Local Union No. 48 of Sheet Metal Workers International Ass'n v. Hardy Corp.

218 F. Supp. 556, 53 L.R.R.M. (BNA) 2509, 1963 U.S. Dist. LEXIS 6947
CourtDistrict Court, N.D. Alabama
DecidedMay 21, 1963
DocketCiv. A. No. 10299
StatusPublished

This text of 218 F. Supp. 556 (Local Union No. 48 of Sheet Metal Workers International Ass'n v. Hardy Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local Union No. 48 of Sheet Metal Workers International Ass'n v. Hardy Corp., 218 F. Supp. 556, 53 L.R.R.M. (BNA) 2509, 1963 U.S. Dist. LEXIS 6947 (N.D. Ala. 1963).

Opinion

ALLGOOD, District Judge.

This is a suit for damages for the alleged violation of a provision of a collective bargaining agreement between an employer and a labor organization, representing employees within the Northern District of Alabama in an industry affecting commerce as defined in Chapter 7, Title 29 U.S..C. In addition, plaintiff demands enforcement of the provision allegedly violated by the defendant, and plaintiff demands a declaration of its rights under the terms of the provision under 28 U.S.C. § 2201. The case has been submitted to the Court on the pleadings, briefs, and on oral argument of counsel for the respective parties.

This Court has jurisdiction of the. cause under 29 U.S.C. § 185(a) and (c), and under 28 U.S.C. § 2201.

The defendant’s answer to the complaint included a counterclaim for damages, over which this Court has jurisdiction under 29 U.S.C. § 187(b), as amended.

[558]*558The provision of the collective bargaining agreement allegedly violated by the defendant corporation is a so-called “hot cargo” provision. By the terms of the provision, the employer agreed with the union that no work, of the nature specified in the collective bargaining agreement, would be subcontracted to any person who failed to agree in writing to comply with the terms of the collective bargaining agreement relating to conditions of employment.

The hot cargo clause was voluntarily and legally entered into by the parties under the construction industry proviso to 29 U.S.C. § 158(e) [Sec. 8(e), “Labor Management Relations Act”, 1947, as amended, 1959, hereinafter sometimes referred to as “L.M.R.A.”].

The defendant corporation allegedly violated the terms of the hot cargo provision by subcontracting certain work to a contractor who was not required to agree to abide by the terms of the collective bargaining agreement relating to conditions of employment.

There has been no picketing of the defendant corporation by the plaintiff, and no work stoppage has been induced by the plaintiff.

Apparently, the grievance procedure specified in the collective bargaining agreement has been complied with as far as possible. However, the only issue that was determined, if any, was that the defendant had violated the terms of the hot cargo provision.

The defendant, in its answer and counterclaim, contends, in part, that the hot cargo provision is unenforceable; and that the bringing of this lawsuit is unlawfully coercive, and therefore, an unfair labor practice — under 29 U.S.C. § 158(b) (4) (ii) (B), as amended [Sec. 8(b) (4) (ii) (B), “L.M.R.A”, 1947, as amended, 1959] — for which it is entitled to recover damages under 29 U.S.C. § 187, as amended [Sec. 303, “L.M.R.A.”, 1947, as amended, 1959],

The plaintiff has filed a motion to dismiss the counterclaim of the defendant and for summary judgment against the defendant.

The questions raised at this stage of the pleadings are as follows:

1. Whether a hot cargo agreement, which is otherwise valid under the construction industry proviso to Section 8 (e), “Labor Management Relations Act”, 1947, as amended, 1959 [29 U.S.C. § 158 (e), as amended], is enforceable by a legal proceeding, such as is here involved.

2. Whether the act of the union, in bringing this lawsuit against the employer, is an unfair labor practice. Specifically, whether the conduct in question amounts to a threat or coercion by the union, the object of which is to force or require the defendant to cease doing business with a subcontractor, within the purview of Section 8(b) (4) (ii) (B), “L.M.R.A.”, 1947, as amended, 1959 [29 U.S.C. § 158(b) (4) (ii) (B), as amended].

Hot cargo clauses are, in substance, either expressly or impliedly designed to prevent employers — with whom a union has entered into a collective bargaining agreement — from subcontracting work to non-union employers; or, as in this case, to prevent an employer from subcontracting work to any employer, who falls within the classification set forth in the collective bargaining agreement, without first having secured a promise from the subcontractor that it will abide by the terms of the collective bargaining agreement.

Prior to the 1959 amendments to the “Labor Management Relations Act” of 1947, such agreements were held to be valid, notwithstanding the argument, often advanced, that “hot cargo” clauses were, or would ultimately result in, a violation of Section 8(b) (4), “L.M.R.A.” of 1947 [29 U.S.C. § 158(b) (4)]. Local 1976, United Broth. of Carpenters and Joiners of America, AFL v. National Labor Relations Board, 357 U.S. 93, 78 S.Ct. 1011, 2 L.Ed.2d 1186 (1958) (Sand Door case). However, the agreement was valid only when it had been voluntarily entered into by the employer. It was held to be an unfair labor practice if the union used any of the means proscribed by Section 8(b) (4), supra, to [559]*559either acquire the hot cargo clause or to enforce the hot cargo clause. See Local 1976, United Broth. of Carpenters and Joiners of America, AFL v. National Labor Relations Board, supra, and cases there cited.

Prior to the 1959 amendments to the “L.M.R.A.”, Section 8(b) (4) (A), as here pertinent, provided that it shall be an unfair labor practice for a labor organization or its agents to engage in, or to induce or encourage the employees of any employer to engage in:

(1) A strike, or
(2) A refusal to use, manufacture, process, transport, or otherwise handle or work on any goods, etc., WHERE THE OBJECT OF SUCH CONDUCT IS:
(A) TO FORCE or require an employer or other person to cease doing business with any other person.

It seems, however, that any other means, not proscribed by Section 8(b) (4) could be employed by the union to enforce the agreement; Local 1976, United Broth. of Carpenters and Joiners of America, AFL Union v. National Labor Relations Board, supra; and, that there was nothing to prohibit the voluntary observance of such agreements.

In Carpenter’s Union (Sand Door), supra, the question was whether a hot cargo provision in a collective bargaining .agreement was a defense to a charge against a union of an unfair labor practice under 8(b) (4) (A) of the “L.M. R.A.”, as amended, 29 U.S.C. § 158(b) (4) (A).

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218 F. Supp. 556, 53 L.R.R.M. (BNA) 2509, 1963 U.S. Dist. LEXIS 6947, Counsel Stack Legal Research, https://law.counselstack.com/opinion/local-union-no-48-of-sheet-metal-workers-international-assn-v-hardy-alnd-1963.