Document: 435 U.S. 40 98 S.Ct. 927 55 L.Ed.2d 96 FEDERAL MARITIME COMMISSION et al., Petitioners,v.PACIFIC ASSOCIATION al. No. 76-938. Argued Dec. 7, 1977. Decided March 1, 1978. Syllabus Respondent Pacific Maritime Association (PMA), a collective-bargaining agent for multiemployer bargaining unit composed of various employers coast dockworkers, entered into agreement with respondent Union regarding nonmember use dockworkers jointly registered and dispatched through PMA-Union hiring halls whereby the nonmembers would participate in all fringe-benefit programs, pay same dues assessments as PMA members, "steady" men way be treated members during work stoppages. Various public ports, which had previously competitively made separate (and assertedly several respects more advantageous) agreements PMA, filed petition petitioner Federal Commission (FMC) asserting that was subject to filing approval under § 15 Shipping Act, 1916 (Act), requires between common carrier by water (or "other person" furnishing facilities connection such carrier) another or person, including those "controlling, regulating, preventing, destroying competition." The FMC is empowered "disapprove, cancel, modify" any it finds unjustly discriminatory detrimental commerce interest. Before after disapproval are unlawful may not implemented. Lawful excepted from antitrust laws. severed initial determination issues its jurisdiction over challenged whether there were considerations national labor policy nevertheless exempt requirements 15. found purpose place on asis effect control affect competition nonmembers. Applying standards articulated United Stevedoring Corp. v. Boston Assn., 16 F.M.C. outside protection an FMC-recognized exemption therefore Court Appeals reversed, ruling agreement, regardless impact competition, requirements. Though recognizing holding precluded immunity provides, even cases where shipping support exemption, court felt necessary implement system established federal statutes dealing labor-management relations, industry. Alternatively, held if per se rule infirm erred refusing agreement. Held: 1. Collective-bargaining class categorically 15's Pp. 53-60. (a) Because provides approved will laws, clear Congress (1) assigned FMC, courts, task initially determining anticompetitive restraints disapproved general statutory guidelines, (2) anticipated restraints, forbidden laws other contexts, acceptable 53-56. (b) Appeals' conclusion prompt implementation lawful could realized procedure overlooked fact Act's terms vast majority arrangements candidates routinely filed. has determined recognize "labor exemption" contracts falling within boundaries defined announced criteria like applicable 56-58. (c) FMC's conditional pending final decision their legality adequate overcome concern procedures prevent "the maintenance restoration industrial peace." 59-60. 2. also alternative ground balancing test weighing Act relations should filing, view suggested failed realize effort force ports against will, issue exclusively domain National Labor Relations Board. Here no change units but impose bargaining-unit units. 60-61. 3. requisite findings sustain decision. 61-63. 177 U.S.App.D.C. 248, 543 F.2d 395, reversed. Daniel M. Friedman, Washington, D. C., petitioners. R. Frederic Fisher, San Francisco, Cal., Association. Norman Leonard, International Longshoremen's Warehousemen's Union. Mr. Justice WHITE delivered opinion Court. 1 Section 1916, 39 Stat. 733, amended, 46 U.S.C. 814,1 (Commission) seven categories water, person this chapter ' person.2 Among must "unjustly unfair carriers, shippers, exporters, importers, . operate detriment States, contrary interest " directed approve do transgress these standards. disapproval, implemented.3 Agreements "lawful section" provisions contained §§ 1-11 Title States Code. Violations section punishable civil fines than $1,000 day. 2 case Commission's up dockworkers,4 (Union). 