Inland Steel Co. v. Local Union No. 1545, United Mine Workers of America

505 F.2d 293, 87 L.R.R.M. (BNA) 2733
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 22, 1974
DocketNos. 72-1893 and 72-1894
StatusPublished
Cited by6 cases

This text of 505 F.2d 293 (Inland Steel Co. v. Local Union No. 1545, United Mine Workers of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inland Steel Co. v. Local Union No. 1545, United Mine Workers of America, 505 F.2d 293, 87 L.R.R.M. (BNA) 2733 (7th Cir. 1974).

Opinions

WILLIAM J. CAMPBELL, Senior District Judge.

These cases, Numbers 72-1893 and 72-1894, although separately briefed and argued, are consolidated for opinion since they involve similar facts and identical questions of law. The issue presented is whether the defendant unions’ conduct in honoring a stranger union’s picket line constituted an arbitrable issue under the collective bargaining agreement in force between the parties, and if so, whether that duty to arbitrate gave rise to an implied no-strike clause justifying the issuance of a Boys Markets 1 injunction. A related subsidiary question concerns the propriety of the injunctive order under traditional equitable considerations. Before reaching these issues, a threshold inquiry must be made into the union’s right to challenge the underlying injunctive orders inasmuch as civil contempt citations were entered upon findings of the district court that the unions had willfully violated the injunction orders.

I.

The basic facts in both cases are largely undisputed and present a common factual scheme. Local 1545, United Mine Workers of America (“Local 1545”), represents underground employees of the plaintiff, Inland Steel Company (“Inland”), at its coal mine in Sesser, Illinois. Local 9111, United Mine Workers of America (“Local 9111”), represents underground employees of the Freeman Coal Mining Corporation (“Freeman”) at its Orient #3 Mine in Waltonville, Illinois. At all pertinent times, both parties were bound by the National Bituminous Coal Wage Agreement of 1971.

During this same period, Local 9111 also represented certain construction workers employed by Roberts & Shaefer Company who had been engaged in construction work at Freeman’s Orient #3 Mine since February or March of 1972. The relationship between the construction workers and their employer was governed by a separate collective bargaining agreement known as the National Coal Mine Construction Agreement.

In addition to Freeman’s Orient #3 employees who were represented by Local 9111, other mining employees of Freeman at its various mines were represented by Locals 1591, 9878, and 1284 of the United Mine Workers of America. These employees were also covered by the National Bituminous Coal Wage Agreement of 1971.

On August 14 and 15, 1972, construction employees of Roberts & Shaefer Company and members of Local 9111 appeared at Orient #3 and other Freeman mines and began picketing. Such pickets were also established at Inland’s coal mine in Sesser, Illinois on August 15, 1972. The purpose of the picketing was stated to be the Pay Board’s failure to approve the full measure of certain wage increases previously negotiated on behalf of the construction workers. As a result of the pickets, mining employees who were members of Locals 1545, 1591, 9111, 9878 and 1284 failed to report for work at Indand’s mine and the various Freeman mines.

[296]*296The work stoppages continued for two days, after which both Inland and Freeman, in separate actions, petitioned the district court for injunctive relief under Section 301 Of the Labor Management Relations Act (29 U.S.C. § 185) and the rationale of Boys Markets 2. The companies argue that the broad arbitration clause contained in the collective bargaining agreement governed this dispute and required that it be submitted to arbitration. The unions, on the other hand, maintain that Section 4 of the Norris-LaGuardia Act (29 U.S.C. § 104) deprived the district court of jurisdiction over this controversy.3

Almost simultaneously with the filing of the verified complaints, the district court entered ex parte temporary restraining orders calling for a halt to the work stoppages. Several days later, following full hearings at which all parties were represented by counsel, the district court entered temporary injunctions in both cases, specifically relying upon the holding in Boys Markets. The stoppages continued, however, and hearings on contempt citations were held in both cases. In the Freeman case, 72-1894, an order of civil contempt was entered against Locals 9111, 1591, 1284 and 9878 for their violations of the temporary restraining order and temporary injunction. Local 9111 was fined $10,000.00 per day for each day of violation and for each day that work stoppages continued. The other locals were fined $1,000.00 per day. These fines were subsequently reduced to $1,000.00 and $100.00 per day, respectively. All four locals have appealed, challenging the validity of both the injunctive and contempt orders.

In the Inland case, 72-1893, a civil contempt order was entered against Local 1545 for its violations of the temporary restraining order and preliminary injunction. A fine of $10,000.00 per day for each day the violation of the court’s injunctive order continued was imposed upon Local 1545. This fine was also later reduced to $1,000.00 per day. Local 1545 appeals from both the injunctive and contempt orders.

II.

Initially, both companies contend that we need not reach the question concerning the validity of the underlying in-junctive orders because the civil contempt orders are otherwise enforceable. In this regard, they maintain that the district court had jurisdiction over the parties and the authority to determine its own jurisdiction under the Norris-LaGuardia Act, and that the injunctive orders were required to be complied with until reversed or set aside by orderly and proper review proceedings.4 See, United States v. Mine Workers, 330 U.S. 258, 293, 67 S.Ct. 677, 91 L.Ed. 884 (1947); Bethlehem Mines Corporation v. United Mine Workers of America, et al., 476 F.2d 860 (3rd Cir. 1973).

In the Bethlehem Mines case, the Court of Appeals for the Third Circuit reached just such a result on the facts closely resembling those present in the cases before us. There is, however, one critically distinguishing factor in Bethlehem Mines. Insofar as it can be gleaned from that court’s opinion, the [297]*297contempt order there was coercive in nature; that is, it was designed to promote obedience to the court’s orders. Where that is the case, the coercive civil contempt order is analogous to the criminal contempt order which clearly must be obeyed in order to permit the alleged contemnor to challenge the propriety of the underlying injunctive order. See, Brotherhood of Loc. Fire and Eng. v. Bangor and Aroostook R. Co., 127 U.S. App.D.C. 23, 380 F.2d 570, 583 (1967); United States v. Mine Workers, 330 U.S. 258, 67 S.Ct. 677, 91 L.Ed. 884 (1947).

The contempt orders here, however, stand on a different footing. They were specifically found by the district court to be “in the nature of compensation for losses and damages suffered by” the companies.

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505 F.2d 293, 87 L.R.R.M. (BNA) 2733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inland-steel-co-v-local-union-no-1545-united-mine-workers-of-america-ca7-1974.