# Amicus Curiae Brief — NLRB v. Sears, Roebuck & Co.

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URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386414_0402%3A08

## Record

- **Collection:** Supreme Court brief
- **Document type:** Amicus Curiae Brief
- **Published:** January 1, 1975
- **Citation:** 421 U.S. 132

## Text

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IN THE

Supreme Court of the Gnited States

OCTOBER TERM, 1973

No. 73-1233

rr

NATIONAL LABOR RELATIONS BOARD AnD
PETER G. NASH, GENERAL COUNSEL,

Petitioners,
VS.

SEARS, ROEBUCK AND CO.,
Respondent.

ON: WRIT OF CERTIORARI TO THE UNITED STATES COURT OF
APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT

BRIEF ON BEHALF OF THE CHAMBER OF COMMERCE
OF THE UNITED STATES OF AMERICA,
AS AMICUS CURIAE, IN SUPPORT OF
RESPONDENT .

——_—_——————

MILTON SMITH
General Counsel

RICHARD BERMAN
Labor Relations Counsel
Chamber of Commerce of the JERRY KRONENBERG

United States of America JULIAN D. SCHREIBER
1615 ‘iH Street, N.W. HOWARB L. MOCERF
Washington, D.C. 20006 120 South LaSalle Street

Chicago, Illinois 60603

Of Counsel: Attorneys for Amicus Curiae.

BOROVSKY, EHRLICH &
KRONENBERG
120 South LaSalle Street
Chicago, Illinois 60603

Gunthorp-Warren Printing Company, Chicago @ 346-1717

TABLE OF CONTENTS

PAGE
Interest of the Amicus Curiae... . 75 F. Supp.

7

1. Douds v. Metropolitan Fede
672, 677.

2. See the opinion of Judge Fahy below, 87 U.S. App.
D.C. 293, 186 F.2d 326; and the dissenting opinion of
Judge Clark, International brotherhood v. N.L.R.B., 181
F.2d 34, 40. .

It seems clear from the foregoing, even before proceeding to
consideration of the relevant Board decisions from Centlivre to
the present, that the construction industry proviso has been rec-
ognized as privileging what may be characterized as “Denver
Building Agreements” confined to the site of construction. That
is, while the Supreme Court decision in Denver Building was
not overruled,’® agreements covering Denver Building relation-

10. That Denver Building was not “overruled” by the Supreme
Court’s decisions in General Electric, 366 U.S. 667, and Carrier, 376
U.S. 492, is fully set-forth in the Board’s decision in Markwell and
Hartz. 155 NLRB 319, enfd. 387 F.2d 79 (C.A. 5); see aiso 383 F.
2d 562 (C.A. 6). Markwell and Hartz, however, gives no support to
the contentions of the Charging Party concerning construction in-
dustry on-site agreements.

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ships at a construction site were exempted from the prohibition
of Section 8(e).™

In sum then, since the construction industry proviso deals with
“secondary” agreements, the “community of interest” involved
is not tied to gS of “unit work a. but rather to

baled: on - this interest poate pr mt serena ‘diere
which, being “secondary” would otherwise and elsewhere be
prohibited.

The legislative history supports this view. As pointed out by
the Board in Centlivre at footnote 17:

“The intent of Congress to retain the then existing law in,
connection with secondary boycotts in the construction’
industry is apparent from the following statement by the
House conferees:
“The committee of conference does not intend that
this proviso should be construed so as to change the
present state of the law with respect to the validity of
this specific type of agreement relating to work to be
done at the site of the construction project, or to re-
move the limitations which the present law imposes
with respect to such agreements. Picketing to enforce
such contracts would be illegal under the Sand Door
cases (Local 1976, United Brotherhood of Carpenters
(and Joiners of America, AFL, et al. (Sand Door &
Plywood Co.)) v. N.L.R.B., 357 U.S. 93 (1958))..
To the extent that such agreements are legal today
under Section 8(b)(4) of the National Labor Relations
Act, as amended, the proviso would prevent such
legality from being affected by Section 8(e). The pro-

RUMI oy

2 PPT GRE eR ERENT OR

11. Denver Building itsclf points away from the Charging Parties’
contentions. Thus it appears that the neutral general contractor there,
Doose and Lintner, did not employ electricians but, rather, sub-
contracted electrical work to the primary nonunion electrical contrac-
tor, Gould and Preisner. Indeed the Supreme Court, in rejecting the
Union’s contention that it had a primary dispute with Doose and
Lintner in seeking to force Doose and Lintner to make the project an
all-union job, pointed out that “If. for example, Doose and Lintner
had been doing all the electrical work on this project through its own
nonunion employees, it could have replaced them with union men
and thus dispose of the dispute.” (At p. 688.)

