Legal Document

406 U.S. 272 92 Supreme Court Reporter 1571 32 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 61 NATIONAL LABOR RELATIONS BOARD, Petitioner,v.BURNS INTERNATIONAL SECURITY SERVICES, INC., et al. BURNS Petitioner, versus BOARD Nos. 71—123, 71—198. Argued Jan. 13, 1972. Decided May 15, Syllabus Wackenhut Corp., a company that had provided plant protection service for Lockheed Aircraft Service factory, entered into collective-bargaining agreement with the Plant Guard Workers (UPG), union certified by National Labor Relations Board (NLRB) as representative of majority guards at after an NLRB election. A few months later, Wackenhut's contract expired, and it was succeeded Burns International Security Services, which knew agreement. employed 27 42 but refused to recognize UPG or honor agreement, denied any obligation bargain UPG. The found violated §§ 8(a)(5) 8(a)(1) Act failing refusing ordered abide terms 'give retroactive effect all clauses said (Wackenhut) and, interest 6 percent, make whole its employees losses suffered reason Respondent's (Burns') refusal honor, adopt enforce contract.' Appeals held exceeded powers in ordering executed Wackenhut. Held: 1. Where bargaining unit remained unchanged hired new employer were represented recently agent, correctly implemented express mandates 9(a) employer, Burns, incumbent union, Pp. 277—281. 2. While successor employers may be bound they are not substantive provisions negotiated their predecessors agreed assumed them. John Wiley & Sons, Incorporated Livingston, 376 543, 84 909, 11 898, distinguished. 281—291. 3. NLRB's order monetary restitution Burns' cannot sustained on ground committed unfair labor practice inilaterally changing existing conditions employment. no previous relationship outstanding employment, so did change employment when specified initial basis would hire inaugurated plant. 292—296. 441 Federal Reporter, 2nd 911, affirmed. Norton Judge Come, Washington, D.C., Board. Gordon Atlantic Gregory, Detroit, Mich., Union, America. Charles G. Bakaly, Jr., Los Angeles, Cal., Mr. Justice WHITE delivered opinion Court. 1 (Burns), replaced another Corporation (Wackenhut), previously services (Lockheed) located Ontario Airport California. When began providing security service, guards; them been refused, however, America (UPG) (Board) election exclusive less than four earlier. issues presented this case whether representing appropriate could observe signed voluntarily assumed. Resolution turns great extent precise facts involved here. 2 * five years before took over task. On February 28, 1967, changeover guard employers, selected unit. March 8, Regional Director these employees, April 29, three-year contract. 3 Meanwhile, since one-year provide due expire June 30, called bids from various companies supplying services, both submitted estimates. At pre-bid conference attended informed bidders Wachenhut's won certified, there existence between union. App. 4—5, 126.1 then accepted bid, 31 notified assume responsibility July chose retain guards, brought 15 own other locations. 4 During June, supplied membership cards American Federation Guards (AFG), contracts locations, become AFG members work receive uniforms otherwise, 'could live with' recognized theory obtained card majority. 12, demanded filed charges, responded challenging appropriateness denying bargain. 5 Board, adopting trial examiner's findings conclusions, 8(a)(2) Act, 49 Statutes-at-Large 452, amended, 140, 29 Code KF62 158(a)(2), 158(a)(1), unlawfully recognizing assisting AFG, rival UPG; 8(a)(1), 158(a)(5), filing UPG.2 challenge § unlawful assistance finding sought review determination observed pre-existing Board's enforced insofar related bargain, Both petitioned certiorari, maintaining position contract, we granted petitions, though declined propriety unit, question Number 404 822, 99, 30 (1971). II 7 We address first alleged duty doing is well return specific courts alike observe. Section amended Management 1947, makes 'to refuse collectively representatives his subject section 159(a) title.' provides '(r)epresentatives designated purposes collective such purposes, shall . ..' Because itself imposes issue charging representative. 8 examiner regional director bargaining. defined '(a)ll full-time regular part-time (Burns) performing duties determined 9(b)(3) (National Relations) Lockheed, Airport; excluding office clerical professional supervisors, Act.' This affirmed Appeals, here because pretermitted our limited grant certiorari. 