Document: 455 U.S. 562 102 S.Ct. 1226 71 L.Ed.2d 419 UNITED MINE WORKERS OF AMERICA HEALTH AND RETIREMENT FUNDS, et al., Petitioners,v.Gracie ROBINSON and Juanita Hager, etc. No. 81-61. Argued Jan. 13, 1982. Decided March 8, Syllabus A 1974 collective-bargaining agreement between the United Mine Workers of America Bituminous Coal Operators' Association increased health benefits, payable out a trust fund financed by contributions from operators, for widows coal miners who died prior to effective date were receiving pensions when they died, but did not increase such benefits still working at time death even though eligible pensions. Respondents, in 1967 1971, respectively, their deaths, brought class action Federal District Court against trustees fund, alleging that requirement miner be pension his order make widow had no rational relationship purposes therefore was illegal under § 302 Labor Management Relations Act. The denied relief. Appeals reversed, holding 302(c)(5), which requires jointly administered trusts maintained "for sole exclusive benefit employees . families dependents," means eligibility rules fixed must meet reasonableness standard, this case unable produce an acceptable explanation discrimination pensioners pension-eligible miners. Held : Section 302(c)(5) does authorize federal courts review provisions agreement, as question, allocating among potential beneficiaries employee fund. Pp. 570-576. (a) 302(c)(5)'s language embodies requirement. Its plain meaning is simply employer funds accrue dependents, exclusion all others. 570. (b) This reading amply supported legislative history, indicates meant protect risk contributed employers might diverted other union or leaders' private benefit. 570-572. (c) Such interpretation also requirements prescribing conditions satisfied exempt criminal sanction. P. 572. (d) Absent conflict with law, here breached fiduciary duties administering question accordance agreement. 573-574. (e) When neither process nor its end product violates any command Congress, court has authority modify substantive terms contract. 574-576. 205 U.S.App.D.C. 330, 640 F.2d 416, reversed. E. Calvin Golumbic, Washington, D. C., petitioners. Larry Franklin Sword, Somerset, Ky., respondents. Justice STEVENS delivered opinion Court. 1 involves two classes December 6, 1974—those whose husbands those although Association, Inc., former made latter class. States Columbia Circuit held arbitrary violated Act 1947 (LMRA).1 416 (1981). We granted certiorari decide whether authorizes 454 814, 89, 70 82. 2 * description origin may explain why considered it arbitrary. 1950 operators established provide pension, health, certain dependents. That defined operators' obligation contribute delegated define amount fund.2 In adopted resolutions governing widows. Under first, retired entitled $2,000 over 2-year period, $5,000 5-year period.3 second resolution authorized hospital medical-care unremarried deceased while widows' first resolution.4 effect these greater than benefits. 3 1974, because concerns about compliance minimum funding standards recently enacted Employee Retirement Income Security (ERISA), 88 Stat. 829, amended, 29 U.S.C. 1001 seq. (1976 ed. Supp.IV), actuarial soundness agreed restructure industry's program. They requirements, well level contributions, should specified decided replace single four separate funds, provided others, "1950 Benefit Trust" "1974 Trust," Trust, issue case, extended lifetime coverage before agreement.5 4 During negotiations, originally demanded either years five old plan coverage. Both uncertainty cost concerned operators. Relatively early negotiations nevertheless accepted demand related would die after became effective, objected requested already estimated consisted 25,000 50,000 widows, whereas union's estimate approximately 40,000. Of total, 10% believed been death, pensions, thus final stages strike begun, package proposal excluded smaller group perhaps 4,000 5,000 Besides making possible conclude otherwise acceptable, complex avoid prolonged strike, received separately identifiable quid pro quo rejection portion demands. II 5 Respondents are respectively. Their age 55, employed industry 20 years, spent most careers employ contributing employers. deaths. plan, respondents years. additional Had applied eligible, now 6 On own behalf representatives similarly situated dependents miners, Columbia.6 alleged actually he survivors LMRA. prayed declared null void ordered pay them retrospectively prospectively. 