NATIONAL LABOR RELATIONS BOARD v. LION OIL CO. ET AL.
No. 4
Supreme Court of the United States
Argued October 8, 1956.—Decided January 22, 1957.
352 U.S. 282
Jeff Davis argued the cause for respondents. With him on the brief were B. L. Allen and Sam Pickard, Jr.
In this case we are called upon again to interpret
Whether the requirement of this Section is satisfied where a contract provides for negotiation and adoption of modifications at an intermediate date during its term, and a strike in support of modification demands occurs after the date on which such modifications may become effective—and after the 60-day notice period has elapsed—but prior to the terminal date of the contract.
We are told by the Solicitor General that the question is of major importance in the negotiation and administration of hundreds of collective bargaining agreements throughout the country; that there is a decided trend among unions and employers to execute contracts of longer duration than formerly and to include provisions for reopening to negotiate changes during the contract term.2 Because of the importance of the question, we granted certiorari, 350 U. S. 986, to review a decision of the Court of Appeals for the Eighth Circuit to the effect that
“This agreement shall remain in full force and effect for the period beginning October 23, 1950, and ending October 23, 1951, and thereafter until canceled in the manner hereinafter in this Article provided.
“This agreement may be canceled and terminated by the Company or the Union as of a date subsequent to October 23, 1951, by compliance with the following procedure:
“(a) If either party to this agreement desires to amend the terms of this agreement, it shall notify the other party in writing of its desire to that effect, by registered mail. No such notice shall be given prior to August 24, 1951. Within the period of 60 days, immediately following the date of the receipt of said notice by the party to which notice is so delivered, the Company and the Union shall attempt to agree as to the desired amendments to this agreement.
“(b) If an agreement with respect to amendment of this agreement has not been reached within the 60-day period mentioned in the sub-section immediately preceding, either party may terminate this agreement thereafter upon not less than sixty days’ written notice to the other. Any such notice of termination shall state the date upon which the termination of this agreement shall be effective.”
On August 24, 1951, the union served written notice on the company of its desire to modify the contract.3 Nego-
The Labor Board found that the company was guilty of unfair labor practices under
“The term ‘expiration date’ as used in
Section 8 (d) (4) . . . has a twofold meaning; it connotes not only the terminal date of a bargaining contract, but also an agreed date in the course of its existence when the parties can effect changes in its provisions.”
The Board held that since, under the contract in dispute, October 23, 1951, was such an “agreed date,” the notice given August 24 followed by a wait of more than 60 days satisfied the statute. The company was ordered to cease and desist and, affirmatively, to make whole employees found to have been discriminated against. 109 N. L. R. B. 680, 683.
On the company‘s petition for review, the Court of Appeals set aside the Board‘s order. 221 F. 2d 231. The court held that the “expiration date” of the contract was the date on which all rights and obligations under it would
In Mastro Plastics Corp. v. Labor Board, supra, we had before us another provision of
That
We find our guide to the general context of the statute in Mastro Plastics. In that case we recognized a “dual purpose” in the Taft-Hartley Act—to substitute collective bargaining for economic warfare and to protect the right of employees to engage in concerted activities for their own benefit. 350 U. S., at 284. A construction which serves neither of these aims is to be avoided unless the words Congress has chosen clearly compel it. The restriction on employees’ concerted activities which would result from the construction placed upon
We do not believe that the language used by Congress requires any such result.
Our conclusion is buttressed by a provision of
“[T]he duties . . . imposed [by subsections (2), (3) and (4)] shall not be construed as requiring either party to discuss or agree to any modification of the terms and conditions contained in a contract for a fixed period, if such modification is to become effective before such terms and conditions can be reopened under the provisions of the contract.”
The negative implication seems clear: Congress recognized a duty to bargain over modifications when the con-
Although a 1948 committee report is no part of the legislative history of a statute enacted in 1947, we note that the Joint Committee on Labor-Management Relations, made up of members of the Congress which passed the Taft-Hartley Act, in its final report reached the same conclusion we do:
“Reading section 8 (d) as a whole seems to lead to the conclusion that the act permits a strike, after a 60-day notice, in the middle of a contract which authorizes a reopening on wages. Use of the words ‘or modify’ and ‘or modification’ in the proviso, and use of ‘or modification’ in section 8 (d) (1), and the statement in the final paragraph of the section that the parties are not required to agree to any modification effective before the contract may be reopened under its terms, all seem to contemplate the right of either party to insist on changes in the contract if they have so provided. The right of the union would be an empty one without the right to strike after a 60-day notice.”10
Applying that construction to the facts of this case, we hold that the notice and waiting requirements of
Nor can we accept respondents’ alternative contention that, even apart from
The judgment below is reversed and the case remanded for proceedings in conformity with this opinion.
Reversed and remanded.
MR. JUSTICE BRENNAN took no part in the consideration or decision of this case.
MR. JUSTICE FRANKFURTER, concurring in part and dissenting in part.
Agreeing as I do with the Court‘s construction of
“No objection that has not been urged before the Board, its member, agent, or agency, shall be considered by the court, unless the failure or neglect to urge such objection shall be excused because of extraordinary circumstances.”1
The Board has not raised the point here, and it is not clear from the record that respondent urged this objection before the Board. In any event, it is not for this Court in the first instance to construe this particular contract. In remanding the case I would therefore leave it to the Court of Appeals to determine: (1) whether respondent has complied with
The inherent complications of the problem of statutory construction, as reflected in the conflicting views of the members of the Labor Board, make further discussion desirable, even though this may entail some repetition of what is said in the Court‘s opinion.
