, demanding that before any agent‘s position be abolished the railroad obtain its consent. The union offered but one alternative: “comply with” its demand, or suffer a “strike.” The railroad, in the face of such a ukase, brought this suit.
Today the Court tells the railroad that it must bargain with the union or suffer a strike. The latter would be
I do not believe that the Congress intended to put the railroads in such a situation. In fact, its over-all purpose has been to prevent the devastating effects of strikes from paralyzing our transportation systems, the efficient operation of which is so vital to the public welfare. As I read the Interstate Commerce Act—the provisions of which were reaffirmed as late as the Transportation Act of 1958—the Congress told the railroads to go to the States—not the union—before abandoning or consolidating its local stations. Respondent went to the States and obtained their approval. The Court today gives to the union a veto power over this action of the States. Until this power is removed, the railroads will continue to be plagued with this situation—so foreign to the concept of a fair day‘s pay for a fair day‘s work, which has been the basis of union labor‘s great achievements.
For this reason, as well as those so ably enumerated by my Brother WHITTAKER in his dissent, which I join, I am obliged to disagree with the Court. Perhaps the Congress will be obliged, in the face of this ruling, to place the solution of such problems within the specific power of the Interstate Commerce Commission or under the Railway Labor Act, each of which, as well as the courts, is today held impotent.
The Court concludes, as I read its opinion, that the Union‘s demand for a covenant that no existing position may be abolished without its consent was a lawfully bargainable one under the Railway Labor Act; that the Union did not, by its demand, attempt unlawfully to “set itself up in defiance of” public regulatory orders; that the “union merely asked for a contractual right to bargain with the railroad about . . . abandon[ing] stations . . . and thus abolish[ing] jobs“; that “[e]ven if a Norris-LaGuardia ‘labor dispute’ could not arise out of an unlawful bargaining demand . . . the union‘s proposal here was not unlawful,” and that the Norris-LaGuardia Act deprived the court of jurisdiction to enjoin the threatened strike to enforce acceptance of the Union‘s demand.
With all deference, I believe that these conclusions are contrary to the admitted or indubitable facts in the record, to the provisions and policies of Acts adopted by Congress, and also to principles established by many decisions of this Court; and being fearful that the innovation and reach of the Court‘s conclusions will be destructive of congressional policy and injurious to the public interest, I feel compelled to state my dissenting views.
Inasmuch as I read the record somewhat differently than does the Court, my first effort will be to make a plain and chronological statement of the relevant facts.
The Chicago and North Western Railway Company (“North Western“) is a major interstate common carrier by railroad. The Order of Railroad Telegraphers (“Union“) is a railway labor union, certified by the National Mediation Board as the representative of the
Although originally an efficient and profitable railroad, North Western, in more recent years, failed both to maintain and to modernize its lines, facilities and equipment, and also permitted many outmoded, inefficient and wasteful practices to continue—producing the highest ratio of wage and salary expense to the revenue dollar of all major American railroads—resulting ultimately in its inability effectively to compete with new forms of transportation, or even with modernized railroads. In consequence, its net revenues so steadily and extensively declined that it lost $8,000,000 in the first quarter of 1956, and this so reduced its cash position that its payrolls of $330,000 per day to its 18,000 employees were in jeopardy.
Alarmed by these conditions, North Western‘s new managers undertook a number of steps in the spring of 1956 to improve its physical condition and competitive position, including the elimination of many outmoded, costly and wasteful practices. It then had several hundred “one-man” stations, principally located on branch lines from which—due to lack of need, occasioned by the advent of paved roads and motorized vehicles—all passenger trains and many freight trains had been removed and over which the few remaining freight trains passed at hours when many of the agents were not even on
Accordingly, North Western filed petitions with the Public Utility Commissions of South Dakota, Iowa, Minnesota and Wisconsin to effectuate its Central Agency Plan. The first of those petitions was filed with the South Dakota Commission on November 5, 1957, asking authority to effectuate the Central Agency Plan with respect to 69 “one-man” stations in that State. Hearings were held by that Commission beginning November 26, 1957, and ending January 17, 1958. The Union appeared in that proceeding, presented evidence, a brief and an oral argument, in opposition to the petition. It contended, among other things, that its existing bargaining agreement with North Western prohibited abolishment of any agency jobs without its consent. On May 9, 1958,
“That the maintenance of full-time agency service at all of the subject stations, because of the lack of public need constitutes mismanagement and a dissipation of carrier‘s revenues which has and will impair its capacity to render adequate rail service to the public at reasonable rates . . . .”3
Thereupon, the Commission, electing to act under a South Dakota statute authorizing it to order changes to be made in station operations where necessary in the public interest, directed North Western to make the plan (establishing 16 central agency stations and abolishing 53 full-time agency positions) effective immediately.
“No position in existence on December 3, 1957, will be abolished or discontinued except by agreement between the carrier and the Organization.”
