Mooresville Cotton Mills v. National Labor Relations Board

97 F.2d 959, 2 L.R.R.M. (BNA) 687, 1938 U.S. App. LEXIS 3904
Court of Appeals for the Fourth Circuit·Decided July 14, 1938·No. 4207·Published·Cited by 17 cases

Opinion

*961 SOPER, Circuit Judge.

After the opinion and the decree of the court had been filed in this case, 94 F.2d 61, we struck out the decree and granted a rehearing on the petition of the Labor Board. We had held that the business of the employer was subject to the provisions of the statute; and also, despite conflicting testimony, that there was sufficient evidence to support a finding of the Board that 8 men out of 1600 union and non-union employees, were refused reinstatement after a strike on account of their connection with or interest in the Union; but we modified the order of the Board with regard to 4 of the 8 men insofar as it directed the employer to offer them reinstatement to their former positions. This modification was based on the fact that each of the four men had subsequently obtained other employment seemingly equivalent to his former position and hence was no longer an employee entitled to reinstatement within our interpretation of Sections 2(3) and 10(c) of the statute, 29 U.S.C.A. §§ 152(3), 160(c). We, however, held it within the power conferred upon the Board to effectuate the policies of the Act to require the employer to make good to the four men any loss of pay suffered by them in the period between refusal of reinstatement and the obtainment of other employment.

We were led to believe by expressions in the opinion and findings of the Board that although the employment elsewhere obtained had been gotten after reinstatement had been refused, the order of reinstatement was not based on this sequence but on the fact that the new positions were not substantially equivalent to the old, and as the evidence did not seem sufficient to support such finding, we decreed a modification of the order. We have been told, however, in the petition for reargument, that we did not correctly understand the findings of the Board or its interpretation of the statute, and hence a rehearing was granted to afford opportunity for reconsideration of the questions involved. The contention is now clearly made that the Board has never passed on the equivalence of the new employment, because in its interpretation of the statute such employment, when obtained after the commission of an unfair labor practice by the employer, is irrelevant and does not deprive the Board of power to order a reinstatement. We accept this statement of the Board’s position and proceed to an examination of its interpretation of the Act.

The question arises in connection with the definition of the term “employee” set out in Section 2(3) of the Act and the use of the same term in Section 10(c) of the Act in describing the power conferred upon the Board to direct an employer who has engaged in unfair labor practice to take such affirmative action as will effectuate the policies of the Act. Section 2(3) provides that “when used in this Act [sections 151 to 166 of this title]— * * * the term ‘employee’ * * * shall include any individual whose work has ceased as a consequence of, or in connection with, any current labor dispute or because of any unfair labor practice, and who has not obtained any other regular and substantially equivalent employment * * * Section 10(c) provides that if the Board shall be of opinion that an employer has engaged in unfair labor practice, the Board shall order him to cease and desist therefrom, “and to take such affirmative action, including reinstatement of employees with or without back pay, as will effectuate the policies of this Act [chapter].” Giving the word “employee” the significance which Congress has said it shall have when used in the Act, it would seem to be manifest that the power conferred upon the Board to order an offending employer to reinstate employees does not include former workmen who have obtained regular and substantially equivalent employment elsewhere.

But counsel for the Board suggest an interpretation of the word “employees” as used in the phrase “reinstatement of employees” in Section 10(c) of the Act which varies with the circumstances of the particular case, basing this conclusion upon the following line of argument:

The word “employees” is ambiguous because no point of time is designated and we are not told when the other disqualifying employment must have been obtained. Such employment may be obtained before or after the happening of any of the following events, to wit: the commission of an unfair labor practice by the employer, the hearing before the Board, the order of the Board or the decree of the court; and since the Act does not specify which point of time is intended, the uncertainty must be solved in the light of the statutory purposes. When this is done it becomes clear that the word “employee” as used in Section 10(c), means a person who was in the employ of the offending employer when the unfair labor *962 practice occurred, and if so, it is immaterial that he may have subsequently obtained equivalent employment elsewhere. The power to reinstate a workman discharged or refused reemployment because of union sympathies is essential to the proper enforcement of the Act for two reasons — to protect the particular workman involved and also to protect'his fellow workmen in the exercise of the right to participate actively in the affairs of the body which they may choose as their representative in collective bargaining. The wronged employee should not lose the right to reinstatement when forced by necessity to secure other employment; and efficiency of the bargaining agency upon which his fellows depend should not be weakened and destroyed. If the interpretation contended for by the Board is not established, membership in the organization reckoned in number may be substantially impaired, services of active and experienced leaders may be lost and the morale of the whole body of employees may be shaken by fear and insecurity.

Moreover, the other interpretation will make it impossible to determine the propriety of reinstatement in a given instance upon the record in the case. The wronged employees may have obtained work elsewhere in the interval between the hearing before the trial examiner and the hearing before the Board or after the hearing and before the Board’s order, or after the order and before the hearing or decree of the court.

An initial difficulty that arises in the acceptance of this view is the fact that there is no ambiguity in the language under consideration when it is given its ordinary significance. If the definition of “employee” in Section 2(3), 29 U.S.C.A. § 152 (3), is read into the phrase in Section 10 (c), 29 U.S.C.A. § 160(c), that phrase becomes “including reinstatement of any individual whose work has ceased as a consequence of or in connection with any current labor dispute or because of any unfair labor practice and who has not obtained any other and substantially equivalent employment.” No limitation of the time of the other employment appears in this phraseology and no ambiguity is observable. In the absence of such a limitation, disqualification for reinstatement arises whenever an employee who has left his work accepts other employment; and the suggestion that the other disqualifying employment be limited to such as is secured before the commission of an unfair labor practice by the employer can be adopted only by reading into the statute something not expressed by Congress.

The courts may follow such a course when the literal application of a statute would lead to absurd results.

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Mooresville Cotton Mills v. National Labor Relations Board, 97 F.2d 959, 2 L.R.R.M. (BNA) 687, 1938 U.S. App. LEXIS 3904 (4th Cir. 1938).

97 F.2d 959 (Mooresville Cotton Mills v. National Labor Relations Board) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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