Eastex, Inc. v. National Labor Relations Board

437 U.S. 556, 98 S. Ct. 2505, 57 L. Ed. 2d 428, 1978 U.S. LEXIS 121, 98 L.R.R.M. (BNA) 2717
Supreme Court of the United States·Decided June 22, 1978·No. 77-453·Published·Cited by 268 cases

Opinions

Mr. Justice Powell

delivered the opinion of the Court.

Employees of petitioner sought to distribute a union newsletter in nonworking areas of petitioner’s property during nonworking time urging employees to support the union and discussing a proposal to incorporate the state “right-to-work” statute into the state constitution and a Presidential veto of an increase in the federal minimum wage. The newsletter also called on employees to take action to protect their interests as employees with .respect to these two issues. The question presented is whether petitioner’s refusal to allow the distribution violated § 8 (a)(1) of the National Labor Relations Act, as amended, 61 Stat. 140, 29 U. S. C. § 158 (a)(1), by interfering with, restraining, or coercing employees’ exercise of their right under § 7 of the Act, 29 U. S. C. § 157, to engage in “concerted activities for the purpose of . . . mutual aid or protection.”

[559]*559I

Petitioner is a company that manufactures paper products in Silsbee, Tex. Since 1954, petitioner’s production employees have been represented by Local 801 of the United Paperwork-ers International Union. It appears that many, although not all, of petitioner’s approximately 800 production employees are members of Local 801. Since Texas is a “right-to-work” State by statute,1 Local 801 is barred from obtaining an agreement with petitioner requiring all production employees to become union members.

In March 1974, officers of Local 801, seeking to strengthen employee support for the union and perhaps recruit new members in anticipation of upcoming contract negotiations with petitioner, decided to distribute a union newsletter to petitioner’s production employees.2 The newsletter was divided into four sections. The first and fourth sections urged employees to support and participate in the union and, more generally, extolled the benefits of union solidarity. The second section encouraged employees to write their legislators to oppose incorporation of the state “right-to-work” statute into a revised state constitution then under consideration, warning that incorporation would “weake[n] Unions andimprov[e] the edge business has at the bargaining table.” The third section noted that the President recently had vetoed a bill to increase the federal minimum wage from $1.60 to $2.00 per hour, compared this action to the increase of prices and profits in the oil industry under administration policies, and admonished: “As working men and women we must defeat our enemies and [560]*560elect our friends. If you haven’t registered to vote, please do so today.” 3

On March 26, 1974, Hugh Terry, an employee of petitioner and vice president of Local 801, asked Herbert George, petitioner’s assistant personnel director, for permission to distribute the newsletter to employees in the “clock alley” that leads to petitioner’s time clocks.4 George doubted whether management would allow employees to “hand out propaganda like that,” but agreed to check with his superiors. Leonard Menius, petitioner’s personnel director, confirmed that petitioner would not allow employees to distribute the newsletter in clock alley. A few days later George communicated this decision to Terry, but gave no reasons for it.

On April 22, 1974, Boyd Young, president of Local 801,5 together with Terry and another employee, asked George whether employees could distribute the newsletter in any nonworking areas of petitioner’s property other than clock alley.6 After conferring again with Menius, George reported [561]*561that employees would not be allowed to do so and that petitioner thought the union had other ways to communicate with employees. Local 801 then filed an unfair practice charge with the National Labor Relations Board (Board), alleging that petitioner’s refusal to allow employees to distribute the newsletter in nonworking areas of petitioner’s property during nonworking time interfered with, restrained, and coerced employees’ exercise of their § 7 rights in violation of § 8 (a) (1).7

At a hearing on the charge, Menius testified that he had no objection to the first and fourth sections of the newsletter. He had denied permission to distribute the newsletter because he “didn’t see any way in which [the second and third sections were] related to our association with the Union.” App. 19. The Administrative Law Judge held that although not all of the newsletter had immediate bearing on the relationship between petitioner and Local 801, distribution of all its contents was protected under § 7 as concerted activity for the “mutual aid or protection” of employees. Because petitioner had presented no evidence of “special circumstances” to justify a ban on the distribution of protected matter by employees in nonworking areas during nonworking time, the Administrative Law Judge held that petitioner had violated § 8 (a)(1) and ordered petitioner to cease and desist from the violation.8 The Board [562]*562affirmed the Administrative Law Judge’s rulings, findings, and conclusions, and adopted his recommended order. 215 N. L. R. B. 271 (1974).

The Court of Appeals enforced the order. 550 F. 2d 198 (CA5 1977). It rejected petitioner’s argument that the “mutual aid or protection” clause of § 7 protects only concerted activity by employees that is directed at conditions that their employer has the authority or power to change or control. Without expressing an opinion as to the full range of § 7 rights “when exercised off the employer’s property,” 550 F. 2d, at 202, the court purported to balance those rights against the employer’s property rights and concluded that “whatever is reasonably related to the employees’ jobs or to their status or condition as employees in the plant may be the subject of such handouts as we treat of here, distributed on the plant premises in such a manner as not to interfere with the work . . . .” Id., at 203 (emphasis in original). The court further held that all of the material in the newsletter here met this test. Id., at 204-205.9

Because of apparent differences among the Courts of Appeals as to the scope of rights protected by the “mutual aid or protection” clause of § 7, see n. 17, infra, we granted certiorari. 434 U. S. 1045 (1978). We affirm.

[563]*563II

Two distinct questions are presented. The first is whether, apart from the location of the activity, distribution of the newsletter is the kind of concerted activity that is protected from employer interference by §§ 7 and 8(a)(1) of the National Labor Relations Act. If it is, then. the second question is whether the fact that the activity takes place on petitioner’s property gives rise to a countervailing interest that outweighs the exercise of § 7 rights in that location. See Hudgens v. NLRB, 424 U. S. 507, 521-523 (1976); Central Hardware Co. v. NLRB, 407 U. S. 539, 542-545 (1972);

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Eastex, Inc. v. National Labor Relations Board, 437 U.S. 556, 98 S. Ct. 2505, 57 L. Ed. 2d 428, 1978 U.S. LEXIS 121, 98 L.R.R.M. (BNA) 2717 (1978).

437 U.S. 556 (Eastex, Inc. v. National Labor Relations Board) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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