The parties to this labor dispute ask us to determine the validity of an interest arbitration clause in a prehire collective bargaining agreement. Involved are (1) the unilateral repudiation of a collective bargaining agreement, (2) unfair labor charges against the company, (3) arbitration, (4) an arbitration award against the company, (5) a federal suit to enforce the arbitration award, (6) unfair labor charges against the union, (7) an appeal by the company, (8) intervention on appeal by the National Labor Relations Board (NLRB or Board), and (9) a requested stay of this appeal.
See
29 U.S.C. §§ 157-159,185 (National Labor Relations Act (NLRA); Labor Management Relations Act of 1947 (LMRA)).
1
The union invoked the district court’s jurisdiction under § 301 of the LMRA. The district court enforced the collective bargaining agreement in favor of the union,
I. FACTUAL BACKGROUND
Baylor Heating and Air Conditioning, Inc. (Company), defendant-appellant, and
The Company and the Union performed under this agreement without apparent incident until near the end of the agreement’s three-year term. In January 1987 the Union anticipated renewal of the agreement and advised the Company that it wished to amend the agreement. The Company had other ideas. On February 26, 1987 the Company advised the Union that it did not intend to sign a new agreement. Thereafter, the Company refused to negotiate with the Union.
The Union responded on March 6, 1987 by filing unfair labor charges with the NLRB. The Union charged that the Company refused to bargain in violation of section 8(a)(5) of the NLRA. See 29 U.S.C. § 158(a)(5). On April 14, 1987 the Acting Regional Director of the NLRB found no violation by the Company and refused to issue a complaint for unfair labor practices against the Company. The Union did not appeal this decision to the full Board.
Stymied by the Acting Regional Director, the Union in May 1987 invoked the collective bargaining agreement’s interest arbitration clause even though the agreement arguably had been terminated. 2 The Union submitted the dispute to the Adjustment Board (Arbitrator) for resolution. The Company, relying on the NLRB’s determination that it had committed no unfair labor practice when it repudiated the agreement, chose not to participate in proceedings before the Arbitrator. Not surprisingly, on June 24, 1987 the Arbitrator decided in favor of the Union. Without mentioning the Acting Regional Director’s action, the Arbitrator enforced the interest arbitration clause and ordered the Company to execute a new agreement with the Union beginning June 1, 1987 and ending June 30, 1991. The terms of agreement ordered by the Arbitrator were similar to the terms of the 1984 agreement. The Company did not file suit to vacate the Arbitrator’s decision or file unfair labor charges with the NLRB.
On October 13, 1987 the Union filed suit under section 301 of the LMRA to enforce the arbitration award.
See
29 U.S.C. § 185. On November 19, 1987 the Company filed unfair labor charges with the NLRB against the Union. The Company filed these charges after it had answered the complaint but before the district judge had ruled. The Company charged that the Union caused the Company to discriminate against its employees in violation of § 8(b)(2) of the NLRA; coerced the Company’s employees in violation of § 8(b)(1)(A); engaged in an unlawful secondary boycott in violation of § 8(b)(4)(h); and attempted to coerce the Company to agree to a collective bargaining agreement in violation of section 8(e).
See
29 U.S.C. § 158(b). The Company then moved the district court to stay its proceedings until the NLRB resolved the unfair labor charges. The district judge denied the stay, found that the Company’s contractual duties were more exacting than its statutory duties, and on June 1,1988 granted summary judgment in favor of the Union enforcing the arbitration award. The Company, having filed
Approximately three and one-half months after the district judge ordered enforcement of the arbitration award, on September 14, 1988 the Regional Director of the NLRB issued a complaint against the Union for unfair labor practices. The complaint was based on the Company’s earlier charges. In an unusual move, the Board then moved to intervene in this court while this appeal was pending. On November 15, 1988 we granted the Board’s motion to intervene. The Board now asks us to stay our decision until it resolves the unfair labor practice complaint against the Union.
We consider the Board’s request together with the issues raised by the Company. The Company argues that (1) the district court erred by not staying its proceedings until the Board resolved the unfair labor practice charges pending against the Union; (2) the Union should have sought a judicial determination of arbitrability before unilaterally submitting the matter for arbitration; and (3) the interest arbitration clause violates federal labor policy and is consequently void and unenforceable.
