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Case Summary: System Federation No. 91, Railway Employees Department, AFL-CIO, et al. v. O.V. Wright et al.

Factual and Procedural Background

In July 1945, twenty-eight nonunion employees, on their own behalf and as representatives of approximately 2,500 nonunion employees of the Louisville & Nashville System, brought suit against the railroad and certain shop craft unions seeking a declaration of rights and injunctive relief. By consent of the parties, on December 7, 1945, the District Court entered an injunction restraining the defendant unions (lodges and locals) from discriminating against employees because of their refusal or failure to join the unions, and enjoining the unions from requiring union membership as a condition of promotion, leaves of absence, protection of seniority rights, overtime work, and other rights or benefits arising under bargaining agreements. The decree retained jurisdiction in the District Court to enter further orders as necessary.

In 1955 a strike occurred involving violent incidents (including burning of a railroad bridge) and convictions under the Federal Train Wreck Act; during that strike some employees continued to work and were thereafter expelled from unions, while nonunion employees were threatened with reprisals.

On July 2, 1957, defendant unions and their successors moved to modify the injunction so that it would have no prospective application to prohibit unions from negotiating and enforcing union-shop agreements authorized by a subsequent amendment (the 1951 amendment) to the Railway Labor Act permitting union-shop arrangements. The railroad and the nonunion employees filed answers objecting to the modification. The District Court took testimony (including evidence of continuing hostility and threats) and issued an opinion denying the motion to modify. The United States Court of Appeals for the Sixth Circuit affirmed the District Court's order on December 5, 1959.

Legal Issues Presented

  1. Whether the District Court should modify, prospectively, a 1945 consent injunction so that it would not prohibit the unions from negotiating and enforcing union-shop agreements authorized by a subsequent amendment to the Railway Labor Act.
  2. Whether the 1951 amendment to the Railway Labor Act (authorizing union-shop agreements) nullified or altered the effect of the 1945 consent decree and injunction.

Arguments of the Parties

Appellants' (Unions') Arguments

  • The unions moved to modify the injunction so that it would not have prospective application to prevent negotiation and enforcement of a union shop, given the amendment to the Railway Labor Act permitting union-shop agreements.

Appellees' (Railroad and Nonunion Employees') Arguments

  • The railroad and nonunion employees objected to the modification of the injunction. Testimony presented showed abuse and mistreatment of employees who had worked during the 1955 strike and threats of future reprisals, supporting the objection to prospective application that would permit a union shop.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Stanley v. United States, 6 Cir., 245 F.2d 427 Referenced for factual background relating to the 1955 strike and convictions under the Federal Train Wreck Act. Used as background support for the description of violent events and criminal prosecutions arising from the 1955 strike.
Wright v. System Federation No. 91, Railway Employees' Department, AFL-CIO, 165 F. Supp. 443 The District Court opinion setting forth the reasons for denying the motion to modify the injunction. The Sixth Circuit affirmed the District Court's order "for the reasons set forth" in this opinion.

Court's Reasoning and Analysis

The District Court acknowledged that it possessed continuing authority to modify the prospective application of its injunction. However, the court examined the effect of the amendment to the Railway Labor Act (the 1951 amendment) and concluded that the amendment merely made negotiation of a union shop permissive; it did not mandate a union shop nor did it nullify the parties' prior consent agreement embodied in the 1945 injunction. When the injunction was entered, the Railway Labor Act made a union shop illegal, and the parties had, by consent, provided that no requirement of union membership would be imposed as a condition of employment in future bargaining agreements.

The District Court further considered testimony showing continuing bitterness and hostility between union and nonunion employees and specific evidence of abuse and threats of reprisals against those who had worked during the 1955 strike. In light of the parties' consent agreement and the demonstrated hostile circumstances, the District Court concluded that the 1951 amendment did not invalidate the consent decree's protections and that the parties should remain as they had agreed.

The Court of Appeals reviewed the District Court's findings and reasoning and found no error in the denial of the unions' motion to modify the injunction, affirming the District Court's decision for the reasons set forth by Chief Judge Shelbourne in the District Court opinion.

Holding and Implications

AFFIRMED.

