Judges: Wickhem, Fairchild, Fowler, Fritz
Filed Date: 3/17/1944
Status: Precedential
Modified Date: 10/19/2024
The complainants, Schoemann and Bezie, were employees of the company of long standing and had priority rights respecting tenure of employment and re-employment. Both were *Page 421 members of an A. F. L. union. The company entered into a contract with the respondent union, which is affiliated with the C. I. O. Sec. 3, art. I, of this contract reads as follows:
"All new employees at the end of their probationary period shall be required to either join the union or secure a working permit from the union. The union agrees that the cost of its working permits shall at no time exceed one and one-half times the cost of its monthly dues. The members of the union shall remain in good standing in the union as a condition of employment. Present employees who at the date of signing of this agreement are not members of the union shall be required to secure a working permit from the union as a condition of further employment. The union reserves the right to refuse to grant either membership in the union or a working permit of the union to not to exceed one per cent (1%) of the employees covered by the terms of this agreement."
The complainants were discharged by the company for not being either members of the union or having work permits issued by it. The state board found that the making of this contract and discharging employees for not being members of the union or having a permit issued by it constituted an unfair labor practice under the Wisconsin Employment Relations Act because it discriminated "in regard to hiring and tenure of employment" and thereby encouraged membership in the union.
The respondent contends that the judgment of the circuit court should be affirmed for two reasons: (1) That the board had no jurisdiction to entertain the proceeding because exclusive jurisdiction of controversies as to unfair labor practices involving interstate commerce is vested in the National Labor Relations Board; (2) that the findings of the state board are not supported by the evidence. The appellant contends to the contrary. The claims of the parties under (1) will first be considered.
(1) The extreme positions of the parties on this question may be stated as follows: *Page 422
The union claims that where a national act makes a specific regulation respecting interstate commerce, and commits the enforcement of that regulation to a federal board, the states have no power to make a regulation respecting that specific regulation, and no state administrative board has jurisdiction of a controversy respecting that specific regulation.
The state board claims that the supreme court of the United States has decided the proposition above stated against the union in Allen-Bradley Local v. Wis. E. R. Board,
The union cites as authority for its claim that the board is without jurisdiction Gilvary v. Cuyahoga Valley R. Co.
Erie R. Co. v. New York, supra, was an action to recover a penalty under a state statute limiting hours of labor of a certain class of employees to eight hours in twenty-four. Congress had enacted a statute limiting the hours of that class by railroads engaged in interstate commerce to nine hours in twenty-four. The railroad was engaged in interstate commerce. The case holds that there could be no division of the field of regulations. A judgment awarding recovery was reversed.Napier v. Atlantic Coast Line R. Co., supra, is to the same effect. This case reversed Cab Curtain Cases,
It must be conceded that if the case were to be ruled wholly upon the Erie R. Co. and Napier Cases, supra, and theobiter statement above quoted from the Cuyahoga Valley R. Co.Case, supra, respondent's contention would have to be sustained. But the United States supreme court has gone a long way since those cases were decided and it is still on its way. The decisions of the supreme court in Allen-Bradley Local,etc., v. Wis. E. R. Board, supra, and Hotel Employees' Localv. Wis. E. R. Board, supra, are directly contrary to the rule of the cab-curtain case that it is immaterial that the statute involved in the cab-curtain case was enacted in the exercise of the police power of the state. That provisions of the state act involved in the Allen-Bradley and Hotel Company Cases were enacted in exercise of the state's police power was given vital force by the supreme court of the United States in sustaining the state board's jurisdiction to enter the orders involved in those cases. The Allen-Bradley Case also definitely determines that the mere fact that the congress has enacted a statute defining unfair labor practice affecting interstate commerce and creating a federal agency for its enforcement does not preclude a state legislature from also enacting a statute on the same general subject and creating an agency for enforcing the state statute, this regardless of how specifically the practice may be defined in the federal act. The Allen-Bradley Case also determines that the state agency may take jurisdiction of proceedings to enforce the state act unless there is conflict between *Page 425 the two acts. The thing that determines jurisdiction of the state board is conflict between the two acts, not the mere fact that the congress has passed a federal act affecting interstate commerce.
In the case of Wisconsin Labor R. Board v. Fred RuepingL. Co.
It is also to be noted that in National Labor Relations Boardv. Algoma Net Co. (7th Cir.)
We will now compare the particular provisions of the statutes wherein the respondent claims that conflict exists. For convenience of comparison the statutes so far as material for the purpose of comparison are set out in the margin.1 *Page 428
Inspection of the parallel columns in the margin shows that sec. 157 of the federal act and sec.
Inspection of the parallel columns also shows that sec. 158 (1) and (3) of the federal act and sec.
We adhere to the ruling of the Rueping Case, supra, and hold that the state board had jurisdiction to proceed unless and until the federal board should assume jurisdiction of the particular controversy.
