Vulcan Materials Company v. United Steelworkers of America, Afl-Cio, and United Steelworkers of America, Local Union No. 2176

430 F.2d 446
CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 18, 1970
Docket28359
StatusPublished
Cited by79 cases

This text of 430 F.2d 446 (Vulcan Materials Company v. United Steelworkers of America, Afl-Cio, and United Steelworkers of America, Local Union No. 2176) 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
Vulcan Materials Company v. United Steelworkers of America, Afl-Cio, and United Steelworkers of America, Local Union No. 2176, 430 F.2d 446 (5th Cir. 1970).

Opinions

LEWIS R. MORGAN, Circuit Judge:

This is an appeal from a judgment of the Northern District of Alabama for damages in the amount of $24,621.36 against the United Steelworkers of America, AFL-CIO (hereafter, the International) and its Local Union 2176 (hereafter, the Local, and referred to collectively as the Unions) in favor of the Vulcan Materials Company (hereafter, Vulcan), pursuant to Section 303 of the Labor Management Relations Act of 1947, as amended (hereafter, the Act), 29 U.S.C. § 187, as amended (1965).1 We affirm.

[450]*450Prior to December 29, 1967 Vulcan owned and operated a ready-mix concrete plant at Gadsden, Alabama, on premises immediately adjacent to premises on which it owned and operated a slag plant, which utilized raw materials received from a large blast furnace operation of the Republic Steel Corporation located nearby. On December 29, 1967 Vulcan sold all of its Concrete Products Division facilities in Alabama, Georgia, Florida, Maryland, North Carolina and Tennessee to Forman Ready-Mix Company, division of Kyle, Inc. (hereafter, Forman).

In the years preceding the disposition of Vulcan’s Concrete Products Division, the production and maintenance employees of Vulcan’s entire Gadsden facility, both the concrete plant and the slag plant, had been represented by the Unions and the same collective bargaining agreement covered both sets of employees. The contract expired by its terms on December 31, 1967. Negotiations were entered into between Vulcan and representatives of the Unions in early November, 1967. In the latter part of November, Vulcan made an oral commitment to sell its Concrete Products Division facilities to Forman, and its negotiators informed the Unions of the prospective sale on or about December 1, 1967. The Unions demanded that future negotiations with Vulcan regarding the slag plant employees be held jointly with its negotiations with Forman regarding the concrete plant employees. Vulcan rejected this demand and the negotiations between it and the Unions culminated on December 31, 1967 in a three-year collective bargaining agreement.

Sometime subsequent to December 1, 1967, the Unions entered into negotiations with Forman and when the collective bargaining agreement covering the concrete plant employees expired on December 31st without a new agreement having been reached, it was agreed that the Unions would continue to negotiate with Forman under a temporary arrangement whereby Forman agreed to adopt the terms and conditions of employment identical to those in the expiring contract until a new contract could be agreed upon. This arrangement was terminated by a strike that commenced at midnight, February 13, 1968, pursuant to a strike vote taken earlier among the Forman production and maintenance employees.

The strike was ostensibly against For-man and in support of the Union’s demands previously made during the collective bargaining negotiations with For-man. However, the Unions’ picket line was placed on an access road leading to both Forman’s and Vulcan’s plants, even though separate gates along the common access road had been designated for the employees of each to enter their respective places of employment, the two Vulcan employees were placed in charge of the picket line by the Unions. As a result of this and other conduct detailed below, the strike was totally effective against both Forman and Vulcan and remained so until the Unions reached an agreement with Forman and the strike ended on March 15, 1968. During this period, no Vulcan employee crossed the picket line to come to work, save for supervisory personnel, and, consequently, Vulcan’s slag operation at the Gadsden plant was virtually shut down.

The district court found, inter alia, that neither Forman nor Vulcan was a predominant customer of the other’s products; that they were engaged in different businesses, which produce different products; and that there was no interweaving or integration of economic fortunes of Vulcan and Forman, no overlapping of management functions and no actual common control of one by the other, or common ownership, and, therefore, that Vulcan was a neutral secondary employer. Further, the court found that the strike was conducted by both the Local and the International as a joint venture in violation of Section 8(b) (4) (ii) (B) of the Act, proximately causing damages to Vulcan in the amount of $24,621.-36.

I. Neutrality.

The central question in this appeal is whether the district court was clearly er[451]*451roneous in finding that Vulcan was a neutral secondary employer, that is, “any other employer” as that term is used in Section 8(b) (4) (i) and (ii) (B), so as to be entitled to the protection afforded by the Act.

