Document: 454 U.S. 404 102 S.Ct. 720 70 L.Ed.2d 656 CHARLES D. BONANNO LINEN SERVICE, INC., Petitionerv.NATIONAL LABOR RELATIONS BOARD et al. No. 80-931. Argued Oct. 13, 1981. Decided Jan. 12, 1982. Syllabus. Petitioner linen supply company was a member of an association formed to negotiate collective-bargaining agreements with respondent truckdrivers' union as multiemployer unit. When the and reached impasse in bargaining for proposed agreement, initiated selective strike against petitioner, most other members locked out their drivers, petitioner hired permanent replacements its striking drivers. Thereafter, notified that it withdrawing from association, refused sign agreement later executed by association. Meanwhile, filed present action, alleging petitioner's purported withdrawal unit constituted unfair labor practice. The National Labor Relations Board (Board) affirmed Administrative Law Judge's finding no unusual circumstances excused such withdrawal, ordered implement retroactively concluded between employers' refusal constituting practice violation §§ 8(a)(5) (1) Act (NLRA). Court Appeals enforced Board's order. Held : did not justify unilateral Pp. 417-419. (a) An is sufficiently destructive group but only temporary deadlock or hiatus negotiations. Permitting at would practical matter undermine utility bargaining. While interim separate were this case, initiate any right execute inconsistent duty abide results balance has struck terms purposes NLRA. 412-417. (b) Here, developed rule which although may deny employer particular economic weapon, does so interest proper pre-eminent goal maintaining stability 630 F.2d 25, affirmed. Sidney A. Coven, Boston, Mass., petitioner. Norton J. Come, Washington, C., N.L.R.B. James T. Grady, respondents Teamsters Local Union Justice WHITE delivered opinion Court. 1 issue here whether justifies employer's attempting commits 8(a)(1) (Act), 29 U.S.C. 158(a)(5) 158(a)(1), refusing association.1 First Circuit 25 (1980). Both recognized several Courts had previously rejected position on issue.2 We granted certiorari, 450 979, 101 1512, 67 813 (1981), resolve conflict among Circuits important question federal law. affirm judgment Appeals. 2 * factual findings Judge are undisputed. Petitioner, Charles Bonanno Linen Service, Inc. (Bonanno), Massachusetts corporation engaged laundering, renting, distributing linens uniforms. (Union) represents drivers helpers well those companies area. For years, been New England Supply Association (Association), 10 employers signatory contracts negotiated Association. On February 19, 1975, authorized Association's negotiating committee represent anticipated negotiations new contract. Bonanno's president became committee. 3 held sessions during March April. April 30, negotiators agreed upon contract, four days it. By May 15, according stipulations parties, over method compensation: demanded be paid commission, while insisted continuing payment hourly rate. 4 Several subsequent meetings failed break impasse. June 23, Bonanno. In response, Despite sporadic meetings, stalemate continued throughout summer. During period two met secretly Union, presumably effort reach settlement. These however, never level 5 all November 21, letter "withdrawing specific respect time because ongoing 25." Pet. for. Cert. 58. mailed copy revocation read phone representative. 6 Soon after putative ended lockout. It told wished continue took place December April, without participating. middle abandoned demand commission accepted offer revised wage With development, parties quickly dated 1976, given retroactive effect 18, 1975. 7 9, 29, informed consented considered bound settlement just reached. reply letter, denied 8 concluded, hearing, affirmed, ordering contract retroactively. supplemental decision, explained basis decision attempt withdraw untimely ineffective. Inc., 243 1093 (1979). II 9 standard judicial review case established NLRB v. Truck Drivers, 353 87, 77 643, 676 (1957) (Buffalo Linen). There, single responded Negotiations continued, claiming lockout violated rights under Act, then charges Board. claim, This turn reversed. That expressly authorize deal units lockouts context recognized. Nonetheless, "long antedated Wagner Act" become more common employers, course complying bargain "sought through match increased strength." U.S., 94-95, S.Ct., 646-647 (footnote omitted). Furthermore, debates Taft-Hartley amendments, Congress proposal limit outlaw offered "cogent evidence many industries multiemployer-bargaining vital factor effectuation national policy promoting peace strengthened collective bargaining." Id., 95, 647.3 Congress' intervene indicated intended leave specialized resolution conflicts arise situations, said: 11 "The ultimate problem balancing conflicting legitimate interests. function effectuate often difficult delicate responsibility, committed primarily Board, subject limited review." 96, 647. 