Source: https://supreme.justia.com/cases/federal/us/386/612/
Timestamp: 2019-04-22 08:12:53+00:00

Document:
National Woodwork Manufacturers Association v.
in Allen Bradley Co. v. Union, 325 U. S. 797, and the NLRB petitioned for certiorari (No. 111). The court sustained dismissal of the § 8(b)(4)(B) charge, agreeing with the NLRB that the Union's conduct as to Frouge was a primary dispute, and, as such, came within the exemption proviso of Clause (B), and the NWMA petitioned for certiorari (No. 110).
1. Section 8(b)(4)(B) was enacted not to prohibit primary agreements and primary action directed to work preservation, but to prohibit "secondary" objectives, i.e., the exertion of pressure on a neutral employer. Pp. 386 U. S. 619-633.
(a) Congress has stopped short of proscribing activity to pressure the employer for agreements regulating relations between him and his own employees. P. 386 U. S. 620.
(b) The predecessor of § 8(b)(4)(B) (the basic thrust of which was not changed by the Landrum-Griffin amendments) was enacted to eliminate the "secondary boycott" designed to injure the business of a third person not concerned in the disagreement between an employer and the union. Pp. 386 U. S. 623-626.
(c) Judicial decisions interpreting the predecessor of § 8(b)(4)(B) uniformly limited its application to "secondary" situations, and this Court has consistently refused to read the provision as banning traditional primary labor activity having an impact on neutral employers, even though such activity fell within the literal terms of the provision. Pp. 386 U. S. 626-627.
(d) Allen Bradley Co., supra, distinguished. Pp. 386 U. S. 628-631.
(e) In rewriting the predecessor provision as § 8(b)(4)(B), Congress confirmed the limited application of the section to "secondary" conduct, adding the proviso that nothing therein "shall be construed to make unlawful, where not otherwise unlawful, any primary strike or primary picketing." Pp. 386 U. S. 632-633.
2. Section 8(e) likewise does not reach employees' primary activity, and does not prohibit agreements made to pressure their employer to preserve for themselves work traditionally done by them. Pp. 386 U. S. 633-642.
(a) The addition of § 8(e) to the Act was designed to plug a loophole resulting from Carpenters' Union v. Labor Board (Sand Door), 357 U. S. 93, in which it was stressed that the mere execution of or an employer's voluntary observance of a "hot cargo" clause did not violate the predecessor of § 8(b)(4)(B). Pp. 386 U. S. 634-635.
(b) The legislative history of § 8(e) and provisos preserving the status quo in the construction industry and exempting the garment industry from the prohibitions of §§ 8(e) and 8(b)(4)(B) indicate that primary work preservation agreements were not to be within the ban of § 8(e). Pp. 386 U. S. 635-642.
3. Substantial evidence supported the Trial Examiner's finding, adopted by the NLRB, that the "will not handle" provision was designed to preserve work traditionally performed by jobsite carpenters, and that the Union's making of the "will not handle" agreement and its maintenance thereof did not, respectively, violate §§ 8(e) and 8(b)(4)(B). Pp. 386 U. S. 645-646.
354 F.2d 594, affirmed in No. 110 and reversed in No. 111.
performed in the Philadelphia area by the carpenters employed on the jobsite. However, pre-cut and pre-fitted doors ready to hang may be purchased from door manufacturers. Although Frouge's contract and job specifications did not call for premachined doors, and "blank" or "blind" doors could have been ordered, Frouge contracted for the purchase of premachined doors from a Pennsylvania door manufacturer which is a member of the National Woodwork Manufacturers Association, petitioner in No. 110 and respondent in No. 111. The Union ordered its carpenter members not to hang the doors when they arrived at the jobsite. Frouge thereupon withdrew the prefabricated doors and substituted "blank" doors which were fitted and cut by its carpenters on the jobsite.
who have performed that work in the past. Its purpose is plainly to regulate the relations between the general contractor and his own employees and to protect a legitimate economic interest of the employees by preserving their unit work. Merely because it incidentally also affects other parties is no basis for invalidating this provision."
"I find that . . . [the provision] is a lawful work protection or work preservation provision, and that Respondents have not violated Section 8(e) of the Act by entering into agreements containing this provision and by thereafter maintaining and enforcing this provision."
The Court of Appeals for the Seventh Circuit reversed the Board in this respect. 354 F.2d 594, 599. The court held that the "will not handle" agreement violated § 8(e) without regard to any "primary" or "secondary" objective, and remanded to the Board with instructions to enter an order accordingly. In the court's view, the sentence was designed to effect a product boycott like the one condemned in Allen Bradley Co. v. Local Union No. 3, 325 U. S. 797, and Congress meant, in enacting § 8(e) and § 8(b)(4)(B), to prohibit such agreements and conduct forcing employers to enter into them.
"[t]hat nothing contained in this clause (B) shall be construed to make unlawful, where not otherwise unlawful, any primary strike or primary picketing. . . ."
We granted certiorari on the petition of the Woodwork Manufacturers Association in No. 110 and on the petition of the Board in No. 111. 384 U.S. 968. We affirm in No. 110 and reverse in No. 111.
"familiar rule that a thing may be within the letter of the statute and yet not within the statute, because not within its spirit nor within the intention of its makers."
"to a marked degree, the result of conflict and compromise between strong contending forces and deeply held views on the role of organized labor in the free economic life of the Nation and the appropriate balance to be struck between the uncontrolled power of management and labor to further their respective interests."
Board, 350 U. S. 270; Labor Board v. Lion Oil Co., 352 U. S. 282; Labor Board v. International Rice Milling Co., 341 U. S. 665; Local 761, Electrical Workers v. Labor Board, 366 U. S. 667.
"from ceasing to patronize or to employ any party to such dispute, or from recommending, advising, or persuading others by peaceful and lawful means so to do."
to withhold or withdraw patronage from complainant through fear of loss or damage to themselves should they deal with it."
Duplex Printing Press Co. v. Deering, supra, at 254 U. S. 466.
"where many combine to injure one in his business by coercing third persons against their will to cease patronizing him by threats of similar injury. . . . The question in such cases is whether the moral coercion exercised over a stranger to the original controversy by steps in themselves legal becomes a legal wrong."
