Schultz v. National Labor Relations Board

284 F.2d 254, 109 U.S. App. D.C. 120
CourtCourt of Appeals for the D.C. Circuit
DecidedSeptember 15, 1960
DocketNos. 15238, 15303
StatusPublished
Cited by1 cases

This text of 284 F.2d 254 (Schultz v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schultz v. National Labor Relations Board, 284 F.2d 254, 109 U.S. App. D.C. 120 (D.C. Cir. 1960).

Opinions

BASTIAN, Circuit Judge.

These cases are before this court on the petition of Joseph J. Schultz to review and modify or set aside an order of the National Labor Relations Board (No. 15,238), and on petition of the National Labor Relations Board to enforce that order against The Grand Union Company, hereinafter referred to as the Company (No. 15,303). Pursuant to Rule 38 (k) of this court, 28 U.S.C.A., the parties, with the approval of this court, have stipulated the facts and issues following.

On January 17, 1957, Robert E. Gray filed with the National Labor Relations Board a petition under Section 9(c) of the National Labor Relations Act, 29 U.S.C.A. § 159(c), hereinafter referred to as the Act, in which he sought to be certified as the statutory bargaining representative of the employees in the Waterford, New York, warehouse of The Grand Union Company. Local 294 of the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, AFL-CIO, intervened, likewise seeking certification as bargaining representative of these employees. The Board thereupon directed and conducted an election to determine which, if either, the employees wished to be their collective bargaining representative. The employees were thus afforded the choice of Robert E. Gray, Local 294 or neither. Upon Gray obtaining a majority of the votes, he was, on August 19, 1957, certified by the Board as the bargaining representative of the employees.

On September 23, 1957, the Company and Gray executed a collective bargaining agreement which embodied therein a union security clause under Section 8(a) (3) of the Act, 29 U.S.C.A. § 158(a) (3). This clause, which is set forth in paragraph 1(b) of the agreement provides:

“Each employee, as a condition of employment, will thirty (30) days after his employment, or the effective date of this agreement, whichever is later, designate Robert E. Gray as his representative for collective bargaining purposes and shall continuously maintain said designation. On written notice from the representative that an employee who has been employed for more than thirty (30) days has failed to tender the periodic dues required as a condition of maintaining said designation, the Employer will discharge said employee within seven (7) days after receipt of such notice unless within such seven (7) days such employee’s failure to make such designation or to tender such dues is cured.”

At the time of the agreement, Gray had not filed the various documents required by Sections 9(f), (g) and (h) of the Act. These sections have since been repealed and Section 8(a) (3) has been amended by eliminating the requirement of compliance with those subdivisions of Section 9. Accordingly, the Board has moved to dismiss as moot its petition for enforcement, based on failure to comply with Section 9 (No. 15,303).

Subsequently, based upon charges filed by Joseph J. Schultz, a Grand Union employee, petitioner in No. 15,238, the Board’s Regional Office issued a complaint against the Company alleging, in material part, that it violated Sections 8(a) (1) and (3) of the Act by executing with Gray the collective bargaining agreement containing the union security clause, since Gray was not a “labor organization” within the meaning of Section 2(5), 29 U.S.C.A. § 152(5). (See infra) and 8(a) (3) of the Act.

[256]*256In his Intermediate Report the trial examiner concluded that Gray was not a labor organization within Sections 2(5) and 8(a) (3) and therefore the Company, by entering into, maintaining and enforcing its agreement with Gray, had violated those sections. The Board, however, upon reviewing the entire proceeding, concluded, in material part, that Gray was in fact a labor organization within both Sections 2(5) and 8(a) (3).

Throughout the Act it is quite apparent from the manner in which the terms “individual” and “labor organization” are disjunctively used that the drafters attempted to avoid confusion in the application and coverage of those terms. Thus in Section 2(1) the term “person” is defined as including “one or more individuals, labor organizations, * * Section 2(4) defines “representatives” as including “any individual or labor organization.” Section 8(d), wherein Congress defines the scope of the obligation to bargain collectively, again evidences the intention to distinguish the terms by referring to each separately. In Section 9(c) (1) (A), which authorizes both individuals and labor organizations to file either a petition for certification or de-certification, it is provided that the petition may be filed “by an employee or group of employees or any individual or labor organization acting in their behalf.” Again in Section 9(c) (1) (A) it is provided that a petition for decertifi-cation may be filed where it is alleged “that the individual or labor organization which has been certified or is being currently recognized by their employer as the bargaining representative, is no longer a representative.” Further, in Section 9(c) (1) (B), which authorizes an employer to institute a representation proceeding, again a distinction is drawn between the terms.

Finally, further evidence of Congress’ intention to distinguish the terms is found in the legislative history of Section 303 of the Labor Management Relations Act, 29 U.S.C.A. § 187, which section parallels Section 8(a) (3). Upon introducing this amendment, Senator Taft stated:

“The word ‘person’ in line 2 will be changed to read ‘labor organization’, so that suits in secondary boycotts may be brought only against labor organizations and not against individuals.” (93 Cong.Rec. 4843, Leg.His., op. cit. p. 1365)

Section 2(5) of the Act defines the term “labor organization” as follows:

“(5) The term ‘labor organization’ means any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.” (Emphasis supplied.)

In light of the fact that Congress chose to omit the word “individual” from the definition of “labor organization” and the frequency with which both terms are disjunctively used throughout the Act, a clear intention on the part of Congress to exclude the individual is indicated, at least insofar ,as the broad definition is concerned.1 Further, the phrase “in which employees participate” contemplates the group as a whole participating in the formulation of policy and procedures to be carried out in the organization, thus providing a democratic form of organization wherein the members have full voice and power to enforce their views.

We are, therefore, left with the single issue of whether the Board properly determined that Robert E. Gray, an individual, was a “labor organization” as the latter term is used in Section 8(a) (3) of the Act.2

[257]*257As the Board recently stated in the Keystone Coat, Apron & Towel Supply Company case:3

“We do not believe that it will be burdensome upon any party for the Board to insist upon compliance with the congressional policy as reflected in the union shop proviso of Section 8(a) (3) of the Act. This provision is among the most carefully considered and completely defined elements of the policy embodied in the Taft-Hartley Act.”

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284 F.2d 254, 109 U.S. App. D.C. 120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schultz-v-national-labor-relations-board-cadc-1960.