SEARS PENNE tg CIN a eR RII

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viso applies only to Section 8(e) and therefore leaves
unaffected the law developed under Section 8(b) (4).
The Denver Building Trades case and the Moore
Drydock cases would remain in full force and effect.
The proviso is not intended to limit, change, or mod-
ing at the site of a construction project. Restrictions
and limitations imposed upon such picketing under
present law as interpreted, for example, in the U.S.
Supreme Court decision in the Denver Building
Trades case would remain in full force and effect. .
House Conference Report on Labor-Management Re-
porting and Disclosure Act of 1959, House Report
1147, 86th Cong., Ist sessions, pp. 39-40.” (Empha-
sis supplied with respect to portions bearing on
“agreements.” )

This is supported further by the statements of Senators Ken-
nedy and Goldwater in the legislative history. Senator Kennedy
explained the 1959 amendments as follows:

“The first proviso under new section 8(e) of the National
Labor Relations Act is intended to preserve the present
state of the law with respect to picketing at the site of
a construction project and with respect to the yalidity of
agreements relating to the contracting of work to be done
at the site of a construction project.

“This proviso affects only section 8(e) and therefore leaves
unaffected the law developed under section 8(b) (4). The
Denver Building Trades (341 U.S. 675) and the Moore
Drydock (92 N.L.R.B. 547) cases would remain in force.

“Agreements by which a contractor in the construction
industry promises not to subcontract work on a construc-
tion site to a nonunion contractor appear to be legal today.
They will not be unlawful under section 8(e). The proviso
is also applicable to all other agreements involving under-
takings not to do work on a construction project site with
other contractors or subcontractors regardless of the precise
relation between them.’* Since the proviso does not relate

: at Relied on by the Board in Carvel, 152 NLRB 1672, discussed
elow.

All

to section 8(b) (4), strikes and picketing to enforce the
contracts excepted by the proviso will continue to be illegal
under section 8(b)(4) whenever the Sand Door case

(357 U.S. 93) is applicable.
“It is not intended to change the law with respect to the

judicial enforcement of these contracts; or with respect to

the legality of a strike to obtain such a contract.

“It should be particularly noted that the proviso relates
only to ‘contracting or subcontracting of work to be done at
the site of the construction.’ The proviso does not cover
boycotts of goods manufactured in an industrial plant for
installation at the jobsite, or suppliers who do not work
at the jobsite. [II Leg. Hist. Act of 1959, 1433(3).]”

(Emphasis supplied. )

And Senator Goldwater stated:

“There is a further exemption from the prohibitions against
‘hot cargo’ agreements only, under section 8(e), with respect
to a segmetnt of the building construction industry and the
labor unions representing employees in that segment of
the inaustry. This exemption is granted only where the
employer with whom such an agreement is signed is in the
construction industry and engages only in construction work
at the site; it does not apply where the employer, although
in the construction industry, is.not engaged in construction
work at the site such as enterprises primarily engaged in
supplying or transporting building construction materials.
Where an employer falls into this limited category, it is
not an unfair labor practice for such employer and a labor
union to enter into an agreement whereby such employer
ceases or refrains or agrees to cease or refrain from handl-
ing, using, selling, transporting or otherwise dealing in
any of the products of another employer, or to cease doing
business with any other person, and such an agreement is
not per se unlawful. Unlike the exemption for the apparel
and clothing industry, the prohibitions of the secondary
boycott ban in seétion 8(b) (4), as amended, are however,
. applicable to these situations. ,

“Thus, although employers and unions who are under this
exemption may lawfully enter into such agreements, and

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may resort to the courts for their enforcement under ap-
» plicable principles of contract law, no coercion or restraint
—economic or otherwise—may be used by any party to
such an agreement, even if entered into voluntarily by both
parties, to compel the other party to live up to the contract

anise niceneioeemennenlil i, etree Soom beesichine it" “iil Leg. Hist, (1959)
1858(1)] (Emphasis supplied. )

