Document: 478 U.S. 621 106 S.Ct. 3129 92 L.Ed.2d 504 A.G. BAKER, Jr., et al., Appellantsv.GENERAL MOTORS CORPORATION and Michigan Employment Security Commission. No. 85-117. Argued April 2, 1986. Decided July Syllabus A statute makes an employee ineligible for unemployment compensation if he has provided "financing," by means other than the payment of regular union dues, a strike that causes his unemployment. As authorized their international union, appellant employees appellee General Motors Corp. (GM) were required to pay, in addition "emergency dues" augment union's insurance fund. Although GM reached agreement on national issues at time when negotiations collective-bargaining taking place, three local unions went foundries, fund benefits paid striking from which emergency dues had been deposited. result strikes, operations temporarily curtailed plants, idling more 19,000 employees, most whom are appellants this case. Appellants' claims ultimately denied Supreme Court ground payments constituted "financing" strikes caused appellants' unemployment, thus making under statute. The court further held its construction state was not pre-empted federal law asserted it inhibited exercise rights guaranteed § 7 National Labor Relations Act (NLRA). Held: disqualification receiving compensation, as construed Court, is preempted law. While financing exercising associational protected NLRA, protection does deprive State power make policy choice otherwise would be Title IX Social Act, gives States wide range judgment particular type program they may provide. employers did nothing impair rights. Whether or participants decision strike, expend funds support fact entirely attributable voluntary use bargaining resources—untainted any unlawful conduct employer—is sufficient reason allowing decide whether pay benefits. Appellants laid off simply because but rather became unemployed there meaningful connection between ensued, own layoffs. protects employees' right authorize prohibit deciding compensate who thereby cause An employee's participate either directly it, only example causing one's one furthers free collective regardless provides furloughed labor dispute. Pp. 632-638. 420 Mich. 463, 363 N.W.2d 602, affirmed. STEVENS, J., delivered opinion BURGER, C.J., WHITE, POWELL, REHNQUIST, O'CONNOR, JJ., joined. BRENNAN, filed dissenting opinion, MARSHALL BLACKMUN, joined, post, p. 638. Jordan Rossen, Detroit, Mich., appellants. Peter G. Nash, Washington, D.C., appellees. Louis R. Cohen, U.S., amicus curiae, special leave Court. Justice STEVENS 1 In "financing"—by dues—for unemployment.1 question presented appeal Michigan's statutory implicitly prohibited Act.2 2 This case long history. Two appeals series administrative proceedings have determined relevant facts meaning governing provision. Before addressing question, we shall therefore summarize events gave rise controversy propositions resolved each appeal. Relevant Events 3 story begins June 1967, union3 representing work force automobile industry notified major manufacturers—General Motors, Ford, Chrysler intended terminate all agreements expired September 6, 1967. August, after UAW opened new agreement, members Union employed voted necessary, issues. When expired, began against immediately plants. 4 On October 8, while Ford continuing,4 convention "adequate meet challenges 1967 1968 effort."5 At amended constitution collection dues"6 used Union's letter explaining purpose increase, stated: 5 " 'These extra being raised protect workers well strikers. our comes GM, cannot go back table without adequate behind us promise continued assistance members.' 513, 624-625 (1984) (footnote omitted). 6 payable remain effect during "collective emergency." See n. supra. They much larger dues. emergency, member $1.25 per month $3.75. amendment increased contribution $21.25 plants where average straight-time hourly earnings amounted $3 more, $11.25 lower. Thus, former group increase $20 16 times large fund; latter $10 8 large. settled October, before first scheduled Notwithstanding development, $42 million subsequently collected until November 30, 1967—when "at least December 1967."7 point advised membership even though "the yet ended," waived January revert rate $5 month. December, 1968, however, foundries periods 10, 11, 12 days.8 Strike $4 $6 day, totaling $247,245.31, about half money fund.9 24 functionally integrated employees. Most these Their considered levels review10 judicial review,11 First Appeal 9 decided two questions remanded third consideration Board Review. 