3 * This arose when eight municipal corporations, owners operators port PMA,5 1972 violative 15, 16, 17 Act6 because unjust, discriminatory, Prior time, negotiated conditions some differed Fringe-benefit varied, depending result individual negotiations.7 In enjoyed flexible rules did PMA; example, often permitted "steady crews," whereas, contract rotation workers among rule.8 existence enable exert negotiating pressure striking while continuing ports. nevertheless, virtue secure halls9 make particular payments called contributing funds maintained PMA.10 4 During negotiations beginning November 1970, one raised continue allowed hiring-hall plans. These privileges desired eliminate.11 Ultimately, parties arrived at Supplemental Memorandum Understanding described follows below: 5 "In agreed accept contributions who executed uniform participation standard included Memorandum, require nonmembers, condition using joint dispatching employees, fringe benefit steady 'in member so,' stoppages." 250-251, 397-39 (1976) (footnotes omitted).12 6 It asserted action 7 October 1972, and, otherwise covered rooted section. Thereafter, June 24, 1973, new revised replacing Understanding. By additional order, extended jurisdictional inquiry include provisions, which, although revised, deemed have essentially present purposes 8 subsequent report Assn. Coopera ive Working Arrangements, 18 196 (1975), first rejected suggestion accommodating statutes, well exceeded scope legitimate bargaining, itself decide defer courts Board.13 argument, similar arguments New York Assn.—NYSA-ILA Man-Hour/Tonnage Method Assessment, 381 (1973), aff'd, Ass'n, Inc. Commission, 495 1215 (CA2), cert. denied, 419 964, 95 224, 42 178 (1974), requirement triggered neither carriers nor persons act" PMA's union, person."14 went find competitive basis concluded thus unless, part contract, fell category placed beyond reach Act. recognized so-called (1972), proceeded adjudicate status instant case.15 9 ultimate entitled primarily thrust bring parity requiring submit terms. "a potentially severe adverse upon competition," F.M.C., 208, only superficial process. 10 District Columbia Circuit set aside disputed wholly 395 (1976). approach, extends roughly equivalent hold contracts, inadequate response demands policy. Without disturbing here "to nonmembers," 201, hence literal without qualify relevant cases, ruled whatever Commission. that, excluding infirm, question here. 11 We granted certiorari 430 905, 97 1172, 51 580 (1977), raises two issues: exempting not, II 12 cannot agree below might be, face reaches If nature, jurisdiction, quite untenable suggest never control, regulate, prevent, destroy competition. See Mine Workers America Pennington, 657, 85 1585, 14 626 (1965); Allen Bradley Co. Local 3, Intern. Broth. Elec. Workers, 325 797, 65 1533, 89 L.Ed. 1939 (1945). unless unfair, operates apparent guidelines. equally substantive matter, 13 That arbiter industry reflected prior holdings reaching "consider implications before approving it," Seatrain Lines, Inc., 411 726, 739, 93 1773, 1782, 36 620 'required serious transportation need, important benefits furtherance valid regulatory Act.' Aktiebolaget Svenska Amerika Linien, 390 238, 243, 88 1005, 1009, 19 1071 (1968). "even though they ." Seatrain, supra, U.S., 728, S.Ct., 1776. removal overseeing private regime historical anachronism we ignore. responded Board Isbrandtsen Co., 356 481, 78 851, 926 (1958), dual rates adopted conference violated suspending full study permanent legislation. After extensive investigation, amendments forthcoming 1961, Pub.L. 87-346, 75 763; basic approach—that regulation administrative function, judicial review—was reaffirmed. Indeed, amended "by enlarging clarifying [Commission's] powers thereunder" by, things addition H.R.Rep. 498, 87th Cong., 1st Sess., 17-18 (1961). declared Antitrust Subcommittee House Judiciary Committee, undertook three-year entire gamut problems ocean freight ," heart Act." 1419, 2d 2, (1962). appropriate, therefore, broad resisted improvident attempts narrow it. Volkswagenwerk Aktiengesellschaft 261, 929, 1090 (1968), provision create sizable fund o used mitigate technological unemployment employees. reserved right determine how raised, thereafter settled method contribute fund. then latter assessment formula language section, since applied dealings traveling public.16 affirmed; rejecting "extremely statute uses expansive language." 