District 2, Marine Engineers Beneficial Association Afl-Cio v. Amoco Oil Company

554 F.2d 774, 95 L.R.R.M. (BNA) 2241, 1977 U.S. App. LEXIS 13564
CourtCourt of Appeals for the Sixth Circuit
DecidedMay 3, 1977
Docket76-1024
StatusPublished
Cited by15 cases

This text of 554 F.2d 774 (District 2, Marine Engineers Beneficial Association Afl-Cio v. Amoco Oil Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
District 2, Marine Engineers Beneficial Association Afl-Cio v. Amoco Oil Company, 554 F.2d 774, 95 L.R.R.M. (BNA) 2241, 1977 U.S. App. LEXIS 13564 (6th Cir. 1977).

Opinions

CELEBREZZE, Circuit Judge.

This case presents the single issue of whether, under section 301(a) of the Labor Management Relations Act of 1947 (LMRA), 29 U.S.C. § 185(a) (1970),1 a federal court has jurisdiction over the subject matter of a breach of contract action by a union, purporting to represent a bargaining unit comprised exclusively of supervisors, against an employer in an industry affecting commerce.2 District 2, Marine Engineers Beneficial Association, AFL-CIO (MEBA), sued Amoco Oil Company (Amoco) in federal district court seeking injunctive relief and damages for breach of an alleged agreement by Amoco to conduct an election to determine the representational status of officers serving on three vessels which it operated on the Great Lakes. Both parties conceded that the designated officers were supervisors within the meaning of § 2(11), 29 U.S.C. § 152(11), and that they were involved in an “industry affecting commerce.”

A consolidated hearing was held on MEBA’s request for both a preliminary and permanent injunction. Subsequently, the District Court filed a memorandum opinion and order dismissing the action for want of subject matter jurisdiction. The Court reasoned that, because § 501(3) mandates that the subehapter II definition of “employee” apply throughout the Act, and § 2(3) expressly excludes supervisors, as defined by § 2(11), MEBA was not a “labor organization representing employees ” under section 301(a). Therefore, in the absence of diversity of citizenship between the parties, it was barred from suing in federal court to enforce the putative contract. On appeal, MEBA contends that this syllogistic interpretation of the statute is erroneous as a matter of law.

The problem of statutory construction raised by this appeal can be traced to the involuted structure of the LMRA. Under the precursor National Labor Relations Act of 1935, 49 Stat. 449, popularly referred to as the Wagner Act, supervisors were implicitly subsumed within the definition of covered employees contained in § 2(3). When the Wagner Act was incorporated as Title I of the LMRA in 1947, § 2(3) was amended to exclude supervisors. 29 U.S.C. § 152(3). New national labor law provisions, unrelated to Title I, were appended as Titles II through V of the Act. For reasons of drafting economy, Title V includes § 501(3), 29 U.S.C. § 142(3), which plainly incorporates by reference eight definitions found in Title I, including the § 2(3) definition of “employee” as amended.

The dispositive question is whether Congress intended § 2(3) to exempt supervisors from coverage under all of the Acts provisions, or whether the supervisory exemption was to be limited to Title I. If the will of Congress on this point is clearly discernible, we need go no further. Only if the legislative history of the LMRA’s definitional [777]*777amendments to the Wagner Act fails to expose the rationale underlying the exclusion will we consider whether the District Court’s literal reading of 29 U.S.C. § 142(3) is compatible with the policy objectives of section 301(a).

The legislative history of the Labor-Management Relations Act makes it abundantly clear that Congress wished to insulate an employer’s interaction with its supervisors from only those constraints imposed by Title I. We can find no evidence which favors an extension of this partial exemption to place unions of supervisors entirely outside the purview of the Act. A comparison of corresponding sections of the House and Senate Reports on the proposed bill conclusively reveals the specific intent of Congress:

It will be noted, however, that this amendment [defining supervisors for purpose of their exclusion from the class of covered employees] does not mean that employers cannot still bargain with such supervisors and include them, if they see fit, in collective bargaining contracts. All that the proposal does is to prevent employers being compelled to accord supervisors the anomalous status of employees for the purposes of the Wagner Act. (emphasis added).

S.Rep.No.105, 80th Cong., 1st Sess. 19 (1947). Comparable language appears at several points in the House Report:

(5) It [the proposed bill] exempts supervisors from the compulsory features of the National Labor Relations Act. (emphasis added).

H.Rep.No.245, 80th Cong., 1st Sess. 5 (1947).

The bill, by excluding foremen and other supervisory personnel from the definition of “employee,” deprives the Board [the National Labor Relations Board] of jurisdiction over them, (emphasis added).

Id. at 14.

The limited scope of the supervisor exclusion is echoed in floor debate on the measure. For example, Senator Taft, co-author of the Act, in assessing the final impact of the exclusion, noted that supervisors “do not have the protection of the National Labor Relations Act. * * * [T]hey are generally restored to the basis which they enjoyed before the passage of the Wagner Act.” 93 Cong.Rec. 3952 (1947). That Congress was solely intent upon wresting jurisdiction over supervisors from the NLRB is evident from the fact that a provision which would have nullified the Board’s recognition of supervisors as statutory employees under the Wagner Act, a decision affirmed by the Supreme Court in Packard Motor Car Co. v. NLRB, 330 U.S. 485, 67 S.Ct. 789, 91 L.Ed. 1040 (1947), was included in the Case Bill. This bill passed both houses of the 79th Congress by substantial margins, but was vetoed by the President. The Case Bill is devoid of any language which might be construed as exempting unions of supervisors from its provisions.

Our reading of the legislative history is in accord with precedents from the only other circuits to have squarely addressed this issue. In two decisions rendered at different stages of the same case, the Second Circuit held that the fact that a striking maritime union represented only supervisors did not immunize it from the “National Emergencies” provisions of the Labor-Management Relations Act, 29 U.S.C. §§ 176-180. United States v. National Marine Engineers Beneficial Association, 292 F.2d 190 (2d Cir. 1961), and United States v. National Marine Engineers Beneficial Association, 294 F.2d 385 (2d Cir. 1961). In the second opinion, Judge Friendly summarized the legislative history of the excluding amendment as being:

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Bluebook (online)
554 F.2d 774, 95 L.R.R.M. (BNA) 2241, 1977 U.S. App. LEXIS 13564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/district-2-marine-engineers-beneficial-association-afl-cio-v-amoco-oil-ca6-1977.