United States Court of Appeals Second Circuit.: Nos. 389-391, Docket 27544, 27550, 27560
United States Court of Appeals Second Circuit.: Nos. 389-391, Docket 27544, 27550, 27560
2d 89
Roman Beck of Krisel, Beck & Taylor, New York City (Arthur Karger,
New York City, of counsel, on the brief), for petitioners Harbor Carriers
of the Port of New York.
Christopher E. Heckman of Foley & Martin, New York City (James S.
Reardon, New York City, of counsel, on the brief), for petitioners
Gallagher Bros. Sand & Gravel Corp., Bilkay Holding Corp., Hampton
Scows, Inc., Neptune Line, Inc., and Rockville Scows, Inc.
Richard L. Newman of Kanner, Hannan & Newman, New York City
(William J. Hannan, New York City, of counsel, on the brief), for
respondent Deck Scow Captains, Local 335, United Marine Division,
National Maritime Union, AFL-CIL.
For a number of years the employers have had collective bargaining agreements
with Deck Scow Captains Local 335, United Marine Division, National
Maritime Union, AFL-CIO, as representatives of their employees working on
scows.1 The most recent of these agreements was executed in 1959 for a period
to end on March 31, 1961.
At a membership meeting of Local 335 held on May 15, 1960, a motion was
adopted providing for a special meeting to be held on May 29, 1960 for the
purpose of discussing the disaffiliation of Local 335 from the United Marine
Division of the National Maritime Union.
At the meeting which was held on May 29 'about' 130 of those in attendance
voted for disaffiliation and 'about' 14 against. The Local had at that time
approximately 750 members.
terms of the collective agreement. The employers, on their side, have acceded
to these demands and have recognized and dealt with that Local.
6
After the disaffiliation vote of May 29, representatives claiming to act for
'Local 335, Independent' also wrote to the employers informing them of the
action which had been taken and from time to time thereafter demanded that the
employers deal with that Local. The employers refused to do so and continued
to bargain with Local 335, United Marine Division.
It is the employers' refusal to deal with Local 335, Independent, which is the
gravamen of the Board's complaint. (Section 8(a)(5), 29 U.S.C.A. 158(a)(5).)
The other charges which the Board sustained, and the rusulting orders, are all
based upon the charge of refusal to bargain. Since if that charge falls the rest
must follow, we shall deal only with the charge of refusal to bargain.
The Board concedes the correctness of these propositions but seeks to escape
their consequences by holding that Local 335, Independent, was a continuation
of Local 335, United Marine Division, and that therefore no change in
bargaining representatives took place. The decision thus turns entirely upon the
ocrrectness of the finding that Local 335, Independent, is, under a new name,
the same organization as Local 335, United Marine Division.
10
It is true that the Board claims that the application or waiver of the contract bar
rule is a matter of discretion for the Board to determine and that it 'may be
applied or waived as the facts in a given case may require in the interests of
effectuating the policies of the Act'5 and that this position has been approved by
the courts.6 In the present case the Board did not purport to waive the contract
bar rule, nor is there any indication that such a waiver would effectuate the
policies of the Act. Moreover, the accepted signficance of waiver of the
contract bar rule is that an election will be held for the purpose of choosing
between the old and a new representative, not that the employer will be guilty
of an unfair labor practice for refusing to bargain with a new organization
claiming the right to represent.7 In fact it would be entirely arbitrary and
unreasonable for the Board, waiving the contract bar rule for the purposes of
this case, to hold the employers guilty of an unfair labor practice for bargaining
with the union with which they had contracts and with which, therefore, they
had every reason to believe that they were required to bargain.
12
But if, in spite of these considerations, it could be held that the Board exercised
its discretion to waive the contract bar rule, the Board would still not be
justified, absent an election, in finding the employers guilty of refusing to
bargain with a new representative unless that finding was based upon evidence
that the employers did not have a 'good faith doubt' that the new organization
represented a majority of the employees. N.L.R.B. v. Philamon Labs., 298 F.2d
176, 179 (2d Cir. 1962); N.L.R.B. v. Jackson Press, Inc., 201 F.2d 541, 544
(7th Cir. 1953). In the present case, not only did Local 335, Independent, fail to
present any adequate evidence of majority representation, but there is no
finding as to good faith since the Trial Examiner, whose findings, concllusions
and recommendations were adopted by the Board, refused to pass upon that
issue, stating that the employers' 'motives or good faith are not material.'Thus it
is clear that support for the Board's conclusion, if it has any basis in law, must
rest solely and entirely on the finding that Local 335, Independent, was a
continuation under a new name of Local 335, United Marine Division, and not
a new organization claiming the right to represent the employees.
