National Labor Relations Board v. Great Dane Trailers, Inc.
Opinion of the Court
delivered the opinion of the Court.
The issue here is whether, in the absence of proof of an antiunion motivation, an employer may be held to have violated §§ 8 (a)(3) and (1) of the National Labor Relations Act
The agreement was temporarily extended beyond its termination date, but on April 30, 1963, the union gave the required 15 days’ notice of intention to strike over issues which remained unsettled at the bargaining table. Accordingly, on May 16, 1963, approximately 350 of the company’s 400 employees commenced a strike which lasted until December 26, 1963. The company continued to operate during the strike, using nonstrikers, persons hired as replacements for strikers, and some original strikers who had later abandoned the strike and returned to work.
A petition for enforcement of the order was filed in the Court of Appeals for the Fifth Circuit. That court first dealt with the company’s contention that the Board had lacked jurisdiction and that the union should have been relegated either to the bargaining table or to a lawsuit under § 301 of the Act,
From this review of our recent decisions, several principles of controlling importance here can be distilled. First, if it can reasonably be concluded that the employer’s discriminatory conduct was “inherently destructive” of important employee rights, no proof of an anti-union motivation is needed and the Board can find an unfair labor practice even if the employer introduces evidence that the conduct was motivated by business considerations. Second, if the adverse effect of the discriminatory conduct on employee rights is “comparatively slight,” an antiunion motivation must be proved to sustain the charge if the employer has come forward with evidence of legitimate and substantial business justifications for the conduct. Thus, in either situation, once it has been proved that the employer engaged in discriminatory conduct which could have adversely affected employee rights to some extent, the burden is upon the employer to establish that he was motivated by legitimate objectives since proof of motivation is most accessible to him.
Applying the principles to this case then, it is not necessary for us to decide the degree to which the challenged conduct might have affected employee rights. As the Court of Appeals correctly noted, the company came forward with no evidence of legitimate motives for its discriminatory conduct. 363 F. 2d, at 134. The company simply did not meet the burden of proof, and
The judgment of the Court of Appeals is reversed and the case is remanded with directions to enforce the Board’s order.
It is so ordered.
National Labor Relations Act, as amended, §§8 (a)(3) and (1), 61 Stat. 140-141, 29 U. S. C. §§ 158 (a)(3) and (1).
Local 26, International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers, AFL-CIO.
Article VIII of the collective bargaining agreement was entitled “Vacations.” It read, in pertinent part:
“(a) Each qualified employee covered by this agreement shall be entitled after one (1) year of continuous employment, at a time agreeable to the Company, to a vacation of seven (7) consecutive days with pay for forty (40) hours at the rate of pay existing for such employee at the time of the beginning of his vacation. Each employee, after five (5) years’ continuous service, shall be entitled to a vacation of fourteen (14) consecutive days, with pay for eighty (80) hours. Any employee entitled to a vacation with pay may waive the right, if his services are needed by the employer, to such vacation during the period of this agreement, and in such cases shall be entitled to receive in lieu thereof, at the time he becomes entitled to the vacation, the amount of vacation pay such employee would otherwise have received over and above the wages received for work performed during the vacation period.
“(b) To qualify for the said vacation, it is necessary that an employee shall have worked a total of fifteen hundred twenty-five (1525) hours in the said year; any time lost, however, because of an industrial accident while employed by this Company to count as part of the qualifying time.
“(d) Employees who have served less than sixty (60) days on the next July 1 after date of employment will receive no vacation pay on that date but on the following July 1 will receive the vacation due in accordance with the above qualifying requirements, plus extra amount due in accordance with hours worked.
“(e) In case of lay-off, termination or quitting, an employee who has served more than sixty (60) days shall receive pro rata share of vacation.
“(f) All vacation pay shall be paid on Friday nearest July 1st, except as outlined in paragraph (d).”
All strikers had been replaced by October 8, 1963. After their replacement, some strikers were rehired by the company, apparently as new employees.
The complaint also charged independent violations of § 8 (a) (1). These were rejected by the Trial Examiner and by the Board.
§ 301, Labor Management Relations Act, 1947, 61 Stat. 156, 29 U. S. C. § 185.
In this Court the company apparently abandoned the argument under § 301. In any event, we agree with the Court of Appeals
National Labor Relations Act, as amended, §2(3), 61 Stat. 137, 29 U. S. C. § 152 (3), declares:
"The term 'employee’. . . shall include any individual whose work has ceased as a consequence of, or in connection with, any current labor dispute . . . and who has not obtained any other regular and substantially equivalent employment . . . ,”
Dissenting Opinion
dissenting.
Because I think that the Court puts forth a premise which misinterprets the recent decision in NLRB v. C & C Plywood Corp., 385 U. S. 421, and has proposed a determining rule based on a distillation of prior opinions which is, in my view, substantially inaccurate, I am constrained to express my dissent from its opinion. I believe that the Fifth Circuit correctly analyzed the problem, and that its decision should be affirmed.
