U.S. Supreme Court, (June 03, 1957)
Docket number: 385
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US Code - Title 29: Labor - 29 USC 152 - Sec. 152. Definitions
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U.S. Court of Appeals for the 2nd Cir. - Staten Island Rapid Transit Operating Authority, Petitioner, v. Interstate Commerce Commission and United States of America, Respondents. System Federation No. 1, Railway Employees Department, Afl-Cio, Etc., Intervenors and Plaintiffs-Appellees, v. John G. Deroos, Etc., Et Al., Defendants-Appellants. Brotherhood of Locomotive Engineers, Et Al., Plaintiffs-Appellees, v. Staten Island Rapid Transit Operating Authority, Et Al., Defendants-Appellants., 718 F.2d 533 (2nd Cir. 1983) Petitioner, v. Interstate Commerce Commission and United States of America, Respondents. System Federation No. 1, Railway Employees Department, Afl-Cio, Etc., Intervenors and Plaintiffs-Appellees, v. John G. Deroos, Etc., Et Al., Defendants-Appellants. Brotherhood of Locomotive Engineers, Et Al., Plaintiffs-Appellees, v. Staten Island Rapid Transit Operating Authority, Et Al., Defendants-Appellants.
U.S. Supreme Court CALIFORNIA v. TAYLOR, 353 U.S. 553 (1957) 353 U.S. 553
CALIFORNIA v. TAYLOR ET AL. CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE SEVENTH CIRCUIT. No. 385. Argued April 2, 1957. Decided June 3, 1957. The Railway Labor Act applies to the State Belt Railroad, a common carrier owned and operated by the State of California and engaged in interstate commerce; and, notwithstanding the fact that the Railroad's employees are state employees appointed under the state civil service laws, the National Railroad Adjustment Board has jurisdiction over claims based on a collective-bargaining agreement between the Railroad and its employees which conflicts with the state civil service laws, as does the Railway Labor Act itself. Pp. 554-568. (a) Federal statutes regulating interstate railroads, or their employees, have consistently been held applicable to publicly owned or operated railroads, though they do not refer specifically to public railroads as being within their coverage. Pp. 561-563. (b) Nothing in the legislative history of the Act indicates that it should be treated differently from such other federal railway statutes, insofar as its applicability to a state-owned railroad is concerned. Pp. 563-564. (c) A different result is not required by the fact that, in certain other federal statutes governing employer-employee relationships, Congress has expressly exempted employees of the United States or a State. Pp. 564-566. (d) The fact that the Act's application will supersede state civil service laws which conflict with its policy of promoting collective bargaining does not detract from the conclusion that Congress intended it to apply to any common carrier by railroad engaged in interstate commerce, whether or not owned or operated by a State. Pp. 566-567. (e) By engaging in interstate commerce by rail, California has subjected itself to the commerce power of Congress, and Congress can regulate its relationships with the employees of its interstate railroad. P. 568. 233 F.2d 251, affirmed. [Page 353 U.S. 553, 554] Herbert E. Wenig, Assistant Attorney General of California, argued the cause for petitioner. With him on the brief were Edmund G. Brown, Attorney General, Richard S. L. Roddis, Deputy Attorney General, and Edward M. White. Burke Williamson argued the cause for respondents. With him on a brief was Jack A. Williamson for Taylor et al., respondents. Philip C. Wilkins filed a brief for the California State Employees' Association, as amicus curiae, in support of petitioner. Solicitor General Rankin, Assistant Attorney General Hansen and Charles H. Weston filed a brief for the United States, as amicus curiae, urging affirmance. MR. JUSTICE BURTON delivered the opinion of the Court. The question presented here is whether the Railway Labor Act of May 20, 1926, 44 Stat. 577, as amended. 45 U.S.C. 151 et seq., applies to the State Belt Railroad, a common carrier owned and operated by the State of California and engaged in interstate commerce. For the reasons hereafter stated, we hold that it does. The operations of the State Belt Railroad have been described by this Court in Sherman v. United States, 282 U.S. 25; United States v. California, 297 U.S. 175; and California v. Latimer, 305 U.S. 255. It parallels the San Francisco waterfront, serves wharves and industrial plants, and connects with car ferries, steamship docks and three interstate railroads. It is a common carrier engaged in interstate commerce and files tariffs with the Interstate Commerce Commission. For over 65 years, the Belt Railroad has been owned by the State of California. It is operated by the Board of State Harbor Commissioners for San Francisco Harbor, composed of three Commissioners appointed by the Governor. [Page 353 U.S. 553, 555] Its employees number from 125 to 255 and are appointed in accordance with the civil service laws of the State. These laws prescribe procedures for hirings, promotions, layoffs and dismissals, and authorize the State Personnel Board to fix rates of pay and overtime.