Document: 453 U.S. 322 101 S.Ct. 2789 69 L.Ed.2d 672 NATIONAL LABOR RELATIONS BOARD, Petitioner,v. AMAX COAL COMPANY, A DIVISION OF AMAX, INC., et al. UNITED MINE WORKERS AMERICA, LOCAL NO. 1854 al., Petitioners, v. BOARD Nos. 80-692, 80-289. Argued April 28, 1981. Decided June 29, Rehearings Denied Sept. 23, See 950, 102 26. Syllabus Amax Coal Co. owns several deep-shaft coal mines in the Midwest, with respect to which it is a member of Bituminous Operators Association (BCOA), national multiemployer group that bargains union representing Amax's employees. Under collective-bargaining contract union, Amax, along other members BCOA agreed contribute union's pension and welfare trust funds, were established under § 302(c)(5) Labor Management Relations Act (LMRA). In accord 302(c)(5)(B), funds are administered by three trustees, one selected BCOA, two. When opened surface mine Wyoming, did not join negotiated separate contributed specified amounts money benefit employees at mine. this ended, struck others, an attempt compel owners establish bargaining unit agree new employer would funds. subsequent negotiations between came impasse strike continued mine, filed National Board (NLRB) unfair labor practice charges against union. claimed any management-appointed trustee fund was "representative" within meaning 8(b)(1)(B) Act—which makes for "to restrain or coerce . selection his representatives purposes collective adjustment grievances"—and therefore, since management had already been insistence participate regard constituted illegal coercion (8)(b)(1)(B). The NLRB held violated 8(b)(1)(B). Court Appeals reversed, holding trustees act as both fiduciaries employee beneficiaries agents appointing employers, and, insofar consistent their fiduciary obligations, expected administer trusts such way advance employer's interests. court accordingly concluded exerting its economic power induce Held: Employer-selected "representatives" "for grievances" Pp. 328-338. (a) duty inconsistent agent party. Given rule law has unwavering complete loyalty beneficiary trust, exclusion interests all parties, use terms "held trust" sole exclusive families dependents," must be inferred Congress intended incorporate trusts, unless unequivocally expressed contrary intent. Nothing 302(c)(5)'s language reveals intent should may interest party appointed him, direct supervise decisions he appointed. And LMRA's legislative history confirms designed reinforce, alter, trustee's duty. 328-332. (b) Whatever have implicit Congress' view became explicit when enacted Employee Retirement Income Security 1974 (ERISA), essentially codified strict standards meet. ERISA's prevent from being put position where dual loyalty. 332-334. (c) Section primarily unions forcing employers units, dictate identity those who represent settlement grievances. bargain does pose danger thereby sought prevent. Moreover, pressure force amount dictating shall him grievances, because simply do not, such, engage these activities. 334-338. 614 F.2d 872 (3 Cir.), reversed remanded. Harlon L. Dalton, Washington, D.C., N.L.R.B. Harrison Combs, UMW America, Daniel F. Gruender, Phoenix, Ariz., Company, Justice STEWART delivered opinion Court. 1 This litigation concerns relationship two important provisions Act, 1947 (LMRA).1 amended LMRA, 61 Stat. 141, grievances ."2 157, permits create employer-financed so long equally represented funds.3 question issue whether employer-selected created 2 * bituminous mines, most them Midwestern United States. Mine Workers America (the union) represents employees, midwestern Through These provide comprehensive health retirement benefits miners families. two.4 3 1972, Belle Ayr company's first sub-bituminous Although resembled contract, Ayr. January 1975, collectively-bargained covering western attempting proposed resisted, threatened complaint Regional Counsel illegally into unit, soon began Amax. Those impasse, Mine. then 4 matter major barrier agreement formed part before Board. own plan, outside purview 302(c)(5), but claiming plan sufficiently portable reciprocal rejected