Legal Document

421 U.S. 616 95 Supreme Court Reporter 1830 44 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 418 CONNELL CONSTRUCTION COMPANY, INC., Petitioner,v. PLUMBERS AND STEAMFITTERS LOCAL UNION NO. 100, etc. Number 73—1256. Argued Nov. 19, 1974. Decided June 2, 1975. Rehearing Denied Oct. 6, See 423 884, 96 156. Syllabus Respondent union, representing the plumbing and mechanical trades in Dallas, was a party to multiemployer collective-bargaining agreement with contractors association. The contained 'most favored nation' clause, by which union agreed that if it granted more favorable contract any other employer would extend same terms all association members. picketed petitioner, general building contractor subcontracted work had no employees respondent wished represent, secure whereby petitioner subcontract such only firms current respondent. Petitioner signed under protest and, claiming violated §§ 1 2 of Sherman Act state antitrust laws, brought suit against seeking declaratory injunctive relief. By time this case went trial, secured identical agreements from selectively picketing those who resisted. District held (1) subcontracting exempt federal laws because authorized first proviso § 8(e) National Labor Relations (NLRA), exempts jobsite contracting construction industry statutory ban on secondary requiring employers cease doing business persons, (2) labor legislation pre-empted State's laws. Appeals affirmed. Held: 1. union's is not entitled nonstatutory exemption recognized Meat Cutters versus Jewel Tea Co., 381 676, 85 1596, 14 640, imposed direct restraints competition among subcontractors have resulted elimination based differences wages working conditions. Pp. 621-626. (a) indiscriminately excluded nonunion portion market, even their competitive advantages were derived efficient operating methods rather than substandard Pacific KF135 P2 623. (b) 'most-favored clause bargaining agreement, insuring subcontractor advantage matters covered gave respondent's effect creating sheltered market for controlled signatory contractors. 623-624. (c) Since did simply prohibit firm but respondent, complete control over offered empowered exclude certain refusing deal them. 624-625. 2. NLRA does shelter challenged since intended authorize are neither within context relationship nor limited particular jobsite. Here has never sought represent petitioner's or bargain behalf, makes claim be protecting men; jobsite; concededly solely as means pressuring Dallas recognize employees' representative. 626-633. 3. There indication Congress Taft-Hartley amendments later meant make remedies 'hot cargo' exclusive, thus precluding liability acts. 633-634. 4. subject use regulate activities aid organization risk substantial conflict policies central law. 635-637. 5. Whether Act, an issue fully briefed argued Court, must decided remand. 637. 483 Federal Reporter, 2nd 1154, 5th Cir., reversed part, affirmed remanded. Joseph KF105 F3 Canterbury, Jr., Tex., petitioner. David R. Richards, Austin, Mr. Justice POWELL delivered opinion Court. supported its efforts organize contractors, including sole objective compel agree letting subcontracts they parties agreement. disclaimed interest contractors' employees. In succeeded, seeks annul resulting illegal restraint claims immunity statutes argues regulation pre-empts * Local 100 representative workers Dallas. When litigation began, Mechanical Contractors Association group about 75 That members Association. 3 Connell Construction company It obtains jobs bidding work. followed policy awarding these basis bids, done both subcontractors. Connell's represented various trade unions. them behalf. 4 November 1970, asked union. demanded sign following agreement: 5 'WHEREAS, engaged industry, desire applying event accordance Section Management Act; 6 understood grant, seek, recognition collective contractor; 7 further limitation provided herein applies perform his own uniformly firms; 8 'THEREFORE, mutually respect falling scope at site construction, alteration, painting repair building, structure, works, (if) should aforesaid normal jurisdiction said shall executed, Union Journeymen Apprentices Plumbing Pipefitting Industry.' 