"established that the allowable area of union activity was not to be restricted, as it had been in the Duplex case, to an immediate employer-employee relation."
"This provision makes it unlawful to resort to a secondary boycott to injure the business of a third person who is wholly unconcerned in the disagreement between an employer and his employees. . . . [U]nder the provisions of the Norris-LaGuardia Act, it became impossible to stop a secondary boycott or any other kind of a strike, no matter how unlawful it may have been at common law. All this provision of the bill does is to reverse the effect of the law as to secondary boycotts. [Footnote 11]"
"Thus, it would not be lawful for a union to engage in a strike against employer A for the purpose of forcing that employer to cease doing business with employer B; nor would it be lawful for a union to boycott employer A because employer A uses or otherwise deals in the goods of or does business with employer B (with whom the union has a dispute)."
others from pressures in controversies not their own."
Labor Board v. Denver Bldg. Trades Council, 341 U. S. 675, 341 U. S. 692. This Court accordingly refused to read § 8(b)(4)(A) to ban traditional primary strikes and picketing having an impact on neutral employers, even though the activity fell within its sweeping terms. Labor Board v. International Rice Milling Co., 341 U. S. 665; see Local 761, Electrical Workers v. Labor Board, 366 U. S. 667. Thus, however severe the impact of primary activity on neutral employers, it was not thereby transformed into activity with a secondary objective.
The literal terms of § 8(b)(4)(A) also were not applied in the so-called "ally doctrine" cases, in which the union's pressure was aimed toward employers performing the work of the primary employer's striking employees. The rationale, again, was the inapplicability of the provision's central theme, the protection of neutrals against secondary pressure, where the secondary employer against whom the union's pressure is directed has entangled himself in the vortex of the primary dispute.
"[T]he union was not extending its activity to a front remote from the immediate dispute, but to one intimately and indeed inextricably united to it."
in strikes or concerted refusals to handle goods."
Local 1976, United Brotherhood of Carpenters v. Labor Board (Sand Door), 357 U. S. 93, 357 U. S. 100.
Despite this virtually overwhelming support for the limited reading of § 8(b)(4)(A), the Woodwork Manufacturers Association relies on Allen Bradley Co. v. Local Union No. 3, 325 U. S. 797, as requiring that the successor section, § 8(b)(4)(B), be read as proscribing the District Council's conduct in enforcing the "will not handle" sentence of Rule 17 against Frouge. The Association points to the references to Allen Bradley in the legislative debates leading to the enactment of the predecessor § 8(b)(4)(A). We think that this is an erroneous reading of the legislative history. Allen Bradley held violative of the antitrust laws a combination between Local 3 of the International Brotherhood of Electrical Workers and both electrical contractors and manufacturers of electrical fixtures in New York City to restrain the bringing in of such equipment from outside the city. The contractors obligated themselves to confine their purchases to local manufacturers, who, in turn, obligated themselves to confine their New York City sales to contractors employing members of the local, and this scheme was supported by threat of boycott by the contractors' employees. While recognizing that the union might have had an immunity for its contribution to the trade boycott had it acted alone, citing Hutcheson, supra, the Court held immunity was not intended by the Clayton or Norris-LaGuardia Acts in cases in which the union's activity was part of a larger conspiracy to abet contractors and manufacturers to create a monopoly.
manufacturers of electrical equipment. There are three answers to this argument: first, the boycott of out-of-state electrical equipment by the electrical contractors' employees was not in pursuance of any objective relating to pressuring their employers in the matter of their wages, hours, and working conditions; there was no work preservation or other primary objective related to the union employees' relations with their contractor employers. On the contrary, the object of the boycott was to secure benefits for the New York City electrical manufacturers and their employees.
"This is a secondary object because the cessation of business was being used tactically, with an eye to its effect on conditions elsewhere. [Footnote 17]"
"We will not permit any material made by any other union or by any nonunion workers to come into New York City and be put into any building in New York City."
been conducted in New York City by local No. 3 of the IBEW, whereby electricians have refused to install electrical products of manufacturers employing electricians who are members of some labor organization other than local No. 3."
"[s]ince the matters dealt with in this section have, to a large measure, been effectuated through the use of boycotts, and since the conference agreement contains effective provisions directly dealing with boycotts themselves, this provision is omitted from the conference agreement."
handling, transporting, or otherwise dealing in the products of another, or to cease doing business with any other person. Thus, it was made an unfair labor practice for a union to engage in a strike against employer A for the purpose of forcing that employer to cease doing business with employer B. Similarly, it would not be lawful for a union to boycott employer A because employer A uses or otherwise deals in the goods of, or does business with, employer B."
In effect, Congress, in enacting § 8(b)(4)(A) of the Act, returned to the regime of Duplex Printing Press Co. and Bedford Cut Stone Co., supra, and barred as a secondary boycott union activity directed against a neutral employer, including the immediate employer, when, in fact, the activity directed against him was carried on for its effect elsewhere.
that is, union pressures calculated to induce the employees of a secondary employer to withhold their services in order to force their employer to cease dealing with the primary employer."
Id. at 377 U. S. 52-53.
This loophole-closing measure likewise did not expand the type of conduct which § 8(b)(4)(A) condemned. Although the language of § 8(e) is sweeping, it closely tracks that of § 8(b)(4)(A), and, just as the latter and its successor § 8(b)(4)(B) did not reach employees' activity to pressure their employer to preserve for themselves work traditionally done by them, § 8(e) does not prohibit agreements made and maintained for that purpose.
"to protect genuinely neutral employers and their employees, not themselves involved in a labor dispute, against economic coercion designed to give a labor union victory in a dispute with some other employer. [Footnote 25]"
"where the union, in a dispute with one employer, puts pressure upon another employer or his employees, in order to force the second employer or his employees, to stop doing business with the first employer, and 'bend his knee to the union's will.'"
Ibid. An analysis of the substitute bill submitted by Representative Griffin referred to the need to plug the various loopholes in the "secondary boycott" provisions, one of which is the "hot cargo" agreement. [Footnote 30] In Conference Committee, the Landrum-Griffin application to all industry, and not just to common carriers, was adopted.
