National Labor Relations Board v. Joint Council of Teamsters No. 38, Teamsters Union, Local No. 87, and Arden Farms Co.

338 F.2d 23, 57 L.R.R.M. (BNA) 2422, 1964 U.S. App. LEXIS 4047
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 29, 1964
Docket18952
StatusPublished
Cited by25 cases

This text of 338 F.2d 23 (National Labor Relations Board v. Joint Council of Teamsters No. 38, Teamsters Union, Local No. 87, and Arden Farms Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Labor Relations Board v. Joint Council of Teamsters No. 38, Teamsters Union, Local No. 87, and Arden Farms Co., 338 F.2d 23, 57 L.R.R.M. (BNA) 2422, 1964 U.S. App. LEXIS 4047 (9th Cir. 1964).

Opinion

BROWNING, Circuit Judge.

The National Labor Relations Board ■petitions for enforcement of its order directed against certain provisions of respondents’ collective bargaining agreement, which the Board held 1 to be in violation of section 8(e) of the National Labor Relations Act. 2

I

The first of the challenged provisions, article 5, section 1, provides that each respondent employer “agrees to refrain from doing business with any person engaged in the distribution of fluid milk or ice cream products who has not executed this agreement.”

Respondents contend that the agreement embodied in section 1 of article 5 is not forbidden by the language of section 8(e), and, moreover, that it is not the kind of agreement which Congress intended to prohibit.

A.

Respondents’ argument based upon the statutory language begins with a division of section 8(e) of the Act into two parts ■ — the first prohibiting an agreement by an employer to “cease or refrain from handling, using, selling, transporting or otherwise dealing in any of the products of any other employer”; the second prohibiting an agreement by an employer to “cease doing business with any other person.”

1. Respondents contend that the first of these prohibitory clauses is inapplicable to section 1 of article 5 for two reasons. First, they assert that the phrase *26 “any person” in this provision of their contract refers to individual truckers who have no employees, and argue that an agreement to refrain from doing business with such individuals is not an agreement to refrain from dealing in the products “of any other employer.” Second, they assert that the milk products involved are those of the respondent employer, and argue that there is thus no agreement to refuse to handle the products “of any other employer.”

As to respondents’ first contention, the record before the Board contained uncontradicted testimony that at least six to eight independent distributors doing business within the area affected by the collective bargaining agreement were in fact employers. The Board could properly conclude that the unqualified language of section 1 of article 5 applied to these distributors.

As to respondents’ second contention, we think the rationale of National Labor Relations Board v. Servette, Inc., 377 U.S. 46, 84 S.Ct. 1098, 12 L.Ed. 2d 121 (1964), requires that the term “products of any other employer” in section 8(e) be read to include services furnished by an employer performing a distribution function. 3 This conclusion is implicit in National Labor Relations Board v. Milk Wagon Drivers’ Union Local 753, 335 F.2d 326 (7th Cir. 1964). See also Bakery Wagon Drivers and Salesmen Local Union No. 484 v. National Labor Relations Board, 116 U.S.App. D.C. 87, 321 F.2d 353 (D.C.Cir. 1963); Highway Truck Drivers & Helpers Local 107 etc. v. National Labor Relations Board, 112 U.S.App.D.C. 312, 302 F.2d 897 (1962).

As the Supreme Court pointed out in Servette, “a primary target of the 1959 amendments was the secondary boycotts conducted by the Teamsters Union, which ordinarily represents employees not of manufacturers, but of motor carriers.” 377 U.S. at 55, 84 S.Ct. at 1104. Section 8(e) would fall short of achieving its purpose if the Teamsters Union and a trucking company could agree with impunity that the latter would not interchange traffic with a non-union trucking company, on the theory that the latter’s transportation service was not a “product.” Both Congressman Landrum and Congressman Griffin pointed to this type of agreement as illustrative of the wrong which Congress sought to remedy. 4

As noted in Servette, such terms as “produced” and “production” are commonly used in legislation to apply to the distribution of goods. 377 U.S. at 55-56, 84 S.Ct. 1098. The legislative history of section 8(e) is replete with references indicating that Congress meant to include all forms of economically productive effort within the term “product.” 5 Moreover, the language of the second clause of section 8(e) plainly includes services, and there is nothing in the legislative history to indicate that Congress intended the application of the two clauses to differ in this respect.

2. Even if the first clause of section 8(e) were inapplicable, section 1 of article 5 of respondents’ contract would fall within the language of the second prohibitory clause. Respondents’ contention to the contrary is premised upon the fact that the second clause of section 8(e) applies only to agreements “to cease” doing business, whereas sec *27 'tion 1 of article 5 is an agreement “to refrain” from doing business. Respondents offered evidence that the parties intended this contract provision to apply •only to future arrangements, and that no respondent-employer had been required to terminate existing arrangements with distributors.

Some commentators have accepted the •distinction which respondents draw, 6 but most have rejected it. 7 We are satisfied that the latter position is correct. The legislative history offers compelling evi•dence that Congress intended no difference in meaning in its use of “cease” and “cease and refrain” in the two prohibitory clauses of section 8(e).

Section 8(e) originated in a floor proposal, offered by Senator Gore, prohibiting agreements by unions and common •carriers by which the latter agreed to “cease or refrain from handling or transporting any of the products of any other •employer.” Senator McClellan expressed •concern that this language might be cir■cumvented by an agreement to refuse to ■do business with another employer. Such an agreement would effectively stop the transportation of that employer’s ■products, but would not fall literally within the description of an agreement to stop “handling or transporting” those products. To meet this problem, Senator Mc■Clellan suggested the addition of the language, or to cease doing business. The amendment was accepted. 8 Thus, the second prohibitory clause of section 8(e) was added for the sole purpose of avoiding a possible subject-matter limitation upon the agreements prohibited. Nothing in the legislative materials suggests that either House intended to limit the reach of this broadened, “catch-all” clause to agreements affecting existing business relationships.

“Cease” and “refrain” are commonly treated as synonymous, 9 and were so used throughout the legislative proceedings.

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338 F.2d 23, 57 L.R.R.M. (BNA) 2422, 1964 U.S. App. LEXIS 4047, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-joint-council-of-teamsters-no-38-ca9-1964.