proposal. Rather, insisted even separately employer, continue course, participated selecting now wanted appoint took 8(b)(1)(B); contended Act. also charged refusing good faith violation 8(b)(3) Act.5 5 unanimously acted legally striking obtain participation employees.6 noted purpose ensure can through freely chosen representative completely faithful principles agency law, while joint fund, though appropriately consider recommendations appoints owing undivided administering trust.7 Accordingly, 6 On cross-petitions Third Circuit relying on earlier decision Associated Contractors Essex County, Inc. Laborers International Union, 559 222, 227-228 (2 employee-beneficiaries 872, 881-882, Cir.). therefore Mine, Board's ruling contrary. We granted certiorari federal cases present. 449 1110, 917, 66 838. II 7 302(a) Act8 generally prohibits making payments allows satisfies certain statutory requirements. To used "war chest," Arroyo States, 359 419, 426, 79 864, 868, 915, provides only dependents, basis laid out detailed written employer.9 subject annual audit, results audit made available interested persons.10 Furthermore, annuity kept funds.11 Finally, 302(c)(5)(B) requires "employees [be] administration together neutral persons upon ."12 8 directed formal assets trust," dependents ." 29 U.S.C. 186(c)(5). Where uses accumulated settled either equity common infer, statute otherwise dictates, means terms. Perrin 444 37, 42-43, 100 311, 314-15, 62 199. equity, bears parties. Restatement (Second) Trust 170(1) (1957); A. Scott, Law Trusts 170 (1967). deter temptation possible injury beneficiary, dividing loyalties enforced "uncompromising rigidity." Meinhard Salmon, 249 N.Y. 458, 464, 164 N.E. 545, 546 (Cardozo, C.J.). cannot contend "that, although conflicting interests, served masters well primary weakened pull secondary one." Woods City Bank & Co., 312 262, 269, 493, 497, 85 L.Ed. 820. 9 courts chancery, we infer impose traditional duties Owens Independence, 445 622, 637, 1398, 1408, 63 673. However, equal balance nothing congressional appointed.13 LMRA long-established trustee. 10 As explained Senator Ball, sponsors provision, "sole purpose" "are legitimate actually 93 Cong.Rec. 4678 (1947). Ball stated "all seek [§ 302(c)(5)] make sure whose builds really entitle receive benefits; that, if necessary, they go entitled." Id., 4753; see H.R.Conf. Rep. No. 510, 80th Cong., 1st Sess., 66-67 (1947), NLRB, Legislative History Labor-Management 1947, p. 570 (1948) (Leg.Hist. LMRA). debates further reveal cast plans form precisely best protect beneficiaries. For example, opponent bill suggested 305(c)(5) unnecessary without "officials [the fund] become State safeguards misuse trustees." 4751 (1947) (Sen. Morse). Taft, author entire answered many existing expressly requirement each express enforceable future operations supervision chancery. 4753 id., Ball); 3564-3565 (Rep. Case, House patterned). sum, directly antithetical party.14 11 remained passed 88 829. ERISA §§ 1002(1) (2); H.R.Conf.Rep.No.93-1280, pp. 296, 307 (1974), U.S.Code Cong. Admin.News 1974, 4639. 404(a)(1) "discharge solely participants 1104(a)(1).15 406(b)(2) declares "act transaction involving behalf (or party) adverse beneficiaries." 1106(b)(2). 405(a) imposes affirmative every same breaching duties, including 1105(a). 12 requirements specifically insulate interest. Except circumstances excess contributions termination "the never inure providing defraying reasonable expenses plan." 403(c)(1), 1103(c)(1). 406(a)(1)(E) "party interest," 407 carefully limits types employer-owned property securities trust. 1106(a)(1)(E), 1107.16 vests "exclusive authority discretion manage control plan" alone, 1103(a). 13 particular "from engaging actions there conflict dealing fund." S.Rep.No.93-383, 31, 32 (1973), 4917. short, loyalties, exclusively plan's supra, 309, 5089.17 III 14 demonstrate overcome him. Thus, statutes defining virtually self-evident "representatives But close examination latter provision clearer limit freedom try select trustee.18 15 largely American Broadcasting Cos. Writers Guild, 437 411, 422-423, 429-431, 435-436, 98 2423, 2430-31, 2433-34, 2437, 57 313; Florida Power Light Electrical Workers, 417 790, 803, 94 2737, 2744, 41 477; S.Rep.No.105, pt. 1, 21 Leg.Hist. 427; 4143 Ellender).19 concern some Senators could industrywide large might exercise monopoly over wages call strikes threatening portions economy. 