II. ANALYSIS
A. Request for a Stay
The Board asks us to exercise our discretion and grant a stay. The Board states “that the issue to be decided on appeal will also be decided in, and is central to, the unfair labor practice case.” The Board wants to decide whether the Union violated the NLRA and national labor policy by enforcing the interest arbitration clause. We must decide whether the district judge erred when, based on the pre-hire agreement, he ordered enforcement of the arbitration award. The Board has jurisdiction to resolve unfair labor complaints, see 29 U.S.C. § 160; the district judge has jurisdiction to enforce collective bargaining agreements, see 29 U.S.C. § 185; and we have jurisdiction over both, see 28 U.S.C. § 1291; 29 U.S.C. §§ 160, 185. 3 We could grant the stay, let the Board decide the unfair labor complaint, and then review the district judge’s order. Alternatively, we could deny the stay and resolve the issues now before us.
The Union and the Company have suffered through various proceedings with accompanying delay. The Board wants to decide an unfair labor charge that was filed on November 19, 1987 and provided the basis for a complaint issued on September 14, 1988. Although the Board has had jurisdiction since November 1987, it has not decided the unfair labor charge that underlies this controversy. Further delay runs counter to a basic tenet of our national labor policy — labor disputes should be resolved promptly.
See UPS v. Mitchell,
This case involves the Company’s contractual duty to arbitrate. Congress intended for the federal courts to resolve contractual disputes.
See
29 U.S.C. § 185;
Hines v. Anchor Motor Freight, Inc.,
Therefore, we deny the stay. For the same reasons that we deny a stay of this appeal, we also find that the district judge did not abuse his discretion when he denied the Company’s request for a stay of the district court proceedings.
See McGough v. First Arlington Nat’l Bank,
B. Arbitrability
Before evaluating the consequence of the interest arbitration clause, we must determine whether this dispute was properly arbitrable and whether the Union should have sought a judicial determination of arbitrability before it unilaterally submitted the dispute for arbitration. As a general rule, the courts, not arbitrators, determine whether matters are arbitrable.
See AT & T Technologies, Inc. v. Communications Workers,
The parties agreed to arbitrate “any controversy or dispute arising out of the failure of the parties to negotiate a renewal of this Agreement.” The Company then unilaterally repudiated the agreement and refused to negotiate a renewal. The Company’s actions come within the scope of the broad interest arbitration clause that “clearly and unmistakably” evidences the parties’ intent to arbitrate. This broad arbitration clause distinguishes the case from cases with limiting clauses that create sufficient ambiguity to require prior judicial determinations of arbitrability, such as
AT & T Technologies, Inc. v. Communications Workers,
C. Public Policy
Beyond arbitrability, the primary issue is whether the interest arbitration clause contained in the prehire agreement was void and hence unenforceable because it violated public policy. Whether a clause violates public policy is a matter for the courts, not the arbitrators.
See United Paperworkers Int’l Union v. Misco, Inc.,
The Company offers numerous arguments in support of its position that the interest arbitration clause violates public policy.
4
Basically, the Company argues
Section 8(f) of the NLRA allows employers in the construction industry to negotiate and execute prehire agreements with nonmajority unions before any workers are hired or any work is commenced. See 73 Stat. 545; 29 U.S.C. § 158(f). This is in sharp contrast to § 9(a) that governs normal collective bargaining agreements. Congress advanced several reasons in support of this legislation when it amended the NLRA in 1959:
One reason for this practice is that it is necessary for the employer to know his labor costs before making the estimate upon which his bid will be based. A second reason is that the employer must be able to have available a supply of skilled craftsmen ready for quick referral.
H.R.Rep. No. 741, 86th Cong., 1st Sess., 19 (1959), U.S.Code Cong. & Admin.News 1959, pp. 2318, 2335,
reprinted in
1 NLRB, Legislative History of the Labor-Management Reporting and Disclosure Act of 1959 at 777 (quoted in
NLRB v. Local Union No. 103, Int’l Ass’n of Bridge Workers,
[Another] factor prompting Congress to enact § 8(f) was the uniquely temporary, transitory, and sometimes seasonal nature of much of the employment in the construction industry. Congress recognized that construction industry unions often would not be able to establish majority support with respect to many bargaining units.