9 refused stationed single picket one major sites. About 150 walked off job, halted. filed court enjoin violation Texas removed court. then protest. amended complaint 26 Statutes-at-Large 209, amended, 15 Code KF62 therefore invalid. declaration injunction force 10 submitted number Five others signed, waging selective compaign 11 49 452, added, 73 543, 29 158(e). also 78 L.R.R.M. 3012 (ND Tex.1971). Fifth Circuit affirmed, 1154 (1973), judge dissenting. 100's goal organizing legitimate toward On second issue, law San Diego Building Trades Council Garmon, 359 236, 79 773, 775 (1959). We certiorari petition. 416 981, 94 2381, 40 757 (1974). reverse question affirm ruling pre-emption. II 12 basic sources organized labor's 20 Clayton 38 731 738, 17 52, Norris-LaGuardia 47 70, 71, 73, 104, 105, 113. These declare unions combinations conspiracies trade, specific activities, boycotts, operation Hutcheson, 312 219, 61 463, L.Ed. 788 (1941). They do concerted action between nonlabor parties. Mine Workers Pennington, 657, 662, 1585, 1589, 626 (1965). recognized, however, proper accommodation congressional favoring free markets requires some union-employer accorded sanctions. 640 13 source strong eliminate success standardizing ultimately will affect price employers, goals could achieved acknowledged tolerance lessening supra, 666, 1591; Tea, 692 693, 1603—1604 (opinion White, J.). clearly require, freedom impose employ Thus, while allows accomplish acting unilaterally, e.g., Federation Musicians Carroll, 391 99, 88 1562, 460 (1968), offers similar protection when restrain market. Allen Bradley Electrical Workers, 325 797, 806—811, 65 1533, 1538—1541, 89 1939 (1945); Cox, Antitrust Laws—A Preliminary Analysis, 104 U.Pa.L.Rev. 252 (1955); Meltzer, Unions, Collective Bargaining, Laws, 32 U.Chi.L.Rev. 659 used support campaign. conditions methods. Curtailment efficiency necessary workers. Moreover, positive value strive protect. Association, though suit, relevant determining promised might organize. giving contractual right insist given competitor, guaranteed give unaffiliated Association.1 Subcontractors stood benefit extension organization, method chose sheltering outside 100. restriction subjects unrelated wages, hours, 16 Success exacting power access firm; prohibited agreements. Such result significant adverse effects consumers—effects For example, thought interests served having fewer competing available work, refuse marginal firms. Cf. supra. Or, well-defined geographical jurisdiction, 'traveling' able create enclave local closed Bradley, This record contains evidence anything many possible.2 legal, successful campaign reduce unionized face But immune sanctions legal. several made ineligible compete kind anticompetitive effects, actual potential, follow naturally contravenes degree justified policy, cannot 18 can argument case, whatever contexts, magnitude included lawful U.S., 664—665, S.Ct., 1590, 689—690, 1601—1602 J.); id., 709—713, 732—733, 1614, 1616, 1626 1627 Goldberg, offer coercive III 19 nonetheless contends obtained explicitly allowed construction-industry defer NLRA. majority declined decide holding 'exclusive jurisdiction' NLRB. F.2d, 1174. held, courts may questions emerge collateral issues suits independent remedies, laws.3 conclude allow type straightforward: 'an relating painting, structure work.'4 covers 'to works.' Therefore, says, comes proviso. responds arguing despite unqualified language proviso, relationship; is, intend permit approach 'stranger' obtain binding face, suggests limitation. interpreted light setting circumstances surrounding enactment: 21 'It 'familiar rule, thing letter statute yet statute, spirit intention makers.' Holy Trinity Church States, 143 457, 459, 511, 512, 36 226.' Woodwork Mfrs. Assn. NLRB, 386 612, 619, 87 1250, 1255, 357 (1967). 