Labor Board v. Fruit & Vegetable Packers, 377 U. S. 58, 377 U. S. 66. "It is the sponsors that we look to when the meaning of the statutory words is in doubt." Schwegmann Bros. v. Calvert Distillers Corp., 341 U. S. 384, 341 U. S. 394-395. See Mastro Plastics Corp. v. Labor Board, 350 U. S. 270, 350 U. S. 288.
In addition to all else, "[t]he silence of the sponsors of [the] amendments is pregnant with significance. . . ." Labor Board v. Fruit & Vegetable Packers, supra, at 377 U. S. 66. Before we may say that Congress meant to strike from workers' hands the economic weapons traditionally used against their employers' efforts to abolish their jobs, that meaning should plainly appear.
"[I]n this era of automation and onrushing technological change, no problems in the domestic economy are of greater concern than those involving job security and employment stability. Because of the potentially cruel impact upon the lives and fortunes of the working men and women of the Nation, these problems have understandably engaged the solicitous attention of government, of responsible private business, and particularly of organized labor."
has been passed. [Footnote 37] We cannot lightly impute to Congress an intent in § 8(e) to preclude labor-management agreements to ease these effects through collective bargaining on this most vital problem created by advanced technology.
"termination of employment which . . . necessarily results from the contracting out of work performed by members of the established bargaining unit,"
"Industrial experience is not only reflective of the interests of labor and management in the subject matter, but is also indicative of the amenability of such subjects to the collective bargaining process.
Experience illustrates that contracting out in one form or another has been brought, widely and successfully, within the collective bargaining framework. Provisions relating to contracting out exist in numerous collective bargaining agreements, and '[c]ontracting out work is the basis of many grievances, and that type of claim is grist in the mills of the arbitrators.' United Steelworkers v. Warrior & Gulf Nav. Co., 363 U. S. 574, 363 U. S. 584."
See Local 2, Teamsters Union v. Oliver, 358 U. S. 283, 358 U. S. 294. It would therefore be incongruous to interpret 8(e) to invalidate clauses over which the parties may be mandated to bargain and which have been successfully incorporated through collective bargaining in many of this Nation's major labor agreements.
"the right . . . to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. . . ."
Section 13 preserves the right to strike, of which the boycott is a form, except as specifically provided in the Act. In the absence of clear indicia of congressional intent to the contrary, these provisions caution against reading statutory prohibitions as embracing employee activities to pressure their own employers into improving the employees' wages, hours, and working conditions. See Labor Board v. Drivers Local Union, 362 U. S. 274; Labor Board v. International Rice Milling Co., 341 U. S. 665, 341 U. S. 672-673; Labor Board v. Denver Bldg. Trades Council, 341 U. S. 675, 341 U. S. 687; Mastro Plastics Corp. v. Labor Board, supra, at 350 U. S. 284, 350 U. S. 287.
"that the time has come for a reevaluation of the basic content of collective bargaining as contemplated by the federal legislation. But that is for Congress. Congress has demonstrated its capacity to adjust the Nation's labor legislation to what, in its legislative judgment, constitutes the statutory pattern appropriate to the developing state of labor relations in the country. Major revisions of the basic statute were enacted in 1947 and 1959. To be sure, then, Congress might be of opinion that greater stress should be put on . . . eliminating more and more economic weapons from the . . . [Union's] grasp. . . . But Congress' policy has not yet moved to this point. . . ."
Labor Board v. Insurance Agents' International Union, 361 U. S. 477, 361 U. S. 500.
agreement or boycott would, within the intent of Congress, become secondary. There need not be an actual dispute with the boycotted employer, here, the door manufacturer, for the activity to fall within this category, so long as the tactical object of the agreement and its maintenance is that employer, or benefits to other than the boycotting employees or other employees of the primary employer, thus making the agreement or boycott secondary in its aim. [Footnote 39] The touchstone is whether the agreement or its maintenance is addressed to the labor relations of the contracting employer vis-a-vis his own employees. [Footnote 40] This will not always be a simple test to apply. [Footnote 41] But "[h]owever difficult the drawing of lines more nice than obvious, the statute compels the task." Local 761, Electrical Workers v. Labor Board, 366 U. S. 667, 366 U. S. 674.
Trial Examiner, adopted by the Board, was that the objective of the sentence was preservation of work traditionally performed by the jobsite carpenters. This finding is supported by substantial evidence, and therefore the Union's making of the "will not handle" agreement was not a violation of § 8(e).
Similarly, the Union's maintenance of the provision was not a violation of § 8(b)(4)(B). The Union refused to hang prefabricated doors whether or not they bore a union label, and even refused to install prefabricated doors manufactured off the jobsite by members of the Union. This and other substantial evidence supported the finding that the conduct of the Union on the Frouge jobsite related solely to preservation of the traditional tasks of the jobsite carpenters.
The judgment is affirmed in No. 110, and reversed in No. 111.
(e) It shall be an unfair labor practice for any labor organization and any employer to enter into any contract or agreement, express or implied, whereby such employer ceases or refrains or agrees to cease or refrain from handling, using, selling, transporting or otherwise dealing in any of the products of any other employer or to cease doing business with any other person, and any contract or agreement entered into heretofore or hereafter containing such an agreement shall be to such extent unenforceable and void: Provided, That nothing in this subsection (e) shall apply to an agreement between a labor organization and an employer in the construction industry relating to the contracting or subcontracting of work to be done at the site of the construction, alteration, painting, or repair of a building, structure, or other work: Provided further, That for the purposes of this subsection (e) and section 8(b)(4)(B) the terms "any employer," "any person engaged in commerce or an industry affecting commerce," and "any person" when used in relation to the terms "any other producer, processor, or manufacturer," "any other employer,"
or "any other person" shall not include persons in the relation of a jobber, manufacturer, contractor, or subcontractor working on the goods or premises of the jobber or manufacturer or performing parts of an integrated process of production in the apparel and clothing industry: Provided further, That nothing in this Act shall prohibit the enforcement of any agreement which is within the foregoing exception.
* Together with No. 111, National Labor Relations Board v. National Woodwork Manufacturers Association et al., also on certiorari to the same court.
The text of these sections appears in the Appendix.
"No employee shall work on any job on which cabinet work, fixtures, milk-work, sash, doors, trim or other detailed millwork is used unless the same is Union-made and bears the Union Label of the United Brotherhood of Carpenters and Joiners of America. No member of this District Council will handle material coming from a mill where cutting out and fitting has been done for butts, locks, letter plates, or hardware of an description, nor an doors or transoms which have been fitted prior to being furnished on job, including base, chair, rail, picture moulding, which has been previously fitted. This section to exempt partition work furnished in sections."
