Document: 447 U.S. 490 100 S.Ct. 2305 65 L.Ed.2d 289 NATIONAL LABOR RELATIONS BOARD, Petitioner,v.INTERNATIONAL LONGSHOREMEN'S ASSOCIATION, AFL-CIO, et al. No. 79-1082. Argued April 22, 1980. Decided June 20, Syllabus This case presents the question whether Rules on Containers (Rules) in a collective-bargaining agreement between International Longshoremen's Association (ILA) and employer organizations shipping industry which were adopted response to technological innovation of containerized are lawful work preservation agreement. The new technology involves use specially designed ships large, reusable metal receptacles can be removed off vessel unopened attached truck chassis transported intact from pier, saving costs time loading unloading warehousing cargo, as compared with amount on-pier involved handling loose cargo for conventional ships. available longshoremen has been further reduced by companies' practice making their containers (stuffing) (stripping) away pier shippers freight consolidators who combine goods various into single shipment. permit great majority pass over piers intact, reserving ILA right stuff strip at only those that would otherwise stuffed or stripped "locally" (within 50-mile radius port) anyone except employees beneficial owner company being liable specified liquidated damages any container handled violation Rules. Separate unfair labor proceedings brought before National Labor Relations Board (Board) truckers who, because operation against companies Rules' liquidated-damages provisions, could no longer perform local stuffing stripping services. concluded not valid clauses had traditionally done members, but instead performed truckers. It therefore held violated § 8(e) Act, makes unlawful agreements whereby agrees cease doing business other person, union action enforce 8(b)(4)(B), prohibits unions engaging secondary activities whose object is force one another. Court Appeals, consolidating cases holding erred matter law defining controversy, vacated Board's decisions, denied its applications enforcement, remanded cases. Held : definition controversy this dispute was erroneous law. Pp. 503-513. (a) To constitute agreement, must have objective represented union, contracting power give question. first most basic is: What "work" allegedly seeks preserve? Cf. NLRB v. Pipefitters, 429 507, 97 891, 51 1; Woodwork Manufacturers Assn. NLRB, 386 612, 87 1250, 18 357. 504-505. (b) Identification issue complex displacement requires careful analysis traditional patterns parties seeking preserve, how accomplish result under changed circumstances created advance. inquiry focus bargaining unit employees' work, may same similar examine relationship it existed proposes preserve it. P. 507. (c) conclusion "work controversy" off-pier erroneously focused after introduction shipping. That approach foreclosed, definition, possibility negotiate an them play part cargo. determination members load unload should beginning analysis. next step look sought extent possible, face massive change largely eliminated need intermediate stages intermodal transportation goods, evaluate longshore attempt assign members. 507-510. (d) Viewing preserved proper perspective, remand will free determine represent whether, instead, they tactically calculated satisfy goals elsewhere. informed awareness congressional preference collective method resolving disputes dislocations caused innovations workplace, rational efficient innovation, legally permissible effort jobs. If finds objective, then consider charging parties' contention organization did control containers. 510-512. 198 U.S.App.D.C. 157, 613 F.2d 890, affirmed. Lawrence G. Wallace, Washington, D. C., petitioner. J. Alan Lips, Cincinnati, Ohio, respondent Tidewater Motor Truck support Constantine Lambos, New York City, respondents Shipping Association, Inc., Thomas W. Gleason, Jr., AFL-CIO. Mr. Justice MARSHALL delivered opinion Court. 1 provisions opportunities acquire previously performed; therefore, 29 U.S.C. 158(e), 8(b)(4)(B) 158(b)(4)(B). (Dolphin Forwarding, Inc.), 236 N.L.R.B. 525 (1978); (Associated Transport, 231 351 (1977). A divided panel United States Appeals District Columbia Circuit declined orders. 890 (1979). We granted certiorari, 444 1042, 727, 62 728 (1980), resolve conflict among Circuits important federal law.1 2 * arises out east coast containerization, such profound effect frequently termed "the revolution."2 In words observer, "containerization said ocean transport since steamship displaced schooner."3 3 receptacles, ranging length 20 40 feet capable carrying upwards 30,000 pounds freight, moved unopened. Container constructed carry containers, affixed hold. also like trailer. 