COMMUNICATIONS WORKERS OF AMERICA ET AL. v. BECK ET AL.
No. 86-637
Supreme Court of the United States
Argued January 11, 1988—Decided June 29, 1988
487 U.S. 735
Laurence Gold argued the cause for petitioners. With him on the briefs were Thomas S. Adair, James Coppess, and George Kaufmann.
Edwin Vieira, Jr., argued the cause for respondents. With him on the brief was Hugh L. Reilly.*
JUSTICE BRENNAN delivered the opinion of the Court.
Section 8(a)(3) of the
*David M. Silberman filed a brief for the American Federation of Labor and Congress of Industrial Organizations as amicus curiae urging reversal.
Briefs of amici curiae urging affirmance were filed for the Landmark Legal Foundation by Jerald L. Hill and Mark J. Bredemeier; for the Pacific Legal Foundation et al. by Ronald A. Zumbrun and Anthony T. Caso; and for Senator Jesse Helms et al. by Thomas A. Farr, W. W. Taylor, Jr., and Robert A. Valois.
Solicitor General Fried, Deputy Solicitor General Cohen, Norton J. Come, and Linda Sher filed a brief for the United States as amicus curiae.
I
In accordance with §9 of the NLRA,
In June 1976, respondents, 20 employees who chose not to become union members, initiated this suit challenging CWA‘s use of their agency fees for purposes other than collective bargaining, contract administration, or grievance adjustment
The District Court concluded that the union‘s collection and disbursement of agency fees for purposes other than bargaining unit representation violated the associational and free speech rights of objecting nonmembers, and therefore enjoined their future collection. 468 F. Supp. 93 (Md. 1979). Applying a “clear and convincing” evidentiary standard, the District Court concluded that the union had failed to show that more than 21% of its funds were expended on collective-bargaining matters. App. to Pet. for Cert. 119a. The court ordered reimbursement of all excess fees respondents had paid since January 1976, and directed the union to institute a recordkeeping system to segregate accounts for representational and noncollective-bargaining activities. Id., at 125a, 108a-109a.
A divided panel of the United States Court of Appeals for the Fourth Circuit agreed that respondents stated a valid claim for relief under the
On rehearing, the en banc court vacated the panel opinion and by a 6-to-4 vote again affirmed in part, reversed in part, and remanded for further proceedings. 800 F. 2d 1280 (1986). The court explained in a brief per curiam opinion that five of the six majority judges believed there was federal jurisdiction over both the
The decision below directly conflicts with that of the United States Court of Appeals for the Second Circuit. See Price v. Auto Workers, 795 F. 2d 1128 (1986). We granted certiorari to resolve the important question concerning the
II
At the outset, we address briefly the jurisdictional question that divided the Court of Appeals. Respondents sought relief on three separate federal claims: that the exaction of fees beyond those necessary to finance collective-bargaining activities violates
In San Diego Building Trades Council v. Garmon, 359 U. S. 236 (1959), we held that “[w]hen an activity is arguably subject to §7 or §8 of the [NLRA], the States as well as the federal courts must defer to the exclusive competence of the [Board] if the danger of state interference with national policy is to be averted.” Id., at 245 (emphasis added). A simple recitation of respondents’
While the five-judge plurality of the en banc court did not explain the basis of its jurisdictional holding, the panel majority concluded that because courts have jurisdiction over challenges to union-security clauses negotiated under
The court was not precluded, however, from deciding the merits of this claim insofar as such a decision was necessary to the disposition of respondents’ duty-of-fair-representation challenge. Federal courts may resolve unfair labor practice questions that “emerge as collateral issues in suits brought under independent federal remedies,” Connell Construction Co. v. Plumbers, 421 U. S. 616, 626 (1975), and one such remedy over which federal jurisdiction is well settled is the judicially implied duty of fair representation. Vaca v. Sipes, 386 U. S. 171 (1967). This jurisdiction to adjudicate fair-representation claims encompasses challenges leveled not only at a union‘s contract administration and enforcement efforts, id., at 176-188, but at its negotiation activities as well. Ford Motor Co. v. Huffman, 345 U. S. 330 (1953). Employees, of course, may not circumvent the primary jurisdiction of the NLRB simply by casting statutory claims as violations of the union‘s duty of fair representation. Respondents, however, have done no such thing here; rather, they claim that the union failed to represent their interests fairly and without hostility by negotiating and enforcing an agreement that allows the exaction of funds for purposes that do not serve their interests and in some cases are contrary to their personal beliefs. The necessity of deciding the scope of
III
Added as part of the
“[N]o employer shall justify any discrimination against an employee for nonmembership in a labor organization (A) if he has reasonable grounds for believing that such membership was not available to the employee on the same terms and conditions generally applicable to other members, or (B) if he has reasonable grounds for believing that membership was denied or terminated for reasons other than the failure . . . to tender the periodic
dues and the initiation fees uniformly required as a condition of acquiring or retaining membership.” Ibid.
