National Labor Relations Board v. New York Merchandise Co.

134 F.2d 949, 12 L.R.R.M. (BNA) 578, 1943 U.S. App. LEXIS 3724
CourtCourt of Appeals for the Second Circuit
DecidedMarch 15, 1943
StatusPublished
Cited by40 cases

This text of 134 F.2d 949 (National Labor Relations Board v. New York Merchandise Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second 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. New York Merchandise Co., 134 F.2d 949, 12 L.R.R.M. (BNA) 578, 1943 U.S. App. LEXIS 3724 (2d Cir. 1943).

Opinion

L. HAND, Circuit Judge.

The respondent moves to refer back to the Labor Board a proceeding which is before us on the Board’s motion to enforce one of its orders of the usual form. The order, entered on June 19, 1942, found the respondent guilty of unlawful discrimination in discharging two of its employees whose reinstatement with back pay the Board directed as affirmative relief. Since the order was entered one of the two has been taken into the military service, and— his back pay having been adjusted to his satisfaction — nothing further remains to be done as to him. As to the other, named Slotkin, the parties have been unable to agree. The respondent alleges that since November 22, 1941, it has had no position available of the same grade and seniority as that which Slotkin held when he was discharged, and for which alone he was fitted. It therefore denies any liability except from the day of his discharge, July 11, 1941, to that when in any event its business necessities would have required it to discharge him, November 22, 1941; and it alleges that it has already tendered to him the money which it owes him for back pay during that period. For this reason it moved the Board for leave to adduce evidence upon these issues, and for a decision upon them before the Board should move for enforcement of its order. This motion the Board denied, and thereupon moved to enforce the order as it stands. The respondent does not challenge any other provision of the order, and is ready otherwise to consent to the issuance of an enforcement order; but it now moves, under Sec. 10(e) of the Act, 29 U.S.C.A. § 160(e), that we remand the proceeding so as to compel the Board to hear the issues.

We have undoubted jurisdiction under Sec. 10(e) to refer back any issues to the Board when satisfied that there is “additional evidence” which is “material,” and the failure to “adduce” which was “reasonable.” We are satisfied that in the case at bar the failure was “reasonable,” because of the Board’s refusal to hear the evidence, so that the only question is whether it was proper to defer that question until the entry of an enforcement order, and what should be the procedure thereafter. It has been, as we understand, the custom of the Board not to consider the amount of back pay until its order has been affirmed or “enforced”; and we approved of this course in Marlin-Rockwell v. N. L. R. B., 2 Cir., 133 F.2d 258. It is obviously convenient to wait until the question of unlawful discrimination has been definitively settled either by an order of the court or otherwise, before the Board takes up the amount of back pay, for its decision will turn out to be moot so far as its order is reversed. Nevertheless, certain consequences follow from this custom which we think have not yet been fully realized.

Two questions are involved: the amount of Slotkin’s back pay and whether there is a place still open for him. These two to some extent overlap, because the amount of his back pay must be determined in part by the length of the time during *952 which he would have been employed, and that necessarily involves deciding whether he is still entitled to employment, or if not till now, then on what day he would have ceased to be so entitled. We start with the premise that Sec. 10(c) makes'the fixing of back pay a part of that “affirmative relief” which is. confided solely to the Board; so that no court should assume the duty, whether directly or through a master; we have as little power over it as over “equivalent employment.” Phelps Dodge Corp. v. N. L. R. B., 313 U.S. 177, 61 S.Ct. 845, 85 L.Ed. 1271, 133 A.L.R. 1217. At some stage in the proceeding the Board must therefore fix it as an original tribunal and not as the surrogate of the court. However, in so performing this duty the Board must, as upon other issues, give the employer a hearing at which he may “adduce” his evidence and be allowed to present his arguments; and until such a hearing has been had and a decision rendered fixing the amount, the employer cannot be guilty of contempt, because it is cardinal in that subject that no one shall be punished for the disobedience of an order which does not definitely prescribe what he is to do. McFarland v. United States, 7 Cir., 295 F. 648, 650; In re Olsen, 2 Cir., 70 F.2d 253; National Labor Relations Board v. Bell Oil & Gas Co., 5 Cir., 99 F.2d 56; Berry v. Midtown Service Corp., 2 Cir., 104 F.2d 107, 111, 122 A.L.R. 1341. So far as an enforcement order directs back pay to discharged employees it cannot therefore be interpreted as peremptory in the sense that will support a proceeding to punish for contempt. Pro tanto it is interlocutory, though it is final as to any of its other provisions that require no further definition. We cannot delegate to the Board power to fill in the amount of the back pay as a merely ministerial duty.

Since we must so interpret an enforcement order, if it is to be valid, the objection of the respondent that it will subject him to punishment, disappears. He cannot be so subjected until the back pay is fixed after a hearing and we have incorporated the amount so fixed into our own order. This procedure should involve no greater delay than to proceed through a master as for a contempt; and even if it did, it would still be a necessary consequence of deferring the issue until after an enforcement order is entered. Therefore, although such an order is a condition precedent to the respondent's motion, after one has been entered it may take an order under Sec. 10(e), referring to the Board the issue of Slotkin’s back pay: not as part of a proceeding for contempt, but as part of the Board’s duty to complete, or make final, what it very properly left undecided in its first order.

This disposes of the application, so far as it concerns back pay, but it does not necessarily dispose of the issue of reinstatement. As we have said, these two issues overlap because back pay cannot be measured until the duration of the reinstated employment has been determined; but that must be determined independently. If the Board’s order commanding Slotkin’s reinstatement is to be read as peremptory and unconditional, the respondent will be subject to punishment as for contempt unless, it reinstates him immediately upon the entry of an enforcement order. We are not informed whether the Board in directing reinstatement hears the employer as to whether at the date of its order the job would still be open — assuming that all unlawful discrimination were absent. We assume that it does not, since the same reasons which justify deferring the liquidation of back pay, apply with equal force to reinstatement. If so, so far as its order-grants that relief, it is to be interpreted, as meaning no more than that reinstatement — like back pay — is a remedy appropriate to restore the situation to that which the law demands; but it leaves for future decision whether if the employee had not been discharged, he would have kept his job to the date of the order; or if not till then, how long he would have kept it.

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134 F.2d 949, 12 L.R.R.M. (BNA) 578, 1943 U.S. App. LEXIS 3724, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-new-york-merchandise-co-ca2-1943.