12 Thus, Appeals' rejection justification acceptable maintain integrity accept response whipsaw too narrowly confined exercise discretion. 97, 648. 13 Multiemployer preferred mechanism industries,4 Buffalo predicted, raised variety problems requiring resolution. One critical concerns terminate arrangement. Until 1958, permitted both abandon even midst Bearing & Rim Co., 107 101, 102-103 (1953); Stamford Wall Paper, 92 1173 (1951); Morand Bros. Beverage 91 409, 413, 416-418 (1950), enf'd part grounds, 190 576, 581-582 (CA7 1951). But Retail Associates, 120 388 (1958), announced guidelines units. rules, reflect increasing emphasis units, permit party prior date set negotiation actually begin, provided adequate notice given. Once have commenced, if there "mutual consent" "unusual circumstances" exist. 395. 14 approach Associates courts,5 decisions will found where extreme financial pressures substantially fragmented.6 yet consensus circumstance justifying employer. After equivocating time, squarely circumstance. Hi-Way Billboards, 206 22 (1973). Fifth enforcement 500 181 (1974), since modified views now supports Board.7 Similar also overturned three Circuits. Beck Engraving 522 475 (CA3 1975); Independent Ass'n Steel Fabricators, 582 135 (CA2 1978); H. D., NLRB, 665 257, 105 LRRM 3070 (CA9 1980), cert. pending, 80-1498. again considering issued reaffirming withdrawal. Its sustained Circuit. III 15 agree voluntary nature neither forces into nor erects barriers At same sought further instrument limiting unilaterally reiterated view expressed Billboards As recurring feature process, "which almost cases eventually broken, either change mind application force." N.L.R.B., 1093-1094. "brought about intentionally one device further, rather than destroy, process." 1094. Hence, "there little warrant regarding rupture relation leaves free go own ways." Ibid. sees it, permitting bargaining.8 16 Of course, ground rules come being overnight. They evolved still evolving, employing expertise light experience, "conflicting interests" pursuit "national Linen, might different has, some us prefer done so. assessing significance dynamics precisely kind ruled should left cannot say current arbitrary contrary 17 If impasse, standing alone, warranting we more. grounds precipitate permits individual employers. consider possibility events sufficient withdraw. 18 example, Third followed justified Because juncture relations law, interpreted employer, entering advantage latter thought union's privilege executing mature simultaneously. drastically upset equilibrium name 19 reasons adhering telling. surely survive review. First, said strikes occur tactic necessarily associated Second, "vital" understand distinguishes "between contemplate adherence final unitwide thus antithetical clearly with, of, 1096. Sangamo Construction 188 159 (1971), Plumbers Steamfitters 323 (P. C. Mechanical Contractors), 191 592 arrived temporary: resulting "[I]n cases, early signers maintained vested outcome union-association negotiations, fragmented significantly weakened," 1096, justified. 20 hand, union, content expire execution executes "effectively destroyed unit," ibid., create circumstance" rules. Cf. Typographic Service 238 1565 (1978). escape binding agreement. 378 (Olympia Automobile Dealers Assn.), 1086 remaining can insist remain accordance original understanding. 21 therefore emphatically rejects proposition truly interim, agreements, distinguished separate, contracts, "inconsistent concept units." Although establish conditions employment pending renewed bargaining, including "equivalent stake" "resulting apply each signer agreement." Such arrangements "preclude withdrawn unit." concedes exert pressure fact join others lockout.9 event, balance, tend deter promote fragmentation they preserve mutual associationwide rests Court's admonition weapons strength. conclusion stability, major consideration Brown, 380 278, 85 980, 839 (1965), adequately obligation despite 23 case. Some Appeals, taking interests involved, legitimacy enforcing occurred executed. think itself within zone discretion entrusted Congress. enforced. IV 24 THE CHIEF JUSTICE, dissent, quite turns extent courts defer factors involved. He correct restating supra, 291, 988, "[r]eviewing obliged stand aside rubber-stamp affirmance administrative deem statutory mandate frustrate congressional underlying statute." JUSTICE suggest seeks illegitimate ends. he strive effective assessment impact goals accepted, plain consistent promotes purpose. candidly accepting nonetheless disputes what best serve goals. substitutes his views. finds "was 'temporary negotiations' claims; instead complete breakdown coupled prolonged lock-out." Post, 422.10 states, judgment, when remained long period, "withdrawal few facilitate 424. avers, "more [the industrial peace] allow force escalated warfare." 425. 