Plumbers & Pipefitters v. Plumbers & PipefittersPlumbers & Pipefitters v. Plumbers & Pipefitters
Jonathan G. Axelrod argued the cause for respondent Local 334, United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada. With him on the brief were Hugh J. Beins, and Andrew F. Zazzali, Jr.
JUSTICE BRENNAN delivered the opinion of the Court.
Section 301 (a) of the Labor Management Relations Act, 1947 (the Taft-Hartley Act) provides jurisdiction in the federal district courts over “[s]uits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce as defined in this chapter, or between any such labor organizations.” 61 Stat. 156,
I
Respondent Local 334, United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada (Local 334 or respondent), was a labor organization chartered by and affiliated with petitioner United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada (International or United Association), an international labor organization.1 Composed of both plumbers and pipefitters in Morris County, N. J., Local 334 was one of 27 New
When the locals declined to agree to the International‘s plan,3 the International issued an order of consolidation on August 4, 1977, based on the proposed plan, pursuant to § 86 of the constitution of the United Association. That section, entitled “Consolidation of Locals,” provides:
“Whenever, in the judgment of the General President, it is apparent that there is a superfluous number of Local Unions in any locality, and that a consolidation would be for the best interest of the United Association, locally or at large, he shall have the power to order Local Unions to consolidate and to enforce the consolidation of said Local Unions, or said territory in one or more Local Unions, provided such course received the sanction of the General Executive Board.” App. 25.
After receiving no response to a letter sent to the General Executive Board requesting a stay of the order pending appeal,
The International removed the case to the United States District Court for the District of New Jersey, pursuant to
On appeal, the United States Court of Appeals for the Third Circuit, sua sponte, raised the question of federal-court jurisdiction under § 301 (a) and requested supplemental briefing on that issue from the parties. 628 F. 2d 812, 813 (1980). After canvassing treatment of this issue by other Courts of Appeals, the court held that “[s]uits concerning intra-union matters that do not have a significant impact on labor-management relations or industrial peace are outside the scope of § 301 (a).” Id., at 820. Examining Local 334‘s allegations in its complaint, the court concluded that any alleged potential effect of the order of consolidation on labor-management relations or industrial peace would not pass the “significant impact” test and that the District Court therefore lacked jurisdiction under § 301 (a). Ibid. Accordingly, the court vacated the judgment of the District Court and remanded with instructions to remand the case to the state court. Ibid. We granted the International‘s petition for certiorari, 449 U. S. 1123 (1981), to resolve this important question of labor law. We reverse.
II
Section 301 (a) establishes federal district court jurisdiction for “[s]uits for violation of contracts . . . between any . . . labor organizations [representing employees in an industry affecting commerce as defined in this chapter].”
We have also noted that the prevailing state-law view is that a union constitution is a contract. Machinists v. Gonzales, 356 U. S. 617, 618-619 (1958) (discussing that aspect of union constitution constituting a contract between members and union). In particular, the view of a union constitution as a contract between parent and local unions was widely held in the States around the time § 301 (a) was enacted. See, e. g., Locals 1140 and 1145 v. United Electrical, Radio and Machine Workers of America, 232 Minn. 217, 221-222, 45 N. W. 2d 408, 411 (1950); International Union of United Brewery, Flour, Cereal, Soft Drink & Distillery Workers of America, C. I. O. v. Becherer, 4 N. J. Super. 456, 459, 67 A. 2d 900, 901, cert. denied, 3 N. J. 374, 70 A. 2d 537 (1949);
Second, just as a union constitution is a “contract” within the plain meaning of § 301 (a), so too is it clear that United Association and Local 334 are “labor organization[s] representing employees in an industry affecting commerce as defined in this chapter.” As defined in the Act,
“any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.”