The National Labor Relations Board determined that the first sentence violated § 8(e), 149 N.L.R.B. 646, 655-656, and the Union did not seek judicial review of that determination.
"right to control doctrine -- that employees can never strike against their own employer about a matter over which he lacks the legal power to grant their demand"
-- is an incorrect rule of law inconsistent with the Court's decision in Labor Board v. Insurance Agents' International Union, 361 U. S. 477, 361 U. S. 497-498.
The statutory language of § 8(e) is far from unambiguous. It prohibits agreements to "cease . . . from handling . . . any of the products of any other employer. . . ." (Emphasis supplied.) Since both the product and its source are mentioned, the provision might be read not to prohibit an agreement relating solely to the nature of the product itself, such as a work preservation agreement, but only to prohibit one arising from an objection to the other employers or a definable group of employers who are the source of the product, for example, their nonunion status.
"Before the true meaning of the statute can be determined, consideration must be given to the problem in society to which the legislature addressed itself, prior legislative consideration of the problem, the legislative history of the statute under litigation, and to the operation and administration of the statute prior to litigation."
See Loewe v.Lawlor, 208 U. S. 274, and 235 U. S. 235 U.S. 522 (Danbury Hatters' Case). The history of this development under the Sherman Act is traced in Duplex Printing Press Co. v. Deering, 254 U. S. 443; Allen Bradley Co. v. Local Union No. 3, 325 U. S. 797, 325 U. S. 800-803. See generally Berman, Labor and the Sherman Act (1930). Collective activity was also being restrained through the doctrine of "malicious combination." See Duplex Printing Press Co. v . Deering, supra, at 254 U. S. 484-485 (Brandeis, J., dissenting); see generally Laidler, Boycotts and the Labor Struggle 189-194 (1914).
See Laidler, op. cit. supra, n 6, at 64; Clark, The Law of the Employment of Labor 289-290 (1911); Oakes, Organized Labor and Industrial Conflicts § 408 (1927); Frankfurter & Greene, The Labor Injunction 43 (1930).
"includes any controversy concerning terms or conditions of employment, or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment, regardless of whether or not the disputants stand in the proximate relation of employer and employee."
See 1 Teller, Labor Disputes and Collective Bargaining § 145 (1940); Barnard & Graham, Labor and the Secondary Boycott, 15 Wash.L.Rev. 137 (1940); Smith, Coercion of Third Parties in Labor Disputes -- The Secondary Boycott, 1 La.L.Rev. 277 (1939); Hellerstein, Secondary Boycotts in Labor Disputes, 47 Yale L.J. 341, 364 (1938).
93 Cong.Rec. 4198, II Legislative History of the Labor Management Relations Act, 1947 (hereafter 1947 Leg.Hist.), 1106.
See, e.g., S.Rep. No. 105, 80th Cong., 1st Sess., 7, 8, 22, 54, in I 1947 Leg.Hist. 413, 414, 428, 460; H.R.Conf.Rep. No. 510, 80th Cong., 1st Sess., 43, in I 1947 Leg.Hist. 547; 93 Cong.Rec. 4131, 4138, 4837-4838, 4843, 4844, 4858, 4859, 4865, 5005, 5011, 5014, 6445-6446, 7537, in II 1947 Leg.Hist. 1055, 1068, 1354-1355, 1364, 1365, 1370-1371, 1372-1373, 1383, 1479, 1491, 1497, 1544, 1654. A statement of Senator Javits, an opponent of the bill, at 93 Cong.Rec. 6296, I 1947 Leg.Hist. 876, that might suggest a broader reading was merely one of the "isolated references . . . [that] appear more as asides in a debate. . . ." Labor Board v. Drivers Local Union, 362 U. S. 274, 362 U. S. 286-287.
See, e.g., 93 Cong.Rec. 3424 (Rep. Hartley), 3432 (Rep. Landis), 3449 (Rep. Buck), A1910-A1911 (Rep. Meade), 1844 (Senator Morse), 3838 (Senator Taft), 5014 (Senator Ball), in I 1947 Leg.Hist. 614, 630, 658, 869, and II 1947 Leg.Hist. 982, 1012, 1497.
See also a similar statement in H.R.Conf.Rep. No. 510, supra. at 43, I 1947 Leg.Hist. 547, in which the House Managers limit the "boycotts," referred to at 65, I 1947 Leg.Hist. 569.
Cf. Mastro Plastics Corp. v. Labor Board, 350 U. S. 270, 350 U. S. 285; Labor Board v. Lion Oil Co., 352 U. S. 282, 352 U. S. 288.
"The gravamen of a secondary boycott is that its sanctions bear not upon the employer who alone is a party to the dispute, but upon some third party who has no concern in it. Its aim is to compel him to stop business with the employer in the hope that this will induce the employer to give in to his employees' demands."
For the scholarly acceptance of this primary-secondary dichotomy in the scope of § 8(b)(4)(A), see Koretz, Federal Regulation of Secondary Strikes and Boycotts -- A New Chapter, 37 Cornell L.Q. 235 (1952); Tower, A Perspective on Secondary Boycotts, 2 Lab.L.J. 727 (1951); Cushman, Secondary Boycotts and the Taft-Hartley Law, 6 Syracuse L.Rev. 109 (1954); Lesnick, The Gravamen of the Secondary Boycott, 62 Col.L.Rev. 1363 (1962); Cox, The Landrum-Griffin Amendments to the National Labor Relations Act, 44 Minn.L.Rev. 257, 271 (1959); Aaron, The Labor-Management Reporting and Disclosure Act of 1959, 73 Harv.L.Rev. 1086, 1112 (1960). For the NLRB's vacillations during the period, see Lesnick, supra, 62 Col.L.Rev. at 1366-1392.
Lesnick, Job Security and Secondary Boycotts: The Reach of NLRA §§ 8(b)(4) and 8(e), 113 U.Pa.L.Rev. 1000, 1017-1018 (1965).
