National Labor Relations Board v. Fruehauf Trailer Co, s. 420

• Decision Date: 12 April 1937
• Docket Number: 421,Nos. 420,s. 420
• Citation: 57 S.Ct. 642,81 L.Ed. 918,301 U.S. 49
• Parties: NATIONAL LABOR RELATIONS BOARD v. FRUEHAUF TRAILER CO. (two cases)
• Court: U.S. Supreme Court

301 U.S. 49

57 S.Ct. 642

81 L.Ed. 918

NATIONAL LABOR RELATIONS BOARD

v FRUEHAUF TRAILER CO. (two cases).

Nos. 420, 421.

Argued Feb. 11, 1937.

Decided April 12, 1937.

Messrs. Homer S. Cummings, Atty. Gen., and Stanley F. Reed, Sol. Gen., of Washington, D.C., for petitioner.

[Argument of Counsel from page 50 intentionally omitted] Mr. Thomas G. Long, of Detroit, Mich., for respondent.

Mr. Chief Justice HUGHES delivered the opinion of the Court.

In October, 1935, charges against the respondent, Fruehauf Trailer Company, were filed with the National Labor Relations Board. The Board issued its complaints (in two cases) alleging that the Company was engaged in unfair labor practices as described in section 8, subdivisions (1) and (3), of the National Labor Relations Act of 1935. 49 Stat. 449, 29 U.S.C. 151 et seq. (29 U.S.C.A. § 151 et seq.). The practices were said to consist in the discharge of, and threats to discharge, employees because of their affiliation with, and activity in, the labor organization known as United Automobile Workers Federal Labor Union No. 19375.

Notice of hearing was given and the complaints were consolidated. Respondent appeared specially and filed motions to dismiss the complaints upon the ground that the Board was without jurisdiction and that the act as applied to respondent violated article 1, section 1, and the First, Fifth, Seventh and Tenth Amendments of the Constitution of the United States. Answers were also filed, denying the charges and reserving the same jurisdictional and constitutional objections. Hearing was had. The Board received evidence upon the jurisdictional issue and, reaffirming an earlier ruling, denied the motions to dismiss. Hearing upon the merits proceeded, and in December, 1935, the Board made its findings and entered its order.

The order required the respondent to cease and desist from discharging, or threatening to discharge, any of its employees because of their joining the Union; from employing detectives for the purpose of espionage within the Union; and from interfering in any other manner with or coercing its employees in the exercise of their right to self-organization for the purpose of collective bargaining or other mutual aid or protection as guaranteed in section 7 of the act (29 U.S.C.A. § 157). The order also required the respondent to cease and desist from discouraging membership in the Union or, in any other labor organization of its employees, by discrimination in regard to hire or tenure of employment. Respondent was directed to offer reinstatement to the employees who had been discharged, to make good their losses in pay, and to post for thirty days notices that it had complied with the order in ceasing the interferences set forth.

The Circuit Court of Appeals dismissed the petition of the Board to enforce its order and set the order aside. 85 F.(2d) 391. This Court granted certiorari. 299 U.S. 534, 57 S.Ct. 119, 81 L.Ed. —-.

With respect to the nature of respondent's business the Board made the following findings: Respondent is a corporation organized under the laws of Michigan and is engaged in the manufacture, assembly, sale, and distribution of commercial trailers and of trailer parts and accessories. The trailers are vehicles designed for the transportation of merchandise. Respondent's plant is located in Detroit and is the largest concern of its kind in the United States. Respondent maintains 31 branch sales offices in 12 different states and has distributors and dealers in the principal cities of the country. A wholly-owned subsidiary operates in Toronto, Canada, where sales are made and considerable assembly work is done with materials obtained from the Detroit plant and in Canada. More than 50 per cent. in value of the materials used by the respondent in manufacture, assembly and shipping during the year 1934 were transported to its Detroit plant from Ohio, Illinois, Indiana, and other states. Most of the lumber was transported from southern states and most of the finished parts were transported from states other than Michigan. In 1934, respondent's sales amounted to $3,318,000. Its nearest competitor sold only 37 per cent. of that amount. More than 80 per cent. of its sales are of products shipped outside the state of Michigan through and to other states and to foreign countries. Between January 1 and November 1, 1935, 112 carloads of respondent's products were shipped to points outside the state of Michigan by railroad and 400 to 500 trailers with accessories were hauled over the highways by motor trucks or tractors to points outside the state. About 30 chassis a day are finished at the Detroit plant of which 80 per cent. are started on their way to destinations outside Michigan. In connection with its interstate sales, respondent furnishes service in the determination of customers' needs and assists in the laying out of special construction requirements. Respondent's sales of trailers in Canada are accomplished through its Canadian subsidiary, and its sales it states other than Michigan are made through its branch sales offices and its distributors and dealers. It is a practice of respondent to consign trailers and parts to distributors and dealers in various states with title retained in respondent until payment is made. The manufacturing and assembly operations at the Detroit plant are essentially connected with and dependent upon the purchase, sales and distribution operations without the state of Michigan. The findings also describe various features of respondent's manufacturing and distributing activities.

With respect to the alleged unfair labor practices, the Board found in substance as follows: The United Automobile Workers Federal...