DocketNumber: 2018-SC-000097-TG; 2018-SC-000098-TG; 2018-CA-000289-MR
Citation Numbers: 565 S.W.3d 580
Judges: Keller, Minton, Wright
Filed Date: 11/15/2018
Status: Precedential
Modified Date: 10/19/2024
COUNSEL FOR APPELLANTS: FRED ZUCKERMAN, AS REPRESENTATIVE OF THE GENERAL DRIVERS, WAREHOUSEMEN AND HELPERS LOCAL UNION NO. 89 AND WILLIAM LONDRIGAN, AS REPRESENTATIVE OF THE KENTUCKY STATE AFL-CIO, ITS AFFILIATED UNIONS AND MEMBERS, William E. Johnson, Johnson Bearse, LLP, Irwin H. Cutler, Jr., Benjamin S. Basil, Matthew P. Lynch, Priddy Cutler Naake & Meade PLLC, Robert Matthew Colone, Teamsters Local 89, David O'Brien Suetholz, Devon Nora Ros Oser, Branstetter Stranch & Jennings PLLC.
COUNSEL FOR APPELLEE: MATTHEW G. BEVIN, IN HIS OFFICIAL CAPACITY AS GOVERNOR OF THE COMMONWEALTH OF KENTUCKY, Mark Stephen Pitt, Stephen Chad Meredith, Matthew Kuhn, Office of the Governor.
COUNSEL FOR APPELLEE: DERRICK K. RAMSEY, IN HIS OFFICIAL CAPACITY AS SECRETARY OF THE KENTUCKY LABOR CABINET, Michael Gary Swansburg, Jr.
COUNSEL FOR APPELLEES BARRY BRIGHT, JACOB PURVIS, AND WILLIAM PURVIS, William L. Messenger, National Right to Work Foundation, Richard Lynn Masters, Masters, Mullins, & Arrington.
COUNSEL FOR AMICUS CURIAE: KENTUCKY CENTER FOR ECONOMIC POLICY, Pamela Joy Pendorf Thomas.
COUNSEL FOR AMICI CURIAE: INTERNATIONAL UNION, UNITED AUTOMOBILE, AEROSPACE AND AGRICULTURAL IMPLEMENT WORKERS OF AMERICA; UNITED MINE WORKERS OF AMERICA; UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL UNION; AND KENTUCKY PIPE TRADES ASSOCIATION: Kevin Crosby Burke, Jamie Kristin Neal, Burke Neal PLLC, Tony Oppegard
OPINION OF THE COURT BY JUSTICE VANMETER
Under Section 14(b) of the Taft-Hartley Act,
*586Significantly, this Act amended KRS
I. Factual Background.
Bills virtually identical to 2017 HB 1 were introduced in almost every session of the legislature beginning in 2000
The House Economic Development and Workforce Investment Committee convened a hearing on HB 1 on January 4, 2017. At the hearing, proponents of the Bill testified in support of the Bill.
In May 2017, Fred Zuckerman, et al. ,
In June 2017, the Commonwealth filed a motion to dismiss. The Unions subsequently filed a motion for partial summary judgment. After a September 2017 hearing, the trial court issued its Order denying the Unions' motion and granting the Commonwealth's motion. The Unions appealed. Because this case involves significant and important constitutional issues of great and immediate public importance, we granted transfer of the case from the Court of Appeals. CR
II. Standard of Review.
This case involves a facial challenge to the constitutionality of the Act under the Kentucky Constitution. We recognize, of course, that all laws "contrary to this Constitution, shall be void." KY. CONST. § 26. "Our functions are to determine the constitutional validity and to declare the meaning of what the legislative department has done. We have no other concern." Johnson v. Commonwealth ex rel. Meredith ,
courts are not at liberty to declare a statute invalid because, in their judgment, it may be unnecessary, or opposed to the best interests of the state.... [A]n act will not be declared void on the ground that it is opposed to the spirit supposed to pervade the Constitution, or is against the nature and spirit of the government, or is contrary to the general principles of liberty, or the genius of a free people.
Craig ,
Since the issues involve questions of law, our review is de novo , and we do not defer to conclusions of the trial court. Adams v. Sietsema ,
III. Labor-Management Background.
A detailed history of Labor-Management relations would unduly prolong this opinion, but an overview is helpful to the analysis of the issues before us, particularly because 1) the Unions base their challenges under the Kentucky Constitution, in part, on "the letter and the spirit of the document,"
