Burroughs v. Operating Engineers Local Union No. 3

• Decision Date: 22 September 1982
• Docket Number: No. 81-4145,81-4145
• Citation: 686 F.2d 723
• Parties: 110 L.R.R.M. (BNA) 2897, 111 L.R.R.M. (BNA) 2501, 94 Lab.Cas. P 13,709 Benjamin R. BURROUGHS, William H. Gault and William T. Keane, Plaintiffs-Appellants, v. OPERATING ENGINEERS LOCAL UNION NO. 3; Dale Marr; and Harold Huston, Defendants-Appellees.
• Court: U.S. Court of Appeals — Ninth Circuit

Page 723

686 F.2d 723

110 L.R.R.M. (BNA) 2897, 111 L.R.R.M. (BNA) 2501,

94 Lab.Cas. P 13,709

Benjamin R. BURROUGHS, William H. Gault and William T Keane, Plaintiffs-Appellants, v. OPERATING ENGINEERS LOCAL UNION NO. 3; Dale Marr; and Harold Huston, Defendants-Appellees.

No. 81-4145.

United States Court of Appeals Ninth Circuit.

Argued and Submitted March 9, 1982.

Decided July 2, 1982.

As Amended on Denial of Rehearing and Rehearing En Banc

Sept. 22, 1982.

Jeffrey G. Lewis, Oakland, Cal., for plaintiffs-appellants.

John J. Davis, Jr., McCarthy, Johnson & Miller, San Francisco, Cal., for defendants-appellees.

Appeal from the United States District Court for the Northern District of California.

Before HAYNSWORTH, ^* Senior Circuit Judge, TRASK, Senior Circuit Judge, and WALLACE, Circuit Judge.

WALLACE, Circuit Judge:

Burroughs, Gault and Keane (the retired union members) appeal the entry of summary judgment for the Operating Engineers Local Union No. 3 (Local 3) and two of its officers. Their complaint alleged that Article VI of the by-laws of Local 3 permits increases in the "rates of dues" payable by the union members without a majority vote of the union membership, in violation of section 101(a) (3) of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA), 29 U.S.C. § 411(a)(3). The complaint sought both preliminary and permanent injunctive relief restraining Local 3 from collecting any future dues increases pursuant to the by-laws absent the approval of a majority of the union membership voting by secret ballot. After initially denying the retired union members' motion for a preliminary injunction and the parties' cross-motions for summary judgment, the district court granted a joint motion to reconsider its order denying summary judgment. The district court then granted a motion for summary judgment for Local 3 and the officers. We reverse and remand.

I

Local 3 is a large labor organization with a membership of 32,000 working members and 5,000 retirees. It is the parent organization for six sublocals, each covering different kinds of work in separate industries. Appellants are all retired members of Local 3. Pursuant to Article VI, their dues have increased dramatically in recent years. For example, the dues paid by Burroughs have increased from $21.00 per quarter to $51.00 per quarter since his retirement in 1972, an increase of close to 150%. Expressed as a percentage of their monthly pensions, the increases in the dues paid by the retired union members have ranged from 68% to a high of 144%. The increases in the dues paid by active members of Local 3 pursuant to Article VI have also been substantial. The retired union members' evidence, largely unrebutted by Local 3, showed that for every job classification covered by Local 3's collective bargaining agreement, the dues paid by active union members have increased, both in absolute terms and as a percentage of compensation, since 1972. Although for certain years and certain job classifications there were slight decreases in dues as a percentage of earnings, the dues paid by active members have increased steadily since 1975.

Article VI of the by-laws was adopted by a majority vote of the union membership in 1964. The validity of the election adopting Article VI is not challenged in this appeal. Article VI provides ¹ generally that for each $1.00 per day increase in the "total wage package" in the master collective bargaining agreement negotiated by Local 3 and the employers' association, "the quarterly dues rate ... shall be automatically increased by fifty cents ($0.50) per month." "Total wage package" is defined to include the hourly salary rate, plus all non-salary compensation paid or contributed by the employer, calculated for a straight-time shift. Article VI also provides ²: that (1) Local 3's executive board may recommend that the automatic dues increase be "suspended for a temporary period, in whole or in part," and that any such recommendation shall be referred to the semi-annual meeting of the union membership for a vote; and (2) any temporary suspension in the automatic dues increase shall be deemed a permanent suspension to the extent it exceeds $5.00.

