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Matched Legal Cases: ['§ 101', '§ 1337', '§ 101', '§ 101', '§ 401', '§ 101', '§ 411', '§ 101', '§ 411', '§ 529', '§ 101', '§ 151', '§ 8', '§ 158', '§ 7', '§ 157', '§ 7', '§ 8', '§ 8']

Breininger v. SMW Int'l - 493 U.S. 67 (1989) :: Justia US Supreme Court Center
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Breininger v. SMW Int'l - 493 U.S. 67 (1989)
Case	U.S. Supreme CourtBreininger v. SMW Int'l, 493 U.S. 67 (1989)Breininger v. Sheet Metal Workers InternationalAssociation Local Union No. 6No. 88-124Argued Oct. 10, 1989Decided Dec. 5, 1989493 U.S. 67CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR
Pursuant to a multi-employer collective bargaining agreement, respondent union operates a hiring hall through which it refers both members and nonmembers for work at the request of employers. The hiring hall is "nonexclusive," in that workers are free to seek employment through other means, and employers are not restricted to hiring persons recommended by the union. Petitioner, a member of the union, filed suit alleging that respondent: (1) violated §§ 101(a)(5) and 609 of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA) -- which forbid a union to "fine, suspend, expe[l] or otherwise discipline" a member for exercising LMRDA-secured rights -- by refusing to refer him through the hiring hall as a result of his political opposition to respondent's leadership; and (2) breached its duty of fair representation under the National Labor Relations Act (NLRA) by discriminating against him in respect to such referrals. The District Court dismissed the suit on the ground that discrimination in hiring hall referrals constitutes an unfair labor practice subject to the exclusive jurisdiction of the National Labor Relations Board (NLRB or Board). The Court of Appeals affirmed, ruling that fair representation claims must be brought before the Board, and that petitioner had failed to state a claim under the LMRDA.
1. The District Court did not lack jurisdiction over petitioner's fair representation suit. Pp. 493 U. S. 73-90.
(a) The NLRB does not have exclusive jurisdiction over a union member's claim that his union breached its duty of fair representation by discriminating against him in job referrals made by the union hiring hall. The fact that the alleged violation of respondent's duty of fair representation might also be an unfair labor practice, over which state and federal courts lack jurisdiction under San Diego Building Trades Council v. Garmon, 359 U. S. 236, 359 U. S. 245, did not deprive the District Court of jurisdiction over petitioner's fair representation claim, since Vaca v. Sipes, 386 U. S. 171, held that Garmon's preemption rule does not extend to suits alleging such claims. No exception to the Vaca rule can be created for fair representation complaints arising out of the operation of hiring Page 493 U. S. 68 halls on the ground that the NLRB has developed substantial expertise in dealing with hiring hall policies. Such a rule would remove an unacceptably large number of fair representation claims from federal courts, since the NLRB has developed an unfair labor practice jurisprudence in many areas traditionally encompassed by the duty of fair representation. Decisions of this Court containing language recognizing the need for a single expert federal agency to adjudicate difficult hiring hall problems are distinguished, since those cases focused on whether exclusive hiring halls had encouraged union membership impermissibly as forbidden by the NLRA, rather than on whether unions have administered properly out-of-work lists as required by their duty of fair representation. Also distinguished are the Court's decisions holding that state court hiring hall suits are preempted by NLRB jurisdiction, since state law claims frequently involve tort, contract, and other substantive areas of law that have developed independently of federal labor law, whereas the duty of fair representation has "judicially evolved" as part of federal labor law and is unlikely generally to create conflicts with the operative realities of federal labor policy. The Court of Appeals' holding that an employee cannot prevail in a fair representation suit against his union if he fails to allege that his employer breached the collective bargaining agreement constitutes a misstatement of existing law. Although Vaca recognized the desirability of having the same entity adjudicate a joint fair representation/breach of contract action, it in no way implied that a fair representation action requires a concomitant claim against the employer. Independent federal court jurisdiction exists over fair representation claims because the duty of fair representation is implied from the NLRA's grant of exclusive representation status to unions, such that the claims "aris[e] under a[n] Act of Congress regulating commerce" within the meaning of 28 U.S.C. § 1337(a), the pertinent jurisdictional provision. Moreover, a fair representation claim is a separate cause of action from any possible suit against the employer. Thus, this Court declines to adopt a rule that exclusive jurisdiction lies in the NLRB over any fair representation suit whose hypothetical accompanying claim against the employer might be raised before the Board. Pp. 493 U. S. 73-84.
