# Brief in Opposition to Petition for a Writ of Certiorari — General Motors Corp. v. International Union

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Brief in Opposition to Petition for a Writ of Certiorari
- **Published:** January 1, 1967
- **Citation:** 389 U.S. 857

## Text

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INDEX

Question Presented 2... ccccccccvecccvanccccces “ee
‘ Statement of the Case....... Veamaeey aebareere een

' CITATIONS

Cases

District 50 United Mine Workers, Local 13942, 358
, MM CR oes scl cvccesutedueke sea: .

Fafnir Bearing Co., 151 NLRB 332 (1965)......... 5, 7

Fibreboard Paper Products Corp. v. NLRB, 379
U. S. 203, affirming 322 bs 2d 411 (D.C. Cir.

SME Sav cvccstaseesuateheceahietsucsceiene) 6, 7,8
NLEB v. C & C Plywood Corp., 385 U. 8. 421...... . 79
NLRB v. Acme Industrial Co., 385 i a 9

Puerto Rico Telephone Co. v. NLRB, 359 F. 2d 983
(Ist Cir. 1966) ......:.. eee cece ee ete eeeees

- Teamsters Local 24 v. Oliver, 3958 = & See 8

Timken Roller Bearing Co., 70 NLRB 500 (1946),
enforcement denied on other grounds, 161 F.
2d 949 (6th Cir. 1947)... ccc cecccccccccccens,

Universal Camera Corp. v. NLRB, 340 U. 8S. 474...

ii ,

‘Section 8(a)(1), National Labor Relations Act, as
amended, 29 U.S.C. §158 (a)(1).........0006+

Section 8(a)(5), National Labor Relations Act, as’
amended, 29 U.S.C. §158(a)(5)........ yates iy

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Supreme Court of the United States

‘OCTOBER TERM, 1967
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No. 316

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GENERAL MOTORS CORPORATION,
‘ Petitioner,
: > “Te f
INTERNATIONAL UNION, UNITED AUTOMOBILE,
AEROSPACE AND AGRICULTURAL IMPLEMENT .
WORKERS OF AMERICA (UAW),
*, aagenmaat.
—t—
ON PETITION FOR A WRIT OF CERTIORARI TO THE UNITED —

' STATES COURT OF APPEALS FOR THE
DISTRICT .OF COLUMBIA CIRCUIT _

—+-—

_ BRIEF FOR RESPONDENT IN «
OPPOSITION aie

.

QUESTION PRESENTED

Where contracting out permanently reduced the number
of jobs in the bargaining unit by six, did the.court below
err in holding that the Company was not excused from
bargaining on it, either because the effect was de minimis, —
or because the management clause, dealing only with meth-

‘ ods changes, waived the Union’s ae to = on
ne out? =~ ,

STATEMENT OF THE CASE

~The Facts ©

There was no dispute ‘between the Board and the court
_of appeals as to the basic facts of this case, which a are as
follows. . ee

Prior to Jane 17, 1963 finished cars peer at the
Company’s Southgate, California plant were temporarily
stored’ and then loaded for shipping in two distinct loca-—
tions and in two series of operations, performed by two °
groups of employees—one employed by the Company and
the other by, an outside employer, PMT. The temporary
storage operations were performed on the Company owned
OK lot by the eighteen bargaining unit drivers in the Com-
pany’s Department 66. The loading operations were per-
formed by PMT employees on the PMT lot, which .was ©
‘ immediately adjacent to the OK lot and leased to PMT |
by the Company. Finished cars were driven onto the OK
lot and temporarily parked there by six of the Department —
66 drivers. When enough cars for a load had thus been
. parked the remaining twelve drivers in Department 66
drove them to a gate in the fence that separated the OK
and PMT lots. PMT employees called gatemen drove
‘the cars through the fence and parked them together on
the PMT lot. ° Other PMT employees called truck drivers
and rail loaders then drove the cars onto haulaway trucks
and rail cars on which they were transported to dealers
in the Pacific coast area. (Appx C, pp. 28-29).?

On June 17, 1963 the Company consolidated the tem-
porary storage and loading — into one od leasing

4 Record references are all to the appendices included at the end of —

the Petition; ie., “Appx A” refers to the court’ of appeals’ decision,
“Appx C” to the Board’s supplemental decision, and “Appx D” to the
Board’s original decision. A reference included before the period for
the sentence preceding it relates only to that sentence. ;

- PMT the OK lot and removing the fence between the two
lots, making them one, calied the PMT lot. Finished cars
are still driven out onto the lot and temporarily parked,
‘.. but now they are driven directly from those parking spots _
straight onto the haulaway trucks and rail cars, rather
than being parked a second time in preparation for load-
ing, as before. (Appx C, pp. 29-30)...