North Western responded the next day, saying that it did not consider the request to be a proper subject of bargaining,5 but it offered, without waiving its position, to meet with the Union‘s officers and to discuss the matter further. Conferences were thereafter held by the parties but no agreement was reached, and the Union invoked mediation under the Railway Labor Act. On February 24, 1958, the National Mediation Board began its efforts to mediate the controversy, and its representative conducted a number of meetings between the parties to that end,6 but was not successful, and thereafter the
On July 10, the Union sent to its members a strike ballot under an accompanying letter.9 The vote was almost unanimous in favor of a strike, and, on August 18, the Union called a strike of its members to begin at 6 a. m. on August 21.10 A renewed proffer of
asked if there was any “possibility” of “working out these station closing matters and the discontinuance of the positions of these station agents” either on a South Dakota or a system basis. The Union‘s president asked his general counsel for his views on the matter. The latter replied “I think we are too far apart,” and North Western‘s official then said “I want you to know that my door is always open.”
The Union‘s president testified at the subsequent District Court trial that “. . . the only alternative which up to the present I have offered the North Western Railroad was to comply with this rule or strike.”
On August 20, North Western filed a complaint against the Union and various of its officials in the United States District Court for the Northern District of Illinois, alleging that the Union‘s contract demand was not a lawfully bargainable subject under the
Congress, in comprehensively providing for the regulation of railroads, their transportation services and their employer-employee relations, has declared its policies in several related Acts, including Part 1 of the
By Part I of the
For the fair and firm effectuation of these policies, Congress has provided that issues respecting the propriety of an abandonment shall be determined by a public regulatory body. It has contemplated that the carrier shall propose to the proper regulatory body the abandonment of particular facilities or services and that, after notice and hearing—at which all persons affected, including employees and their union representatives, may appear and be heard—the public regulatory body shall determine whether the proposal is in the public interest, and its order, unless reversed on judicial review, shall be binding upon all persons. These procedures plainly exclude any right or power of a carrier, at its will alone, to effectuate, or of a labor union representing its employees
The Union argues, and the Court seems to find, that there is a basis for the claimed legality of the Union‘s demand in the provision of
”Provided, however, That no such transaction shall be approved by the Commission if such transaction will result in unemployment or displacement of employees of the carrier or carriers, or in the impairment of existing employment rights of said employees.”21 (Emphasis added.)
While the bill was in Conference, the Legislative Committee of the Interstate Commerce Commission sent a communication to Congress condemning the principle of the Harrington amendment in the following words:
“As for the [Harrington] proviso, the object of unifications is to save expense, usually by the saving of labor. Employees who may be displaced should, in the case of railroad unifications, be protected by some such plan as is embodied in the so-called ‘Washington agreement’ of 1936 between the railroad managements and labor organizations [providing for the mitigation of hardships by the payment of certain monetary benefits for a limited period to employees whose jobs are abolished by such approved unifications]. The proviso, by prohibiting any displacement of employees, goes much too far, and in the long run will do more harm than good to the employees.”22 (Emphasis added.)
Congress rejected the Harrington proviso in the form proposed. Yet, the Union‘s demand here is designed to accomplish the very purpose that Congress rejected. Of the Harrington proviso this Court said in Railway Labor
There is no dispute in the record that the carrier sought to bargain and agree with the Union upon matters in mitigation of hardships to employees displaced by the station abandonments. It offered to bargain about (1) transferring the agents affected to productive jobs, (2) limiting the job abolishments to an agreed number per year, and (3) paying supplemental unemployment benefits to the employees affected.23 Short of foregoing the station abandonments, this is all it lawfully could do. It is not suggested that it should have done more in this respect. Indeed, the Union refused even to discuss these proposals.24 Instead, as its president testified at the trial, the only “alternative” the Union “offered the North Western Railroad was to comply with this rule or strike.”25
This also answers the Court‘s argument that there is nothing in the
The Court fails to find any testimony in the record “that this union has set itself up in defiance of any state mandatory order.” Although, in my view, the question is not whether it has set itself up in defiance of any valid existing state mandatory order, but rather is whether it lawfully may demand, and force by a strike, acceptance of a covenant in derogation of the law; yet, in very truth, it “has set itself up in defiance,” or, at least, in derogation, of a “state mandatory order.” As earlier noted, the order of the South Dakota Commission—the validity of which cannot be questioned here—was a mandatory one. It directed the carrier to make the Central Agency Plan effective in that State and, thereunder, forthwith to abolish 53 full-time agency jobs. That order was entered on May 9, 1958, and if the Union‘s demand, that no job in existence on December 3, 1957, may be abolished without its consent, is a lawful one and may be enforced by a strike, then the South Dakota order is not only defied
Surely, in such circumstances, the carrier, in discharging its duty to safeguard the public interest,28 has a legal right to be free of a strike to force it to accept a demand which Congress has made unlawful. But there is no administrative remedy in such a case, and, hence, the legal right will be sacrificed, and Congress’ policies will be thwarted, unless a preventive judicial remedy is available. Certainly Congress did not intend to create and “to hold out to [the carrier and the public] an illusory right for which it was denying them a remedy.” Graham v. Brotherhood of Firemen, 338 U. S. 232, 240.
