Builders Ass'n v. Commercial Piping Co.

434 N.E.2d 271, 70 Ohio St. 2d 9
CourtOhio Supreme Court
DecidedApril 21, 1982
DocketNo. 81-820
StatusPublished
Cited by5 cases

This text of 434 N.E.2d 271 (Builders Ass'n v. Commercial Piping Co.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Builders Ass'n v. Commercial Piping Co., 434 N.E.2d 271, 70 Ohio St. 2d 9 (Ohio 1982).

Opinion

Krupansky, J.

The issue here is whether the National Labor Relations Act preempts an action brought in a state court to compel arbitration of a dispute between an employer and an employers’ association over the employer’s execution of a separate agreement with a union, allegedly in violation of an agreement between the employer and the association.

The association contends this is merely an action for breach of contract over which the state court may exercise [11]*11jurisdiction. Commercial argues this controversy is within the exclusive jurisdiction of the board.

The doctrine of preemption in labor law was developed to prevent state court interference with the federal regulatory scheme. The overriding goal of preemption has been to promote a uniform application of the Act by a centralized administrative agency, thereby avoiding “potential conflict of rules of law, of remedy, and of administration,” promulgated by different tribunals. San Diego Building Trades Council v. Garmon (1959), 359 U. S. 236, 242. The focus of inquiry when an issue of federal preemption arises has been the extent to which state court adjudication would interfere with a uniform national labor policy as administered by the board. See, e.g., Local 100, United Association of Journeymen & Apprentices v. Borden (1963), 373 U. S. 690. Accordingly, the critical inquiry is “whether the controversy presented to the state court is identical to * * * or different from * * * that which could have been, but was not, presented to the Labor Board. For it is only in the former situation that a state court’s exercise of jurisdiction necessarily involves a risk of interference with the unfair labor practice jurisdiction of the Board * * * .” (Emphasis added.) Sears Roebuck & Co. v. San Diego County District Council of Carpenters (1978), 436 U. S. 180, 197. When the conduct which is the subject matter of a suit is arguably prohibited by the Act, the risk of interference with federal labor policy is great, and a state court is precluded from exercising jurisdiction. Local 100, United Association of Journeymen & Apprentices v. Borden, supra.

Federal concern in the area of multi-employer bargaining is pervasive. Thus, multi-employer bargaining has traditionally been an area of vital interest to the board. The board has favored the multi-employer unit as a bargaining mechanism because it has served to strengthen the process of collective bargaining, particularly in industries characterized by numerous smaller employers. Through group bargaining, small employers are better enabled to match forces with a large union and may avoid “the competitive disadvantages resulting from nonuniform contractual terms.” NLRB v. Truck Drivers Local 449 (1957), 353 U. S. 87, 96. At the same time, [12]*12employees are benefited, for example, by the adoption of uniform worker benefit programs made possible by an association of employers. NLRB v. Charles D. Bonanno Linen Service, Inc. (C.A. 1, 1980), 630 F. 2d 25, 28, affirmed (1982), _ U. S. _, 70 L. Ed. 2d 656.

Throughout its long history of dealing with multi-employer bargaining, the board’s settled policy has been to recognize the employer association as a vital factor in the promotion of peaceful labor relations.

Pursuant to Section 159(b), Title 29, U. S. Code,1 the board has established the practice of certifying multi-employer units, and once established, both employers and unions are obligated to bargain with the employer groups. Sections 158(a)(5) and (b)(3), Title 29, U. S. Code.2 The foremost objective of the board and national labor policy has been to safeguard the stability of the employer unit. NLRB v. Beck Engraving Co., Inc. (C.A. 3, 1975), 522 F. 2d 475, 480. The function of effectuating this national labor policy has been committed primarily to the board. “ * * * [T]he compelling conclusion is that Congress intended ‘that the Board should continue its established administrative practice of certifying multi-employer units, and intended to leave to the Board’s specialized judgment the inevitable questions concerning multi-employer bargaining bound to arise in the future.’ ” NLRB v. Truck Drivers Local Union No. 449, supra, at 96 (quoting 231 F. 2d, at 121). Since concurrent state court jurisdiction would create a risk of undermining national labor policy as articulated by the board, “ * * * Congress recognized that the significance of these [employer] units requires that formulation of general rules governing them be entrusted to [13]*13the expert judgment of the NLRB.” NLRB v. Beck Engraving Co., Inc., supra, at 480.

Pursuant to national policy favoring preservation of the integrity of multi-employer units, the board will carefully scrutinize an agreement between the union and an individual employer to evaluate its effect on the stability of the multi-employer association. When separate negotiations between the individual employer and the union are destructive of group bargaining or operate to fragment the multi-employer unit, the board may find an unfair labor practice in violation of Sections 158(a)(5) and (b)(3). See, e.g., Teamsters Union Local No. 378 and Olympia Automobile Dealers Assn. (1979), 243 NLRB 1086, 102 LRRM 1007. When the separate agreement does not significantly fragment or weaken the position of the multi-employer group, the board is less likely to find a violation of the Act. See, e.g., Sangamo Construction Co. and Southern Illinois Contractors Assn. (1971), 188 NLRB 159, 77 LRRM 1039. Whether a particular agreement weakens the multi-employer unit and thereby constitutes an unfair labor practice, however, is not an issue for resolution by this court or any state court. Such a determination is exclusively within the province of the board.

The controversy here between Commercial and the association is the same as one which the association might have presented to the board. Had the association filed unfair labor practice charges with the board, alleging, as it did in its complaint here, that Commerical “ * * * has weakened the bargaining position of the multi-employer bargaining group,” the issue would have been whether Commercial’s activity, i.e., separate negotiations with the union, constituted an unfair labor practice. This issue, viz., whether the execution of a separate agreement amounts to an unfair labor practice, is identical to the issue resolved by the board in similar cases. See, e.g., Teamsters Union Local No. 378 and Olympia Automobile Dealers Assn., supra; Plumbers and Steamfitters Union No. 323 and P.H.C. Contractors Assn. of Columbus (1971), 191 NLRB 592, 77 LRRM 1769; Sangamo Construction Co. and Southern Illinois Contractors Assn., supra. If, as the association alleges, Commercial has acted in a manner destructive of the employer group, the board could find Com[14]*14mercial violated Section 158(a)(5).

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Bluebook (online)
434 N.E.2d 271, 70 Ohio St. 2d 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/builders-assn-v-commercial-piping-co-ohio-1982.