Under the new system all jobs are performed by PMT
; employees. The.jobs of the twelve Department 66 drivers
who drove the cars from the first parking spots to the gate
have been elimiriated, as have those of the PMT gatemen .
who drove the cars from the gate to the, second parking

spot, on. the PMT lot. ‘The jobs of driving the parked
ears onto haulaways and rail cars are, of course, still per-
“formed and still by PMT employees. * And the jobs of driv-
_ ing the cars out onto the lot and parking them are still
performed, but no longer by the six Department 66 drivers
_ who performed ‘them in the past. ‘These jobs are now
performed by PMT gatemen. (Appx C, p. 30).

- The Board characterized the transfer of this work to
| Seid as.an ‘‘aspect” of the overall methods change (Appx

C, p. 31). The Court of Appeals characterized it as con-
‘tracting out (Appx A, p. 22).

The change of June 17 was preceded by a ical: 7
Union meeting on June 12 at which the Company detailed
what it was going to do on June 17. In-response to the
Union’s protest, the Company replied that the manage
ment clause in the UAW-GM National Agreement gave it
a contract right to do what it was going to do, so there
was no point in discussing it (Appx D, pp. 38-39). . Two
days later, on June 14, the Union filed an unfair ‘labor
practice charge against the Company accusing it of violat- .
‘ing Sections 8(a)(1) and (5) of the Labor Act by re-
fusing to engage in collective bargaining on the proposed i
re out. On J une 17 the bi put the change >

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into effect. On June "20, after four meetings on the sub- |

ject, the parties ‘agreedwon placement and pay for the De-
er 66 drivers re by the change (Appx C, p.

The Decisions Below

In its Supplemental Decision the Board siti that
six bargaining unit jobs. had been transferred to PMT;
however, it refused to call the transfer contracting out

_ and characterized it instead.as an ‘‘aspect” of the methods

change (Appx C, pp. 30-31, 32 n.8). The Board reasoned

a

that, since the Company’s conduct was not contracting out:
but merely an ‘‘aspect” of the methods change, and since

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the management clause of the parties’ National Agreement |

provides that ‘‘the methods, processes and means of manu-
facturing are solely and exclusively the responsibijity of
the Corporation’, the Company : ‘was authorized to engage
in the methods change, including this ‘‘aspect”, and the
Union had waived its statutory- right-to-collective bargain-

‘ing on the matter. The Board was at pains to make clear

that since it had not found contracting out, it was not raling ~

that the Union had waived its rights to bargaining on con- |

tracting out, (Appx C C, pp. 27-28).

+ The Board cited two additional grounds for its decision.
- First, it concluded that the change ‘‘did not result in any
significant detriment to the employees in the bargaining
unit”, noting that it did not appear that ‘‘there were any
layoffs as a result of the change” (Appx C, pp. 31-32).
Finally, the: Board noted that the Union had neither -re-
quested that the Company delay its action nor suggested
any alternatives, and that, after the change, the parties
reached agreement on placement and pay for the displaced
Department 66 drivers. It characterized this’ conduct as
fulfilling ‘‘any claimed duty to bargain” the Company had.

os (Appx G; pp. 33-34).

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The count of appeals ruled that the management clause
in the parties’ agreement was not a ‘‘clear and unmistak-
able’? waiver by the Union of its statutory right to collec-
tive bargaining on the action the Company had taken.

‘The court called that action contracting out, noting that,

“It took away the jobs of six members of the Union”
(Appx A, p. 22). The court concluded that the ‘‘agreement
that ‘the methods, processes and means of manufacturing

poration’ is certainly not-a‘clear and unmistakable’ waiver
of the union’s right to bargain where a change in methods
amounts in fact to contracting out.”* The court particularly |
noted Fafnir Bearing Co., 151 NLRB 332. n. 1, 387, 341
(1965), in\ which the Board ruled that virtually identical
management clause language was not a waiver. of the
union’s right to bargaining on contracting out. The court
added, “Neither is it ‘clear and unmistakable’ that ‘the