9 found, inter alia, 'had employ former employees,' already expressed choice short time before. therefore have arose force perform same tasks place worked past. 10 without revision, conclusions respect see setting aside. In before, agent identical It undisputed relevant regard aware certification circumstances, unreasonable conclude represent still reasonably entertained good-faith doubt about fact. stemmed hiring recent certification. has consistently mere ownership employing industry 'unusual circumstance' affect within normal operative period if management preceding employer. Downtown Bakery 330 921, 925 (CA6 1964); McFarland, 306 219, 221 (CA10 1962); v, Auto Ventshade, Inc., 276 303, 307 (CA5 1960); Lunder Shoe 211 284, 286 (CA1 1954); Armato, 199 800, 803 (CA 1952); South Carolina Granite Co., 58 N.L.R.B. 1448, 1463—1464 (1944), sub nom. Blair Quarries, 152 25 (CA4 1945); Northwest Glove 74 1697, 1700 (1947); Johnson Ready Mix 142 437, 442 (1963).3 goes saying, course, entitled upset what should established soliciting representation thereby committing guilty That holding challenged imperative situation viewed shired whom Board-certified See Gissel Packing 395 575, 609, 610—616, 89 1918, 1937, 1938—1941, 23 547 (1969). 12 wholly different operational structure practices differed those Wackenhut, longer one.4 Likewise, agent,5 much oral argument.6 But where remains little faulting implementation view several appeals, agree courts. Zayre 424 1159, 1162 1970); Tom-A-Hawk Transit, NLRB, 419 1025, 1026—1027 (CA7 1969); S. Kresge 416 1225, 1234 220. III 13 does follow, way agreed. 8(d) expressly 'does compel either party proposal require making concession.' Congress interfere free bargaining7 preferred device, voluntary arbitration, imposition compulsory means avoiding terminating disputes. report accompanying 1935 Senate Committee Education stated: 14 'The committee wishes dispel possible false impression bill designed agreements permit governmental supervision terms. must stressed carry reach essence decide proposals made satisfactory.' S.Rep.No.573, 74th Cong., 1st Sess., (1935). immediately noted fundamental theme legislation: '(The Act) whatever. .. opportunity negotiation accredited likely promote industrial peace bring adjustments attempt compel.' Jones Laughlin Steel 301 1, 45, 57 615, 628, 81 L.Ed. 893 (1937). also Insurance 343 395, 401—402, 72 824, 828, 96 1027 (1952); Local 357, Intern. Broth. Teamsters, etc. 365 667, 676—677, 835, 840—841, (1961). 16 8(d), 158(d), policy statutory mandate, enacted 1947 feared 'the present gone very far, guise determining bargained good faith, up judge concessions counterproposals he make. (U)nless writes law guides process further seek control more agreements.' H.R.Rep.No.245, 80th 19—20 (1947). 17 history reviewed detail given controlling Haw. Hawai‘i KFH45 A2 K. Porter 397 90 821, 146 (1970). There Court, while agreeing adamantly dues checkoff, intending frustrate consummation erred provision: 18 '(W)hile power negotiate, contractual provision 19 'It anomalous indeed hold prohibits relying sole evidence bad-faith bargaining, permits dispute. remedial under broad, carrying out policies itself. One freedom U.S., 102, 108, S.Ct., 823, 826 (citations omitted). 20 These considerations, evident explicit language legislative laws, underlay prior decisions, until now that, although Rohlik, 145 1236, 1242 n. (1964); General Extrusion 121 1165, 1168 (1958); Jolly Giant Lumber 114 413, 414 (1955); Slater System Maryland, 134 865, 866 (1961); Matter ILWU (Juneau Spruce), 82 650, 658—659 (1949), enforced, 189 177, Alaska 291 (CA9 1951), aff'd grounds, 342 237, 235, 275 (1952). As case, 'In none successorship cases ever reached result. always merely predecessor's union.'8 F.2d, 915. 21 departed argues mandate continuity asserts stability relations will jeopardized face uncertainty gap bargained-for loss advantages gained negotiations, unless assumed, matter federal law, obligations Recognizing principles absence consent, notes 550, 914, 898 (1964), declared 'a ordinary contract' is, rather, outline common particular industry. predecessor disappeared merger successor, arbitrate obligated contends factors emphasized Wiley, peaceful settlement conflicts 'protection (of) (against) sudden relationship,' id., 549, treated exactly continued protecting 22 do find circumstances context suit proceeding 8(d). decision '(t)he preference national arbitration substitute tests strength contending forces' only arbitrate, 'construed policy,' survived left arbitrator, judicial review, ultimate which, any, surviving Id., 551, Wiley's accommodation endorsement arbitral disputes warrant commits honors involve suit; nor arbitrate. Rather, claim even perfectly clear intention assuming suggests open-ended obligation. Its narrower dealt occurring against background state embodied general rule situatins corporation liable disappearing corporation. N.Y. Stock Law (1951); W. Fletcher, Private