Document: 380 U.S. 300 85 S.Ct. 955 13 L.Ed.2d 855 The AMERICAN SHIP BUILDING COMPANY, Petitioner,v.NATIONAL LABOR RELATIONS BOARD. No. 255. Argued Jan. 21, 1965. Decided March 29, William S. Tyson, Washington, D.C., for petitioner. Norton J. Come, respondent. Mr. Justice STEWART delivered the opinion of Court. 1 American Ship Building Company seeks review a decision United States Court Appeals District Columbia enforcing an order National Labor Relations Board which found that company had committed unfair labor practice under §§ 8(a)(1) and 8(a)(3) Act.1 question presented is expressly reserved in v. Truck Drivers Local Union, etc., 353 87, 93, 77 643, 646, 676; namely, whether employer commits these sections Act when he temporarily lays off or 'locks out' his employees during dispute to bring economic pressure support bargaining position. To resolve asserted conflict among circuits2 upon this important federal law we granted certiorari, 379 814, 69, 27. 2 operates four shipyards on Great Lakes—at Chicago, at Buffalo, Toledo Lorain, Ohio. primarily engaged repairing ships, highly seasonal business concentrated winter months freezing Lakes renders shipping impossible. What limited obtained season frequently such speed execution utmost importance minimize immobilization ships. 3 Since 1952 has collective with group eight unions. Prior negotiations here question, contracted unions five occasions, each agreement having been preceded by strike. particular chapter history are concerned opened shortly before May 1, 1961, notified their intention seek modification current contract, due expire August 1. 4 At initial meeting June 6, took position its competitive situation would not allow increased compensation. countered demands fringe benefits some unspecified wage increase. Several meetings were held early July focussed benefit questions without any substantial progress. last meeting, parties resolved call Federal Mediation Conciliation Service, set next 19. first unveiled demand 20-cent-an-hour increase proposed six-month extension contract pending continued negotiations. rejected because it have led expiration peak season. 5 Further narrowed six issues, all involving differences. On 31, eve contract's expiration, made proposal; another, revived proposal extension, alternative existing no-strike clause, be extended indefinitely terms new retroactive 1.3 After rejection extensions, employer's was submitted unions' membership; 8 announced overwhelmingly rejected. following day, another refused submit no counteroffer separated setting date further meetings, leaving discretion conciliator. 6 Thus 9, after negotiations, differences central issues dividing them specific plans attempts them—a trial examiner impasse. Throughout displayed anxiety as strike plans, fearing soon ship entered Chicago yard delay into leverage. union negotiator consistently insisted reach calling strike; however, did concede incomplete control over workers—a fact borne out occurrence wildcat February 1961. Because danger unauthorized consistent deliberate use strikes prior remained apprehensive possibility work stoppage. 7 In light failure lack available work, decided lay certain workers. 11 received notice read: 'Because unresolved since you laid until notice.' completely shut down but two yard. A large force retained Lorain complete major piece there Buffalo gradually miscellaneous tasks completed. Negotiations resumed layoffs two-year agreed October recalled day. Upon claims filed unions, General Counsel issued complaint charging violations 8(a)(1), (a)(3), (a) (5).4 although 19, closing work. Despite similarly slack seasons past, 17 years nucleus crew do maintenance remain ready take might come in. went find reasonably point. Although given assurances strike, past thought justify continuing apprehension fail make good assurances. It primary purpose locking avert peculiarly harmful consequences imposed him customers if called either while later fully occupied. concluded employer: 9 'was economically justified motivated laying did, judgment partially colored break impasse existed immaterial peculiar special circumstances case. Respondent, actions, therefore, violate (3), (5) Act.' 10 three-to-two majority examiner's conclusion could anticipate Finding sufficient dispel apprehension, able only one underlying layoff: desire secure prompt settlement favorable terms. finding occurred reached. Nor remotely suggest company's based hostility avoid obligations Act. 'by curtailing operations South consequent layoff employees, coerced exercise rights violation Section Act, discriminated against within meaning Act.'5 142 N.L.R.B., 1364—1365. difference between thus narrow turning differing assessments gave reason Both assumed, established pattern analysis,6 workers solely bringing bear more terms, out. 