Federal Circuits, 6th Cir. (July 12, 1982)
Docket number: 80-5290
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US Code - Title 29: Labor - 29 USC 160 - Sec. 160. Prevention of unfair labor practices
U.S. Supreme Court - NLRB v. Katz, 369 U.S. 736 (1962)
U.S. Supreme Court - Steelworkers v. American Mfg. Co., 363 U.S. 564 (1960)
U.S. Supreme Court - Steelworkers v. Warrior & Gulf Nav. Co., 363 U.S. 574 (1960)
U.S. Court of Appeals for the 6th Cir. - Planned Parenthood v. Taft (6th Cir. 2006)
Vance D. Miller, St. Louis, Mo., Russel H. Saunders, C. Alex Rose, Louisville, Ky., for respondents-appellants.
Daniel J. Roketenetz, Raymond Neusch, N.L.R.B., Cincinnati, Ohio, Herbert Segal, Irwin Cutler, Louisville, Ky., Joseph Norelli, N.L.R.B., Ellen A. Farrell, Washington, D.C., for petitioner-appellee.Before KEITH and JONES, Circuit Judges, and PHILLIPS, Senior Circuit Judge.PHILLIPS, Senior Circuit Judge.This is an appeal from an order granting a preliminary injunction pursuant to § 10(j) of the National Labor Relations Act as amended, 29 U.S.C. § 160(j).These proceedings grew out of charges filed with the National Labor Relations Board by Seafarers International Union (SIU or Union) that the appellants have engaged in numerous unfair labor practices.Between February 20 and May 6, 1980, the General Counsel of the Board issued by the Regional Director two complaints and notices of hearing against appellants and an order consolidating the two cases, charging violations of §§ 8(a)(1), (2), (3), and (5) of the National Labor Relations Act. The charges included: interference with employees' union activities; discrimination against SIU members in hiring; encouragement of employees to file decertification petitions or to join another Union; and unilateral repudiation of the Union hiring hall and Union representative access provisions of the collective bargaining agreement.After receiving permission from the Board, the Regional Director brought this action in district court and sought a preliminary injunction pursuant to 29 U.S.C. § 160(j) to preserve the status quo during the pendency of the proceedings before the Board. Following an evidentiary hearing, Chief District Judge Charles M. Allen granted some, but not all, of the relief sought by the Board and entered an order granting the following preliminary injunction on July 25, 1980:PRELIMINARY INJUNCTIONThis action, having come on to be heard on the motion of petitioners for a preliminary injunction pursuant to Section 10(j) of the Labor Management Relations Act, 1947, as amended, and the case, having been tried before the Court without a jury, and the Court, having entered its findings of fact, conclusions of law and memorandum opinion, and being fully advised in the premises,NOW, THEREFORE, IT IS ORDERED AND ADJUDGED that pending the final disposition of the matters before the National Labor Relations Board, the respondents, American Commercial Lines, Inc., Inland Tugs Company, American Commercial Barge Line Company, and Mac Towing, Inc., their officers, captains, agents, supervisors, employees, attorneys or representatives be and they are hereby enjoined from interfering with employees when they try to process grievances and enforce contract provisions, or in a lawful manner express support for the union, and are hereby enjoined from refusing to permit duly designated union representatives to board respondents' vessels and are enjoined from refusing to use the union hiring halls as the exclusive source for new hires into the units described in Paragraph 13 of the petition.IT IS FURTHER ORDERED AND ADJUDGED that the motion to dismiss filed by American Commercial Lines, Inc. be and it is hereby overruled.IT IS FURTHER ORDERED AND ADJUDGED that this case shall remain upon the docket of this Court, and upon the final disposition by the Board of the matters pending before it, the petitioner shall cause this proceeding to be dismissed.The respondents filed a notice of appeal from the order granting the preliminary injunction. After the filing of the notice of appeal, the injunction was stayed by a series of stipulations of the parties. Later, the district court denied appellants' renewed motion to dismiss the injunction, but stayed the injunction pending approval by the Board of a finalized settlement stipulation, upon the condition that the appellants voluntarily abide by the terms of the injunction. The General Counsel of the Board did not approve the proposed settlement stipulation. The petitioner-appellee thereupon filed a motion in the district court to revoke the stay. Appellants responded with a motion "to dismiss or in the alternative suspend or modify and/or stay" the injunction. These two motions are still pending before the district court.We affirm the order of the district court granting the temporary injunction except as to American Commercial Lines, Inc. and Mac Towing, Inc., but remand the case for consideration of the motions now pending before the district court, and for further consideration of the motion of appellants to place time limits on the injunction (in accordance with Part IX of this opinion).* The case is before this court on the appeal of American Commercial Lines, Inc. (ACL), American Commercial Barge Line Company (ACBL), Inland Tugs Co. (ITC) and Mac Towing, Inc. (Mac Towing). The four appellants sometimes are referred to collectively in this opinion as the "employer."ACL is an intermediate holding company which owns all the stock of the other appellants. The parent corporation provides financial and administrative services to the other appellants. ACBL is the lead company of ACL's Inland Waterways Division Barging Group, and is engaged in providing towing services on the Mississippi and Ohio Rivers and their tributaries. ACBL operates, through ITC and Mac Towing, approximately 58 motor vessels. ACBL provides management for and controls the day-to-day labor relations of ITC and Mac Towing, as well as its own.SIU has had two long standing collective bargaining agreements covering the employees assigned