22 part legislative program designed plug technical loopholes 8(b)(4)'s prohibition activities. broadly proscribed using achieve economic coercion 8(b)(4). Assn., 634, 1262. provisos exempting garment industries added Conference Committee apparent compromise House bill agreements, Senate bill, trucking industry.5 Although garment-industry detailed explanations Houses,6 explained bare references 'the pattern bargaining' industry.7 seems, been adopted partial substitute attempt overrule Court's decision NLRB Denver & Council, 341 675, 71 943, 1284 (1951).8 Discussion 'special problems' applicable Trades, focused problems project, close jobsite.9 situation, allowing relation contrast latitude afford 8(b)(4)(B) otherwise indicate broad organizational weapon. keeping limitations, 23 'a measure pertaining community there, secondary-objective concerning nonjobsite different other.' 638 639, 1265 (footnote omitted). 24 Other suggested serves narrower function: 25 '(T)he purpose section alleviate frictions arise men continuously alongside site.' Drivers 695 124 U.S.App.D.C. 93, 361 547, 553 (1966). 692—693, 953, (Douglas, J., dissenting); Essex County Vicinity Carpenters 332 636, (CA3 1964). 27 suggest related policies. men. apparently protect regard, jobsites working. applied themselves leaving open possibility employed Nor trying project picketed. admits way area 28 If we authorizes jobsite, our almost unlimited weapon.10 enlist bring pressure subcontractors, long recited performed somewhere. proviso's serve deliver highly improbable result. One aims 1959 limit 'top-down' compaigns, weapons regardless wishes employees.11 accomplished enacting 8(b)(7), restricts primary recognitional picketing, tightening 8(b)(4)(B), prohibits most tactics campaigns. sections. special consideration campaigns 8(f), 'pre-hire' careful safeguards preserving workers' rights decline representation. history accompanying 8(f) strikes extract prehire unwilling employers.12 30 limits undermined seriously construed seek large, vulnerable picketing. Absent clear leave glaring loophole restrictions organizing, read suggests.13 Instead, think authorization extends relationships problem, possibly common-situs well.14 31 Finally, sanctioned constructionindustry 8(e), exclusive. grounded 1947 amendments. rejected attempts repealing exemptions Acts, created instead.15 unfair practices 8(b)(4), drafted provisions preliminary injunctions recovery damages district courts. 10(l) NLRA, 453, 149, 160l, 303 158, 187. significance choice relevance whether preclude outlawed 1959. suggesting labor-law violations cases like present inconsistent remedial scheme NLRA.16 hold restricted obligates potential restraining ways IV 33 apply well. repeatedly interfere E.g., Motor Coach Employees Lockridge, 403 274, 91 1909, 473 (1971); Teamsters Morton, 377 252, 84 1253, 280 (1964); Oliver, 358 283, 297, (1959).17 creates 34 area, delicate. carefully tailored avoid employee delineating coverage adjusting themselves. Apex Hoisery Leader, 310 469, 60 982, 1311 (1940). State generally subjected process accommodation. take account all, totally balance policies.18 Permitting operate field frustrate wage earners, system regulating techniques. 35 Because procedures comprehensive, admit activity closely goals. Of course, 295—297, 304—305. governing factor policy. V Neither Connell, constitute restrains meaning Act. Accordingly, remand Act.19 37 Reversed DOUGLAS, 39 While N Dec. Immigration Nationality Decisions join STEWART, write emphasize what me, determinative feature case. Throughout litigation, maintained coerced into signing With so drawn, difficulty concluding conduct regulated far different, alleged conspired entering exclusionary Connell. An arrangement character condemned (1945), immunize abet manufacturers traders violating Act,' 810, 1540. Were conspiracy alleged, unquestionably relevant. 