Johnson v. Goodyear Tire & Rubber Company

Citation349 F. Supp. 3
Decision Date10 August 1972
Docket NumberCiv. A. No. 69-H-899,71-H-1027.
PartiesR. L. JOHNSON, Plaintiff, v. GOODYEAR TIRE & RUBBER COMPANY et al., Defendants. INTERNATIONAL UNION OF OPERATING ENGINEERS, AFL-CIO, LOCAL UNION NO. 347, Plaintiff, v. GOODYEAR TIRE & RUBBER COMPANY, HOUSTON CHEMICAL PLANT, Defendant.
CourtU.S. District Court — Southern District of Texas

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Gabrielle K. McDonald, McDonald & McDonald, Houston, Tex., for R. L. Johnson.

V. Reagan Burch, Jr., Daniel O. Goforth, Baker & Botts, Houston, Tex., for Goodyear Tire & Rubber Co.

William N. Wheat, Wheat & Bartlett, Houston, Tex., for Local Union No. 347.

MEMORANDUM OPINION

CARL O. BUE, Jr., District Judge.

These two consolidated lawsuits were tried to the Court. The first action was instigated by a black employee against an employer and labor union and arises out of alleged racial discrimination in employment practices violative of Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e-2 and the Civil Rights Act of 1866, 42 U.S.C. § 1981. The second action was commenced by the labor union against the employer to prevent a unilateral abrogation of the collective bargaining agreement implemented by the employer allegedly to rectify a racially discriminatory provision in the collective bargaining agreement, but attacked here, notwithstanding the first suit, as being violative of section 301 of the Labor-Management Relations Act, 29 U.S.C. § 185.

In the first lawsuit, plaintiff, a black employee of Goodyear Tire & Rubber Company (Goodyear), seeks on behalf of other black employees similarly situated injunctive relief and back pay as a result of alleged racial discrimination in employment practices by Goodyear and Local 347, International Union of Operating Engineers (Local 347) in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e-2 and the Civil Rights Act of 1866, 42 U.S.C. § 1981. Jurisdiction is invoked pursuant to 42 U.S.C. §§ 2000e-2(a), (c), 2000e-5(f) and 28 U.S.C. § 1343. Plaintiff contends that as a consequence of the employment practices and collective bargaining agreement entered into by the defendants black employees have been in the past and continue to be segregated by assignment to the labor department. It is further alleged that Goodyear's testing and high school educational requirements as well as the seniority provision in the applicable collective bargaining agreement serve to perpetuate this hiring discrimination.

In response to plaintiff's claim of racial discrimination defendant Goodyear, although apparently conceding past racial discrimination, contends that since 1962 it has not only stopped any racially discriminatory practices but, in addition, it has employed an active program to recruit and employ black employees into non-labor department jobs. Specifically, it is asserted by Goodyear that blacks are no longer segregated in the labor department, that the testing and educational requirements, although abruptly abandoned on April 22, 1971, at the behest of the Office of Federal Contract Compliance, were employed solely to select the most qualified employees and not for any discriminatory purpose and that the seniority provision embodied within the collective bargaining agreement was negotiated in good faith and was not intended to discriminate against black employees. Defendant Local 347 alleges that it is not a proper party, since it had no control over Goodyear's hiring and employment practices made the basis of this lawsuit.

In the second lawsuit, Local 347 seeks to enjoin Goodyear from unilaterally annulling the seniority provision, article X, of the collective bargaining agreement or, alternatively, to prevent the amendment of the article in such a manner so as to impose a seniority system that is patently discriminatory as to other employees in the applicable bargaining unit. Goodyear alleges that since it does substantial work for the government, it is subject to the regulations of the Office of Federal Contract Compliance of the United States Department of Labor. In accordance with regulations promulgated pursuant to an Executive Order, Goodyear is required to abolish its allegedly discriminatory seniority provision in the collective bargaining agreement and substitute a provision which would give black employees who transfer out of the labor department whatever seniority they have previously acquired. On September 7, 1971, Goodyear openly announced that it intended to amend article X of the collective bargaining agreement and substitute a new seniority provision.

