Watkins v. United Steel Workers, Local No. 2369

516 F.2d 41, 34 A.L.R. Fed. 1, 10 Fair Empl. Prac. Cas. (BNA) 1297, 1975 U.S. App. LEXIS 13671, 10 Empl. Prac. Dec. (CCH) 10,319
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 16, 1975
DocketNo. 74-2604
StatusPublished
Cited by1 cases

This text of 516 F.2d 41 (Watkins v. United Steel Workers, Local No. 2369) 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
Watkins v. United Steel Workers, Local No. 2369, 516 F.2d 41, 34 A.L.R. Fed. 1, 10 Fair Empl. Prac. Cas. (BNA) 1297, 1975 U.S. App. LEXIS 13671, 10 Empl. Prac. Dec. (CCH) 10,319 (5th Cir. 1975).

Opinion

RONEY, Circuit Judge:

This employment discrimination case presents two new tandem issues of topical economic concern, not previously decided by this Court. First, given the fact that an employer discriminated in hiring prior to but not after the effective date of Title VII of the Civil Rights Act of 1964, does the use of employment seniority to determine the order of layoff of employees violate either Title VII or 42 U.S.C.A. § 1981. Second, in such circumstances, does the use of employment seniority to determine the order of recall of employees violate either Title VII or § 1981. The District Court for the Eastern District of Louisiana held that these “last hired, first fired” and the “last fired, first rehired” provisions of the negotiated seniority system, although facially nondiscriminatory, were unlawful because the application of these provisions perpetuated the effects of the Company’s earlier discriminatory practices. Watkins v. United Steel Workers of America v. Local No. 2369, 369 F.Supp. 1221 (E.D.La.1974). On appeal, we reverse and hold that, in the case at bar, the use of employment seniority to determine the order of layoff and recall of employees does not violate the provisions of either Title VII or § 1981.

The named and class plaintiffs are black employees of Continental Can Company’s Harvey, Louisiana, plant, presently laid-off under the allegedly discriminatory layoff and recall procedures embodied in the collective bargaining agreement. They were all hired under nondiscriminatory employment practices and were in their rightful place of employment prior to layoff. The defendants are the employer, Continental Can Company, Inc., and the union, Local 2369, United Steelworkers of America, AFL-CIO.

The essential facts are undisputed. The Company’s plant in Harvey, Louisiana, has been in operation for many years, but, with the exception of two blacks who were hired during World War II, only whites were hired at this plant until 1965. At the end of 1966, there were three black employees, including the original two, out of 410 hourly employees. The Company began hiring more black workers in 1967 and 1968, and hired blacks to a substantial degree in the years 1969, 1970 and 1971. At one point in 1971 there were, according to the Company, over 50 blacks among a total of 400 hourly employees.

Beginning in 1971 and continuing through 1973, there was a substantial cutback in employment at the Harvey plant. By April of 1973, there remained only 152 hourly employees. Pursuant to the terms of the collective bargaining agreement, layoffs are made on the basis of total employment seniority; the last man to be hired is the first to be laid-[44]*44off. Laid-off employees are placed on a recall list and are reemployed, as needed, in the reverse order of the layoffs. In other words, the most senior employee on recall is the first to be reemployed. The collective bargaining agreement provides that an employee’s seniority rights for the purposes of recall terminate after a minimum of two years or a maximum of five years, depending upon the employee’s length of service.

These contract provisions were followed in making the layoffs at the Harvey plant, which layoffs have affected employees who were hired as early as 1951. As a necessary result, all of the black employees hired after 1965 were laid-off, and the Company’s present work force is again all-white, except for the two blacks hired in the 1940’s. The first 138 persons presently on the recall list are white.

In June of 1973, plaintiffs filed in this suit, instituted in June 1970, a motion for partial summary judgment, requesting the district court to declare the layoff and recall procedures embodied in the collective bargaining agreement between defendants to be illegal under both Title VII and 42 U.S.C.A. § 1981. Concluding that the application of a negotiated system of plant seniority to determine the order of layoff and recall of employees was unlawful in the case at bar, the district court granted plaintiffs’ motion. The court reasoned that, because of the discriminatory hiring practiced by the Company at least up until 1963, blacks as a class had been precluded from gaining plant seniority. The district court therefore held that application of the presently-neutral seniority system violated both Title VII and § 1981 by perpetuating the effects of the Company’s earlier discriminatory practices. Watkins v. United Steel Workers of America, Local No. 2369, 369 F.Supp. 1221 (E.D.La.1974).

On May 14, 1974, the district court entered an unreported judgment effecting its decision. In general, the court required the following:

(a) That the Company immediately reinstate a sufficient number of black employees to achieve the ratio of black-white employment at the Harvey plant as it existed in 1971;
(b) That the Company give back pay to those black employees ordered reinstated;
(c) That no white person currently employed be laid off to make room for the recalled black employees;
(d) That all employees be paid for forty hours’ work per week even if the number of hours worked is less than forty;
(e) That future layoffs be allocated among employees in accordance with the black-white ratio in the work force at the time of the layoffs;
(f) That laid-off employees not immediately recalled be classified by race and that all future recalls be made on a one-for-one basis until all laid-off black employees have been recalled;
(g) That, after all laid-off employees have been recalled, the Company hire blacks exclusively until the percentage of black employees on the work force reaches that which existed in 1971.

The defendants appeal from this judgment, which was suspended pending appeal by order of the district court.

Holding

Confronting a case of first impression in this Court, the field of law addressed by this case being active and developing, we state our precise holding lest the recited reasons by which it was reached be conceived to narrow or broaden the precedent here established.

We hold that, regardless of an earlier history of employment discrimination, when present hiring practices are nondiscriminatory and have been for over ten years, an employer’s use of a long-established seniority system for determining who will be laid-off, and who will be rehired, adopted without intent to discriminate, is not a violation of Title [45]*45VII or § 1981, even though the use of the seniority system results in the discharge of more blacks than whites to the point of eliminating blacks from the work force, where the individual employees who suffer layoff under the system have not themselves been the subject of prior employment discrimination.

This puts the Fifth Circuit in line with the Third and Seventh Circuits, the only other Court’s of Appeal which have focused on the issue. Jersey Central Power & Light Co. v. Local 327, IBEW, 508 F.2d 687 (3rd Cir. 1975); Waters v. Wisconsin Steel Works, 502 F.2d 1309 (7th Cir. 1974). Contrary decisions have been reached by district courts other than the one from which this appeal is taken. See Schaefer v. Tannian, E.D.Mich., 394 F.Supp. 1136 (1975); Delay v. Carling Brewing, 9 E.P.D. § 9877 (N.D.Ga.1974).

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516 F.2d 41, 34 A.L.R. Fed. 1, 10 Fair Empl. Prac. Cas. (BNA) 1297, 1975 U.S. App. LEXIS 13671, 10 Empl. Prac. Dec. (CCH) 10,319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watkins-v-united-steel-workers-local-no-2369-ca5-1975.