Document: 435 U.S. 497 98 S.Ct. 1185 55 L.Ed.2d 443 E. I. MALONE, Commissioner of Labor and Industry for Minnesota, Appellant,v.WHITE MOTOR CORPORATION White Farm Equipment Company. No. 76-1184. Argued Jan. 10, 1978. Decided April 3, Syllabus The 1971 version a pension plan negotiated by appellee company the union representing its employees provided that pensions were to be payable only from fund established under plan. Funding was in part on deferred basis; excess accrued liability fund's assets met through contributions employer's continuing operations. Though had right terminate plan, it guaranteed pay benefits amounting $7 million above assets. A few weeks before appellee, May 1, 1974, exercised termination right, Minnesota's Private Pension Benefits Protection Act (Pension Act) enacted, which imposed "a funding charge" directly against any employer who ceased operate place employment or After appellant state official certified application owed charge over $19 million, brought this suit District Court, challenging constitutionality Act, inter alia, ground interfered with process collective bargaining sanctioned National Relations (NLRA) therefore pre-empted NLRA. Section 10(b) federal Welfare Plans Disclosure (Disclosure shall not exempt person present future law affecting operation plans. 10(a) construed prevent State obtaining additional information relating "or otherwise regulating such plan." having taken note § disclaimer, found sufficient evidence congressional intent law, ruled favor appellant. Court Appeals reversed, holding purporting override existing several respects, encroached upon subjects Congress committed determination collective-bargaining process. court also concluded related statutes governing those obligations trust undertaken persons managing benefit funds, violation gives rise criminal civil penalties, there no basis construing as leaving power change substantive terms agreements. Held : 1. NLRA neither expressly nor implication forecloses regulatory plans may subject bargaining. Sections together legislative history statute, indicate Congress' intention preserve authority plans, including resulting concerned corrupt but possibility honestly managed would prematurely terminated employer, without funded at retirement age; clearly anticipated broad role States. Pp. 504-514. 2. That applies pre-existing agreements does render pre-empted, since more less consistent policy. Appellee's claim unfair retroactive impact considered context appellee's due impairment-of-contract claims, are will consider remand. 514-515. 8 Cir., 545 F.2d 599, reversed. Richard B. Allyn, St. Paul, Minn., Allan A. Ryan, Jr., Washington, D. C., United States, amicus curiae, special leave Court. Frank C. Heath, Cleveland, Ohio, appellees. Mr. Justice WHITE delivered opinion 1 Minnesota Minn.Stat. 181B.01 et seq. (1976) Act), passed minimum standards vesting employee pensions. question case is whether January 1975, has been Employee Retirement Income Security 1974 (ERISA),1 prior time labor policy insofar purported control (NLRA). Federal held not, 412 F.Supp. 372 (Minn.1976), Eighth Circuit disagreed invalid. 599 (1976). Because fell within our mandatory appellate jurisdiction pursuant 28 U.S.C. 1254(2), we noted probable jurisdiction. 434 813, 49, 54 69. We reverse. 2 * In 1963, Motor Corp. subsidiary, Co. (hereafter collectively referred appellee), purchased another two farm equipment manufacturing plants, located Hopkins, Minneapolis, Minn. (on Lake Street). these represented International Union, Automobile, Aerospace Agricultural Implement Workers America (UAW), covered 3 Under contract, an attained age 40 completed 10 years credited service entitled pension. amount depend retired. language unchanged 1950, "[p]ensions Fund, rights enforceable Fund." App. 155.2 Plan, however, basis. unpaid past liability—the value Fund—was operations.3 4 10.02 Plan "[t]he Company have sole entire During 1968 negotiations, UAW obtained guarantees that, termination, them remain certain designated levels, though lower than specified Plan.4 By virtue guarantees, assumed direct payments Fund. 5 Appellee contractual 1974.5 before, enacted. This statute insure all receive whatever them, regardless their "vested" Plan. funds then used purchase annuity when he reached normal age. Although did compel adopt continue guarantee years' full payment benefits. 6 Pursuant appellant, undertook investigation here involved later sum necessary achieve compliance $19,150,053. became lien appellee. promptly filed 7 complaint, amended, asserted violations Supremacy Clause, Contract Due Process Equal Clauses Fourteenth Amendment States Constitution. Clause based argument conflict provisions NLRA,6 29 151 seq., because "interferes Plaintiffs free . vitiates entered into imposing which, express agreements, required assume." A-9—A-10. moved partial summary judgment or, alternatively, preliminary injunction pre-emption claim. Distinguishing Local 24, Brotherhood Teamsters v. Oliver, 358 283, 79 297, 312 (1959), relying contained 72 Stat. 997, 76 35, 301 law. (Minn.1976). On appeal, reversed reason arrived bargaining, least three ways: It granted vested available plan; extent deficiency fund, general while paid out fund; post- ermination beyond specifically guaranteed. This, ruled, could do; if, Lodge 76, Machinists Wisconsin Employment Comm'n, 427 132, 96 2548, 49 396 (1976), "states cannot economic weapons parties table, fortiori, they contract results bargaining." F.2d, 606. Further, understood supra, modify valid effective provision agreement." 