A. Kentucky Labor Law History to 1890.
Trade or labor unions in Kentucky were initially formed in the more urbanized areas of Louisville, Northern Kentucky, i.e. , Covington and Newport, and in the coal fields of Eastern Kentucky. See generally John Hennan, Toil, Trouble, Transformation: Workers and Unions in Modem Kentucky , 113 R EG . OF THE K Y . H IST . S OC'Y 233, 236-37 (2015) (attributing this formation to the post-Civil War period, although some scholars believe union activity existed in antebellum Kentucky). The first reported Kentucky case we have found involving a trade organization was Sayre v. Louisville Union Benevolent Ass'n ,
Surprisingly, in the period pre-dating the 1890-91 Kentucky Constitutional Convention, that is it. In that era, and although courts recognized workingmen's right to organize, they also recognized employers' rights to conduct business as they saw fit and, absent a contract, to hire and fire employees generally at will. Furthermore, statutory laws regulating labor contracts, maximum hours, minimum pay, and the like, were generally held unconstitutional as an infringement of the employer's and individual employee's right of contract. See generally F. J. Stimson, HANDBOOK TO THE LABOR LAW OF THE UNITED STATES (New York: Charles Scribner's Sons, 1896), 1-19. Perhaps the most famous, or infamous, case of this era is Lochner v. New York ,
Two cases which post-date the 1890 Constitutional Convention, but which indicate the state of Kentucky labor law in this era are Hetterman v. Powers ,
B. 1890 Constitutional Convention .
Following the Civil War, special legislation was used as a means to encourage Kentucky's economic development. To say that these enactments got out-of-hand would be an understatement. Most scholars accept that Kentucky's 1890 Constitutional Convention was necessitated by excessive proliferation of special legislation for the benefit of individual persons and corporations, an unequal tax burden and mounting local public debts, a desire to exercise control over railroads and railroad rates, and the 1850 antebellum constitution's indefensible protections for slavery. See generally Thomas D. Clark, A HISTORY OF KENTUCKY (Ashland, Ky.: The Jesse Stuart Found., 1988), 419-28. This Court has on many occasions recognized the need to curtail special legislation as the primary reason for the 1891 Constitution. See, e.g. , Yeoman v. Commonwealth, Health Policy Bd. ,
To illustrate the problem of special legislation, in its 1888 session, the legislature passed 1,403 local and private acts, which took up 3,146 pages in a three-volume set. 1888 ACTS OF THE GENERAL ASSEMBLY OF THE COMMONWEALTH OF KENTUCKY (Frankfort, *590KY: John D. Woods, 1888).
Some of the special legislation exempted railroads and other corporations from taxation and created monopolies, which were decried by a number of the delegates. E.g. , I 1890 KY. CONST. DEBATES (Frankfort, Ky.: E. Polk Johnson, 1890), 466 (Del. Knott comments). Another point of view was that this legislation had encouraged economic development, expansion of railroads, and development of the state's natural resources. See Clark, A HISTORY OF KENTUCKY , 419-20 (describing editor Henry Watterson and his efforts to promote industrial development).
We include these comments not to re-debate the issues of the late nineteenth century, but merely to point out that the framers of the 1891 Constitution were a varied assortment of men, representing different parts of the Commonwealth and economic interests. See Clark, 431 (stating "[t]his fourth convention was composed of as motley a delegation of constitutionalists as had ever been seen in a convention hall.... Farmer members opposed the sinister influence of corporations; and corporation *591lawyers, lobbyists and self-styled constitutionalists opposed [Farmers'] Alliance leadership[ ]"). Thus, selective quotations from a four-volume set of over 6,000 pages is not a useful exercise in "divining the intent of the framers." Our task, in the interpretation of Kentucky's Constitution,
rests on the express language of the provision, and words must be given their plain and usual meaning. City of Louisville Mun. Hous. Comm'n v. Pub. Hous. Admin. ,261 S.W.2d 286 , 287 (Ky. 1953). This Court is "not at liberty to construe ... plain and definite language of the Constitution in such a manner as to thwart the deliberate purpose and intent of the framers of that instrument." Harrod v. Hatcher ,281 Ky. 712 ,137 S.W.2d 405 , 408 (1940). In fact, our predecessor Court recognized as a "cardinal rule" of constitutional interpretation the principle that rules of construction may not be employed where the language of the provision is clear and unambiguous. Grantz v. Grauman ,302 S.W.2d 364 , 366 (Ky. 1957). "It is to be presumed that in framing the constitution great care was exercised in the language used to convey its meaning and as little as possible left to implication[.]" City of Louisville v. German ,286 Ky. 477 ,150 S.W.2d 931 , 935 (1940).
Fletcher v. Graham ,
To demonstrate the point that the 1891 Constitution does not reflect a "pro-labor, populist, progressive" point of view, as argued by the Unions and the Union Amicae , the Convention adopted only three explicitly pro-labor provisions. These sections were Section 243 relating to the minimum age of child labor, Section 244 requiring all wage earners to be paid in lawful money, and Section 253 restricting the labor of penitentiary labor to public works.
*592The Convention adopted specific sections directed at corporations and railroads. KY. CONST. §§ 190 - 218. These provisions, however, ran to the benefit of the public at large, and were designed to correct the abuses which had occurred as a result of special legislation. See, e.g. , § 194 (requiring all corporations organized or carrying on business in the state to have a place of business and a registered agent); § 197 (prohibiting common carriers from issuing free passes to public officials); § 212 (subjecting railroad rolling stock and personal property to execution and attachment); §§ 213-15, 217-18 (requiring railroads not to discriminate or to give preferential treatment or rates). Similarly, and as to taxation, several provisions addressed special legislation abuses. E.g. , § 174 (subjecting corporate and individually owned property to uniform tax rates); §§ 177, 179 (prohibiting Commonwealth, counties or municipalities from becoming shareholders in corporations).