The retired union members have made consistent and concerted efforts to remove Article VI. For over 16 years they have protested dues increases imposed pursuant to Article VI and have asserted the illegality of the by-law under section 101(a)(3) through letters written to the executive board of Local 3. They have several times requested the executive board to submit the matter to a referendum of the union membership. Finally, nearly two months prior to the filing of the complaint in this case, they attempted to invoke the grievance procedure mechanisms of both Local 3 and the governing international union. Having received no positive response to any of their inquiries, they filed the complaint. Although Local 3 argues to the contrary, these considerations convince us that the district court did not abuse its discretion in refusing to stay the case pending exhaustion of internal union remedies by the retired union members. See Winterberger v. General Teamsters Auto Truck Drivers Local 162, 558 F.2d 923, 925 (9th Cir. 1977); Buzzard v. Local 1040 Int'l Ass'n of Machinists, 480 F.2d 35, 41-42 (9th Cir. 1973).

II

The single dispositive question presented in this appeal is the proper definition of "rates of dues," as those words are used in section 101(a)(3). ³ The LMRDA does not directly define this term. Local 3 argued, and the district court agreed, that the "rates of dues" paid by the union members had not increased as a matter of law, defining "rate of dues" to mean the formula by which an automatic increase in the "quarterly dues rate" is calculated under Article VI. The district court also agreed with Local 3's argument that the union officers' discretion to suspend any or all of the "automatic" increase did not violate section 101(a)(3) by depriving the union membership of its right to vote on increases in the rate of dues. The district judge was correct to the extent he held that if the "rate of dues" has not increased, there can be no violation of section 101(a)(3). See DiMiceli v. National Marine Engineers Beneficial Ass'n, 500 F.2d 31, 33 (9th Cir. 1974) (per curiam) (dictum). The statute requires a majority vote of the union membership only for increases in the "rates of dues"; conversely, all increases in the "rates of dues and initiation fees" must be approved by majority vote, and any by-law permitting such an increase without a vote is invalid on its face. LMRDA § 101(b), 29 U.S.C. § 411(b). But that is only a starting point.

The statute, the language of section 101(a)(3) and the legislative history of the LMRDA do not shed any direct light on what Congress intended the term "rate of dues" to mean. We therefore examine the congressional purpose underlying section 101, in particular the purpose motivating Congress's enactment of section 101(a)(3). Since our duty is to ascertain and apply the intent of Congress, we should interpret the language Congress has chosen to employ in the manner most consistent with the objective it was seeking to accomplish. See, e.g., Adams v. Howerton, 673 F.2d 1036, 1040 (9th Cir. 1982). Where, as here, Congress has failed to define its terms specifically, and the legislative history sheds no light on the question presented, our best approach is to construe the statutory language in accordance with its purpose. See Chapman v. Houston Welfare Rights Org., 441 U.S. 600, 608, 99 S.Ct. 1905, 1911, 60 L.Ed.2d 508 (1979). In this way, we properly limit ourselves, as much as we can, to interpreting and applying, rather than making, the law.

Section 101, as its title states, is a "bill of rights" for union members. Subject to such reasonable rules and regulations as may be prescribed in a union's constitution and by-laws, section 101 provides that every union member "shall have equal rights and privileges" to attend union meetings, vote and otherwise participate in union affairs; to meet and assemble freely with other union members and to express his or her own views pertaining to union elections or other union matters, whether at union meetings or otherwise; to institute legal action, whether or not against the union or its officers or members; and to petition any legislature or communicate with any legislator. It also guarantees each union member certain procedural protections in any disciplinary proceeding instituted by the union. LMRDA § 101(a)(1)-(5), 29 U.S.C. § 411(a) (1)-(5). The evident purpose of this bill of rights is to safeguard and preserve actual union democracy. Section 101 was "specifically designed to promote the 'full and active participation by the rank and file in the affairs of the union.' " Hall v. Cole, 412 U.S. 1, 7-8, 93 S.Ct. 1943, 1947, 36 L.Ed.2d 702 (1973), quoting American Federation of Musicians v. Wittstein, 379 U.S. 171, 182-83, 85 S.Ct. 300, 306, 13 L.Ed.2d 214 (1964). It was intended to protect the right of any union member to seek higher office within the union. Id. at 14, 85 S.Ct. at 1950. The guaranty of a democratic union organization provided by section 101 was designed to shield the union membership from arbitrary, autocratic, and despotic control by union officers and leaders. See, e.g., Schuchardt v. Millwrights & Machinery Erectors Local 2834, 380 F.2d 795, 797 (10th Cir. 1967); Stout v. Construction & Gen. Laborers Dist. Council, 226 F.Supp. 673, 678 (N.D.Ill.1963); Green v. Local 705, Hotel & Restaurant Employees, 220 F.Supp. 505, 506 (E.D.Mich.1963). As one court has stated:

The Congress by passing a "Bill of Rights" for union members determined that the efficiency of a monolithic union under autocratic rule was gained at too great a price if it necessitated any sacrifice in the members' rights to determine the course of their organization. The balance was struck in favor of union...