Taken as a whole,
Although we have never before delineated the precise limits
A
Both the structure and purpose of
This sentiment was repeated throughout the hearings and lengthy debate that preceded passage of the bill. See, e. g., 93 Cong. Rec. 3557 (1947), Leg. Hist. 740 (remarks of Rep. Jennings) (because members of the minority “would get the benefit of that contract made between the majority of their fellow workmen and the management . . . it is not unreasonable that they should go along and contribute dues like the others“); 93 Cong Rec. 3558, Leg. Hist. 741 (remarks of Rep. Robison) (“If [union-negotiated] benefits come to the workers all alike, is it not only fair that the beneficiaries, whether the majority or the minority, contribute their equal share in securing these benefits?“); 93 Cong. Rec. 3837, Leg. Hist. 1010 (remarks of Sen. Taft) ([T]he legislation, “in effect, . . . say[s], that no one can get a free ride in such a shop. That meets one of the arguments for a union shop. The employee has to pay the union dues“); S. Rep., at 6, Leg. Hist. 412 (“In testifying before this Committee, . . . leaders of organized labor have stressed the fact that in the absence of [union-security] provisions many employees sharing the benefits of what unions are able to ac-
“intended to accomplish twin purposes. On the one hand, the most serious abuses of compulsory unionism were eliminated by abolishing the closed shop. On the other hand, Congress recognized that in the absence of a union-security provision ‘many employees sharing the benefits of what unions are able to accomplish by collective bargaining will refuse to pay their share of the cost.‘” NLRB v. General Motors Corp., 373 U. S., at 740-741 (quoting S. Rep., at 6, Leg. Hist. 412).
The legislative solution embodied in
“Th[e] legislative history clearly indicates that Congress intended to prevent utilization of union security agreements for any purpose other than to compel payment of union dues and fees. Thus Congress recognized the validity of unions’ concerns about ‘free riders,’ i. e., employees who receive the benefits of union representation but are unwilling to contribute their fair share of financial support to such union, and gave unions the power to contract to meet that problem while withholding from unions the power to cause the discharge of employees for any other reason.” Radio Officers v. NLRB, 347 U. S. 17, 41 (1954) (emphasis added).
This same concern over the resentment spawned by “free riders” in the railroad industry prompted Congress, four years after the passage of the
In drafting what was to become
In Street we concluded “that §2, Eleventh contemplated compulsory unionism to force employees to share the costs of negotiating and administering collective agreements, and the costs of the adjustment and settlement of disputes,” but that Congress did not intend “to provide the unions with a means for forcing employees, over their objection, to support political causes which they oppose.” 367 U. S., at 764. Constru-
B
(1)
Petitioners claim that the union-security provisions of the RLA and NLRA can and should be read differently in light of the vastly different history of unionism in the industries the two statutes regulate. Thus they note that in Street we emphasized the “long-standing tradition of voluntary unionism” in the railway industry prior to the 1951 amendment, and the fact that in 1934 Congress had expressly endorsed an “open shop” policy in the RLA. 367 U. S., at 750. It was this historical background, petitioners contend, that led us to conclude that in amending the RLA in 1951, Congress “did not completely abandon the policy of full freedom of choice embodied in the 1934 Act, but rather made inroads on it for the limited purpose of eliminating the problems created by the ‘free rider.‘” Id., at 767. The history of union security in industries governed by the NLRA was precisely the opposite: under the Wagner Act of 1935, all forms of compulsory unionism, including the closed shop, were permitted. Petitioners accordingly argue that the inroads Congress made in 1947 on the policy of compulsory unionism were likewise limited, and were designed to remedy only those “carefully-defined” abuses of the union shop system that Congress had expressly identified. Brief for Petitioners 42. Because agreements requiring the payment of uniform dues were not among these specified abuses, petitioners contend that