After the publication of the proposed Constitution in April 1891, the reaction of labor groups was mixed. Herbert Finch, Organized Labor in Louisville, Kentucky, 1880-1914 (1965) (unpublished Ph.D. dissertation, Univ. of Kentucky) (on file with the William T. Young Library, Univ. of Kentucky), 206-07. The Trades and Labor Assembly in Louisville "decided almost unanimously to vote against" the new Constitution. Against the New , THE COURIER-JOURNAL (Louisville), Mon., Jun. 15, 1891, p. 5, col. 4, https://www.newspapers.com/image/32457788/ (visited Sep. 5, 2018). Conversely, the Knights of Labor did endorse it at its annual state convention in July 1891, "by a close vote." Knights' Labor , THE COURIER-JOURNAL (Louisville), Wed., Jul. 29, 1891, p. 8, col. 2, https://www.newspapers.com/image/32461411/ (visited Sep. 5, 2018).
In the final analysis, Dr. Clark has been quoted,
[T]he 1890 convention created a static document to protect [Kentucky's] agrarian society from an emerging industrial order: "One gets the impression ... that many of the delegates were, in fact, little Red Riding Hoods trudging alone and frightened through the perplexing forest of constitutional law, hoping that the big bad wolves of industrial and progressive changes were mere figments of their badly agitated imagination, and that a rigid constitution with static provisions would serve to dispel these threatening wraiths."
William Green, Constitutions , THE KENTUCKY ENCYCLOPEDIA (Lexington: The Univ. Press of Kentucky, 1992), 225 (emphasis added). No doubt exists but that the 1890 Convention sought to rein in the reign of special legislation, i.e , elimination of special tax breaks for railroads, equalization of tax burden, elimination of implied powers. The resulting document was "[n]ot so much a fundamental rule of government as a piece of omnibus legislation." Clark, 432.
C. Federal Labor Law .
With the enactment of major labor laws between 1932 and 1935, Congressional policy towards labor unions transformed from one of indifference (at best) to one of encouragement. These laws were the Norris-LaGuardia Act, c. 90, § 4,
By enacting these laws, "Congress largely displaced state regulation of industrial relations," and thus, states "may not regulate activity that the NLRA protects, prohibits, or arguably protects or prohibits." Wis. Dep't of Indus., Labor & Human Relations v. Gould Inc. ,
Nothing in this subchapter shall be construed as authorizing the execution or application of agreements requiring membership in a labor organization as a condition of employment in any State or Territory in which such execution or application is prohibited by State or Territorial law.
The historical context of the relevant aspects of the Taft-Hartley Act is instructive. See Commc'ns Workers v. Beck ,
Against this historical backdrop, section 8(a)(3) of the Taft-Hartley Act attempted to accomplish the "twin purposes" of eliminating "the most serious abuses of compulsory unionism ... by abolishing the closed shop" but still allowing certain union-security agreements to counter the *594free rider problem. NLRB v. Gen. Motors Corp. ,
"While § 8(a)(3) articulates a national policy that certain union-security agreements are valid as a matter of federal law, § 14(b) reflects Congress' decision that any State or Territory that wishes to may exempt itself from that policy." Mobil Oil ,
With that background, we turn to the claims in this case.
IV. Analysis.
As previously noted, the Unions raise four constitutional challenges to the Act: (a) violation of Kentucky's equal protection of the laws provisions; (b) violation of Kentucky's prohibition on special legislation; (c) violation of Kentucky's prohibition of takings without compensation; and (d) improper designation as emergency legislation. We address each claim in turn.
A. Equal Protection .
Citizens of Kentucky enjoy equal protection of the law under the 14th Amendment of the United States Constitution and Sections 1, 2, and 3 of the Kentucky Constitution. D.F. v. Codell ,
Currently, three levels of review may apply to an equal protection challenge. See, e.g. , Steven Lee Enters. v. Varney ,
Rational basis review is appropriate for evaluating the Act since the Act is expressly permitted by the Taft-Hartley Act § 14(b). The Supreme Court long ago held that, under federal law, union membership is not a suspect classification triggering strict scrutiny. City of Charlotte v. Local 660, Int'l Ass'n of Firefighters ,
*596Jones v. Russell ,
In Varney , we quoted at length from Heller v. Doe by Doe ,
We many times have said, and but weeks ago repeated, that rational-basis review in equal protection analysis is not a license for courts to judge the wisdom, fairness, or logic of legislative choices. Nor does it authorize the judiciary to sit as a superlegislature to judge the wisdom or desirability of legislative policy determinations made in areas that neither affect fundamental rights nor proceed along suspect lines. For these reasons, a classification neither involving fundamental rights nor proceeding along suspect lines is accorded a strong presumption of validity. Such a classification cannot run afoul of the Equal Protection Clause if there is a rational relationship between the disparity of treatment and some legitimate governmental purpose. Further, a legislature that creates these categories need not actually articulate at any time the purpose or rationale supporting its classification. Instead, a classification must be upheld against equal protection challenge if there is any reasonably conceivable state of facts that could provide a rational basis for the classification.