7 After certifying respondents' class,7 indicating plaintiffs prima facie showing arbitrariness, scheduled hearing give petitioners opportunity prove At documents prepared during collective bargaining heard testimony participants negotiations. Based on evidence, found "the seek subject explicit, informed intense bargaining." App. Pet. Cert. 25a. rejected argument capricious bound adhere agreement." Ibid. concluded: 8 "Public policy dictates limited role reviewing collectively bargained agreements. familiar history anguished relations parties only underscores delicacy balance set each Plaintiffs' relief, if indeed due, cannot come courts." 9 divided panel Relying [the contributing] employer, rule denying significant explained satisfaction, particularly others worked lesser period U.S.App.D.C., 335, F.2d, 421. Specifically, "not enough particular enabled dispute." Id., 338, 424. Recognizing legitimacy concern "financial integrity secured methods dividing nonbeneficiaries lines reasonably calculated further fund's purposes." 337-338, 423-424. 10 Judge Robb, dissent, reasoning added observation active larger pensioners, needs have since continued work III 11 dependents" standard. statutory hardly Indeed, Court's consistent 302(c)(5). 12 Just last Term, reiterated 'sole purpose' ensure 'are legitimate used .' " NLRB v. Amax Co., 453 322, 331, 101 2789, 2795, 69 672 (quoting 93 Cong.Rec. 4678 (1947), reprinted Legislative History Act, 1947, p. 1305 (Leg.Hist.LMRA)). See Arroyo States, 359 419, 425-426, 79 864, 868, 915.8 Accord, Walsh Schlecht, 429 401, 410-411, 97 679, 686, 50 641; Lewis Benedict Corp., 361 459, 474, 80 489, 497, 442 (Frankfurter, J., dissenting). history. See,e.g., 4877 Leg.Hist.LMRA, 1312;9 Cong.Rec., 4752-4753, 1321-1322.10 section faithless leaders. Proponents entirely leadership serve "war chests" support programs political factions, become vehicles through "racketeers" bribes extorted money 13 Our purpose "sole benefit" reinforced exception statute broadly prohibits direct indirect payments unions officials. Each specific sanction nondiversion purpose. dependents; exclusively retirement, disability, unemployment benefits; basis paying written agreement; management labor.11 All fortify basic employees. None places restriction allocation persons protected 14 attempt mpt ground text Rather, relied upon cases levels. "that Trustees 'full respect questions eligibility' court's ascertaining Trustees' broad discretion abused adoption standards." Pete Welfare & Fund 1950, 171 1, 9, 517 1275, 1283 (1975) (en banc) (footnote omitted). Noting "[t]he institutional arrangements creating specifying devoted cast expressly form," stated Trustees, like fiduciaries, judicial correction proper acted arbitrarily capriciously towards one whom obligations run." Kosty Lewis, 115 343, 346, 319 744, 747 (1963), cert. denied, 375 964, 84 482, 414. Those cases, however, Appeals' case.12 petitioner given "full authority" determine levels, By created obligated enforce determinations unless modification required comply applicable law.13 common law alter obligation. U.S., 336-337, S.Ct., 2797-2798; Restatement (Second) Trusts 164 (1959). Cf. 1104(a)(1)(D) ed., Supp.IV). then, Trust 15 plainly impose requirement, do offer alternative sustain holding. There general schedule various withstand undefined standard reasonableness. less true discriminatory treatment members unit; we previously recognized suffer agreements need "affirmatively represent [them] take into account interests bona fide economic decisions represent." Chemical Alkali Pittsburgh Plate Glass 404 157, 181, n. 20, 92 383, 398, 30 341.14 Moreover, finite allocated beneficiaries, inevitably financial considerations sometimes will justification condition discriminates different applicants As long violate policy, same provision 16 plans detailed comprehensive ERISA. laws prohibit grounds