4 substantially more economical than methods ocean-borne cargo.4 Because does repacked moves warehouse dock, vessel, dock rail destination, significantly reduced. Expenses separate export packaging, storage, losses pilferage breakage, insurance processing documents decreased. Perhaps significantly, ship loaded unloaded fraction required ship.5 As result, unprofitable in-port each reduced, smaller number needed given volume cargo.6 5 Before ships, still vessels, trucks loose, break-bulk, head pier. transferred piece truck's tailgate employed stevedoring companies. checked sorted it, placed pallets forklift side ship, lifted means sling hook ship's hold.7 process reversed taken incoming With advent drastically piece. consolidators8 6 Containerization, then, advance importance threatened jobs dramatically increasing productivity.9 might expect, subject hotly disputed topic employers.10 concerned results affects Ports York, Baltimore, Hampton Roads, Va. B 7 necessary, discussing here issue, define certain terms art pertaining Loading called "stuffing"; "stripping." beneficially owned shipper consignee full shippers' loads (FSL). belonging consolidated loads. Such "less trailer load" (LTL) (LCL) 8 contain provision dealing 1959 (NYSA). At time, containerization infancy.11 prompted Dravo boxes eight cubic size. See Assn., (Consolidated Express, 221 956, 957 (1975), enf'd, 537 706 (CA2 1976), cert. denied, 1041, 740, 50 753 recognized NYSA "to all type [sic ] without restriction union." N.L.R.B., 957. return, agreed contribute royalty payments "containers non-ILA labor." Ibid. provided: 9 "Any connection discharging Port Greater terminals controlled them, through direct out, shall rates." 10 After reached, development accelerated. 1967, demanded negotiations crossing piers. Following lengthy strike, 1969 adopted, 1968-1971 (Rules). master ports North Atlantic coast, including Roads Baltimore. slightly modified 1971, another long strike. 1973 Council Associations (CONASA) executed "Dublin Supplement" "interpretive bulletin" substance Dublin Supplement incorporated version contained 1974-1977 agreement.12 11 essence, 1968 1971 provided if leased LTL within port area (that is, geographical miles labor. pay passed well damages, presently set $1,000 per container, declared applied designated FSL owner's own employees. noted exception warehoused locally least 30 days, and, enforcing Rules, prohibited employers releasing known facilities located port. 12 Thus, final 1974 leased13 coming bound points outside area, do practical some 80% intact. App. 612. remaining 20% longshoremen, regardless duplicates off-pier. C 13 two charges illegal activity appeal. Dolphin proceeding, (1978), concerns application LCL used operating York. Associated Transport (1977), Baltimore Roads. affected filed Board, alleging constituted "hot cargo" Act (Act) boycott Act. 14 facts underlying briefly stated. Inc. (Dolphin), San Juan Freight (San Juan), NVOCC consolidators, see n. 8, supra, soliciting throughout wished Puerto Rico.14 received customers' facilities, Using subcontracted labor, shippers, NYSA, filled trucked onto longshoremen.15 these practices, supplied assessed approximately $47,000. Those carriers furnish Thereupon, Board. 15 Houff (Houff), (Associated),16 Interstate Commerce Commission-licensed common operated motor Since consignees both beyond radius, routinely restuffed vehicles reasons economy, safety, state highway bridge regulations. 16 using restuff shortstopping. Although prior Supplement, expressly discuss 235-250, 270-276, apparently regarded shortstopping infraction, U.S.App.D.C., 162, F.2d, 895; 355 (Fanning, Chairman, dissenting). subsequent versions handle consignee's employees, consigned place days area. 17 became effective, shortstopped picked up CONASA container. When refused indemnify fines, cancelled interchange agreements. Houff, Associated, (TMTA), association member, charges. substantiated proceedings, relied previous decision 956 (1977) (hereinafter Conex ).17 Conex, explained 19 "held work-preservation longshoremen. never stop object." 526. Similarly, proceeding affirmed finding Administrative Law Judge (ALJ) "had historically work" 353 (emphasis original). short, view Therefore forbidden 21 appealed cross-applied enforcement orders.18 consolidated. controversy. proceedings. affirm. II 22 Section Act19 agents 8(e)20 collectivebargaining person. distinguish primary activity, we that, Congress intended reach objectives. 517, 897, Pipefitters ); 620, 635, 1255, 1263, 357 (1967) ). 23 Among purposes protected purpose preserving themselves them." U.S., S.Ct., 898. Whether depends "whether, surrounding circumstances, Union's [bargaining unit] [agreement was] objectives . touchstone maintenance addressed relations vis-a-vis his employees." Woodwork, 644-645, 1268 (footnotes omitted). Under approach, tests: First, union. Second, question—the so-called "right control" test supra. rationale second reasonable infer influence whoever work. "Were latter case, [the employer] neutral bystander, would, intent Congress, become secondary." 1268. 