'The that, absent circumstances, may threaten lock aid Such conduct presumptively infringes collective-bargaining lockout, layoff, amounts discrimination 8(a)(3). addition, subjects Union represents unwarranted illegal creates atmosphere free opportunity negotiation contemplated 8(a)(5) does exist.' Quaker State Oil Refining Corp., 121 N.L.R.B. 334, 337. 12 has, exempted classes lockouts from proscription. 'Accordingly, permissible safeguard * loss where reasonable ground believing threatened imminent.' Ibid. Developing distinction rulings, approved designed prevent seizure plant sitdown Link-Belt Co., 26 227; forestall repetitive disruptions integrated operation 'quickie' strikes, International Shoe 93 907; spoilage materials result sudden stoppage, Duluth Bottling Assn., 48 1335; automobiles brought repair, Betts Cadillac Olds, Inc., 96 268. distinct class cases sanctioned lockout multiemployer unit response whipsaw members. Linen Supply 109 447, rev'd, sub. nom. etc. Board, Cir., 231 F.2d 110, 676.7 analyzing status (3) distinguished other forms temporary separation employment. No deny enterprise reasons renovation profitable unrelated situation. Similarly, put side basis evidence used means injure organization evade duty bargain colectively. Hopwood Retinning 922; Scott Paper Box 81 535. position, This issue us, decide.8 14 establish § must shown interfered with, restrained, right protected Board's premised view interferes guaranteed 7: collectively view, 'punishes' presentation adherence representatives so coerces collectively. note allegation service designs inimical process bargaining. There hostile employees' banding gether discipline doing so. therefore inaccurate say destroy frustrate can said intended resist demands. We cannot see way inconsistent 15 Moreover, indication, general matter case, will necessarily capacity effective responsible representation. involved vigorously represented 1952, nothing show ability impaired lockout. those acts demonstrably destructive need inquire motivation, example, permanently discharged unionized staff replaced known possessed violent antiunion animus. Cf. Erie Resistor 373 221, 83 1139, 308. well dissuade adhering they initially adopted bargaining, entail 'right' insist one's disadvantage. Proper analysis problem simple compensation like suffice render unlawful. See Brown, 278, 980. 16 taken complementary ss Act9 allows pre-empt leave 'nothing against.' Insofar once locked out, deprived already down, argument wholly specious, stoppage object occurred.10 true recognition deprives exclusive timing duration stoppages calculated influence statute imply 'carries it' exclusively determine stoppages. commonly understood cease work—nothing more. doubt union's power enhanced also should occur, Act's provisions elastic, content-free shaped whatever manner think best conforms proper balance power. Thus, legitimate Accordingly, conclude findings 8(a)(1). 18 prohibits regard tenure conditions employment discourage membership. Under words both resulting discouragement long section normally turn motivation. 980; Radio Officers' 347 17, 43, 74 323, 337, 98 L.Ed. 455; Jones & Laughlin Steel 301 46, 57 615, 628, 893. discharges leader who broken shop rules, posed acted purely disinterested defense sought damage employee organization. likely discharge naturally tend membership cases, leadership suspicion intention. But construed unscathed wide range actions serve interests significant fashion, even though act See, e.g., Mackay Telegraph 304 333, 347, 58 904, 911, 82 1381. construction essential protection accorded manage enterprise. Textile Workers' Darlington Mfg. 263, 994. 19 practices inherently prejudicial devoid justification intent animus required. carries inference unlawful compelling justifiable disbelieve protestations innocent purpose. supra, 44—45, 337—338; supra. many rule, leaders discharged, listen too plea simply being enforced. situations, described 'far delicate task weighing concerted activity interest operating *.' 229, 1145. 20 fall category arising truncate inquiry As case shows, carry necessary implication otherwise discriminate members such. effect modify appear natural tendency severely serving interest. fact, difficult understand what perceived Board. claim members, member; nor alleged conditioned rehiring resignation union. suffered disadvantage insistence unacceptable employer, steps conflict, existence arguable someone feel himself discouraged label 8(a) permanent replacement strikers (National supra), unilateral imposition Tex-Tan, 318 472, 479—482), refusal concession terminate strike—all impose none 21 8(a)(3), then, proscribed Indeed, itself always recognized 'operative' 'economic' purposes erred ruling remove ambit requires slightest actuated affect outcome involved. recognize 'union membership' refers than payment dues measures participation activities 39—40, 335. However, gives demands, sort attends disputes. Therefore, proven merely about shown. 