51, 457; 4582-4588 Taft). treated issues units quite distinctly. It permissible public, independently association, exerts protection medium fund. 16 term "collective bargaining" defined 8(d): 17 "[T]he performance mutual obligation meet times confer wages, hours, conditions employment, negotiation agreement, arising thereunder, execution incorporating reached requested party, proposal require concession 158(d). 18 definition, reach negotiation, failing free settle differences resort weapons lockouts, compulsion agreement. Carbon Fuel 212, 219, 410, 415, 394; Insurance Agents, 361 477, 495, 80 430, 454. 19 atmosphere operate, mandated ERISA, wholly process compromise pressure. union-appointed set employer-employee contract; neither required original collectively bargained nor claims latter's contributions. operate 186(c)(5)(B), itself product employer.20 Indeed, enforce regarding States Carter, 353 210, 220, 77 793, 798, 776. disputes cannot, parties bargaining, lead strikes, exercises power. whereas compulsory arbitration resolving disputes, explicitly resolution deadlocks among umpire. Compare 158(d) 186(c)(5); n. 12, supra.21 20 Like employee. 159(a). trustees' concern, however, "grievances" adjust concerning eligibility Chemical Pittsburgh Plate Glass 404 164-171, 92 383, 393, 30 341. adopted principle voluntary settlement, governmental compulsion, 203(d) 173(d), deadlock matters, like deadlock, submitted procedure 302(c)(5). "Both reflect clearly focused activities, namely grievances." U.S., S.Ct., 2744. employer-appointed ago developed specific totally alien Appeals, mistaken believing conduct case 8(b)(1)(B).22 22 reasons stated, judgment remanded proceedings opinion. 23 ordered. 24 STEVENS, dissenting. 25 key case, my judgment, distinction person office manner performs after provided number serve jointly funds.1 Giving side table appointment half obligations assume office. Conversely, imposition responsibilities surely lend support Court's quixotic notion interfere—by necessary—with management's representatives. 26 Three different theories deciding favor union). First, conclude merely trying no Second, Association, claim interfering prerogative management. Third, 27 If relied rationales, read resting blend three, particularly significant. I believe, will veto fund.2 opinion, foreclosed rather plain flagrantly odds Congress. 28 representation restrictions employed mismanagement officials. See, e. g., 915; Contractors, 226 (CA3 1977).3 Equal required, satisfy demands voice administration,4 insure paid purpose. Taft explained: "Certainly find war chest supposed established, definite purposes, legal rights kind entitled deductions wages. "This amendment is, effect, abuse right pending study whole problem. Otherwise think racket. very easy racket." 4747 31 labor-management central factor formula abuse. Inc., 227; Toensing Brown, 374 F.Supp. 191, 195 (N.D.Cal.1974), aff'd, 528 (CA9 1975). repeatedly word "trustee" identify compliance "representative." qualify persons.5 nevertheless reasons. reminder insuring neutrality give trustees. recognition fact often gives rise questions entirely duties. 33 extended discussion has, little bearing presented case. undisputed confronted here necessarily status. answers citing counterparts. approach leads error ignores underlying achieve 34 broad policy matters reasonably views. Besides describing "representatives," recognized arise, resolve event groups." suggests lines serves effective safeguard. seems ignore today, past courts6 commentators.7 35 ample room differences. authorizes determine how much cash operator account production salvaged coal. App. 98k-98l. That detail covered basic left light changing circumstances. issue, charge breach favoring lower rate than suggest. 