Copyright (c) 2001 Arizona Board of Regents
Arizona Law Review
Spring, 2001
43 Ariz. L. Rev. 63
LENGTH: 29102 words
ARTICLE: Death by Lethal Injunction: National Emergency Strikes Under the
Taft-Hartley Act and the Moribund Right to Strike
Michael H. LeRoy*
& John H. Johnson IV**
* Professor, Institute of Labor
& Industrial Relations and College of Law, University of Illinois at
Urbana-Champaign (J.D., University of North Carolina, 1986; M.A., Labor and
Industrial Relations, University of Illinois at Urbana-Champaign, 1983; M.A.,
Political Science, University of Illinois at Urbana-Champaign, 1981; A.B.,
Political Science, University of Illinois at Urbana-Champaign, 1978).
** Assistant Professor, Institute of Labor
& Industrial Relations and Department of Economics, University of Illinois at
Urbana-Champaign (Ph.D. in Economics, Massachusetts Institute of Technology,
1999; B.A., Economics, University of Rochester, 1995).
SUMMARY:
... One explanation centers on Mackay Radio v. NLRB. There the Supreme Court
stated that employers have a right to hire permanent striker replacements. ...
Part II of this Article examines the origin of the labor injunction. ... The
Origin of the Labor Injunction ... These studies should have devoted more
attention to the history of the labor injunction. ... A. Early Uses of the
Labor Injunction ... Sherry v. Perkins involved the first American labor
injunction. ... Still another court issued an injunction so broad that it
applied to a nonunion barber who hung a sign in his shop to discourage
patronage by striker replacements. ... The law provides that if a labor
dispute in a substantial segment of an industry imperils the national health or
safety, the President may appoint a board of inquiry to investigate. ... In
relating this injunction to the judiciary's blemished history, Douglas found
that this injunction was also wrong because it interfered with free collective
bargaining to the disadvantage of labor. ... An injunction frees both parties
from the threat or reality of a work stoppage and at the same time removes all
economic pressure for a settlement. ... The first sharp drop in strikes that
began the current decline occurred just after President Carter invoked
Taft-Hartley national emergency strike procedures. ...
TEXT:
[*63]
If the federal court is to be merely an automaton stamping the papers an
Attorney General presents, the judicial function rises to no higher level than
an IBM machine. Those who grew up with equity and know its great history should
never tolerate that mechanical conception.
--Justice William O. Douglas
I. Introduction
A. Context of the Public Policy Problem
When the National Labor Relations Act (NLRA) was enacted in 1935,
Congress enabled employees to bargain collectively by providing an unabridged
right to strike.
As part of this change in public policy, Congress sought to reduce the role of
courts in labor disputes. Until then, employers had relied on judges to
[*64] issue injunctions against strikers and their leaders, enforceable by fines and
imprisonment, even when the only strike activities were peaceful work stoppages.
Prior to the NLRA's enactment, federal courts had been so prone to enjoin
strikes that Congress divested their jurisdiction over labor controversies in
1932 by passing the Norris-LaGuardia Act.
That Act, however, was only partially successful in protecting peaceful
strikes, because the individual worker remained powerless to bargain with her
employer.
Moreover, without a federal right to strike, state courts--unaffected by
Norris-LaGuardia--continued to enjoin strikes.
Thus, when Congress provided a right to strike in the NLRA, it carefully chose
language to forewarn courts not to interfere in labor disputes.
[*65]
Sixty-five years later, the right to strike is a shadow of what Congress
intended. One explanation centers on Mackay Radio v. NLRB.
There the Supreme
[*66] Court stated that employers have a right to hire permanent striker
replacements.
Many scholars see this doctrine as a negation of the right to strike.
President Reagan's firing of nearly 12,000 air traffic controllers in response
to a 1981 strike is also identified as a pivotal event in the decline of
strikes.
Some observers argue that this strike-response encouraged private employers to
break, rather than settle, strikes.
[*67]
A more general explanation is that the declining right to strike results from
strategic union avoidance.
According to this view, employers provoke strikes to sever bargaining
relationships with unions.
They defy the NLRA
in order to hinder employees who participate in union activities.
B. How This Article Addresses This Public Policy Problem
This Article provides a new framework for understanding the declining right to
strike. When the Taft-Hartley Act (also called the Labor Management Relations
Act, or
"LMRA") amended the NLRA in 1947, it restricted employee rights to bargain
collectively.
The law imposed several strike controls and deterrents.
These included a major policy reform to deal with national emergency
[*68] strikes. It defined these work stoppages as those that
"imperil the national health,"
and authorized the Attorney General to petition a U.S. district court to
enjoin these otherwise lawful walkouts.
In permitting injunctions to last for eighty days, Congress believed a
cooling-off period would promote strike settlements.
We expect the reader to greet our Article with skepticism. Considering that
the last
Taft-Hartley injunction was issued early in 1978, how could our inquiry be anything more than a
historical tour of a mothballed labor policy? Moreover, since the President has
ordered his Attorney General to seek
Taft-Hartley injunctions in only thirty-two labor disputes, how could such a rarely invoked procedure
contribute to the general decline of the right to strike? Briefly, we preview
some of our answers.
1. We begin by recalling that conventional explanations for the decline in the
right to strike hold President Reagan responsible because he ordered the
federal government to hire 12,000 permanent replacements for striking air
traffic controllers. This theory is generally called the PATCO thesis, because
President Reagan's response broke the union named the Professional Air Traffic
Controllers Organization. Yet, in examining the Bureau of Labor Statistics main
survey of large work stoppages, we note the downward trend in strike activity
that is so often attributed to Reagan actually began at the end of the period
in which
Taft-Hartley injunctions were ordered.
Moreover, strike activity dropped almost as sharply during President Carter's
petition for a coal-strike injunction (a decline of 26.4% from 1977 to 1978) as
it did in the year after the PATCO strike (a decline of 33.8% from 1981 to
1982).
Thus, we contend that Carter's aggressive
[*69] response to the coal miners' strike of 1977-1978 was no less important than
his successor's much more recognized example of strike-breaking.
2. We view the PATCO thesis as facile and unrealistic.
We seriously question whether employers, in response to strikes, think:
"If the President can do this, we can, too." Instead, we believe that employer responses to strikes are determined by labor
market conditions and bargaining relationships. Our research shows that
Taft-Hartley injunctions seriously harmed several strong unions--most notably, those in the steel,
longshoring, and maritime industries.
In nearly every case, they not only lost their strikes but suffered losses at
the bargaining table. In addition, they incurred a loss of good reputation.
Taft-Hartley orders are designed to motivate the vast power of the U.S.
presidency to rally public opinion against a threat to the nation's health and
welfare--in this case, a labor union on strike for better pay and working
conditions.
