Baton Rouge Building & Construction Trades Council, AFL-CIO v. E. C. Schafer Construction Co.

492 F. Supp. 534, 106 L.R.R.M. (BNA) 2040, 1980 U.S. Dist. LEXIS 12180
CourtDistrict Court, M.D. Louisiana
DecidedApril 11, 1980
DocketCiv. A. 77-475-A
StatusPublished

This text of 492 F. Supp. 534 (Baton Rouge Building & Construction Trades Council, AFL-CIO v. E. C. Schafer Construction Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baton Rouge Building & Construction Trades Council, AFL-CIO v. E. C. Schafer Construction Co., 492 F. Supp. 534, 106 L.R.R.M. (BNA) 2040, 1980 U.S. Dist. LEXIS 12180 (M.D. La. 1980).

Opinion

E. GORDON WEST, District Judge:

This action was brought by the Baton Rouge Building and Construction Trades Council, AFL-CIO, and associated labor unions, to enforce certain pre-hire agreements entered into between them and the defendant, E. C. Schafer Construction Company, Inc.

Jurisdiction in this court is founded on federal questions arising from the application of the Labor-Management Relations *536 Act, 29 U.S.C.A. 185(a) and the Employee Retirement Income Security Act of 1974, 29 U.S.C.A. 1132 (ERISA).

FACTS

Briefly, the unions complain that the defendant contractor signed written agreements with them in 1974, which he unilaterally ceased to honor at a subsequent date. They pray for damages in the amount of back wages and pension benefits payable under the agreements, and attorney’s fees.

Prior to Fall 1974, Schafer had been primarily a residential and apartment construction contractor and had been non-union. In the Fall of that year, the Schafer Company was incorporated and began to solicit commercial construction jobs. The first such job awarded to the new concern involved the construction of an Administration Building and Gatehouse at the Port Hudson plant of Georgia-Pacific. The job was bid non-union.

Shortly after commencement of work at Georgia-Pacific, a picket line appeared, which provoked meetings between Schafer and the unions, leading to the confection of the agreements which form the subject of this litigation.

WHAT WAS THE INTENDED SCOPE AND DURATION OF THE AGREEMENTS?

Plaintiffs and defendant hotly contest the meaning of the portion of their written agreement which reads as follows, “This agreement will exclude the Administration Building and Guard House at Georgia-Pacific, Port Hudson, but will cover all other work obtained between the period of August 26, 1974 and October 26, 1974.”

According to the defendant, this passage establishes that the agreements were to be in effect only during the two month period between August 26 and October 26 of 1974 and were to apply only to jobs obtained at the Port Hudson plant of Georgia-Pacific other than the job already commenced. For two reasons the court cannot accept this interpretation of the agreement.

First, the court does not believe that the plaintiff unions would have removed their picket line from Schafer’s job-site for such a small consideration as the right to a union contract on work at that particular site which might be awarded to that particular contractor during a particular two month period. The record does not show that any work other than the gate house and administration building jobs was done at the Port Hudson site during the two month period involved, nor that there was ever any expectation that any such work would be done. In order to accept the defendant’s interpretation of the agreement we would have to believe that the unions would withdraw a picket line already set up by them in return for the empty promise to use union labor on jobs that were never to be done.

Second, the agreements in question were dated October 26, 1974. Plaintiffs maintain, and the defendant has not denied, that they were actually signed on August 26, two months earlier. The unions’ explanation of this is that Schafer expected to be finished with the Port Hudson job by October 26 and wished to complete that job on a non-union basis, since he had bid it non-union and could not meet his contract obligations on that job and pay union scale. He therefore, asked that the agreement be post-dated to October 26, so that he would not be bound to a union contract till after he had finished that particular job. The unions were agreeable to this arrangement, since they expected that Schafer would henceforth be a union contractor, but they wished to be assured that if Schafer obtained any other work than the Port Hudson job prior to the October 26 date, that work would be done under union auspices.

We find this a credible explanation of the meaning of this passage and accordingly find that the agreement was understood by all parties to mean, and does mean, that it was to apply to all jobs obtained by the Schafer company from October 26, 1974 onward, and to all jobs obtained by him except the Port Hudson, Georgia-Pacific job, between August 26 and October 26 of that year.

*537 ARE THE AGREEMENTS ENFORCEABLE?

The agreements in issue here are pre-hire agreements, a form of labor agreement unique to the construction industry. In all fields except the construction industry labor law condemns as an unfair labor practice the making of any agreement between an employer and any union which has not been certified as the majority representative of his employees. A limited exception is made for the construction industry because of the complete changes that are there made in the composition of the work force employed by an employer from job to job; and the need to know, in advance of hiring for a particular job, what the labor costs will be, see N. L. R. B. v. Local U. No. 103, Intern. Ass’n, Etc., 434 U.S. 335, 347, 98 S.Ct. 651, 659, 54 L.Ed.2d 586 (1978). In the above case, the Supreme Court laid down the rule that a construction industry pre-hire agreement, while not an unfair labor practice, still has no legal force or effect until such time as the union can prove majority support at the particular construction site as to which it is sought to be enforced. “The employer’s duty to bargain and honor the contract is contingent on the union attaining majority support at the various construction sites,” Local U. No. 103 above, 434 U.S. at 345, 98 S.Ct. at 658.

In this case, however, it is unnecessary to weigh the voluminous evidence submitted by the parties, mostly in the form of payroll records of the defendant Contractor, to determine which jobs, if any, had union majorities employed subsequent to February 9, 1976; because on that date Mr. Schafer signed, on behalf of his company, a document authorizing the Associated General Contractors (A.G.C.) of Louisiana to act as his bargaining agent in negotiations with the plaintiff unions. This voluntary act of the defendant effectively merged his company with the other member companies of the Associated General Contractors as one large collective bargaining unit. Thenceforth, it became irrelevant whether a majority of Schafer’s employees favored the union so long as a majority of those employed by the Associated General Contractors were union people. See, Authorized Air Conditioning Co., Pomona, Calif, and Sheet Metal Workers Local 509, Case No. 21-CA-15160, May 16, 1978, 236 NLRB No. 24; 98 LRRM 1538 where the Board held,

The employer relied on Irvin-McKelvy Company, 194 NLRB 52, 78 LRRM 1516, and other cases concerning bargaining relationships under Section 8(f) of the Act. However, this reliance is misplaced, since no question of majority has been raised in the appropriate multi-employer unit, and the representative status of the union among the employer’s employees is immaterial in view of the fact that these employees constitute only a small segment of the unit.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
492 F. Supp. 534, 106 L.R.R.M. (BNA) 2040, 1980 U.S. Dist. LEXIS 12180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baton-rouge-building-construction-trades-council-afl-cio-v-e-c-lamd-1980.