13
In examining the evidence on which the Trial Examiner reached his conclusion,
we will accept his premise that a mere change in a labor organization's name or
affiliation will not serve to change the identity of that orgainzation. If the
members of Local 335, United Marine Division, merely determined to change
the name of that organization and to disaffiliate from the United Marine
Division there would be reasonable ground for holding that the new
organization was only a continuation of the old and that the employers must
continue to bargain with that organization. If, however, some of the members of
the Local, even a majority of them,8 decided to withdraw from the Local and to
form a new organization, the employers, under the principles already discussed,
would be required to continue to bargain with the organization with which they
had contracted, at least until the Board ordered a new election, or, if the
contract bar rule were 'waived,' until the new orgainzation presented proof
which would dispel any good faith doubt of its majority support.
14
What is the evidence on which the Trial Examiner relied as establishing that the
Local continued as the same organization rather than that a new organization
was formed by the withdrawal of some of the members of the old Local? The
focal point is the vote at the meeting of May 29 together with subsequent
'ratification.' But the May 29 vote can establish at most only that 'about' 130
members out of a total of about 750 wished to disaffiliate from the United
Marine Division (and that 'about' 14 did not).9 Of this vote the Trial Examiner
said:
15
16
Keeping in mind that the issue is not whether a substantial part of the
membership wished to withdraw from the Local and form a new organization,
but whether the old organization merely changed its name and affiliation, what
is to be said of the subsequent 'ratification' of this disaffiliation vote? The Trial
Examiner finds that the vote was ratified by 'a substantial majority of the
employees' by the fact that 'approximately' 500 signed cards 'accepting the
affiliation of Local 335, Independent, with the S.I.U. (Seafarer's International
Union)' and 'an approximately equal number' signed up for strike duty in July.
17
On June 19, 1960 there was a membership meeting at which a vote was taken
on affiliation with the Seafarer's International Union. The vote was 160 to 5 in
favor of such affiliation. The evidence as to the 'acceptance' of this affiliation
was as follows:
18
'Q. Did you submit to the membership at large by means of any referendum the
question of ratification of the acceptance of the SIU charter by mail ballot, to be
specific? A. No. We didn't have no referendum. We had 500 cards that they
signed to accept and stay in the SIU.
19
'Q. I thought you said you didn't issue new cards. A. That was the membership
wished. If they wished to stay in the SIU.
20
'Q. Just explain that a little to me a little more fully. I don't understand.
21
22
'Q. About these 500 cards. Who singed the cards? A. The membership.
23
24
'Q. Who presented them for signature? A. The delegate. . myself and the
Executive Board.
25
'Q. Were these cards; you say are all dated and signed after the affiliation? A.
These cards are singed during the affiliation and why we were affiliated.
26
'Trial Examiner: When you say 'affiliation,' you mean after the issuance of the
charter?
27
28
29
The fact that 'approximately' 500 employees signed up for strike duty in July is
Defection of officers and seizure of assets are by no means indications that the
old organization is continued in the new. Officers are more likely to lead
secession movements than are the rank and file, and it may well be that
members are unduly influenced in their choice of whether to remain with the
old orgainzation or to join the secessionists by reason of the consideration of
which group controls the assets. See Kearney & Trecker Corp. v. N.L.R.B., 210
F.2 852, 857-58 (7th Cir.), cert. denied, 348 U.S. 824, 75 S.Ct. 38, 99 L.Ed.
649 (1954). In the present case, moreover, the president, vice-president and one
of the trustees apparently did not join the secession but resigned their offices.
Of the two paid officers, it appears that one remained loyal to the old union and
was appointed administrator of its affairs, while the other associated himself
with the new organization.
31
The procedure of disaffiliation did not accord with the requirements of the
union constitution But it is not necessary in this case for us to pass upon the
Board's position that it will not consider in situations of this kind the legality of
disaffiliation under the provisions of the union constitution. (See Hershey
Chocolate Corp., 121 N.L.R.B. 901, 905-06 (1958); Radionic Prod. Div., 91
N.L.R.B. 595 (1950); Brightwater Paper Co., 54 N.L.R.B. 1102, 1106 (1944).
But see M & M Wood Working Co. v. N.L.R.B., 101 F.2d 938, 941 (9th Cir.