3. We note that no aspect of labor policy over the past two decades has been
more hotly debated than a union-sponsored bill to ban the hiring of permanent
striker replacements, coming close to enactment in 1992
and 1994,
but ultimately being defeated. It is simply a matter of time until political
conditions lead to a renewal of this important policy proposal.
This Article asks: Can proponents for reinvigorating the right to strike be so
sure that Mackay Radio is the only culprit, or even the main culprit, in
[*70] suppressing the exercise of this right? This Article shows that major
strikes--even those that do not qualify as national emergencies--have a
peculiarly strong effect on the public.
We present evidence that leads us to conclude that President Clinton demurred
in using Taft-Hartley powers only because public opinion strongly supported UPS
strikers.
In light of this most recent experience, we question whether government policy
should exploit public opinion to determine the outcome of a labor dispute,
especially one that has profound implications for other labor-management
negotiations. In sum, we conclude that
Taft-Hartley injunctions put political expedience ahead of the policy aims of the NLRA, and in doing so
contribute to the decline in the right to strike.
C. Organization of This Article
Part II of this Article examines the origin of the labor injunction. Part II.A
traces its roots to English antecedents.
While Parliament liberalized labor law to permit the right to strike, it
prohibited strikers from intimidating their replacements. American common law
transplanted these criminal prohibitions, without always granting an
accompanying right to strike. Part II.B discusses how state and federal courts
used equity jurisdiction to enjoin strikes and enlarged on English precedents
by including a much wider scope of prohibited conduct in their injunctions.
This development was disturbing because union leaders and strikers were often
subjected to criminal sanctions that rendered them unable to exercise their
constitutional rights. Part II.C shows that by the late 1800s, labor
injunctions were regarded as deeply flawed intrusions on civil liberties. For
the first time, Congress attempted to curb their use by limiting federal
jurisdiction in labor
[*71] disputes.
These efforts at limitation, embodied in the Clayton Antitrust Act and
discussed in Part II.C,
were thwarted by a series of Supreme Court decisions that gave preference to
substantive economic rights of employers. Part II.D explores the Court's
resistance to legislation to curb these pernicious orders.
By the early 1930s, the American public and Congress were so inflamed by labor
injunctions that a new federal law resulted.
Part II.E discusses how the Norris-LaGuardia Act removed federal courts from
labor disputes.
Overall, this section shows that federal courts generally heeded a
jurisdictional law that limited their intervention in labor disputes.
This section also updates the extent to which federal and state courts enjoin
strike-related conduct, apart from national emergency strikes.
This background is necessary to understand the exceptional nature of
Taft-Hartley's procedures for strike injunctions.
Part III.A reviews the legislative history of this policy.
This history shows what Republicans aimed to accomplish by reviving strike
injunctions, and what Democrats feared would result from this regressive
development. Section III.B examines the nation's experience with TaftHartley
strike injunctions.
We reach five conclusions: (1) Taft-Hartley courts have not exercised judicial
powers;
(2) Taft-Hartley courts have relied on unrealistic or distorted assumptions to
support injunctions;
(3) Taft-Hartley courts have interpreted national health to mean national
inconvenience;
(4) Taft-Hartley courts have given the impression of antilabor bias by
granting eighty percent of government petitions for injunctions,
and (5) Taft-Hartley court orders with eighty day limits have been impractical
in some disputes.
We also review research conducted by the U.S. Department of Labor and
economists. This research sharply contradicts fact findings by courts
concerning the effects of strikes.
In Tables 2A and 2B, infra, we compare diametrically opposed analyses by, on
the one hand, courts making hasty fact-findings in the full glare of public
opinion, and on the other, economic analyses of the same strikes conducted
years later with a wealth of statistical evidence. This is a critical
comparison, because we show here that the serious flaws in the processes of the
Taft-Hartley Act reflect badly on federal courts.
[*72]
Part IV asks whether
Taft-Hartley strike
injunctions adversely affect the right to strike. The section concludes that these
injunctions, although rare, have contributed to the decline in the exercise of
the right to strike. This is because
Taft-Hartley injunctions lowered public support for unions by portraying them as selfish economic
actors who were harmful to the nation.
Having been constantly cast in the role of the devil by employers, only to see
the federal government propagate this image, unions became more timid in
exercising their lawful right to strike. In addition,
Taft-Hartley injunctions altered the balance of bargaining power in critical strikes, usually to the
detriment of unions.
In short, these injunctions promoted the short-term interests of the American
public and their President, but they also helped employers achieve long-term
economic gains at the direct expense of unions and their members.
Part V closes with general conclusions.
We suggest that TaftHartley injunctions be eliminated or strictly limited to
strikes that pose a threat to national defense. Our main justification is that
an anomalous wave of national strikes in 1946 led to these injunctions. Since
unionization in the private sector is about one-third of its peak in the late
1940s and early 1950s, and strike frequency has been in a steep and continuous
decline since the late 1970s, there is no justification for this intrusion on
the right to strike.
II. The Origin of the Labor Injunction
Historical analysis is largely missing from early studies on TaftHartley
injunctions,
yet this history is essential to understanding why the injunction process is
flawed. These studies should have devoted more attention to the history of the
labor injunction.
This focus would have strengthened the arguments that the injunction process
is inherently flawed. In particular, more detailed analysis would have shown
that courts were habitually prone to rule against unions in injunction cases
and were rushed into making hasty decisions because of the urgent circumstances
surrounding strikes. To address this deficiency, we carefully explore the
history of labor injunctions that preceded the Taft-Hartley Act. What we
discover is that:
[*73]
. courts developed and applied injunctive powers without legislative oversight
or input, and therefore tended to abuse their authority;
. when Congress belatedly tried to curb federal jurisdiction in labor
disputes, courts construed these laws as not applying to labor disputes;
. injunction courts were guilty of several excesses, such as criminalizing
lawful conduct, depriving union supporters due process, and stereotyping these
activists as unsavory;
and
. the problems identified with labor injunctions worsened over time, prompting
experts to conclude that courts were inherently incapable of administering
injunctions in a just manner.
These matters were well known to the 80th Congress, which adopted the national
emergency provisions of the Taft-Hartley Act.
Looking at the history preceding and following thirty-two
Taft-Hartley injunctions, we conclude that the defects associated with these court orders could have
been--and still can be--avoided.
A. Early Uses of the Labor Injunction
When labor injunctions were first used with regularity in the nineteenth
century, there was no federal right to strike. A union was treated as a
"combination" and was allowed by common law only when workers passively promoted their
economic interests.
However, the common law prohibited economic conspiracy.
In the employment context, this meant prohibiting coercive conduct, such as
forcing employers to pay union wages.
Workers were permitted by law to withhold their labor until their employer met
certain conditions.
Taken from an 1825 English statute, this meant
[*74] that workers were permitted to
"meet together for the sole Purpose of consulting upon and determining the Rate
of Wages or Prices...or the Hours or the Time for which he or they shall
work...or...entering into any agreement, verbal or written, among themselves
for the Purpose of fixing the Rate of Wages."