Turning now to consideration of relevant Board law from
4 Centlivre to the present, the Board decisions provide no sup-
port, but rather undercut, the contentions of the, Charging
' Parties.'’ In Centlivre itself, the Board, in accepting the view of
ly the Circuit Courts which had “uniformly rejected” the prior
Board view, stated: “in essence these [Court] cases hold that
the Board failed to give sufficient scope to the construction pro-
viso to Section 8(e).” The Board then treated the clauses there
- involved as within the construction industry proviso to Section
3 8(e)."* And the facts of Centlivre run contrary to the conten-
1 tions of the Charging Party here. The Respondent Unions there
2 included a Construction Trades Council and affiliated locals,
including Painters, Laborers, Carpenters, Plumbers, Sheet Metal
Workers, Iron Workers, and Electrical Workers. Also Re-
spondent was a Bricklayers Local. The Respondent Unions

13. Building Material & Construction Teamsters Union Local No.

. 216 (Bigge Drayage Co.), 198 NLRB No. 130, and General Team-

; sters Local 386 (Constriiction Materials Trucking, Inc.), 198 NLRB

No. 129, cited on appeal for the proposition that such agreements

. are secondary in nature and therefore illegal, are not in point because
7 they do not relate to on-site work.

14. The Board in footnote 11 of its decision stated:

“Neither the General Counsel nor the Charging Party disputes
the proviso’s application to the clauses in question. Accordingly,
there being no issue before us as to the validity of such clauses,
we assume, for purposes of this case, that they are within the
proviso and lawful,

There is no indication, however, that this reservation had any rela-

2 tionship to the factors argues for by the Charging Party in the instant
case. (See discussion of Colson and Stevens below.) Rather. it ap-
pears that the reservation is related to “sclf-help” issues decided
shortly thereafter by the Board in Muskegon, 152 NLRB 360, since

_ the clauses in Centlivre did contain “self- help” provisions. See
Centlivre, supra, at p. 861.

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sought from Centlivre, a general contractor, the “secondary”
clauses set forth on p. 861 of the Board decision. These agree-
ments would have required of Centlivre that ~nly signatories to
a contract with Respondent Unions would be permitted to work
on the construction site.’” As set out in the Trial Examiner's

decision: '”

“As general contractor, Centlivre itself employed 6 to 9
laborers, carpenters, and cement finishers. It subcontracted
particular craft operations to various firms in the Ft.
Wayne area.”

Centlivre had no collective-bargaining contract or relationship
with the Respondent Unions. And since Centlivre employed only
laborers, carpenters and cement finishers, the subcontracting
agreement restrictions would have applied to work of a kind

' Centlivre’s own employees did not perform. Thus it is entirely

clear that the elements contended for by the Charging Parties
in the instant cases as determinative for the validity of an on-site
agreement under the construction industry proviso were absent
in Centlivre and the Board, nevertheless, treated the clauses as
within the construction industry proviso.

Significant too is the fact that in Colson and Stevens itself
(where the facts were very like those in the instant case) the
factors the Charging Parties here contend to be preconditions
to proviso validity did not exist. That is, Colson had no col-
lective-bargaining agreement or relationship with the Unions
there involved and -the subcontracting agreement sought covered
work which employees of Colson did not perform. Thus the
Unions there (Carpenters and Laborers) sought to compel
Colson to grant recognition covering carpenters whom he did
employ. But the Unions also sought an agreement with secondary
subcontracting restrictions concerning any work Colson sub-
contracted and not confined to carpentry work.'’ The Board,
based on its pre-Centlivre view that only voluntary agreements

15. Supra, p. 856 and fn. 13.
16. Supra, p. 859.
17. See Colson, supra, at p. 1650 and 1651, and fn. 1.

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were within the construction industry proviso to Section 8(e),
found a violation on that basis. There is no scintilla of sugges- -
tion in the Board's decision that, had the subcontracting agree-
ment sought by the Unions been “voluntarily” entered into, the
Board might nevertheless have viewed the agreement as out-
side the construction industry proviso. So the underlying relevant
facts of Colson and Stevens, just as in Centlivre, are at odds
with the contentions of the Charging Parties here.