10 It "due dispute active progress" establishments operated same employing unit with within rejected argument layoffs due also combination management decisions seniority provisions holding instead "substantial contributing cause" need sole cause.12 11 After finding requisite causal layoffs, relationship strikes. contended expressly excepted coverage "regular dues." argument, term "regular" "to exclude possible treatment those uniformly continuing basis fluctuations prompted exigencies disputes."13 exception encompass "unusual collections supporting dispute."14 noted require made individuals whose issue must traced into hands indicated "meaningful connection" satisfy requirement. Board's successor tribunal consider question.15 13 remand, Review concluded found might affect employment foreseeable substantial source funding agreed. 14 predicate analysis, explained should light general provide persons involuntarily unemployed. applies "persons 'voluntarily' so 'financing' statutorily designated ways person evidence 'direct involvement' dispute."16 "[t]he end proper definition delineate activities contributed them voluntarily therefore, benefits."17 15 order retain jobs GM. could agent shield responsibility authorized. specifically involuntary."18 Those relied factors purpose, amount, timing dues.19 actually financial collected, such occurred, foreseeability relying hindsight occurred.20 amount significant, viewed terms aggregate value individual contributions member, strikers.21 Finally, "minimal" lag unemployment.22 consequence, "not eligible financing, meaningfully connected way, caused" unemployment.23 17 Only meticulously satisfied itself statute, turn agreed paying extraordinary legislative history reviewed New York Tele i ¢s632¢s Co. v. Dept. Labor, 440 519, 99 1328, 59 553 (1979), demonstrated Congress "intended tolerate" conflict law.24 Accordingly, some years litigation, finally claim compensation. 18 We probable jurisdiction appeal, 474 899, 224, 88 223 (1985), now affirm. discuss problem then specific contentions advance. 19 * both enacted summer 1935. Telephone 527, 1334. Neither adopt, maintain, program. Steward Machine Davis, 301 548, 596, 57 883, 894, 81 L.Ed. 1279 (1937). did, motivate enactment programs throughout Nation.25 That provision having approved Secretary Labor. certain minimum standards satisfied, scheme "wide given several states spread upon books." Id., 593, 894. 20 "broad freedom set up wish" basic theme since outlines legislation identified Report Committee Economic prepared President United cornerstone Act." Ohio Bureau Services Hodory, 431 471, 482, 97 1898, 1905, 52 513 (1977). guiding efforts draft programs, stressed importance distinction involuntary characterized key eligibility." 483, 1905. "To serve purposes, unemployed." 1905 (quoting Security, reprinted Hearings S. 1130 Senate Finance, 74th Cong., 1st Sess., 1311, 1328 (1935)). 21 character generally necessary condition eligibility But always qualify benefits, Hodory. case, disqualify millwright plant worked shut down shortage fuel coal mines owned employer. Even through no fault own, interest, him 22 Hodory Ohio's pre-emption advanced, employer giving company's established strikers imposed added burden company plainly "altered economic balance management." 532, 1336. Relying analysis Machinists Wisconsin Comm'n, 427 132, 96 2548, 49 396 (1976), inconsistent "of play forces operate process." 531, disagreed premises, persuaded study 1935 Acts tolerate policy. explained: 23 "Undeniably, aware impact process. omission direction concerning implies authorize, prohibit, payments." 544, 1343. id., 547, 1344 (BRENNAN, concurring result); 549, 1345 (BLACKMUN, MARSHALL, judgment). 25 Our conclusion intend pre-empt States' denying respond advanced For rely, noninterference process, NLRA UAW. Nevertheless, analyzed "a measure diversity," 546, 1344, among idled 26 clear may, not, actual responsible And, hand, equally refuse, provide, interest whatsoever. opposite ends spectrum cases participation significant full knowledge suffer. clear, NLRA. then, deprives Act. II 27 place primary reliance Nash Florida Industrial 389 235, 362, 438 (1967), Commission disqualified she unfair practice charge her District properly treated filing initiation "labor dispute" disqualifying "is dispute." reversed. wished information practices completely coercion reporting Board," 238, 365, interfering file charges. concluded: 28 "[C]oercive actions forbids take charges likewise taken States. . permitted defeat handicap valid objective threatening withdraw cooperate Government's constitutional plan." 239, 366. 