22 conclusions draw consonant little relevance drawn legislative history. original version predecessor declared '(t)o attempt, interference, influence, restraint, favor, coercion, means, impair 4.'11 Prominent criticism leveled bill Senate Committee hearings charge accord even-handed treatment employers prohibited protecting strike.12 face criticism, added provision prohibiting interference activities13 deleted reference lockout.14 plausible language mollify saw inequitable denial resort give rise fears per se. event clear bill, reported finally enacted, contained prohibition 23 neither specifically various refer references interpreted legitimacy device applying positions. 29 U.S.C. 158(d)(4) (1958 ed.) unless requisite procedures complied with; 173(c) directs Service voluntary resolution disputes lockouts; 176, 178 authorize whereby President institute board lockouts. correlative 'strike' 'lockout' contemplates fashion. define scope employer. That, context present ultimately (3). 24 approach legality competence weigh competing accommodate according expert judgment. availability weapon substantially tip scales favor defeat Congressional placing par adversary table.'15 buttress struck points weapons counterbalance replace gone or, stockpiling subcontracting, maintain commercial brunt unilaterally working desires expired. Given weapons, argued, adequately equipped tools self-help. 25 course entitled greatest deference dealing problems. areas evaluation unquestionably conclusive determining application (5). construes functions expansively authority national policy balancing management. While redress imbalance management, accomplish conferring affirmative enumerated restrictions employers. organize union, collectively, protect self-organization disruptive interferences Having countervailance employers' power, system newly coequal adversaries disputes, peaceful avail. Sections assess relative party assessment party's essence, denied conviction 'too much power.' doing, stretched far beyond recently closely related equally applicable here: 27 '(W)hen moves area functioning arbiter seeking gain acceptance introduce standard properly 'balanced' unjustifiable, 'abusive' expressed our belief entrance substantive aspects extent Congress countenanced.' Insurance Agents' 361 477, 497—498, 80 419, 431. 28 unable fair relied practice. role assumed fundamentally structure function upon. owed tribunal allowed slip judicial inertia results assumption agency decisions Congress. hold violates when, reached, shuts sole Reversed. 30 WHITE, concurring result. 31 today holds improving never broad NLRA hence resistance invariably exempt proscriptions my Brother GOLDBERG applies legal standards reconciled defining pausing ascertain factual premises supported evidence. I Court, establishing overlooks uncontradicted facts record accepted indicate me 32 anticipates inform relationship property thereby discouraging business, then whom I, examiner, may, impeached asserting erroneous imminent. 33 Appeals, presumably accept except honest occur fact. time very yards, open During summer yards perform emergency repair jobs Building's regular customers. Absent job, accommodation retention remaining open, unprofitable. learned unrest through newspaper accounts managers, felt constrained tell longstanding manager 'the owner boat dock rocks head chance.' Work refused, however. few, any, requests repairs summer, number shipowners reluctant vessels job left three weeks closing. closing, 'men hand, anticipated, refusing send in.' Only on. noted unaware negotiating strategy possible strategy. carefully assessing testimony most considerations inducements overshadowed anything improper considered primary, particularly factors arose fault Respondent anteceded layoff.' 34 yard, answer say, does, offensive Whether fear not, remains customers, consequently employees. statutory rights, reasonableness exigencies ordinarily subject review. Pepsi-Cola 145 785 (1964); Associated Contractors America, 105 767 (1953); cf. Fibreboard Products Corp. 203, 398, 233; NLRB, including occasions truthfully conditions, activities, H. Zimmerli, 133 1217 (1961), creation reliance subterfuge Ripley 138 1452 (1962); Savoy Laundry, 137 306 New England Web, 135 1019 (1962). find. now shutdown ever Here reasons, rationale, how violated furnish apparent quite different prohibit Hence, explain, less support, reached failed 'disclose order' 'give indication exercised empowered it.' Phelps Dodge 313 177, 197, 61 845, 854, 1271. lockout; judge 35 assimilates restrikes balance; dismisses actual assertion 'examiner (the) Ante, p. 304. puzzling, precisely contrary, findings. maintained expectation performance customer will. uncertainty undertaking jeopardize relations, unlike years. barred ignore claim, reverse order, reaching decide 36 rule state views. 