Corporations, 7121 (1961 rev. ed.). Here sale assets, dealings whatsoever Burns. contrary, competitors work, each bidding Lockheed. purchased nothing became financial obligations. enough commanded 9(a). consideration insufficient implying fact 24 failed heed admonitions case. Preventing strife important aim legislation, chosen unions totally subordinate goal. impasse reached, strikes lockouts occur. parties need result Government compulsion having imposed upon will. Here, notice consent it. source largely intact past year. Nothing actions, indicated 'allowing themselves unable violate premise based—private procedure alone, official actual 826. old serious inequities. potential willing take moribund business can changes corporate structure, composition force, location, task assignment, nature supervision. Saddling contained impossible discourage inhibit transfer capital. hand, small unwilling large economically successful firm. congressional manifest enable negotiate deems appropriate, allow balance advantage set economic realities. Strife occur honored correspond relative parties. 26 raise problms, circumscribed seemingly follow deemed dischargeable accordance grievance thereof.9 replace except permitted. Given relationship, contract's wages, seniority rights, vacation privileges, pension retirement fund benefits, job provisions, assignments like devolve successor. Nor commit 8(b)(3) modification effective expiration date agreement.10 might inherited accrued discharged transferred. '(A) acquire liabilities appear contract.'11 Finally, despite doubts union's during bar election, Ranch-Way, 183 116 (1970).12 For above reasons, applicability rule.13 many cases, advantageous rather turmoil. Also, variety involving merger, stock acquisition, reorganization, assets purchase, properly Cf. Oilfield Maintenance 1384 (1963). Such not, ensue predecessor, instant cited supra, 284. accordingly aside rested conclusion required IV 28 follows requiring aside.14 note director's charge instituting asserted '(o)n Respondent unilaterally changed wage rates, hours overtime differentials swing shift graveyard shift, .,' 113, stated successor-employer includes negative injunction refrain wages benefits expired. respect, successor-employer's generally 8—9. statement consistent subsequent institute least employees' Overnite Transportation 157 1185 (1966), 372 765 4), cert. denied, 389 838, 88 59, 101 (1967); Valleydale Packers, 162 1486 (1967), 402 768 5, 1968); Michaud Bus Lines, 171 193 (1968); Emerald Maintenance, 188 139 Thus, paid rate lower otherwise view, restore lost so-called unilateral change. supra; supra. Although concerning requested so, violation condition consulting difficult understand how term inferred. extended ordinarily instances plans him initially consult fixes situations, full complement represents 159(a). example, mature late June. quite rejected overtures true offered apparent. If request completed faith offers rejected, initiated opening practice. Katz, 369 736, 745, 1107, 1113, 230 (1962); Fitzgerald Mills 313 260, 272—273 (CA2) 375 834, 47, 64 (1963); Southern Coach Body 336 214, 217 1964). circumstances. Affirmed. REHNQUIST, THE CHIEF JUSTICE, BRENNAN, POWELL join, concurring 71 123 dissenting 33 studiously avoids using 'successorship' concluding affirms based entirely doctrine. N Dec. Immigration Nationality Decisions believe stretched concept beyond limits proper application, neither imposing concur 71—123 dissent 34 158(a)(5). defines representatives, 159(a), establish status one methods discussed (1969), binds 'successor.' concludes facility who facility, never showing representation. difficulty analysis. 35 First, mathematically demonstrable performance True, record us indicate negotiations obviously whatever remaining views asked, asked. Instead, concluded 'successor' alone 36 second problem Court's reasoning relies approval support true, notes, equally clearly dependent stipulation union.1 reasons declining belief single colorable claim. Unlike consisting location. difference transferring another, temporary permanent basis. numerous jobsites California; administrative jobsite separate numbers together. 37 says unit; preserved point here; major leading conclusion, solely doctrine successorship. designation prevail demonstrate error order. order—the 38 independent nonetheless sustainable, all, Wackenhut.2 unusual instead purchasing merging direct competition careful analysis admittedly imprecise indicates rights employee independently affairs sacrificed needlessly application 39 aptly field 'shrouded somewhat impressionist approaches.'3 form impose clause latter's employees. applied appeals 304 Makela Welding, 387 40, 46 1967), course conduct engaged 1945), remedy Pipe Foundry 398 544 1968). consequences subjected certain burdens similarly situated subject. 