A State, moreover, has no obligation to produce evidence to sustain the rationality of a statutory classification. A legislative choice is not subject to courtroom factfinding and may be based on rational speculation unsupported by evidence or empirical data. A statute is presumed constitutional, and the burden is on the one attacking the legislative arrangement to negative every conceivable basis which might support it, whether or not the basis has a foundation in the record. Finally, courts are compelled under rational-basis review to accept a legislature's generalizations even when there is an imperfect fit between means and ends. A classification does not fail rational-basis review because it is not made with mathematical nicety or because in practice it results in some inequality. The problems of government are practical ones and may justify, if they do not require, rough accommodations-illogical, it may be, and unscientific.
Varney ,
In Elk Horn Coal , we explained that the statute under consideration, KRS 26A.300, did not treat all unsuccessful appellants the same, and thus was "discriminatory. But the state may discriminate in certain matters if there is a rational basis for such discrimination."
In Delta Air Lines, Inc. v. Commonwealth, Revenue Cabinet , in upholding a sales and use tax classification, we held:
The standards for classifications under the Kentucky constitution are the same as those under the Fourteenth Amendment to the Federal constitution. A single standard can be applied to both the State and Federal constitutions in regard to classification for sales tax exemptions. This Court has determined that economic factors are valid considerations which the legislature may take into account in developing a legitimate tax classification. The legislature has a great freedom of classification and the presumption of validity can be overcome only by the most explicit demonstration that it is hostile and oppressive against particular persons and classes.
The Unions and the Union Amicae strenuously argue that the Act creates a classification which has no substantial or justifiable basis. They claim right-to-work policies reduce wages for union and non-unions employees, have mixed impact on employment outcomes, and have no statistically significant impact on overall state employment. They argue the true motivation is "to starve labor organizations and their members based on perceived political bent." The Commonwealth, conversely, argues that the legislature reasonably could conclude that the Act would, as testified by the proponents of 2017 HB 1, benefit Kentucky and its citizens by joining other right-to-work states with superior economic development, employment growth in both union and non-union jobs, and eliminate Kentucky's disadvantage with respect to its neighboring right-to-work states in competing to attract new businesses. The Commonwealth further argues that the legislature might have sought to provide economic freedom for workers who desired not to support any union activities.
The legislature is permitted to set the economic policy for the Commonwealth. Even assuming that the Act creates a classification that discriminates between labor unions and all other organizations operating in the state,
One does not need an advanced degree in labor economics to recognize that employers might be attracted to locate in a state where wages are lower as opposed to a state where wages are higher. To the extent this conclusion might be characterized as speculative, it is undoubtedly rational. The legislature can clearly make a policy decision that the Act might result in more jobs, albeit at lower wages, and that this result, in turn, might benefit the overall economic climate of Kentucky. In fact, this result is supported by some of the economic studies noted by the Unions. See Robert Bruno, Affidavit at 5 (stating that some studies suggest right to work laws increase manufacturing employment, while other studies find no effect). All the while, of course, for any given workplace, the majority of workers retain the federally-protected right to organize.
The Act does not violate the equal protection provisions of the Kentucky Constitution. We are unable to say the legislature's "classification is so arbitrary and capricious as to be hostile, oppressive and utterly devoid of rational basis." Delta Air Lines ,
As to the Unions' claim that the Act impairs their freedom to contract, Kentucky law has long recognized that the police power, based on "the general welfare of the community," may validly infringe on the right to contract. City of Covington v. Sanitation Dist. No. 1 ,
B. Special Legislation.
The Unions claim the Act constitutes special legislation in violation of Sections 59 and 60 of the Kentucky Constitution. Specifically, Section 59 states: "[t]he General Assembly shall not pass local or special acts concerning any of the following subjects, or for any of the following purposes, namely: ... Twenty-fourth: To regulate labor, trade, mining or manufacturing." The purpose of this section is not to prevent the legislature from enacting any laws concerning labor, trade, mining or manufacturing. That would be absurd.
