Terrell v. United States Pipe & Foundry Co.

644 F.2d 1112, 25 Fair Empl. Prac. Cas. (BNA) 1262, 1981 U.S. App. LEXIS 13274, 26 Empl. Prac. Dec. (CCH) 31,856
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 14, 1981
DocketNos. 80-7107, 80-7256
StatusPublished
Cited by90 cases

This text of 644 F.2d 1112 (Terrell v. United States Pipe & Foundry Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Terrell v. United States Pipe & Foundry Co., 644 F.2d 1112, 25 Fair Empl. Prac. Cas. (BNA) 1262, 1981 U.S. App. LEXIS 13274, 26 Empl. Prac. Dec. (CCH) 31,856 (5th Cir. 1981).

Opinion

HATCHETT, Circuit Judge:

This appeal stems from a class action employment discrimination suit brought in 1972 under Title VII of the 1964 Civil Rights Act, 42 U.S.C. § 2000e-2(c), and section 1981 of the 1866 Civil Rights Act, 42 U.S.C. § 1981, by black employees at the Bessemer, Alabama plant of U.S. Pipe and Foundry Company against their employer and their union representatives.1 Due to pretrial settlements by the company and the electrical workers union, along with the agreement of all parties to a form of in-junctive relief and the postponement of trial on the allocation of any back pay liability, this litigation now focuses upon the alleged illegality of the Bessemer seniority system and any resulting liability on the part of five unions. These unions include one industrial union, the United Steelworkers of America (Steelworkers), Local 2140, and four craft unions: the Brotherhood of Boilermakers, Blacksmiths, Forgers, and Helpers (Boilermakers), Local 583; the International Association of Machinists & Aerospace Workers (Machinists), Lodge 359; the International Molders & Allied Workers Union (Molders), Local 342; and the Pattern Makers League of North America (Patternmakers), Birmingham Association.

Appellants, the class of black employees, challenge the decision of the trial court that all but one aspect of the Bessemer seniority system was bona fide within the meaning of § 703(h) of Title VII and thus immunized from attack as a seniority system whose discriminatory effects were unintended. See 42 U.S.C. § 2000e-2(h). In addition, appellants challenge the court’s procedural ruling that their charges filed with the EEOC in 1969 failed to name as respondents the international unions at the plant so as to permit any Title VII liability on [1115]*1115their part to commence 180 days prior to the filing of these charges. See 42 U.S.C. § 2000e-5(f)(l). One of the appellees, the Steelworkers, cross-appeals the refusal of the district court to excuse them from legal responsibility for the seniority system on the separate ground that this predominately black, industrial union actively opposed the largely white, craft unions in the establishment of a seniority system which worked to the disproportionate disadvantage of the Steelworkers. See 42 U.S.C. § 2000e-2(c)(3).

We agree with two of these three challenges. We hold that the seniority system at Bessemer was not bona fide under § 703(h), that the Steelworkers bear no legal responsibility for this discriminatory seniority system, but that the Internationals were insufficiently identified by the 1969 EEOC charges to trigger their Title VII liability at that time.

FACTUAL BACKGROUND

U.S. Pipe Co. has a plant in Bessemer, Alabama which manufactures pipe for water and sewage projects. Production and maintenance workers at the plant have elected as their bargaining representatives various craft unions associated with the American Federation of Labor, as well as the non-craft steelworkers union affiliated with the Congress of Industrial Organizations. The district court found that the craft unions represent workers in the higher-skilled, better-paying jobs from which employees have the opportunity to move up in the company. The Steelworkers union represents workers in the least desirable, “dead-end” jobs. The craft unions are virtually all white. The Steelworkers union is predominately black.

The district court also found that the racial division between the unions stems partly from the company’s historical practice of making job assignments on the basis of race. Discriminatory job assignments reflected the general racism which permeated all aspects of plant operations prior to 1965, from the segregation of employee facilities to the prevention of equal employment opportunities.

After passage of the 1964 Civil Rights Act, a major cause of continuing inequality was the seniority system in effect at the Bessemer plant until 1975. The overall seniority system was a composite of separate bargaining agreements negotiated by the company with each union. These agreements were similar, however, in providing that seniority would be measured on the basis of length of service in the applicable seniority unit, with seniority units generally defined by the bargaining units. With few exceptions, an employee who transferred to a new unit received no credit for service to the company in his prior unit. As recognized by the district court, this inhibition upon transfers disproportionately prejudiced those workers in the predominately black Steelworkers union who had been assigned to the least desirable, “dead-end” jobs. The appellants describe the discouraging effect of this system upon black advancement at the plant by pointing to the fate of one black employee who did transfer into a craft unit, losing twenty-six years of plant seniority, only to then lose his job completely as part of a reduction in plant employees which left on the job two white workers with just a few years of seniority in the craft unit. See our recent decisions in U.S. v. Georgia Power Co., 634 F.2d 929 (5th Cir. 1981), and Swint v. Pullman-Standard, 624 F.2d 525 (5th Cir. 1980), for descriptions of the discriminatory operation of seniority systems with “lock-in” provisions such as those at the Bessemer plant.

In the early years of plant operations, various craft unions attempted with little success to represent employees in negotiating a collective bargaining agreement. In 1939, six international unions competed strenuously to represent some or all of the employees at the plant. The Steelworkers, associated with the CIO, sought to represent all production and maintenance employees at the plant. Four unions affiliated with the AFL sought to represent employees based primarily upon their craft: the Boilermakers, Machinists, Patternmakers, and Electrical Workers. One other AFL [1116]*1116union, the Molders, claimed not only those employees skilled in that craft, but all other production and maintenance employees except those claimed by the other AFL unions.

Elections supervised by the NLRB resolved this confrontation between the newly formed CIO, with its strategy of heterogeneous, plant-wide industrial organization, and the older AFL, with its traditional approach of organizing separate, homogeneous craft unions. The Boilermakers, Machinists, Patternmakers, and Electrical Workers prevailed over the Steelworkers among these largely white craft employees. The Steelworkers defeated the Molders among the remaining, predominately black group of employees. “That the elections had racial implications cannot be doubted,” according to the district court.

Passage of the Taft-Hartley Act enabled the Molders to return to the Bessemer plant in 1949 to attempt “craft severance” from the industrial union represented by the Steelworkers. See 29 U.S.C.

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644 F.2d 1112, 25 Fair Empl. Prac. Cas. (BNA) 1262, 1981 U.S. App. LEXIS 13274, 26 Empl. Prac. Dec. (CCH) 31,856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terrell-v-united-states-pipe-foundry-co-ca5-1981.