We find this argument unpersuasive for several reasons. To begin with, the fact that Congress sought to remedy “the most serious abuses of compulsory union membership,” S. Rep., at 7, Leg. Hist. 413, hardly suggests that the Taft-Hartley Act effected only limited changes in union-security practices. Quite to the contrary, in Street we concluded that Congress’ purpose in amending the RLA was “limited” precisely because Congress did not perceive voluntary unionism as the source of widespread and flagrant abuses, and thus modified the railroad industry‘s open shop system only to the extent necessary to eliminate the problems associated with “free riders.” That Congress viewed the Wagner Act‘s regime of compulsory unionism as seriously flawed, on the other hand, indicates that its purposes in overhauling that system were, if anything, far less limited, and not, as petitioners and the dissent contend, equally circumspect. Not surprisingly, therefore—and in stark contrast to petitioners’ “limited inroads” theory—congressional opponents of the Taft-Hartley Act‘s union-security provisions understood the Act to provide only the most grudging authorization of such agreements, permitting “union-shop agreement[s] only under limited and administratively burdensome conditions.” S. Rep., pt. 2, p. 8, Leg. Hist. 470 (Minority Report). That understanding comports with our own recognition that “Congress’ decision to allow union-security agreements at all reflects its concern that . . . the parties to a collective bargaining agreement be allowed to provide that there be no employees who are getting the benefits of union representation without paying for them.” Oil Workers v. Mobil Oil Corp., 426 U. S. 407, 416 (1976) (emphasis added). Congress thus did not set out in 1947 simply to tinker in some limited fashion with the NLRA‘s authorization of union-security agreements. Rather, to the extent Congress preserved the status quo, it did so because of the considerable evidence adduced at congressional hearings indicating that “such agreements promoted stability by eliminating ‘free riders,‘” S. Rep., at 7,
Finally, however much union-security practices may have differed between the railway and NLRA-governed industries prior to 1951, it is abundantly clear that Congress itself understood its actions in 1947 and 1951 to have placed these respective industries on an equal footing insofar as compulsory unionism was concerned. Not only did the 1951 proponents of the union shop propose adding to the RLA language nearly identical to that of
(2)
Petitioners also rely on certain aspects of the Taft-Hartley Act‘s legislative history as evidence that Congress intended to permit the collection and use of full union dues, including those allocable to activities other than collective bargaining. Again, however, we find this history insufficient to compel a
First and foremost, petitioners point to the fact that Congress expressly considered proposals regulating union finances but ultimately placed only a few limitations on the collection and use of dues and fees, and otherwise left unions free to arrange their financial affairs as they saw fit. In light of this history and the specific prohibitions Congress did enact, petitioners argue that there is no warrant for implying any further limitations on the amount of dues equivalents that unions may collect or the manner in which they may use them. As originally passed, § 7(b) of the House bill guaranteed union members the “right to be free from unreasonable or discriminatory financial demands of” unions. Leg. Hist. 176. Similarly, § 8(c) of the bill, the so-called “bill of rights for union members,” H. R. Rep., at 31, Leg. Hist. 322, set out 10 protections against arbitrary action by union officers, one of which made it an unfair labor practice for a union to impose initiation fees in excess of $25 without NLRB approval, or to fix dues in amounts that were unreasonable, nonuniform, or not approved by majority vote of the members. Id., at 53. In addition, § 304 of the bill prohibited unions from making contributions to or expenditures on behalf of candidates for federal office. Id., at 97-98. The conferees adopted the latter provision, see Pipefitters v. United States, 407 U. S. 385, 405 (1972), and agreed to a prohibition on “excessive” initiation fees, see
“[T]he Senate conferees refused to agree to the inclusion of this subsection in the conference agreement since they felt that it was unwise to authorize an agency of the Government to undertake such elaborate policing of the internal affairs of unions as this section contemplated. . . . In the opinion of the Senate conferees the language
which protected an employee from losing his job if a union expelled him for some reason other than nonpayment of dues and initiation fees, uniformly required of all members, was considered sufficient protection.” 93 Cong. Rec. 6443 (1947), Leg. Hist. 1540.