__-methods, processes and means of manufacturing’ include
parking manufactured cars.’’ (Appx A, p. .23).

On the “‘significant detriment’’, or de minimis, point, the

. court ruled that ‘‘the change. hed an adverse impact on

the bargaining unit since it diminished by six the whole

‘number of jobs performed by its members. This was not
a mere ‘de minimis’ violation of the employer’s duty to |

bargain with the union.’’ (Appx A, p. 22). With respect to
both the discussions which ‘preceded the change and the
subsequent agreement concerning placement and pay for
the displaced Departmerit 66 employees, the court rejected

the Board’s characterization of them as fulfilling’ the Com- .. |
pany’s duty to bargain on the contracting out. :

In summary, the points of difference between the ‘Board
and the court were as to the following: (1)) whether the. \

| manent clause was a ‘cleat and unmistakable waiver”

of the Union’s right to bargaining on the Company’s action;
(2) whether that action was contracting out, or an ‘‘as-

pect’’ of the. methods sige (3) whether ad ‘loss. of

- are solely and exclusively the responsibility of the Cor- :

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six bargaining unit jobs was de minimis; and (4) er
the discussions preceding the change and the subsequent
_ agreement on placement and pay for the displaced em-
_ployees “satisfied, the company’s, daty to bargain on the

© decision to contract out?

~ In both its original and supplemental devisions the Board
treated this as a contract waiver case (Appx D, p. 41;

oe Appx C, pp. 27-28) ; that is; one in which the central. -ques-

tion is whether the parties’ contract contains a clear and
unmistakable waiver by ‘the union of bargaining: on the
employer’ s action. The Board ruled there was a waiver,
because the Company’s action was a methods change. ‘The
court ruled there was not.a waiver because the Company’ 8
action was vontracting out. ‘As it states in the memorandum ~
filed in this. Court, the Board regards this case as turning —
on its own facts and as mevng no ‘‘broad sweep”. ax

ARGUMENT

The Deckon Below i Comct and Preset no Inport
es Question of Federal Law.

~The Company’ 8 main reason for requesting the writ is —
so that this Court can review ‘‘the issues in this case which
were not resolved by. the Court’s Fibreboard decision.”
~ However, the Company merely lists four factual differ-
-erces between this ease and Fibreboard Paper Products
Corp. v. NLRB, 379 U.S. 203, affirming 322 F. 2d 411
(D.C. Cir. 1963), and asks. the Court to review this case
because it is different from Fibreboard.! This, by itself,

= a ceil eli i teenies toes
St Semler Relane Tite: Coant, (See Board’s Memorandum, p. 1,
n.1).

2In stark contrast to the Company's now neariy-total reliance on

; . Fibreboard was its attitude toward that decision in the court of appeals.
- There it cited Fibreboard once in its supplemental brief and not even
. once in its principal brief. — ’

POM AMR LEIA COREA OI BALI ARRI DO ie IEE —

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_ is hardly reason for review. Moreover, as we shall demon-

strate, the questions suggested by the factors the Company
points to are either unimportant, were settled in Fibreboard,

- or have been settled in NLBB v. C é C. Plywood Corp., 385

UB. 421.

‘First, the Company urges that in this case‘ the collective
bargaining agreement contains. provisions (the manage-

Ment, transfer, and waiver clauses) which it contends waive -

the Union’s statutory right to collective bargaining on
contracting out. That the Company reads this particular

agreement as including such a waiver while the court of

- appeals does not, hardly presents an important ungettled

question of federal labor law, especially in view of (1)

the Board’s decision’ in Fafnir Bearing Co., 151 NLRB

332 n.1, 337, 341 (1965), in which it read a management

clause almost identical to the one involved here as not a -

‘waiver of the Union’s right to bargaining 6n contracting

out, and (2) NLRB v. C & C Plywood Corp., 385 U.S. 421,

- 423 n.4, in which this Court affirmed the Board’s ruling

that a waiver clause virtually identical to the one here
(waiving “‘the right . .:. to bargain collectively with re-

_ spect to any subject matter not . . . covered in this Agree-

OO ee + re

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ment”) did not waive the Union’s right to bargaining on
unilateral employer action not authorized by the contract.

Sécond, the Company points to the fact that in this case
there were no layoffs or discharges.‘ But, six bargaining

_ *In ‘a footnote the Company rather half-heartedly tenders an alleged
conflict on this point with Puerto Rico Telephone. Co, v. NLRB, 359 F.
2d 983 (1st Cir. 1966), and District 50 United Mine Workers, Local
13942 v. NLRB, 358 F. 2d 284 (4th Cir. 1966). But as the court below
Pointed out, those cases are not apposite for while there were no layoffs
caused: by the contracting out there, neither was there any reduction in

+the number of jobs in the bargaining units (Appx A, pp. 22-23).