(b) Petitioner has not failed to allege a fair representation claim. There is no merit to respondent's contention that it did not breach its duty of fair representation because that duty should be defined in terms of what is an unfair labor practice, and because it committed no such practice, since the NLRA forbids only union discrimination based on union membership or lack thereof, and not on any other form of maladministration of a job-referral system. Equating breaches of the duty of fair representation with unfair labor practices would make the two redundant, despite their different purposes, and would eliminate some Page 493 U. S. 69 of the prime virtues of the fair representation duty -- flexibility and adaptability. That duty is not intended to mirror the contours of unfair labor practices, but arises independently in order to prevent arbitrary conduct against individuals deprived by the NLRA of traditional forms of redress against unions. Also without merit is respondent's contention that it should be relieved of its duty of fair representation because, in the hiring hall context, it is acting essentially as an employer in matching up job requests with available personnel, and therefore does not "represent" the employees as a bargaining agent. That the particular function of job referral resembles a task that an employer might perform is of no consequence, since the union is administering a provision of the collective bargaining agreement, and is therefore subject to the duty of fair representation. Humphrey v. Moore, 375 U. S. 335, 375 U. S. 342. In fact, if a union assumes the employer's role in a hiring hall, its responsibility to exercise its power fairly increases, rather than decreases, since the individual employee then stands alone against a single entity, the joint union/employer. Pp. 493 U. S. 84-90.
2. Respondent's alleged refusal to refer petitioner to employment through the union hiring hall as a result of his political opposition to the union's leadership does not give rise to a claim under §§ 101(a)(5) and 609 of the LMRDA. By using the phrase "otherwise discipline," those sections demonstrate a congressional intent to denote only punishment authorized by the union as a collective entity to enforce its rules, and not to include all acts that deterred the exercise of LMRDA-protected rights. The construction that the term refers only to actions undertaken under color of the union's right to control the member's conduct in order to protect the interests of the union or its membership is buttressed by the legislative history and by the statute's structure, which specifically enumerates types of discipline -- fine, expulsion, and suspension -- that imply some sort of established disciplinary process, rather than ad hoc retaliation by individual union officers, and which, in § 101(a)(5), includes procedural safeguards designed to protect against improper disciplinary action -- "written specific charges," "a reasonable time to prepare a defense," and a "full and fair hearing" -- that would apply to the type of procedure encountered in Boilermakers v. Hardeman, 401 U. S. 233, 402 U. S. 236-237, whereby a union imposes "discipline" by virtue of its own authority over its members, and not to instances of unofficial, sub rosa discrimination. Here, the opprobrium of the union as an entity was not visited on petitioner, since he has alleged only that he was the victim of personal vendettas of union officers, and not that he was punished by any tribunal or subjected to any proceedings convened by respondent.
849 F.2d 997, (CA 6 1988), affirmed in part, reversed in part, and remanded. Page 493 U. S. 70
BRENNAN, J., delivered the opinion for a unanimous Court with respect to Parts I and II, and the opinion of the Court with respect to Part III, in which REHNQUIST, C.J., and WHITE, MARSHALL, BLACKMUN, O'CONNOR, and KENNEDY, JJ., joined. STEVENS, J., filed an opinion concurring in part and dissenting in part, in which SCALIA, J., joined, post, p. 493 U. S. 95.