673, 1595, (1965) (concurring opinion); 737, 1606, (dissenting opinion). attempted show any, exclusively whom BRENNAN, MARSHALL join, 41 As effort peaceful induce None express disavowal intent activity, comprehensive pursuant 8(b)(4) 141, 158(b)(4), Similarly, governed unmistakably demonstrates 1959, selected great care occur. doing, private injured relief judgment before us. 42 period years, passage 19321 until enactment (the Act), 136, 1947, directed neutral, either law, least absence proof coercing furtherance group. 788; 1939. 'Congress abolished, purposes immunity, distinction 'immediate disputants' disputants stand 'in proximate employee. . ." 623, 1257, 357. 43 Hunt Crumboch, 821, 1545, 1954, found forcing freight carrier out protected beyond reach involved culminated compelling carrier's principal patron break discharge service. 'That lawful,' noted, 'this constitutional unlawful, too much organizations.' Id., 825 n. 1, 1547. Congressional concern abuses considerations TaftHartley which, things, specified activity. 1257. thrust provision forbid strike handle goods object him another person third party.' Carpenters' 98, 1011, 1015, 1186.2 condemning 'specific objectives,' ibid., deliberately engaging 45 12(a)(3) Hartley H.R. 3020, 80th Cong., 1st Sess., initially passed House, defined 'unlawful activities' include 'illegal boycott.' Legislative History Page 205 (hereinafter Leg.Hist. LMRA). 12(c) 'application proceeding involving unlawful.' LMRA 206—207. Education report bill: 46 'Illegal boycotts forms. Sometimes people place delaing .. Under (§ 12), called correct name, activities.' person, property, unlawful affecting commerce sue persons responsible injury recover damages. inapplicable heretofore industrial strife consequences lawlessness, matter how violent disputes became. Persons engage losing privileges act.' H.R.Rep.No.245, 24, 44, 315, 335. Senate, adopt House's removal choosing instead Public Welfare approved S. 1126, practice enjoined application Board. No remedy Committee. S.Rep.No.105, 413—414, 428. 48 Four Committee, although supporting 1126 reported felt stronger. 50, 456. particular, minority Senators proposed: 'An amendment reinserting making jurisdictional providing party. 50 'The proposes party) file temporary being heard. 51 amendment, furthermore, removes monopoly fix prices, allocate customers, restrict production, distribution, competition, purchase, sale, material, machines, equipment. existence combination see reason why employers.' 54—55, 460—461. 52 Senator Ball, four fact floor 'designed interpretation acts Hutchinson (sic) former Assistant Attorney General Thurman Arnold, he up monopolistic unions, sometimes own, 93 Cong.Rec. 4838, 1354.3 53 stating personally changes proposed Taft defeat Ball explaining resistance lead provide 4843—4844, 1365. thereafter defeated, 4847, 1369—1370, introduced proposal restore lose something money lost.' 4858, 1370—1371. 54 response Morse's virtually plain advocating 'Under boycott damage (treble) attorneys' fees. amount damages.' 4872—4873, 1398; 260 16, 1258, 280. Taft's Senate. 4874—4875, 1399—1400. 55 Conference, H.R.Conf.Rep.No.510, Sess. (House Managers' statement), 58—59, 562—563. 'clarifying changes,' 67, 571, House-Senate Conferees Houses authorizing Board 160(l), proposal, became 187.4 Corpenters 1186; outlaw remedied pursuing newly created, exclusive 303. 56 Contrary assertion opinion, ante, deliberate correct, noting 8(e)'s cover standing alone. 'technical loopholes' perceived threaten coerce neutral employer, directly through employees, where enter 8(e).5 At time, expanded sustained 8(e).6 short, effective allegedly 57 essence 'conspiring' ability subcontract, basis.7 If, today holds, constituted practice, 303(a), 187(a).8 303(b), 187(b). 