[Footnote 1] On September 1, 1942, the Board of State Harbor Commissioners entered into a collective-bargaining agreement with the Brotherhood of Locomotive Firemen and Enginemen and the Brotherhood of Railroad Trainmen as the representatives of the Belt Railroad's operating employees. This agreement established procedures for promotions, layoffs and dismissals. It also fixed rates of pay and overtime. Those procedures and rates differed from their counterparts under the state civil service laws. The collective-bargaining agreement conformed to the Railway Labor Act and was observed by the parties at least until January 1948. At that time, a successor Harbor Board instituted litigation in the state courts of California in which it contended that the Railway Labor Act had no application to the Belt Railroad, and that the wages and working conditions of the Railroad's employees were governed by the State's civil service laws rather than by the agreement. This contention was rejected by a local trial court and by the California District Court of Appeal. State v. Brotherhood of Railroad Trainmen, 222 P.2d 27. It was, however, accepted by the Supreme Court of California, with one justice dissenting, 37 Cal. 2d 412, 422, 232 P.2d 857, 864, certiorari denied, 342 U.S. 876. Shortly thereafter, five employees of the Belt Railroad instituted the present action in the United States District Court for the Northern District of Illinois against [Page 353 U.S. 553, 556] the ten members of the National Railroad Adjustment Board, First Division, and its executive secretary. The employees alleged that they had filed with the First Division, pursuant to 3, First (i), of the Railway Labor Act, claims relating to their classifications, extra pay and seniority rights under the agreement. They charged that the five carrier members of the Division had refused to consider these claims on the ground that the Board was without jurisdiction, because, under the above decision of the Supreme Court of California, the Belt Railroad was not subject to the Railway Labor Act. The employees alleged that this refusal created an impasse in the ten-member Division and they sought a court order requiring action on their claims. The United States, answering on behalf of the First Division and its executive secretary, supported the complaint and prayer for relief. The carrier members, answering through their own attorneys, opposed the complaint, as did the present petitioner, the State of California, which intervened as a party defendant. The District Court granted California's motion for summary judgment and dismissed the complaint. 132 F. Supp. 356. The Court of Appeals reversed. 233 F.2d 251. It held that the Railway Labor Act applied to the Belt Railroad, and remanded the cause to the District Court with directions to enter a decree granting the relief sought. We granted certiorari to resolve the conflict between the United States Court of Appeals and the California Supreme Court as to the applicability of the Railway Labor Act to a railroad owned and operated by a State. 352 U.S. 940.[Footnote 2] We invited the Solicitor [Page 353 U.S. 553, 557] General to file a brief as amicus curiae and in doing so, he urged that the Railway Labor Act was applicable to the State Belt Railroad. The Railway Labor Act of 1926, 44 Stat. 577, evolved from legislative experimentation beginning in 1888.[Footnote 3] The evolution of this railroad labor code was marked by a continuing attempt to bring about self-adjustment of disputes between rail carriers and their employees. To this end, specialized machinery of mediation and arbitration was established. The 1926 Act - unique in that it had been agreed upon by the majority of the railroads and [Page 353 U.S. 553, 558] their employees[Footnote 4] - incorporated practically every device previously used in settling disputes between carriers and their employees. These included (1) conferences between the parties; (2) appeal to a Board of Adjustment; (3) recourse to the permanent Board of Mediation; (4) submission of the controversy to a temporary Board of Arbitration; and (5) the establishment of an Emergency Board of Investigation appointed by the President. Dissatisfaction with the operation of this legislation led to its 1934 amendments. 48 Stat. 1185.[Footnote 5] One of the most significant changes was the creation of the National Railroad Adjustment Board composed of equal numbers of carrier representatives and representatives of unions national in scope. The Board was divided into four divisions, each with jurisdiction over particular crafts or classes and their disputes. 3. This arrangement made available a National Board to settle disputes in case the carrier and its employees could not agree upon a system, group or regional board. The National Board was given jurisdiction over "minor disputes," meaning those involving the interpretation of collective-bargaining agreements in a particular set of facts. Either party to such a dispute could bring the other before the Board in what [Page 353 U.S. 553, 559] was, in fact, compulsory arbitration. Brotherhood of Railroad Trainmen v. Chicago River & I. R. Co., 353 U.S. 30. Provisions were made for the enforcement of a Board order against a carrier in a United States District Court. 3, First (p). Section 2, Fourth, of the 1934 amendments insured to railroad employees the right to organize their own unions and the right of a majority of any craft or class of employees to select the representative of that craft or class. Section 2, Ninth, authorized the newly created National Mediation Board to hold representation elections and to certify the representative with which the carrier must deal. Section 2, Fourth, provided that the employees shall have the right to bargain collectively through representatives of their own choosing. On numerous occasions, this Court has recognized that the Railway Labor Act protects and promotes collective bargaining. Virginian R. Co. v. System Federation No. 40, 300 U.S. 515, 548-549, 553; Switchmen's Union v. National Mediation Board, 320 U.S. 297, 300, 302; Order of Railroad Telegraphers v. Railway Express Agency, Inc., 321 U.S. 342, 346-347; Steele v. Louisville & N. R. Co., 323 U.S. 192, 202; Railway Employes' Dept. v. Hanson, 351 U.S. 225, 233, 235.