The Board’s holding in Church’s Fried Chicken, 183 NLRB
No. 102, on the facts there, is also directly contrary to the con-
tentions of the Charging Parties. While finding a violation of
Section 8(b)(7)(C) of the Act, the Board, upon exceptions
filed, affirmed the dismissal of the 8(b) (4) (A) and «B) al-
legations of the complaint. This was based on the Trial Ex-
aminer’s full discussion of the Section 8(b) (4) issues. Thus the
Trial Examiner pointed out that a violation of Section
8(b)(4)(A) would require a finding that the Union was at-
tempting to have Church sign an agreement violative of Sec-
tion 8(c). And this entailed a determination whether Church
was “an employer in the construction industry.” Upon con-
cluding, after discussion of the legislative history, that Church
was Such an employer, the Trial Examiner found that the agree-
ment which the Union sought would not have been violative of
Section 8(e) because of the construction industry proviso, and in

consequence, no violation of 8(b)(4)(A) could be found. As _

pointed out by the Trial Examiner “Church, instead of employ- }
ing a general contractor, acted as its own prime contractor :
through . . . its construction superintendent.” \It is clear that
Church had no collective-bargaining agreement or collective-
bargaining relationship with the Respondent Building Trades
Council, nor did Church directly employ employees of. the
crafts which might be represented by affiliates of the Respondent
Building Trades Council.’* The holding in Church’s Fried
Chicken then also negates the Charging Party’s contention.

18. With the possible exception of a laborer. See p. 3 of Trial
Examiner's Decision.

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The Board’s post-Centlivre decisions giving broad scope to
the proviso also militate against the Charging Parties arguments.
Thus in Muskegon, 152 NLRB 360, the Board considered the
validity under Section 8(e) of the following: clause:

“It is agreed that the members of Bricklayers Local Union
No. 5 may refuse to work on any job where any of the
work, irrespective of craft, is performed, has been per-
formed, or is to be performed by craftsmen who enjoy
less favorable wages and working conditions than is pro-
vided in the current collective-bargaining agreement be-
tween the equivalent Muskegon County Building Trades
Local Union and its contracting employers. Such refusal
shall not be grounds for discharge or other disciplinary
action, but shall be regarded as a failure of the employer
to provide suitable work.” (Emphasis supplied.)

As emphasized in the Board decision itself, the clause per-
mitted a strike by members of the Bricklayers Union where
any of the work irrespective of craft, is, has, or is to be
performed by craftsmen who enjoy less favorable wages and
working conditions than is provided in the current collective-
bargaining agreement between the equivalent Building Trades
Union and its contracting employers. The Board, in a detailed
discussion, held the clause to be within the ambit of Section
8(e) and beyond the construction industry exemption solely
because of the self-help feature which the clause contained.'®

Thus the agreement between the Bricklayers and Muskegon,
«apart from its “self-help” features, was viewed as valid under
the proviso, though it was applicable “irrespective of craft” and
was conditioned on the “wages and working conditions . . . in
the collective bargaining agreement between the equivalent . . .
Locai Union and its contracting employers.”

19. This is made clear in the decision itself and, particularly
footnote 13, where the Board rejected the General Counsel’s con-
tention based on Colson and Stevens, 137 NLRB 1650. The Board,
citing Cenilivre, noted that it had:

“recently reversed Colson and Stevens and now holds that picket-
ing to obiain a contract clavse which is within the construction
industry proviso to Section 8(e) does not violate Section 8(b)

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Then in Carvel, 152 NLRB 1672, the Board considered the
validity of the following clause:

“The Employer [Carvel] agrees that no journeyman or
apprentice who is a member of Local 217. . . will be
assigned to work or expected to work or required to work,
on any job or project on which a worker or person, is
performing any work within the jurisdiction of Local No.
217, if said worker or person is performing such work for
wages, hours or under any conditions of employment,
which are different from those established by this agree-
ment.” (Emphasis supplied. )

While again finding, as in Muskegon, that the clause was
unprivileged because of its “self enforcement provisions”, the
Board clearly viewed the clause as otherwise within the construc-
tion industry exemption. The Board specifically rejected the
contention there made that the proviso was inapplicable be-
cause the contract provision did not refer to the “contracting
out” or “subcontracting” of unit work and affected persons and
employers with whom Carvel had no contractual relationship.”
The Board stated: .