Indeed, in Puerto Rico Telephone, supra at 988, the. First Cireuit
indicated that either layoffs or a reduction in unit jobs triggers the
bargaining duty: & mats ‘ : ;

“In short, we cannot say. . . that the bargaining unit or any
employee in it suffered a significant detriment or .was otherwise

‘unit employees, though they got similar jobs elsewhere in
the plant, lost their parking lot driving jobs to PMT em-
ployees ; and the total number of jobs in the bargaining unit
available for unit employees was permanently diminished
by six. In Fibreboard, supra at 215, this Court defined
contracting out which is a mandatory subject for bargain- .
ing as: ‘‘the replacement of employees in the existing ‘bar-
gaining unit with those of an independent contractor to
do the same work under similar conditions of employment”’.
While there were no layoffs in Fibreboard, the Court’s
reliance (379 U.S. at 212-13) on Teamsters Local 24 v.
Olwer, 358 U.S. 283, and Timken Roller. Bearing Co., 70
“NLRB 500 (1946), enforcement denied on other orem.
161 F: 2d 949 (6th Cir. 1947), in neither of which were
there layoffs, makes it plain that where unit jobs have
_, been lost, immediate layoffs are not a sine qua non of the
statutory duty to bargain on contracting out.

-Third, the Company points to the fact that in two it
- ings in advance of the. change the Company explained it
to the Union and the Union neither requested a delay nor
proposed alternatives, and to the fact that after the change:
’ the parties agreed on placement for the displaced Depart-
- ment 66 drivers. But the Company omits mentioning that
~ at the second of the two pre-change meetings the Company
insisted it had a contractual: right to do what.it was going -
to do, so there was no, point in discussing it, and also fails
* to note that the agreement on placement for the Depart- —
ment 66 drivers was reached after the Union had filed its.
unfair labor: practice charge protesting the Company’s.
refusal to bargain on the contracting out decision (see pp.
3-4-supra). That the Compary regards this conduct as
satisfying its bargaining duty while the court of appeals
_ does not hardly presents’ an important question. ‘of federal
labor law.

pee

a en

‘tion of the present standard oe seldom to be called into |
~ action.”’ |

“gy
Fourth, the Company asserts that the fundamental issue
in this case is one on which the Union could have gone to
arbitration, and implies that the Board erred, therefore, |
in examining the parties’ -contract—a suggestion it makes:

' for the first time here: But'the fundamental issue in this | \
_, case was whether the management clause contains a clear| *

and unmistakable waiver of the Union’s statutory right to

bargaining on what the Company had done—an issue the:

Board has always viewed as within its "eompetenee. This

Court recently ‘approved that view in NLRB v. C€C Ply-

wood Corp., supra, rejecting the. same point now. urged
by petitioner here. Cf. NLRB v. Acme Industrial Co.;

385 U.S. 482.

Finally, the Company claims the court: of a eal ? Te.
versal of the Board was in violation of. the “substantial
evidence’? rule of Universal Camera Corp: v. NLRB, 340°
US. 474... But the two questions invyolved—whether what
the Company -did was contracting out, and whether its |
‘‘overall conduct” fulfilled its duty to bargain on the con-
tracting out decision—are not questions of fact or con-
flicting. evidence—they are questions of law for resolution

on undisputed facts. Universal Camera thus has no ap-
_ plication; and, indeed, its application would not aid the
- Company, for the Trial Examiner, who heard the evidence,

found that the Company did contract out and did not satisfy °
its duty to bargain about it. Thus, even if it were assumed

arguendo that the court of appeals reversed the Board

on findings of fact, it would be evident that the court’s’
rulings. were based ‘‘on the record considered as a whole”’,

‘including the Trial Examiner’s decision, and therefore not .
in contraverition of Universal Camera, supra at 492-97.

Moreover, as this Court said in Universal Camera, supra
at 490: ‘‘Our power to review the correctness of applica-

‘CONCLUSION |

e.
For the foregoing reasons om Wo submits that the
- writ should. not issue. — tae

Respectfally submitted,

‘STEPHEN I. SCHLOSSBERG,
’ JOHN A. FILLION, ~ .
: BERNARD F. ASHE,
JORDAN ROSSEN,
8000 E. Steen,
Detroit, Michigan 48214.

JOSEPH L. RAUH, JR.,
JOHN SILARD,
1001 Connecticut Ave., N. W.
Washington, D. C. 20006, .
_ Attorneys for Respondent,

_ By: JOHN A. FILLION.

August 3, 1967.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385603_0747%3A2. Public record. Not legal advice.