However, the law criminalized conduct aimed at inducing other workers to quit
their work by
"Violence to the Person or Property, or by Threats or Intimidation, or by
molesting or in any way obstructing another...."
Typically this prohibition applied to strikers who induced replacements not to
take their work.
Thus, the parliamentary act of 1825 imported elements of criminal conspiracy
to labor disputes. The law balanced an employer's right to solicit striker
replacements with a striker's right to persuade replacements not to work.
Parliament modified this law in 1859.
Strikers were still permitted to persuade others to cease or abstain from work
in order to obtain the rate of wages or the altered hours of labour so fixed,
if they communicated peaceably and in a reasonable manner, and without threat
of intimidation.
Parliament's regulation of the right to strike influenced American labor law;
however, this body of law was transplanted by courts rather than Congress or
state legislatures.
This meant that the usual check-andbalance of the legislature defining the
scope of judicial power was absent. In this regulatory vacuum, courts fully
extended their jurisdiction.
Injunctions were the ultimate expression of this power.
[*75]
By a steady accretion of common law decisions, state and federal courts
transplanted the English prohibition against striker molestation or obstruction
of replacement workers.
These decisions also created a right to strike, with certain limitations.
Thus, workers were permitted to inflict economic injury on their employers if
their intent was not malicious but to benefit themselves.
A 1903 Harvard Law Review article summarized the law of conspiracy as
applied to strikes:
It seems that combination for a law object is not of itself an unlawful means.
It may, however, in some cases turn mere persuasion into practical compulsion,
intimation, or molestation. Although the laborer may be permitted to persuade
others not to deal with his employers, he cannot influence them by physical
intimidation, molestation, or coercion, or by threats of these.
When workers crossed this threshold, they often encountered the full force of
judicial power.
[*76]
B. Co-Development of Equity Jurisprudence in Labor Disputes
A rising tide of strikes in the 1880s and 1890s provided courts more impetus
to adapt common law principles to labor disputes.
Injunctions played a key role in regulating labor relations. By the turn of
the century, a pattern of judicial abuse was apparent in many injunctions.
American courts relied on an 1868 English precedent, Springhead Spinning Co.
v. Riley,
to enjoin strike-related conduct such as picketing. The company filed a
complaint to obtain an injunction to prevent the defendants from printing and
publishing certain placards and advertisements for the purpose of intimidating
workmen who might be inclined to enter the service of the plaintiffs.
The court based its novel use of equity on precedents involving injunctions to
abate nuisances that threatened irreparable harm to private property.
Blurring jurisdiction to prosecute crimes and jurisdiction to protect
[*77] property, Vice Chancellor Malins concluded,
"This Court will interfere to prevent any acts amounting to crime, if they do
not stop at crime, but also go to the destruction or deterioration of the value
of property."
This ruling set a powerful precedent for merging equity and criminal
jurisdiction in labor disputes.
This usually occurred when the conduct of strikers in a labor dispute became
heated or agitated to the point of boiling over, without actually crossing that
line.
The problem in mixing jurisdiction, however, was that
[*78] civil courts sitting in equity adjudicated disputes having criminal elements.
Consequently, strikers were treated as criminal defendants without the benefit
of the rights they would have in a criminal prosecution.
As strikes proliferated in the U.S. during the 1880s, courts increasingly
cited protection of private property to justify strike injunctions.
Sherry v. Perkins
involved the first American labor injunction.
The court used equity to enjoin the union's conduct.
Many other state courts followed this example.
The widely cited Vegelahn v. Guntner
was among these early injunction cases. There, an employer
[*79] sued to enjoin strikers from picketing at its door and directing social
pressure and threats at replacements.
The Massachusetts Supreme Court sustained an injunction prohibiting this
conduct, finding that
"patrolling or picketing, under the circumstances stated in the report, has
elements of intimidation like those which were found to exist in Sherry v.
Perkins."
Chief Justice Field and Justice Holmes strongly dissented, stating their
concern about judicial excess in labor injunctions. Field doubted that any
reasonable grounds existed to enjoin the strikers' conduct.
Holmes objected to the breadth of the injunction, finding that it prohibited
lawful striker conduct such as
"social intercourse and even organized peaceful persuasion."
He rejected the notion that
"two men, walking up and down a sidewalk, and speaking to those who enter a
certain shop, do necessarily and always thereby convey a threat of force."
In a contemporaneous development, federal courts enjoined lawful strikes.
These actions disgraced federal courts. Stereotyping was evident in some
injunction decisions. The judge in United States v. Elliot
reviled union members when he stated,
"Such law-breakers who engage in such conspiracies are a lot of professional
agitators....Their tongues are their principal stock in trade; and inasmuch as
imprisonment for debt is abolished, and cruel and unusual punishments are
prohibited, an execution would be quite unavailing."
[*80]
Other injunctions were so vague as to make their enforcement arbitrary. The
order in United States v. Agler
applied to Eugene Debs, at that time a national labor figure, and any other
unnamed person who aids him in the course of a labor dispute.
This exposed labor leaders who affiliated with Debs to guilt by association.
Judge Baker reasoned:
I think the injunction as against unknown defendants is valid and binding when
the injunction order is served upon them, although they are not at the time
parties to the suit. Indeed, I think an injunction that is issued against one
man, enjoining or restraining him, and all that give aid or comfort to him, or
all that aid or abet him, is valid against everybody that aids or gives
countenance to the man to whom it is addressed.
The judge noted, however, that the injunction in this matter was too vague in
defining proscribed acts of giving aid or comfort to labor leaders who were
conducting a strike.
Employers recognized the tendency by federal courts to issue overbroad
injunctions; and as long as they conducted business in more than one state,
they contrived ways to meet citizenship diversity so as to invoke federal
jurisdiction.
[*81]
Eventually, the Supreme Court upheld the legality of labor injunctions.
Hitchman Coal
& Coke Co. v. Mitchell
involved the United Mine Workers' effort to unionize West Virginia mines.
These employers required workers to sign a yellow dog contract--that is, a
promise not to join a union, enforced by discharge.
The union secretly signed up workers as members and then planned a massive
strike to induce employers to bargain.
When a Hitchman manager learned of this, he obtained an injunction to prohibit
the union from interfering with the personal service contracts of his workers.
The order also enjoined striking.
In upholding that part of the injunction that prevented the union from
peacefully persuading miners to become members, the Supreme Court equated the
employer's property rights to its interest in remaining nonunion.
Nothing in this reasoning was based on actual or imminent damage to the
employer's property or customer contracts:
Unionizing the miners is but a step in the process of unionizing the mine,
followed by the latter almost as a matter of course. Plaintiff is as much
entitled to prevent the first step as the second, so far as its own employes
are concerned, and to be protected against irreparable injury resulting from
either. Besides, the evidence shows...that defendants contemplated no halfway
measures, but were bent on organizing the mine, the 'consent' of plaintiff to
be procured through such a control of its employes as would render any further
independent operation of the mine out of the question.