“. , . the application of the proviso does not, in our view,
dependfon the precise relationship between Carvel with
whom the Union has a contract and other employers and
persons on the job, in this instance the general contractor
and Ballard, who may be affected by the enforcement of
the contractual proviso. The language of the proviso itself
does not limit its applicability to the ‘contracting out’ or _
‘subcontracting’ of work by the employer with whom a
union has an agreement within the scope of Section 8(e).
Indeed, were the proviso given such a limited applicability,
it would be of little effect, for aside from the general con-
tractor on a job, the various firms involved normally have
control only of ‘unit’ work—that is, the particular work
for which they hold a subcontract. Restrictions on the
right to subcontract such work could well be primary, and
thus lawful without reference to the construction industry
proviso, because they are wholly outside the scope of
~8(e).” (At p. 1676.)

20. At p. 1677 and fn. 8.

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Thhe Board decision in Ets-Hokin, 154 NLRB 839, followed
as rexcently as Baltimore Contractors, 190 NLRB 415, also re-
flect the breadth given to the construction industry proviso ex-
cept where “self-help” provisions are included in the agreement.
In Eits-Hokin, the clause at issue provided:

“The Local Unions are part of the International Brother-
hood of Electrical Workers and any violation or annul-
ment of working rules or agreements of any other Local
Union of the IBEW, or the subletting, assigning, or transfer
of any work in connection with electrical work to any
person, firm or corporation not recognizing the IBEW as
the collective-bargaining representative on any electrical
work in the jurisdiction of this or any other such Local
Union by the Employer, will be sufficient cause for the
cancellation of this agreement, after the facts have been
determined by the International Office of the Union.

Tlhe Board in Ets-Hokin and in subsequent cases collected
in Btaltimore Contractors, supra, treated such a clause as within
the «construction industry proviso.

Thus, the Board decisions since Centlivre have either held
or viewed the construction industry proviso as privileging what
may, be characterized as Denver Building on-site agreements
despite the absence of the factors which the Charging Parties
heres contend are required conditions of proviso exemption,
whesre the facts were not at odds with those of the Charging
Partties’ cases. And the full scope given to the proviso in such
decijsions points directly away from the Charging Parties’ con-
tenttions.

Aknd if, as the Board has held in cases discussed above, the
exeimption applies where the “agreeing” employer has no em-
ployees of the kind or craft involved,?" there is no reason to

2(0a. As a matter of fact the Board has held, with court approval,
that: a “person” can violate 8(e) by entering into a proscribed agree-
memt with a labor organization /nternational Association of Machinists
& Ajerospace Workers, AFL-CIO (Lufthansa German Airlines), 197
NLIRB No. 18, enfd. 85 LRRM 2257 (C.A. 9 January 9, 1974).
Thus, if a person who employs no one can violate 8(e) it would be

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attach significance to whether the agreement is in a “collective-
bargaining contract” or whether there is a “collective-bargain-
ing relationship” between the union and employer (for instance,
the general contractor) party to the agreement. Since any such
“collective bargaining contract” would not fix general terms
and conditions of employment for any of the employer’s own
employees, no independent significance appears with respect to
this contention of the Charging Parties.

The Court decision in Connell, supra, involving issues under
the anti-trust laws, has also been carefully and fully considered
in light of the foregoing discussion based on cases arising un-
der the Act itself. With the fullest respect to the Court, we see
no basis for relying on the dictum of the majority view and the
discussion in the minority opinion of Connell which would
warrant rejection of the foregoing discussion and analysis. Thus
the Court in Connell was apparently of the view that the ab-
sence of a “collective bargaining relationship” would preclude
a finding that the construction industry exemption to Section
8(e¢) might operate. And the Court apparently believed that
this question has not been considered by the Board and Courts.

But these arguments*' (the absence of a representable class
of employees and its variant—the absence of a —collective-
bargaining relationship) are essentially indistinguishable from
those rejected by the Board and Courts in the past. Thus, in
addition to the above discussion, it should be noted that the
absence of an employment relationship theory was directly

axiomatic that such a person could enter into a privileged 8(e)
proviso agreement absent a showing that Congress intended the
proviso to be narrower in coverage than the prohibition to which it is
an exception.