to vessels used by ITC and its predecessors.1 One of the agreements covered deckhands, cooks and other "unlicensed" personnel; the other covered the engineers. At the time ACL purchased the assets of Mac Towing in August 1979, however, Mac Towing had an existing collective bargaining arrangement with another Union, the Inland Rivermen's Association (IRA), which was to be effective until 1982. After the purchase of Mac Towing, the obligations of its collective bargaining agreement with IRA were voluntarily assumed by the Employer.2There were two collective bargaining agreements between SIU and each of appellants except Mac Towing. They provided, inter alia, that the employer would hire only through the SIU hiring hall except in certain situations in which the SIU could not provide enough available and qualified members to satisfy ITC's needs; and that ITC would provide "access to the property and vessels of the Company for the purposes of contacting the employees."The basic dispute in this case centers upon these two provisions of the collective bargaining agreement. In granting the preliminary injunction, the district judge found that there was "reasonable cause to believe" that an unfair labor practice had been committed because the respondents had violated these two provisions of the agreement.Two incidents and the consequences arising therefrom precipitated the asserted breaches of the agreement. One incident grew out of an action by the Board. In an August 1979 decision, Seafarers' International Union, Atlantic, Gulf, Lakes and Inland Waterways District, AFL-CIO (American Barge Line Co. et al.), 244 NLRB 99 (1979), the Board found that certain provisions of SIU Shipping Rules which provided for hiring hall referrals on the basis of seniority violated the National Labor Relations Act. The Shipping Rules are incorporated by reference in the collective bargaining agreement between SIU and ITC.The second source of disagreement between SIU and the appellants involved the access to vessels provision of the collective bargaining agreement. Pursuant to this provision, SIU representatives boarded ITC vessels for a variety of reasons: to process employee grievances; to distribute literature; to hold meetings; to discuss the SIU with new employees; and to solicit new members.In the summer of 1979, appellants became concerned about an apparent increase in the amount and frequency of the visits of SIU representatives to vessels.In his Findings of Fact, Conclusions of Law and Memorandum Opinion, Judge Allen wrote:The weight of the evidence is to the effect that the parties had a collective bargaining agreement which expired on December 31, 1979. That agreement was between the Seafarers International Union of North America, hereinafter SIU, and ACL and all of its subsidiaries except for Mac, which had a collective bargaining agreement with IRA. There were two bargaining units in each subsidiary company; the first consisted of engineers and assistant engineers who were known as the license bargaining division, and the other unit consisted of deckhands, cooks, trainee engineers, and tankermen. The total number of employees in the collective bargaining units was between 550 and 600.The collective bargaining agreement provided that the company would allow duly authorized union representatives access to the property and vessels of the company for the purpose of contacting the employees. It also provided that the union representatives should be allowed such contact at any time, but that men at work should not be interfered with unless they were properly relieved, with the relief getting no extra compensation.The union hiring hall provision, Section 2 of the contract, provided that the company would secure all of its personnel through the hiring hall of the union, subject to the proviso that if the union could not fill the vacancies in ample time to prevent delays in the departure of the companies' vessels, then the company could obtain employees from any available source, and should notify the union within 3 days after such hiring.At some time prior to the expiration of the collective bargaining agreement, disputes arose between SIU and the respondents, with the exception of Mac, concerning both the access and the bargaining hall issues. The respondents took the position that SIU was abusing its right to access to the 58 boats which it and its subsidiaries operated on the Ohio and Mississippi Rivers and their tributaries. It, therefore, imposed certain conditions upon union representatives before they were allowed to board the vessels, and then proceeded to bar any access in October, 1979. In November, 1979, SIU filed suit in this District and obtained a temporary restraining order from Judge Thomas A. Ballantine, Jr., requiring respondents to allow union representative access to their vessels but denying injunctive relief as to the union hiring hall issue. Since December 31, 1979, it is undisputed that the respondents have not allowed any union representatives on the boats. Also, since that time no new collective bargaining agreement has been entered into between SIU and the respondents.In late August, 1979, a provision in the shipping rules which pertains to hiring halls was found to be unlawful by the Seafarers Appeals Board which had jurisdiction over the matter. The particular provision which was found to be unlawful pertained to seniority. Since the decision by the Seafarers Appeal Board, the respondents have steadfastly refused to use the union hiring halls which had been established under prior collective bargaining agreements with SIU.Shortly thereafter, and prior to expiration of the collective bargaining agreement, the Seafarers Appeal Board adopted the modified shipping rules which deleted the provision which had been found to be unlawful. There was a provision in the shipping rules themselves which partook of the nature of a savings clause, and which had the effect of requiring the parties to the rules to adhere to them upon deletion of any illegal provisions.Although the respondents