We have entertained numerous cases brought under § 301 (a) where one of the parties was an international union, see, e. g., Automobile Workers v. Hoosier Cardinal Corp., 383 U. S. 696 (1966), or a local union, see, e. g., Drake Bakeries, Inc. v. Bakery & Confectionery Workers, 370 U. S. 254 (1962). Indeed, in Carbon Fuel Co. v. Mine Workers, we did not even pause to question the existence of § 301 (a) jurisdiction in a suit brought by a coal company against an international union, an affiliated district union, and three affiliated local unions. 444 U. S., at 214.
If the plain meaning of the “contracts between labor organizations” clause of § 301 (a) supports jurisdiction in the instant case, its legislative history hardly upsets such an interpretation.
Relying primarily on decisions from other Courts of Appeals, the Court of Appeals below was “persuaded by the view that disputes between local and parent unions must involve events which potentially have a significant impact on labor-management relations or industrial peace in order for there to be jurisdiction under § 301 (a).” 628 F. 2d, at 818. It is no doubt true that the primary purpose of the Taft-Hartley Act was “to promote the achievement of industrial peace through encouragement and refinement of the collective bargaining process.” Charles Dowd Box Co. v. Courtney, 368 U. S. 502, 509 (1962); see Textile Workers v. Lincoln Mills, 353 U. S. 448, 452-455 (1957). As the Senate observed, “[s]tatutory recognition of the collective agreement as a valid, binding, and enforceable contract . . . will promote a higher degree of responsibility upon the parties to such agreements, and will thereby promote industrial peace.” S. Rep. No. 105, 80th Cong., 1st Sess., 17 (1947), 1 Leg. Hist., at 423.
Respondent goes even further than the Court of Appeals view that only disputes with a “significant impact” on labor-management relations should trigger § 301 (a) jurisdiction, arguing that § 301 (a) should never extend to disputes arising under union constitutions because “[t]he 80th Congress clearly did not intend to intervene in the internal affairs of labor unions.” Brief for Respondent 16-17. In support of its position, respondent cites several provisions of the Labor Management Relations Act,11 some general statements in the legislative history,12 and our decision in NLRB v. Allis-Chalmers Mfg. Co., 388 U. S. 175, 184 (1967), where we observed in connection with § 8 (b) (2) of the Act13 that “Congress
Reversed.
CHIEF JUSTICE BURGER, dissenting.
The Court holds today that union constitutions are “contracts between . . . labor organizations” within the meaning of § 301 (a) of the Labor Management Relations Act,
I agree with the Court, of course, that a union and its locals are “labor organizations” as defined by § 2 (5) of the National
As we recently noted in Rubin v. United States, 449 U. S. 424, 430 (1981), “[w]hen we find the terms of a statute unambiguous, judicial inquiry is complete,” unless unusual circumstances are present. One of those circumstances may be a clear indication in the legislative history that Congress intended some other meaning. Here, however, no such indication is present. The Court recognizes that “there is no specific legislative history on that phrase to explain what
The Court attempts to explain these passages by saying that Congress, in enacting § 301 (a), merely was providing for the “enforcement . . . of freely entered into agreements . . . .” Ante, at 626. This is no answer when the Court also holds that the substantive law applicable “‘is federal law, which the courts must fashion from the policy of our national labor laws.‘” Ante, at 627 (quoting Textile Workers v. Lincoln Mills, 353 U. S. 448, 456 (1957)). Similarly, remarks in Committee Reports and on the floor regarding the accountability of unions for their agreements were all made in relation to collective-bargaining agreements with employers; there is no reference to a local‘s invoking the jurisdiction of the federal courts to enforce the provisions of union constitutions. Thus, the legislative history is fully consistent with holding that a union constitution is not a contract between labor organizations as such.
It is not irrelevant that, 12 years after the adoption of the Labor Management Relations Act in 1947, Congress expressly chose to engage in regulation of internal union matters by enacting the Labor-Management Reporting and Disclosure Act of 1959, 73 Stat. 519 (codified at
When examined in terms of its plain meaning, its legislative history, and the whole fabric of federal labor law, § 301 (a) clearly does not confer jurisdiction over disputes under union constitutions. Moreover, the Court‘s decision today invites resort to the federal courts for cases better resolved outside the federal judiciary. Accordingly, I dissent.
