Boise Cascade Corp. v. Peterson

735 F. Supp. 1434, 12 Employee Benefits Cas. (BNA) 1383, 1990 U.S. Dist. LEXIS 4964, 1990 WL 52143
CourtDistrict Court, D. Minnesota
DecidedApril 27, 1990
DocketCiv. 4-90-48
StatusPublished
Cited by2 cases

This text of 735 F. Supp. 1434 (Boise Cascade Corp. v. Peterson) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boise Cascade Corp. v. Peterson, 735 F. Supp. 1434, 12 Employee Benefits Cas. (BNA) 1383, 1990 U.S. Dist. LEXIS 4964, 1990 WL 52143 (mnd 1990).

Opinion

MEMORANDUM AND ORDER

MacLAUGHLIN, District Judge.

Plaintiffs have filed suit to enjoin implementation of a state administrative rule mandating a specific minimum ratio of licensed journeymen pipefitters for each apprentice pipefitter at all jobsites where high pressure pipefitting is being performed. 1 Plaintiffs argue that the rule is preempted both by the Employee Retirement Income Security Act (ERISA) and the National Labor Relations Act (NLRA). On the motion of the plaintiffs, the Court issued a temporary restraining order which enjoined the defendant from implementing or enforcing the new rule. The case was subsequently referred to the United States Magistrate for a report and recommendation on plaintiffs motion for preliminary and permanent injunctive relief as well as *1436 defendant’s motion for summary judgment. In his March 30, 1990 report and recommendation, the Magistrate recommended that the Court deny plaintiff’s motions for injunctive relief and grant defendant’s motion for summary judgment. Plaintiffs’ objections to the report and recommendation are now before the Court.

FACTS

Beginning in 1937, Minnesota has regulated high pressure pipefitting, formerly known as steamfitting. See Minn.Stat. §§ 326.46-.52 and Minn.Rules Pt. 5230. The regulatory scheme includes both an extensive technical code establishing minimum requirements for the design, testing and installation of high pressure piping and provisions for the licensing of pipefitters.

There are two types of pipefitter licenses. “Contracting steamfitters” are qualified to plan and oversee the installation of high pressure pipefitting and to employ journeymen steamfitters. Minn.Rules Pt. 5230.0040, subpt. 1 and Pt. 5230.0070. “Journeymen steamfitters” may install high pressure piping in the employ of a contracting steamfitter. Minn.Rules Pt. 5230.0040, subpt. 3. The rules also provide for unlicensed apprentices 2 who work under the supervision of licensed pipefitters. Minn.Rules Pt. 5230.0040, subpt. 4. Apprentices must either be registered with the Code Enforcement Division or enrolled in an apprenticeship training program recognized by the Division of Voluntary Apprenticeship. 3 Minn.Rules Pt. 5230.0110, subpt. 1.

The Division of Voluntary Apprenticeship approves only those programs that meet certain minimum standards. As early as 1946 these standards included a minimum ratio of journeymen to apprentices. Since 1973, the standards have called for no more than one apprentice for the first journeyman plus one additional apprentice for each additional three journeymen. 4 Affidavit of Robert L. Wickland, ¶ 8, Exh. C. The standards also require four years of education at a vocational-technical institute. Affidavit of Lloyd W. Grooms, Exh. 6 (Report of the Administrative Law Judge) at 6. While the terms of the collective bargaining agreements with pipefitter unions vary slightly, the parties agree that the agreements generally require the same 3-to-l ratio. 5 It is no coincidence then that, although any employer can establish state-recognized voluntary apprenticeship programs, so far all such programs have been established by union employers or unions. Grooms Aff. Exh. 6 at 7.

Some non-union employers have established their own pipefitter apprenticeship programs outside the aegis of the Division of Voluntary Apprenticeship. These programs are less formal than the state-recognized programs, but do offer class work to complement the apprentice’s on-the-job training. Grooms Aff. Exh. 6 at 8; Affidavit of W. Douglas Cross ¶ 7; Affidavit of Kent Durenberger Exh. 1. These programs do not have any fixed ratio of journeymen to apprentices. See Cross Aff. H 3; Affidavit of Loren Cole ¶ 3; Durenberger Aff. at 3. The ratio of journeymen to apprentices at any particular jobsite is determined by the complexity of the task at hand and the experience and ability of the particular individuals available. The ratio of journeymen to apprentices in nonunion training programs tends to be substantially below three-to-one. Grooms Aff. Exh. 6 at 8.

*1437 An employer who hires apprentice pipe-fitters need not establish an apprentice training program. Minnesota requires only that the apprentices be registered with the Code Enforcement Division and that they be ready to take the test, through their own study or employer-sponsored instruction, after four years of experience in the pipefitting trade. Minn.Rule Pt. 5230.0110, subpt. 1.

Until 1985-86, almost all pipefitter apprentices participated in voluntary apprenticeship programs where the ratio of journeymen to apprentices was at least 3-to-l. Grooms Aff. Exh. 6 at 9. That changed in the last several years as non-union employers began establishing apprenticeship training programs which did not comply with the voluntary apprenticeship program's standards. 6 The Department of Labor and Industry ultimately came to question whether pipefitter apprentices were working under adequate supervision. Grooms Aff. Exh. 6 at 9.

On May 16, 1988, the Commissioner of Labor and Industry initiated rulemaking procedures by soliciting information and opinions in conjunction with efforts to prepare an amendment to the rules governing high pressure piping. 12 State Register 2518. On June 12, 1989, the department published a proposed rule requiring the same ratio of journeymen to apprentices eventually adopted. 13 State Register 2928. The rule will hereinafter be referred to as the 3-to-l rule. 7 Because a sufficient number of requests for a hearing were received, the proposed rule was republished on August 21, 1989 with notice of a hearing one month later. 8 14 State Register 357. After the hearing, and based upon the entire record developed during the course of rulemaking proceedings, the Administrative Law Judge (ALJ) found that the agency had demonstrated a need for the proposed rule and that the rule was rationally related to its ends. The rule was adopted on January 22, 1990. 14 State Register 1878.

The rule was found to be necessary and reasonable because of the danger posed by improperly installed high pressure piping and the department’s substantiated concerns about the adequacy of the training and supervision received by apprentices at non-union shops. Grooms Aff. Exh. 6 ¶¶ 15-17, 27. The state cannot observe all high pressure pipefitting work as it is being done. Inspectors do make inspections both during and after construction, but once a pipefitting job is completed much of the work is no longer visible. Grooms Aff. Exh. 6 ¶ 25; Affidavit of Charles Fritze, Jr. II 5. Defects may go undetected until the piping ruptures or explodes. Grooms Aff. Exh. 6 ¶ 16-17, 33; Fritze Aff. ¶ 5. The 3-to-l rule is intended, not just to assure that apprentice pipefitters receive adequate training, but also to assure that high pressure piping is safely installed by either licensed pipefitters or adequately supervised apprentices. Grooms Aff. Exh. 6 ¶ 27, 44.

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Related

Boise Cascade Corp. v. Peterson
939 F.2d 632 (Eighth Circuit, 1991)
Boise Cascade Corporation v. Kenneth Peterson
939 F.2d 632 (Eighth Circuit, 1991)

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Bluebook (online)
735 F. Supp. 1434, 12 Employee Benefits Cas. (BNA) 1383, 1990 U.S. Dist. LEXIS 4964, 1990 WL 52143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boise-cascade-corp-v-peterson-mnd-1990.