The respondent also urges that the state board was without jurisdiction because the national board assumed jurisdiction to supervise an election at which the employees of the company chose the respondent union as their bargaining agent. We consider this position untenable. In supervising the election the national board did not take jurisdiction of any *Page 430
unfair-labor-practice controversy. The proceeding was not adverse. The national board's function was merely to certify the result of the election. Southern S. S. Co. v. National Labor RelationsBoard (3d Cir.),
(2) Does the evidence support the finding of the state board? Both applicants, Schoemann and Bezie, were employees of the company at the time the contract involved was entered into. Each was a member of an A. F. L. union and each had priority rights as to tenure of employment and reemployment. Each was discharged because he was neither a member of the respondent union nor had a work permit issued by it. The A. F. L. members were one day called together and told they must take out permits for June and July by 4 o'clock. Bezie took out a permit for these two months but refused to take out any for August. Schoemann applied for a permit but the union agent who was issuing permits ran out of blanks, and told those waiting, including Schoemann, that they should sign a promise to take out a permit and go back to work and get their permits later. Schoemann signed the promise and went for his permit before commencing work on the day he was to get it but could not find the union agent who was issuing the permits and went to work. He did not go again. Schoemann claims that while at work a few days later he was visited by a company official and a union agent and asked to show a permit and not having one was told he was discharged. There is a conflict as to whether he then tendered the fee for permits for *Page 431
June and July. He claims the union agent then said a permit would be refused him under the one per cent (1%) provision of the contract. The board made no finding as to these matters but whatever the fact as to them may be it is immaterial. As first above stated, the applicants were in fact discharged pursuant to the contract, because they did not have permits and the discharges were made by the company on request of the union and this is admitted. The findings of fact of the board over which the controversy exists in the Schoemann case, part of which are stated with the board's "conclusions of law" are as follows: 1. The company, "by discrimination in regard to the hiring and tenure of employment of William Schoemann encouraged membership in the . . . [respondent union] and is engaging in unfair labor practices within the meaning of sec.
As the contract is not an all-union contract the lack of a vote of the employees is not directly material. The validity of the order entered must stand wholly on finding 1 above stated. This finding is in effect that the making of this contract and discharging the employees pursuant to it for not having a work permit constituted an unfair labor practice because the discrimination involved encourages membership in the respondent union.
The crucial point of the case thus is whether the evidence supports finding 1 of the board. The board determined that it did. That finding must be sustained if the evidence before the board warrants the board's conclusion of fact. The respondent urges that there is no evidence whatever to support that finding because nobody gave any evidence that it so operated. We consider that the conclusion is warranted from *Page 432 the language of the portion of the contract in controversy, the signing of it by the company, and the discharge of employees pursuant to it for not being members of the union or procuring permits from it. The contract provides that employees who were members of the union at the time it was entered into should retain their membership and keep in good standing in the union, which implies payment of dues, or be discharged. This certainly encourages membership in the union. As to the work permits, the cost is one and one-half times the monthly membership dues. There is nothing in the evidence to show that this is not more of a financial burden on the employees than maintenance of membership in the union. Requiring payment of one and one-half times the union dues for a permit obviously assists the union and sec. 157 of the federal act, as above stated, by implication makes denial by an employer to employees of the right not to assist a labor union an unlawful labor practice. We think that the board was warranted by the evidence in finding the company guilty of an unfair labor practice.
The trial judge relied in dismissing the complaint on his conclusion that the instant contract is valid because made by the bargaining agent of the company employees and the company. That this contract was valid unless the signing of it and discharging employees for not complying with it operated to encourage joining or assisting the union we agree. If it were an all-union contract question would arise whether the want of a three-fourths vote of the employees made it invalid. And in that case the question would arise whether a conflict existed between the state and federal acts because the state act by its terms requires the three-fourths vote of employees as prerequisite for such a contract and the federal act does not so require. The federal act by its terms does not make a three-fourths vote of employees necessary, but the senate committee report that recommended the federal act for *Page 433 passage definitely indicates that it was intended by the act to leave to the states the matter of validating or invalidating "closed-shop" agreements, which an all-union contract is. Senate Reports on Public Bills, Col. 9879, Report 573. But that question is not here involved. The validity of the instant contract rests wholly on whether it and action by the company pursuant to it encourages joining or assisting the union.
Upon finding 1 the state board ordered that the company should, (1) cease and desist from, (a) encouraging membership in the respondent union "by discharging, refusing to reinstate or otherwise discriminating against its employees in regard to hiring and tenure of employment or any term or condition of employment;" (b) giving effect to sec. 3 of art. I of the agreement involved, which section contained the provisions first above stated. (2) Take the following affirmative actions: (a) Offer to Schoemann reinstatement of his former position or substantially equivalent position without prejudice to his seniority and other rights and privileges. (b) Make Schoemann whole for any loss of wages suffered by reason of his discharge by paying to him the full amount of wages he would have earned from the date of his discharge to the date of his reinstatement less earnings if any received by him during such period. (c) Immediately post notices throughout its plant and maintain them for sixty days that it would cease and desist from encouraging membership in the respondent union by any discrimination in the hiring or tenure of employment of any of its employees, and that it would not recognize or enforce the provision of the contract requiring as condition of employment that its employees either become or remain members of the union or obtain a working permit from it as a condition of further employment. (d) Notify the state board of what steps it took to comply with the order.