24 applying doctrine, Sometimes identifying require subtle example, carpenters general contractor fitting doors installed jobsite. always done, chose carpenters' simply prohibit purchasing prefitted incidentally consequence validity 510, 526, 894, 902. 25 But many so easy find starting point Work typically come when displaced, displacement, innovation. national policy expresses addressing threats workers posed increased automation" "labor-management ease effects vital problem advanced technology." 641, 642, 1267. instances, merely shifting different location. One way insist continue way. followed tactic negotiated prefabricated materials. §§ 8(b)(4)(B). protection afforded cannot limited solely respond intransigence. enacting 8(e), intend protect kinds agreements; rather, thought prohibiting directed preservation," 640, 1266. apply situations where accommodate while much possible.21 refined discriminating. 26 " '[t]he necessary piers.' 364 (decision ALJ, Board), quoting 959; determined containers," ibid.; 364-365. stated: "It clear record parties] premises." 959. union's jurisdiction performed. agree incorrect 27 reflects fundamental misconception doctrine our take account "all circumstances," U.S, 644, 1268, nature relatively simple rather scope. Other, broader view, taking transformation several interrelated industries types work; case. Whatever scope, however, carefully focused: work,22 28 contrast, parties, found trying ignores fact impact occurred interface transport; surprisingly, entirely appropriate considering truckers' misses judge contract shipowner employers. By focusing performed, took place, longshoremen's foreclosed—by definition—any For very reason have. Thus apparent sapped life." 176, 909. vividly demonstrated now chosen seek finishing blank construction jobsite employer, contractor, prefinished factory. current analyzing defined site." course, door manufacturers adoption perforce acquisition, preservation. 31 subcontractor pipefitters' pipe threading cutting Relying install climate-control units internal piping cut, threaded, refusal prepiped sought. Neither nor questioned clause enforced "cutting, threading, installing factory." there issue. 32 members.23 difficult either try prevent all—though consistent Pipefitters. Instead, permitted legality turns, initial matter, historical functional retained satisfaction elsewhere.24 33 Respondents assert reserved functionally equivalent former break-bulk pier.25 Petitioners-intervenors, hand, argue worked changes formerly completely eliminated. 34 These questions consideration reviewing courts. They properly raised determinations are, entitled deference. opportunity relation understanding address here. emphasize neither implies reconsideration foreordained.26 "tactically elsewhere," will, id., 641-642, 1266-67. judging thoroughly bargained accommodation change, 35 finds, remand, obliged preservation, decide right-to-control remains open remand. Therefore, arguments necessarily conception disputed,27 discussion premature. argued employers, Government regulation tariffs, bills lading, carriers, legal withhold services customers selective basis, condition access compliance indemnification fines imposed released carriers. See, e. g., 1916, 46 801 seq.; Intercoastal 1933, 843 Sea-Land Service, Inc.—Proposed Containers, F.M.C. 788 review pending, 78-1776 (CADC). contentions present problems us. 36 conclude correctly law, affirm Appeals' judgment vacating denying remanding 37 ordered. APPENDIX TO OPINION OF THE COURT CONASA-ILA RULES ON CONTAINERS PREAMBLE 38 Agreement made entered carrier referred collectively "CONASA") AFL-CIO ("ILA"), Coast ("ACD") affiliated ("locals") covers waterfront facility includes receiving delivery 39 directly (as hereinafter defined) regularly currently covered Agreements, craft agreements, unless Agreements. following crafts deepsea facilities. rules assure regulations uniformly imports containers: Definitions 41 Container—means act placing 42 Discharging removing 43 vessel—means aboard vessel. 44 45 (e) Waterfront facility—means vessels normally compound employer. (f) Qualified Shipper—means manufacturer seller having proprietary financial interest (other physical consolidation deconsolidation) named dock/cargo receipt. 47 (g) Consignee—means purchaser import order. 48 (h) Consolidated Load—means belongs 49 Rule 1—Containers Be Loaded Discharged Deepsea Cargo below discharged labor: (1) owned, (including wheels trailers), "containers", loads, go geographic described circle extending center "geographic area") 52 (2) ("manufacturer's label") (consolidated) "geographical area," 53 (3) (deconsolidated) area" accordance 2(b). 54 paid deep-sea rates conditions port, fringe benefits receivable Port. No once. 55 All 1(a)(1) above, ship. 56 consignee. 57 employee supply consolidator de-consolidator. operate specifically facility. 58 2—Containers Not 59 A. Export Cargo: 60 area". 