United States Court of Appeals, Third Circuit.: Nos. 75 - 1586 and 75 - 1587
United States Court of Appeals, Third Circuit.: Nos. 75 - 1586 and 75 - 1587
2d 298
91 L.R.R.M. (BNA) 2438, 78 Lab.Cas. P 11,283
This is a consolidated appeal from two orders of the district court granting
NOTICE
3Altemose Contractor Refuses to enter into a Sub-Contractor's
4Agreement with the Philadelphia, Pennsylvania Building & Construction
5Trades Council, AFL-CIO;
TEAMSTERS PICKET LINE PLEASE HONOR; and
SLOW DOWN LOW WAGE AREA AHEAD
6
Although all of Altemose's operations were picketed, the events giving rise to
the unfair labor practice charges against the Trades Council occurred, for the
most part, in the vicinity of Altemose's Valley Forge Towers project, the largest
project it had under construction.
The picket lines established by the Trades Council did not bring activities to a
halt at any of the Altemose projects. However, they did disrupt the work in
progress to a certain extent, at least at the Valley Forge Towers site. There,
Ralph D. Williams, the Trades Council's business representative in charge of
the picketing, appealed directly to deliverymen employed by Altemose's
suppliers to honor the picket line. As a result of his appeals and the picket line
itself, a number of scheduled deliveries were either never completed or delayed.
While the picketing was in progress, Thomas Magrann, the Trades Council's
business manager, and J. Leon Altemose, Altemose's president, appeared
together on a local Philadelphia radio show to debate the controversy between
them. During the talk show, Magrann made a number of comments concerning
the purpose of the Trades Council's picketing of the Altemose projects. For
example, he stated that the Trades Council was attempting 'to get Mr.
Altemose, to you know, sign a Building Trades agreement'. In addition, he
expressed his desire to resolve the long dispute between Altemose and the
Trades Council. In this regard, he indicated that he would gladly 'sit down and
negotiate something with Mr. Altemose'. Magrann also stated that the Trades
Council would accept Altemose's employees 'into the union without no
initiation fees and no test'.
When the picketing persisted for more than thirty days and the Trades Council
failed to petition for a representation election under 9(c) of the NLRA, 29
U.S.C. 159(c), during that period, Altemose filed a 8(b)(7)(C) unfair labor
practice charge against it with the Board. After investigation, the Regional
Director determined that there was reasonable cause to believe that 8(b)(7)
(C) had been violated and he therefore petitioned the district court for a
temporary injunction to restrain the allegedly illegal picketing.
11
On January 24, 1975, four days after the picketing had ensued, fourteen
Strescon drivers were sent to the Valley Forge project to pick up approximately
thirty empty trailers. However, upon arriving at the construction site, the
drivers, all members of Teamsters Local 384, decided to honor the Trades
Council's picket line upon the request of Williams, its business representative.
Since it needed the trailers to fulfill commitments elsewhere, Strescon soon
arranged with the Teamsters Local for its members to cross the picket line for
the limited purpose of removing the empty trailers. However, the drivers
continued to refuse to cross the picket line to make any of the scheduled
deliveries. As a result, only one of the approximately ninety deliveries
scheduled between January 20 and February 18 was completed.
12
Because of the refusal of its drivers to cross the Trades Council's picket line,
Strescon contracted with Raritan Motor Express ('Raritan') to make its
deliveries to Altemose for it. Pursuant to this agreement, Raritan drivers began
delivering concrete planks to the Valley Forge project on February 18. During
that afternoon, Russell Dobson, a Raritan driver, was waved over to the
roadside as he approached the construction site by Trades Council pickets,
including Williams. Dobson was asked by Williams if he intended to cross the
picket line. He responded affirmatively, stating that he had been out of work for
six months and that he had to support his family. Williams warned him that if
he 'didn't want to be out of a job another six months (he) shouldn't deliver to the
(Valley Forge) Towers jobsite'. Dobson, however, ignored this remark and
completed his delivery.
