Office Employes International Union, Local No. 11 v. National Labor Relations Board
Office Employes International Union, Local No. 11 v. National Labor Relations Board
Opinion of the Court
delivered the opinion of the Court.
This case concerns the attempt of the petitioner, Local 11 of the Office Employes International Union, AFL-CIO, to represent for collective bargaining purposes the office-clerical workers employed at the Teamsters
We shall not deal with the merits of the unfair labor practice complaints. As to the jurisdictional question, the findings indicate that there are 23 workers employed by the various Teamster organizations at the Teamsters Building. They are paid by the Teamster group which, excluding the Security Plan Office, forms “an integral part of a multistate enterprise.”
h-I
With regard to the jurisdiction of the Board the wording of § 2 (2) of the Act is clear and unambiguous. It says that the term “employer” includes any labor organization “when acting as an employer.” It follows that when a labor union takes on the role of an employer the Act applies to its operations just as it would to any other employer. The Board itself recognized this fact as early
The legislative history of § 2 (2) unequivocally supports our conclusion. The Act, before its adoption in 1935, was considered by both the 73d and 74th Congresses.
“The reason for stating that ‘employer’ excludes ‘any labor organization, other than when acting as an employer’ is this: In one sense every labor organization is an employer, it hires clerks, secretaries, and the like. In its relations with its own employees, a labor organization ought to be treated as an employer, and the bill so provides.” (Emphasis added.) S. Rep. No. 1184, 73d Cong., 2d Sess. 4.
II.
The question remains whether the Board may, nevertheless, refuse to assert jurisdiction over labor unions, as a class, when acting as employers. The Board in the face of the clear expression of the Congress to the contrary has exempted labor unions when acting as employers from the provisions of the Act. We believe that such an arbitrary blanket exclusion of union employers as a class is beyond the power of the Board. While it is true that “the Board sometimes properly declines to [assert jurisdiction] stating that the policies of the Act would not be effectuated by its assertion of jurisdiction in that case” (emphasis supplied), Labor Board v. Denver Bldg. Council, 341 U. S. 675, 684 (1951), here the Board renounces jurisdiction over an entire category of employers, i. e., labor unions, a most important segment of American industrial life. It reasons that labor unions are nonprofit organizations. But until this case the Board has never recognized such a blanket rule of exclusion over all nonprofit employers. It has declined jurisdiction on an ad hoc basis over religious, educational, and eleemosynary employers such as a university library, a symphony orchestra, a research laboratory, and a church radio station.
We therefore conclude that the Board’s declination of jurisdiction was contrary to the intent of Congress, was arbitrary, and was beyond its power. The judgment is therefore reversed and the case is remanded to the Court of Appeals for remand to the Board for further proceedings in accordance with this opinion.
It is so ordered.
The complaints were leveled at the International Brotherhood of Teamsters and its representative, Teamster Local No. 206, Teamster Local No. 223, the Teamsters’ Joint Council of Drivers No. 37, the Oregon Teamsters’ Security Plan Office and its administrator, and the Teamsters Building Association, Inc. The latter owns and operates an office building in Portland, Oregon. The office-clerical employees petitioner attempted to organize perform services for the various teamster organizations here involved. These organizations are the exclusive tenants of the building.
61 Stat. 140, 29 U. S. C. § 158 (a).
61 Stat. 137, 29 U. S. C.-§ 152 (2), provides in pertinent part:
“Sec. 2. When used in this Act—
“(2) The term ‘employer’ includes any person acting as an agent of an employer, directly or indirectly, but shall not include the United States or any wholly owned Government corporation, or any Federal Reserve Bank, or any State or political subdivision thereof, or any corporation or association operating a hospital, if no part of the net earnings inures to the benefit of any private shareholder or individual, or any person subject to the Railway Labor Act, as amended from time to time, or any labor organization (other than when acting as an employer), or anyone acting in the capacity of officer or agent of such labor organization.” (Emphasis supplied.)
The annual payment of initiation fees and taxes from members of the Teamsters Union throughout the country to the International’s headquarters in Washington, D. C., amounts to more than $6,000,000. The minimum monetary jurisdictional requirement for a multistate enterprise such as the Teamsters, promulgated by the Board in Jonesboro Grain Drying Corp., 110 N. L. R. B. 481 (1954), is $250,000.