It is suggested that the boycott in Allen Bradley is indistinguishable from the activity today held protected in Houston Insulation Contractors Association v. Labor Board, post, p. 386 U. S. 664. The crucial distinction is that, in Houston Insulation Contractors Association, the boycott was being carried out to affect the labor policies of the employer of the boycotting employees, the primary employer, and not, as in Allen Bradley, for its effect elsewhere.
"A secondary boycott, as all of us know, is a concerted attempt on the part of a strong union to compel employers to deal with them, even though the employees of that employer desire to he represented by other unions, or not to be represented at all. . . . [An] example is the New York Electrical Workers Union, the IBEW."
"one of the worst situations which has arisen, such as that in New York where a local of the IBEW is using the secondary boycott to maintain a tight little monopoly for its own employees, its own members, and a few employers in that area."
We likewise do not have before us in these cases, and express no view upon, the antitrust limitations, if any, upon union employer work preservation or work extension agreements. See United Mine Workers v. Pennington, 381 U. S. 657, 381 U. S. 662-665.
"to make it clear that the changes in section 8(b)(4) do not overrule or qualify the present rules of law permitting picketing at the site of a primary labor dispute."
H.R. Conf.Rep. No. 1147, 86th Cong., 1st Sess., 38 (1959), in I Legislative History of the Labor-Management Reporting and Disclosure Act of 1959 (hereafter 1959 Leg.Hist.), 942. See Local 761, Electrical Workers v. Labor Board, 366 U. S. 667, 366 U. S. 681.
See 105 Cong.Rec. 1729-1730, II 1959 Leg.Hist. 993-994 (remarks of the Secretary of Labor, inserted into the record by Senator Dirksen); 105 Cong.Rec. 3951-3952, 6290, 6667, II 1959 Leg.Hist. 1007, 1052, 1193-1194 (Senator McClellan); 105 Cong.Rec. 6285, II 1959 Leg.Hist. 1046 (Senator Ervin); 105 Cong.Rec. 6300-6301, II 1959 Leg.Hist. 1059 (Senator Mundt); 105 Cong.Rec. 6390, 6428, 17674, II 1959 Leg.Hist. 1061, 1079, 1386 (Senator Goldwater); 105 Cong.Rec. 6670, 17907-17908, II 1959 Leg.Hist. 1197, 1440-1441 (Senator Curtis); 105 Cong.Rec. 1426, 15674, II 1959 Leg.Hist. 1462, 1616 (Rep. Bosch); 105 Cong.Rec. 3926-3927, 3928, II 1959 Leg.Hist. 1469-1470, 1471 (Rep. Lafore); 105 Cong.Rec. 14343-14344, II 1959 Leg.Hist. 1518-1519 (Rep. Landrum); 105 Cong.Rec. 14347-14348, II 1959 Leg.Hist. 1522-1523 (analysis of Landrum-Griffin bill inserted into the record by Rep. Griffin); 105 Cong.Rec. 15532, II 1959 Leg.Hist. 1568 (Rep. Griffin); 105 Cong.Rec. 15195, 15544-15545, II 1959 Leg.Hist. 1543, 1580-1581 (Rep. Rhodes); 105 Cong.Rec. 15529, II 1959 Leg.Hist. 1565 (Rep. Shelley); 105 Cong.Rec. 15551-15552, II 1959 Leg.Hist. 1587-1588 (report prepared by Rep. Elliott); 105 Cong.Rec. 15688, II 1959 Leg.Hist. 1630 (Rep. Riehlman); 105 Cong.Rec. 15691, II 1959 Leg.Hist. 1633 (Rep. Arends).
Throughout the committee reports and debates on § 8(e), it was referred to as a measure designed to close a loophole in § 8(b)(4)(A) of the 1947 Act. See, e.g., S.Rep. No. 187, 86th Cong., 1st Sess., 78-79, I 1959 Leg.Hist. 474-475 (1959) (Minority Views); H.R.Rep. No. 741, 86th Cong., 1st Sess., 20-21, I 1959 Leg.Hist. 778-779.
See Cox, supra, n 16, at 272.
"an agreement between a union and a unionized employer that his employees shall not be required to work on or handle 'hot goods' or 'hot cargo' being manufactured or transferred by another employer with whom the union has a labor dispute or whom the union considers and labels as being unfair to organized labor."
"Hot-cargo clauses. -- It has become common to find clauses in union contracts whereby the employer agrees not to handle what the union chooses to call 'hot goods,' 'unfair materials,' and 'blacklisted products.' Such clauses have become standard in contracts entered into by the Teamsters Union. Here, employer A, who has a dispute with a union or whose employees are being solicited for union membership, is in real trouble. He may have customers waiting for his product or he may have suppliers eager to send him raw material, but both his delivery of products and supply of raw material cannot move from or to his place of business because the carriers in either instance have 'hot cargo' clauses in their contracts with the Teamsters Union. His alternative is . . . [to] go out of business or yield to the union's demand, which often is a demand for a compulsory membership contract with a union which his employees do not want."
See statements of these Senators, cited n 21, supra. Both Senators Dirksen and McClellan introduced unsuccessful "hot cargo" legislation in substantially the same terms as enacted in § 8(e), 105 Cong.Rec. 3948, 6411-6412, II 1959 Leg.Hist. 1007 (Senator McClellan), 1071 (Senator Dirksen).
"The testimony before the select committee again and again illustrated the method by which certain unions, particularly the Teamsters, utilized the inadequacies of the present secondary boycott provisions to force employers to do business with only those people approved by union officials."
H.R. 8342, § 705(a)(2) (Elliott hill), in I 1959 Leg.Hist. 755-757.
H.R.Rep. No. 741, 86th Cong., 1st Sess., 21, I 1959 Leg.Hist. 779.
"prohibit resort to . . . [secondary] activity to force [secondary] employers to sign contracts or agreements not to handle or transport goods coming from a source characterized by a union as 'unfair.'"
See, e.g., 105 Cong.Rec. 6668, 17327, II 1959 Leg.Hist. 1195, 1377 (Senator Kennedy).
See Essex County and Vicinity Dist. Council of Carpenters v. Labor Board, 332 F.2d 636 (C.A.3d Cir.1964); Comment, The Impact of the Taft-Hartley Act on the Building and Construction Industry, 60 Yale L.J. 673, 684-689 (1951).