13
14
The very next day, Strescon filed a 8(b)(4)(ii)(B) charge against the Trades
Council alleging that it had violated the secondary boycott provisions of the
NLRA. After investigation, the Regional Director determined that there was
reasonable cause to believe that the Trades Council had violated this provision,
and he, therefore, petitioned the district court for a 10(l) injunction.
B. ISSUES ON APPEAL:
16
Since the 10(l) proceeding is thus ancillary to the main unfair labor practice
action committed to the Board's exclusive jurisdiction, the Regional Director
faces a relatively insubstantial burden of proof when he petitions a district court
for temporary injunctive relief pursuant to 10(l). He need not prove that a
violation of the NLRA has in fact occurred. Nor must he convince the district
court of the validity of the legal theory upon which he predicates his charges.
Both questions are for the Board's determination in the first instance, subject to
the right of appellate review. Rather, he need only demonstrate that he has
reasonable cause to believe that the elements of an unfair labor practice are
present and that the legal theory upon which he proceeds is 'substantial and not
frivolous'. Samoff v. Building & Construction Trades Council of Phila. &
Vicinity, 475 F.2d 203 (3d Cir. 1973), vacated for mootness, 414 U.S. 808, 94
S.Ct. 151, 38 L.Ed.2d 44 (1973); Schauffler v. Local 1291, International
Longshoremen's Ass'n, 292 F.2d 182 (3d Cir. 1961).
17
Similarly, the scope of appellate review is extremely limited in the event the
district court determines that the Regional Director has satisfied his burden of
proof and enjoins the challenged activities. Its findings will not be disturbed on
appeal unless they can be said to be 'clearly erroneous'. Schauffler, supra.
18
19
20
Turning to the Trades Council's first argument, we cannot say on the basis of
the record before us that the district court erred in finding that there was
reasonable cause to believe that the Trades Council's picketing was conducted
with the objectives prohibited by 8(b)(7)(C) in mind. Both the picket signs
displayed by its members and Magrann's own statements during the radio
debate indicate that the Trades Council hoped to secure a 'sub-contractor's
agreement' with Altemose through its picketing. The Board has held, in an
order enforced by this Court, that picketing directed at obtaining such an
agreement with an employer that does not recognize the union for bargaining
purposes has the proscribed 'recognitional' purpose as at least one of its
objectives. Building & Construction Trades Council of Philadelphia and
Vicinity (Sam E. Long, Inc.), 201 NLRB 321 (1973), enf'd, 485 F.2d 680 (3d
Cir. 1973), cert. denied, 416 U.S. 937, 94 S.Ct. 1938, 40 L.Ed.2d 288 (1974).
Accord Lane-Coos-Curry-Douglas Counties Bldg. & Con. Trades Council v.
N.L.R.B., 415 F.2d 656 (9th Cir. 1969); Dallas Building & Construction Trades
Council v. N.L.R.B., 130 U.S.App.D.C. 28, 396 F.2d 677 (1968). This is so
because an employer's right to subcontract is considered a mandatory subject of
collective bargaining in light of the substantial impact that subcontracting can
have on the terms and conditions of employment of his employees. Fibreboard
Paper Products Corp. v. N.L.R.B., 379 U.S. 203, 85 S.Ct. 398, 13 L.Ed.2d 233
(1964). A union is thus deemed to be seeking recognition as the employee's
bargaining agent when it pickets an employer for a 'sub-contractor's agreement'
because it is then attempting to secure a contract which affects the terms and
conditions of employment of those employees.
21
Nor can we say that the district court was clearly erroneous in concluding that
there was reasonable cause to believe that the picketing had an 'organizational'
purpose as well. As previously noted, Magrann stated during the radio debate
that the Trades Council would accept Altemose's employees into the union
without an initiation fee or test. This statement alone, coming from the Trades
Council's chief executive officer, suggests that the Council was seeking to
organize Altemose's non-union labor force. In addition, throughout the course
of the debate Magrann expressed a great interest in the wages and working
conditions of Altemose's employees. Finally, he indicated that he would gladly
sit down and negotiate with Altemose at any time in order to settle the long
dispute between them.
