National Labor Relations Board v. Lion Oil Co.

352 U.S. 282, 77 S. Ct. 330, 1 L. Ed. 2d 331, 1957 U.S. LEXIS 1566, 39 L.R.R.M. (BNA) 2296
CourtSupreme Court of the United States
DecidedJanuary 22, 1957
Docket4
StatusPublished
Cited by223 cases

This text of 352 U.S. 282 (National Labor Relations Board v. Lion Oil Co.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States 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. Lion Oil Co., 352 U.S. 282, 77 S. Ct. 330, 1 L. Ed. 2d 331, 1957 U.S. LEXIS 1566, 39 L.R.R.M. (BNA) 2296 (1957).

Opinions

Mr. Chief Justice Warren

delivered the opinion of the Court.

In this case we are called upon again to interpret § 8 (d) of the National Labor Relations Act, as amended.1 [284]*284See Mastro Plastics Corp. v. Labor Board, 350 U. S. 270. In particular we are concerned with §8 (d)(4), which provides that a party who wishes to modify or terminate [285]*285a collective bargaining contract must continue “in full force and effect, without resorting to strike or lockout, all the terms and conditions of the existing contract for a period of sixty days after . . . notice [of his wish to modify or terminate] is given or until the expiration date of such contract, whichever occurs later.” Since § 8 (d) defines the duty to bargain collectively, a violation of § 8 (d) (4) constitutes a refusal to bargain, an unfair labor practice for employers, §8 (a) (5), and unions, § 8 (b)(3). The last sentence of § 8 (d) contains an additional sanction: an employee who strikes within the specified 60-day period loses his status as an employee for the purposes of §§ 8, 9 and 10 of the Act. The sole question presented by the petition for certiorari is:

Whether the requirement of this Section is satisfied where a contract provides for negotiation and adoption of modifications at an intermediate date during its term, and a strike in support of modification demands occurs after the date on which such modifications may become effective — and after the 60-day notice period has elapsed — but prior to the terminal date of the contract.

We are told by the Solicitor General that the question is of major importance in the negotiation and administration of hundreds of collective bargaining agreements throughout the country; that there is a decided trend among unions and employers to execute contracts of longer duration than formerly and to include provisions for reopening to negotiate changes during the contract term.2 Because of the importance of the question, we granted certiorari, 350 U. S. 986, to review a decision of the Court of Appeals for the Eighth Circuit to the effect that § 8 (d) (4) bans strikes to obtain modifications of a [286]*286contract until the contract by its terms or by the action of the parties has terminated.

On October 23, 1950, respondent Lion Oil Co. and the Oil Workers International Union, CIO, entered into a contract which provided:

“This agreement shall remain in full force and effect for the period beginning October 23, 1950, and ending October 23, 1951, and thereafter until canceled in the manner hereinafter in this Article provided.
“This agreement may be canceled and terminated by the Company or the Union as of a date subsequent to October 23, 1951, by compliance with the following procedure:
“(a) If either party to this agreement desires to amend the terms of this agreement, it shall notify the other party in writing of its desire to that effect, by registered mail. No such notice shall be given prior to August 24, 1951. Within the period of 60 days, immediately following the date of the receipt of said notice by the party to which notice is so delivered, the Company and the Union shall attempt to agree as to the desired amendments to this agreement.
“(b) If an agreement with respect to amendment of this agreement has not been reached within the 60-day period mentioned in the sub-section immediately preceding, either party may terminate this agreement thereafter upon not less than sixty days’ written notice to the other. Any such notice of termination shall state the date upon which the termination of this agreement shall be effective.”

On August 24, 1951, the union served written notice on the company of its desire to modify the contract.3 Nego[287]*287tiations began on the contractual changes proposed by the union. The union members voted for a strike on February 14, 1952, but the strike, thrice postponed as negotiations continued, did not actually begin until April 30, 1952. The union never gave notice to terminate the contract as contemplated by the quoted contractual provision. Therefore, at all relevant times a collective bargaining agreement was in effect. On August 3, a new contract was executed, and the strikers began to return to work the following day. Certain actions of the company during the strike were the basis of unfair labor practice charges by the union upon which a complaint issued.

The Labor Board found that the company was guilty of unfair labor practices under §8 (a)(1), (3) and (5) of the Act. The company defended on the ground that the strike, because it occurred while the contract was in effect, was in violation of § 8 (d) (4). A majority of the Board rejected this defense, holding that

“The term 'expiration date’ as used in Section 8 (d)(4) . . . has a twofold meaning; it connotes not only the terminal date of a bargaining contract, but also an agreed date in the course of its existence when the parties can effect changes in its provisions.”

The Board held that since, under the contract in dispute, October 23, 1951, was such an “agreed date,” the notice given August 24 followed by a wait of more than 60 days satisfied the statute. The company was ordered to cease and desist and, affirmatively, to make whole employees found to have been discriminated against. 109 N. L. R. B. 680, 683.

On the company’s petition for review, the Court of Appeals set aside the Board’s order. 221 F. 2d 231. The court held that the “expiration date” of the contract was the date on which all rights and obligations under it would [288]*288cease; that the second notice required to bring about this termination not having been given, the strike violated § 8 (d) (4) and the strikers therefore lost their status as employees entitled to the protection of the Act.4

In Mastro Plastics Corp. v. Labor Board, supra, we had before us another provision of §8(d). What we said there in ruling out a narrowly literal construction of the words of the statute is equally apropos here. “If the above words are read in complete isolation from their context in the Act, such an interpretation is possible. However, Tn expounding a statute, we must not be guided by a single sentence or member of a sentence, but look to the provisions of the whole law, and to its object and policy.’ United States v. Boisdoré's Heirs, 8 How. 113, 122.” 350 U. S., at 285. Moreover, in Mastro Plastics we cautioned against accepting a construction that “would produce incongruous results.” Id., at 286.

That §8 (d)(4) is susceptible of various interpretations is apparent when § 8 (d) is read as a whole. Its ambiguity was recognized by the Joint Committee of Congress created by the very act of which § 8 (d) was a part to study the operation of the federal labor laws.5 Members of the National Labor Relations Board, the agency specially charged by Congress with effectuating the purposes of the national labor legislation, have expressed divergent views on the proper construction of § 8 (d) (4); none of them has taken the position adopted [289]

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Bluebook (online)
352 U.S. 282, 77 S. Ct. 330, 1 L. Ed. 2d 331, 1957 U.S. LEXIS 1566, 39 L.R.R.M. (BNA) 2296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-lion-oil-co-scotus-1957.