[*82]
This reasoning expanded the injunction beyond its English common law origin.
Neither violence and destruction of property, nor lesser elements such as
obstruction of work or molestation of striker replacements, was necessary. The
simple and harmless act of joining a union was found to injure an employer. The
Court appeared to overrule American common law decisions that found it lawful
for employees to form or join a labor organization.
C. Congress Tries to Curb Labor Injunctions: The Clayton Act
The growing use of labor injunctions in the 1890s was widely condemned at that
time. These critiques provide insights concerning the abuses of labor
injunctions. Courts were reproached for disguising criminal as civil
proceedings;
depriving union leaders of constitutional rights;
violating separation of powers by usurping legislative and executive functions;
[*83] personalizing judgments and orders;
favoring capital over labor;
and resurrecting the tyrannical Star Chamber in American form.
[*84]
The growing perception that courts were regulating strikes by injunction
prompted Congress to legislate limitations on federal judicial power. While an
1896 Senate bill requiring federal courts to incorporate criminal procedures in
contempt hearings died in the House of Representatives,
elements of this bill would reappear in the Clayton Act in 1914.
Meanwhile, Congress took another tack. Instead of trying to limit judicial
power in labor controversies, it began to grant certain workers rights to
organize and act in concert in the Erdman Act.
Reflecting the anti-union bias of courts in this period, the Supreme Court
blocked this approach when it narrowly construed Congress' power to provide
substantive labor rights through its commerce power.
During the same time, the Supreme Court held that the Sherman Act applied to
"labor combinations"--meaning unions--in the seminal Danbury Hatters case.
This ruling was pivotal because it brought so much strike activity within the
ambit of antitrust law.
[*85]
By subjecting unions to these substantive economic regulations, the Supreme
Court preserved the labor injunction. This was remarkable because Congress had
repeatedly tried and failed to amend the Sherman Act to exempt unions from
antitrust law.
It finally achieved this result in $ S 6 of the Clayton Act.
Section 20 was also important, because it provided
"that no restraining order or injunction shall be granted by any court of the
United States...in any case between an employer and employees...or between
persons employed and persons seeking employment, involving...a dispute
concerning terms or conditions of employment."
In short, Congress intended to insulate workers from federal injunctions when
it limited federal jurisdiction in a labor dispute.
Congress also recognized the right of employers to be protected from certain
economic injuries. Thus, $ S 20 provided for injunctions in labor disputes, but
only if
"necessary to prevent irreparable injury to property, or to a property
right...for which no there is remedy at law."
At the same time, Congress also immunized a broad range of peaceful worker
activities from injunctions.
[*86]
Congress also protected federal government interests. It exempted federal
courts from the jury trial requirement for
"contempts committed in disobedience of any lawful writ, process, order, rule,
decree, or command entered in any suit or action brought or prosecuted in the
name of, or on behalf, of the United States."
This was an important precursor to TaftHartley injunctions, because it
established legislative precedents for the federal government to intervene in
labor disputes, and judges to act without juries.
But Congress expressed concern that courts would abridge the rights of union
activists in equity proceedings.
As a result, Congress provided for a jury trial for a striker charged with
contempt:
[*87]
The court or judge...may issue a rule requiring the said person so charged to
show cause...why he should not be punished therefor, which rule, together with
a copy of the affidavit or information, shall be served upon the person
charged, with sufficient promptness to enable him to prepare for and make
return to the order at the time fixed therein....
In all cases within the purview of this Act such trial may be by the court,
or, upon demand of the accused, by a jury...and such trial shall conform, as
near as may be, to the practice in criminal cases prosecuted by indictment or
upon information.
American Steel Foundries v. Tri-City Central Trades Council,
a case involving the Clayton Act, laid a good foundation for limiting a
court's use of equity during strikes. An employer operating a large foundry
instituted a layoff and reduced wages for remaining employees, at least two of
whom were union members.
To protect wage standards, a local federation of unions called a strike for
the foundry and posted roving groups of men in neighborhoods around the plant
to deter employees from working.
After some picketers assaulted workers, a district court enjoined a broad
range of union activity.
The Supreme Court overruled that part of the injunction prohibiting area
unions from peacefully persuading foundry employees to go out on strike.
In broad language, the Court noted that the newly enacted Clayton Act
protected unions and strikes.
In especially significant language the Court stated that to
[*88] make their union effective,
"Employees must make their combination extend beyond one shop. It is helpful to
have as many as may be in the same trade in the same community united, because
in the competition between employers they are bound to be affected by the
standards of wages of their trade in the neighborhood."
Thus, the Court validated a union's interest in protecting wages and working
conditions in its relevant labor market, and not merely a single work site.
This view was consistent with $ S 6 of the Clayton Act, which specifically
provided labor an antitrust exemption.
This reasoning might have prevented courts from enjoining primary and
secondary strikes and boycotts on antitrust grounds. But this did not happen,
in part, because American Steel Foundries viewed only a union's neighborhood or
community as the extent of its relevant labor market.
By implication, the Supreme Court would not protect from antitrust law any
strike activity that obstructed trade beyond these areas.
D. Congress Fails to Curb Labor Injunctions: Demise of the Clayton Act
The federal judiciary was reluctant to cede power to Congress in labor
disputes. The Supreme Court in Duplex Printing Press Co. v. Deering
and Bedford Co. v. Stone Cutters Ass'n
negated the Clayton Act's delicate balance of union and employer rights and
judicial power. Ironically, after the Clayton Act became law, more union
members were defendants in contempt actions.
[*89]
The union in Duplex Printing represented workers at three of the nation's four
manufacturers of large printing presses.
Duplex refused, however, to recognize the union.
It paid wages below union scale and had longer working hours than unionized
firms.
To compete against Duplex, two of the other unionized firms informed the
Machinists union that they would have to terminate their labor agreements.
As a result, the union began a campaign to pressure Duplex into negotiating an
agreement.
The union had a few members who worked at Duplex's Michigan plant, but not
enough to affect production when these workers went out on strike.
The Machinists knew, however, that Duplex was vulnerable in other respects.
This company shipped its large and heavy presses great distances and depended
on contractors and their employees to install the presses on-site.
Duplex also depended on consumers to buy the newspapers printed on its
presses. Consequently, the union organized boycotts of these papers and strikes
by workers who assembled or hauled the presses.
A court enjoined this secondary activity, and the Supreme Court upheld the
injunction.
[*90]
Justice Brandeis' dissent showed how the Duplex Printing majority thoroughly
breached the Clayton Act.
The enjoined conduct was neither violent nor threatening, nor did it induce
workers to break existing contracts.
The union's
"justification was that of self-interest. They have supported the strike at the
employer's factory by a strike elsewhere against its product."