This case presents two questions under the federal labor laws: first, whether the National Labor Relations Board (NLRB or Board) has exclusive jurisdiction over a union member's claims that his union both breached its duty of fair representation and violated the Labor-Management Reporting and Disclosure Act of 1959, (LMRDA), 73 Stat. 519, 29 U.S.C. § 401 et seq. (1982 ed.), by discriminating against him in job referrals made by the union hiring hall; and second, whether the union's alleged refusal to refer him to employment through the hiring hall as a result of his political opposition to the union's leadership gives rise to a claim under §§ 101(a)(5) and 609 of the LMRDA, 29 U.S.C. §§ 411(a)(5), 529 (1982 ed.). The Court of Appeals for the Sixth Circuit held that petitioner's suit fell within the exclusive jurisdiction of the Board, and that petitioner had failed to state a claim Page 493 U. S. 71 under the LMRDA. 849 F.2d 997 (1988) (per curiam). We reverse the Court of Appeals' decision as to jurisdiction, but we affirm its holding that petitioner did not state a claim under LMRDA §§ 101(a)(5) and 609.
Petitioner Lynn L. Breininger was at all relevant times a member of respondent, Local Union No. 6 of the Sheet Metal Workers International Association. Pursuant to a multi-employer collective bargaining agreement, respondent operates a hiring hall through which it refers both members and nonmembers of the union for construction work. Respondent maintains an out-of-work list of individuals who wish to be referred to jobs. When an employer contacts respondent for workers, he may request certain persons by name. If he does not, the union begins at the top of the list and attempts to telephone in order each worker listed until it has satisfied the employer's request. The hiring hall is not the exclusive source of employment for sheet metal workers; they are free to seek employment through other mechanisms, and employers are not restricted to hiring only those persons recommended by the union. [Footnote 1] Respondent also maintains a job referral list under the Specialty Agreement, a separate collective bargaining agreement negotiated to cover work on siding, decking, and metal buildings.
Petitioner alleges that respondent refused to honor specific employer requests for his services and passed him over in making job referrals. He also contends that respondent refused to process his internal union grievances regarding Page 493 U. S. 72 these matters. Petitioner's first amended complaint contained two counts. First, he asserted a violation of the duty of fair representation, contending that respondent, "in its representation of [petitioner], has acted arbitrarily, discriminatorily, and/or in bad faith and/or without reason or cause." First Amended Complaint � 13. Second, petitioner alleged that his union, "in making job referrals, . . . has favored a faction of members . . . who have been known to support . . . the present business manager," as "part of widespread, improper discipline for political opposition in violation of 29 U.S.C. [§ 411(a)(5)] and 29 U.S.C. § 529." Id., � 17. Respondent, in other words, "acting by and through its present business manager . . . and its present business agent [has] otherwise disciplined'" petitioner within the meaning of LMRDA §§ 101(a)(5) and 609. Id., � 16.
The District Court held that it lacked jurisdiction to entertain petitioner's suit because "discrimination in hiring hall referrals constitutes an unfair labor practice," and "[t]he NLRB has exclusive jurisdiction over discrimination in hiring hall referrals." No. C 83-1126 (ND Ohio, Feb. 20, 1987), p. 6, reprinted in App. to Pet. for Cert. A9. The District Court determined that adjudicating petitioner's claims "would involve interfe[r]ing with the NLRB's exclusive jurisdiction." Id. at 7, App. to Pet. for Cert. A10.
The Court of Appeals affirmed in a brief per curiam opinion. With respect to the fair representation claim, the court noted that "[c]ircuit courts have consistently held that . . . fair representation claims must be brought before the Board" and that
"if the employee fails to affirmatively allege that his employer breached the collective bargaining agreement, which [petitioner] failed to do in the case at bar, he cannot prevail."
849 F.2d at 999 (emphasis in original). In regard to the LMRDA count, the Court of Appeals found that
"[d]iscrimination in the referral system, because it does not breach the employee's union membership rights, does not constitute 'discipline' within the meaning of LMRDA"
and Page 493 U. S. 73 that
"[h]iring hall referrals are not a function of union membership, since referrals are available to nonmembers as well as members."