Special legislation is defined as arbitrary and irrational legislation that favors the economic self-interest of the one or the few over that of the many. Yeoman ,
In Johnson v. Commonwealth ex rel. Meredith , our predecessor court noted a clear distinction between a general and a special law, stating " '[a] statute which relates to persons or things as a class is a general law, while a statute which relates to particular persons or things of a class is special.' "
Our case law has long recognized a simple, two-part test for determining whether a law constitutes general legislation in its constitutional sense: (1) equal application to all in a class, and (2) distinctive and natural reasons inducing and supporting the classification. Yeoman ,
Frankly, the Act applies to all collective bargaining agreements entered into on or after January 9, 2017, with the exception of certain employees covered or exempted by federal law. KRS 336.132. With the exceptions required by federal law, it applies to all employers and all employees, both public and private. It does not single out any particular union, industry or employer. It applies statewide. We have previously rejected constitutional challenges to legislation that purportedly promoted or harmed organized labor as claimed special legislation, so long as a rational basis existed for the statute. See Hamilton ,
C. Taking for Public Purpose without Just Compensation .
Next, the Unions argue that the Act constitutes a public taking of labor union property without just compensation, in violation of Sections 13 and 242 of the Kentucky Constitution. Section 13 provides, in pertinent part, that no "man's property [shall] be taken or applied to public use without the consent of his representatives, and without just compensation being previously made to him." Section 242 provides:
Municipal and other corporations, and individuals invested with the privilege of taking private property for public use, shall make just compensation for property taken, injured or destroyed by them; which compensation shall be paid before such taking, or paid or secured, at the election of such corporation or *601individual, before such injury or destruction.
The Unions' argument is two-fold. First, they assert that the Act takes union property because unions are required to provide valuable services to all employees in a bargaining unit irrespective of union membership without being compensated in return.
1. Providing required service without compensation.
The Unions rely on this court's decision in Bradshaw v. Ball ,
The Court addressed the arguments advanced to justify non-members' payment of agency fees, specifically that because unions are required by law to represent the interests of all employees in the bargaining unit, whether union members or not, it is unfair that non-members, i.e. , free-riders, are not required to pay fees. The Court noted that unions in many states represent employees who do not pay agency fees.
interest in keeping control of the administration of the collective bargaining agreement, since the resolution of one *603employee's grievance can affect others. And when a union controls the grievance process, it may, as a practical matter, effectively subordinate the interest of [an] individual employee to the collective interests of all employees in the bargaining unit.
Id. (quotations and citations omitted); see also Vaca v. Sipes ,
Other courts have similarly held that unions are fully and adequately compensated for any loss of fees from nonmembers through the exclusive representation designation. Sweeney v. Pence ,
The foregoing analysis applies equally to private sector employees and effectively distinguishes the present case from Bradshaw . A union's representation of a nonmember employee through collective bargaining or grievance processing serves the union's interest, irrespective of whether it receives an agency fee. A union is not "compelled" by the Act to represent nonmembers without compensation. By contrast, the uncompensated attorney receives nothing for his or her time and effort. Because exclusive designation fully and adequately compensates unions for free-riders, the Act does not constitute a taking of private property without compensation, and therefore does not violate Sections 13 and 242 of the Kentucky Constitution.
2. Taking of a Contract Right in Future Renewals.
The Unions do not spend too much time on this argument, presumably because the Act effectively carves out current contracts and will apply only to renewals of collective bargaining agreements. The Unions, however, argue that unions have negotiated for decades over union security clauses, have an expectation that these provisions will continue and that collective bargaining agreements are different from regular commercial contracts. We disagree.
Section 14(b) of the Taft-Hartley Act has been part of the NLRA since 1947. Congress has for 70 years expressly permitted states to enact right-to-work laws. Right-to-work legislation has been proposed in Kentucky for almost 20 years. We fail to perceive that any expectation in the continuation of a union security clause could be a reasonable expectation. See Morrisey v. West Virginia AFL-CIO ,
The Commonwealth correctly argues that Kentucky law has long recognized that the police power, based on "the general welfare of the community," may validly infringe on the right to contract. City of Covington v. Sanitation Dist. No. 1 ,
D. Emergency Legislation .
Finally, the Unions argue that the legislature impermissibly designated the Act as emergency legislation in violation of Section 55 of the Kentucky constitution, and that the trial court erred by failing to consider this argument. The trial court reasoned that the court is not the proper body to determine whether the stated emergency existed, and that the legislature is merely required to state an emergency purpose. This constitutional section states:
No act, except general appropriation bills, shall become a law until ninety days after the adjournment of the session at which it was passed, except in cases of emergency, when, by the concurrence of a majority of the members elected to each House of the General Assembly, by a yea and nay vote, entered upon their journals, an act may become a law when approved by the Governor; but the reasons for the emergency that justifies this action must be set out at length in the journal of each House.
KY. CONST. § 55. The reason set forth in the Act was that "it is critical to the economy and citizens of Kentucky to attract new business and investment into the Commonwealth as soon as possible, an emergency is declared to exist, and this Act takes effect upon its passage and approval by the Governor or upon its otherwise becoming a law." 2017 Ky. Acts ch. 1, § 14.
In Am. Ins. Ass'n v. Geary ,
In this case, and although the Unions disagree, we are unable to conclude that the legislature's proffered reason for an emergency has no rational basis. We therefore will not disturb that determination.
*605V. Conclusion.