Petitioners would have us infer from the demise of this “bill of rights” that Congress “‘rejected . . . general federal restrictions on either the dues equivalents that employees may be required to pay or the uses to which unions may put such dues-equivalents,‘” and that aside from the prohibition on political expenditures Congress placed no limitations on union exactions other than the requirement that they be equal to uniform dues. Brief for Petitioners 39-40 (quoting Brief for United States as Amicus Curiae 19). We believe petitioners’ reliance on this legislative compromise is misplaced. The House bill did not purport to set out the rights of nonmembers who are compelled to pay union dues, but rather sought to establish a “bill of rights for union members” vis-à-vis their union leaders. H. R. Rep., at 31, Leg. Hist. 322 (emphasis added). Thus, § 8(c) of the House bill sought to regulate, among other things, the ability of unions to fine, discipline, suspend, or expel members; the manner in which unions conduct certain elections or maintain financial records; and the extent to which they can compel contributions to insurance or other benefit plans, or encumber the rights of members to resign. Leg. Hist. 52-56. The debate over these provisions focused on the desirability of Government oversight of internal union affairs, and a myriad of reasons having nothing whatever to do with the rights of nonmembers accounted for Congress’ decision to forgo such detailed regulation. In rejecting any limitation on dues, therefore, Congress was not concerned with restrictions on “dues-equivalents,” but rather with the administrative burdens and
It simply does not follow from this that Congress left unions free to exact dues equivalents from nonmembers in any amount they please, no matter how unrelated those fees may be to collective-bargaining activities. On the contrary, the complete lack of congressional concern for the rights of nonmembers in the debate surrounding the House “bill of rights” is perfectly consistent with the view that Congress understood
Petitioners also deem it highly significant that prior to 1947 unions “‘rather typically’ used their members’ dues for a ‘variety of purposes . . . in addition to meeting the . . . costs of collective bargaining,‘” Retail Clerks v. Schermerhorn, 373 U. S. 746, 754 (1963), and yet Congress, which was presumably well aware of the practice, in no way limited the
Finally, petitioners rely on a statement Senator Taft made during floor debate in which he explained how the provisos of
(3)
We come then to petitioners’ final reason for distinguishing Street. Five years prior to our decision in that case, we ruled in Railway Employees v. Hanson, 351 U. S. 225 (1956), that because the RLA pre-empts all state laws banning union-security agreements, the negotiation and enforcement of such provisions in railroad industry contracts involves “governmental action” and is therefore subject to constitutional limitations. Accordingly, in Street we interpreted
We need not decide whether the exercise of rights permitted, though not compelled, by
IV
We conclude that
Affirmed.
JUSTICE KENNEDY took no part in the consideration or decision of this case.
JUSTICE BLACKMUN, with whom JUSTICE O‘CONNOR and JUSTICE SCALIA join, concurring in part and dissenting in part.
I agree that the District Court and the Court of Appeals properly exercised jurisdiction over respondents’ duty-of-fair-representation and First Amendment claims, and that the National Labor Relations Board had primary jurisdiction over respondents’ claim brought under
My agreement with the majority ends there, however, for I cannot agree with its resolution of the
I
As the Court observes, “we have never before delineated the precise limits
A
As with any question of statutory interpretation, the starting point is the language of the statute itself.
“nothing in [the NLRA] or in any other statute of the United States, shall preclude an employer from making an agreement with a labor organization . . . to require as a condition of employment membership therein . . . if such labor organization is the representative of the employees as provided in section 159(a) of this title . . . .”
§ 8(a)(3) ,29 U. S. C. § 158(a)(3) .
The second proviso, incorporated in
“[N]o employer shall justify any discrimination against an employee for nonmembership in a labor organization . . . if he has reasonable grounds for believing that membership was denied or terminated for reasons other than the failure of the employee to tender the periodic dues and the initiation fees uniformly required as a condition of acquiring or retaining membership.”
The plain language of these statutory provisions, read together, permits an employer and union to enter into an agreement requiring all employees, as a condition of continued employment, to pay uniform periodic dues and initiation fees.4 The second proviso expressly allows an employer to terminate any “employee,” pursuant to a union-security agreement permitted by the first proviso, if the employee
“[W]e assume ‘that the legislative purpose is expressed by the ordinary meaning of the words used.‘” American Tobacco Co. v. Patterson, 456 U. S. 63, 68 (1982), quoting Richards v. United States, 369 U. S. 1, 9 (1962). The terms “dues” and “fees,” as used in the proviso, can refer to nothing other than the regular, periodic dues and initiation fees paid by “voluntary” union members. This was the apparent understanding of the Court in those decisions in which it held that
B
The Court‘s attempt to squeeze support from the legislative history for its reading of congressional intent contrary to the plain language of
In Machinists v. NLRB, 362 U. S. 411 (1960), the Court stated:
“It is well known, and the legislative history of the 1947 Taft-Hartley amendments plainly shows, that
§ 8(a)(3) —including its proviso—represented the Congressional response to the competing demands of employee freedom of choice and union security. Had Congress thought one or the other overriding, it would doubtless have found words adequate to express that judgment. It did not do so; it accommodated both interests, doubtless in a manner unsatisfactory to the extreme partisans of each, by drawing a line it thought reasonable. It is not for the administrators of the Congressional mandate to approach either side of that line grudgingly.” Id., at 418, n. 7.