1939); Douglas and Lomason Co., 34 N.L.R.B. 69 (1941).) Even if the Board
is right on this point, it seems clear that the withdrawal of members in the
present case created a new organization.
32
33
The court decisions cited by the Trial Examiner in support of the proposition
that a mere change in name or affiliation does not change the identity of a
The Trial Examiner also cited a number of Board cases.14 Of these one,
Lenscraft, appears to be contra to the proposition for which it is cited. In most
of the others there was no claim by a second union.15 Three of the remaining
did not involve a refusal to bargain.16 To the extent that any of these Board
cases afford support for the proposition for which they are cited we find them
inconsistent with other Board cases, with the cases decided by the courts, and
with the accepted principles which we have discussed.
35
36
'(The General Counsel) argues, and the Trial Examiner has found, that the
present situation is governed by the Harris-Woodson case, in that the Retail
Clerks 'was the same as, or the successor to' the certified unaffiliated Council,
and that the Respondent was therefore obligated to bargain with the former
organization. In the Harris-Woodson case, the Board found that the respondent
employer had unlawfully refused to bargain with an industrial union directly
affiliated with the C.I.O., and directed the employer to bargain with that union.
Subsequently, the industrial union affiliated with Textile Workers Union of
America, C.I.O., as the result of a vote of an overwhelming majority of the
employees in the old union. Thereupon, the Textile Workers moved to
substitute its name for that of the industrial union in the Board's bargaining
order. The Board granted the motion, finding that, for the purposes of the
bargaining order, the two organizations were the same in view of the fact that
the bulk of the members and all the officers were the same. It is significant that
38
We hold, then, that the Board's conclusion, on which its orders are rested, that
Local 335, Independent, is merely the 'alter ego or continuance' of Local 335,
United Marine Division, is not supported by evidence in the record taken as a
whole. On the contrary the situation presented appears to be a fairly typical
example of the secession of part of the membership to form a new organization.
Under these circumstances the employers cannot be required to bargain with
the new organization until its majority status has been established.
39
The orders of the Board are denied enforcement and set aside.
41
42
I disagree with the majority's conclusion that the charging party in these
proceedings was not the bargaining representative with whom petitioners were
required to deal at all times in the period under consideration. As the majority
points out, the so-called disaffiliation vote was not taken until May 29, 1960.
Petitioners, however, refused to deal with the local's business agent before the
May 29 vote; and on May 27, they accorded exclusive recognition to a
'temporary administrator' whose credentials they conveniently failed to
investigate.1 Nor is there any doubt in my mind that Local 335, Independent
was in fact and in substance a continuation of the Local 335 that entered into
the collective bargaining contracts involved in this case. The 'Local 335'
governed by the 'temporary administrator' was clearly nothing more than a
'paper local.' and petitioners could not possibly entertain any good faith doubt
that the deck scow captains belonged to the 'Independent.' Any doubt they may
have had was surely dissipated by a strike which forced them to re-hire
employees who had been discharged because they refused to join the
'temporary administrator's' paper local. Therefore, the inadequacy of the May
29 disaffiliation vote is immaterial, since at no time was there any local which
could enforce the employees' rights under the existing collective agreement but
the charging party-- by any name. Because of this, and the complete lack of
merit which I find in the petitioner's remaining arguments, I would affirm and
enforce the order of the Board.
As each scow has only one employee there is no question of the scow captains
being 'supervisors' and thus exempted from the operation of the Act. 14(a) 29
U.S.C.A. 164(a)
The contract bar doctrine applies although the union involved is not certified by
the Board. See Asplundh Tree Expert Co., 92 N.L.R.B. 1013 (1950); United
States Time Corp., 79 N.L.R.B. 1135 (1948)
N.L.R.B. v. Marcus Trucking Co., 286 F.2d 583 (2d Cir. 1961). The same
result has been reached under the one year certification rule, the purpose and
effect of which are identical. See Brooks v. N.L.R.B., 348 U.S. 96, 75 S.Ct.
176, 99 L.Ed. 125 (1954); Carpinteria Lemon Ass'n N.L.R.B., 240 F.2d 554
(9th Cir. 1956), cert. denied, 354 U.S. 909, 77 S.Ct. 1295, 1 L.Ed.2d 1427
(1957); N.L.R.B. v. Henry Heide, Inc., 219 F.2d 46 (2d Cir.), cert. denied, 349
U.S. 952, 75 S.Ct. 881, 99 L.Ed. 1277 (1955); N.L.R.B. v. Century Oxford
Mfg. Corp., 140 F.2d 541 (2 Cir.), cert. denied, 323 U.S. 714, 65 S.Ct. 40, 89
L.Ed. 574 (1944)
Hershey Chocolate Co., 121 N.L.R.B. 901, 905 (1958). See Ford Motor Co., 95
N.L.R.B. 932, 934 (1951)
See N.L.R.B. v. Grace Co., 184 F.2d 126, 129 (8th Cir. 1950); Local 1545,
United Bhd. of Carpenters v. Vincent, 286 F.2d 127, 131 (2d Cir. 1960). But cf.