[Footnote 6] If the Railway Labor Act applies to the Belt Railroad, then the carrier's employees can invoke its machinery established for adjustment of labor controversies, and the National Railway Adjustment Board has jurisdiction over respondents' claims. Moreover, the Act's policy of protecting collective bargaining comes into conflict with the rule of California law that state employees have no right to bargain collectively with the State concerning [Page 353 U.S. 553, 560] terms and conditions of employment which are fixed by the State's civil service laws.[Footnote 7] This state civil service relationship is the antithesis of that established by collectively bargained contracts throughout the railroad industry. "[E]ffective collective bargaining has been generally conceded to include the right of the representatives of the unit to be consulted and to bargain about the exceptional as well as the routine rates, rules, and working conditions." Order of Railroad Telegraphers v. Railway Express Agency, Inc., supra, at 347. If the Federal Act applies to the Belt Railroad, then the policy of the State must give way.[Footnote 8] ". . . a State may not prohibit the exercise of rights which the federal Acts protect. Thus, in Hill v. Florida, , the State enjoined a labor union from functioning until it had complied with certain statutory requirements. The injunction was invalidated on the ground that the Wagner Act included a `federally established right to collective bargaining' with which the injunction conflicted." Weber v. Anheuser-Busch, Inc., 348 U.S. 468, 474. [Page 353 U.S. 553, 561] Under the Railway Labor Act, not only would the employees of the Belt Railroad have a federally protected right to bargain collectively with their employer, but the terms of the collective-bargaining agreement that they have negotiated with the Belt Railroad would take precedence over conflicting provisions of the state civil service laws.[Footnote 9] In Railway Employes' Dept. v. Hanson, 351 U.S. 225, 232, involving 2, Eleventh, of the Railway Labor Act, which permits the negotiation of union-shop agreements notwithstanding any law of any State, we stated that "A union agreement made pursuant to the Railway Labor Act has, therefore, the imprimatur of the federal law upon it and, by force of the Supremacy Clause of Article VI of the Constitution, could not be made illegal nor vitiated by any provision of the laws of a State." We turn now to the applicability of the Railway Labor Act to the Belt Railroad. Section 1, First, of that Act defines generally the carriers to which it applies as "any carrier by railroad, subject to the Interstate Commerce Act . . . ." (Emphasis supplied.) The Interstate Commerce Act, 24 Stat. 379, as amended, 49 U.S.C. 1 (1), applies to all common carriers by railroad engaged in interstate transportation. The Belt Railroad concededly is a common carrier engaged in interstate transportation. It files its tariffs with the Interstate Commerce Commission, and the Commission has treated it and other state-owned interstate rail carriers as [Page 353 U.S. 553, 562] subject to its jurisdiction. See California Canneries Co. v. Southern Pacific Co., 51 I. C. C. 500, 502-503; United States v. Belt Line R. Co., 56 I. C. C. 121; Texas State Railroad, 34 I. C. C. Val. R. 276. Finally, this Court has recognized that practice. United States v. California, 297 U.S. 175, 186. See also, New Orleans v. Texas & P. R. Co., 195 F.2d 887, 889. With the exception of the Supreme Court of California's holding in State v. Brotherhood of Railroad Trainmen, 37 Cal. 2d 412, 232 P.2d 857, federal statutes regulating interstate railroads, or their employees, have consistently been held to apply to publicly owned or operated railroads. Yet none of these statutes referred specifically to public railroads as being within their coverage. In United States v. California, supra, the United States sought to recover a statutory penalty for the State's operation of this Belt Railroad in violation of the Safety Appliance Act, 27 Stat. 531-532, as amended, 45 U.S.C. 2, 6. That Act applied to "any common carrier engaged in interstate commerce by railroad . . . ." (Emphasis supplied.) The State contended there, as it does here, that the Act was inapplicable to the Belt Railroad because a federal statute is presumed not to restrict a constituent sovereign State unless it expressly so provides. This Court said that this presumption "is an aid to consistent construction of statutes of the enacting sovereign when their purpose is in doubt, but it does not require that the aim of a statute fairly to be inferred be disregarded because not explicitly stated." 297 U.S., at 186. See also, California v. United States, 320 U.S. 577, 585-586; Case v. Bowles, 327 U.S. 92, 98-100. The Court then held unequivocally that the Safety Appliance Act was applicable to the Belt Railroad. "We can perceive no reason for extending it [the presumption] so as to exempt a business carried on by a state from the otherwise applicable provisions of an act of Congress, all-embracing [Page 353 U.S. 553, 563] in scope and national in its purpose, which is as capable of being obstructed by state as by individual action." 297 U.S., at 186. Likewise, three courts have ruled that the Federal Employers' Liability Act, 35 Stat. 65, as amended, 45 U.S.C. 51, the coverage of which corresponded to that of the Safety Appliance Act, was applicable to public railroads. Mathewes v. Port Utilities Commission,