Legal Document

404 U.S. 157 92 Supreme Court Reporter 383 30 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 341 ALLIED CHEMICAL & ALKALI WORKERS OF AMERICA, LOCAL UNION NO. 1, Petitioner,v.PITTSBURGH PLATE GLASS COMPANY, DIVISION, et al. NATIONAL LABOR RELATIONS BOARD, Petitioner, versus PITTSBURGH Nos. 70—32, 70—39. Argued Oct. 20, 1971. Decided Dec. 8, Syllabus A labor organization that was the exclusive bargaining agent for employees 'working' on hourly pay rates at one of respondent Company's facilities had negotiated with Company an employee health insurance plan in which retired participated. Upon enactment Medicare Union sought mid-term to renegotiate benefits employees. The Company, maintaining made program useless and retirees' were not a mandatory subject collective bargaining, stated it would offer each retiree monthly amount toward supplemental coverage. When, despite objections, offer, filed unfair practice charges National Labor Relations Board (NLRB). NLRB concluded guilty practices violation §§ 8(a)(5) (1) Act (NLRA) issued cease-and-desist order. held already as 'terms conditions employment' retirees themselves and, alternatively, active unit It also 'establishment fixed, additional option itself changed benefits' contrary 8(d) Act. Appeals Sixth Circuit disagreed refused enforce its Held: 1. Retirees' are not, within meaning NLRA, retirees. Pp. 163—176. (a) collective-bargaining obligation extends only employer's 'employees,' term 'employee' has ordinary meaning, i.e., someone who works another hire, excludes 165—171. (b) is limited 'employees' appropriate purpose bargaining. Retirees members represented by Union, because they no longer 'working.' Nor could be members, since lack substantial community interests unit. 171—175. (c) Even if industry over rights exists, disputed, cannot change law make into those not. 175 176. 2. remaining unit, although their own future retirement plans are. do 'vitally' affect current workers may reap including under same contract speculative insubstantial best. relationship asserted exists between behalf negotiation employees' equally too foundation base bargain. 176—182. 3. offering exchange withdrawal from unilateral 'modification' § Act, did constitute practice, related permissive rather than 183 188. 427 Federal Reporter, 2nd 936, affirmed. Mortimer Riemer, Cleveland, Ohio, petitioner Allied Chemical Alkali Workers America, Local Number Norton Judge Come, Washington, D.C., Board. Guy Farmer, respondents. Mr. Justice BRENNAN delivered opinion Court. 1 Under amended, subjects include pension employees,1 modification such constitutes practice.2 This cause presents question whether concerns, employees, but practice. Board, member dissenting, changes embraced them 177 N.L.R.B. 911 (1969).3 Board's order, 936 (1970). We granted certiorari, 401 907, 91 867, 27 804 (1971). affirm judgment Appeals. 2 * Since 1949, been representative Barberton, Pittsburgh Plate Glass Co.4 In 1950, group plan, which, orally agreed, participate contributing required premiums, deducted benefits. continued unchanged until 1962, except improvement unilaterally instituted 1954 1959. 3 1962 agreed contribute two dollars per month cost premiums elected medical plan. parties this time 65 age. 1964 again negotiated, increase contribution four dollars, applicable retiring after date pensioners effective contract. however, might discontinue paying two-dollar Congress enacted national program. 4 November 1965, Medicare, program, enacted, 79 Statutes-at-Large 291, 42 Code KF62 1395 seq. still effect, responded March 1966 that, view, rendered non-duplication-of-benefits provision policy, stated, without negotiating any change, planning reclaim Medicare; cancel retirees; substitute payment three-dollar subscription fee coverage employee.5 5 acknowledged contractual right reduce contribution, challenged proposal done during 1959 negotiations pressing point, disputed Union's bargain advised upon further consideration decided terminate pensioners. instead write employee, premium withdraw Despite objections circulate 15 190 accept it. thereupon charges. 6 engage negotiations, regarded other reasoned 'retired statute purposes about *.' N.L.R.B., 912. Moreover, 'retirement status connection culmination product years employment.' Id., 914. Alternatively, considered 'bargaining 'within contemplation interest have Apparently support both theories, noted '(b)argaining established aspect labor-management relations.' 