40 decisions exhibit train application. authority proposition rests part relations, concomitant avoidance presumably continuity. Colten, 105 179 1939); 1025 1969). examination, nore accurately described successorship, finding. 41 Other guiding principle 'employing industry' essentially ownership. Tempest Shirt Mfg. 285 Alamo White Truck Service, 273 238 1959). Under approach relating examined sufficient number remain doubted vary some essential determine importance factual combinations permutations call bases transformation employer's results substitution legal entity, leaves significant elements business. there: 43 objectives policy, reflected rightful prerogative owners rearrange businesses eliminate balanced relationship. transition organization most eased avoided claims continue resolved forces,' 914. 44 considerations favoring relationships limits: 45 'We every enterprise survives. above, lack substantial identity something without, acts involved.' conflicting implications portions suggest measure entity continues use tangible intangible used They doctrine, carried limits, runs counter well-established law. Industrial goal Act. again sacrifice system arbitration.4 Agents, 361 477, 488, 80 419, 426, 454 (1960): 47 mainstream reviewing orders, fixing collectively, concerned insuring table attitude (good faith). apart standard conduct, intended wide latitude unrestricted regulate solution differences.' 48 And other. Conceivably granting insist lessen risk strife. plainly purchase price curtailment freely natural tension constraints right 'independently employers.' An ability compete market affected, negotiates Aside influence jof presents cost factor market.5 commitment requires constraints. reasonable expectations disappointed incapable being remedied rational cease business, chooses anti-union animus. Textile Union Darlington 380 263, 85 994, 827 (1965). refuse, covered regarded significant. examples permissible remedy, notwithstanding disappointment legitimate principle, expanded. 50 speaks 'ownership enterprise' bringing play undertaken enunciated there, logically naked shifting group disregarding notion connotes enterprise, change; side equation, deal it, expected performed 51 Phrased way, accords accorded doctrines nonlabor-related claimants entity. Nonlabor-related situations protected assumption resulting self-interest contracting participating laws merged (see, e.g., New York (1951), supra), bulk sales States.6 latter give nonlaborrelated creditor claim, property pass implication type degree claiming 52 Cases principles, purchases Interstate 65 453 269 1971); entire 219 partnership operates 1939). have, two taken Tri State 132 U.S.App.D.C. 368, 408 Assn. Machinists, District Lodge 94 239, 1135 (1969).7 53 rigid prior-existing environment whose connection latter, tend produce sort. produced agents preserve. caution extending banner peace, step entities Holmes Hudson County Water McCarter, 209 349, 355, 529, 531, 828 (1908), summarized way: 54 'All declare absolute logical extreme. Yet neighborhood founded, strong reached.' 55 acquired asset, intangible, assignment vigorous opposition. think Following Lincoln Police, 103 (1971), saying: 56 'Respondent, moreover, operated enterprise. operating capital, uniforms, vehicles, equipment, occupied premises Industrial. Additionally, indication carryover supervisory personnel Respondent.' To situation, attendant import unwarranted rigidity labor-management relations. fortunes competing inevitably ebb flow, currently production orders expense wish away best interests ultimately served movement. inherent expanded urges somehow 'labor environment' comes belonged situs, irrelevant analysis, controlling. Lockheed's operations. effect, saddled, competitors, disadvantageous unduly favorable time. By token, benefited, 'sweetheart' From viewpoint recipient dissatisfaction stimulate desire contractors. E.g., 76 Lab.Rel.Rep. relation attenuated here, attenuated, authorized 59 say mesh Angeles actions commands regulation governing principles. addition element component weighed workforce 'accreted' existence. See, Food Employers Council, 399 501 Galvanizing 168 (1967). Had inquiry determinations justified facility. 60 applying complaints absolutely mold fashioned precluded year original 144, 159(c)(3). am far down road, substantially undercut guaranteed executive later admitted unfair-labor-practice status, certification, adn meeting. 