29 implicated Board. Arguably different case—the contribute will strengthen position, strike. seem discharge voting favor another plant, just act consequence 30 us, To extent difficult see how entitled greater afforded event, temporary 31 Perhaps answer less obvious focus made, believe similar reasoning leads conclusion. Rather, meticulous Under court's narrow tantamount plant-wide call bottleneck department predictably entire plant. put "since disqualifies involved MESA essentially 'strikers.' 540, N.W.2d, 637. Unquestionably strike; Co., 540-546, 1341-1344. 32 essential recognized inception retaliatory discharge—cannot undermining unemployment—it 33 reaching conclusion, course express wisdom another. Nor concerned application adopted numerous which, like way Specifically, occasion circumstances, any, solely employment.26 merely hold 34 Affirmed. 35 BLACKMUN join, dissenting. 36 Mich.Comp.Laws 421.29(8)(a)(ii) (Supp.1986). organization "in temporal proximity" "for assisting disputes reasonably foreseeably include [individual's] unemployment." 506, 621-622 (1984). Because I that, construed, conflicts (NLRA) permit, respectfully dissent Court's judgment. 37 enacting left range" discretion establish qualifications 893, (1937); 482-489, 1905-1909, previously indicating broad grant authority deny interfere smooth operation laws. notwithstanding based authority. 1341-1344 (plurality opinion); also, 546-547, 38 fashion boundless, laws permit pre-empted. example, petitioner alleging retaliation activities. NLRB initiated too great: 39 "The action here, coercive forbidden engage in, direct tendency frustrate people appears imposes impede resort thwart congressional action. system implementation country's policies dependent 366 40 recognizes, ante, 635, implicates important particular, prevent and, generally, influence willingness position bargaining. whether—as Co.—there think whether—like struck Nash—this permit. 41 note outset highly unusual interpret reference However, passed five weeks another, sometimes appropriate read pari materia. supra, 540-541, 1341-1342; 632-633. Nonetheless, distinct pieces address very concerns. Consequently, find protections extended unless expression Congress' intent do especially clear. available anything manner Unlike discussion 542-544, 1342-1343, comparable "finance" 'became Act,' 633 1905), mention subject disqualification. "draft bills" year examples what do. These bills "participating interested in. ." Board, Draft Bills Unemployment Compensation Pooled Fund Employer Reserve Account Types §§ 5(d)(1) (2), pp. 9, (1936). 42 One argue scant history, concluding utilize kind interferes constitute contemporaneous charged setting motion, considerable deference. Udall Tallman, 380 1, 16, 85 792, 801, 616 (1965) Power Reactor Development Electrical Workers, 367 396, 408, 1529, 1535, 924 (1961)). conclude enact sort kind. 43 Unfortunately, elaborate understanding permissible scope disqualification, determine be, consistent thought limits few years, deleted bills, explaining: 44 extending recommended conducting strike." Proposed Legislation Providing Public Offices, Memorandum 13, 56, (Nov.1940). 45 Insofar supports strikers, indicate anticipated can effectuate State's justified circumventing something accomplish employees—knowing resultant stoppage additional laid-off supported benefits—while sharing cost workers. 46 Where true, i.e., agree dues1 finance know sense Therefore, "[t]o strikers." Ante, 636-637. insofar plantwide plant," 637, words, denies 47 interpreted results financed dispute—so "foreseeable" made. necessarily Yet, Moreover, my view, led said "voluntarily" striker; unexplained equation wrong. 48 pervasive Consider asked vote collect If agrees off, receive possibility certainly extent, federally right. above, member's regard identical striker, reasonable willing conflict. consideration. nonstrikers, feels strongly enough loss off. coerced still dollars compensation.2 justification interference NLRA; offered none. thing showed created not. exceeds limitation, foundry contemplated vacate below remand question. Section 29(8) (MESA) provides: "(8) week individual's total partial progress establishment last employed, dispute, lockout, unit. subsection "(a) purposes following occurred: "(ii) participating amounts subparagraph." 