'did undertake imposible specifying precise unmistakable incident constitute practice,' 'left prohibitory infinite combinations events charged violative terms.' Republic Aviation 324 793, 798, 65 982, 985, 89 1372. indicated 96, 648, 676, determined conflicting interests.' 37 balanced here—the value impact solicitude, 234, 1148, 308—and obtaining victory outweigh damaging deprive livelihood compel submission discourages right. And sharply reducing effectiveness denying contest. rejects reasoning 'demonstrably motivation.' 309. motive activities. encourages rather displaces. 38 tour de denies truncated definition nowhere unprecedented. Until determinative rights. 1372; 308; Burnup Sims, 171, hire replacements continue operations, fire believe guilty gross misconduct doubted Sims. Nonetheless upheld determination award super-seniority suspected practices. Of course, pursuit ends, nonetheless 'conduct speak itself. (i)t unavoidable foresaw intended.' Resistor, U.S., 228, S.Ct., indefinite period, jobs, Court's assuredly sanctions, 274, 1001, n. 20, activity, 7, hardly encourage affiliation 39 If says today, locked-out help, 980, perhaps replacements, Maintaining least achieving victory, 1381, advances hiring 'to demands.' assume resisting grievances no-lockout clause. purposes, deemed '(I)nquiry motivation' truncated. 312. 'Proper unlawful.' errs failing consideration regard. 40 'conflicting interests' relations admit solution myopic focus things rigid literal interpretation replacements. just clearly others not. Aviation, reconcile For saying ignores explicit refrain (concerted) activities.' explained test 'inherently justification,' ante, 311, motivation independently choosing several motivations respective heeding instance. 41 'delicate task, reflected part manner.' Its immune attack explication fit it, adequate, acceptable reading industrial realities. articulated rational connection made. 'This deprecate, vindicate (see 853, 1271), administrative process, 'propel(ling) court domain aside agency.' 332 196, 67 1577, 91 1995.' Burlington Lines States, 371 156, 169, 239, 246, 207. ask reasoned foremost review, especially accommodated. Compare Securities Exchange Comm. Chenery 80, 63 454, 87 626, 194, 1575, 1995. reject certainly restrike 42 GOLDBERG, THE CHIEF JUSTICE joins, 43 concur 49 Stat. 453, amended, 158(a)(1) ed.), join reversing Appeals. because, plain revealed record, crystal justifiable. recited where, choice injury termination agreement. statutes. 268; Packard Bell Electronics 130 1122; 44 'honestly believed place immediately, vessel docked, delayed closer vulnerable,' 1382, Act,' 1383. threatened. 'there real threat,' justified. 1364. ultimate disagreed 'had grounds strike.' (Emphasis added.) 1363. single sentence sustained holding point concluding, detailed analysis, 'that respondent support.' 331 839, 840. admitted unreasonable variance actualities relations,' Steelworkers, 357 357, 364, 78 1268, 1272, 1383, account effectuating policy. 45 deal disputed testimonial controversies. undisputed, demonstrates strategically selected cause maximum advantage totally reasonable. 46 ships York, Toledo, Ohio, Illinois. seasonal, frozen Speed short tie-up ship's re-entry spring produces severe impact. serious Customers justifiably wary entrusting unresolved. situations vital season; busy expired 47 From began, negotiated times involved, experienced exactly negotiation. 1953, 1955, 1956 lasted each, 1958 weeks. 1955 showdown caught $8,000,000 lost busiest height season, Buffalo. Shortly 1961 wished spokesman prevented wages benefits. opposite asked pension met numerous throughout July. progressed, receded offered improved benefits; minds subsequently, approaching, contract. advantageous them; 1962, risk putting knowing expire. informed voted 'overwhelmingly necessary.' offer benefits, proposals vote extend period enable taken. agree choosing.1 day-to-day revised 'overwhelmingly' package issues. negotiators offer, vote, counteroffer. definite parties. Future mediator. 50 Faced time, own whenever filled Toledo. Notices stated, contracts 51 feared ripe. He that: 52 '(t)he Unions' was: 53 'Keep keep nonproductive men payroll occurred: shipowner striking, forced knees effecting satisfactory didn't (b) bargain, months, execute November, December, January, February, way, reopened, sure docks, agreement.' 