273, 936. expressed desire read narrowly order minimize noted "antitrust results, submitted actually 936, "in deciding required consider implications." Id., 273-274, Hence, "[t]o limit 'affect competition,' phrase simply [did] square structure statute," id., 275, 937, "would [render] virtually meaningless" major parts provisions. 275 n. 23, 937 23. dealt agreed-upon formula, been about validity underlying contract. does ever 15; emphasize breadth Congress, "subject scrutiny specialized governmental agency myriad restrictive maritime industry." 276, 937. At very least, counsels implying exemptions agreements, otherwise, whose "neither de minimis routine." 277, 938. case, appear plain unaware depriving power disapprove clearly confers, thought While doubt give due each seemingly overlapping think misconceived principal objection implemented disapproval. alone enough for, f understood mandated essential elements legally free promptly compromise worked out eleventh-hour sessions U.S.App.D.C., 257, F.2d, 406. Subjecting nearly impossible Ibid. Prompt indeed consideration, fears possible process exaggerated justify surgery performed below. place, most applies least see single employer Moreover, Under commerce, interest, fail satisfy specified standards, difficult conclude ordinary establishing wages, hours, working commerce. Such product compelled themselves enacted pursuant regulate They kind main specifically designed protect restraints. Consistent 35 738, added, 80 1358, 833a, appropriate circumstances "any activity persons,"17 adjudication, criteria.18 doing so, guided understanding our define certain management labor. appears intention exercise examination reviewed relations. demonstrated juncture concerns cited sufficient complete consequent partial emasculation scheme review agreements. Second, event, claims authority, exercised, Assn.—NYSA—ILA legality; why mechanism amply responsive undue delay adequacy now debated have, request early, approval. deny permit decision, alleviation problem still "specter" later invalidation perhaps crucial But immediately obvious obviously illegal Furthermore, having aspects it, event uncertainty treble damages long litigation court. survive served goals, insulated attack. critical aspect plan devised judgment respect error nonexempt, judicially interposition regard considerations. III 20 absent blanket exercised exempted filing. appeared disagree interests Perhaps comparison business collective exempt, offered little judgment. last analysis merely Labo Board's authority intermeddle. argument wide mark. units; certified Rather relying resolve problem, one, unit. 21 "Supreme primary NLRB agreements," 263, 410, removed cognizance opinions so broadly read. authorized police, modify, invalidate aimed regulating insulate here, said, took different course committing disapproving However much particularly accommodate possibly conflicting policies warrant ignore congressional preferences written IV 22 Although challenge content application guidelines resolving respondents urge misread cases. particular, fault failure constituted violations. submissions unsound. need tried violation can just denying mean violation.19 Insofar concerned, needed assume proceed undertaken employment As observed: 23 "[T]here nothing indicating union bargain hours attempt settle matters 24 "[A] forfeits shown wage scale units." 665-666, 1591. 25 Here, both req ire plans Union, observe PMA-determined stoppage, force. result, found, higher costs elimination what considered disadvantage" members.20 Accordingly, warranted finding supplemental [was] 'competitive' PMA." 201. 26 unpersuaded view. Nor impressed guise contentions lack ability experience, purport deal leave matter industry; vulnerable explain them instance either 27 summary, true sensitivity anticompetitive, take account special needs relationships add contains own accommodation rather necessarily misapplication always exactly congruent courts. 28 29 ordered. 30 BLACKMUN consideration case. 31 POWELL, whom BRENNAN MARSHALL join, dissenting. 