Textile Workers Union of America v. Arista Mills Co.

• Decision Date: 24 December 1951
• Docket Number: No. 6334.,6334.
• Citation: 193 F.2d 529
• Parties: TEXTILE WORKERS UNION OF AMERICA, CIO v. ARISTA MILLS CO.
• Court: U.S. Court of Appeals — Fourth Circuit

193 F.2d 529 (1951)

TEXTILE WORKERS UNION OF AMERICA, CIO v. ARISTA MILLS CO.

No. 6334.

United States Court of Appeals Fourth Circuit.

Argued November 13, 1951.

Decided December 24, 1951.

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Robert S. Cahoon, Atlanta, Ga., for appellant.

W. P. Sandridge, Winston-Salem, N. C. (Womble, Carlyle, Martin & Sandridge, Winston-Salem, N. C., on brief), for appellee.

Before PARKER, Chief Judge, and SOPER and DOBIE, Circuit Judges.

PARKER, Chief Judge.

This is an appeal from a judgment for defendant in a suit instituted by a labor union against an employer for alleged breach of a collective bargaining agreement. The plaintiff alleged that under the agreement employees who had been on strike were entitled to be treated as "laid off" employees with seniority rights and that defendant refused to so treat them and refused to bargain with plaintiff with respect to the matter. The relief asked was a judgment declaratory of their rights, a mandatory injunction for enforcing same and damages alleged to have been sustained by the plaintiff union as a result of the breach of contract. The District Court found that the strike was an economic strike, that the employees in question lost their status as employees upon its termination and that defendant was guilty of no breach of contract in refusing them the rights of "laid off" employees.

There is little if any dispute as to the facts. In June 1950 a representation election was conducted at defendant's plant by the National Labor Relations Board and the plaintiff union was selected as bargaining representative of the employees. Collective bargaining was then entered upon and carried forward in good faith by the union and the defendant. On September 18 about half of plaintiff's employees went out on strike because of a controversy with respect to the wage rate. Defendant gave notice that it would continue to run its mill, would hire other employees to replace those who were on strike and would not discharge those thus employed to make way for strikers upon the termination of the strike. Defendant proceeded on this basis and succeeded in filling all but nine of the positions held by the strikers prior to the strike.

Defendant continued to bargain with the union after the strike commenced, and this bargaining related both to the settlement of the strike and the terms of a general trade agreement. One of the principal obstacles to the settlement of the strike was a controversy relating to the reinstatement of strikers upon its termination. Defendant took the position that it would reinstate only those whose jobs had not been filled. Plaintiff demanded that all be reinstated and that persons employed to take their places be discharged. Defendant's position with regard to the matter was set forth in a written statement sent to plaintiff on November 17 and plaintiff's position in a letter of November 18 replying thereto. In addition to negotiating with defendant, plaintiff had filed with the National Labor Relations Board complaints of unfair labor practices against defendant, charging that defendant had refused to bargain with plaintiff and was discriminating in regard to hire and tenure of employment against the employees then out on strike.

On November 24 defendant submitted to plaintiff a proposed trade agreement covering all matters that had been in dispute in the various bargaining sessions as well as the matters upon which they were in accord. Article 14, entitled "Scope of Agreement", contained in paragraph 3 the only reference to the existing strike, and provided that, if it should continue beyond the signing of the agreement, the union would waive all seniority and other claims on behalf of strikers whose jobs had been filled at the date of the strike's termination but that nothing in the agreement should be construed by either party as in any way prejudicing the case pending before the National Labor Relations Board. The pertinent provisions of article 14 are as follows:

"3. In the event that the strike, which began September 18, 1950, has not been terminated by the signing of this Agreement, the Union hereby waives all seniority and all other claims on the Company on behalf of those strikers whose jobs have been filled on the date of termination of the strike.

"4. Nothing herein is intended nor may be construed by either party as in any way prejudicing the case pending before the National Labor Relations Board, filed March 10, 1950, and amended July 11, 1950, October 18, 1950, and November 8, 1950."

On December 6 plaintiff called off the strike and notified defendant that it agreed to and would sign the proposed trade agreement, which was signed the same day. Immediately after its signing a controversy arose¹ as to the meaning of the third paragraph of article 14 quoted above, the contention of plaintiff being that the effect of this provision was to preserve the seniority and other rights of the strikers just as though they had been "laid off" employees, the defendant contending that it had no such meaning and offering to rescind the contract if there had been any misunderstanding on the part of plaintiff with regard to this matter. Plaintiff refused to rescind the contract and took the position that by signing it defendant had accepted plaintiff's position as to the status of the striking employees.

The nine positions vacant at the time of the signing of the agreement were filled by plaintiff from employees who had been on strike and four other positions which became vacant during the following thirty days were similarly filled, the employees thus taken back being accorded all seniority and other rights incident to their original employment. As to the other strikers, however, defendant took the position that their employment had terminated because their positions had been filled, that they had no rights as employees because of their prior employment and that any future employment would be without reference to any such rights.

Plaintiff contends that this position of defendant amounted to a violation of the terms of the agreement signed on December 6. Its position is that the employees on strike were employees of defendant within the meaning of that agreement and that the agreement protected them as such against discrimination and assured them seniority rights as employees who had merely been laid off and were entitled to employment as soon as positions were available. Defendant denies that the strikers not reinstated have any rights as employees and denies also the jurisdiction of the court to deal with that matter, contending that the cause of action alleged with regard thereto is nothing more than the charge of an unfair labor practice of which the Labor Board is given exclusive jurisdiction. Two questions are presented for our consideration: (1) whether the District Court had jurisdiction of the cause of action alleged, and (2) if so, whether that court rendered the correct decision. We think that, in so far as the complaint alleged breach of contract on the part of defendant with respect to the rights of the former employees, there was jurisdiction in the District Court to hear and decide the case and that the court correctly decided that there was no breach of the agreement on the part of defendant and properly denied the relief sought.

Section 301(a) of the Labor Management Relations Act 29 U.S.C.A. § 185(a) vests jurisdiction in the District Courts of suits for violation of contracts between an employer and a labor organization in an industry affecting commerce. That section provides: "Suits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce as defined in this chapter, or between any such labor organizations may be brought in any district court of the...