The Court begins by stating that vacation benefits had “accrued” under the contract, and implies that striking employees had a contractual right to such benefits which was arbitrarily disregarded by Great Dane in order to punish those employees for engaging in protected activity. Were these the properly established facts of the case, I would have little difficulty in concurring in the result reached by the majority. Employer action which undercuts rights protected by § 7 of the National Labor Relations Act, as amended, 61 Stat. 140, and has no inferable, legitimate business purpose has been held a violation of §§ 8 (a)(3) and (1). Republic Aviation
The Board disclaimed “interpreting the contract for the parties” and held only that “strikers must be treated uniformly with nonstrikers with respect to whatever benefits accrue to the latter from the existence of the employment relationship.” It explained that its order would merely force the employer to use the same vacation pay criteria for all employees and only prevent Great Dane from using the requirement that a recipient be at work as of July 1, 1963. The Court of Appeals considered the “term or condition of employment” at issue to be the employer’s unilaterally declared vacation “policy.” It explicitly disregarded “the question of whether the Board would have acted improperly . . . to decide whether it was an unfair labor practice to withhold benefits due under the contract . . . .” 363 F. 2d 130, 133. (Emphasis in original.)
The Court attempts to resolve this issue as well as the contractual one. In the Court’s view an employer must “come forward with evidence of legitimate and substantial business justifications” whenever any of his actions are challenged in a § 8 (a) (3) proceeding. Prior to
Under today’s formulation, the Board is required to find independent evidence of the employer’s antiunion motive only when the employer has overcome the presumption of unlawful motive which the Court raises. This alteration of the burden in §8 (a) (3) cases may either be a rule of convenience important to the resolution of this case alone or may, more unfortunately, portend an important shift in the manner of deciding employer unfair labor practice cases under §8 (a)(3). In either event, I believe it is unwise.
The “legitimate and substantial business justifications” test may be interpreted as requiring only that the employer come forward with a nonfrivolous business purpose in order to make operative the usual requirement of proof of antiunion motive. If this is the result of today’s decision, then the Court has merely penalized Great Dane for not anticipating this requirement when arguing before the Board. Such a penalty seems par
On the other hand, the use of the word “substantial” in the burden of proof formulation may give the Board a power which it formerly had only in § 8 (a)(3) cases like Erie Resistor, supra. The Board may seize upon that term to evaluate the merits of the employer’s business purposes and weigh them against the harm that befalls the union’s interests as a result of the employer’s action. If this is the Court’s meaning, it may well impinge upon the accepted principle that “the right to bargain collectively does not entail any ‘right’ to insist on one’s position free from economic disadvantage.” American Ship Building Co. v. Labor Board, supra, at 309. Employers have always been free to take reasonable measures which discourage a strike by pressuring the economic interests of employees, including the extreme measure of hiring permanent replacements, without having the Board inquire into the “substantiality” of their business justifications. Labor Board v. Mackay Radio & Telegraph Co., 304 U. S. 333. If the Court means to change this rule, though I assume it does not, it surely should not do so without argument of the point by the parties and without careful discussion.
In my opinion, the Court of Appeals correctly held that this case fell into the category in which independent evidence of antiunion motive is required to sustain a violation. As was pointed out in the Court of Appeals opinion, a number of legitimate motives for the terms of the vacation policy could be inferred, 363 F. 2d, at 134,
Plainly the Court is concerned lest the strikers in this case be denied their “rights” under the collective bargaining agreement that expired at the commencement of the strike. Equally plainly, a suit under § 301 is the proper manner by which to secure these “rights,” if they indeed exist. I think it inappropriate to becloud sound prior interpretations of § 8 (a) (3) simply to reach what seems a sympathetic result.
The union elected to terminate the contract raising the question whether any right to vacation pay survived the termination. Also the contract provided for vacation pay when the employee was not actually granted a vacation, and the initial choice lay with the employer. Thus under the contract the employer was not obligated to grant two weeks’ additional pay, but could choose to grant vacation instead and lower the total cash outlay. Termination precluded exercise of that choice.
61 Stat. 156, 29 U. S. C. § 185 (a). This position is supported by the legislative history discussed in NLRB v. C & C Plywood Corp., 385 U. S. 421, at 427.
Article XIV of the contract provided that arbitration would not be required after one party had given notice of intent to terminate or modify the contract. This disclaimer clearly implies that arbitration would be required in the resolution of disputes arising under the contract.
By July 1, 1963, almost 75% of the striking employees had been replaced. By August 1, 1963, when the dispute over vacation pay was coming to a head almost 90% had been replaced. All strikers had been replaced by October 8, 1963.
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