On November 19, 1971, this Court preliminarily enjoined Goodyear from abrogating the seniority provision. The Court took this course of action after reviewing the anti-injunction section of the Norris-LaGuardia Act, 29 U.S.C. § 101, in conjunction with section 301 of the Labor-Management Relations Act, 29 U.S.C. § 185, and thereupon concluding that the state of the law with respect to enjoining employers from abrogating a collective bargaining agreement was unclear. Under the circumstances the Court chose to resolve the question on general principles of equity and, accordingly, ordered the status quo maintained pending trial on the merits of the two causes of action. See Retail Clerks Union Local 1222 v. Alfred M. Lewis, Inc., 327 F.2d 442 (9th Cir. 1964); Local Union No. 328 v. Armour & Co., 294 F. Supp. 168 (W.D.Mich.1968). See also Annot., 16 L.Ed.2d 1143 (1967). Local 347 stipulated at the hearing on the motion for preliminary injunctive relief that any disposition of the first lawsuit, including any Court ordered change in the seniority provision of the collective bargaining agreement, would be dispositive of its prayer for relief in the second action. Such a stipulation serves to simplify the task of this Court in resolving the issues contained in these two consolidated lawsuits.

I. Factual Background
A. The Company and Union

Goodyear's Houston plant which is devoted exclusively to the production of synthetic rubber was operated for the United States Government from 1943 to 1955. In 1955 Goodyear assumed ownership of this plant and thereafter has continuously operated the plant in a private capacity. In 1957 when Goodyear undertook to expand the plant's facilities, a rule was imposed requiring that any applicant for employment to any non-labor department and any employee seeking a transfer to any non-labor department possess a high school education or its equivalent, and achieve a satisfactory score on certain tests, primarily an adaptability test prepared by Science Research Associates.

Goodyear as the employer and Local 347, which has represented the production and labor department employees at this plant in contract negotiations since 1943, have employed through the collective bargaining agreement a form of departmental seniority system at this plant. An employee, pursuant to this system, began accumulating seniority in a department upon entering it and thereafter utilized such accrued seniority within this departmental group when moving between job assignments, when layoffs occurred and in other instances in which seniority was a controlling factor. However, there has never been any established procedure for transferring seniority from one department to another. Before July 24, 1970, transferring employees retained their seniority in the former department for two years. Since July 24, 1970, a transferring employee, although unable to transfer his previously accrued seniority to the new department, has been able to retain seniority in the former department indefinitely.

As a result of Goodyear's employment hiring practices it is an undisputed fact that until July 14, 1962, black applicants seeking employment at the plant were segregated into the labor department, and until September 7, 1965, white applicants were funneled away from the labor department. It is also undisputed that the employment positions in the labor department were composed of the least skilled and lowest paid positions in the applicable bargaining unit at this plant.

In 1962 Goodyear became involved in the Plans for Progress Program, a voluntary program created for the purpose of improving employment opportunities for minority groups. Thereafter, Goodyear undertook to employ minorities in all departments of the plant. Procedures were established whereby black employees in the labor department could request transfers to other departments if they could satisfy the educational and testing requirements. Further, on three occasions Goodyear, at the behest of the OFCC, offered to relax the educational and testing requirements as applied to labor department employees. First, in 1968 all employees hired in the labor department prior to 1957 were given the opportunity to transfer to other departments if they had attained a seventh grade education and were able to achieve a satisfactory score on the tests. No affirmative results were obtained, since no minority group employee was able to pass the tests. Second, in 1969 the same group was given the opportunity to transfer without taking the tests. However, in view of the distinct disadvantage incurred when transferring, whereby accrual of seniority in the new department for transferring employees only commenced on the date of transfer, little success was attained in placing blacks in departments other than the labor department. Four employees were eventually transferred. Finally, after the educational and testing requirements were abolished on April 22, 1971, labor department employees hired prior to September 7, 1965, were given the opportunity on September 7, 1971, to transfer without satisfying the educational or testing requirements and, most importantly, to carry with them their labor department seniority.

B. The Plaintiff

The plaintiff, a high school graduate, was initially employed by Goodyear in the labor...

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