Ibid. We granted certiorari. 489 U.S. 1009 (1989).
We have long recognized that a labor organization has a statutory duty of fair representation under the National Labor Relations Act (NLRA), 49 Stat. 449, as amended, 29 U.S.C. § 151 et seq.,
Vaca v. Sipes, 386 U. S. 171, 386 U. S. 177 (1967); see also Steele v. Louisville & Nashnille R. Co., 323 U. S. 192, 323 U. S. 203 (1944). In Miranda Fuel Co., Inc., 140 N.L.R.B. 181 (1962), enf. denied, 326 F.2d 172 (CA2 1963), the NLRB determined that violations of the duty of fair representation might also be unfair labor practices under § 8(b) of the NLRA, as amended, 29 U.S.C. § 158(b) (1982 ed.). [Footnote 2] The Board held that the right of employees under § 7 of the NLRA, as amended, 29 U.S.C. § 157, to form, join, or assist labor organizations, or to refrain from such activities,
"is a statutory limitation on statutory bargaining representatives, and . . . that Section 8(b)(1)(A) of the Act Page 493 U. S. 74 accordingly prohibits labor organizations, when acting in a statutory representative capacity, from taking action against any employee upon considerations or classifications which are irrelevant, invidious, or unfair."
140 N.L.R.B. at 185. In addition, the Board reasoned that
"a statutory bargaining representative and an employer also respectively violate Section 8(b)(2) and 8(a)(3) when, for arbitrary or irrelevant reasons or upon the basis of an unfair classification, the union attempts to cause or does cause an employer to derogate the employment status of an employee."
Id. at 186. While petitioner alleged a breach of the duty of fair representation, his claim might relate to conduct that under Miranda Fuel also constitutes an unfair labor practice. And, as a general matter, neither state nor federal courts possess jurisdiction over claims based on activity that is "arguably" subject to §§ 7 or 8 of the NLRA. See San Diego Building Trades Council v. Garmon, 359 U. S. 236, 359 U. S. 245 (1959).
Nevertheless, the District Court was not deprived of jurisdiction. In Vaca v. Sipes, supra, we held that Garmon's preemption rule does not extend to suits alleging a breach of the duty of fair representation. Our decision in Vaca was premised on several factors. First, we noted that courts developed and elaborated the duty of fair representation before the Board even acquired statutory jurisdiction over union activities. Indeed, fair representation claims often involve matters "not normally within the Board's.unfair labor practice jurisdiction," 386 U.S. at 386 U. S. 181, which is typically aimed at "effectuating the policies of the federal labor laws, not [redressing] the wrong done the individual employee." Id. at 386 U. S. 182, n. 8. We therefore doubted whether "the Board brings substantially greater expertise to bear on these problems than do the courts." Id. at 386 U. S. 181. Another consideration in Vaca for finding the fair representation claim judicially cognizable was the NLRB General Counsel's unreviewable discretion to refuse to institute unfair labor practice proceedings.
"[T]he General Counsel will refuse to bring complaints on behalf Page 493 U. S. 75 of injured employees when the injury complained of is 'insubstantial.'"
Id. at 386 U. S. 183, n. 8. The right of the individual employee to be made whole is "[o]f paramount importance," Bowen v. USPS, 459 U. S. 212, 459 U. S. 222 (1983), and
"[t]he existence of even a small group of cases in which the Board would be unwilling or unable to remedy a union's breach of duty would frustrate the basic purposes underlying the duty of fair representation doctrine."
Vaca, supra, 386 U.S. at 386 U. S. 182-183. Consequently, we were unwilling to assume that Congress intended to deny employees their traditional fair representation remedies when it enacted § 8(b) as part of the Labor Management Relations Act (LMRA). As Justice WHITE described Vaca v. Sipes last Term in Karahalios v. Federal Employees, 489 U. S. 527, 489 U. S. 535 (1989):
"As we understood our inquiry, it was whether Congress, in enacting § 8(b) in 1947, had intended to oust the courts of their role enforcing the duty of fair representation implied under the NLRA. We held that the 'tardy assumption' of jurisdiction by the NLRB was insufficient reason to abandon our prior cases, such as Syres [v. Oil Workers, 350 U.S. 892 (1955)]."