The Security Plan Office administers 18 trust funds and receives contributions provided for by collective bargaining agreements with some 2,000 employers located in four western States. Some of the funds are invested in health and welfare insurance policies on which over $2,000,000 per annum in premiums is paid to a California insurance carrier. The minimum “direct outflow” requirement established for jurisdictional purposes in Jonesboro, supra, is $50,000. The California insurance carrier remits 4% of the premiums to the Security Plan Office to defray the expense of maintaining an office and processing and paying claims under the health and welfare plan. The Security Plan Office employed and paid at various times from five to ten of the personnel at the Teamsters Building.
The Teamsters Building Association, Inc., is, as are the other Teamsters, a nonprofit corporation. Its stock is held by six Teamster
We treat the opinion of the Board, as did the Court of Appeals, as being that of members Farmer and Peterson. While Mr. Mur-dock’s concurrence was on the "more limited grounds” that Congress never intended labor unions to be employers with respect to their own employees when engaged in union activities, he concurred in the dismissal by Messrs. Farmer and Peterson. The other two members dissented.
61 Stat. 143, 29 U. S. C. § 159.
S. 2926, 73d Cong., 2d Sess.; S. 1958, 74th Cong., 1st Sess.
“ (2) The term ‘employer’ . . . shall not include . . . any labor organization . . . .” S. 2926, 73d Cong., 2d Sess. 3. This bill, while receiving committee approval as altered, was not enacted. When Senator Wagner resubmitted the bill the next year he did so in its original form.
Trustees of Columbia University, 97 N. L. R. B. 424 (1951) (library); Philadelphia Orchestra Association, 97 N. L. R. B. 548 (1951) (orchestra); Armour Research Foundation, 107 N. L. R. B. 1052 (1954) (laboratory); and Lutheran Church, Missouri Synod, 109 N. L. R. B. 859 (1954) (radio station).
H. R. Rep. No. 510, 80th Cong., 1st Sess. 32.
H. R. 3020, 80th Cong., 1st Sess. 4. The exclusions would have included “any corporation, community chest, fund, or foundation organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals.”
See note 10, supra.
See also Hotel Association of St. Louis, 92 N. L. R. B. 1388 (1951), where the Board declined jurisdiction over hotel employers. The Board’s refusal was based on the local character of the hotel business. The District Court for the District of Columbia has held that such refusal is not arbitrary in Hotel Employees Local No. 255 v. Leedom, 147 F. Supp. 306 (1957).
In Checker Cab Co., 110 N. L. R. B. 683 (1954), the Board declined jurisdiction of an action involving a purely local employer operating two taxicab companies in Baton Rouge, Louisiana. See also Yellow Cab Company of California, 90 N. L. R. B. 1884 (1950); Skyview Transportation Co., 90 N. L. R. B. 1895 (1950); and Brooklyn Cab Corp., 90 N. L. R. B. 1898 (1950). In these cases the declination of jurisdiction was based on the local character of the operations. We indicate neither approval nor disapproval of these jurisdictional declinations.
Concurring in Part
concurring in part and dissenting in part.
I agree that labor organizations are “employers” under § 2 (2) of the Act with respect to their own employees. I dissent, however, from the Court’s holding that the Board is without power to decline to assert jurisdiction over labor unions as a class. I am of the view that the Board has discretionary authority to decline to do so when the Board determines, for proper reasons, that the policies of the Act would not be effectuated by its assertion of jurisdiction. Cf. Labor Board v. Denver Bldg. Council, 341 U. S. 675, 684; Hotel Association of St. Louis, 92 N. L. R. B. 1388, aff’d, 147 F. Supp. 306; Checker Cab Co., 110 N. L. R. B. 683. However, the declination to assert jurisdiction was rested upon the same grounds relied upon by the Board in declining jurisdiction over nonprofit organizations. These grounds, in my view, are not proper reasons for declining to assert jurisdiction over labor organizations. I would, therefore, remand the case to the Court of Appeals for remand to the Board for reconsideration.
Reference
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