32 today holds 814. Neither legislative history offers specific result. For half century, responsible enforcing previews mission,1 hardly recent development Nation.2 No intervening legislation explains Court's willingness belated assertion jurisdiction.3 33 debatable unexceptional presence competing statute. confronting reconciling distinct law embodied Management 1947, 141 seq. seems me today's undercuts policy, imposing burdens advancing significantly objective. I dissent. 34 sweeping generality arguably almost involving party accents importance construing light pertinent statutes. interpreted related maritim transportation. 731-734, 1777-1779, (1973). referred today, ante, 55-56, emphasized language, careful avoid comply subjecting clearance goes limits Volkswagenwerk. There, earlier (PMA) (Union) provided introduction labor-saving devices practices. creation "Mechanization Modernization Fund" (Mech Fund) $29 million raise members. setting forth formulas collecting Mech Fund. employers' "side agreement" substantial stevedoring terminal charges, Following States,4 restricted agreement," explicitly disclaiming "It involved allocating Fund levy. concerned creating ILWU. claim Those reflecting representatives parties' unfettered choice, fall area Board, said questioning validity. ILWU, insisted exclusive assessed, clause arrangement, affecting customers, us case." 278 (emphasis supplied). 37 ¢sThe italicized makes perceived distinction, material implementing contractors, marine operators. 38 follow lead A proper signals bona fide arm's-length negotiations,5 Government bargain, prohibitions 166 prospects peaceful resolution disputes marked strife, C. Larrowe, Shape Up Hiring Hall 1-48, 83-138 (1955); 296-299, 948-949 (Douglas, J., dissenting part), enhanced imposition Collective works best arrive solutions regulators. legal consequences assessed fact, negotiate framework prescribed (Board). Often conducted constraints reached eleventh hour. expiration date previous accord approval, labor's "no work" tradition suggests likelihood disruptive stoppage. suffer know tentative accord, pre-implementation agency. (CA ), (1974): extremely meaningful key turns Com mission. supervision impede inhibit negotiators' novel troublesome problems. superimposition [matters are] likely disrupt deter speedy Brief Amicus Curiae Nos. 73-1919 73-1991 p. 14. 41 entails recognition revisory empowered, notice hearing, cancel modify unfair," If—as holds—this exceed remedial itself, falls short interference "freedom contract" parties. H. K. Porter NLRB, 397 99, 90 821, 146 (1970), grant checkoff remedy acknowledged duty good faith. implicit acts oversee referee leaving results contest strengths broad, limited carrying itself. One fundamental freedom absolute allowing compel unable violate premise based—private alone, official compulsion actual contract." 107-108, 825. 43 law, generally post-execution damages, "official contract."8 reposing fundamentally odds 44 insists [is] [does] below." Ante, 57. few filed, apply employer, foresworn uncertain contours developed judications. Ante., 57-58. 45 means optimism justified. unions groups, following caution, respond Respondents comfort "routine," Petitioners 28, "ordinary agreements" "be 15," 57.9 Few association governing "routine" safely enjoy degree delay, then, seem inevitable byproduct Similarly, possibility qualifies offer realistic palliative probable bargaining. policy,10 well-developed corpus labor-antitrust decisions guide formulation identified four nonexclusive, nondeterminative inform rulings.11 brief entry field, however, hope impair analysis, penalties Act12 "guessing wrong" unlikely disruption inherent prior-restraint allayed rulings inexpert matters.13 47 history14 reference spectrum arrangements, "common water" chapter."15 Unions wished done or, indispensable agreement—the union.16 48 construed led industry17 encouraged empower immunize shippers others scrutiny.18 abstracts context prompted premised reflect principles.19 InVolkswagenwerk, Association, immunity, understandable. presented pointed "not [the labor] involve[d] Board." 4, supra. believe, intended approve, thereby varied 49 third 15—which Assn.