26 right. There obviously room differing judgments, judgments strong issues before make clear. dissenting Justices substitute our resolve. unwilling do. monitor closely agency's involved role judiciary administering regulatory statutes enormously expanded work complex consuming. doubt subjecting Indeed, Linen. 27 constitute "arbiter sort use seeking gain acceptance demands," Insurance Agents, 361 477, 497, 80 419, 431, (1960), give "the general authority assess relative power adversaries process party's power," American Ship Building Co. 300, 317, 955, 966, 855 (1965). enter proscribed area, urging Instead, looked duty—to bargaining—in developing rule. 28 Brown disagreed following Maintaining key decision: reasoned prospect succeed breaking up fanciful." 284, 984. contrast action which, goal, carefully judgment. Affirmed. 30 STEVENS, concurring. 31 holding today impair freedom structure manner conduct opinion, I join, recognizes see ante, 412, notes "neither 32 mere bargains conjunction mean must group. requires that, negotiation, "have outset unequivocal intention action," representing employees "[have] formation delegation [have] assented entered group's representative." Weyerhaeuser 166 299, 299 (1967), enf'd, 130 U.S.App.D.C. 176, 398 770 (1968). test See, e.g., Beckham, 564 190, 192 (CA5 1977); Komatz Construction, 458 321 (CA8 1972); Hart, 453 215, 217 1971), denied, 409 844, 93 46, 34 84 (1972); Dover Tavern Owners' Assn., 412 725, 727 1969). Absent commitment simply reject See supra; Ruan Transport Corp., 234 241 instant questioned character participate negotiation. 33 preclude explicitly conditioning participation special design. Presumably, could refuse unless develop. condition; forced choose agreeing forgoing advantages own. Chief BURGER, whom REHNQUIST joins, dissenting. 35 affirms unit, drawn-out unproductive constitutes (5) (5). addition, indicates permissible unit.1 bases large deference limited, [not] immune examination reversal cases." 290-291, 987-988, artificial unwarranted imbalance weapons, show abject Today perpetuates unsupportable doing damages very protect—a great value unions employers.2 36 holds occurrence more, automatically trigger went my objections minimal. much stalemated six months, unit-wide kept away jobs five signs return table. "temporary negotiations" lockout.3 Nevertheless, 37 goes on, stating negotiates "interim" closed down crippled lockout, "divide conquer" coming allowing them resume operations full staff. competitors fully back business, ability resist demands becomes greatly—and unfairly—diminished. Unable withdraw, defense; submit fellow profit today's "to self-help collide." 647, 38 follow evenhanded Evening News 154 1494 sub nom. Detroit Newspaper Publishers Assn. 372 569 (CA6 1967). order denying necessary defense hardly living asserted—and mandated—commitment evenhandedness. 39 Maintenance management; "difficult responsibility" lies "limited review, absent: 40 "[T]he phrase 'limited review' [does] cases. . [W]here, here, fact, interests, '[t]he owed expert tribunal allowed slip inertia unauthorized assumption agency properly made Congress.' " 290-292, quoting 318, 967, 41 deferral advance enhancing uncritical rubberstamping condemned. 988. 42 Contrary conclusory statements, Court, who do equivalent stake promptly securing reasonable able operate hampered defensive lockout; covered natural prolonging deadlock, thereby competitive 43 accepts naked assertion "interim fragmentation." imagine event likely fragment successful whipsawing. Certainly reluctant encouraged Board—and Court—selfishly themselves used yield demands.4 44 Even lengthy illustrative. Bargaining decided cause immediate "disintegration" impetus ultimately table Linen's seen fostering hindering disruptive tactics. 45 Industrial peace, remembered, primary objective laws; tools try achieve benefit sides. appear futility, warfare. concerns, individually though efforts failed. forcing runs counter peace. 46 addition arguing barring enhances groups contends determinable support "Impasse" term art law; presence triggers consequences. decline further. Webb Furniture 366 314, 315 (CA4 1966). changes proposals Tex-Tan, 318 472 1963); Taft Broadcasting 163 Federation Television Radio Artists 129 399, 395 622 47 acquired considerable experience determining exists. supra. makes sense say, hand indeterminable momentous ascertainable stop changes. Moreover, nearly years dealing concept, ill-defined high presumed definite identify Unions entitled guidance. 