36 states "compromise contributions" Ante, 336. what contributor unable pay bills currently? Do enter temporary arrangements compromises?8 investment certainly arise. Conceivably, conservative policies guarantee long-range solvency investments higher yields demand more liberal next session. No eliminate need discretionary impermissible consideration confronting day-to-day administrative problems. 37 Some processing applications almost identical arise grievance proceedings. Rights seniority measured, part, employee's length service. Either approval disapproval benefits, necessary dispute measure period employment. Bargaining tend develop unwritten "law shop" recurring minor disputes; me similar sides points develops. impartiality total divorce represents; rather, guaranteed having decisions, always fiduciaries. scheme perfectly clear terms.9 38 compromised bargaining. mitigated named less costly grant wage increase.10 Any inevitably destroy precise directing BLACKMUN aptly Eighth Circuit: 39 "[T]o permit degree choice violence standard representation." Blassie Kroger 345 58, 72 (1965).11 40 today "does standard" misapprehends safeguard instead applies little, any, relevance presented. addition arguing inherent inconsistency "representative"—and Congress—the 8(b)(1)(B), 158(b)(1)(B).12 narrow, prohibition interference relatively small function Once again, overlooks supervisor's selected. believe narrow construction Congress, personnel however minor, grievance-adjustment responsibilities. history, 42 source 477—a involve supervisors. "a discipline supervisory constitute adversely affect performing of, acting capacity as, adjuster bargainer employer." 804-805, 2744-45. enough show disciplined supervisor responsibilities; relate 429-430, 313. appropriate element indirectly affects "selection" representatives, focus statute. whenever impact representative, bear representative's duties; sufficient portion overall 43 supports reading aimed actual foremen senior executives company agent. sparse comments persuade description refer category prerogative. 44 using example unpopular foreman responsibility adjusting He said: 45 referred perhaps tremendous importance, say 'We Mr. X, X. You send us Y.' done. saying 'You fire Foreman Jones. Jones, you work.' " 3837 46 few days later, brief deal "strikes invading prerogatives management," Ellender identified 8(b)(1) "either director foreman, official." His management, narrowly restricted reference principally involved adjustment.13 47 Therefore, sustain narrowest literal bargaining," agreements generally, particular, authorize groups activity. broadly defines encompass conference thereunder." 158(d).14 Such manifestly duties.15 48 delegating fix contribution production, 345, trustee.16 trustee, literally engaged about various connection activity resolved umpire change character function. 49 decide when, indeed ever, refusal another practice. true imposed 1001 seq., remedy designate board strictly statute, structure, purpose, pursuant passed, conclusion strike.17 Appeals' affirmed. respectfully dissent. 141 seq. 158(b)(1)(B). sets describes method periodic audits, reports, notices. fixes employers' requiring cents per ton produced, exception themselves retain slurry, sludge, refuse. 158(b)(3). found bad 8(b)(3), notify Federal Mediation Conciliation Service striking, insisting proposals 8(e) 158(e). affirmed rulings, Sheet Metal Workers' Assn. Edward J. Carlough (Central Sheetmetal Assn., Inc.), 234 1238 (1978). 186(a). medical hospital care, pensions death compensation injuries illness resulting occupational insurance foregoing, unemployment life insurance, disability sickness accident insurance." 186(c)(5)(A). 186(c)(5)(B). 186(c)(5)(C). administration, arbiter, "in failure time, impartial shall, petition group, district principal intend equitable prevents officers vast employer. 