—Cooperative (1975). Undoubtedly, pose recognize, "reading increase number potential immunity," "conflict frequently strictly construed, see, e. g., McKesson & Robbins, 351 305, 316, 76 100 1209 (1956) 8, 1778. Plenary entirety avoided retroactive, piecemeal grants exemption."20 better class, come 50 An prior-clearance shield remain open negotiations, circumvent clothing arrangement trappings accord. taken implementation, 17. vindication instance, genuine unreviewed "interim approval" 13, proposed occasional evasion device likened sledge hammer fix watch." 296, 948 part).21 respectfully 814, follows: "Every chapter, shall file copy, oral, memorandum, every modification cancellation thereof, conform whole part, fixing fares; giving receiving rates, accommodations, advantages; controlling, com- petition; pooling apportioning earnings, losses, traffic; allotting restricting character sailings ports; limiting volume passenger traffic carried; manner providing exclusive, preferential, cooperative arrangement. term 'agreement' includes understandings, conferences, arrangements. "The disapprove, exporters foreign competitors, modifications, cancellations. approved, continued conferences serving trades naturally competitive, carrier, conference, retains independent action, fails provide reasonable equal admission readmission membership qualified trade, withdraw penalty withdrawal. policing obligations refusal adopt maintain fairly hearing considering shippers' requests complaints. "Any disapproved, unlawful, cancellations Commission; unlawf l carry directly indirectly, modification, cancellation; except tariff fares, classifications, rules, regulations explanatory thereof (including changes charges 813a title involve spread noncontract shippers) thereto, accordance compliance publication 817(b) adopt. title, sections Acts supplementary thereto. "Whoever violates liable day continues, recovered action. Provided, leases, licenses, assignments, property enactment date, ninety days modified, canceled operation thereon. section." 801, defines chapter" 'common water,' forwarding wharfage, dock, warehouse, water." There exceptions rule, steamship lines, agents, companies, companies operating States. complaining Anacortes, Bellingham, Everett, Grays Harbor, Olympia, Port Angeles, Portland, Tacoma. Seattle subsequently intervened side. 734, 815, forbids preferential acts; 17, 816, empowers prescribe nondiscriminatory rates. purposes, "fringe benefits" refers bargained-for vacation pay, guarantees, pensions, welfare, holidays. favors centralized, rotational system, equalizes job opportunities insuring available Employers, prefer gangs, believing efficient constantly familiarized employer's operations. Since 1935, hire financed created reconcile fluctuating demand longshore stable employment. register jobs assignments. Despite industry, receive paycheck PMA. central payroll recordkeeping longshoremen. paid fee privilege. view, great programs funded thousands establish On hand, some, all, When began late member. eliminated become To description, quoted paragraphs revision Understanding, mentioned text, substantially nn. 6-9, 397-398, 6-9: "6. 7. participant ILWU-PMA Pension Plan, Welfare Vacation Plans (longshoremen clerks, walking bosses/foremen) Guarantee clerks/ participation. times respective payments, attached statements currently Non-member Participants audits "7. 9. Each amount pay. Payments time pay." "8. 5. obtain employ man so. employs basis, notify immediately. furnish list basis. Steady Pay Plan ILWU." "9. share example "a) dispatch hall operated ILWU allocation "b) stoppage shuts off participants hall, "c) participants. essence b) c) acceptance nonmem- ber principle participants." point out: Revised Agreement selection force, continuance obligation assessments, payment record forms." 251 9, 398 complaint alleged, refused investigate unmeritorious, already counterpart brought requested stay proceedings, questions. person," constitutes contracting carriers—in with—and insofar identity concerned. Second agrees 1215, 1220-1221, (1974). disagree; approach 261 31, 408 31. 12-13: "Hence, evolved herewith assisting caveat. meant determinative Just resolved ad hoc too we. deserves element controlling. ules thumb' factual situation. "1. gives rise Other expressions characterize 'arms-length' 'eyeball eyeball.' "2. mandatory g. conditions. concern, i. e., intimately commonly associated purpose. "3. entities group. "4. acting behest combination nonlabor conspiracy management. nature scrutinized type examined extent direct remote. relief sanction imposed weighed equities, above value. cannot, subscribe "outsiders" express pass portion Marine Terminals Corp., 77, 82-83 (1965). 