“That where there is in effect a collective-bargaining contract covering employees in an industry affecting commerce, the duty to bargain collectively shall also mean that no party to such contract shall terminate or modify such contract, unless the party desiring such termination or modification—
“(1) serves a written notice upon the other party to the contract of the proposed termination or modification sixty days prior to the expiration date thereof, or in the event such contract contains no expiration date, sixty days prior to the time it is proposed to make such termination or modification;
“(2) offers to meet and confer with the other party for the purpose of negotiating a new contract or a contract containing the proposed modification;
“(3) notifies the Federal Mediation and Conciliation Service within thirty days after such notice of the existence of a dispute, and simultaneously therewith notifies any State or Territorial agency estab-
lished to mediate and conciliate disputes within the State or Territory where the dispute occurred, provided no agreement has been reached by that time; and
“(4) continues in full force and effect, without resorting to strike or lock-out, all the terms and conditions of the existing contract for a period of sixty days after such notice is given or until the expiration date of such contract, whichever occurs later:
“The duties imposed upon employers, employees, and labor organizations by paragraphs (2), (3), and (4) shall become inapplicable upon an intervening certification of the Board, under which the labor organization or individual, which is a party to the contract, has been superseded as or ceased to be the representative of the employees subject to the provisions of section 9 (a), and the duties so imposed shall not be construed as requiring either party to discuss or agree to any modification of the terms and conditions contained in a contract for a fixed period, if such modification is to become effective before such terms and conditions can be reopened under the provisions of the contract. Any employee who engages in a strike within the sixty-day period specified in this subsection shall lose his status as an employee of the employer engaged in the particular labor dispute, for the purposes of sections 8, 9, and 10 of this Act, as amended, but such loss of status for such employee shall terminate if and when he is reemployed by such employer.”
The reasoned efforts of the five members of the Board and the three Circuit Judges whose task it has been to apply this proviso to the problem before us—where an economic strike occurs prior to the contract‘s termination but pursuant to its reopening provisions and after sixty
Such diverse interpretations, particularly by the authorities charged with the administration of the Act, reflect not only the ambiguity of
The construction placed upon the proviso by the Court of Appeals—that it bans strikes throughout the life of
“shall not be construed as requiring either party to discuss or agree to any modification of the terms and conditions contained in a contract for a fixed period, if such modification is to become effective before such terms and conditions can be reopened under the provisions of the contract.”
This implies an affirmative duty to bargain during reopening. It is not to be assumed that Congress provided such a duty and at the same time foreclosed a potential strike, a conventional factor in the collective-bargaining process.
The meaning given to “expiration date” by the Court of Appeals would make
Nothing in
“In order that the parties may better know their rights in the matter, the committee recommends the adoption of the amendments which would permit a
strike or a lock-out after a 60-day notice in support of demands they have anticipated in a reopening clause.” S. Rep. No. 986, 80th Cong., 2d Sess. 63 (1948).
In 1949, Senator Taft himself proposed such an amendment, S. Rep. No. 99, 81st Cong., 1st Sess. 27, 42 (1949), which was passed by the Senate, 95 Cong. Rec. 8717, but never became law.
At the opposite end of the statutory spectrum is Board Member Murdock‘s view that
If Mr. Murdock read “expiration” to include reopening, his claim to have resolved
Even as thus revised the Murdock view is an artifact. It would permit a union, in an effort to force changes in
It is significant also that the 1948 report of the Joint Committee on Labor-Management Relations, S. Rep. No. 986, 80th Cong., 2d Sess. 62 (1948), which stated that
The question remains whether the old Board‘s interpretation is more persuasive than that of the present Board. The statutory language points toward the latter view—that
As the Court‘s opinion holds, since the union struck more than sixty days after giving notice of its desire to amend and in the course of negotiations pursuant to the contract‘s reopening clause, the Court of Appeals erred in setting aside the Board‘s order on the ground that the strike violated the waiting requirements of
MR. JUSTICE HARLAN, concurring in part and dissenting in part.
I join in so much of the Court‘s opinion as relates to the construction of
This is the fourth time this Term that the Court has passed on questions which the court below never reached. See Mesarosh v. United States, 352 U. S. 1;1 Thompson v. Coastal Oil Co., 352 U. S. 862;2 Gibson v. Phillips Petroleum Co., 352 U. S. 874.3 I think this practice is an unfortunate one, depriving this Court, as it does, of the considered views of the lower courts. Its dangers are particularly apparent in the present case. As my brother FRANKFURTER points out, there is at least some question as to whether respondent ever raised its breach of contract defense before the National Labor Relations Board. And on the merits the question is an unusual one because of the atypical nature of this contract, and surely requires
This kind of original adjudication by this Court is not what litigants have a right to expect. Moreover, to decide questions which, as here, have not been raised in the petition for certiorari offends our own rules.4 There will no doubt be cases where remand is not justified because the questions left open by the lower court are manifestly insubstantial. It seems to me that in such instances this Court should state that it is not remanding for that reason, instead of proceeding as a matter of course to decide the questions itself, either expressly or sub silentio. The latter procedure can only have a tendency to lead this Court, as here, to decide questions which it should not pass upon in the first instance, and in my opinion represents unsound judicial administration.