That a breach of the duty of fair representation might also be an unfair labor practice is thus not enough to deprive a federal court of jurisdiction over the fair representation claim. See Communications Workers v. Beck, 487 U. S. 735, 487 U. S. 743 (1988).
We decline to create an exception to the Vaca rule for fair representation complaints arising out of the operation of union hiring halls. Although the Board has had numerous opportunities to apply the NLRA to hiring hall policies, [Footnote 3] we Page 493 U. S. 76 reject the notion that the NLRB ought to possess exclusive jurisdiction over fair representation complaints in the hiring hall context because it has had experience with hiring halls in the past. [Footnote 4] As an initial matter, we have never suggested that the Vaca rule contains exceptions based on the subject matter of the fair representation claim presented, the relative expertise of the NLRB in the particular area of labor law involved, or any other factor. We are unwilling to begin the process of carving out exceptions now, especially since we Page 493 U. S. 77 see no limiting principle to such an approach. Most fair representation cases require great sensitivity to the tradeoffs between the interests of the bargaining unit as a whole and the rights of individuals. [Footnote 5] Furthermore, we have never indicated that NLRB "experience" or "expertise" deprives a court of jurisdiction over a fair representation claim. The Board has developed an unfair labor practice jurisprudence in many areas traditionally encompassed by the duty of fair representation. The Board, for example, repeatedly has applied the Miranda Fuel doctrine in cases involving racial discrimination. See International Brotherhood of Painters, Local 1066 (W.J. Siebenoller, Jr., Paint Co.), 205 N.L.R.B. 651, 652 (1973); Houston Maritime Assn., Inc. (Longshoremen Local 1351), 168 N.L.R.B. 615, 616-617 (1967), enf. denied, 426 F.2d 584 (CA5 1970); Cargo Handlers, Inc. (Longshoremen Local 1191), 159 N.L.R.B. 321, 322-327 (1966); United Rubber Workers, Local No. 12 (Business League of Gadsden), 150 N.L.R.B. 312, 314-315 (1964), enf'd, 368 F.2d 12 (CA5 1966), cert. denied, 389 U.S. 837 (1967); Automobile Workers, Local 453 (Maremont Corp.), 149 N.L.R.B. 482, 483-484 (1964); Longshoremen, Local 1367 (Galveston Maritime Assn., Inc.), 148 N.L.R.B. 897, 897-900 (1964), enf'd, 368 F.2d 1010 (CA5 1966), cert. denied, 389 U.S. 837 (1967); Independent Metal Workers, Local No. 1 (Hughes Tool Co.), 147 N.L.R.B. 1573, 1574 (1964); see also Handy Andy, Inc., 228 N.L.R.B. 447, 455-456 (1977). In addition, the Board has found gender discrimination by unions to be an unfair labor practice. See Wolf Trap Foundation for the Performing Arts, 287 N.L.R.B. No. 103, p. 2 (Jan. 13, 1988), 127 LRRM 1129, 1130 (1988); Olympic Steamship Co., 233 N.L. R.B. 1178, 1189 (1977); Glass Bottle Blowers Assn., Page 493 U. S. 78 Local 106 (Owens-lllinois, Inc.), 210 N.L.R.B. 943, 943-944 (1974), enf'd, 520 F.2d 693 (CA6 1975); Pacific Maritime Assn. (Longshoremen and Warehousemen, Local 52), 209 N.L.R.B. 519, 519-520 (1974) (Member Jenkins, concurring). In short,
"[a] cursory review of Board volumes following Miranda Fuel discloses numerous cases in which the Board has found the duty of fair representation breached where the union's conduct was motivated by an employee's lack of union membership, strifes resulting from intra-union politics, and racial or gender considerations."
United States Postal Service, 272 N.L.R.B. 93, 104 (1984).