425-426, 915. "represents" sense ensures Nowhere Member suggest fact, opponents objected management-union onerous employers. E. 4749 Murray). litigation: prohibit One events greatly influenced efforts culminating John Lewis, head produced itself. Ryan, 350 299, 304-305, 76 400, 404, 335; 52 458. Reports despite considerable opposition Lewis' demands, ibid.; 3423, 3516-3517, (remarks Reps. Hartley, Fisher, Case); 4678, 4746-4748 (Sens. Byrd Taft), rendered mandatory subjects prohibiting managed H.R. 3020, Sess. 2(11), 8(a)(2)(C)(ii) 39-40, 51; H.R.Rep.No.245, 14-17 305-308. "participant" "any former eligible type ., benefit." 1002(7). "beneficiary" designated participant, 1002(8). 408(c)(3) follow law's 1980, passing Multiemployer Pension Plan Amendments Pub.L. 96-364, 1209, reaffirmed beneficiaries, H.R.Rep.No.96-869, 67 (1980), 2918. Neither refers other, Committees considered nowhere relevant faced fixed percentage receipts denied demands. 14, supra. Another here, who, view, too stern treatment 3837-3838 governing salvage 4, review according good-faith 158(a)(5), (b)(3), (d). thrust "into area regulation [has] committed it," 499, 432, simultaneous Board, Secretary Labor, courts, torn ERISA. 1105(a)(3), (b)(1)(A). hand, bars agent's accordance instructions. 436, carrying conflicts recent legislation plans. litigation, unaffected pressure, benefiting Since, impossible participating power, upholding effectively preclude resorting cause 1980 strengthen funding enhance financial stability amendments, foster maintenance growth [and] financially distressed plans." 3(c)(2) (c)(3) 1209-1210. 3(a)(4)(A) "withdrawals contributing [affect] relations. 1209. runs afoul trusts. creates general contains exception: "The section applicable thing value families, payments, dependents): Provided, (A) paying, income both, insurance; (B) empowered break dispute, District office, contain statement inspection places agreement; (C) annuities therein paying "close 8(b)(1)(B)] trustee." 334. containing numerous references Lewis see, S.Rep.No. 105, reprinted 458 LMRA); 3564-3569, A1910 (1947); 4746-4748, 5015; replete expressions 458; 3569 4746-4747, 4752-4753 response concerns. "In words, creating respecting leadership come supposedly second." 4753. 3564 4746. 302 argued absolutely 4749, 4751-4752. significant reliance "[w]here terms." 329. 222 (C.A.3 1977), inevitable views essential feature Congress: starting point analysis candid quasi-adversarial nature. Naturally, funds' them. Insofar ongoing improve legitimate—indeed, operation envisioned distilling corruption." (citations omitted). Ader Hughes, 303, 308 (CA10 1978); Lamb Carey, 162 U.S.App.D.C. 247, 251, 498 789, 793 cert. sub nom. Carey Davis, 419 869, 95 128, 108; commentator described scheme, follows: entered specify categories normally delegates levels requirements, modify plan. "Exercise differ. potential divergence reason representation. Employer check untrammeled possibility leading breaking umpire." Goetz, Developing Welfare Plans, 55 Cornell L.Rev. 911, 922-923 (1970) (footnote Benefit 59 Nw.U.L.Rev. 719, 748 (1965). record contrary: Trustees take action deem collect delinquencies, advise Union Districts Locals least monthly basis, delinquencies continue." 98p. above, appear 302(c) LMRA. dispute. fungible once Because fund's unlikely willing risk order preserve choose suggests, probably unwelcome burden best, worth defending strife. Cf. Cox, Aspects Harv.L.Rev. 274, 290, 314 ("The up watchdog, fund"). F.2d, Quad Builders Tri Bricklayers 431 999, 1003 (CA8 1970). 8(b) provides, pertinent part: "It organization agents— "(1) Ellender's full reads "I briefly association. bill, subsection page official. heard discuss early afternoon recall forced foremen. They taking membership seeks prescribe interferences." 8(d) reads: "For section, wall activities based exist. observed: scope "Despite unusual setting, deliberations looked extension contractual limits." supra 7, L.Rev., 922, 923. F.Supp., 195-196. provides: "Section (e) Responsibilities Duties Each Trustees, whom Employers; Union; two." 98n (emphasis added). (MPPAA), notwithstanding. ante, 338-339, 22. While sought, plans, address withdrawal withdrawing proportional share unfunded vested benefits. MPPAA 104, 1217. allay

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