22
Keeping in mind the preliminary nature of a 10(l) proceeding and the light
burden of proof confronting the Regional Director in these matters, we believe
that these statements substantiate sufficiently the district court's conclusion that
the Trades Council was attempting to force Altemose's employees to accept it
as their bargaining agent through its picketing of their employer. Consequently,
if the picketing was unprotected by the 'publicity proviso' to 8(b)(7)(C), the
district court committed no error in issuing the challenged injunction.
23
24
Once again, however, we cannot agree with the Trades Council's position. The
'publicity proviso' only exempts from the proscriptions of 8(b)(7)(C) what the
Second Circuit has termed 'a comparatively innocuous species of picketing,
having the immediate purpose of informing or advising the public' of an
employer's non-union policies, and that, only when no substantial curtailment of
his business results. N.L.R.B. v. Local 3, I.B.E.W., 317 F.2d 193 (2d Cir.
1963). It affords no protection whatsoever to picketing that is designed to
appeal to other organized labor groups to exert economic pressure on an
employer, regardless of the actual impact of that appeal. N.L.R.B. v. Local 3,
I.B.E.W., supra; Brotherhood of Carpenters and Joiners of America, Local 1849
(Robert Young Developments, Inc.), 208 NL 461 (1974).
25
Moreover, even assuming that there was no evidence indicating that the Trades
Council had engaged in impermissible 'signal' picketing, we would refuse to
override the district court's injunction. The Trades Council's picketing would
only enjoy the protection of the 'publicity proviso' if it did not result in a
substantial disruption of Altemose's business. However, the Regional Director
introduced evidence showing that quite a number of deliveries were either
delayed or prevented by the Trades Council's actions. During the initial three
weeks of the picketing, Altemose did not receive approximately ninety
scheduled deliveries of Strescon's unique concrete planks, essential to the
Valley Forge project, as a result of the refusal of Strescon's deliverymen to
cross the Trades Council's line. In addition, the picket line prevented the
scheduled deliveries of at least two of Altemose's other suppliers and delayed
essential telephone repair service at the Valley Forge site.
27
We also note that there was no evidence of an attempt on the part of the Trades
Council to minimize the adverse impact of their picket line on Altemose's
operations. On the contrary, the only evidence introduced indicated that the
Trades Council actively sought to halt the flow of goods and services to the
Altemose construction sites. We believe that the introduction of this evidence
concerning the adverse effect of the Trades Council's picketing on Altemose's
business satisfied the Regional Director's light burden of proof in the district
court. Whether or not the Council's activities constituted a 'substantial
disruption' of Altemose's business is, of course, an issue to be determined by
the Board.
28
We therefore find no error in the district court's conclusion that the Regional
Director had reasonable cause to believe that 8(b)(7)(C) had been violated by
the Trades Council.
29
30
On appeal, the Council contends that the district court erred in admitting the
phone call evidence because John Hogarth, the recipient of the call, was unable
to identify Williams as the caller. Hence, it asserts that there was no record
basis for the district court's decision. Alternatively, the Trades Council
maintains that even if the evidence concerning the call was properly received
below, it was undeserving of any probative value and, therefore, an insufficient
basis on which to predicate the issuance of a 10(l) injunction.
31
32
The mere fact that the Trades Council failed to carry out its threat can have no
bearing whatsoever on the nature of the phone call. We, therefore, agree with
the district court that the phone call constituted a threat against Strescon. And,
of course, a single threat of such economic retaliation against a neutral is
sufficient to violate 8(b)(4)(ii)(B). N.L.R.B. v. Local 254, Building Service
Employees Int'l Union, 359 F.2d 289 (1st Cir. 1966); Truck Drivers, Local 705,
Teamsters (Johns-Manville Products Corp.), 205 NLRB 387 (1973), enf'd, 166
34
Our examination of the record, however, fails to disclose any error in the
district court's admission of Hogarth's testimony. The circumstantial evidence
pointing to Williams as the maker of the call was both substantial and
persuasive. In the first place, the caller identified himself as 'Mr. Ralph
Williams of the Building & Trades Council'. Williams was, in fact, its agent in
charge of picketing at the Valley Forge site. The phone call was placed on the
afternoon of February 18 and complained of the renewed deliveries of Strescon
materials to the Valley Forge project. Earlier that same afternoon, Williams had
stopped Russell Dobson, a Raritan driver, and learned for the first time that
Raritan was making Strescon's deliveries. Hence, both the timing and subject
matter of the call indicate that Williams did in fact place it. Finally, the caller
alluded to the earlier agreement permitting Strescon to remove its empty trailers
from the Valley Forge site. Certainly, Williams, in charge of the Valley Forge
pickets, would be aware of both this earlier arrangement and Strescon's delivery
procedure of leaving trailers to be unloaded by Altemose's employees.