61 qualified shipper's (manufacturer's label). 63 (4) mail, household person relocating residence, personal military personnel. B. Import 64 66 business, 67 bona fide public comply conditions. 68 1. warehouse. 69 2. pays normal out; storage fees minimum period thirty and; 70 3. course consignee; title 71 request documentation information permits Committee 1, met. avoidance evasion above conform deemed deconsolidator. 3—Batching 72 employer-member uses trucker remove deliver batches, substantial number, terminal rest (outside terminal) stored pending (or waiting arrival ship), reducing crafts, batching contract. 4—Headload 73 Where sends contains full, additional On discharge send 74 5—Overland Movement Non-CONASA 75 non-CONASA evading Agreement. non-CONASA-ILA evasion, movement violation. 76 6—Importers Advertising Evasion 77 circulation, writing, importers developed evade issuing lading what Committees advised 7—No Avoidance 78 fairly reasonably parties. obtain non-discriminatory fair implementation principles apply: 79 Geographic Area—Agreement based Should firm corporation pattern operations to, commencing at, upon party raise included shift rules. 80 Owned, Leased Used—Containers Affiliation include subsidiaries and/or affiliates effectively parent, stockholders them. 81 Liquidated Damages—Failure considered Use improper, fictitious agent pay, joint Royalty Fund, discharged. exhausting appeal imposition 9(a) below, working carrier's until paid. 82 Any service 83 8—Renegotiation Cancellation—No Arbitration 84 term Agreement, provided, cancel December 1974, (30) written notice desire renegotiate Negotiations during day unable end period, cancelled. Thereafter, refuse hire shall, condition, grievance arbitration 85 9—Enforcement 86 equally management formed responsibility hear violations inability processed applicable hereof. committee, Committee, representatives (to mutually upon) Port, namely, Boston, Rhode Island, Philadelphia, meet quarterly year insuring uniformity interpretation 88 together develop uniform prepared maintained order readily identify obligation employer-members clearly mark container's marked, respect facility, Checkers Clerks. distribute devices circumvent Containers. attention immediately report policing agency 89 Every destined 50-miles orders receipts certify origin name names whom shipped. identity weight destination Copies below. 90 promulgate interpretations made. issued. Committees, 91 Policing Agency—Each establish basis. implemented presented approved Committee. 10—Container Payments 92 payable once Continental States. rates. payment (provided paragraph 1971-1974 Memorandum Agreement) continued benefit only, supplemental cash benefits, originating foreign transshipped ultimate ("foreign sea-to-foreign-sea containers") exempt royalties. 93 Chief BURGER, STEWART, REHNQUIST, STEVENS join, dissenting. 94 turns viewed exclusively perspective ILA, regard aspects evolutionary characterized broadly vessels; gives plausible sufficient escape carriers—many members—the claim teamsters, truckers, inland laborers. Which perspectives chosen, turn, function "container." 95 Court's runs astray. Court, work-in-controversy instant analogous (1967), although disclaims this. Compare ante, 508-509, 509-510. viewing should, "under "wash." carpenter's world, plumber, "container" seen sometimes hold truck—and independent component. 96 functions sea land systems. recognizes complexities involved, 509-510, 23, seem logical inferences vast reservoir experience day-to-day industrial operations. blink reality we, does, aspect affected. understood here; consequently, invalidated functioning trailers. N.R.L.B. (1978). failure appreciate distinction unwillingness concede significance underscores why courts intimate workings implicated. 531-532, 905. Calling make so. argues Brief Respondent 4. Superficially appear acquiesced context arising Harbor Workers' Compensation (LHWCA). Northeast Marine Terminal Co. Caputo, 432 249, 270-271, 2348, 2360-61, 320 (1977); C. Pfeiffer Ford, 69, 328, 225 Even narrow context, reading statements shows "maritime employment" meaning LHWCA "moves transportation." Pfeiffer, 84, 338. characterization toward key case—that system. 98 Prior functioned industry. Teamsters others consolidators. reached task moving Longshoremen inbound land-based truck. contents 959 359, 365. 99 functions. Their use, 960, cargo-carrying removable vehicle outbound reaches whatever "unpack" it; itself fits bed chassis. hoisted hooked tractor; tractor-trailer driven transportation. me, aspects—loading trucks. insofar regulate happens containers—as distinguished contents—while pier; invalid attempt, shipowner/employers, left overland 101 say main too simplistic view; closes eyes evolution freight. purposes, relevant review. seems me saw—that transportation—the trailers—away supports Through it.1 8(e). 