race, color, religion, sex, national origin;15 veterans;16 regulate industries;17 preserve our competitive economy.18 Obviously, substantively National 151 seq.19 process, fairly unit.20 But contract.21 17 record discloses violation law. judgment 18 It so ordered. provides relevant part: "The [forbidding transfers employees] shall (5) thing value paid representative, (or employees, families, similar payments, dependents): Provided, (A) paying, principal income both, medical care, retirement compensation injuries illness resulting occupational activity insurance foregoing, life insurance, disability sickness accident insurance; (B) equally represented administration together neutral agree .; (C) intended providing annuities therein annuities. ." 61 186(c) Wage Agreement "Subject Fund, full authority, within 'Labor-Management 1947,' eligibility, priorities amounts arranging investment matters." 78a. Resolution 68, January 19, 1967, "a Widows Survivors thousand dollars ($5,000.00) result regularly classified job bituminous signatory exempted said Agreement, ($2,000.00) event outside industry. 82a. 60 monthly installments 22 installments. 85a. 69, following herein care .: "5. Unremarried unmarried dependent children twenty-two (22) described Subparagraph B Paragraph I recipients Benefits 68." 90a. Article II, E(3), "of [p]rior Plan then 1950." 114a. "By trustee's interpretation, clause applies collecting and, well, who, ceased them. construction, excludes later applying health-care benefits." 333, (1981)(footnotes district jurisdiction restrain violations 302. 186(e). represents surviving spouses service "(1) "(2) receive return industry." 449 F.Supp. 941, 942 (1978). stated: "Those Congress [§ 302] corruption bribery employers, extortion representatives, abuse officers power achieve welfare left control. Congressional attention focussed problem demands large international establishment employers' Ryan, 350 299, 76 400, 100 L.Ed. 335. "Congress specificity thereunder, substantial danger existed perpetuate control officers, purposes, personal gain. 4892-4894, 4899, 5181, 5345-5346; S.Rep.No.105, 80th Cong., 1st Sess., 52; 4678, 4746-4747. To remove dangers, assure expended established. Cox, Some Aspects Harv.L.Rev. 274, 290" (footnotes Senator Taft, primary author LMRA, "Certainly some restrictions find merely war chest union, supposed established, definite legal rights kind deductions wages." Ball, sponsors floor amendment 302, "All sought done all, reasonable basis, see protected. "In words, complete there respecting go always supposedly second." 328-329, 2794, 672; H.R.Rep.No.510, 66-67 570-571. supra, enacting traditional duties." decide, today, sitting equity duties. is, course, clear enforceable 302(e) 426-427, 868-869, 915. authorized, approval Employers Union, changes Plans hereunder deem necessary appropriate. "They directed, adequate notice consultation hereunder, including retroactive modifications amendments, necessary: "(a) conform ERISA, regulations issued thereunder; "(d) government ruling." art. XX, (h)(5), 106a. without protection: "Under contract principles, vested altered pensioner's consent. generally Note, Col.L.Rev. 909, 916-920 (1970). retiree, moreover, remedy 301 breach unilaterally changed. Smith Evening News Assn., 371 195, 200-201, 83 267, 270, 246 (1962); 470, 495, (1960)." 20. See, e.g., Franks Bowman Transportation 424 747, 96 1251, 47 444 (Title VII Civil Rights 1964); Corning Works Brennan, 417 188, 94 2223, 41 (Equal Pay Act). Fishgold Sullivan Dry Dock Repair 328 275, 285, 66 1105, 1111, 90 1230. Norfolk Western R. Co. Nemitz, 37, 185, 198. Pennington, 381 657, 85 1585, 626. 19 Magnavox 415 1099, 39 358; Radio Officers NLRB, 347 17, 74 323, 98 455. Vaca Sipes, 386 171, 177, 87 903, 842; Syres Oil Workers, 892, 152, 785; Ford Motor Huffman, 345 73 681, 1048; Steele Louisville Nashville 323 192, 65 226, 89 173. Railroad Trainmen Howard, 343 768, 72 1022, 1283. 21 Carbon Fuel 212, 218-219, 410, 414-415, 62 394; H. K. Porter 397 99, 105-108, 821, 824-826, 25 146; Insurance Agents, 477, 488, 426, 454; Teamsters Oliver, 358 283, 295-296, 297, 304, 312; American Ins. 395, 404, 824, 1027.

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