916. 918. Accordingly, ordered cease desist refusing collectively making adjustments first good faith Union. rescind, request, adjustment mail post notices.6 II 7 Section declares policy protect commerce 'by encouraging procedure protecting exercise full freedom association, self-organization, designation representatives choosing, terms employment 49 449, 29 151. To effectuate provides employer 'to refuse his provisions section' 9(a). 453, 158(a)(5). 8(d), turn, defines collectively' 'the performance mutual meet reasonable times confer respect wages, hours, 61 142, 158(d). Finally, 9(a) declares: 'Representatives designated or selected majority purposes, shall all pay, hours employment, 159(a). 8 Together, these establish collectively, 'with employment,' 'in purposes.' 'unit purposes' union represents. See, e.g., Mine America Pennington, 381 657, 666, 85 1585, 1591, 14 626 (1965); Wooster Division Borg-Warner Corp., 356 345, 78 718, 823 (1958); Packard Motor Car company 330 485, 67 789, L.Ed. 1040 (1947); Phelps Dodge Corporation 313 177, 192, 845, 851, 1271 (1941) (dictum); 146, 908, 1251 (1941). found fell constraints alternative theories. First, so 'term condition' employment.7 9 Appeals, contrast, 'that section constraint improvements Union.' F.2d, 942. court reasoned, first, '(r)etirement most companies, complete final severance employment. retirement, completely removed payroll seniority lists, thereafter perform services employer, paid restrictions activities, expectations re-employment,' id., 944; second, '(i)t repeatedly scope controls extent *. (And) certified composed presumably 945. For reasons follow we agree First. 2(3) provides: 10 'The particular unless subchapter explicitly states otherwise, individual whose work ceased consequence of, with, dispute obtained regular substantially equivalent 450, 152(3). 11 affirmed task determining contours 'has assigned primarily agency created administer Act.' Hearst Publications, 322 111, 130, 64 860, 88 1170 (1944). See 207, Int. Association Bridge, etc., Iron Perko, 373 701, 706, 83 1429, 1432, 646 (1963); E. C. Atkins Co., 331 398, 1265, 1563 (1947). But never immunized judgments judicial review respect. '(T)he determination specified persons accepted 'warrant record' basis law.' supra, U.S., 131, S.Ct., 861. 12 hold decision supported law. all, makes clear, concerned disruption arises interference 'workers'—not force. inequality power remedy man, disputes subjected employers Nowhere history there evidence ambit obligations statute. 13 contrary, legislative indicates stretched beyond plain embracing hire. sustained finding newsboys independent contractors. said broad language Act's definitions, reject conventional limitations conceptions 'employee,' leaves doubt applicability determined broadly, doubtful situations, underlying economic facts technically exclusively previously legal classifications.' 'must understood reference involved relationship.' 129, 860. reacted specifically excluding definition 'any having contractor.' House, proposed amendment, explained: 'An according standard dictionaries, courts it, understanding almost everyone, means case Incorporated *, merchants bought newspapers publisher hired people sell 'employees.' papers merchants, holding far reaching. must presumed when passed intended words used meanings act, new later, think up. law, always difference, big 'independent contractors.' 'Employees' wages salaries direct supervision. inconceivable Congress, authorized give every act whatever wished. On then, intends now, far-fetched meanings.' H.R.Rep. 245, 80th Cong., 1st Sess., 18 (1947) (emphasis added). 93 Cong.Rec. 6441—6442; H.R.Conf.Rep. 510, 32—33 1947 Taft-Hartley revision clear general principles ignored distinguishing Insurance 390 254, 256, 988, 989, 19 1083 (1968). Although Publications thus repudiated, approach totally discredited. cases resort considerations infuse meaning. But, House case. does workers; 16 decisions relied construing wide mark. enumerated 'unfair situations where applied initially terminated. Illustrative applicants registrants hiring halls—who place—as well quit gone out business policies 913 (citations omitted). Yet who, unlike here, force available hire least sense identified No cited, none our knowledge expectation 'employee.' position arising 302(c)(5) Management 157, 186(c)(5). 