When the Supreme Court decided
Hig-don,
it reviewed and upheld the Board’s interpretation of prehire policy as announced in
R.J. Smith Construction Co.,
In Deklewa, the Board reversed its previous policy and declared:
When parties enter into an 8(f) agreement, they will be required ... to comply with that agreement unless the employees vote, in a Board-conducted election, to reject (decertify) or change their bargaining representative. Neither employers nor unions who are party to 8(f) arguments will be free unilaterally to repudiate such agreements.
Even absent an election, upon the contract’s expiration, the signatory union will enjoy no majority presumption and either party may repudiate the 8(f) relationship.
Deklewa,
Thus, the Third, Eighth, and Ninth Circuits have determined that
Deklewa
changed the law with respect to when and how parties can repudiate a prehire agreement. Under
Higdon,
a party could unilaterally repudiate a prehire agreement at any time if the union had not achieved majority status, but under
Deklewa
a party can only repudiate unilaterally after the union is decertified during the term of the prehire agreement or after the agreement has expired.
See Higdon,
Although neither
Higdon
nor
Deklewa
dispose of the issue before us, we think that the Board, in
Deklewa,
aptly traced the historical development of the laws governing prehire agreements and identified some of the underlying policy considerations that are pertinent here — labor stability and employee free choice.
See Deklewa,
The addition of an interest arbitration clause adds a factor not considered by the Board — arbitration. “Final adjustment by a method agreed upon by the parties is hereby declared to be the desirable method for settlement of grievance disputes arising over the application or interpretation of an existing collective-bargaining agreement.” 29 U.S.C. § 173(d). For almost 30 years, the Supreme Court has approved arbitration as a means for furthering “the national labor policy of peaceful resolution of labor disputes.”
AT & T Technologies, Inc. v. Communications Workers,
When we add this national labor policy that emphatically favors arbitration to the national labor policy that promotes labor stability and the peaceful resolution of labor disputes, the resulting policy combination overpowers the policy of employee free choice as interpreted by the Board in
Deklewa.
Another factor that, as a practical matter, sways our judgment is that there is no evidence in the record to indicate that the employees in this dispute were ever dissatisfied with their Union representation. The employees did not challenge their Union’s ability to represent them during the original term of this contract. If they become dissatisfied under the new contract, they (or the Company) can challenge the Union’s representative status by petitioning for a Board-conducted election.
See
29 U.S.C. § 158(f). Since prehire agreements may be challenged at any time by employees, employers, or unions petitioning for a representative election, employee free choice is guaranteed.
See Jim McNeff,
We find no “well defined and dominant ... explicit public policy,”
W.R. Grace & Co.,
D. Arbitration Award
Having jurisdiction over an arbitrator’s award that is based on an agreement not voided by public policy concerns, we review the Arbitrator’s award using a most deferential standard. “Unless the arbitral decision does not ‘dra[w] its essence from the collective bargaining agreement,’ ..., a court is bound to enforce the award and is not entitled to review the merits of the contract dispute.”
W.R. Grace & Co.,
While the Arbitrator had authority to resolve this dispute and enter an award, the Arbitrator did not, as the district judge properly noted, have authority to include an interest arbitration clause in the new
Because the Company’s arguments raise jurisdictional concerns and we therefore have addressed them on their merits, we do not reach the Union’s procedural bar argument.
See International Union of Operating Eng’rs, Local 150 v. Centor Contractors, Inc.,
III. CONCLUSION
We find it unnecessary to determine whether Deklewa expresses the current law governing repudiation of prehire agreements. Neither Higdon nor Deklewa control when the parties voluntarily agree to a broad interest arbitration clause with an automatic renewal provision. Nothing in our national labor policy prohibits parties from voluntarily including an interest arbitration clause in a prehire agreement. No public policy prohibits an arbitrator from enforcing such an interest arbitration clause. The arbitrator is, however, prohibited from imposing an interest arbitration clause on parties against their will. Consequently, the judgment of the district court enforcing the arbitration award is Affirmed.