48 contention "impasse 'brought parties,' asserts "permitting explains "precipitate less favorable expected." argument ignores basic element impasse: stalemate—a bargaining—occurs good-faith Crompton-Highland Mills, 337 217, 69 960, L.Ed. 1320 (1949); Cone Mills Corp. 413 445, Intentionally withdrawal—or available impasse—is Marine Shipbuilding Workers 320 615 1963), Bethlehem 375 984, 516, (1964); Herman Sausage 275 229 1960). ample means feigned 49 difficulty brief cessation gone No told, how lasts far apart remain, Employers compliance. alternative adopt Third, Ninth impasse.5 50 O'CONNOR, POWELL 51 introductory comments Part dissent. However, write separately believe advanced avoiding absolute positions adopted majority dissent JUSTICE. am convinced examine surrounding determine occurred, statements concerning effects respectfully 52 agrees "sufficiently withdrawal." identifying (2) brought (3) "eventually 1093, 1093-1094 are, impasses fit description. Others not. Unfortunately, having premise, chosen ignore "reasons" regardless duration, definition. is, calling efficient, contribute principled decisionmaking. provides excellent example result obtains applies analysis situation. 53 More lull here. withdrew November, deadlocked months. defines "temporary" inexplicably passage irrelevant something "hiatus" involved.1 54 Closely related broken forces. whether, withdrew, unsuccessfully utilized weapons: called strike; drivers; replacement drivers.2 arsenal these contained additional used, 55 suggested precipitated excuse third missing 56 existed definition impasse; situation point "significance bargaining" required analyze, label, facts occurs, afford 57 Neither invariably always conclusion, like rule" today, sweeps broadly. least accurate applied highly industry relies skilled workers counts heavily repetitive patronage. reaches produce powerful deadlock. push prompt dispute. Connell Typesetting 212 918 (1974). notion unfairly "succeed Likewise, affords advantage, fanciful. 58 Other affect instance, percent shatter effect. magic inheres word "interim," none "impasse." Identification "final" beginning, end, agreement's Yet, gives blanket approval agreement.3 Here too, require instance approve label. final, operates 59 "labor (1957). furthers goal. allows both, Section 8(d) 61 Stat. 142, § 158(d), relevant part: "[T]o collectively performance representative meet times confer good faith wages, hours, employment, written incorporating requested party, compel making concession. ." 141, 158(a)(5), declares "refuse representatives employees, provisions section 9(a)." 8(b)(3), 158(b)(3), organization 9(a), 143, 159(a), turn, specifies "[r]epresentatives designated selected appropriate purposes, shall exclusive Finally 2(2), 137, 152(2), "employer" includes "any person acting agent directly indirectly," "person" defined 2(1), 152(1), include "associations." 1978), 439 1130, 99 1049, (1979); Associated Shower Door 512 230 (CA9), 423 893, 96 191, 125 (1975); 1974); Fairmont Foods 471 1170 1972). case: "Multiemployer offers management labor. enables smaller 'on equal union' avoid 'the disadvantages nonuniform contractual terms.' Drivers 449, facilitates development industry-wide, worker programs otherwise unable provide. generally, encourages sides flexible attitude negotiations; explains, concessions 'without fear similar advantage,' act similarly dissatisfied receiving benefits win employers.' Brief, 10. Finally, concentrate resources efficiency effectiveness reduces strife." F.2d, 28. A recent survey (those covering 1,000 employees) 1,536 648 (42%) 3,238,400 agreements. Bureau Statistics, Dept. Labor, Bull. 2065, Characteristics Major Collective Agreements—January 1, 1978, p. 1.8 Custom Wood Specialties, 381 1980); Carvel 560 1030 (CA1 1977), 434 1065, 98 1240, 766 (1978); Central Plumbing 492 1252 Brotherhood Teamsters, 70, 470 509 1972), 414 821, 94 117, (1973); Johnson Sheet Metal, 442 1056 (CA10 1971); 725 1969); John Corbett Press, 401 673 1968). Southwestern Colorado Contractors 447 968 Spun-Jee 385 379 1967); (1974); Atlas Electrical 176 827 (1969); U. S. Lingerie 170 750 Machine Works, 635 1981), wisely weighed competing concerns. threat completely satisfied expected. temporarily replaced warfare, need stable, predictable acute weigh costs possible conduct. Brief Respondent 24-25. adopts language below: uneven per se 33. points disposal exerting pressure. engage working rejected, hire loss blunt stockpiling inventories, readjusting schedules, transferring plant another. desires. signing weaken association's determination demands, eventual gains, 205 677 (1973), (1975). 33, nn. 49. recognition whipsawing weapon persuasion 90, n. 7, 644, 7. "Whipsawing" describes tactics creates call or, face business usual operational. theory behind impaired seeing enjoying market fearing increase share expense irresistible demands. mode traditionally reaction small perhaps counsel stated oral argument, funds personnel small. conceded rule, endorsed prohibits years. places reliance tied misplaced. Tobey Fine Papers Kansas City, 245 1393 (1979), 659 841, 2221 (representing 42% consent "it ipso facto [withdrawn] proves causes 1395. Shopmen regard continues submitted dispute stipulated indicate step take. adopting takes urged until resulted fragmentation. Approval way encourage

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