Based on the foregoing reasons, we hold that the Unions' constitutional challenges to the Act are without merit. In this area of economic legislation, the legislature and the executive branch make the policy, not the courts. Long ago, in an opinion upholding a provision of the Railway Labor Act that authorized a union shop agreement notwithstanding a state's right-to-work law, Justice William O. Douglas aptly wrote, "[m]uch might be said pro and con if the policy issue were before us." Ry. Emps. Dep't v. Hanson ,
the question is one of policy with which the judiciary has no concern.... [The legislature], acting within its constitutional powers, has the final say on policy issues. If it acts unwisely, the electorate can make a change. The task of the judiciary ends once it appears that the legislative measure adopted is relevant or appropriate to the constitutional power which [the legislature] exercises.
Id. at 234,
All sitting. Minton, C.J., Hughes and Venters, JJ., concur. Minton, C.J., concurs by separate opinion in which Hughes and Venters, JJ., join. Keller, J., dissents by separate opinion in which Cunningham and Wright, JJ., join. Wright, J., dissents by separate opinion in which Cunningham and Keller, JJ., join.
United States Code.
House Bill.
Kentucky Revised Statutes.
2000 HB 12; 2003 Senate Bill ("SB") 77; 2004 HB 173; 2005 SB 205; 2006 HB 38; 2007 HB 328; 2009 SB 165; 2011 HB 345; 2013 HB 308; 2014 HB 496; 2015 SB 1; 2016 SB 3. Legislative Research Commission, http://www.lrc.ky.gov/ (last visited Aug. 30, 2018). Our research uncovered no version of the bill in the biennial sessions 1986 through 1998.
The House Committee hearing was accessible on KET (Part 1: https://www.ket.org/legislature/?archive& program=WGAOS& nola=WGAOS+018003& part=1& epoch=2017; Part 2: https://www.ket.org/legislature/?archive& program=WGAOS& nola=WGAOS+018003& part=2& epoch=2017) (last visited Aug. 30, 2018). Witnesses in favor of the Bill were Governor Bevin, Speaker of the House Jeff Hoover, Majority Whip Jonathan Shell, David Adkisson, President & CEO of the Kentucky Chamber of Commerce, Kevin Grove, an executive with CBRE, a commercial real estate firm in Louisville, and Julia Crigler, state director for Americans For Prosperity, Kentucky chapter. Witnesses opposing the Bill were Anna Baumann, policy analyst for the Kentucky Center of Economic Policy, whose affidavit was attached to Appellants' brief in this Court, and Bill Londrigan, one of the plaintiffs/appellants herein.
This quotation recited in the hearing appears to come from Jeffrey A. Eisenach, Right-to-Work Laws: The Economic Evidence , NERA Economic Consulting, http://www.nera.com/content/dam/nera/publications/2015/PUB_Right_to_Work_Laws_0615.pdf (last visited Sep. 21, 2018). The quoted private sector employment growth rate, 17.4%, in right-to-work states compared with the comparable rate, 8.2%, in non-right-to-work states.
Louisiana State University.
Except for the Act's designation as emergency legislation, purportedly in violation of Ky. Const. § 55, no claim is made that the Act's passage and enactment did not comport with the requirements of the Constitution for a valid law.
The plaintiffs/appellants are Fred Zuckerman and William Londrigan, as representatives respectively of the General Drivers, Warehousemen and Helpers Local Union No. 89 and the Kentucky State AFL-CIO, Affiliated Unions and their Members (collectively "the Unions").
The defendants/appellees are Office of the Governor, ex. rel. Matthew G. Bevin, in his official capacity as Governor, and the Commonwealth of Kentucky, Kentucky Labor Cabinet, ex rel. Derrick K. Ramsey, in his official capacity as Secretary of the Kentucky Labor Cabinet (collectively "the Commonwealth").
Kentucky Rules of Civil Procedure.
E.g. , Appellants' Brief at 11, Union Amicae's Brief at 1-5, 7. We recognize the importance of labor unions in United States' history and that of Kentucky. We acknowledge that unions have played a significant role in providing a path for many working families to the middle class, for improving working conditions and pay, for general acceptance of the forty-hour work week, and for other benefits. In 1933, our predecessor court had recognized the important function of labor unions:
the rights of economic self-preservation; of improving economic and social conditions; of agreement among men; of free speech and action; of pursuing one's safety and happiness; of striving to achieve legitimate ends and benefits by concert of action or collective bargaining; and the privilege of assembling together in a peaceable manner for the common good. Upon this side may be placed also the unconscionable sweatshops and lamentable conditions under which employees are all but compelled to work-those things which challenge an enlightened, humane society to opposition.
Music Hall Theatre v. Moving Picture Mach. Operators Local No. 165 ,
The issues in this case, however, are not whether unions are beneficial organizations, but whether the legislature's passing of the Act violated any provision of the Kentucky Constitution as argued by the Unions and the Union Amicae .
