N.Y. Shipping Ass'n Inc. v. Waterfront Comm'n of N.Y. Harbor

Decision Date30 August 2016
Docket Number14–4279,14–3958,14–4278,14–4422,14–3957,Nos. 14–3956,s. 14–3956
Citation835 F.3d 344
Parties New York Shipping Association Inc, on behalf of its members; Metropolitan Marine Maintenance Contractors' Association, Inc., on behalf of its members; International Longshoremen's Association AFL–CIO, on behalf of its members and affiliated locals in the Port of New York and New Jersey; Local 1804–1, International Longshoremens Association, AFL–CIO; Local 1814, International Longshoremen's Association, AFL–CIO, on behalf of its members v. Waterfront Commission of New York Harbor New York Shipping Association Inc., Appellant in 14–3956 New York Shipping Association Inc, on behalf of its members; Metropolitan Marine Maintenance Contractors Association, Inc. on behalf of its members; International Longshoremens Association AFL–CIO, On behalf of its members and affiliated locals in the Port of New York and New Jersey; Local 1804–1, International Longshoremen's Association, AFL–CIO; Local 1814, International Longshoremen's Association, AFL–CIO v. Waterfront Commission of New York Harbor International Longshoremen's Association, AFL–CIO, Local 1804–1, International Longshoremen's Association, AFL–CIO, Local 1814, International Longshoremen's Association, AFL–CIO, Appellants in 14–3957 New York Shipping Association Inc, on behalf of its members; Metropolitan Marine Maintenance Contractors' Association, on behalf of its members; International Longshoremens Association AFL–CIO, on behalf of its members and affiliated locals in the Port of New York and New Jersey; Local 1804–1, International Longshoremen's Association, AFL–CIO; Local 1814, International Longshoremen's Association, AFL–CIO, on behalf of its members v. Waterfront Commission of New York Harbor Metropolitan Marine Maintenance Contractors' Association, Inc., Appellant in 14–3958 New York Shipping Association Inc, on behalf of its members; Metropolitan Marine Maintenance Contractors Association, on behalf of its members; International Longshoremens Association AFL–CIO, on behalf of its members; International Longshoremens Association Local 1804–1, on behalf of its members; International Longshoremens Association 1814, on behalf of its members v. Waterfront Commission of New York Harbor New York Shipping Association, Inc., Appellant in 14–4278 New York Shipping Association Inc, on behalf of its members; Metropolitan Marine Maintenance Contractors Association, on behalf of its members; International Longshoremens Association 1814, on behalf of its members; International Longshoremens Association Local 1804–1, on behalf of its members; International Longshoremens Association AFL–CIO, on behalf of its members v. Waterfront Commission of New York Harbor International Longshoremen's Association, AFL–CIO; International Longshoremen's Association 1814, International Longshoremen's Association 1804–1; Appellants in 14–4279 New York Shipping Association Inc, on behalf of its members; International Longshoremens Association 1814, on behalf of its members; International Longshoremens Association AFL–CIO, on behalf of its members; International Longshoremens Association Local 1804–1, on behalf of its members; Metropolitan Marine Maintenance Contractors Association, on behalf of its members v. Waterfront Commission of New York Harbor Metropolitan Marine Maintenance Contractors Association Inc., Appellant in 14–4422
CourtU.S. Court of Appeals — Third Circuit

James R. Campbell, Jr., Esq., Donato Caruso, Esq. [Argued], The Lambos Firm, 303 South Broadway, Suite 410, Tarrytown, NY 10591 Counsel for Appellant New York Shipping Association, Inc.

Kevin J. Marrinan, Esq. [Argued], John P. Sheridan, Esq., Marrinan & Mazzola Mardon, 26 Broadway, 17th Floor, New York, NY 10004 Counsel for Appellants International Longshoremen's Association AFL–CIO, International Longshoremen's Association AFL–CIO Local 1804–1, and International Longshoremen's Association AFL–CIO Local 1814

Peter O. Hughes, Esq. [Argued], Ogletree, Deakins, Nash, Smoak & Stewart, 10 Madison Avenue, Suite 400, Morristown, NJ 07960 Counsel for Appellant Metropolitan Marine Maintenance Contractors Association

Phoebe S. Sorial, Esq. [Argued], Waterfront Commission of New York Harbor, 39 Broadway, 4th Floor, New York, NY 10006 Counsel for Appellee Waterfront Commission of New York Harbor

BEFORE: FUENTES, NYGAARD, and ROTH, Circuit Judges

OPINION OF THE COURT

NYGAARD, Circuit Judge.