'limited actual, compensatory damages,' 260, conduct, provable caused inability believes harmed damages; grants '(w)hoever property' organization's practice.9 58 there considerable materials indicating expanding restricting itself Board, Congress. 59 considering reform summer proposals Representative Hiestand California 'would solve attending unbridled exists operates country. My nature legislation, unions.' 105 12135, Labor-Management Reporting Disclosure 1507 LMRDA). Alger joined cosponsoring '(u)nion power' manifests 'restrictive fixing, new processes technological improvements, exclusion products forth deals (this aspect) power.' 12136, LMRDA 1507. explanation 8003 comply demand restrictive faced legal enforcing demand. consequent denial prices artificial limitations functions powers. merely placed equal footing groups society during fifty years prior Hutcheson decision.' 12137, LMDRA 1508. Landrum-Griffin 8400, 86th enacted 1959,10 contrast, secondary-boycott enforced remedy. 14347—14348, 1522—1523. Recognizing important difference, amend adding, additional title, anti-trust 8003. 15532—15533, 1569. once again stated individual '(e)nter arrangement—voluntary coerced—with cause product types practices.' 15533, 62 Griffin responded Alger's observing: 63 '(It) point bill) minimum bill. well mention it. 64 'There 'This truly pass. believe speak gentleman Georgia (Mr. Landrum), myself say add mentioned, I, one, oppose tried delicately body support.' 15535, 1571—1572. 66 rejected, 15853, 1685 (amendment Rep. Hoffman). protests 'does go enough, needs teeth, teeth going come form laws.' 15858, 1690 (remarks Alger); 15859—15860, 1691—1692 (adoption Landrum 8342, substituting lieu text thereof 8400 amended). 67 substantive construction-and 8(e). Amendments Minn.L.Rev. 257. change House-passed violate revised prohibitions. exposing liability. H.R.Conf.Rep. 1147, 934.11 68 Indeed, two after McClellan, whose committee hearings concentrated played role generating together five Senators, transportation already expressly 8(e).12 1961 69 sum, additions national judicial imposition 'independent remedies' Congress, less law,13 threatens upset management expressed policy.' 1258. 98—100, 1017; Mfrs.Assn. 619—620, 1254—1255. us seems inhibit offering contract. trial get terms, agent answered: 'No. says couldn't, desired, agent, ones 'Q. see. So that's—in words, you Contractors' sets your contractors; sir? 'A. true.' Tr. 45—46. connected unit, fact, theory relied enhancing implicit signed. 684—688, 1599—1601, 710 18, 1614 cf. Vaca Sipes, 171, 176—188, 903, 909 916, 842 (1967); Smith Evening News 371 195, 83 267, 246 (1962). provides: implied, ceases refrains agrees refrain handling, using, selling, transporting dealing entered hereafter containing extent unenforcible void: Provided, nothing subsection work: Provided further, ((4)(B)) 'any employer', commerce', person' producer, processor, manufacturer', jobber, manufacturer, contractor, premises jobber manufacturer performing parts integrated production apparel clothing industry: subchapter enforcement foregoing exception.' H.R.Conf.Rep.No.1147, 39—40 (1959), U.S.Code Cong. Admin.News, 2318. 17327 (1959) Sen. Kennedy); 17381 Sens. Javits Goldwater); 15539 (memorandum Reps. Thompson Udall); 16590 Kennedy Thompson). debates reproduced Pages 1377, 1385, 1576, 1708 17899 18134 Thompson); 1432, 1721. President Eisenhower's message recommending urged 'under circumstances, common employer.' S.Doc.No.10, (emphasis added). Various bills provisions, 1912—1915, provision. along linked 17333 (proposed resolution), 1383. parliamentary obstacle killed (B) survived. 17728—17729, 17901—17903, 1397—1398, 1434—1436. References preserve status quo (Sand Door), 1186 (1958), pending problem session. H.R.Rep.No.1147, 5, 39—40; 17900 (report agreement); 1433. 2643, committee. 