21. The Charging Parties here argue that the fundamental repre-
sentation concepts and policies reflected in Section 9(a) and 8(b) (7),
when read in conjunction with the exception expressly created in 8(f),
are undermined by permitting picketing for subcontracting agreements
of employers who do not employ workers in the craft represented by
such unions. See footnote 6 above and the discussion below concern-
ing the “equities” position in‘the dissenting opinion of Connell.

Al9

before the Court in San Bernadino.” There, in supporting its
argument that the agreement sought had an unlawful secondary
effect, the Board offered the following analysis:

“In the context presented in this case, where the sub-
contractor clause is sought to be imposed upon a general
contractor for whom subcontracting is the »ormal mode
of carrying on his enterprise . . . the terms of Article I-F
and its uniform interpretation by the Union snow [that]
the clause amounts to a commitment by the signafory
employer to use only AFL-CIO subcontractors, and, ac-
cordingly, to boycott another employer for reasons not
strictly germane to the economic integrity of the principal
work: unit.

“Indeed, Article I-F limits the category of permitted sub-
contractors even in those crafts which, by hypothesis, the
signatory employer does not himself employ. The record
contains no evidence as to the number of [the prime con-

tractor’s] employees, if any, nor as to their craft or trade. -

But it is improbable that . . . a small contractor, actually
hires members of the entire range of trades represented in
home construction; even the largest general Contractors
tend to employ only presons in the basic trades, subcon-
tracting the specialty work. Article I-F, however, makes
no distinction according to whether or not a subcontractor
could be ‘competing’: with the signatory employer's own
employees. Thereby it reveals its purpose to cause a boy-
cott of ‘nonunion’ (i.e., non-AFL-CIO subcontractors.”

(Board brief in San Bernadino, pp. 41, 42, citations
omitted. Emphasis supplied.)

The D. C. Circuit Court was not persuaded, rejecting, sub
silento, the absence of a “collective-l yrgaining relationship”
between the picketing Council and picketed employer as a basis
for finding subcontracting agreesaents unprotected by the build-

_ing and construction proviso to 8(e).
And in Colson and Stevens,”* in the Ninth Circuit Court of

22. Bui ‘Ilding and | Construction Trades C. ouncil of San Bernadino
and Riverside Counties, et al. v. N.L.R.B., 328 F.2d 540 (D.C. C.A.,
1964).

23. Construction Production & Maintenance Laborers Union,
Local 383, AFL-CIO and United Brotherhood of Carpenters and

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Appeals, the Board relied upon the context of requirements
under Section 8(b)(3) and 8(d) of the Act. Thus, in describ-
ing the “secondary subcontractor clause” in issue, the Board
briefly characterized it as a “regulation of third party relation-
ship extrinsic to the employment relationship” and therefore as
involving a non-mandatory bargaining subject which the unions
could not strike to obtain (Board’s brief at p. 26).

With respect to the dissenting opinion in Connell, Judge Clark
presented two approaches to the Section 8(e) on-site proviso,
one based on equitable considerations and the other based on
his view of the legislative history.

The legislative history of the construction industry proviso
and its interpretation in cases arising under the Act is dealt
with at length earfier. It is not repeated here. As for the dis-
senting Judge’s views concerning “one shot” agreements and
the pattern of bargaining in the construction industry prior to
enactment of the 1959 amendments to the Act, the Board’s
brief in Colson and Stevens, supra, is enlightening. There, in
discussing the construction industry practice legitimized by the
proviso, the brief states:

“As was pointed out in a 1950 study of building trades
bargaining in the 12 counties of southern California, where
a master agreement establishing basic employment stand-
ards has been in effect since 1941 in which 19 building
trades unions participate together with the 10 building
trades councils and the major contractors’ associations,
‘for the well-established employers, it is also important
to have a floor under competitive labor costs.’ The struc-
ture of the industry, with. subcontracting a customary way
of doing business, leads.employers to favor subcontracting
clauses as a means of undergirding such a ‘floor.’ The
Southern California master labor agreement referred to
above contains such a clause, similar to the clause that
the petitioner Unions sought to force upon Colson, as a
result of which ‘any. subcontractor [of a signatory con-

Joiners of America, Local 1089, AFL-CIO v. N.L.R.B., (Colson and
Stevens Construction Co.), 323 F.2d 422 (C.A. 9, 1963).