302 prohibits, inter alia, Subsection (c)(5) exemption payments trust fund 'for sole benefit employer' administered equal numbers word provision, construed 'current now retired.' Blassie Kroger 345 58, 70 (CA8 1965).8 anomalous ongoing fit 8(a)(5), while (§ 302(c)) administering create anomaly entitled explicit statutory duty 302(c)).' 915.9 17 rationale point. simply remain eligible funds conclusion compelled fact reading illegal contributions plans, expressly contemplates subsections (A) (C).10 comparable situation Furthermore, 8(a)(5). Contrary assertion, union's role administration different order duties agent. reasoning responsibilities dictate collectivebargaining allow tail wag dog.11 Second. accords appropriate' bargaining.' 9(b) goes 'decide whether, assure fullest exercising guaranteed subchapter, craft plant subdivision thereof 159(b). recognized determinations, accorded discretion. 132—135, 861—862; findings fact, evidence, conclusive. 10(e), 454, 160(e). powers determinations limits, 'oversteps law,' 491, 793, reversed. cause, addition included 'employees Employer's working rates, leaders Apart language, obviously 'who work' pay. temporary absence work, military duty, utterly destroy function read return. 20 event, properly joined 'As standard, comply requirement efficient 165, care self-organization (and) through choosing' duly respected. line standards, regards primary concern resolving issues together Ann.Rep. 39 (1950). Such mutuality serves coherence among necessary prevent functionally distinct minority being submerged overly large Kalamazoo Paper Box 136 134, 137 (1962). 21 Here, even if, found, common assuring latter's adequate, plainly share enough justify inclusion Pensioners' extend benefits, exclusion wage conditions, Incorporation limited-purpose constituency potential severe internal conflicts impair unit's ability disrupt processes risk overlooked occasion see improved favoring expense benefits.12 22 need rely assessment probable consequences conclude resulting inappropriate. sufficient warrant participation election Public Service New Jersey, 72 224, 229—230 (1947), example, stated: 23 'We considerable Employers, little expectancy resuming former believe presently service Employers. find ineligible vote election.'13 24 argues, pensioners' ineligibility dispositive membership franchise depend levels unit.14 W. D. Byron Sons Maryland, Inc., 55 172, 174—175 (1944), controlling 230 n. 10, merely vote, excluded clearly inconsistent rule principle deny voice selection representative.15 holdings compel 25 Third. become industrial alter conclusions neither nor members. so, reflects views management convenient topic negotiation.16 commonly most, suggested Fibreboard Products 379 203, 211, 403, 233 (1964), reflect matter amenability process; determinative. Common III 26 nonetheless, unit? held, are, ground principally influencing value 915.17 'It uncommon single result size experience entire determine rates.' Ibid. Consequently, 'benefit enlarges thereby lower costs participant.' actual depends contingencies, inflation public adequately anticipate control. By establishing representing contingencies arise, can insure will survive passage time. This, contends, facilitates peaceful settlement plans. arguments insubstantial, withstand careful scrutiny. course, immutably fix list 220—221, 407—408 (Stewart, J., concurring); Richfield Oil 97 U.S.App.D.C. 383, 389—390, 231 717, 723—724 (1956). limitation against topics measured. terms, includes settle 342, (1958). normally matters involving individuals outside fall category, wholly excluded. 24, Inter. Teamsters, Oliver, 358 283, 297, 312 (1959), agreement trucking industry, minimum rental carriers truck owners drove vehicles carriers' place Without owner-drivers hence immune state antitrust laws, 'was integral establishment stable structure covered employee-drivers.' Drum, 368 370, 382—383 26, 82 408, 414, 360 (1962).18 Similarly, 215, 405, type 'contracting out' case—the replacement existing contractor similar employment—is As there, 213, 404, let piecemeal whereas here contracted out.' 28 urges Oliver provide governing cause. hand, distinguish unions threats, represent third parties. relevant here; third-party antagonistic compatible bargaining-unit vitally affects conditions' employment.19 disagree significance acknowledges brief, overall rate uncertain. Adding increases generally tends rate, pensioners, likely higher expenses, more offset effect. impact way hardly loss jobs threatened Fibreboard. Fibreboard, 'not encompass forms 'subcontracting' arise daily complex economy.' 