See Mastro Plastics Corp. v. Labor Board, 350 U. S. 270, 350 U. S. 285-286, and cases there cited.
105 Cong.Rec. 17884, II 1959 Leg.Hist. 1428 (Senator Morse); 105 Cong.Rec. l 6590, II 1959 Leg.Hist. 1708 (analysis of "Secondary Boycotts and Hot Cargo Contracts" by Senator Kennedy and Rep. Thompson). It is somewhat unclear whether statements by Senator McNamara and Reps. Thompson and Kearns respecting plumbing prefabrication clauses for construction projects concerned agreements with a primary or a secondary objective. 105 Cong.Rec.19785, 19809, 20004-20005, II 1959 Leg.Hist. 1815, 1816, 1861. As described by Senator McNamara, the clause in question permitted fabrication so long as it was accomplished by members of a local union of the pipefitters. 105 Cong.Rec.19785, II 1959 Leg.Hist. 1815. Moreover, the statements purported only to indicate their interpretation of the construction industry proviso. In any event, these statements could represent only the personal views of these legislators, since the statements were inserted in the Congressional Record after passage of the Act.
"When the labor reform bill is out of the way -- labor and management could, as they eventually must, sit down together and work toward a solution of our most serious problem -- automation -- which has already affected the employment picture through more productivity and less employment. If allowed to go unchecked, automation will eventually create many thousands of displaced persons, and unless this problem is properly worked out, it portends a serious threat to our national economy."
105 Cong.Rec. 13133, II 1959 Leg.Hist. 1511.
"Many achievements in attempting to overcome the difficulties created by radical technological change can and should be accomplished through collective bargaining and joint labor-management efforts. Much has been achieved through such efforts in recent years. Even greater concentration by labor and management on these problems is needed in the period ahead."
"evaluate the impact of, and benefits and problems created by automation, technological progress, and other changes in the structure of production and demand on the use of the Nation's human resources; establish techniques and methods for detecting in advance the potential impact of such developments; develop solutions to these problems, and publish findings pertaining thereto."
The Secretary has, pursuant to this direction, published numerous bulletins. See, e.g., Technological Trends in Major American Industries, Dept. of Labor Bulletin No. 1474.
As a general proposition, such circumstances might include the remoteness of the threat of displacement by the banned product or services, the history of labor relations between the union and the employers who would be boycotted, and the economic personality of the industry. See Comment, 62 Mich.L.Rev. 1176, 1185 et seq. (1964).
See Lesnick, Job Security and Secondary Boycotts: The Reach of NLRA §§ 8(b)(4) and 8(e), 113 U.Pa.L.Rev. 1000, 1018, 1040 (1965).
See Orange Belt District Council of Painters v. Labor Board, 117 U.S.App.D.C. 233, 328 F.2d 534 (1964); Retail Clerks Union Local 770 v. Labor Board, 111 U.S.App.D.C. 246, 296 F.2d 368 (1961); Todd Shipyards Corp. v. Industrial Union of Marine and Shipbldg. Workers, 344 F.2d 107 (C.A.2d Cir.1965); Labor Board v. Local 82, Int'l Union of Operating Engineers, 326 F.2d 218 (C.A.3d Cir.1964); Labor Board v. Joint Council of Teamsters, 338 F.2d 23, 28 (C.A. 9th Cir.1964); Milk Drivers & Dairy Employees Union (Minnesota Milk Co.), 133 N.L.R.B. 1314, enforced, 314 F.2d 761 (C.A. 8th Cir.1963); Ohio Valley Carpenters District Council (Cardinal Industries), 136 N.L.R.B. 977 (1962).
See, e.g., Retail Clerks Union Local 770 v. Labor Board, 111 U.S.App.D.C. 246, 296 F.2d 368 (1961); Baltimore Lithographers (Alco-Gravure), 160 N.L.R.B. No. 90, 63 L.R.R.M. 1126 (1966); Joliet Contractors Assn. v. Labor Board, 202 F.2d 606 (C.A. 7th Cir.1953), cert. denied, 346 U.S. 824; Labor Board v. Local 11, United Bro. of Carpenters, 242 F.2d 932 (C.A. 6th Cir.1957). See generally Lesnick, supra, n 39; Comment, 62 Mich.L.Rev. 1176 (1964).
In joining the Court's opinion, I am constrained to add these few words by way of underscoring the salient factors which, in my judgment, make for the decision that has been reached in these difficult cases.
1. The facts as found by the Board and the Court of Appeals show that the contractual restrictive product rule in question, and the boycott in support of its enforcement, had as their sole objective the protection of union members from a diminution of work flowing from changes in technology. Union members traditionally had performed the task of fitting doors on the jobsite, and there is no evidence of any motive for this contract provision and its companion boycott other than the preservation of that work. This, then, is not a case of a union seeking to restrict by contract or boycott an employer with respect to the products he uses, for the purpose of acquiring for its members work that had not previously been theirs.
2. The only question thus to be decided, and which is decided, is whether Congress meant, in enacting §§ 8(b)(4)(B) and 8(e) of the National Labor Relations Act, to prevent this kind of labor-management arrangement designed to forestall possible adverse effects upon workers arising from changing technology.
relations and upon other aspects of the economy, both sides of today's division in the Court agree that we must be especially careful to eschew a resolution of the issue according to our own economic ideas and to find one in what Congress has done. It is further agreed that, in pursuing the search for the true intent of Congress, we should not stop with the language of the statute itself, but must look beneath its surface to the legislative history.
4. It is recognized by court and counsel on both sides that the legislative history of § 8(b)(4)(B), with which 8(e), it is agreed, is to be taken pari passu, contains only the most tangential references to problems connected with changing technology. Also, a circumspect reading of the legislative record evincing Congress' belief that the statutory provisions in question prohibited agreements and conduct of the kind involved in Allen Bradley Co. v. Local Union No. 3, 325 U. S. 797, will not support a confident assertion that Congress also had in mind the sort of union-management activity before us here. And although it is arguable that Congress, in the temper of the times, would have readily accepted a proposal to outlaw work preservation agreements and boycotts, even, as here, in their most limited sense, such a surmise can hardly serve as a basis for the construction of an existing statute.
legislative record, a purpose to outlaw the kind of collective bargaining and conduct involved in these cases. Especially at a time when Congress is continuing to explore methods for meeting the economic problems increasingly arising in this technological age from scientific advances, this Court should not take such a step until Congress has made unmistakably clear that it wishes wholly to exclude collective bargaining as one avenue of approach to solutions in this elusive aspect of our economy.
