Lead Opinion
Opinion for the Court filed by Senior Circuit Judge STEPHEN F. WILLIAMS.
Dissenting opinion filed by Circuit Judge ROGERS.
On February 17, 2001, relying on his power under the Procurement Act, President Bush issued Executive Order 13201, applying to all government contracts involving more than $100,000. Executive Order 13201, § 2, 66 Fed.Reg. 11,221, 11,-221,
Plaintiffs brought suit against the Secretary of Labor and the members of the Federal Acquisition Regulatory Council, seeking declaratory and injunctive relief. The plaintiffs are the UAW-Labor Employment and Training Corp. (“UAW”) and three unions. UAW is a non-profit organization that provides job training and placement services; it is a federal contractor subject to the executive order. Accordingly it clearly has standing, and we need not consider whether the other plaintiffs do. See Mountain States Legal Found. v. Glickman,
The plaintiffs claimed that the order was preempted by the National Labor Relations Act (“NLRA”), 29 U.S.C. § 151 et seq., and also that, for want of an adequate nexus to the government’s interest in efficient and economical contracting, the President had no authority to issue it under the Federal Property and Administrative Services Act of 1949 (the “Procurement Act”), 40 U.S.C. § 471 et seq. (now codified as amended at 40 U.S.C. § 101 et seq.). The district court found preemption, granted declaratory relief, and issued a permanent injunction barring enforcement of the order. It didn’t reach the Procurement Act question, but the plaintiffs raise it here as an alternative ground for affirmance. Finding both of plaintiffs’ theories to be flawed, we reverse and remand for the district court to grant summary judgment in favor of the government.
As the issues relate solely to summary judgment, we review de novo. See Indep. Bankers Ass’n v. Farm Credit Admin.,
Federal labor law preemption falls into two categories, Garmon and Machinists
We first consider the government’s suggestion that our preemption analysis should be less intrusive because the order only imposes a contract condition, and firms can choose to do business elsewhere. But at least in labor law, preemption applies to rules of the federal executive even when the government is acting as a purchaser of goods, as long as the government action is classified as regulatory rather than proprietary. See Chamber of Commerce v. Reich,
As we’ve said, Garmon preempts state (or here, federal executive) regulation of “activities [that] are protected by § 7 of the National Labor Relations Act, or constitute an unfair labor practice under § 8.” Garmon,
The dissent makes a similar error when it suggests that the order is
In the passage from Gould quoted above, the Court said (as indeed it had in Garmon,
Garmon preempts not only regulation of activities arguably prohibited by the NLRA, but also regulation of ones arguably protected. Plaintiffs and our dissenting colleague argue that precisely such an activity is in question here — the employer’s right to speak, protected by § 8(c) of the Act:
The expressing of any views, argument, or opinion, or the dissemination thereof, whether in written, printed, graphic, or visual form, shall not constitute or be evidence of an unfair labor practice under any of the provisions of this sub-chapter, if such expression contains no threat of reprisal or force or promise of benefit.
29 U.S.C. § 158(c). We consider this speech argument only in the context of preemption; plaintiff raises no free-standing First Amendment claim.
Of course Garmon’s own expression of its scope limits its preemption to activities that are arguably “protected by § 7 of the National Labor Relations Act, or constitute an unfair labor practice under § 8.”
Nonetheless, because the Supreme Court has rather ambiguously invoked § 8(c) in determining whether state libel laws were subject to Garmon preemption (and finding that they were in some circumstances), Linn v. United Plant Guard Workers,
Section 8(c) “implements the First Amendment” in the labor relations area. NLRB v. Gissel Packing Co.,
Finally, both the district court and the plaintiffs invoke language from our decision in Chamber of Commerce. There we struck down an executive order barring employers who contracted with the government from hiring permanent replacements, finding it preempted under Machinists because hiring permanent replacements' was among the “economic weapons” that Congress intended the NLRA would leave in the hands of unions or management, as the case might be.
Plaintiffs also point to a footnote in Chamber of Commerce, where we said:
We are also dubious that President Bush’s Executive Order 12,800, which required government contractors to post notices informing their employees that they could not be required to join or remain a member of a union, was legal. It may well have run afoul of Garmon preemption which reserves to NLRB jurisdiction arguably protected or prohibited conduct.
As an alternative ground for affirmance the plaintiffs argue that the order is not within the President’s authority under the Procurement Act. That act authorizes him to “prescribe such policies and directives, not inconsistent with the provisions of this Act, as he shall deem necessary to effectuate the provisions of said Act.” 40 U.S.C. § 486(a) (2000) (now codified as amended at 40 U.S.C. § 121). In AFL-CIO v. Kahn,
Here the executive order sought to connect its requirements to economy and efficiency as follows:
When workers are better informed of their rights, including their rights under the Federal labor laws, their productivity is enhanced. The availability of such a workforce from which the United States may draw facilitates the efficient and economical completion of its procurement contracts.
Executive Order 13201, § 1(a),
We reverse the district court’s grant of summary judgment for the plaintiffs. As they asserted only the Garmon and Procurement Act claims against the lawfulness of the order, the district court on remand should grant summary judgment in favor of the government.
Reversed and remanded.
Notes
. The Court’s opinion is unclear whether Gar-mon preemption applied because the speech in question was an activity arguably prohibited by the NLRA, so that § 8(c) simply limited the scope of, but was not a source of, preemption; or whether the speech in question was arguably “protected" by the NLRA.
Dissenting Opinion
dissenting:
Under Executive Order 13201,
When the Supreme Court held in Wisconsin Department of Industry v. Gould,
Union-security clauses and activities related to them fall squarely within the regulatory scope of the NLRA. See §§ 7, 8(a)(3), (b)(2), (f), 29 U.S.C. §§ 157, 158(a)(3), (b)(2), (f). The Supreme Court acknowledged that “federal concern is pervasive and its regulation complex” in this area, Amalgamated Association of Street, Electric Railway & Motor Coach Employees v. Lockridge,
Executive Order 13201,
The court rejects this approach relying on International Longshoremen’s Association v. Davis,
In rejecting the plaintiffs’ alternative claim that Executive Order 13201,
The court finds ambiguity in Linn, Opinion at 365 & n.l, notwithstanding the fact that the Linn Court was clear that § 8(c) reflected Congress’ goal of promoting robust and wide-open debate in the context of labor relations and that the application of state libel laws would interfere with this goal. See Linn,
Assuming protection of employer speech rights under § 8(c), the court concludes that Executive Order 13201,
. Communications Workers v. Beck,