Fay v. Douds, 172 F.2d 720, 724 (2d Cir. 1949) ('* * * we assume that the
'contract bar' is, as it were, written into the statute * * *')
See Mayer, A House Divided-- The Schism Doctrine, 22 Ohio St.L.J. 154
(1961); Naumoff, An Analysis of the Contract Bar Doctrine, 7 Lab.L.J. 197,
227 (1956); Note, The Schism Doctrine, 45 Va.L.Rev. 211 (1959); Note
Employee Repudiation of Bargaining Representatives: An Appraisal of
Existing Restrictions, 66 Yale L.J. 223, 232 (1956), and numerous Board cases
cited in these articles
Where only five percent of the members remained loyal to the old organization
the Board held that the organization contined to be the bargaining
representative. Montgomery Ward Co., 68 N.L.R.B. 369, 372, n. 3 (1946). See
also Great Lakes Carbon Corp., 44 N.L.R.B. 70, 72, n. 1 (1942) (same where
one-third of the members remained loyal)
In Hershey Chocolate Co., 121 N.L.R.B. 901 (1958), where the vote for
disaffiliation was 829 to 1, the board did not recognize the new union as the
successor to the old, but ordered an election to permit the employees to choose
between the two organizations
10
Employees frequently sign authorization cards in more than one union. See
Save Elec. Corp., 49 N.L.R.B. 1030, 1034 (1943)
11
representatives where the old union was willing to administer the contract, see
Youngstown Steel Door Co., 116 N.L.R.B. 986 (1956)
12
N.L.R.B. v. Weyerhaeuser Co., 276 F.2d 865 (7th Cir.), cert. denied, 364 U.S.
879, 81 S.Ct. 168, 5 L.Ed.2d 102 (1960); Carpinteria Lemon Ass'n v. N.L.R.B.,
240 F.2d 554, 557 (9th Cir. 1956), cert. denied, 354 U.S. 909, 77 S.Ct. 1295, 1
L.Ed.2d 1427 (1957); N.L.R.B. v. Harris-Woodson Co., 179 F.2d 720, 723 (4th
Cir. 1960); Continental Oil Co. v. N.L.R.B., 113 F.2d 473, 477-478 (10th Cir.
1940), remanded on other grounds, 313 U.S. 212, 61 S.Ct. 861, 85 L.Ed. 1292
(1941)
13
Dickey v. N.L.R.B., 217 F.2d 652 (6th Cir. 1954) and M & M Wood Working
Co. v. N.L.R.B., 101 F.2d 938 (9th Cir. 1939) the Board's finding that a new
organization was but a continuation of the old was set aside
14
Lenscraft Optical Corp., 128 N.L.R.B. 836 (1960); Alto Plastics Mfg. Corp.,
119 N.L.R.B. 1458 (1958); Dalmo Victor Co. Div., Textron, Inc., 119 N.L.R.B.
737 (1957); Dryden Rubber Div., Sheller Mfg. Co., 118 N.L.R.B. 369 (1957);
R. C. Williams & Co., 107 N.L.R.B. 933 (1954); Charles Beck Mach. Corp.,
107 N.L.R.B. 874 (1954); Prudential Ins. Co., 106 N.L.R.B. 237 (1953);
Louisville Ry., 90 N.L.R.B. 678 (1950); Chesapeake & Potomac Tel. Co., 89
N.L.R.B. 231 (1950); Michigan Bell Tel. Co., 85 N.L.R.B. 303 (1949)
15
Dalmo Victor Co. Div., Textron, Inc., supra, note 14; Dryden Rubber Div.,
Sheller Mfg. Co., supra, note 14; Charles Beck Mach. Corp., supra, note 14;
Chesapeake & Potomac Tel. Co., supra, note 14; Michigan Bell Tel. Co., supra,
note 14
16
Also Plastics Mfg. Corp., supra, note 14; Prudential Ins. Co., supra, note 14;
Louisville Ry., supra, note 14
17