405. surely less some contracting activities excepted mitigation uncertainty facilitation representation problematical. sure, part parcel compensation well-established guard subsumed obligation. theory, undertake just for, say, cost-of-living escalation clause. crucial difference. Having once advantageous forever bound view obliged negotiate again.20 free decide, income preferable greater certainty or, indeed, altogether. advancing therefore, assurance beneficiaries retire. buy hazardous improbable investment, clause contractually court. supra. find, accordingly, effect asserts 31 citation concluding otherwise. brief '(n)either help recognize today tomorrow—indeed, realization undoubtedly underlies widespread explains vigorous taken case.' accepting nowhere particle cited showing explanation lies 32 'classification concerning special expertise.' 189, Amal. Meat Cutters Jewel Tea, 676, 685—686, 1596, 1600, 640 (1965). application facts, ultimately decide enforce. affected neglected adverb Cf. Brown, 380 278, 292, 980, 839 IV 33 remains committed After defining meeting conferring 'where covering affecting commerce, mean party modify contract' timely notice party, (2) containing modifications,' (3) Mediation Conciliation territorial agencies existence 'dispute,' (4) continuation (of) (its) expiration *.'21 trial examiner ruled action given decline saw fit. rejected several possible ways adjusting 'modified' choosing them. urges, adopt examiner. resolve, was, prohibited 34 Paragraph requires proposing continue expiration. Viewed isolation rest preclude distinction "we guided sentence sentence, look whole object policy." Mastro Plastics 350 270, 285, 76 349, 359, 100 309 (1956) (quoting Boisdore's Heirs, How. 113, 122, 1009). Lion 352 282, 288, 77 330, 333, (1957). Seen light, embraces begins then mean' modifications terminations prohibited. introduced 'proviso' clause, 21, quite pari materia preceding definition. bangain alone, prescribes maintain duration agreement.22 35 emerges text confirms understanding. stems important theme stabilize agreements. Senate bill, particular, contained 301(a) prohibit federal jurisdiction suits violations. S. 1126, 301(a). bill violate agreement.' 8(a)(6), 8(b)(5). conference Senate's adopted relatively few changes. 34—35, 65—66. violations '(o)nce enforcement should left usual process Board.' 42. proscription midterm be, adherence terms. unfair-labor-practice remedies concerned, goal achieved favor customary procedures. Dowd Courtney, 502, 510—513, 519, 524—525, 483 36 point specialized promoting compliance. termination set paragraphs designed regulate facilitate warfare. Thus, desiring serve written confer, notify mediation conciliation necessary, meanwhile relations. accurately described aim 284, 'seeks bring agreements interrupting flow production goods 37 If correct, draw fits purpose. agreeing subject, parties, naturally, When term, facilitating accord irrelevance demonstrated procedures 8(d). (2), modifications.' meaningless statutorily term. notification referred paragraph meaningless, all.23 beside requiring breach contract, proceeding.24 38 Affirmed. 40 DOUGLAS dissents. Black-Clawson 210 523 (CA6 1954) General Motors 179 221 (CA2 1950); Cross 174 875 (CA1 1949); Inland Steel 170 247 (CA7 1948). Scam Instrument 394 884 1968). Cf., Huttig Sash Door 377 964 1967); Contract Industries, 158 454 (1966). Katz, 369 736, 1107, adhered in: Carbide Corp.-Linde Div., L.R.R.M. 1585 (1971); Westinghouse Electric 1548 (1970); Hooker 75 1357 direction as: 'all limestone mine salaried supervisors (Emphasis supplied.) recertified 1970, description rates. Hospital provided automatically social security annuitant over. Medical optional period, person. violated 8(a)(1), framed accordingly. 8(a)(1) interfere restrain, coerce in' 7, 452, 158(a)(1), 157. However, derives alleged misconduct separate issues. below seems were. 944 14. Board's, way. said: 'For above, 'underlying facts' persuade us them.' 911, Garvison Jensen, 355 487 (CA9 1966); 688, Int') Bro. Teamsters Townsend, 1965). 