Notes
. Modern labor law started with passage of the National Labor Relations Act (NLRA), also known as the Wagner Act, in 1935. 49 Stat. 449 (1935); 29 U.S.C. §§ 151-166. At the risk of oversimplifying this monumental legislative act, the NLRA was designed to promote industrial peace and employee free choice in selecting a representative to bargain collectively with employers. To enforce the provisions of the NLRA, Congress created the National Labor Relations Board.
See H.K. Porter Co.
v.
NLRB,
. The interest arbitration clause was contained in Article X, Section 8 of the 1984 agreement. It provided that "any controversy or dispute arising out of the failure of the parties to negotiate a renewal of this Agreement” could be submitted by the Union or the Company to the National Joint Adjustment Board for the Sheet Metal Industry (Arbitrator) for arbitration. The Arbitrator’s decision was to be final and binding on both parties. The agreement also contained an automatic renewal clause unless either party provided a written notice of reopening at least 90 days prior to expiration. The agreement would be extended automatically if proceedings were pending under the interest arbitration clause at the expiration date. When the Union filed its unfair labor charges, it proceeded under the NLRA. When the Union invoked the interest arbitration clause, it proceeded under the collective bargaining agreement.
. The Board and the Company question our jurisdiction. They both argue that the interest arbitration clause is void and unenforceable because it is contrary to national labor policy. If they are correct, then there is no agreement to enforce and our jurisdictional base is destroyed. Because this matter is inextricably intertwined with the merits of this litigation, we will address this jurisdictional issue when we address the issues raised by the parties.
Although we have jurisdiction under 29 U.S.C. § 160 to review Board decisions on unfair labor practice charges, the Board has not yet determined whether the Union committed unfair labor practices. Consequently, that issue is not before us. We therefore confine our analysis to the § 301 claim and leave the unfair labor practice charges to the Board.
. Specifically, the Company argues that the interest arbitration clause concerns the Company's duty to bargain and that the Board has exclusive, and apparently preemptive, authority
The Company argues that because the interest arbitration clause compels the parties to bargain and because the Arbitrator compelled the Company to enter a new agreement, the public policies of voluntary bargaining and voluntary agreement are violated. We reject these arguments because the alleged violations resulted from the original prehire agreement voluntarily executed by the Company.
The Company argues that we have no § 301 jurisdiction because the validity of the agreement is the ultimate question in this litigation.
See International Bhd. of Elec. Workers, Local 481 v. Sign-Craft, Inc.,
The Company argues that imposition of a new contract violates the policy against single employer bargaining units because the employer had only one employee when the Arbitrator ordered the new contract. Considering the transitory nature of the construction industry and other factors relied on by Congress when it authorized prehire agreements, we find that this argument is without merit.
See Jim McNeff, Inc. v. Todd,
The Company argues that imposition of a new contract violates the principles of "employee free choice” and "top down organizing.” The Company, however, offers no evidence that its employees were ever dissatisfied with Union representation during the term of the initial prehire contract. In addition, the Company can, with cause, challenge the Union’s majority under the new contract and petition for a decer-tification election. Most importantly, this argument involves allegations of unfair labor practice charges and the Board has not yet rendered an initial decision on these allegations.
At oral argument, the Company added a new argument. It argued that since the original pre-hire agreement was executed between an employer’s association of which it was not a member and the Union, the Company was not named in the interest arbitration clause and therefore not bound by it. The Company conceded, however, that it had subsequently signed the agreement. When the Company signed the agreement, it became bound by all of the agreement’s terms including the interest arbitration clause.
The Company's remaining arguments regarding repudiation and the lack of a Union majority are analyzed in the body of this opinion.
. Counsel for the NLRB conceded at oral argument that Deklewa did not control this case. Counsel argued that the Board wanted us to stay this appeal precisely because the Board wanted to consider the affect of an interest arbitration clause on Deklewa.
. The nonexistent employees most often did exist and did belong to the union, but had yet to be hired. Most would be hired from union hiring halls. Congress recognized the peculiarity of the construction industry when authorizing prehire agreements and we certainly do not mean to imply that Congress completely disregarded workers' rights when it enacted this legislation. For a discussion of employee free choice in a situation where a cooperative labor agreement similar to a prehire agreement was approved for use outside of the construction industry, see Comment, The Satumization of American Plants: Infringement or Expansion of Workers’ Rights?, 72 Minn.L.Rev. 173 (1987).