54 Accordingly committed. followed settled doctrine 'lockouts unusual operational problems hazards (is) 55 overturned holding, what, unsupportable conclusion—that unreasonable. rested Unions every effort convey called, Respondent's (which provision) indefinitely, 56 strike' statements chief testified day 'I stated understanding seemed every—during World War II information received, sincere hope negotiate agreement—go strife, personally strong dislike sincerely desired agreement, concurred thoughts, disliked hope, also, amicably.'2 same sentiment These statements, expect agent hopeful augury binding scarcely vitiate Further, impasse, membership, final place. assistant managers 374 Boilermakers 'gave completed'3 likewise offset threat consequences. officials locals separate few yards. joined bound clause impugning faith agents, surely notwithstanding assurance, 59 relies pointed caused perfect stratagem. Had agreed, achieved objectives necessity striking. By token increases Surely proposals, accede 60 Finally, conclusion. An mean traditional theory giving brief notice.4 arrangement hands. sum supply scintilla of, let alone substantial, unreasonable, but, rather, appears irrational. 236, 1149, 62 undisputed affirmed preclude us reviewing determination. Public 356 421, 796, 886. applied viewed whole. Universal Camera 340 474, 71 456, 95 456. Lines, Inc. 168, 245, 207; Interstate Commerce J—T Transport 368 81, 204, 211, 147. respect; precludes estimate worth witnesses matters both.' 490, 466. report supporting impartial, observed lived conclusion.' 496, 469. summary affirmance grossly misapplied Camera. involves entire record. making weight decides, apply supported, reveal, irrational, ground. My unnecessary types compatible complex illustrate. Workers 994; 'revealed unfolding variant situations' 'an evolutionary response, quick, definitive formula comprehensive answer.' 761, Intern. Electrical, 366 667, 674, 1285, 1290, 592; 362—363, 64 differ considerably other. presents confronted locks considerable good-faith compromise week expired, faced suffer harm. Other situations. still progress, bargained resubmit vote. Utah Plumbing Heating 126 973. account, statutes, length, character, relation seems exhausted, limits latter type deciding exhausted. examples multiplied, logic limitation lead process,' 'a formula,' answer. chary sweeping generalizations area. When warfare. generally Agents', choice, respect unrestricted. paid laws,' 235, statutes5 Court.6 prompted plainly Act,7 similar operate limit Somerset 111 681; Stremel, 141 317; Classics, 193 613. varieties reflect complexities 66 diversity statement rules governing (in area) 676. states conduct, actually bias,8 (1) bargaining,' 309, 'so departs letter spirit 647; Babcock Wilcox 351 105, 76 679, 100 975; demonstrate correct action outweighs 'no-solicitation' invalid solicitation periods pleased, showing interest, necessity, abolition. 68 misreads 455, stating 'are required.' 311. Officers restrict extreme encompassed test. Rather, common-law man presumed intend foreseeable regardless motive. resulted 'weighing (of) (from) ends served conduct.' 69 tests thing: employees—a 648. held, striking (such a) often responsibility, review.' 70 This, courts abdicate whether, supra; rubber-stamp principles irrational Applying presented, fashioned 'safeguard policies relations. would, rule. for, desirability, readily demarks impermissible so, announce conclusions, inadvisably unnecessarily done here. confine reasonable, approve, 1362, enforced, 118 U.S.App.D.C. 78, 839 (1964). 158(a): 'It shall employer— '(1) interfere restrain, coerce 157 title; '(3) term condition organization:' 157: 'Employees self-organization, form, join, assist organizations, choosing, engage mutual protection, affected requiring Dalton Brick Tile 886 (C.A.5th Cir. 1962); Morand Bros. Beverage Co. 190 576 (C.A.7th 1951), 204 529 (1953), 270 (C.A.3d 1959); Ass'n 294 165 (C.A.10th 1961). dissenting afforded enforcible 1368. Chica go well, entering executed passage quoted below text 454 pp. 317-318, infra), direct question. 886, 894—895 1962). E.g., 973; 334. 409; Davis Furniture 1016. embraced contrary earlier Ninth Circuit sub Leonard 205 355 (1953). Contrary views intimate follow help. 13, 151, 163 ed.): 'Nothing subchapter, provided herein, impede diminish limitations qualifications right.' employer-induced ancillary measures, picketing, precluded employing measures. Legislative History 1935, (hereafter Leg.Hist.). provided: organizations otherwise, organizing protection.' Leg.Hist. 406, 545, 570, 946. 2926, 3(2): (f)or form designate bargaining.' 1087. 3(1): Brief 17. 4, infra. follows: 'Q. Did crying afford yet ten twelve ensued cent hour business? 'A. Yes.' local assurance. Williston, Contracts 38, (3d ed. 1957); Pacific Coast Association Pulp Manufacturers, 990, 993. secondary boycott organizational picketing restrictions. 141, 158(b)(4) 73 542, 544, (7) ed., Supp. V). Automobile Workers, Wisconsin Unemployment 336 516, 651; Fansteel Metallurgical 240, 627. 646; 268—269, 994, 998—999. 452, 158(a)(3) provides organization.' discriminatory

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