It has been held that in order for an employer who is subject to a secondary boycott to avail himself of the protection afforded by the statute, it must be neutral and not affiliated or allied with the primary employer and that the neutrality of the secondary employer is destroyed and it is deemed to be an ally of the primary employer for the purposes of Section 8(b) (4) where there is actual common control exemplified by domination of the secondary employer by the primary employer, where there is an overlapping of management function, or where the economic fortunes of the two companies are inextricably interwoven, as, for example, where the secondary employer does substantially all his business with the primary employer or where there is a substantial integration of the two employers of the operational level. Sheet Metal Wkrs. Int. Ass’n., Loc. 223 v. Atlas Sheet Metal Co., 5 Cir., 1967, 384 F.2d 101; Truck Drivers & H. Local U. No. 728 v. Empire State Express, 5 Cir., 1961, 293 F.2d 414, cert. den. 368 U.S. 931, 82 S.Ct. 365, 7 L.Ed.2d 194. In the final analysis, however, the question of neutrality cannot be answered by the application of a set of verbal formulae. Rather, the issue can be resolved only by considering on a case-by-case basis the factual relationship which the secondary employer bears to the primary employer up against the intent of the Congress as expressed in the Act to protect employers who are “wholly unconcerned” and not involved in the labor dispute between the primary employer and the union.

Prior to December 29, 1967, Vulcan owned and operated both the slag plant and the concrete plant and the employees involved in the two operations were represented by the Unions in the same’bargaining unit. On December 29, 1967, Vulcan sold the slag operation to Forman, and as the district court noted, and resulting transfer of employees and operations from the one company to the other inevitably led to a certain overlap of functions on various levels and other complications making the determination of Vulcan’s status difficult.

Vulcan received nearly 60 percent of the purchase price of $10.8 million for its Concrete Products Division in cash and took a collateral installment note and a security interest in the transferred plants and equipment to cover the difference. The collateral installment note contains a provision requiring Vulcan’s written consent before Forman can make certain changes in its business operation, alter its structure, make loans, pay dividends, increase certain salaries, etc.2

Free access — add to your briefcase to read the full text and ask questions with AI

Related

T.H. Eifert, Inc. v. United Ass'n of Journeymen
422 F. Supp. 2d 818 (W.D. Michigan, 2006)
Leslie Ray Cox R.M. Cox Larry Driver Barry Nichols John Bullard Robert W. Kennedy, Jr. Lorenzo G. East Clarence M. Pope, Jr. C.R. Altes Jack E. Merrymon Terry P. West R.S. Arnold M.W. Milstead J.W. Wade Manning A.C. Snider Terry H. Melvin Thomas E. Hill Gary D. Swann Ronald E. Frazier Anthony J. Crapet Robert M. Green Heath L. McMeans III Billy Carter Joe A. Knight, George Boglin, Wardell Clark, Phillip L. Drummond, Don L. Flurry, Dennis R. Fulton, Dennis E. Jones, W.T. Mayberry, James R. Miller, Willie J. Nation, Oscar Lee Perry, Robert Poole, Brack Wells, Willie Young, Harry S. Turner v. Administrator United States Steel & Carnegie and United States Steel & Carnegie Pension Fund, United Steelworkers of America, Afl-Cio-Clc and Usx Corporation, A/K/A United States Steel Corporation, Leslie Ray Cox, R.M. Cox, Larry Driver, Barry Nichols, John Bullard, Robert W. Kennedy, Jr., Lorenzo G. East, Clarence M. Pope, C.R. Altes, Jack E. Merrymon, Terry P. West, R.S. Arnold, M.W. Milstead, J.W. Wade, A.C. Snider, Terry H. Melvin, Thomas E. Hill, Gary D. Swann, Ronald E. Frazier, Anthony J. Crapet, Robert M. Green, Heath L. McMeans Iii, Billy Carter, Joe A. Knight, George Boglin, Wardell Clark, Phillip L. Drummond, Don L. Flurry, Dennis R. Fulton, Dennis E. Jones, W.T. Mayberry, James R. Miller, Willie J. Nation, Oscar Lee Perry, Robert Poole, Brack Wells, Willie Young, Harry S. Turner v. Administrator United States Steel & Carnegie, United States Steel & Carnegie Pension Fund, Usx Corporation, A/K/A United States Steel Corporation
17 F.3d 1386 (Eleventh Circuit, 1994)
Cox v. Administrator United States Steel & Carnegie
17 F.3d 1386 (Eleventh Circuit, 1994)
Prater v. United Mine Workers of America
793 F.2d 1201 (Eleventh Circuit, 1986)
Sidney v. MacDonald
536 F. Supp. 420 (D. Arizona, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
430 F.2d 446, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vulcan-materials-company-v-united-steelworkers-of-america-afl-cio-and-ca5-1970.