MR. JUSTICE STEWART, whom MR. JUSTICE BLACK, MR. JUSTICE DOUGLAS, and MR. JUSTICE CLARK join, dissenting.
The Union's boycott of the pre-fitted doors clearly falls within the express terms of the federal labor law, which makes such conduct unlawful when "an object thereof" is "forcing or requiring any person to cease using . . . the products of any other . . . manufacturer. . . ." [Footnote 2/1] And the collective bargaining provision that authorizes such a boycott likewise stands condemned by the law's prohibition of any agreement whereby an employer "agrees to cease or refrain from handling . . . any of the products of any other employer. . . ." [Footnote 2/2] The Court undertakes a protracted review of legislative and decisional history in an effort to show that the clear words of the statute should be disregarded in these cases. But the fact is that the relevant history fully confirms that Congress meant what it said, and I therefore dissent.
the statutory language. See Local 761, Electrical Workers v. Labor Board, 366 U. S. 667. But the Court errs in concluding that the product boycott conducted by the Union in these cases was protected primary activity. As the Court points out, a typical form of secondary boycott is the visitation of sanctions on Employer A, with whom the union has no dispute, in order to force him to cease doing business with Employer B, with whom the union does have a dispute. But this is not the only form of secondary boycott that § 8(b)(4) was intended to reach. The Court overlooks the fact that a product boycott for work preservation purposes has consistently been regarded by the courts, and by the Congress that passed the Taft-Hartley Act, as a proscribed "secondary boycott."
v. Lake Valley Co., 311 U. S. 91, 311 U. S. 100-103; United States v. Hutcheson, 312 U. S. 219, 312 U. S. 229-231, 312 U. S. 235-237. But, in enacting the Taft-Hartley Act in 1947, 61 Stat. 136, Congress clearly provided that, quite apart from the antitrust laws or the Norris-LaGuardia Act, a product boycott of the kind involved in these cases was to be an unfair labor practice.
"had there been no union-contractor-manufacturer combination, the union's actions here . . . would not have been violations of the Sherman Act."
"Our holding means that the same labor union activities may or may not be in violation of the Sherman Act, dependent upon whether the union acts alone or in combination with business groups. That, it is argued, brings about a wholly undesirable result -- one which leaves labor unions free to engage in conduct which restrains trade. But the desirability of such an exemption of labor unions is a question for the determination of Congress."
325 U.S. at 325 U. S. 810.
"Under paragraph (A), strikes or boycotts, or attempts to induce or encourage such action, are made violations of the act if the purpose is to force an employer or other person to cease using, selling, handling, transporting, or otherwise dealing in the products of another, or to cease doing business with any other person. Thus, it would not be lawful for a union to engage in a strike against employer A for the purpose of forcing that employer to cease doing business with employer B; nor would it be lawful for a union to boycott employer A because employer A uses or otherwise deals in the goods of or does business with employer B (with whom the union has a dispute). This paragraph also makes it an unfair labor practice for a union to engage in the type of secondary boycott that has been conducted in New York City by local No. 3 of the IBEW, whereby electricians have refused to install electrical products of manufacturers employing electricians who are members of some labor organization other than local No. 3. (See . . . Allen Bradley Co. v. Local Union No. 3, I.B.E.W., 325 U. S. 797.) [Footnote 2/9]"
"the Clayton Act so as to withdraw the exemption of labor organizations under the antitrust laws when such organizations engaged in combinations or conspiracies . . . [to] impose restrictions or conditions upon the purchase, sale, or use of any product, material, machine, or equipment . . ."
"[s]ince the matters dealt with in this section have, to a large measure, been effectuated through the use of boycotts, and since the conference agreement contains effective provisions directly dealing with boycotts themselves, this provision is omitted from the conference agreement. [Footnote 2/11]"
"[T]he validity of a restrictive agreement challenged under 8(e) must be considered in terms of whether that agreement, if enforced by prohibited means, would result in an unfair labor practice under Section 8(b)(4)(B). Clearly, there is little point and no logic in declaring an agreement lawful under 8(e) but in finding its enforcement condemned under 8(b)(4)(B). . . ."
section 8(e) agreements relating to supplies or other products or materials shipped or otherwise transported to and delivered on the site of the construction. [Footnote 2/18]"
The Court indeed recognizes that the § 8(e) construction industry proviso does not immunize product boycotts from the reach of that section. By a curious inversion of logic, the Court purports to deduce from this fact the proposition that product boycotts are not covered by § 8(e). But if § 8(e) and its legislative history are approached without preconceptions, it is evident that Congress intended to bar the use of any provisions in a collective agreement to authorize the product boycott involved in the cases before us.
"The Company's decision to contract out the maintenance work did not alter the Company's basic operation. The maintenance work still had to be performed in the plant . . . ; the Company merely replaced existing employees with those of an independent contractor to do the same work under similar conditions of employment. Therefore, to require the employer to bargain about the matter would not significantly abridge his freedom to manage the business.
An employer's decision as to the products he wishes to buy presents entirely different issues. That decision has traditionally been regarded as one within management's discretion, and Fibreboard does not indicate that it is a mandatory subject of collective bargaining, much less a permissible basis for a product boycott made illegal by federal labor law."
National Labor Relations Act, as amended, § 8(b)(4)(B), 73 Stat. 543, 29 U.S.C. § 158(b)(4)(B).
National Labor Relations Act, as amended, § 8(e), 73 Stat. 543, 29 U.S.C. § 158(e).
"Section 8(b)(4), relating to illegal strikes and boycotts, was amended in conference by striking out the words 'for the purpose of' and inserting the clause 'where an object thereof is.' Obviously, the intent of the conferees was to close any loophole which would prevent the Board from being blocked in giving relief against such illegal activities simply because one of the purposes of such strikes might have been lawful."
93 Cong.Rec. 6859, II Legislative History of the Labor Management Relations Act, 1947 (hereinafter 1947 Leg.Hist.), 1623.