The finding as to encouragement of membership in the union being supported, the action by the company pursuant to the *Page 434 order is by force of the state statutes an unfair labor practice, and the cease-and-desist portions of the order of the board must be enforced.
As to the affirmative portions of the order in Schoemann's case we consider them valid. Schoemann was wrongfully discharged and was therefore entitled to reinstatement and to payment of wages until he procured another job. The other affirmative portions of the order are proper under sec.
The same order against the company was made in the Bezie case as in the Schoemann case and warranted upon the same evidence and for the same reasons.
In the Bezie case an order was also made against the respondent union based upon a part of the board's cross petition therein that was not contained in its cross petition in the Schoemann case. The Bezie cross petition charged that the union committed an unfair labor practice in that it violated sec.
We consider also that the inference that the union as the bargaining agent induced the company to make the contract is warranted. Obviously the contract is to the advantage of the union and of its employee members. This being so it is a *Page 435 fair inference that the bargaining committee initiated the negotiations for the provision. The board was thus warranted to find interference by the union with the right of Bezie and other employees to refrain from becoming members of the union or assisting its activities by taking out a permit, and by so doing the union committed an unfair labor practice.
The order as against the union required the union to cease and desist from: 1. (a) Attempting to induce the company to interfere with its employees in the enjoyment of the rights guaranteed by sec.
The respondent union seems to think the state board is not justified in presenting the instant appeal because the complainants did not appeal and the company did not join in the union's action for review or participate in the union's effort to sustain the judgment. The implication is that as none of the parties interested complain of the circuit court's judgment, the board should not complain. The board properly appealed. The state *Page 436
board under the state act, like the national board under the national act, "asserts a public right vested in it as a public body, charged in the public interest with the duty of preventing unfair labor practices." National Licorice Co. v. National LaborRelations Board,
By the Court. — The judgment of the circuit court (in the Schoemann case) is reversed, and the cause is remanded with directions to enter judgment confirming the order of the Wisconsin Employment Relations Board and commanding its enforcement as prayed in the cross petition of the board.
(a) Powers of board generally.
The board is empowered, as hereinafter provided, to prevent any person from engaging in any unfair labor practice (listed in section 158) affecting commerce. This power shall be exclusive. . . .
Sec. 157. (National Act) Sec.111.04 . (State Act)Right of employees as to Rights of employees. organization, collective bargaining, Employees shall have the right etc. to self-organization and the Employees shall have the right right to form, join or assist to self-organization, to form, labor organizations, to bargain or assist labor organizations, collectively through to bargain collectively representatives of their own through representatives of their choosing, and to engage in own choosing, and to engage in lawful, concerted activities for concerted activities, for the the purpose of collective purpose of collective bargaining or bargaining or other mutual aid or other mutual aid or protection. protection: and such employees shall also have the right to refrain from any or all of such activities.
Sec. 158. (National Act) Unfair labor practices by Sec.
111.06 (State Act) employer defined. It shall be an What are unfair labor unfair labor practice for an practices. employer — (1) It shall be an unfair labor (1) To interfere with, restrain, practice for an employer or coerce employees in the exercise individually or in concert with of the rights guaranteed in others: section 157 of this title. (a) To interfere with, restrain (3) By discrimination in or coerce his employees in the regard to hire or tenure of exercise of the rights guaranteed employment or any term or condition of in section111.04 . employment to encourage or discourage (c) To encourage or discourage membership in any labor membership in any organization: Provided, that labor organization, employee nothing in sections 151-166 of agency, committee, association or this title or in any other statute of representation plan by the United States, shall preclude discrimination in regard to an employer from making an hiring, tenure or other terms or agreement with a labor organization conditions of employment; (not established, maintained, provided, that an employer shall or assisted by any action defined not be prohibited from entering in sections 151-166 of this title as into and all-union agreement with an unfair labor practice) to require representatives off his employees as a condition of employment in a collective-bargaining unit, membership therein, if such where three-quarters or more of labor organization is the the employees in such collective representative of the employees as bargaining unit shall have voted provided in section 159(a) of affirmatively by secret ballot in this title, in the appropriate favor of such all-union agreement collective-bargaining unit covered in a referendum conducted by the by such agreement when made. board. . . .
Erie Railroad v. New York ( 1914 )
Gilvary v. Cuyahoga Valley Railway Co. ( 1934 )
Allen-Bradley Local No. 1111 v. Wisconsin Employment ... ( 1942 )
National Licorice Co. v. National Labor Relations Board ( 1940 )
Hotel & Restaurant Employees' International Alliance, Local ... ( 1942 )
Napier v. Atlantic Coast Line Railroad ( 1926 )