608. Finally, disclaimer relied 9 "to managing, administrating operating penalties. Accordingly, warrant exists legislation agreements." Id., 609. II uncontested invalid depends Congress. "The purpose ultimate touchstone." Retail Clerks Schermerhorn, 375 96, 103, 84 219, 223, 11 179 (1963). Often intends pre-empt laws; instances, courts normally sustain local regulation same matter unless conflicts frustrate scheme, discern totality circumstances sought occupy field exclusion Ray Atlantic Richfield Co., 151, 157-158, 988, 994-995, 179; Jones Rath Packing 430 519, 525, 540-541, 97 1305, 1309, 1316-1317, 51 604 (1977); Rice Santa Fe Elevator Corp., 331 218, 230, 67 1146, 1152, 91 L.Ed. 1447 (1947). "We declare touches concerns way complex interrelationships between employees, employers unions; obviously, much left States." Coach Employees Lockridge, 403 274, 289, 1909, 1919, 473 (1971). "leaves states, refrained telling us how much. must spell conflicting indications area action still permissible." Garner Teamsters, 346 485, 488, 74 161, 164, 228 (1953). Here, trenched what There little doubt labor-management relations, bargain about wages, hours, working conditions proper compulsory But nothing NLRA, sections relies, respect issues, If here, do so implied relevant statutes. concluded, should made far reliable indicium regulate Act. provided: 12 except subsection (a) thi section 13, thereunder, relieve liability, duty, penalty, punishment administration welfare manner authorize contrary law." 13 Also, 10(a), after shielding duplicating filing requirements, makes clear other laws remained unaffected: 14 "Nothing desire, 15 Contrary Appeals, believe foregoing provisions, 1958 recognized preserved product effect crucial events case, expression included therein decision here.7 16 Congressional consideration problems began 1954, President sent message recommending 17 "Congress initiate thorough study view enacting protect conserve millions men women beneficiaries."8 18 next four years, hearings, studies, investigations, Senate Subcommittee canvassed nearly unregulated possible solutions them. turned up extensive kickbacks, embezzlement, mismanagement, concluded: 19 most serious single weakness private social insurance abuses failings enumerated above. Overshadowing too frequent practice withholding affected, employee-beneficiaries, permit determine (1) program being administered efficiently equitably, (2) importantly, prospective income programs promised them." S.Rep.No. 1440, 85th Cong., 2d Sess., (1958) (hereinafter S.Rep.). 20 As first step toward protection workers' interests pensions, enacted administrators file Department make request both description annual report containing financial information. trust, include, 21 "the type funding, actuarial assumptions used, current liabilities, number retired nonretired .," 22 well valuation fund. 23 prescribe rules either purposes described Report explained: 24 "[T]he proposed statute. discl sure design endeavors responsibility S.Rep. 18. 25 objective reflected §§ 10(b), quoted explained, designed detailed regulations insurance, trusts phases operations." 19. "no desire get Government disclosure close cooperation great assistance carrying functions." 26 adopted legislating many prompted original inquiry focused need workers "covered identified characteristic bargained-for others. Reports House Committees explained frequently 8; H.R.Rep.No. 2283, H.R.Rep.). emphasized even where incorporated agreement. 4, 8, 14. Congressmen explaining bill floor apply "whether existence 104 Cong.Rec. 16420 (remarks Cong. Lane); id., 16425 Wolverton); see 7049-7052 Sen. Kennedy). Indeed, opposition approach "require surrender unions channels 34 (minority Allott); accord, H.R.Rep. views).9 Yet drew distinction bargained regard functions 27 argues Act's allocation irrelevant "enacted deal corruption mismanagement funds." Brief Appellees 36. think advances excessively narrow history. corruption, stated: "Entirely aside violations, compelling reasons why types plans." 16. reproduced chart showing registered Internal Revenue Service during 2-month period. Ibid. Committee observed: "Trustee commonly limit benefits, fixed, can trust." 15. illustration, disclaiming event termination. Ibid.10 showed awareness posed requirements11 expressed concern "employees whose mature period rely expectation able renew negotiate similar one termination." 8. Thus, issues case—unexpected inadequate requirements. preserving generally "affecting plans," 1003, indicated problems. Moreover, "future," "present" aware thus attempted plans.12 envisioned laying foundation regulation. provide adequate laws." Senator Kennedy, manager bill, his colleagues: 30 employee-beneficiaries uniform facts participants order desired effectively accomplished." 7050 (1958). 31 See Kennedy [was] [were] going begin move." 7053 32 aim perhaps best summarized Smith, ranking Republican supporter bill. He 33 "It seems pending extend problem corruption. stated aims determine, first, equitably; and, second, "This provides anticorruption directed machinations dishonest betray trust. Rather, inaugurates new accountability. 