JUSTICE STEVENS, with whom JUSTICE REHNQUIST joins, dissenting.
Congress has defined the essential elements of the Nation‘s labor policy by creating certain basic federal rights and providing procedures for their enforcement. To enable the federal
In Textile Workers v. Lincoln Mills, supra, the Court was presented with the question whether § 301 (a), which “is drafted in terms which appear to be exclusively jurisdictional,” Textile Workers Union v. American Thread Co., 113 F. Supp. 137, 139 (Mass. 1953), was meant by Congress to be an authorization for “federal courts to fashion a body of federal law for the enforcement of . . . collective bargaining agreements. . . .” 353 U. S., at 451. After examining the legislative history of § 301, the Court concluded that Congress intended to make collective-bargaining agreements between unions and employers binding on both parties and, more importantly, to provide for a “procedure for making such agreements enforceable in the courts by either party.” Id., at 453.1
Neither of the basic conclusions emerging from Lincoln Mills is applicable to suits on contracts between labor unions. First, there is no indication in the statute that Congress has concluded that disputes over contracts between unions present the threat to industrial peace sufficient to justify Congress’ exercise of its power under the Commerce Clause.5
As the Court construes the statute, however, it purports to confer authorization on federal courts to create substantive
The conclusion that suits on contracts between labor unions are not cases “arising under” federal law is further illustrated by the choice of law that district courts would have to make in such cases. The Court states, ante, at 627, that courts must follow the command of Lincoln Mills by fashioning the federal law by looking to the “‘policy of our national labor laws.‘” See Lincoln Mills, 353 U. S., at 456. But in explaining the conclusion that federal interests justified the creation of a body of law to govern the enforceability of collective-bargaining agreements, the Lincoln Mills Court indicated that the broad lawmaking powers would be limited and guided by “the penumbra of express statutory mandates” and “by looking at the policy of the legislation and fashioning a remedy that will effectuate that policy.” Id., at 457. Five years later, in Teamsters v. Lucas Flour Co., the Court indicated that this national policy was best served by the establishment of a uniform body of law applicable to § 301 suits and held that state courts deciding § 301 suits must apply the federal common law.11 In the context presented by
I believe that this case presents no substantive federal question.13
I respectfully dissent.
Notes
“The chief advantage which an employer can reasonably expect from a collective labor agreement is assurance of uninterrupted operation during the term of the agreement. Without some effective method of assuring freedom from economic warfare for the term of the agreement, there is little reason why an employer would desire to sign such a contract.” S. Rep. No. 105, 80th Cong., 1st Sess., 16 (1947) (hereinafter 1947 Senate Report), 1 Legislative History, at 422.
Because agreements to arbitrate are the quid pro quo of a no-strike clause, the Court concluded that Congress intended agreements to arbitrate to be enforceable under § 301. 353 U. S., at 455.
“When industries organize themselves on a national scale, making their relation to interstate commerce the dominant factor in their activities, how can it be maintained that their industrial labor relations constitute a forbidden field into which Congress may not enter when it is necessary to protect interstate commerce from the paralyzing consequences of industrial war? We have often said that interstate commerce itself is a practical conception. It is equally true that interferences with that commerce must be appraised by a judgment that does not ignore actual experience.
“Experience has abundantly demonstrated that the recognition of the right of employees to self-organization and to have representatives of their own choosing for the purpose of collective bargaining is often an essential condition of industrial peace. Refusal to confer and negotiate has been one of the most prolific causes of strife.” Id., at 41-42.
Thus 20 years later, when Lincoln Mills was decided, it was well settled that labor-management relations had an effect on interstate commerce. Moreover, although the legislative history of the LMRA is “cloudy and confusing” as to the question whether § 301 was substantive or jurisdictional, the legislative history of the statute and of § 301 in particular clearly indicates that the enforcement of collective-bargaining agreements has an effect on industrial peace and therefore on interstate commerce. The primary purpose of the Act was “to promote the achievement of industrial peace through encouragement and refinement of the collective bargaining process.” Charles Dowd Box Co. v. Courtney, 368 U. S. 502, 509. With respect to the subject matter of § 301 the Senate Report stated:
“[T]o encourage the making of agreements and to promote industrial peace through faithful performance by the parties, collective agreements affecting interstate commerce should be enforceable in the Federal courts.