were notified that the offensive provision of the shipping rules had been deleted, they took the position that a clause contained in the collective bargaining agreement governed the situation, and that, therefore, the parties were required to negotiate new procedures with respect to the hiring hall agreement. Several conferences took place prior to the expiration of the collective bargaining agreement relative to the hiring hall issue but no agreement was reached. Also, the union at first demanded arbitration of that issue in late October 1979, and insisted on it until December 12, 1979, when Mr. Herbert Segal, attorney for the union, advised the respondents that the union now took the position that the matter was not subject to arbitration.With regard to the access issue, respondents of course granted access in obedience to Judge Ballantine's order until the collective bargaining agreement expired. The respondents have requested arbitration as to the issue and a hearing has been tentatively scheduled on August 11, 1980 to determine both the union hiring hall and access issues.SIU and the respondents, with the exception of Mac, had a provision in their collective bargaining agreement which, in essence, stated that in the event any provisions of the contract were found illegal by any administrative or judicial agency, they would be null and void, and under the agreement, the parties should negotiate new procedures. However, SIU and the respondent companies, except for Mac, were also parties to an agreement known as the "Shipping Rules," which provide that if a particular shipping rule is found unlawful, it does not invalidate the remainder of the rules.IIIn Levine v. C & W Mining Co., 610 F.2d 432 (6th Cir. 1979), this court outlined the Congressional intent underlying § 10(j) of the National Labor Relations Act as amended, and the scope of this court's review of an order of a district court granting injunctive relief pursuant to § 10(j). Clearly, § 10(j) was added "to give the Board a means to preserve the status quo pending the completion of its regular procedures." Id. at 436. The injunctive relief contemplated in § 10(j) and its companion provision § 10(l ) was designed to be temporary, however, and should be only that relief which is "just and proper" under the circumstances in order to avoid frustration of the purposes of the National Labor Relations Act. Id. at 435. This is a matter left to the sound discretion of the district judge. Id. Before a district court grants such relief as it deems just and proper, it must find that "there is reasonable cause to believe that unfair labor practices have been committed." Id. This court's review of the finding of reasonable cause by the district court is limited to whether that finding is clearly erroneous. Id. The scope of this court's review of a decision to grant a preliminary injunction by the district court under § 10(j) is narrow.IIIThe collective bargaining agreement between the parties provided that appellants would employ all of their personnel through the hiring hall of the Union unless the Union was unable to furnish suitable employees. Prior to September 1979 approximately 25% to 35% of appellants' jobs were filled by new hires referred from the Union's hiring hall. The hiring hall supplied from 20 to 40 employees in some months and more than 100 in others.Referrals from the hiring hall were governed by the procedures set out in the SIU Shipping Rules, which were annexed as an appendix, incorporated by reference and repeated in Article I, Section 6, of the collective bargaining agreement.As stated in Part I of this opinion, the Board in Seafarers International, 244 NLRB 99 (1979) held certain seniority provisions in the SIU Shipping Rules to be invalid. Appellants thereupon ordered their managers to cease using the SIU Union Hall.The appellants assert that the district judge was clearly erroneous in his determination that there was reasonable cause to believe that they violated § 8(a)(5) of the National Labor Relations Act by continuing to refuse to use the SIU hiring hall. They argue that when the Board found the seniority rules contained in the hiring hall provisions to be unlawful, Article V, § 3A of the collective bargaining agreement,3 required them to stop using the hiring hall until the provisions were modified by arbitration. Therefore, they contend that rather than unilaterally modifying the contract, they followed the letter of the agreement.Rule 9 of the Shipping Rules provides as follows:The Seafarers Appeals Board may amend these Shipping Rules at any time and in any manner consistent with the requirements of applicable law and of outstanding collective bargaining agreements between the parties.The Seafarers Appeals Board amended the Shipping Rules on October 1, 1979, by eliminating the provisions found unlawful by the Board in Seafarers International, supra, 244 NLRB 99. The seniority rules for hiring hall referrals thereafter were "no longer in conflict with law" and were "restored to full force and effect" under the express language of the collective bargaining agreement relied upon by appellants, see footnote 3, supra.We hold that the determination of the district court that there was reasonable cause to believe the appellants had committed an unfair labor practice by refusing to use the SIU hiring hall even after the unlawful portions of the seniority provisions were deleted is not clearly erroneous and rests upon a reasonable interpretation of the collective bargaining agreement.When the collective bargaining agreement expired on December 31, 1979, appellants took the position that they had no further obligations under the hiring hall and access to vessels provisions.It is well settled that a hiring hall arrangement governing the referral and hiring of bargaining unit employees is a mandatory subject of bargaining. NLRB v. Houston Chapter, Associated General Contractors, 349 F.2d 449 (5th Cir. 1965), cert. denied,Try vLex for FREE for 3 days
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