Kinney ex rel. National Labor Relations Board v. International Union of Operating Engineers, Local 150

994 F.2d 1271
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 1, 1993
DocketNo. 92-1919
StatusPublished
Cited by3 cases

This text of 994 F.2d 1271 (Kinney ex rel. National Labor Relations Board v. International Union of Operating Engineers, Local 150) 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
Kinney ex rel. National Labor Relations Board v. International Union of Operating Engineers, Local 150, 994 F.2d 1271 (7th Cir. 1993).

Opinion

CUMMINGS, Circuit Judge.

The district court has enjoined Local 150 of the International Union of Operating Engineers, AFL-CIO, from holding a mass trial to discipline some fifty-three members who, the Union claims, crossed picket lines during a strike. 786 F.Supp. 1431. The National Labor Relations Board (“Board”)1 urges us to uphold the injunction but argues that the district court applied an incorrect standard for considering its petitions for equitable relief. The Board claims this standard will make it more difficult in future cases for the Board to halt unfair labor practices. The Union, by contrast, contends that the district court used the right standard but applied it wrongly; it wants to sanction without delay members described in one Union newsletter as “LOWER THAN GUTTERSNIPES, UNION BUSTING CRAWLING SCUMBAGS” (defendant’s app. at 8). Because we find that the disti’ict court used the correct standard and applied the standard judiciously in this case, we uphold the injunction.

I.

This disagreement between the Union and its membership has a curious twist in that the employees who allegedly crossed picket lines work for the competitor of the company targeted by the strike. The strike, from October 12 to October 18,1991, was aimed at Edward C. Levy Co. (“Levy”), which is located on the same premises as the Heekett Division of Harsco Corp. (“Heekett”). The employees accused of violating the picket line work for Heekett. Both firms are slag processors; that is, they reclaim a waste product in the manufacture of steel. As raw materials are converted first to pig iron and then to finished steel, a waste product is drawn off in molten form, cooled until it hardens, broken up, scavenged for metals, and disposed of; this is slag. Levy and Heekett are subcontractors for the processing and disposal of slag at LTV Indiana Harbor Works (“LTV’), a steel manufacturer which owns the plant in East Chicago, Lake County, Indiana, that is at the center of this dispute.

When the Union went on strike against Levy, Heekett employees were obliged to continue working under a separate collective bargaining agreement good through the end of September 1995. According to that agreement, “[tjhere shall be no strikes, work stoppages, slow down, interruption, or impeding of work during the period of this Agreement” (defendant’s app. at 3). The LTV plant is large — some 5,000 workers on 1,150 acres— and has three entrances. Ordinarily, two entrances are used for employees and one for contractors. As in a previous labor dispute, the companies designated one entrance to serve the struck firm exclusively, here Levy. The other two gates were reserved for LTV and its outside contractors, including Heek-ett, and signs posted at the various gates warned that all traffic related to Levy was required to use the Levy entrance. This so-called reserved gate system was intended to allow Heekett, LTV and all others at the plant to go about their business normally without having to cross picket lines. Use of a reserved gate system is common where employers share a site but only one is experiencing labor strife, and is designed to keep neutral parties from being dragged into the dispute. Mautz & Oren, Inc. v. Teamsters, Chauffeurs, And Helpers Union, Local No. 279, 882 F.2d 1117, 1122 (7th Cir.1989).

According to testimony before the district court, an LTV representative approached Union officials on October 12, the first day of the strike, and told them to picket only at the Levy entrance. The Union’s picket captain allegedly responded that he had been instructed to picket each of the three gates, and that the Union intended to disrupt the work of all contractors at the East Chicago site, not just Levy. Indeed, the Union continued to post placard-bearing workers at the three entrances to the facility. Local 150 now claims that it was never told of the [1274]*1274reserved gate system and that the signs were not visible from the areas where the disgruntled workers were protesting. The district judge, however, made a factual finding that the signs were in place and, apparently, visible.2

During the strike some fifty-three Heckett employees entered the Indiana Harbor Works plant through the two gates designated for non-Levy traffic. Local 150 filed internal Union charges against some of them on October 14, 1991, or the third day of the strike. The Union then scheduled a “mass trial” for the Heckett workers for December 12, 1991 (defendant’s app. at 7). According to testimony in the district court, a Union member who is found guilty in such a proceeding may be fined as much as $5,000 and expelled from the Union. A worker booted out of the Union may also lose her job because a “top card” issued by Local 150 is required to run certain Heckett equipment. A censured employee is able to appeal a sanction to the International Union only after paying the fine. As a consolation prize, members who lose their top cards and then-jobs may still pay a fee and get on the Union’s out-of-work list while they appeal their punishment.

The atmosphere between Local 150, Levy, and Heckett’s employees during the strike was poisonous. Several Heckett workers filed charges with the Board against their Union. One of these testified in district court that his tires were slashed and his family threatened. And a Union newsletter bitterly castigated Heckett employees who honored their contract and continued to work:

I cannot think of a defense for these guys. Had the situation been reversed, they would have expected a show of support from their fellow Union members. The strike was supported by union members of other trades, but not by members of 150, the trade involved. What an embarrassment they are to the remaining thirteen thousand some hundred members of Local 150!!!! EVEN THE NON UNION RAT IS BETTER THAN THEY ARE. AT LEAST YOU KNOW WHERE THE NON UNION RAT STANDS * * *.

(defendant’s app. at 8). On October 15,1991, the fourth day of the strike, LTV and Heck-ett filed charges with the Board against the Union for engaging in unfair labor practices within the National Labor Relations Act, 29 U.S.C. §§ 158(b)(4)(f) and (ii)(B) (the “Act”).3 The Board filed an amended petition in the district court on December 9, 1991, seeking an injunction. As noted, after a bench trial, the district judge enjoined the Union from [1275]*1275disciplining any Heckett employee deemed to have crossed the Levy picket lines until the underlying action against the Union has been resolved. After we heard oral argument, an administrative law judge decided against the Union on the merits; the matter is now before the full Board.

II.

The threshold question in this case is what standard district courts should apply in deciding whether to issue injunctions to halt arguably unfair labor practices. The answer depends on what kind of behavior is being enjoined. In this instance, the Board alleges that Local 150 engaged in an illegal secondary boycott against Heckett and LTV. The National Labor Relations Act makes it illegal to “threaten, coerce, or restrain” one company with the object of putting pressure on a second company not otherwise involved in a strike. 29 U.S.C. §§ 158(b)(4)(i) and (ii)(B).

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Bluebook (online)
994 F.2d 1271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kinney-ex-rel-national-labor-relations-board-v-international-union-of-ca7-1993.