35, provides: Commissi n, motion, future Intercoastal 1933, effective attach may, revoke exemption. "No revocation issued opportunity afforded interested persons." See, Connell Construction Plumbers Steamfitters 100, 421 616, 1830, 418 Court, concluding nonstatutory remanded Sherman also, 189, Amalgamated Meat Cutters Jewel Tea 676, 688-689, 1596, 1601-1602, 640 (1965) (opinion White, J.). advantage able "pick choose [and could] get favored treatment utilization workforce, men, privilege [could not], [that nonmembers] [went] far situation handle cargo handled strike periods." App. 102. 1968, th predecessors idea employer-employee relationships. Three years work-gang employee-recall association. recall (1971). appeal, respondent, incorporating positions Department objected opposition move remand further consideration. expressing "astonishment" difference "between attaching separate, making multi-employer eyeball eyeball, multi-employer, SRR 20,828, 20,830 (CA1 1972). remand, derived, analogy, decisions. 14-15 (1972). Aside controversy, foray arena funding program incorporated supported urged reversal. upheld longshoremen sufficiently organized 1874 conduct five-week wages. 1914, locals formed (ILA) secured portwide west coast, Council ILA, 1915, increases Puget Sound-British area. Shape-Up 7-9, 87-89 (1955). notes extensively 763, 54, evidence re-examination industry," (1962), touched "For relate solely Cf. Kennedy Long Island 211 F.Supp. 478 (S.D.N.Y.), affirmed, 319 366 375 830, 84 75, 61. mechanization character. And ancillary collect somehow. side Association's prescribing them. cost involves O.T.1967, 69, pp. 31-32 supplied); Volkswagenwerk, 7-8. fides question. concede integrity Reply 6. part: conjunction indirectly— "First. unreasonable preference locality, description whatsoever, prejudice disadvantage whatsoever infra. establish, observe, enforce practices relating connected receiving, handling, storing, delivering property. Whenever practice unjust determine, prescribe, enforced practice." 8(e) 158(e) (1970 ed., Supp. V), prohibits entering "hot cargo" clearance. obtaining preliminary injunction 10(l 160(l issuance cease-and-desist enforcement appeals. discussion somewhat unclear. observed 57, apparently conformity presumed. saying, "routinely filed," ibid., answer respondents' contention prevents preservation peace. "We courts." 63. "These 'rules situation." 12. promised undertake rulemaking proceeding promulgate precise exemption," forthcoming. Noncompliance exposes offending violation. ultimately well, guilty misdemeanor fine $5,000 offense. temporary approvals 1218, passed court, Cooks Stewards 75-2013 (CADC Feb. 1977) (dismissing appeal). dispensation grace. delays disappear chance persuaded And, recognized, frequent assumed, interim "does remove unilateral 260, 407 "[t]he unilluminating concerning Congress' intent signatory 25. Legislative developments passage highlight improbability 1938, (MLB) encouraging settlement mediation. 1938 measure, 52 967, MLB copy group employees covering 1941 Committee Report bill two-year extension machinery noted: "This copies studied promoting "One unique 4,303 represent agency." 354, 77th (1941) discontinued. "means water," 801. contrast, bars engaged t rm "person" "includes partnerships, associations, existing State, Territory, possession country." guiding "Alexander Report." Merchant Fisheries, Steamship Affiliations, H.R.Doc.No.805, 63d Sess. (1914). 490, 857, (1958). Alexander principally addressed methods employed lines cartelized 409-412, 415, 421-422. ensure surveillance practices, recommended domestic trade shipper, railroad, agencies. 419-420, 422-423. Concluding outright prohibition rate wars mergers, "chose continuation curb abuses government agreements." 1781, until 1782. Apparently, confer portions fit neatly authorization 833a. contemplates "for future," my properly read, correctly (1965),

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