These numbers come from the table of contents of the Kentucky Acts' volumes. Interestingly, a number of the Public Acts had a decidedly local or restricted impact. See, e.g. , 1888 Ky. Acts ch. 632 (amending Ky. Gen. Stat. ch. 70, § 6 to increase from sixty days to six months the time period in which to file a mechanics' lien, but such amendment applied only to Madison County); 1888 Ky. Acts ch. 650 (exempting the Nicholasville, Danville and Lancaster Turnpike Company from the provisions of 1886 Ky. Acts ch. 1127 (requiring State's Sinking Fund Commissioners to approve the directors of a turnpike company in which the State of Kentucky owned stock) ); 1888 Ky. Acts ch. 1347 (amending Ky. Gen. Stat. ch. 106, art. 2, § 3 (relating to taverns, tippling-houses, etc.), but such amendment applied only to Madison County).
To quote Dr. Clark:
Henry Watterson and his "new departure" Democrats were diligent on the behalf of new industry. In Louisville, Watterson took the lead in pointing out new and profitable industrial opportunities. Boards of commerce distributed thousands of circulars at home and abroad describing Kentucky's resources and proclaiming Kentucky a land of unlimited business promise. Using the state's credit to encourage corporations was too unusual, however, for conservative agrarian legislators, and enthusiastic "new departure" partisans had to content themselves with granting generous tax exemption and special privileges. This encouragement to capital was soon noticeable, for railway mileage increased from 567 miles built and projected in 1860, to more than 1,500 miles in operation, in 1880. These roads represented a stated capital investment of $100,000,000. Along with the expansion of the Kentucky railway system, eastern capital poured into the state to develop timber and coal resources, and to build distilleries and tobacco warehouses.
Clark, A History of Kentucky , at 420.
Burnam stated:
I would hold these corporations to their just responsibility for every infraction of private right or public law, but I shall never consent by my vote, in obedience to popular clamor, to strike down those great benefactors of the Commonwealth ... which are daily and hourly giving employment and to thousands of laborers, who have linked with bands of iron the different portions of the country, and strengthened and consolidated the power, the civilizations and true greatness of the human race.
Prior to 1891, neither the constitution nor statutes limited where convict labor could be employed. Employers therefore could lease convict labor to lower wages or to take the place of free, striking workers. See Henry C. Mayer, Glimpses of Union Activity among Coal Miners in Nineteenth-Century Eastern Kentucky , 86 Reg. of the Ky. Hist. Socy 216, 220 (1988).
Laura Clay, leader of the women's suffrage in Kentucky and daughter of Cassius Marcellus Clay, the "Lion of White Hall," was permitted to address the Convention. Her plea was not for recognition of women's suffrage as a constitutional right, but merely for a provision authorizing the legislature to enact women's suffrage "when the time shall come." II 1890 Ky. Const. Debates 2090-93. This limited provision was not included in the drafted Constitution; Section 145 limited suffrage to "[e]very male citizen ... of the age of twenty-one." In 1912, the legislature authorized women to vote in elections for county school superintendents, as authorized by Ky. Const. § 155. Crook v. Bartlett ,
Section 2 of the Norris-LaGuardia Act contains a broad declaration of public policy and of the need to protect workers in joining unions, pursuing collective bargaining and resorting to concerted activities.
An earlier law, the National Industrial Recovery Act ("NIRA"), c. 90,
The Unions make no claim under the 14th Amendment. That provision requires persons who are similarly situated to be treated alike. Federal courts have held that right-to-work laws do not violate any provision of the United States Constitution. Lincoln Fed. Labor Union No. 19129, A.F. of L. v. N.w. Iron & Metal Co. ,
In Elk Horn Coal , we acknowledged that, on occasion based on particular facts, we had elected to apply a higher level of scrutiny to equal protection analysis in cases involving social and economic legislation.
We reject the Unions' analogy that labor unions are akin to the Kentucky Bar Association ("KBA") for purposes of the Act. Historically, labor unions, as opposed to trade or craft unions, arose as associations of workers/employees to improve pay and working conditions and to provide a unified group to assert rights against their employer. See Music Hall Theatre ,
to maintain a proper discipline of the members of the bar in accordance with these rules and with the principles of the legal profession as a public calling, to initiate and supervise, with the approval of the court, appropriate means to insure a continuing high standard of professional competence on the part of the members of the bar, and to bear a substantial and continuing responsibility for promoting the efficiency and improvement of the judicial system.
Kentucky Rules of the Supreme Court ("SCR") 3.025. The KBA is not a voluntary association, SCR 3.030(1), except in the sense that no one is required to practice law in Kentucky. The essential tenor of SCR 3.025 is that the KBA exists for the protection of the public: "proper discipline ... of the bar," "high standard of professional competence" and "efficiency and improvement of the judicial system[.]"
If the meaning were to prohibit all laws addressing these subjects, then entire Titles of the Kentucky Revised Statutes would be void. E.g. , KRS Title XXVII: Labor and Human Rights; KRS Title XXVII: Mines and Minerals; KRS Title XXIX: Commerce and Trade. Examples of Chapters within these titles are KRS Chapter 341, Unemployment Compensation; KRS Chapter 350, Surface Coal Mining; and KRS Chapter 355, Uniform Commercial Code.