"To say that the object of the [union] was to induce or compel Scott Company to assign the work of installing the disputed supports to the [union's] members . . . , and not to force Scott Company to cease using Eaton's product or to cease doing business with Eaton, is . . . to pretend that the latter object is not a necessary consequence of the former object. The two objects are inseparable. It is immaterial that one objective might be legal if the other is illegal."
See United States v. Painters' District Council, 44 F.2d 58.
The present cases, in which the boycotting employees were protecting their own work opportunities, cannot be distinguished from Allen Bradley on the ground that there, the boycotting employees were protecting the work opportunities of other members of their union. For today, in Houston Insulation Contractors Assn. v. Labor Board, post, p. 386 U. S. 664, the Court applies its holding in the present cases to validate a boycott by employees to protect the work opportunities of other workers who were not even members of their union.
See United Mine Workers v. Pennington, 381 U. S. 657, 381 U. S. 672; Meat Cutters v. Jewel Tea Co., 381 U. S. 676, 381 U. S. 697, 381 U. S. 735.
In the 1959 amendments to the National Labor Relations Act, § 8(b)(4)(A) of the original Act was, with changes not here relevant, retitled § 8(b)(4)(B). See n. 14, infra.
S.Rep. No. 105, 80th Cong., 1st Sess., 22, I 1947 Leg.Hist. 428.
"one can readily understand that such procedure is unconscionable, and that it results in high costs to those engaged in the erection of office buildings, homes, and stores. . . ."
"would not touch at all one of the worst situations which has arisen, such as that in New York, where a local of the IBEW is using the secondary boycott to maintain a tight little monopoly for its own employees, its own members, and a few employers. . . ."
"The principle announced by the Senator from Florida would make that stand lawful, as it is lawful today. Of course, we propose to change the law in that respect."
"not the kind of boycott which is contrary to the public interest, that other kind results from a misguided labor union's efforts to keep certain goods out of a market because the labor union fears the effect of new inventions or new methods. But, while dealing with this . . . abuse, the bill also has the effect of depriving labor of a right of self-preservation which has never been questioned before."
93 Cong.Rec. 6296, I 1947 Leg.Hist. 876.
H.R.Conf.Rep. No. 510, 80th Cong., 1st Sess., 65, I 1947 Leg.Hist. 569.
"It has been set forth that there are good secondary boycotts and bad secondary boycotts. Our committee heard evidence for weeks. and never succeeded in having anyone tell us any difference between different kinds of secondary boycotts. So we have so broadened the provision dealing with secondary boycotts as to make them an unfair labor practice."
93 Cong.Rec. 4198, II 1947 Leg.Hist. 1106.
"ignores valid distinctions between justified and unjustified boycotts based on the objective of the union in carrying on such a boycott. . . . It indiscriminately bans all such boycotts, whether justified or not."
S.Rep. No. 105, Pt. 2, 80th Cong., 1st Sess., 20, I 1947 Leg.Hist. 482.
United Brotherhood of Carpenters, 81 N.L.R.B. 802, 806, enforced, 184 F.2d 60.
In addition to recasting the original § 8(b)(4)(A) as § 8(b)(4)(B), the 1959 amendments produced §§ 8(b)(4)(i) and (ii) expanding the modes of union pressure covered by § 8(b)(4). See Labor Board v. Servette, Inc., 377 U. S. 46, 377 U. S. 51-54. Among the changes was the deletion of the Act's original requirement that union pressure on individuals for the objectives proscribed must be pressure commanding "concerted" activity on the part of those individuals. This was the legislative response to Labor Board v. International Rice Milling Co., 341 U. S. 665, where the Court had indicated that jobsite picketing directed at truck drivers employed by a customer of the struck employer was not an unfair labor practice because there was no attempt to persuade the truck drivers to engage in "concerted" activity. In addition to dropping the "concerted" activity requirement, and thus bringing secondary conduct directed at an individual employee within § 8(b)(4), Congress also added the proviso that nothing in the amended section "shall be construed to make unlawful, where not otherwise unlawful, any primary strike or primary picketing." The purpose of this proviso was simply to make clear that Congress did not intend to disturb another ground of the Court's decision in Rice Milling -- that jobsite picketing of the employees of others was protected primary activity. See Local 761, Electrical Workers v. Labor Board, 366 U. S. 667, 366 U. S. 681.
Thus, the proviso was not intended to modify the distinction between proscribed secondary boycotts and permitted primary strikes and picketing embodied in the original Act. The conference report on the 1959 amendments specifically states that "the changes in section 8(b)(4) do not overrule or qualify the present rules of law permitting picketing at the site of a primary labor dispute." H.R.Conf.Rep. No. 1147, 86th Cong., 1st Sess., 38, I Legislative History of the Labor-Management Reporting and Disclosure Act of 1959 (hereinafter 1959 Leg.Hist.), 942. Congress thus intended no change in the Taft-Hartley Act's proscription of product boycotts, which court decisions had consistently recognized as "secondary" and illegal.
What has been said establishes that product boycotts are normally illegal regardless of the employer's contractual relations with the supplier of the boycotted goods, or with other persons. Thus, it appears that the concept of "control" which the Board applied in these cases lacks relevance to the correct determination of whether a § 8(b)(4)(B) violation has occurred. Cf. n 3 to the Court's opinion, ante at 386 U. S. 616.
Local 1976, United Brotherhood of Carpenter v. Labor Board, 357 U. S. 93.
The Court and the Board point to H.R.Rep. No. 741, 86th Cong., 1st Sess., 21, I 1959 Leg.Hist. 7, which noted the similarity in language between § 8(h)(4) and a provision in a Senate hill somewhat similar to what became § 8(e), and characterized the latter as preserving "the established distinction between primary activities and secondary boycotts." But the "established distinction" embodied in the Taft-Hartley Act and recognized by the courts classified product boycotts as secondary, and illegal.
The floor debates show that both proponents and opponents of the Landrum-Griffin bill acknowledged that it would prohibit product boycotts, including those with work preservation purposes. For example, see 105 Cong.Rec. 17884, II 1959 Leg.Hist. 148 (remarks of Senator Morse); 105 Cong.Rec. 15545, II 1959 Leg.Hist. 1581 (remarks of Representative Rhodes).
H.R.Conf.Rep. No. 1147, 86th Cong., 1st Sess., 39, I 1959 Leg.Hist. 943.

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