This dissent drew special attention to the nonsensical extremes of the
majority's interpretation of $ S 20, noting:
Congress did not restrict the provision to employers and workingmen in their
employ.... If the words are to receive a strict technical construction, the
statute will have no application to disputes between employers of labor and
workingmen, since the very acts to which it applies sever the continuity of the
legal relationship.
In Bedford Cut Stone, a national union had a labor agreement with Bedford
Company, a large Indiana producer of limestone used throughout the nation in
building construction.
The company terminated the agreement in 1921, thus closing its shops to union
members.
The national union retaliated by declaring a strike against any builder who
used Bedford stone.
This declaration led to secondary strikes.
In Denver, union workers who enjoyed a good relationship with their employer
went out on strike because the builder used Bedford stone.
Lower courts dismissed Bedford's petitions to enjoin this conduct, but the
Supreme Court reversed, finding that the Clayton Act authorized the injunctive
relief sought by Bedford.
Even though Bedford did not prove the union's secondary strikes caused it any
injury, the majority reasoned that the union's
"intent to restrain interstate commerce...is enough to justify equitable
interposition by injunction if there be a dangerous probability that such
injury will happen; and this clearly appears."
Although the union's activities were entirely
[*91] peaceful and free of threats, intimidation, and coercion, the Court thought it
proper to enjoin the union from
"even persuasion with the object...of causing any person to decline employment."
This reasoning typified the biased economic theories that Congress wanted to
eradicate in the Clayton Act.
Other federal courts resisted the limitations imposed by the Clayton Act.
One enjoined peaceful strike conduct by narrowly construing
"employee" and
"employer" in $ S 20.
Another found an imaginative way to circumvent the requirement of jury trial
for contempt.
Still another court issued an injunction so broad that it applied to a
nonunion barber who hung a sign in his shop to discourage patronage by striker
replacements.
Other federal courts ruled that
[*92] peaceful strikes were enjoinable as restraints against trade,
and collection of union dues was enjoinable because that money was used to
organize nonunion mines.
In sum, the Clayton Act moderated equity in some labor dispute cases.
However, by 1932 members of Congress concluded that this law
"was denatured, emasculated, and tortured into an instrument for further
oppression of those whom we sought to relieve."
E. Congress Renews Effort to Curb Labor Injunctions: The Norris-LaGuardia Act
Then and Now
A noted scholar, Edwin E. Witte, offered this bleak assessment following
Duplex Printing:
"The Clayton Act made the position of organized labor under the antitrust laws
distinctly worse than before because of a provision allowing private parties to
obtain injunctions under the antitrust laws against persons guilty of conduct
in violation of these laws."
Congress was therefore again compelled to limit injunctive relief available to
employers during a labor dispute.
[*93]
The Norris-LaGuardia Act of 1932 resulted from judicial usurpation of the
Clayton Act.
Senator Norris justified his bill by calling attention to 389 labor
injunctions from 1922-1932, many of which enforced yellow dog contracts.
Representative LaGuardia succinctly stated Congress' intent in passing this
law, describing the
"cruelty of the injunction" as a reason to support passage of the NLA.
Although similar to the Clayton Act, the Norris-LaGuardia Act differed in key
respects. It defined labor disputes expansively, thereby immunizing a wide
range of worker conduct from injunctions.
Thus, workers were not only able to strike against their employers, but to
engage in sympathy strikes against neutral
[*94] employers.
These secondary actions were designed to increase economic pressure on the
employer, who was the main subject of a labor dispute. The act also restrained
judicial power more forcefully by broadly divesting federal jurisdiction in
labor disputes.
The Norris-LaGuardia Act achieved Congress's main objective of removing
federal courts from most labor disputes.
For example, the Supreme
[*95] Court held that the Act prohibited a court from enjoining a strike to protest
an employer's dealings with a politically undesirable customer.
In another case, the Court removed federal jurisdiction to enjoin secondary
picketing under the Railway Labor Act.
In another ruling, it narrowed application of the Sherman Act to unions.
[*96]
Since 1932, the Supreme Court has found instances where NorrisLaGuardia does
not divest jurisdiction to enjoin strikes, but these exceptions have been
narrow. The Court in Boys Market Inc. v. Retail Clerks Union, Local 770
ruled that courts may enjoin strikes that violate a no-strike clause in a
collective bargaining agreement.
Boys Market differed from Duplex Printing and Bedford Stone because it
involved the much narrower matter of a work-stoppage in apparent violation of a
union's contractual promise not to strike.
The employer sought an injunction to compel the union to honor its promise to
submit contract disputes to arbitration.
Recalling that when the LaborManagement Relations Act was enacted in 1947
Congress expressed a strong policy in favor of encouraging unions and employers
to submit their disputes voluntarily to arbitration, the Boys Market Court
created a narrow exception for enjoining strikes during the term of a labor
agreement in order to enforce a promise to arbitrate.
More recently, the Supreme Court limited Boys Market in Buffalo Forge Co. v.
United Steelworkers of America, AFL-CIO.
As a result, federal courts cannot enjoin a union from engaging in a sympathy
strike, even though it agreed by contract not to strike.
The Court also held in United States v. United Mine Workers
that Norris-LaGuardia does not apply to strikes involving federal employees,
but this case presented unique facts.
Although Norris-LaGuardia eliminates most federal labor injunctions, it does
not apply to state courts. Although these courts routinely enjoin
strike-related conduct, their impact is often limited by state laws modeled
after the Norris-LaGuardia Act.
Such orders generally do not present the problem of judicial
[*97] interference in substantive aspects of labor negotiations.
They enjoin conduct that endangers public safety and welfare.
Moreover, Norris-LaGuardia did not completely end injunctions to stop protests
about conditions of employment. In cases reminiscent of Bedford Stone
[*98] and Duplex Printing Press, the Supreme Court used antitrust law to uphold
state injunctions of worker protests.
[*99]
III. Taft-Hartley Regulation of National Emergency Strikes
Taft-Hartley is as short on definitions as it is long on prescriptions....
--John A. Ackerman
A. Legislative History of the National Emergency Strike Provisions of the
Taft-Hartley Act
With the nation sliding deeper into the Great Depression, the tide turned
against labor injunctions. The Norris-LaGuardia Act provided a direct
limitation on judicial intervention in labor disputes. Without providing
substantive collective bargaining rights, however, this law did nothing to curb
state regulation of labor disputes. Enactment of the NLRA three years later
filled this regulatory void.
To appreciate what the Taft-Hartley amendments to the NLRA took away in 1947,
it is important to understand the two main premises that the Wagner Act
embodied concerning labor-management negotiations. First, when an employer and
union negotiate terms and conditions of employment, government should not
interfere.
Second, to make this a reality, there should be equality of bargaining power.
Without reserving economic weapons to the parties, the law presumed that
unions and employers would have no economic incentive to bargain in good faith.