Nor does the
In Brotherhood of Railroad Trainmen v. Chicago River & Indiana R. Co., 353 U. S. 30, a union threatened a strike to force a carrier to accept demands which Congress had placed within the exclusive jurisdiction of the Railroad Adjustment Board. Holding that the demands were in
“We hold that the
Norris-LaGuardia Act cannot be read alone in matters dealing with railway labor disputes. There must be an accommodation of that statute and theRailway Labor Act so that the obvious purpose in the enactment of each is preserved. We think that the purposes of these Acts are reconcilable.” 353 U. S., at 40.
And finding that the union‘s demands violated the provisions of the
There, as here, the union‘s demand was in derogation of the specific provisions of an Act of Congress, and here, as there, those specific provisions must “take precedence over the more general provisions of the
In Virginian Railway Co. v. System Federation No. 40, 300 U. S. 515, this Court held that a federal court could lawfully issue an injunction in a labor dispute that was governed by the specific provisions of a federal statute,
Steele v. Louisville & Nashville R. Co., 323 U. S. 192, involved the unlawful misuse by a union of the powers conferred upon it by the
“If, in spite of the Virginian, Steele, and Tunstall cases, supra, there remains any illusion that under the
Norris-LaGuardia Act the federal courts are powerless to enforce these rights, we dispel it now.” 338 U. S., at 240.
Brotherhood of Railroad Trainmen v. Howard, 343 U. S. 768, was an action to enjoin a union and a carrier from enforcing the provisions of a contract, made under the threat of a strike, that unlawfully deprived a class of railroad employees of legal rights which this Court held had been impliedly vouchsafed to them by the
Resting upon its conclusion that the Union‘s demand here was a lawful one, the Court relegates the Virginian, Steele, Tunstall, Graham and Howard cases to a footnote, and says, “None of these cases, however, enjoined conduct which the
It is to be noted that the Court does not say that the
Memorandum of MR. JUSTICE STEWART.
I have strong doubt as to the existence of federal jurisdiction in this case, for reasons well expressed by then Circuit Judge Minton, dissenting in Toledo, P. & W. R. Co. v. Brotherhood of Railroad Trainmen, 132 F. 2d 265, 272-274. See Brotherhood of Railroad Trainmen v. New York Central R. Co., 246 F. 2d 114, at 122 (dissenting opinion). If, however, the Federal District Court had jurisdiction, as all my Brethren seem to believe or at least assume, MR. JUSTICE WHITTAKER‘S dissenting opinion convincingly demonstrates for me that the District Court had power to issue an injunction.
Notes
Hearings were afterwards conducted upon the similar petitions before the Iowa, Minnesota and Wisconsin Commissions. The Union appeared in each of those proceedings and presented evidence, briefs and arguments in opposition to the petitions, but each was granted. The Iowa Commission found that the agents at the stations there involved worked an average of 1 hour and 14 minutes per day, a decrease of 28% since 1951, and that the estimated average workload under the Central Agency Plan would be 3 hours and 15 minutes per day. It said, inter alia, “Savings must be made by reducing or eliminating service no longer needed. The case before us is a proposal to reduce agency service to the level of actual need.” And it found that such was necessary “to insure efficiency, economy and adequate rail transportation.” The Union appealed from the orders of the respective Commissions to the courts of the respective States, but the Commission action was affirmed in each instance.
At a meeting between North Western‘s chief executive officer and the Union‘s president and its general counsel at Madison, Wisconsin, during the period of the mediation efforts, North Western‘s official
“However, it became evident at an early date that to meet this onslaught effectively would require strengthening of our Agreements. We must prevent a continuance of such a program.
“While we hope the commissions in other states will be more reasonable than the South Dakota Commission, we have no assurance that we will not soon see a repetition in other states of what has happened in South Dakota. . . .”
Of course, a holding here that mere unlawfulness under any law is enough to remove the strictures of the Norris-LaGuardia Act would require a modification or abandonment of our statement that “For us to hold, in the face of this legislation [the Clayton and Norris-LaGuardia Acts], that the federal courts have jurisdiction to grant injunctions in cases growing out of labor disputes, merely because alleged violations of the Sherman Act are involved, would run counter to the plain mandate of the [Norris-LaGuardia] Act and would reverse the declared purpose of Congress.” Milk Wagon Drivers’ Union v. Lake Valley Farm Products, Inc., 311 U. S. 91, 103. See also Lee Way Motor Freight v. Keystone Freight Lines, 126 F. 2d 931, 934.
See note 2 for the pertinent provisions of the National Transportation Policy.