35
On the other hand, the evidence cited by the Council as support for its
conclusion that some 'prankster' placed the call is entirely unconvincing. No
nexus exists between the call in question and prior anonymous complaints of
the Council's activities to the local Sheriff. This particular call was not
anonymous; it was not to the Sheriff; and it threatened, rather than complained
of, picketing by the Council. In fact, there was no evidence whatsoever of any
similar calls to a neutral employer. Nor does Williams' denial of placing the call
affect the admissibility of Hogarth's testimony. If anything, his denial raises a
question of credibility for the Board to resolve in the main unfair labor practice
proceeding. Consequently, we hold that the relevant circumstantial evidence
was sufficient to establish Williams' identity as the caller for purposes of the
DeRohn rule. Accordingly, Hogarth's testimony was properly admitted by the
district court.
36
2. Intervention by Altemose
37
38
Even assuming the factual validity of Altemose's charges against the Regional
Director, we believe that the intervention it seeks is foreclosed by the plan
language of 10(l). Section 10(l) was enacted as a narrow exception to the
Norris-LaGuardia Act, 29 U.S.C. 101 et seq., which, for the most part,
deprived the federal courts of all power to issue a labor injunction. Since the
jurisdiction of the federal courts to issue a 10(l) injunction is predicated on
this exception, it language cannot be accorded a more expansive interpretation
than that clearly within the intent of Congress.
40
Although 10(l) does not speak to the appellate stage of a 10(l) proceeding, it
clearly delineates the respective rights and duties of both the charging party and
the Regional Director in the district court. By its very terms, it authorizes only
the Regional Director to petition for temporary injunctive relief when he has
reasonable cause to believe that certain provisions of the NLRA have been
violated. At the same time, the role of the charging party is strictly
circumscribed. Rather than granting it the status of a full party litigant, 10(l)
limits his participation to an appearance by counsel and an opportunity to
present testimony. That Congress should thus limit the role of the charging
party reflects its desire that 10(l) should be utilized only in the public's behalf.
As the Senate report on the provision stated:
41 have provided that the Board, acting in the public interest and not in
'(W)e
vindication of purely private rights, may seek injunctive relief . . . in the case of
strikes and boycotts defined as unfair labor practices.' S.Rep. No. 105, 80th Cong.,
1st Sess. at 8.
42
Congressional limitation.
43
One final matter is worthy of note on the intervention issue. We believe that
Altemose's reliance on the Supreme Court's decision in Scofield is unfounded.
A 10(l) proceeding is of a completely different nature than that considered by
the Court in Scofield. As a result, the policy considerations, such as the
prevention of duplicate appeals and circuit shopping, which persuaded the
Supreme Court to allow the prevailing party before the Board to intervene in
the appellate proceeding to review or enforce the agency's final order are totally
absent. Scofield thus has little or no applicability in the 10(l) context.
44
Accordingly, the orders of the district court will be affirmed and Altemose's
motion to intervene will be denied.
Our narrative of the events giving rise to this litigation is drawn from the
district court's findings of fact
At the time of the proceeding below, the new federal rules of evidence were not
yet in effect. Hence, the district court's actions were governed by Rule 43(a) of
the Federal Rules of Civil Procedure. This rule directs a federal district court to
admit evidence whenever admission would be permissible under either the rules
of evidence of the state in which the court sits or a rule or statute of the United
States. Here, the court, sitting in Pennsylvania, applied the Pennsylvania rule
favoring the admission of Hogarth's testimony
Altemose has been previously granted amicus curiae status in this Court