17881 Morse); 15541 15551—15552 Elliott); 15852 Goodell); 20004—20005 (post-legislative remarks Kearns); 1425, 1577, 1588, 1684, 1861. contends, unsoundly think, favor. cites Los Angeles (B J Investment Co.), 214 N.L.R.B. 86, 1424 (1974), memorandum Counsel charges Plumbers (Hagler 16—CC—447 (May 1974). B approved, without comment, administrative judge's conclusion none project. invalid lack relationship. Counsel's Hagler plainly addressed argument—that pre-existing 6428—6429 6648—6649 McClellan); 6664—6665 14348 Griffin); 1079, 1175—1176, 1191—1192, 1523. 42; 10104 18128 Barden); 1289, 1715. taken view. Operating Engineers 542, 142 1132 (1963), enforced, 331 99 (CA3), cert. denied, 379 889, 161, (1964). noted above, 628-630, reflects considerations. treatment reports continue Danielson Joint 494 1230 (CA2 1974) (Friendly, voluntary foundation contention forbids industry. unnecessary consider alternative contention. 65—67 (1947); 4757, 4770, 4834 4874 (1947) (debates Ball's damages, NLRA). dissenting STEWART provides thereby recourse remedies. proposition relies upon 'considerable materials.' Post, 650. view, unpersuasive. place, 704(d), (e), 544—545. reject Representatives Hiestand, Alger, Hoffman repeal immunity. 650-654. Those proposals, broader Hiestand-Alger repealed concert organizations. entirely. extravagant hardly furnishes parties, existing McClellan proposition. Like reached vote. leaves consistent 909—915, good example. Vernon's Rev.Civ.Stat.Ann., Arts. 5152 5153 (1971), associate accept employment. Article 5154, referring preceding articles, 'Nothing repeal, diminish now trusts, pools monopolies.' prohibit, monopolies, pursuit business.' Tex.Bus. Comm.Code 15.02—15.04 (1968) V.T.C.A. addition permanent execution litigation. order January 21, 1971, executed contract—under protest—with March 28, 1971. reveals, occasion illegal, determine whether, 'labor dispute' anticipate resume enforce Before 1932 Duplex Printing Press Deering, 254 443, 172, 349; Bedford Cut Stone Cutters' 274 37, 522, 916. progeny overruled 70. Milk Wagon Drivers' Lake Valley Farm Products, Inc., 311 91, 100—-103, 122, 126—128, 63; 229—231, 235—237, 464—466, 467—469, 788. agents in, encourage refusal course employment use, manufacture, process, transport, goods, materials, commodities services, is: (A) self-employed transporting, ..' 141. 'shall (defining conduct), contract, combination, conspiracy, commerce, party, sale equipment.' 4757 (1947). 158—159, provided: '(a) only, is— '(1) person; '(b) Whoever property o(f) therefor 301 hereof controversy, cost suit.' 519, 542—543, agents: '(4)(i) services; (ii) threaten, coerce, '(A) (e) 158(b)(4). 303, 545, 158(b)(4) title. 185 title original state-court 620. lawsuit request stop contrary conclusion, 626-633, valid view Courts considered question, lawful. See, Orange Belt Painters 117 233, 328 534, 537; Laborers 323 422 (CA9); Northeastern Indiana Bldg. 148 854, denied grounds, 122 220, 352 696. seem necessarily specifically liability, unless intends return era judiciary frustrated design 'what public regard struggle demands.' 485, 183, 349 (Brandeis, dissenting). my invoke find ambit permissible utilize purely practice. subcontractor, still full range whatsoever affected ground aimed dealt very least, failed us—a answer. 708 9, 1607, 1613, hand, violates ignore illicit coercion, charge 158(b)(4)(B). 'unenforcible void,' obviously unavailing. proceedings leading began John 505, 1555, incorporating 505 Welfare. amendments, April 25, sent referred Labor. July 30, favorably week earlier 8401, bills, Griffin, respectively. voted August 13, inserted 1555 provisions. President. vii xi. debate recommended adoption complimented guiding expressing warned: '(W)e act knowledge Bill every problem. heart heart, sheer hands leaders due above-the-law antimonopoly 18132; 1719. 2(b)(2) McClellan's 2573, 87th part: 'Notwithstanding understanding, undertakes cease, from, purchasing, services distributor, supplier, handler, distributed territory Columbia, another, territories Columbia foreign nations, theDistrict 635-637, preempts

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