The District Court ruled that the Appellee, Waterfront Commission of New York Harbor (Commission or Waterfront Commission),1 was within its statutory authority to require shipping companies and other employers to certify that prospective employees had been referred for employment pursuant to federal and state nondiscrimination policies. The District Court also rejected claims that the Commission had unlawfully interfered with collective bargaining rights, holding that such rights were not completely protected under the language of the Waterfront Commission Compact (Compact), which was entered into by the states of New Jersey and New York in 1953. We will affirm.

I.

Factual and Procedural Background

This appeal takes us deep into the hiring practices and procedures utilized on the New York/New Jersey waterfront. We will start with some history, which to varying degrees, has been reported elsewhere. See, e.g. , De Veau v. Braisted , 363 U.S. 144, 80 S.Ct. 1146, 4 L.Ed.2d 1109 (1960) ; Waterfront Comm'n of N.Y. Harbor v. Sea Land Serv., Inc ., 764 F.2d 961 (3d Cir. 1985) ; Haze l ton v. Murray , 21 N.J. 115, 121 A.2d 1 (1956) ; Waterfront Comm'n of N.Y. Harbor v. Constr. & Marine Equip. Co., Inc ., 928 F.Supp. 1388 (D.N.J. 1996). Years of criminal activity and corrupt hiring practices on the waterfront were first brought to light in 1949 in a series of 24 articles published in the New York Sun by journalist Malcolm Johnson. Entitled “Crime on the Waterfront,” these articles won Johnson the Pulitzer Prize, and formed the basis for the 1954 film “On the Waterfront.”2

Hiring practices on the waterfront also caught the attention of the New York State Crime Commission (Crime Commission), which issued a report in 1953 relating in detail the pervasive influence of crime and corruption on waterfront hiring practices. See Fourth Report of the New York State Crime Commission , N.Y.S. Leg. Doc. No. 70 (1953). The Crime Commission singled-out the “shape-up” hiring system for particular scorn. The term connotes a hiring method whereby the applicants appeared daily at the docks or other locations and a hiring boss would select those who would be given work. Id. at 37.3 The foundation of this practice was the union foreman's unfettered control over the process and his unchecked power to select whomever he desired for employment.

The Crime Commission report led to public hearings on its findings. Then-New York Governor Thomas E. Dewey held hearings, the goal of which was to come up with a legislative plan to address the Commission's concerns. Representatives of the State of New Jersey were also present for and participated in these hearings. The “shape-up” hiring system was identified by the Commission as a vector for corruption and criminal practices on the docks. So as “to investigate, deter, combat and remedy” this criminality and corruption, the states of New Jersey and New York entered into the Compact in 1953. Gonzalez v. Waterfront Comm'n of N.Y. Harbor , 755 F.3d 176, 177 (3d Cir. 2014) ; see also N.J.S.A. § 32:23–1, et seq. Pursuant to Art. I., § 10 of the United States Constitution, Congress approved the Compact in August of 1953.4 The Compact created the Waterfront Commission to, among other things, eliminate corrupt hiring practices on the waterfront. Waterfront Comm'n of N.Y. v. Elizabeth–Newark Shipping Inc ., 164 F.3d 177, 180 (3d Cir. 1998) (citing Hazelton , 21 N.J. at 120–23, 121 A.2d 1 ). In enacting the Compact, the legislatures of both states noted:

that the conditions under which waterfront labor is employed with the Port of New York district are depressing and degrading to such labor, resulting from the lack of any systemic method of hiring, the lack of adequate information as to the availability of employment, corrupt hiring practices, and the fact that persons conducting such hiring are frequently criminals and persons notoriously lacking in moral character and integrity and neither responsive or responsible to the employers nor to the uncoerced will of the majority members of the labor organizations of the employees; that as a result waterfront laborers suffer from irregularity of employment, fear and insecurity, inadequate earnings, an unduly high accident rate, subjection to borrowing at usurious rates of interest, exploitation and extortion as the price of securing employment.

N.J.S.A. § 32:23–2.

One way the Compact sought to rein in the corruption associated with hiring on the waterfront was by requiring the Commission to regulate longshoremen and stevedores. Employment Information Centers were to be operated by the Commission to handle all hiring of longshoremen. Further, the Compact charged the Commission with registering all individuals who were qualified to work as longshoremen and specifically provided that “no person shall act as a longshoreman within the Port of New York district unless at the time he is included in the longshoremen's register.” N.J.S.A. § 32:23–27. The Compact also provided a definition of a longshoreman:

[A] natural person, other than the hiring agent, who is employed for work at a pier or other waterfront terminal, either by a carrier of freight by water or by a stevedore (a) physically to move waterborne freight on vessels berthed at piers, on piers or at other waterfront terminals, or (b) to engage in direct and immediate checking of any such freight or of the custodial accounting therefore, or in the recording or tabulation of the hours worked at piers or other waterfront terminals by natural persons employed by carriers of freight
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