Trailmobile Co. v. Whirls

331 U.S. 40, 67 S. Ct. 982, 91 L. Ed. 1328, 1947 U.S. LEXIS 2942
Supreme Court of the United States·Decided April 28, 1947·No. 85·Published·Cited by 153 cases

Opinions

Mr. Justice Rutledge

delivered the opinion of the Court.

This case, like Fishgold v. Sullivan Drydock & Repair Corp., 328 U. S. 275, presents a problem in the seniority standing of a reemployed veteran. It arises under § 8 of the Selective Training and Service Act of 1940.1 The Fishgold case held that under the Act a veteran is entitled to be restored to his former position plus seniority which would have accumulated but for his induction into the armed forces.2 Here the question concerns the duration of the veteran’s restored statutory seniority standing. The petitioners maintain that it ends with the first year of his reemployment. Respondent’s position is that it [42]*42lasts as long as the employment continues.3 A suggestion has also been made that occurrences taking place since the decision in the Circuit Court of Appeals may have rendered the cause moot.

The case is an aftermath of a general controversy over seniority rights which arose among the employees of two corporations following their consolidation on January 1, 1944. Because of the relation of the general controversy to this litigation a detailed statement of the facts becomes necessary. Prior to their consolidation the Highland Body Manufacturing Company had been a wholly owned subsidiary of the petitioner, the Trailmobile Company. The two corporations manufactured the same commodities in separate plants in Cincinnati, Ohio.4 During 1943 under the plan of consolidation the supplies, equipment and personnel of Highland were transferred gradually to the plant of Trailmobile. It took over the assets and business of Highland and assumed all its obligations. The employees of Highland were transferred to the payroll of Trailmobile as of January 1, 1944, when the consolidation became fully effective.5

[43]*43The employees of both companies had been affiliated with the American Federation of Labor. 51 N. L. R. B. 1106, 1108. At the time of the consolidation the Highland group, including respondent, claimed seniority with Trailmobile as of the dates of their employment by Highland. The former Trailmobile employees opposed this, maintaining that the Highland personnel should be considered as new employees of Trailmobile, with seniority dating only from January 1, 1944. This dispute was submitted to national representatives of the A. F. of L. They decided in favor of the Highland group.

The former Trailmobile employees were dissatisfied with this decision. They outnumbered the Highland claimants about ten to one. Accordingly, reorganizing as a unit of the Congress of Industrial Organizations, they requested recognition as the exclusive bargaining agent of Trailmobile’s employees, including the Highland transferees. An election was held under the auspices of the National Labor Relations Board, in which the new C. I. 0. local was chosen as bargaining representative for a unit composed of both groups.6

Trailmobile accordingly negotiated with the C. I. 0. and in July, 1944, a collective bargaining agreement was concluded, effective as of June 21,1944. It provided that the seniority rights of former Highland employees should be fixed as of January 1, 1944, regardless of the dates of their original employment by Highland.

Respondent Whirls had been in Highland’s employ from 1935 to 1942, when he entered military service. He was [44]*44honorably discharged and returned to his work with Highland in May, 1943.7 He was thus among the employees transferred from Highland to Trailmobile as of January 1, 1944, whose seniority was reduced so as to start as of that date by the July, 1944, collective agreement with the C.I.O.

The Highland group contested the agreement’s validity in the Ohio courts in a class suit brought July 17, 1944, by Hess, one of their number, on behalf of himself and 178 others similarly situated. These included 104 persons actually at work, veterans and nonveterans, among whom was Whirls, and 74 employees then in the armed forces. The petition alleged that Trailmobile then had about 500 employees in military service, of whom apparently some 426 were outside the Highland group.

The theory of the class suit was that, although the plaintiffs were not then members of the C. I. 0., the collective bargaining agent was the representative of all employees in the unit and hence could not legally deprive a minority of the employees which it represented of their accrued seniority and other rights by any collective agreement with the company.8 The petition alleged that the collective agreement arbitrarily and unlawfully deprived the plaintiffs of their “vested individual rights” and asked mandatory injunctive relief restoring each to seniority status as of the date of his employment by [45]*45Highland. The company and the collective agent stood upon the terms of the collective agreement and the agent’s authority as certified representative to make it as justifying the action taken under it.

The Ohio courts held against the plaintiffs in the action, sustaining the position of the company and the union.9 They held in effect that the seniority rights in issue arose exclusively from contract, making no reference whatever to § 8 of the Selective Training and Service Act or any question relating to it;10 that the company and the collective representative were lawfully empowered to enter into the contract fixing those rights as of January 1,1944; that the trial court was not authorized, in its own language, “to contract for the plaintiff[s] or make a new contract,” since that powder “exists only in the exclusive bargaining agent, under the provisions of the National Labor Act so long as that agent acts within the law.” 11

Accordingly the suit was dismissed. The record here does not disclose the date of the trial court’s judgment. But its decision was affirmed by the Ohio Court of Appeals before October 2, 1945, when the union’s answer was filed in the present cause; and the case had been finally determined against the plaintiff’s claims by the Supreme Court of Ohio prior to October 15, 1945.12

The record is not entirely clear concerning the exact character and sequence of events between July 15, 1944, [46]*46when Whirls and other former Highland employees were notified that their seniority status would be changed, and September 18, 1945, when the present suit was filed in the District Court. Apparently, after the notice was given, Selective Service officials intervened in behalf of Whirls and other veterans,13 although his allegation that his seniority was restored as a result of that intervention was denied both by the company and by the union. There is ambiguity also concerning whether the closed-shop provision appeared in the 1944 agreement or only in the 1945 one between the company and the C. I. 0. The facts of record, however, are more consistent with the view that it was not introduced until the latter year.

At any rate, in June or July, 1945, Whirls joined the C. I. 0. union, thus complying with the closed-shop provisions of the collective agreement.

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Trailmobile Co. v. Whirls, 331 U.S. 40, 67 S. Ct. 982, 91 L. Ed. 1328, 1947 U.S. LEXIS 2942 (1947).

331 U.S. 40 (Trailmobile Co. v. Whirls) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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