The concurring in part/dissenting in part opinion seems to suggest that any time the legislature seeks to alter any policy yet grandfather pre-existing rights, duties or obligations, then the resulting legislation is constitutionally infirm under Sections 59 and 60. Such analysis ignores the longstanding case law cited in this opinion that establishes the two-part test for analyzing legislation under a special legislation challenge, and would severely hinder any legislative effort to effect change in socio-economic policy.
A union's duty of fair representation arises from its statutory designation as the exclusive representative of the bargaining unit and has been established by case law. See, e.g. , Steele v. Louisville & Nashville R. Co. ,
the rule announced in Vaca v. Sipes ,386 U.S. 171 , 190,87 S.Ct. 903 , 916,17 L.Ed.2d 842 (1967) -that a union breaches its duty of fair representation if its actions are either "arbitrary, discriminatory, or in bad faith"-applies to all union activity, including contract negotiation. We further hold that a union's actions are arbitrary only if, in light of the factual and legal landscape at the time of the union's actions, the union's behavior is so far outside a "wide range of reasonableness," Ford Motor Co. v. Huffman ,345 U.S. 330 , 338,73 S.Ct. 681 , 686,97 L.Ed. 1048 (1953), as to be irrational.
A careful reading of Bradshaw demonstrates that its holding must be considered in the historical and factual context in which it was decided. All Kentucky cases regarding attorneys' representation of indigent defendants prior to Bradshaw held that, as officers of the court, attorneys were expected to perform these services as a collateral function of the profession. E.g. , Slavens v. Commonwealth ,
At oral argument, the Unions sought to distinguish Janus by virtue of the Court's addressing the First Amendment right asserted by a public employee. While we acknowledge that difference, we note the Illinois Public Labor Relations Act's legal requirements for public unions share many features of the NLRA. See 5 Ill. Comp. Stat. Ann. 315/6 (West 2016) (requiring vote in a bargaining union for union representation; exclusive representation of all employees by the union; exclusive union negotiation with the employer on matters relating to "pay, wages, hours and other conditions of employment," including policy matters; union duty to represent the interests of all employees).
Recent examples of union organizing efforts in right-to-work states have occurred in South Carolina and Tennessee. See Doug Cameron, Boeing May Face Union Vote at 787 Plant , Wall St. J. (Jan. 20, 2017), https://www.wsj.com/articles/boeing-may-face-union-vote-at-787-plant-148492373l?mod=searchresults& page=1& pos=4 (visited Aug. 29, 2018) (article noting "long-running efforts to organize" by International Association of Machinists and Aerospace Workers); Christina Rogers, UAW Plans Another Push at Volkswagen , Wall St. J. (Sept. 17, 2014), https://www.wsj.com/articles/uaw-sets-up-local-at-volkswagen-in-tennessee-1410975613?mod=searchresults& page=1& pos=2 (visited Aug. 29, 2018) (article noting "[a] foothold in Tennessee would represent a major advance after a long series of failed attempts to organize Southern factories operated by foreign auto makers[ ]").
Even if we were to agree with the Unions, the Act would not be rendered void. First, we note that the Act has a severability clause, such that the invalidity of any section does not affect the other provisions. 2017 Ky. Acts ch. 1, § 13. Second, even absent a severability clause and an invalid emergency provision, the Act became effective ninety days following the adjournment of the legislature. Ky. Const. § 55 ; see McIntyre v. Commonwealth ,
Justice Felix Frankfurter, concurring in Railway Employes' , concluded his opinion with the following quotation:
"Where there is, or generally is believed to be, an important ground of public policy for restraint, the Constitution does not forbid it, whether this court agrees or disagrees with the policy pursued. It cannot be doubted that to prevent strikes, and, so far as possible, to foster its scheme of arbitration, might be deemed by Congress an important point of policy, and I think it impossible to say that Congress might not reasonably think that the provision in question would help a great deal to carry its policy along. But suppose the only effect really were to tend to bring about the complete unionizing of such railroad laborers as Congress can deal with, I think that object alone would justify the act. I quite agree that the question what and how much good labor unions do, is one on which intelligent people may differ; I think that laboring men sometimes attribute to them advantages, as many attribute to combinations of capital disadvantages, that really are due to economic conditions of a far wider and deeper kind; but I could not pronounce it unwarranted if Congress should decide that to foster a strong union was for the best interest, not only of the men, but of the railroads and the country at large."
Ry. Emps. ,
These quotations apply equally to both the Kentucky legislature and the United States Congress. In 2018, several members of the Kentucky House minority party filed a bill to reverse the Act. 2018 HB 237. Granted, this bill did not receive a hearing, but that fate was similar to that of any number of minority party bills seeking passage of right-to-work legislation prior to 2017. On the federal level, since § 14(b) of the Taft-Hartley Act represents an exception to federal preemption in labor-management relations, Congress can change that as well.