[*100]
By enacting the national emergency provisions in the Taft-Hartley Act,
Congress curtailed the policy of free collective bargaining. The law provides
that if a labor dispute in a substantial segment of an industry imperils the
national health or safety, the President may appoint a board of inquiry to
investigate.
The board must
"ascertain the facts with respect to the causes and circumstances of the dispute."
Upon petition of the Attorney General,
federal district courts may enjoin a work stoppage.
During this time, the parties should try to reach a settlement with the aid of
the Federal Mediation and Conciliation Service.
If the
[*101] dispute continues into the sixtieth day of an injunction, the board of inquiry
must report the current position of the parties, their settlement efforts, and
the employer's last offer.
The NLRB must submit this offer to a secret ballot of the employees.
After the Board certifies this vote to the Attorney General, she must petition
the district court to discharge the injunction.
Congress believed that public opinion should be mobilized in this period to
pressure the parties to settle.
If no settlement occurs, the President must report to Congress and may
recommend a legislative resolution.
This law provoked strong criticism by House Democrats. One criticism centered
on the appropriateness of involving the President in a labor dispute. They
believed that the proposed standard for executive intervention was too vague.
Accordingly, their Minority Report asked:
At what stage in the negotiations of a labor dispute does it
"imminently threaten" to curtail commerce? Is it while negotiations are proceeding, perhaps
satisfactorily, but with some issues yet to be settled? Is it immediately or
upon the break-down of negotiations, before a strike has been called? Or is it
after negotiations have broken down completely, and a strike has been called?
They also questioned what
"substantial curtailment" of industry means.
This vague standard virtually assured that the President's intervention would
"add to the heat of controversies"
and
"tend to aggravate rather than to resolve labor disputes in essential services."
These concerns were partially addressed by a subsequent version of the bill
that limited intervention to disputes that imperiled the nation's health and
[*102] safety. This standard was more narrow and precise than a competing version
that used the term
"public welfare."
Federal courts were another subject of controversy. Democrats believed that
judges would be called upon to decide non-justiciable disputes. They worried
that injunctions would violate the constitutional rule that
"generally the legislature may not confer exclusively non-judicial powers on
courts or judges."
In their view, the
"issues in many labor disputes do not raise justiciable questions. They involve
wages, hours, working conditions; not legal rights and duties." They were especially critical of the role that courts would play in
discharging or continuing injunctions.
In a related concern, House Democrats worried that the proposed
dispute-resolution machinery not only involved too many people, but also too
few with expertise.
They believe that judges were poorly qualified to intervene in national
emergency strikes.
[*103]
These opponents also believed that injunctions would more likely frustrate
than promote dispute settlement.
Democrats equated TaftHartley's dispute resolution machinery to compulsory
arbitration and condemned it because experience had shown that unions and
employers avoided hard compromises when presented with this alternative.
In addition, a provision for a secret vote by employees on a proposed
settlement
"implied that employees are always the adamant party in their refusal to accept
the offer of the employer."
Senate Democrats had different concerns. Their report drew upon the negative
experience of labor injunctions prior to enactment of the Norris-LaGuardia Act.
Although the Senate version defined national emergency more narrowly, it
lacked a clear definition of
"the types of cases that might affect the national health or safety."
It failed to provide the Attorney General clear guidance
"in determining at what stage of the negotiations a strike may be 'threatened.'"
In addition, the standard of imperilment of national health and safety would
"inevitably lead to heated debate as to when action should or should not be
taken and would tend to aggravate rather than settle labor disputes in key
industries."
Debate on the floor of the House added one insightful criticism to these
minority reports. Representative Fogarty (D.-R.I.) accounted for the economic
context that would likely frame national emergency strikes. Reflecting the
recent war experience--and emerging Cold War tensions--he noted that consumer
prices were rising sharply. If working people were denied bargaining power as a
result of injunctions, economic injustice would result.
[*104]
B. The Nation's Experience with Taft-Hartley Act Strike Injunctions
Public policy reforms are difficult to assess without the passage of time.
Short-term analyses rely on anecdotal or qualitative evidence, or brief trend
data. Of course, these results can be misleading. Still, it is interesting to
consider contemporaneous analyses of the
Taft-Hartley injunctions. Having the benefit of lengthy hindsight, we find much empirical evidence to
validate the concerns of critics.
Edwin Witte offered a prescient critique of injunctions long before enactment
of Taft-Hartley.
He posited that the problem with courts is not that they are biased; instead,
the problem is that
"labor disputes...put the courts in an anomalous position."
Courts are at their best when they deliberate. Labor disputes confound this
process because they
"are mass phenomena in which it is difficult to get at the true facts."
Since
"feelings run high, and witnesses are often biased," courts cannot reach sound conclusions of fact.
One of Witte's criticisms clearly applies to Taft-Hartley orders. Singling out
temporary restraining orders as
"one of the outstanding abuses of injunctions," he explained:
These orders are drafted by the complainants' attorneys and signed by the
judge without taking any testimony. Often they are found after a hearing to
have been unwarranted or too broad in scope, but a modification, coming as it
usually does months after the order was issued, is of little practical benefit
to the defendants.
Witte supported the Norris-LaGuardia Act not because it abolished injunctions
but because it
"aimed to give defendants a fair opportunity to present their side of the case
and required courts to weigh carefully the testimony."
In addition, the results of labor injunctions often disappointed everyone:
A strong case can be made for barring injunctions in labor disputes
altogether. They have proved of doubtful value in preserving law and order. As
frequently as not, they have been disappointing to employers. They have been a
source of extreme bitterness and discontent, and more than any other factor,
have been responsible for the widespread conviction among workingmen that the
courts are the allies of employers.
[*105]
Soon after courts ordered
Taft-Hartley injunctions, Witte's concern were realized. The law's hasty process raised questions about
fairness.
The law also inhibited bargaining and prolonged labor disputes.
Experience contradicted the notion that union leaders obstructed settlement by
withholding a vote on an employer's final offer.
Table 1 reproduces and supplements a summary of all national emergency strikes
from a 1978 Department of Labor report.
The Table adds the executive orders and published court decisions for each
national emergency strike. While the Department of Labor report provides
information about strike issues,
[*106] duration of disputes, types of industries, union voting on employer settlement
offers, and the like, an analysis of Taft-Hartley court decisions follows.
[*107]
Table 1:
National Emergency Strikes Under the Taft-Hartley Act Table 1
[SEE TABLE IN ORIGINAL]
1. Taft-Hartley Courts Have Not Exercised Judicial Powers
Unions made the argument that Taft-Hartley courts have not exercised judicial
powers early in the emergency strike experience, but to no avail. The 1952
Steelworkers (American Locomotive) decision involved a local union that
[*108] represented workers who manufactured a key part of nuclear bombs.
After extensive settlement efforts failed, they went on strike on August 29.