105. finding, thus narrows behalf predecessor. absent find, therefore, signatory thereto, failure maintain violative Sections 9(c)(3) NLRA, 159(c)(3), '(n) o directed subdivision twelve-month valid held.' 595, 599 14, 1932, same, carries almost conclusive presumption time, usually Brooks 348 96, 98—99, 75 176, 178—179, 99 125 (1954). After period, rebuttable Celanese America, 95 664, 672 (1951). complete turnover particularly ruled accretion McGuire Humble Oil Refining 355 352 (CA2), 384 988, 86 1889, 1004 (1966). infra. unimpressed differences operations: approved case: 'continuation types product lines, departmental organization, functions.' nationwide organizations; facility; functions responsibilities similar predecessors; finally, perhaps significantly, commenced total 42.' 915 (1971) (citation somewhat, meant Wackenhut: confront submits winning bid cf. Chemrock 151 1074 However, declines 8(a)(3) K.B. Young's Super Markets, 377 463 (CA9), 841, 71, England Tank Industries, 302 (CA1), 371 875, 83 147, Piasecki 280 575 (CA3 1960), 364 933, 380, Tri-State 167 933 mod. (1968). Further restrictions seem infra, 1582 1583. 'Q. (counsel Union), argued, hadn't (employees Wackenhut), employee, same. 'Mr. Come (for NLRB). go far. don't you in— Do majority? Come. wouldn't majority, number. unit.' Tr. Oral Arg. 64—65. Two exceptions reluctance wartime, Exec.Order 9017 (1942), occasion, railroad industry, 77 132, 122. 'national emergency' disputes, however. Goldberg, Obligations Successor Employer, 63 Nw.U.L.Rev. 735, 742—743 decertified, succeeding administer demand yet Seating 106 250 (1953); Farmbest, 154 1421, 1453 1454 (1965), enf. 370 1015 (CA8 1967); Modine Grand Association 216 326 1954). board overturn 'long standing' Dynamics 184 vast specify procedures choosing available jobs, approximately 92% limitations discharge. Collective Bargaining Negotiations Contracts 40:1, 60:11 (BNA 1971). theory, fired going through applicable procedures, v,. Strong, 393 359, 541, 544, 546 (1969); Hutting Sash Door 964, 968—969 1967). provides, part: '(W)here covering affecting commerce, mean terminate modify desiring termination modification— '(1) serves written proposed sixty days thereof, event contains date, modification; '(2) meet confer purpose negotiating containing modifications; '(3) notifies Mediation Conciliation thirty dispute, simultaneously therewith Territorial agency mediate conciliate Territory dispute occurred, time; '(4) resorting strike lock-out, whichever occurs later: organizations paragraphs (2)—(4) subsection construed discuss fixed reopened 158(d). Doppelt, Companies: Limits Options Raises Some Problems, DePaul L.Rev. 191 contract-bar 'reasonable duration,' three years. Cable 1123 (1962). Also defense refusal-to-bargain charge. 1384, 1387 Hexton Furniture 111 (1955). Prior barred requesting 413 1165 MV Dominator, 1514 Moreover, Concrete Hawaii, 128 720 (1960). permitted non-assuming Randolph Rubber 496 (1965); Mitchell Standard 140 civilian contractor undertook maintenance Air Force base. year, predecessors. emphasizing impact Contract 1965, 79 1034. considered presenting justifying exception rule; '(t)his hazards enforcing annual rebidding normally produces identity. encourage arms'-length whenever expect awarded next amicus strongly inconsistent misreading 1965. Brief AFL—CIO Amicus Curiae entirety, to: '1. Cease desist from: '(a) Refusing request, above-described '(b) adopt, '(c) Assisting '(d) Interfering choosing. '(e) manner interfering with, restraining, coercing exercise join assist engage activities '2. Take following affirmative action necessary effectuate Act: Withdraw withhold recognition Bargain understanding embody Honor, Respondent, Post Ontario, California, operations copies attached hereto 'Appendix.' Copies notice, furnished Region 31, representative, posted receipt thereof maintained consecutive conspicuous places, including places notices customarily posted. Reasonable steps insure altered, defaced material. Notify Director, writing, Recommended Order comply herewith.' 'While broader pursuant agreement.' Trial Examiner's decision, 22. 'Trial Examiner: hearing. stipulation, place, Director's conducted course. .' Proceedings 68. emphasis, ante, 275—276, aiding supports cease-and-desist directing stop practices, 243, 1135, 1139 (1969) (Leventhal, J., concurring). 'Except isolated instances, compel, allow, come 'compulsory arbitration." Jones, Compulsion Consensual Arbitration, Va.L.Rev. dealing ranging establishment fact-finding boards, creation over-all mediation tribunal, waiting periods. (W)e feel warranted recommending legislation.' S.Rep.No.105, speech Senator Taft, debate Taft-Hartley Cong.Rec. 3835—3836, Amalgamated Street, Elec. Ry. Motor Employees Wisconsin Employment 340 383, 21, 366, Accounting Office cost-plus-fee subcontract NASA, unions, evaluated NASA varying costs generate. Uniform Commercial 6—101 6—111. upheld, court bidder transit transchise.

Classification Label: 6