American Trucking Associations, Inc. v. National Labor Relations Board

734 F.2d 966, 1985 A.M.C. 1331, 116 L.R.R.M. (BNA) 2311, 1984 U.S. App. LEXIS 22630
CourtCourt of Appeals for the Fourth Circuit
DecidedMay 9, 1984
DocketNos. 83-1185(L), 83-1214, 83-1424 and 83-1486
StatusPublished
Cited by15 cases

This text of 734 F.2d 966 (American Trucking Associations, Inc. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Trucking Associations, Inc. v. National Labor Relations Board, 734 F.2d 966, 1985 A.M.C. 1331, 116 L.R.R.M. (BNA) 2311, 1984 U.S. App. LEXIS 22630 (4th Cir. 1984).

Opinion

ROSENN, Senior Circuit Judge:

This case, in which nine different proceedings of the National Labor Relations Board (the Board) have been consolidated after a remand by the United States Supreme Court, requires us to carefully examine the emergence and development of a technological breakthrough in the shipping industry known as containerization. In particular, we must decide whether the Rules on Containers (the Rules), negotiated by the International Longshoremen’s Association (ILA or Union) and various employer associations representing east coast shipping lines, violate the secondary boycott proscriptions of sections 8(e) and 8(b)(4)(B) of the National Labor Relations Act, 29 U.S.C. §§ 158(e) and 158(b)(4)(B). The Board held that, with two exceptions, the Rules are lawful. We hold that the Rules are valid in all respects.

I.

Although the Supreme Court1 has described the history of containerization, some of it must be reiterated for an understanding of our decision. Prior to the advent of what has come to be termed “the container revolution,”2 the movement of ocean-borne cargo at the pier contained two distinct stages. Truckers first delivered loose (“break-bulk”) cargo to the terminal at the head of the pier. Longshoremen employed by steamship or stevedoring companies then transferred the cargo piece by piece from the tailgate of the truck to the hold of the outgoing ship, checking it, sorting it, placing it on pallets, moving it by forklift to the side of the ship, and lifting it into the hold. This process worked in reverse with regard to incoming ships, with the longshoremen removing the cargo from the ship piece by piece and transporting it to the tailgate of the truck, from which point truckers would deliver it to intermediate warehouses for shipment to the ultimate consignee.

As might be expected, moving cargo in this break-bulk manner proved expensive and inefficient. Following World War II, therefore, steamship carriers operating between New York and Puerto Rico began to carry cargo in small (8' X 8' x 8') reusable wooden receptacles called “Conex” and “Dravo” boxes. Initially, these boxes — the forerunners of the modern container — were “stuffed” (loaded) and “stripped” (unload[969]*969ed) exclusively at the pier by ILA labor. Later, however, steamship companies made them available to shippers and others for stuffing and stripping off-pier by non-ILA labor. By the mid-1950’s, larger metal containers began to replace the wooden boxes. Then in 1957 an event of enormous importance to the development of the shipping industry occurred: the first “container-ship” took to the sea, designed specifically to move containers that would ultimately range up to forty feet in length. Within a decade, steamship companies began using containerships in other American ports, and in the North Atlantic trade routes between New York and the principal ports of Western Europe. By the mid-1970’s containerized cargo inevitably reached all across the globe.

From the early days of containerization, its advantages loomed large. The Supreme Court succinctly described them as follows:

The use of containers is substantially more economical than traditional methods of handling ocean-borne cargo. Because cargo does not have to be handled and repacked as it moves from the warehouse by truck to the dock, into the vessel, then from the vessel to the dock and truck or rail to its destination, the costs of handling are significantly reduced. Expenses of separate export packaging, storage, losses from pilferage and breakage, and costs of insurance and processing cargo documents may also be decreased. Perhaps most significantly, a container ship can be loaded or unloaded in a fraction of the time required for a conventional ship. As a result, the unprofitable in-port time of each ship is reduced, and a smaller number of ships are needed to carry a given volume of cargo.

NLRB v. International Longshoremen’s Ass’n, 447 U.S. at 494-95, 100 S.Ct. at 2308-09 (footnotes omitted). In short, no one has ever doubted that containerization has enabled ocean-borne cargo to be moved in a strikingly more economical fashion than it had traditionally been moved.

But the effects of the innovation have not been unequivocally favorable. As has been the case with most important technological changes, containerization has promoted efficiencies and economies but at the same time has wrought some dislocations and hardships. Although the productivity of longshoremen has dramatically increased, the number of jobs and the quantum of work available to them has sharply declined. In the Port of New York alone, for instance, the record reveals that annual employment slipped from 43,000,000 man-hours in 1958 to less than 20,000,000 in 1977 while the annual volume of cargo shipped through the port doubled. The slippage in employment has been the genesis of a long and bitter dispute between the various parties affected in which they have sought to come to terms with the two-edged consequences of an important technological advance.

As early as 1958, containerization had begun to make inroads into traditional longshoremen work, and the ILA could sense the shadows of impending storms. Not surprisingly, therefore, the first of a host of disputes between various east coast shipping employer associations and the ILA arose at about this time, with the shipping industry insisting that containers be permitted to move on and off the pier without any restrictions. The ILA insisted just as vociferously that it had the right to dictate the conditions under which its members would move the containers. These preliminary skirmishes — including a grievance by the Union that resulted in an arbitration ruling3 requiring the ILA to handle containers it had theretofore refused to handle — culminated in the first set of collective bargaining negotiations to address the problems wrought by containerization. These 1959 negotiations between the ILA and the New York Shipping Association (NYSA) opened with the Union demanding that all containers be stripped and stuffed at the pier by the longshoremen. The Shipping Association countered with equally in[970]*970flexible demands. Ultimately, however, the parties carved out an agreement.

In the agreement, the ILA conceded that any member of NYSA “shall have the right to use any and all type[s] of containers without restriction or stripping by the union.” In return, NYSA made two important concessions. It agreed, first, to pay the ILA royalties on containers stripped or stuffed away from the pier by non-ILA labor. Second, NYSA agreed that

Any work performed in connection with the loading and discharging of containers for employer members of NYSA which is performed in the Port of Greater New York whether on piers or terminals controlled by them, or whether through direct contracting out, shall be performed by ILA labor at longshore rates.

Whatever the merits of the 1959 agreement, it produced little tranquility. Grievances, work stoppages, and wildcat strikes blanketed the rapidly developing container shipping industry for most of the next decade. At least in part, this strife-ridden state of affairs stemmed from the conspicuously different interpretations the parties placed on an arguably ambiguous portion of the 1959 agreement.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

South Carolina State Ports Authority v. NLRB
75 F.4th 368 (Fourth Circuit, 2023)
Universal Maritime v. Wright
Fourth Circuit, 1998
United States Court of Appeals, Fourth Circuit
734 F.2d 966 (Fourth Circuit, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
734 F.2d 966, 1985 A.M.C. 1331, 116 L.R.R.M. (BNA) 2311, 1984 U.S. App. LEXIS 22630, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-trucking-associations-inc-v-national-labor-relations-board-ca4-1984.