President Truman invoked the emergency provisions of Taft-Hartley by forming a
board of inquiry on December 3.
By December 12, the board concluded that the strike involved an entire
industry and imperiled national safety.
After granting the government's petition for a temporary injunction on the day
it was heard, the district court issued a preliminary injunction on December 18.
The union argued that the injunction provision of Taft-Hartley violated the
Constitution by granting federal courts more than judicial power.
More specifically, when the union contended that the district court was
petitioned to make an administrative rather than judicial decision, the union
appeared to argue that the court was being called upon to make an economic
judgment about the impact of a strike.
In rejecting this argument, the Second Circuit reasoned:
The prohibition of strikes...implies that they are...an invasion of the rights
of the public. Whether it is the duty of the court to grant an injunction
depends upon the findings of fact to be made by the court as the statute
requires. Whether there is an existing or threatened strike...which...under the
statute is an invasion of the rights of the public presents the usual kind of
case or controversy which is justiciable by a court.
Rather than engage in judicial fact-finding, the district court did
"no more than make itself a superior and revising agency" to the board of inquiry.
The district court, in its haste to act, granted an ex parte restraining order.
When the union appeared at the next hearing and moved to dismiss the
complaint, it contended that the district court lacked subject matter
jurisdiction.
In addition,
[*109] the union argued that Taft-Hartley vested non-judicial functions in the court.
The judge resolved these important issues in bench rulings, and in writing his
decision two weeks later brushed aside the union's serious arguments.
This injunction proceeding was similar to that in Federal Radio Comm'n v.
General Electric,
an earlier case that raised the issue of justiciability. The Supreme Court
ruled that federal courts have no jurisdiction when the
"function assigned to the courts...was not judicial in the sense of the
Constitution, but was legislative and advisory, because it was that of
instructing and aiding the commission in the exertion of power which was
essentially legislative."
The fundamental issue here was the appropriate response to a shortage of
military supplies during a war--more a legislative than judicial controversy.
By ignoring this balance, the court acquiesced to an emergency powers law that
bent judicial power out of constitutional shape.
The Third Circuit offered a more detailed justification for the injunction in
the steel strike of 1959.
It conceded that Taft-Hartley orders were similar to
[*110] labor injunctions that the Norris-LaGuardia Act sought to end.
The court shrugged off this problem by blaming Congress for reviving this
order.
In contrast to the Second Circuit, this court spoke openly about
Taft-Hartley's potential problem in re-creating
"status injunctions."
The court dismissed this concern by reasoning that its jurisdiction was akin
to judicial review of NLRB orders.
This reasoning was unpersuasive because by then federal courts exercised
independent judgment in denying NLRB requests for injunctions.
In contrast, they routinely deferred to Attorney General requests for
injunctions.
2. Taft-Hartley Courts Have Relied on Unrealistic or Distorted Assumptions to
Support Injunctions
The emergency nature of injunction hearings led courts to act upon assumptions
rather than findings of fact. Evidence in the United States v. International
Longshoremen's Association
decision was comprised of a series of affidavits. The union had no opportunity
to crossexamine the affiants or otherwise challenge, question, or test the
information upon which the district court heavily relied. The court's citations
to these affidavits reveal that these documents were short, poorly
substantiated, and conclusory.
In stating its findings of fact, the court annualized all the estimated
damages for the strike without explaining why it assumed that the strike would
last an entire year.
[*111]
The International Longshoremen's Association's ("ILA") threshold argument focused on
"the speed with which the Board was convened, held a hearing and made its report."
This argument was valid, because the board took only one day to investigate
and report dramatic findings.
The court dismissed this argument even though the board issued its report
hours after it received presentations from the union and employers that
"spelled out in considerable detail the differences between the parties."
These defects in evidence had a predicable effect on the court's conclusions
of law. It concluded that the
"President's finding is, of course, entitled to great weight but, in addition,
the disastrous effect which a continued strike would have on the national
health and safety and in all aspects of its economic and military activities
was demonstrated by the affidavits which were submitted on this question."
The court's statement erroneously suggested that Taft-Hartley procedures
required district courts to use a deferential standard in reviewing the
Attorney General's injunction petition. Moreover, while it is easy to see how
this strike could inconvenience the nation and even harm its economy, the scant
record did not show or explain how the nation's health or safety were
imperiled.
Other
Taft-Hartley injunctions suffered from severe evidentiary problems. In his landmark dissent in the 1959
Steelworkers case, Justice Douglas exposed the district court's ignorance about
the basic facts in this decisive labor dispute:
We do know that only a fraction of the production of the struck industry goes
to defense needs. We do not know, however, what fraction of the industry is
necessary to produce that portion. Without that knowledge the District Court is
incapable of fashioning a decree that will safeguard the national 'safety,' and
still protect the rights of labor.
He counseled future courts that
"we are dealing here with equity practice which has several hundred years of
history behind it. We cannot lightly assume that Congress intended to make the
federal judiciary a rubber stamp for the President."
United States v. Avco Corp.
added to this pattern of evidence abuse to support
Taft-Hartley injunctions. On April 15, 1967, when a labor agreement was set to expire between a military
contractor and two local unions, President Lyndon
[*112] Johnson ordered a board of inquiry into existence.
The Executive Order required the board to report back within a day.
Complying with the order, the board sent back its report, and Johnson
immediately directed his Attorney General to petition for an injunction.
The court issued a temporary restraining order from the bench just two days
later, and a preliminary injunction on April 25th.
The emergency board and court failed to make any meaningful inquiry.
Even allowing for the Supreme Court's view that Congress intended that the
emergency board, rather than the district court, would engage in a more
searching form of fact-finding, the court needed to find facts in order to
issue an injunction.
In this case, however, the board could not possibly have conducted a full and
objective analysis in less than forty-eight hours. The judge compounded this
error by uncritically granting the government's petition.
He might have asked whether the contractor built any inventory of its
essential products in anticipation of a strike. Did the U.S. military have a
sufficient supply of these products to continue operations in Viet Nam?
Assuming the worst--that these supplies were vital to the war and already
scarce--how would interruption of the war in Viet Nam imperil U.S. safety?
Given the military delays occasioned by the monsoon season, how would this
delay be different? If the rationale for enjoining the strike
[*113] was that no substitute supplier could be found for months or even years,
how did this situation differ from the typical exclusive-supplier arrangement
for the military?
The court in the 1964 case, United States v. International Longshoremen's
Association,
relied almost exclusively on the emergency board's fact-findings. Its decision
appeared to deprive the unions of due process. The unions objected to the
government's speed in proceeding before the emergency board, claiming:
Denial of an opportunity to confront their adversary in the presentation of
evidence; inadequate time to prepare presentation of the facts;...improper[]
delegation of its functions to one of its three members, and so depriving the
unions of a 'hearing' before the full Board; and that a 'hearing' was denied
them in violation of their rights under $ S $ S 206-207 of the Act.