421.29(8) Stat. 452, U.S.C. 157, part: "Employees self-organization, form, assist organizations, bargain collectively representatives choosing, concerted mutual aid protection. International Union, Automobile, Aerospace Agricultural Implement Workers America (referred text Union). Caterpillar Company recited were: '1. [To] [r]eview status effort. '2. revision UAW, '3. revisions Constitution relates fund, eligibility, matters related emergencies facing UAW.' 512-513, 624 amendments reads, pertinent 'Article 2(a) (new): Emergency Dues 'All current secretary union. 'Commencing eighth (8th) day 31, thereafter defined paragraph subsection, seventy-five cents ($3.75) Insurance follows: working straight ($3.00) twenty-one twenty-five ($21.25) ($3.00), eleven ($11.25). 'This schedule Executive thereafter, sum ($25,000,000). .' 472, 606. Baker Corp., 409 639, 653, 5, 297 387, 392, (1980) (emphasis 392. 520, 628. App. Juris. Statement 113a, 115a (decision Court). originally allowed Commission, hearing referee reversed MESC. referee's upheld 474-475, 608. appealed denial County Circuit Courts, affirmed it. Appeals disallowed claims, "financed" 29(8)(a)(ii) consequence. 74 Mich.App. 237, 254 granted disposed remanding proceedings. 387 (1980). infra, plaintiffs identify themselves plaintiffs' foundries. disputes, materials places employment, reduced, become operative. shown competent, material plaintiffs. affirm board's 'due progress' 29(8)." 661-662, 396. 666, 398. Ibid. board give separate 'financing,' applied matter successor, experience expertise act, reconsider, unique familiarity practical considerations sufficiently disputes." 668, 399. Second 493, 616. 478, 609 ("Since persons, obvious. lists circumstances Legislature holds unemployed"). "As recognize ploy. bargains contract doing, represents ratify 'coercion' resulting accord 'involuntary.' Applegate Palladium Publishing 95 299, 305; 290 128 (1980), adopt here: 'Action negotiated acts. effect, plaintiff [act] pursuant agreement.' "Any relieve contract-based actions. rule. involuntary." 499, 618-619. "A exists claimant's where, claimant finances proximity finds elements present (purpose, timing), 621-622. Accord, 500-501, 619. final aspect focuses issue. Since occur automotive production interrelated units produce component automobile, idles rely produced 'chain reaction' move 'up' 'down' line. presently engaged disputes. "In adduced included including portion met." 516-517, 626. 627 ("By standard, demonstrates unemployment"). 517-520, 626-628. precedes disbursement minimal 'by hand' level, forwarded SIF, distributed initial waiting period requirement." 521, 521-522, 541, "Before acted, still, part, project more. pioneer. Her 1931. introduced elsewhere, reach stage 1935, four (California, Massachusetts, Hampshire York) eve adoption others later year. statutes differed type, directed common end. 1936, twenty-eight fell line, eight passage law, inaction owing, lack sympathetic interest. Many alarm lest, laying toll industries, disadvantage compared neighbors competitors. House Report, 615, Congress, session, 8; 628, 11." 587-588, 891 statement presented, described arising "solely dues," Brief i, or, alternatively, lawfully employment," Juris.Statement i. carefully explained, excepts 627-628. approving disqualifications "special" Although, reasons stated text, overbroad limited really 1940 delete indicates includes ordinary sensible seriously organizational NLRA: effectively, able credible threat. This, turn, requires maintain ability effectively greatly impaired. typically every standing maintenance standard practice, would, matter, mean Such severely long-term capability organize wanted stake powerful incentive oppose namely, resources. consequently come pressure split smaller avoid conflicts—a contrary thrust pronounced industries integrated, likely non-strikers industries; precisely greatest combine organizations unified front. inconceivable affairs acceptable, absence concern somewhat alleviated requirement contribution.

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