New York Shipping Ass'n v. Waterfront Commission of New York Harbor

835 F.3d 344, 2016 WL 4525227
CourtCourt of Appeals for the Third Circuit
DecidedAugust 30, 2016
Docket14-3956, 14-3957, 14-3958, 14-4278, 14-4279, 14-4422
StatusPublished
Cited by12 cases

This text of 835 F.3d 344 (New York Shipping Ass'n v. Waterfront Commission of New York Harbor) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York Shipping Ass'n v. Waterfront Commission of New York Harbor, 835 F.3d 344, 2016 WL 4525227 (3d Cir. 2016).

Opinion

OPINION OF THE COURT

NYGAARD, Circuit Judge.

The District Court ruled that the Appel-lee, Waterfront Commission of New York Harbor (Commission or Waterfront Commission), 1 was within its statutory authority to require shipping companies and other employers to certify that prospective employees had been referred for employment pursuant to federal and state nondiscrimination policies. The District Court also rejected claims that the Commission had unlawfully interfered with collective bargaining rights, holding that such rights were not completely protected under the language of the Waterfront Commission Compact (Compact), which was entered into by the states of New Jersey and New York in 1953. We will affirm.

*348 I.

Factual and Procedural Background

This appeal takes us deep into the hiring practices and procedures utilized on the New York/New Jersey waterfront. We will start with some history, which to varying degrees, has been reported elsewhere. See, e.g., De Veau v. Braisted, 363 U.S. 144, 80 S.Ct. 1146, 4 L.Ed.2d 1109 (1960); Waterfront Comm’n of N.Y. Harbor v. Sea Land Serv., Inc., 764 F.2d 961 (3d Cir. 1985); Hazelton v. Murray, 21 N.J. 115, 121 A.2d 1 (1956); Waterfront Comm’n of N.Y. Harbor v. Constr. & Marine Equip. Co., Inc., 928 F.Supp. 1388 (D.N.J. 1996). Years of criminal activity and corrupt hiring practices on the waterfront were first brought to light in 1949 in a series of 24 articles published in the New York Sun by journalist Malcolm Johnson. Entitled “Crime on the Waterfront,” these articles won Johnson the Pulitzer Prize, and formed the basis for the 1954 film “On the Waterfront.” 2

Hiring practices on the waterfront also caught the attention of the New York State Crime Commission (Crime Commission), which issued a report in 1953 relating in detail the pervasive influence of crime and corruption on waterfront hiring practices. See Fourth Report of the New York State Crime Commission, N.Y.S. Leg. Doc. No. 70 (1953). The Crime Commission singled-out the “shape-up” hiring system for particular scorn. The term eon-notes a hiring method whereby the applicants appeared daily at the docks or other locations and a hiring boss would select those who would be given work. Id. at 37. 3 The foundation of this practice was the union foreman’s unfettered control over the process and his unchecked power to select whomever he desired for employment.

The Crime Commission report led to public hearings on its findings. Then-New York Governor Thomas E. Dewey held hearings, the goal of which was to come up with a legislative plan to address the Commission’s concerns. Representatives of the State of New Jersey were also present for and participated in these hearings. The “shape-up” hiring system was identified by the Commission as a vector for corruption and criminal practices on the docks. So as “to investigate, deter, combat and remedy” this criminality and corruption, the states of New Jersey and New York entered into the Compact in 1953. Gonzalez v. Waterfront Comm’n of N.Y. Harbor, 755 F.3d 176, 177 (3d Cir. 2014); see also N.J.S.A. § 32:23-1, et seq. Pursuant to Art. I., § 10 of the United States Constitution, Congress approved the Compact in August of 1953. 4 The Compact created the Waterfront Commission to, among other things, eliminate corrupt hiring practices on the waterfront. Waterfront Comm’n of N.Y. v. Elizabeth-Newark Shipping Inc., 164 F.3d 177, 180 (3d Cir. 1998) (citing Hazelton, 21 N.J. at 120- *349 23, 121 A.2d 1). In enacting the Compact, the legislatures of both states noted:

that the conditions under which waterfront labor is employed with the Port of New York district are depressing and degrading to such labor, resulting from the lack of any systemic method of hiring, the lack of adequate information as to the availability of employment, corrupt hiring practices, and the fact that persons conducting such hiring are frequently criminals and persons notoriously lacking in moral character and integrity and neither responsive or responsible to the employers nor to the uncoerced will of the majority members of the labor organizations of the employees; that as a result waterfront laborers suffer from irregularity of employment, fear and insecurity, inadequate earnings, an unduly high accident rate, subjection to borrowing at usurious rates of interest, exploitation and extortion as the price of securing employment.

N.J.S.A. § 32:23-2.

One way the Compact sought to rein in the corruption associated with hiring on the waterfront was by requiring the Commission to regulate longshoremen and stevedores. Employment Information Centers were to be operated by the Commission to handle all hiring of longshoremen. Further, the Compact charged the Commission with registering all individuals who were qualified to work as longshoremen and specifically provided that “no person shall act as a longshoreman within the Port of New York district unless at the time he is included in the longshoremen’s register.” N.J.S.A. § 32:23-27. The Compact also provided a definition of a longshoreman:

[ A] natural person, other than the hiring agent, who is employed for work at a pier or other waterfront terminal, either by a carrier of freight by water or by a stevedore (a) physically to move waterborne freight on vessels berthed at piers, on piers or at other waterfront terminals, .or (b) to engage in direct and immediate checking of any such freight or of the custodial accounting therefore, or in the recording or tabulation of the hours worked at piers or other waterfront terminals by natural persons employed by earners of freight by water or stevedores, or (c) to supervise directly and immediately others who are employed as in subdivision (a) of this definition.

N.J.S.A. § 32:23-6. This definition was expanded in 1957 to include workers who performed labor that was incidental to the movement of waterborne freight. N.J.S.A. § 32:23-85(6). A longshoreman who fits either the original or expanded definition was known as a “deep sea” longshoreman. 5 Further, the Compact gave the Commission the authority to license stevedoring companies that wanted to operate at the Port. A ‘stevedore,’ according to the Compact, is a contractor hired by a carrier of waterborne freight to move freight in ships that are berthed at piers, or at other waterfront terminals.

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835 F.3d 344, 2016 WL 4525227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-shipping-assn-v-waterfront-commission-of-new-york-harbor-ca3-2016.