In rejecting these arguments, the court stated that neither the emergency
board nor federal courts could provide the unions with these rudiments of an
adversarial hearing.
3. Taft-Hartley Courts Have Interpreted
"National Health" to Mean National Inconvenience in Justifying Injunctions
In advocating injunctions of national emergency strikes, Senator Taft made
clear that a strike must not only affect a substantial part of
"an entire industry," but also it must
"imperil the national health or safety, a condition which, it is anticipated,
will not often occur."
In several strikes, however, the Supreme Court expanded the meaning of
"national health or safety" to mean national inconvenience.
[*114]
This debate on definitions was at the heart of the steelworkers' strike in
United Steelworkers of America v. United States.
Their work stoppage began on July 15, 1959, and continued until an injunction
was issued on October 20.
On October 9, the President ordered formation of a board of inquiry, and ten
days later the Board issued a report upon which the Attorney General relied in
seeking a strike injunction.
The issue before the Court was whether the strike imperiled the nation's
health or safety.
The government contended that the term
"comprehends the country's general well-being, its economic health."
The Steelworkers countered that the term meant
"the physical health of the citizenry."
Relying on the board of inquiry's findings that the strike affected national
defense, the district court issued its injunction.
In a per curium ruling, the Supreme Court accepted the Government's
interpretation with little explanation.
In his lengthy dissent, Justice Douglas accused the district court of
rubber-stamping the Attorney General's petition.
"An appeal to the equity jurisdiction of the Federal District Court is an appeal
to its sound discretion,"
he noted.
Equity decrees are not like the packaged goods this machine age produces. They
are uniform only in that they seek to do equity in a given case. We should
hesitate long before we conclude that Congress intended an injunction to issue
against 500,000
[*115] workers when the inactivity of only 5000 or 10,000 of the total imperils the
national safety.
In addition, Douglas saw classic symptoms of the old labor injunction lurking
in the district court's order. By exceeding its lawful scope, this injunction
unfairly curbed the economic rights of union workers.
Labor injunctions were long used as cudgels--so broad in scope, so
indiscriminate in application as once to be dubbed a scarecrow device for
curbing the economic pressure of the strike [citation omitted]....The same
indiscriminate leveling of those within and those without the law is
present....It is not confined to the precise evil at which the present Act is
aimed. Like the old labor injunctions that brought discredit to the federal
judiciary this is a blanket injunction broad and all-inclusive, bringing within
its scope men whose work has nothing whatsoever to do with the defense needs of
the Nation.
In relating this injunction to the judiciary's blemished history, Douglas
found that this injunction was also wrong because it interfered with free
collective bargaining to the disadvantage of labor.
Aside from the resemblance of this district court and its injunction to an
unsavory past, Douglas also believed that the restraining order misconceived
congressional intent on national safety and health.
"This seems to me to be an assumption that is unwarranted. I think that
Congress, when it used the words 'national health,' was safeguarding the
heating of homes, the delivery of milk, the protection of hospitals, and the
like."
He seemed to prevail in this argument by showing that the Senate preferred a
narrower definition of national emergency.
[*116]
This dispute over national health and safety reappeared in subsequent strikes.
Following the Steelworkers' broad interpretation of this term, courts had ample
basis to enjoin strikes.
4. By Granting Eighty Percent of Government Petitions for Injunctions,
Taft-Hartley Courts Have Given the Impression of Anti-Labor Bias
Very few courts rejected board of inquiry findings of a national emergency
strike. In United States v. International Longshoremen's Association, Local 418
the federal government petitioned to enjoin the strike of a single local union
that delayed delivery of thirty-five million bushels of corn and soy beans.
The court wrote a scathing critique of the federal government's abuse of its
emergency powers.
The exceptionally small scale of this strike, confined to Chicago-area grain
ports, contributed to the court's view.
[*117]
But there was more to this critical approach. The court implied that the
Supreme Court's Steelworkers decision was premised on a false theory of
national emergency as being a fiscal rather than physical threat.
The court also provided an unusually balanced view of the government's
interest in enjoining emergency strikes with the NLRA's main emphasis on
granting employees a right to use the strike weapon as an aid in bargaining:
Some harm or threat of injury is regrettably a natural indispensable element
of any strike; however, it is the very essence of the only weapon labor can aim
at management. But such injury remains a question of degree. The closing of a
small factory somewhere in the United States, due to the striking of ten
employees may injure the economy, if we stretch the meaning of injury to absurd
proportions, by decreasing the Gross National Product by $ 25,000 and might add
to the balance of trade deficit by that same amount. Yet, no one would venture
that this is an injury of such consequential dimensions as to necessitate
governmental intervention.
5.
Taft-Hartley Injunctions with Eighty Day Limits Have Been Impractical
On some occasions, the eighty-day limit on injunctions has added more
controversy to labor disputes. For example, in Seafarers International Union of
North America v. United States,
the employer association successfully argued before the district court that an
eighty-day strike injunction would fail to restore the status quo ante because
Pacific voyages take longer.
The threat of a mid-voyage work stoppage would deter shippers from sending
cargo.
After the court issued its preliminary injunction, seamen were forced to enter
into employment contracts called shipping articles.
This prompted the unions to insist upon a rider that would free employees to
strike after eighty days and require employers to pay them for services
rendered and return passage.
[*118] The district court modified its injunction to prohibit this rider, which
extended the injunction for months.
Although the Ninth Circuit overturned this ruling,
this controversy exposed another flaw in Taft-Hartley strike procedures.
Although oceanic shipping is a unique enterprise, other businesses are likely
to have similar uncertainties relating to project completion times and the
resulting loss of customer confidence in a struck employer.
6. Economic Analyses of National Emergency Strikes Have Contradicted the
Fact-Findings of Taft-Hartley Courts
When
Taft-Hartley injunctions were used most frequently, the federal government conducted two careful
studies about national emergency strikes.
These were remarkable because the executive branch--once under a Democratic
President and once under a Republican President--questioned the premise of a
law that gave presidents extraordinary power to intervene in a labor dispute.
After examining steel and longshore strikes, each report concluded that the
impact of these walkouts on the nation's economy was seriously exaggerated.
The first study examined steel industry strikes in the 1950s.
Although commissioned by the U.S. Department of Labor, the study was an
independent inquiry led by a Harvard professor of business administration, E.
Robert Livernash.
Its results conflicted with judicial fact-findings in strikes that were halted
by injunctions. After running an empirical model of how the steel industry
would have behaved without these work stoppages, the report concluded that
"the economic impact of strikes on the economy are usually seriously exaggerated."
[*119]
In addition, the report questioned the policy assumption that injunctions help
unions and employers settle their differences:
"It is very difficult to be optimistic with respect to the fruitfulness of any
form of early intervention to facilitate the settlement of disputes."