International Union, United Automobile, Aerospace and Agricultural Implement Workers of America v. Brock

816 F.2d 761, 259 U.S. App. D.C. 457, 8 I.T.R.D. (BNA) 2169
Court of Appeals for the D.C. Circuit·Decided April 24, 1987·No. No. 83-2026·Published·Cited by 6 cases

Opinion

Opinion for the court filed by Circuit Judge HARRY T. EDWARDS.

HARRY T. EDWARDS, Circuit Judge:

In 1981, the International Union, United Automobile, Aerospace & Agricultural Implement Workers of America (“UAW”) and eleven named plaintiffs filed suit in the District Court challenging worker eligibility guidelines promulgated by the Secretary of Labor for the Trade Readjustment Allowance (“TRA”) program of the Trade Act of 1974 (the “Act” or “Trade Act”). 19 U.S.C. § 2101 et seq. (1976 ed.). The District Court found that the guidelines conflicted with section 231 of the Trade Act and with the Vietnam Era Veterans’ Readjustment Act of 1972 (Veterans’ Act of 1972), 38 U.S.C. § 2011 et seq. (1982). The trial court ordered the Secretary to modify his over-restrictive interpretation of the Trade Act; to eliminate the conflict with the Veterans’ Act of 1972; and to direct cooperating state agencies to take specific steps to correct past and present errors in the administration of the program. UAW v. Donovan, 568 F.Supp. 1047, 1058-59 (D.D.C.1983).

On appeal, this court found that the UAW lacked standing to bring this action, and that the claims of the individual named plaintiffs should be dismissed for failure to join cooperating state agencies, UAW v. Donovan, 746 F.2d 839, 842, 843-44 (D.C. Cir.1984); the Supreme Court, in turn, reversed and remanded for further proceedings. UAW v. Brock, 477 U.S. 274,-, 106 S.Ct. 2523, 2533-34, 91 L.Ed.2d 228 (1986).

Years of procedural wrangling finally at an end, we turn to the substance of appellees’ claims. We affirm the District Court’s reading of the Trade Act, reverse its holding that the Secretary’s guidelines conflict with the Veterans’ Act of 1972, and modify its remedial order.

I. Background

The Trade Act of 1974, 19 U.S.C. § 2101 et seq. (1976 ed.), establishes a program of “trade readjustment allowances” to assist American workers who have lost their jobs to competition from abroad. Id. §§ 2291-95. The 1974 Act endeavored to correct the shortcomings of a similar program that had been enacted in the Trade Expansion Act of 1962. See S.REP. No. 93-1298, 93d Cong., 2d Sess. 131 (1974), U.S.Code Cong. & Admin.News 1974, pp. 7186, 7273. The new program contained “eased qualifying criteria and a streamlined petitioning process,” designed to ensure that displaced workers actually received the benefits to which they were entitled. Id.

Before a displaced worker may receive TRA benefits under the 1974 Act, two hurdles must be cleared. The Secretary of Labor must first certify that the worker’s firm has been adversely affected by foreign competition. 19 U.S.C. §§ 2271-73. After certification, employees of the firm who have lost their jobs to competition may [459]*459apply for TRA benefits under the eligibility guidelines set out in the Act and in regulations promulgated by the Department of Labor. Id. § 2291; 29 C.F.R. § 91.6 (1976 ed.). Cooperating state agencies serve as “agents” of the United States in processing applications, determining whether individuals satisfy eligibility requirements and disbursing readjustment allowances. 19 U.S.C. § 2311(a) & (d) (1976 ed.).

Section 231 of the Trade Act sets out the principal worker eligibility requirements for the program. To qualify for TRA benefits a worker must have “had, in the 52 weeks immediately preceding ... separation, at least 26 weeks of employment at wages of $30 or more a week in adversely affected employment with a single firm or subdivision of a firm.” 19 U.S.C. § 2291(2). In a 1975 policy handbook distributed to cooperating state agencies, the Secretary interpreted the term “employment” in section 231 to exclude

[pjeriods in which service is not being performed, such as leave of absence, sick or annual leave or vacation leave, and periods in which service is being performed for other than the adversely affected employer, such as military service, temporary loan or detail to another employer, or work for another employer while attached to the adversely affected employer____

Department of Labor Manpower Administration Handbook No. 315, ch. 1, ¶ 9 (July 1975) (“Handbook”). On August 20, 1981, plaintiffs filed suit challenging this interpretation on grounds of inconsistency with section 231 of the Trade Act and with the Veterans’ Acts of 1972 and 1974.1

The District Court, relying on the fact that the Secretary had threatened to cut off funding to state agencies that failed to follow the Handbook interpretation, concluded that the Secretary’s interpretation had a sufficiently conclusive effect on state administration of the TRA program to make the issue justiciable. 568 F.Supp. at 1051. The court went on to find that the Secretary’s interpretation, which excluded paid time-off from the definition of employment, conflicted with the congressional purpose underlying section 231 of the Trade Act. Id. at 1055-56. The District Court also found that, to the extent that the Handbook requires the state agencies to include weeks of military service in the 52-week “qualifying period,” the Secretary’s interpretation conflicted with section 2013 of the Veterans’ Act of 1972, which requires periods of military service to be disregarded for employment rights purposes. Id. at 1057; 38 U.S.C. § 2013 (1982). The court found no conflict, however, between the Handbook interpretation and the Veterans’ Reemployment Rights Act of 1974. 568 F.Supp. at 1056-57.2

The Secretary appealed the judgment of the District Court. A divided panel of this court found that the UAW lacked standing to bring the action, and that the action brought by the individual named plaintiffs should be dismissed for failure to join the cooperating state agencies. UAW v. Donovan, 746 F.2d 839, 843-44 (1984). The Supreme Court reversed, finding that the UAW has standing to sue on behalf of its members under settled principles of associational standing, and that the state agencies are not necessary and indispensable parties to an action that directly challenges the Secretary’s interpretation of the Trade Act. UAW v. Brock, 477 U.S. 274, -, 106. S.Ct. 2523, 2533-34, 91 L.Ed.2d 228 (1986). In light of this decision and the specific instructions of the Supreme Court, 477 U.S. at---, 106 S.Ct. at 2534-35,3 [460]

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International Union, United Automobile, Aerospace and Agricultural Implement Workers of America v. Brock, 816 F.2d 761, 259 U.S. App. D.C. 457, 8 I.T.R.D. (BNA) 2169 (D.C. Cir. 1987).

816 F.2d 761 (International Union, United Automobile, Aerospace and Agricultural Implement Workers of America v. Brock) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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