102 complains takes equal efficiency. Tr. Oral Arg. 49, 51. everyone found, experience, true, event assertion others. modern, mechanism bring transporters mitigate technology, lawfully reaching gross perversion conduct; here, ceases shield becomes sword cut 103 prepacked "violates" demands utterly useless repacking alternatively fine owns container.2 nothing less invidious form "featherbedding" block modern progress. Allowing compromises thing; sanctions today quite another—taking provide economically 104 obviously ill comfort restrict scope intimation claimed limit.3 court deceived itself, puts blinders asserting "groundless" logic allow follow around country far ." Ante, 510 24. occur, states, "[t]hat bear wholly analysis." 105 "reduce absurdity," 3, ask "would strained reasoning, same—the contested else. And, analysis, "[t]he employment severe, irrelevant affect employer." 22. 106 implying suddenly arbitrary limit, exposes error, comforted limit.4 confined "on pier," actual bears 500 away. looking refusing whole, did, recalls blind elephant's tail, concludes snake. fails, explain limit acceptable 50-plus so, hence widening swallows 107 compromise ILA's asserted companies) save violate decreed, attempts regulate, economic pressure companies, NLRA. 108 findings supported evidence cf. 531, 905, accordingly I reverse directions contrary Local 1575 560 439 (CA1 1977), Humphrey 548 494 (CA4 1977). Ullman, Role American Ocean Forwarder Intermodal, Containerized Transportation, J.Mar.L. & Comm. 625, 627 (1971); Schmeltzer Peavy, Prospects Problems Revolution, 203 (1970); Note, Containerization Intermodal Service Shipping, Stan.L.Rev. 1077, 1078 (1969). Ross, Response Technological Change: Tale Two Unions, Lab.L.J. 397, 398 (1970). supra 399-400; 2, 206-210; 1087-1092. 399 (36-48 hours, vessel); 208 (8 hours days). 1088 (container spends 25% 60% vessel). certified "[a]ll engaged rigging coaling same, cargoes, ships' stores baggage, lines docking undocking hatch bosses; repairmen, checkers, clerks timekeepers assistants, clerks; maintenance, mechanical miscellaneous workers; horse cattle fitters, grain ceilers, marine carpenters, vicinity. 116 1183, 1188 (1956) (footnote combines shipment delivers Ordinarily, pick-up equipment. lines, goods. Comment, Transportation Forwarder, Yale L.J. 1360, 1362 (1967). acts arranging nonvessel water (NVOCC), regulated Federal Maritime Commission. Commission, Preliminary Staff Report Non-Vessel Operating Common Carriers Water (Dec. 1970); generally 159, 892; 400. ILA. shipowners belong employers' organizations. (NYSA), Steamship Trade (STAB), (HRSA). 1970, (CONASA), multiemployer representing associations STAB, HRSA, master-contract fitted began late 1950's Rico. 117. 1966, percentage 3%. 398. 1965 1966. 161, 894; 351, 359 reproduced appendix opinion. "owned leased" 237, 238, 247, 272, 273. refers "owned, carriers." infra, 514. There indicate led us infractions relating assume 179, 912; 526; 359; 958, (1975); 353, ceased years contended listed Massachusetts established 1972, adopted. Chicago 166, 899. business. litigated 1970 Second rejected antitrust laws. came exemption. Intercontinental Corp. 426 884 1970). plaintiff initiated related filing Regional Director's dismissal charges, ground General Counsel. 621. intervened appeal, TMTA intervene issued decision. 8(b), forth 158(b), provides pertinent part: agents— "(4)(ii) threaten, coerce, restrain commerce affecting commerce, thereof is— "(B) forcing requiring using, selling, handling, transporting, products producer, processor, manufacturer, Provided, (B) construed strike picketing. enter express implied, refrains refrain transporting heretofore hereafter containing unenforcible void Recapture Agreements Secondary Boycotts: Harv.L.Rev. 815 hardly add not, seemed suggest, deciding big box. usefulness lies precisely integral truck, railroad car carried rail. Obviously, depend closely tailored essence patterns. upheld able groundless. contend significant advantage gained locally. dissenting CHIEF JUSTICE proceeds assumption post, 528, 525, 528-529. Our holding, repeat, sustained answered plain outcome as, by, possession of, thus classic "labor" versus "management." Here, segment segment, impose device. natural, individuals—and unions—to want "preserve" "theirs." balancing urge spell progress reduce consumer cost. complaints hears echoes stablekeepers harness automobile wide acceptance. practices utilization machinery, methods, retarded. Obsolete machinery obsolete tend anxious risk investment capital labor-saving, cost-reducing mechanisms if, tribute privilege penalty offsets savings. court's recites: imagine unhappy subjecting exercise reductio ad absurdum ruling, literally chase country, demanding them? short answer: radiate restricted port." 177, 910, 177 strictly limit. relocates opens nonetheless apply. 7(a) reprinted appendix, 518.

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