35 very lead establishment governed." 7517. 36 contemplated primary developing "mandatory standards" lie 37 came quite different conclusion ERISA adopted, light history, hold nevertheless implicitly intended among given Congress, concerned. seeks promised—exactly kind hoped solve. 38 Court's claimed antitrust agreement specially adapted trucking business. prescribed wage scale truckdrivers evasion, drivers own drive vehicles paid, addition wage, rental use vehicles. An Ohio invalidated portion noting [of law] parties' solution good faith solving limitations here." 296, S.Ct., 304. 39 Oliver contains affirming independence interference: "Federal created duty collectively; system applicable response sets some outside limits (not contended exceeded here) .. room scheme limiting wages conditions." (citations omitted). 41 recognizes exceptions rule. One necessarily anticipated, situation evident result: 42 worked sort prohibition Cf. Algoma Plywood & Veneer Board, 336 301, 307-312, 69 584, 93 691." Ibid.13 43 understand issue dealt precisely "which [regulation] states." exercise depart sustaining III 44 Insofar concerned, called UAW-White years. points opportunity legislation. equitable considerations underlie argument, material resolution adopted.14 45 Our is, course, limited inconsistent constitutional claims us. remains remand contentions impairs fails Without intimating views merits questio s,15 context. All decide finding hereby 46 Reversed. 47 BRENNAN BLACKMUN took case. 48 STEWART, whom THE CHIEF JUSTICE joins, dissenting. I substantially agree reasoning 599. affirm 50 today concede statutory modification if somehow impose particular modification. Ante, 413-414. finds indication implicit failure undertake so-called 1958. believe, inferences drawn largely fundamental national undisturbed ." 304, 312. POWELL, 52 join STEWART'S insufficient barring interference privately involving 53 305, "[w]e health safety regulation; federally adjust relationships world commerce." removes table means dealing inevitable trade-off somewhat industrial relations goals—the tension maintaining competitive compensation time, creating solvent security long-term retirement. essence, restricted options fully vests service, whenever ceases imposes principle discourage participation matters vital importance women. retroactivity feature measure exacerbates degree Here imposition substantial large embodying continued force, arbitration decision, plant closed. Essential features i cluding past-service negated expansion determining struck. unlikely predicted development. therefore, serves backdrop affording considerable freedom strike policies. midterm, significantly changing balance table. absence contrary, adverted alter expected take account process, often delayed date minimize disruption.* distinct animate policy, weigh—with perception understanding—the public interests. parochial amended retroactively parties. 56 Until expresses clearer fashion ambiguous ante, 505, requires invalidation Appeals. ERISA, 88 832, 1001 (1970 ed., Supp. V), comprehensiv pre-empting 1144(a) V). become until disclaims date, 6.17 "No No herein." Jurisdictional Statement A-29. 9.04, "Rights Fund," relevant: employee, participant pensioner to, interest Trust Fund hereunder, otherwise, provided. Funds Trustee Member thereof liable extent." A-7. net beginning 1971. amortized 30-year assure level 60% 1972, losses, informed plants issue. result Hopkins operate, Street At closed, $14 million. 981 retirees 233 eligible addition, 40. Two hundred sixty work plant. June 30, challenged expiration 1974. arbitrator upheld union's position. 505 1193 (CA8 1974). complaint policies 7, 8(a)(5), 8(b)(3), 8(d) 157, 158(a)(5), 158(b)(3), 158(d). codified repealed ERISA. 1031(a) However, September 2, operative case—and repeal 1975. 1031(b)(1) n. supra. Public Papers Presidents, Dwight Eisenhower, ¶ 5, p. (1960). Opponents argued "seriously interfere relationships" giving access costs employer-administered 7209 Allott). level-of-benefit cost management told providing Allott, principal opponent floor: "Where initiative agrees level-of-benefits representatives further How meet obligation, set settled concerned—not 7208. Congressman Bosch, leading House, bluntly: "Those now contracts agreed knowledge cost, exclusive responsible wish situation, legislation." 16424. Amendments Allott Bosch seeking defeated. 7333, 16442. "representative language" General Motors-UAW insured obligation corporation trustee corporation, officers, directors, stockholders corporation." Among "basic facts" were: "9. group specific For example, might involve attainment 65 "10. envisaged covered—in bargained, constitute majority predominantly employers, actually assurance forthcoming universally employed clause discretion. Even short-term years." 4. Ives, served chairman Investigating 83d "Six already Other considering 7186-7187 coverage extant discussed pointed out: U.S., 305. wholly pass contention. pre-empted. Its pre-1974 disruptive scheme. Fleck Spannaus, 449 644 (Minn.1977), three-judge challenge provisions. 1045, 888, 795, yet heard oral argument. Unlike (ERISA), careful phasing statute's requirements December 31, 1980, whichever earlier. 1061(c)(1) 1086(c)(1) arrangements flowing Pay 77 57, amending Fair Standards 1938, 206(d). bona fide days enactment 1963 measure, amendments occurred first.

Category: 9