A21

tractor] who attempts to depart from the established union
standards’ faces cancellation of his contracts and an im-
mediate loss of business.’ On the other hand, if the con-
tractor is unwilling in [these] circumstances to cancel the
contract, or if he lets a subcontract to one who refuses
to become bound by the master labor agreement, then the
signatory contractor faces suit by the unions for specific
performances with an interruption of work on his project
occasioned by a change of subcontractors, and perhaps a
damage suit by the ousted subcontractor. The bargaining
pattern, with these effects, Congress believed legitimate
and left lawful. . . .” (Board’s Colson and Stevens brief,
pp. 19-21.)

This is particularly significant when it is realized that organ-
izing in the building and construction industry both prior to
and subsequent to the 1959 amendments, was and is primarily
carried on by building and construction trades councils on be-
half of their constituent craft locals. The building trades agree-
ments proffered are not conventional collective-bargaining
agreements, nor is a conventional collective-bargaining rela-
tionship sought, but rather an attempt is made to obtain skeleton
agreements (containing little more than subcontracting provi-
sions) which in turn are augmented by the execution of collec-
tive-bargaining agreements by the individual trade unions, the
latter agreements containing provisions governing wages and
other substantive conditions of employment. As the Court ob-
served in Dallas Building and Construction Trades Council v.
N.L.R.B., 396 F. 2d 677 (C.A. D.C.), at p. 682:

“. . . Congress intended by means of Section 8(e) to pre-
serve the Status quo of bargaining in the construction in-
dustry; and in 1959 ‘umbrella’ agreements like the one
proposed here were, as they are today, commonplace, for
collective-bargaining is traditionally conducted at several
levels in the construction industry. .. .”

24. The text of a typical building and construction trades coun-
cil agreement is set forth in detail in Dallas Building and Construction
Trades Council, 164 NLRB 9339. fn. 2 at p. 940.

A22

Under this arrangement the building and trades council is
as much as a “stranger” to the general contractor and his em-
ployees, if any, as the Plumbers Union was to Connell. The
subcontracting clause encased in such a trades council “shell”
agreement can no more be said to be obtained in the context
of a collective-bargaining relationship than the proviso agree-
ment sought or obtained in such cases as Colson and Stevens,
supra, Centlivre, supra, and Church’s Fried Chicken, supra.

As for the “equities” raised in the dissenting opinion, they
have been substantially dealt with by the Board and Courts in
cases under Section 8(b)(7) of the Act. Thus, the Board and
Court in Dallas General, supra, have pointed out the absence
of any inconsistency between ‘the Board’s interpretation of Sec-
tion 8(b)(4) and the purposes of Section 8(e). The Court in
Dallas General pointed out that “Sections 8(b)(7) and 8(e)
are aimed at wholly different problems.” Thus, the cases make

- clear that while considerations involving Section 9(a) selection
of a bargaining representative may be directly related to Section
8(b)(7) of the Act,” such considerations are unrelated to
“secondary” agreement issues under Section 8(e).

In view of all the foregoing, including Supreme Court and
Circuit Court decisions, relevant legislative history and the
Board’s post-Centlivre decision, we find the contentions of the
Charging Parties to provide no basis to establish under current
Board law, violations of either Section 8(e) or 8(b)(4) (A)
of the Act.

/s/ PETER G. NASH
Peter G. Nash
General Counsel

25. See, e.g., in addition to Dallas General, supra, Lane-Coos-
Curryv-Douglas Counties Building and Construction Trades Council,
AFL-CIO, 168 NLRB 538, enf. 415 F.2d 656 (C.A. 9); Los Angeles
Building and Construction Trades Council, et al. (Lively Construc-
tion Co.), 170 NLRB 1499; Church’s Fried Chicken, supra; and
Construction Trades Council of Philadelphia and Vicinity (Samuel
E. Long, Inc.), 201 NLRB No. 42, enfd. 485 F.2d 680 (C.A. 3,
1973).

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386414_0402%3A08. Public record. Not legal advice.