The legislative debates surrounding the adoption of
Congress’ solution was to ban the closed shop and to permit the enforcement of union-shop agreements as long as union membership is available “on the same terms and conditions” to all employees, and mandatory discharge is required only for “nonpayment of regular dues and initiation fees.” S. Rep., at 7, 20, Leg. Hist. 413, 426. Congress was of the view, that, as Senator Taft stated, “[t]he fact that the employee will have to pay dues to the union seems . . . to be much less important. The important thing is that the man will have the job.” 93 Cong. Rec. 4886 (1947), Leg. Hist. 1422. “[A] man can get a job with an employer and can continue in that job if, in effect, he joins the union and pays the union dues.
“If he pays the dues without joining the union, he has the right to be employed.” 93 Cong. Rec. 4886 (1947), Leg. Hist.
Throughout the hearings and lengthy debate on one of the most hotly contested issues that confronted the 1947 Congress, not once did any Member of Congress suggest that
Indeed, the legislative history indicates that Congress affirmatively declined to place limitations on either the amount of dues a union could charge or the uses to which it could put these dues. The Court dismisses as irrelevant the fact that Congress expressly rejected the House proposal that would have empowered the NLRB to regulate the “reasonableness” of union dues and expenditures. The Court finds meaningful the fact that “[t]he House bill did not purport to set out the
“In the opinion of the Senate conferees[,] the language which protected an employee from losing his job if a union expelled him for some reason other than nonpayment of dues and initiation fees, uniformly required of all members, was considered sufficient protection.” 93 Cong. Rec. 6443 (1947), Leg. Hist. 1540.
Congress’ decision, in the course of the well-documented Senate-House compromise, not to place any general federal restrictions on the levels or uses of union dues,11 indicates
The Court invokes what it apparently sees as a single-minded legislative purpose, namely, the eradication of a “free-rider” problem, and then views the legislative history through this narrow prism. The legislative materials demonstrate, however, that, contrary to the impression left by the Court, Congress was not guided solely by a desire to eliminate “free riders.” The 1947 Congress that carefully crafted
II
By suggesting that the 1947 Congress was driven principally by a desire to eradicate a “free-rider” problem, the Court finds the means not only to distort the legislative justification for
The text of
This Court‘s interpretation of
The considerations that enabled the Court to conclude in Street, 367 U. S., at 750, that it is “fairly possible” and “entirely reasonable” to read
The NLRA does not share the RLA‘s underlying policy, which propelled the Court‘s interpretation of
In order to overcome this inevitable conclusion, the Court relies on remarks made by a few Members of the Congress in enacting the 1951 amendments to
The relevant sources for gleaning the 1947 Congress’ intent are the plain language of
III
In sum, I conclude that, in enacting
Notes
“Neither on its face nor in the congressional purpose behind [
Under our settled doctrines of statutory construction, were there any ambiguity in the meaning of
Despite a legislative history rife with unequivocal statements to the contrary, the Court concludes that the 1947 Congress did not set out to restrict union-security agreements in a “limited fashion.” Ante, at 755. Quite apart from the Court‘s unorthodox reliance on representations of those opposed to the Taft-Hartley amendments, the majority‘s observation that “Congress viewed the Wagner Act‘s regime of compulsory unionism as seriously flawed,” ibid., begs the question. The perceived flaws were embedded in the closed-shop system, not the union-shop system. Thus, as is characteristic of the majority‘s opinion, its comparison to the RLA, under which there was no closed-shop system, is beside the point. See ibid. Congress was aware that under the NLRA, “the one system [the closed shop] ha[d] led to very serious abuses and the other system [the union shop] ha[d] not led to such serious abuses.” 93 Cong. Rec. 4886 (1947), Leg. Hist. 1421 (remarks of Sen. Taft). Accordingly, Congress banned closed shops altogether, but it made only limited inroads on the union-shop system that had been in effect prior to 1947, carefully describing its limitations on such agreements. H. R. Rep. No. 245, 80th Cong., 1st Sess., 9 (1947), Leg. Hist. 300; S. Rep., at 6-7, Leg. Hist. 412-413. It could not be clearer from the legislative history that in enacting the provisos to
The only “rights” protected by the
The Senate conferees also agreed with the House that some safeguard was needed to prevent unions from charging new members exorbitant initiation fees that effectively “close” the union, thereby “frustrat[ing] the intent of [