501(3) legislation 161, 142(3). 302(b) 302(c), context discussion latter intended. exemption: money thing (employee) representative, families dependents *: Provided, That dependents, hospital care, pensions death injuries illness occupational activity foregoing, unemployment life insurance, disability sickness accident insurance; (C) providing annuities therein express phrase introductory adds argument materia. Not way, 'would frequently interject welfare troublesome threshold proposals agreement, renegotiation, not.' nothing precludes question' posited functions organizations accustomed addressing. argues disadvantage individually union. assumes one-way street favor. assumption, doubt, opinion, 917, declining take question. Compare Elgin, E.R. Burley, 325 711, 1282, 89 1886 (1945), rehearing, 327 661, 66 721, 90 928 (1946), balance constituents, preferred Recent Developments, 68 Mich.L.Rev. 757, 766—767, 772—773 Young 1174 adheres decisions. Indeed, informed conducted following 4, theory withheld certain were, Haw. Hawai‘i KFH45 A2 Pacific KF135 P2 Wasson 105 (1953). subsequently abandoned. Post Houses, 161 1159, 1160 1172 '(e)mployees 9(a), '(r)epresentatives establishes controversy. Both committees reported Wagner pains explain functioning sanctioned philosophy democratic institutions. carefully reviewed etablishes groups prohibition discrimination H.R.Rep.No.972, 74th 18—20 (1935); S.Rep.No.573, 13—14 (1935). coupled history, enfranchised. say develop regulations Board-conducted elections. committee indicated 'make publish rules conduct elections therein.' 20. may, withhold ballot eligibility date. Member Zagoria explained dissent below, 'provides administrative cutoff convenience conducting elections, padding abuses.' 919. contends record barren experience. case, officially noticed. exist validate holdings. dealt extended here. legitimate accordance intent contracts 915. undeniable. breaches 301 Managment 156, 185. Upholsterers' Int'l, North AFL-CIO American Pad Textile 372 1967). presented enforceable, compulsory availability employees.' That, again, true. countless expenditures concededly supervisors' dividends, impact. sweeps brush. suggest expenses costs. method accounting, suitable distinction. is, like discussed Specifically, 294, 304: '(The constitutes) frontal attack problem thought threaten maintenance basic inadequacy owner up excess driver's bears close relation labor's efforts improve vital carrier's employed drivers; inadequate progressive curtailment motor carrier-owned service.' turns interests. Other considerations, business, important. 217, 406 concurring). consider what, any, be. employer. Nothing Brotherhood Railroad Trainmen Howard, 343 768, 1022, 96 1283 (1952), contrary. Howard use racial reach conjecture. Cox, Duty Fair Representation, Vill.L.Rev. 151, 157—159 require affirmatively non-bargaining account bona fide whom represent. bargains agrees—the protection. principles, vested altered pensioner's consent. Note, Col.L.Rev. 909, 916—920 retiree, moreover, changed. Smith Evening News Assn., 371 195, 200—201, 267, 270—271, 246 (1962); Lewis Benedict Coal 361 459, 470, 80 489, 495, 442 (1960). reads full: section, thereunder, execution incorporating reached requested either concession: modification— '(1) sixty days prior thereof, event contains date, modification; '(2) offers modifications; '(3) notifies thirty dispute, simultaneously therewith State Territorial mediate conciliate Territory occurred, time; '(4) continues resorting strike lock-out, period whichever occurs later: imposed employers, (2)—(4) subsection inapplicable intervening certification individual, superseded 159(a) title, contrued discuss fixed before reopened Any engages sixty-day lose engaged sections 158—160 he reemployed employer.' coming conclusion, mistakenly Painters, 1385, 143 678 (1963), execute agreed. provision,' 'and Employers insist upset, undo, stabilizing effects meetings.' 680. sign employers' reaches refusal obstructed 'of dispute.' 2(9) 'labor dispute' controversy tenure association negotiating, fixing, maintaining, changing, seeking arrange 152(9). controversies definition, applied. appear arbitration dispute. relevance us.

Classification Label: 6