Waterfront Commission v. Construction & Marine Equipment Co.

928 F. Supp. 1388, 1996 U.S. Dist. LEXIS 8703, 1996 WL 339759
CourtDistrict Court, D. New Jersey
DecidedJune 18, 1996
DocketCiv. 95-3067(WHW)
StatusPublished
Cited by9 cases

This text of 928 F. Supp. 1388 (Waterfront Commission v. Construction & Marine Equipment Co.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waterfront Commission v. Construction & Marine Equipment Co., 928 F. Supp. 1388, 1996 U.S. Dist. LEXIS 8703, 1996 WL 339759 (D.N.J. 1996).

Opinion

OPINION

WALLS, District Judge.

The Waterfront Commission of New York Harbor (“Commission”) has applied for a *1392 preliminary injunction restraining Construction and Marine Equipment Co., Inc. (“CME”) from performing certain activities that allegedly violate the Waterfront Commission Act, N.J.S.A. § 32:23-1 et seq. (the “compact”). 1 Pursuant to N.J.S.A. § 32:23-90, the Commission seeks to enjoin CME from performing services as a stevedore without being licensed, as required by N.J.S.A. § 32:23-19; employing persons to perform the services of longshoremen and checkers who are not included in the longshoremen’s register, required by N.J.S.A. § 32:23-27 and -105; and employing persons as pier superintendénts or hiring agents without those employees having first obtained a license, as required by N.J.S.A. § 32:23-12. The defendant, CME, offers several defenses.

For reasons discussed below, the Court grants the Commission’s application for a preliminary injunction.

I. Background

In June 1953, the legislatures of New Jersey and New York adopted identical statutes creating the Waterfront Commission, a bi-state instrumentality. N.J.S.A. § 32:23-1 et seq.; N.Y. Unconsol. Laws § 9801 et seq. (McKinney). Plaintiff, the Commission, was formed to seek to eliminate racketeering and other criminal, corrupt and evil labor conditions on the waterfront of the Port of New York District. Reporting for work, large groups of longshoremen would appear at “shape ups.” To get work, they would have to pay kickbacks, gamble with a particular person, or borrow at usurious rates from designated lenders. These practices not only “depress[ed] and degrad[ed]” waterfront labor, as Article I of the compact put it, but also were criminal or led to crime.

As required by Article I, § 10 of the United States Constitution, the compact was submitted to Congress for its consent. On August 12,1953, consent was given. Pub.L. No. 83-252, 67 Stat. 541 (1953). This, though, was no mere approval. Congress not only consented to “all of [the compact’s] terms and provisions,” but also pre-approved “the carrying out and effectuation of said compact, and enactments in furtherance thereof.” In addition, the compact states that

[a]mendments and supplements to the compact to implement the purposes thereof may be adopted by the action of the Legislature of either State concurred in by the Legislature of the other.

N.J.S.A. § 32:23-70.

Mainly, the supply of waterfront labor would be regulated by a longshoremen’s register. 2 This register would include “all qualified longshoremen eligible.” N.J.S.A. § 32:23-27. And after December 1, 1953, no person could work as a longshoreman within the Port of New York district unless his name was on the register, and no person could employ someone to work as a longshoreman in the district unless that worker was registered. The register was meant to ensure that the supply of waterfront labor did not outstrip demand, and thus remove the vulnerability of laborers to unscrupulous hiring practices.

A primary, duty of the Commission is to maintain the longshoremen’s register. This responsibility, as contained in N.J.S.A. §§ 32:23-24 and -38, allowed the Commission to control the labor supply by adding or removing namés from the register. The Commission can eliminate individuals from the register who had not been working as longshoremen or looking for such work, and to include additional individuals “on a temporary basis to meet special or emergency needs.” See N.J.S.A. §§ 32:23-34 & -38.

In the early 1960s, new technological developments transformed the cargo transportation industry. The traditional labor-intensive methods of unloading break-bulk vessels gave way to more efficient methods such as containerization. Ships now regularly carry *1393 their goods in gigantic containers, which can be moved ashore by gigantic land-based cranes. Containerization has greatly reduced the need for longshoremen.

Recognizing this, in 1965, waterfront management and labor entered into a collective bargaining agreement that guaranteed ah annual income to waterfront laborers, regardless of the availability of work.

In 1966, the New Jersey and New York legislatures passed legislation to amend the compact. This legislation, signed into law by the governors of the two states, included § 5-p, which places control over the opening and closing of the register in the Commission. In New Jersey, § 5-p was codified as N.J.S.A. § 32:23-114:

[t]he commission shall suspend the acceptance of applications for inclusion in the longshoremen’s register for a period of 60 days after the effective date of this act. Upon the termination of such 60 days period the commission shall thereafter have the power to make determinations to suspend the acceptance of applications for inclusion in the longshoremen’s register for such periods of time as the commission may from time to time establish and, after any such period of suspension, the commission shall have the power to make determinations to accept applications, which shall be processed in the order in which they are filed with the commission, for such period of time as the commission may establish or in such number as the commission may determine, or both. Such determinations to suspend or accept applications shall be made by the commission on its own initiative or upon the joint recommendation in writing of stevedores and other employers of longshoremen in the Port of New York District----

N.J.S.A. § 32:23-114.

The statute then goes on to note that

[i]n administering the provisions of this section, the commission shall observe the following standards:

(a) To encourage as far as practicable the regularization of the employment of longshoremen;

(b) To bring the number of eligible longshoremen into balance with the demand for longshoremen’s services within the Port of New York District without reducing the number of eligible longshoremen below that necessary to meet the requirements of longshoremen in the Port of New York District;

(c) To encourage the mobility and full utilization of the existing work force of longshoremen;

(d) To protect, the job security of the existing work force of longshoremen;

(e) To eliminate oppressive and evil hiring practices injurious to waterfront labor and waterborne commerce in the Port of New York District, including, but not limited to, those oppressive and evil hiring practices that may result from either a surplus or shortage of waterfront labor;

(f) To consider the effect of technological change and automation and such other economic data and facts as are relevant to a proper determination.

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928 F. Supp. 1388, 1996 U.S. Dist. LEXIS 8703, 1996 WL 339759, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waterfront-commission-v-construction-marine-equipment-co-njd-1996.