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“Statutory recognition of the collective agreement as a valid, binding, and enforceable contract is a logical and necessary step. It will promote a higher degree of responsibility upon the parties to such agreements, and will thereby promote industrial peace.” 1947 Senate Report, at 16-17, 1 Legislative History, at 422-423.
“To be sure, what Congress did in 1959 does not establish what it meant in 1947. However, as another major step in an evolving pattern of regulation of union conduct, the 1959 Act is a relevant consideration. Courts may properly take into account the later Act when asked to extend the reach of the earlier Act‘s vague language . . . .”
Assuming, arguendo, that § 301 (a) is vague, the adoption of provisions regulating internal union matters becomes relevant.
The Court did not rely on the view that § 301 had the effect of making a labor union a federal entity comparable to a national bank, with the consequence that a potential federal question concerning its authority might arise in any litigation to which it was a party, thus providing a basis for federal jurisdiction whenever a union was a litigant. See Osborn v. Bank of the United States, 9 Wheat. 738; Lincoln Mills, 353 U. S., at 470-473 (Frankfurter, J., dissenting).“Section 301 differs from the Senate bill in two respects. Subsection (a) provides that suits for violation of contracts between labor organizations, as well as between a labor organization and an employer, may be brought in the Federal courts.” 93 Cong. Rec. 6445 (1947), 2 Legislative History, at 1543.
Although this sentence refers also to the clause relating to agreements between a labor organization and an employer—a clause which is more than a grant of jurisdiction—the additional legislative history with respect to such agreements provides some justification for concluding that that portion of § 301 is substantive. No such justification is present, however, with respect to agreements between labor unions.
“[T]he subject matter of § 301 (a) `is peculiarly one that calls for uniform law.’ Pennsylvania R. Co. v. Public Service Comm‘n, 250 U. S. 566, 569; see Cloverleaf Butter Co. v. Patterson, 315 U. S. 148, 167-169. The possibility that individual contract terms might have different meanings under state and federal law would inevitably exert a disruptive influence upon both the negotiation and administration of collective agreements.
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“The importance of the area which would be affected by separate systems of substantive law makes the need for a single body of federal law particularly compelling. The ordering and adjusting of competing interests through a process of free and voluntary collective bargaining is the keystone of the federal scheme to promote industrial peace. State law which frustrates the effort of Congress to stimulate the smooth functioning of that process thus strikes at the very core of federal labor policy. With due regard to the many factors which bear upon competing state and federal interests in this area, California v. Zook, 336 U. S. 725, 730-731; Rice v. Santa Fe Elevator Corp., 331 U. S. 218, 230-231, we cannot but conclude that in enacting § 301 Congress intended doctrines of federal labor law uniformly to prevail over inconsistent local rules.” 369 U. S., at 104-105.
“Where the federal courts have to create a body of law, we don‘t believe that the normal course is to start from scratch. It‘s a process of incorporation except in the case of incompatibility. It‘s difficult for me to visualize an incompatibility between federal law and state law if the dispute is on whether a local union which owes another local union that is unrelated $500 has in fact violated a promissory note.” Tr. of Oral Arg. 16.
“(b) It shall be an unfair labor practice for a labor organization and its agents—
“(2) to cause or attempt to cause an employer to discriminate against an employee in violation of subsection (a) (3) of this section or to discriminate against an employee with respect to whom membership in such organization has been denied or terminated on some ground other than his failure to tender the periodic dues and the initiation fees uniformly required as a condition of acquiring or retaining membership . . . .”
This case is important not because of its unremarkable holding that a union constitution is a contract but because the case is a striking example of the easy way in which this Court enlarges the power of the Federal Government.