Holding: The District Court's order denying the motion to modify the 1945 consent injunction was affirmed. The appellate court agreed that the 1951 amendment to the Railway Labor Act, which permitted negotiation of union-shop agreements, did not nullify the parties' consent decree or require modification of the injunction under the circumstances presented.

Implications: As a direct effect, the injunction remains in force preventing the unions from requiring union membership as a condition for promotion, leaves, seniority protection, overtime, and similar employment rights for the represented nonunion employees. The opinion affirms the District Court's application of the consent decree to leave the parties "as they agreed to be, and to remain." The opinion does not announce or discuss any broader rule of law beyond affirming the District Court's application of the consent decree and its reasoning; no new precedent beyond this disposition is articulated in the opinion.

SYSTEM FEDERATION NO. 91, Railway Employees Department, AFL-CIO, et al., Appellants, v. O.V. WRIGHT et al., Appellees.

PER CURIAM.

This is an appeal from an order denying a motion to modify an injunction. The controversy has its roots in bitter disagreements between groups of union and nonunion railroad employees, which originated in disputes arising many years ago; and it also stems from a strike, accompanied by much violence, in 1955, in which a railroad bridge was burned, and certain employees were sentenced to prison terms, for violation of, and conspiracy to violate, the Federal Train Wreck Act, 18 U.S.C.A. § 1992. See Stanley v. United States, 6 Cir., 245 F.2d 427. During the strike, many union and nonunion employees continued to work, the union employees being expelled as a result, and the nonunion employees being threatened with reprisals.

Long prior to the strike, twenty-eight nonunion employees in July, 1945, for themselves and as representatives of all nonunion employees of the Louisville and Nashville System, including approximately twenty-five hundred such employees, brought an action against the railroad and certain shop craft unions seeking a declaration of rights, and an injunction. On December 7, 1945, the District Court, by consent and agreement of all parties to the action, entered an injunction restraining the lodges and locals of defendant unions from discriminating against the other employees, because of their failure or refusal to join the unions and further enjoining the unions from requiring that the plaintiffs and classes, represented by them, join or retain their membership in the unions as a condition of receiving promotion, leaves of absence, proper protection of seniority rights, overtime work, and any other rights or benefits which might arise out of, or be in accordance with, the regularly adopted bargaining agreements in effect between the railroad and the defendant unions. The unions were also enjoined from denying such employees promotions, pay increases, leaves of absence, seniority protection and the like, because of their failure to join or retain membership in the union. It was further provided in the decree that the District Court would retain control of the action for the purpose of entering such further orders as might be deemed necessary and proper.

Nearly twelve years after the consent decree in which the injunction was entered, the defendant unions and their successors, on July 2, 1957, filed their motion to modify the injunction, by an amendment that it have no prospective application to prohibit the unions from negotiating and enforcing any agreement authorized by an amendment to the Railway Labor Act, 45 U.S.C.A. § 151 et seq., enacted subsequent to the entry of the injunction, which permitted the making of union security agreements, and authorized carriers and the bargaining representatives of railroad labor to provide for a union shop, with the requirement that the employees, as a condition to their continued employment, become and remain members of the union.

Answers were filed by the railroad, and on behalf of the nonunion employees, objecting to the granting of the motion to modify the injunction; and testimony was taken in court, disclosing abuse and mistreatment by union members of employees who had worked during the strike, and threats of reprisals in the future when a union shop should come into existence. The District Judge in his opinion, filed after argument of the motion to modify the injunction, observed that it had been shown, without an attempt at refutation, that bitterness and hostility, at that time, continued to exist between the union and nonunion employees, and between the unions and their employees who had worked during the 1955 strike.

The District Court held that there was continuing authority in the court to modify the prospective application of the judgment of injunction.

The court further held that, at the time of the issuance of the injunction, the Railway Labor Act made a union shop illegal, so that it was then unnecessary for the railroad and the unions to agree that nonunion members should not then be required to have membership in unions as a condition precedent to employment. When the injunction was issued, the parties therein, by their consent thereto, provided that no such requirement of union membership should thereafter be in effect in any bargaining agreement under the Act. The Amendment of 1951, subsequent to the issuance of the injunction, did no more, the court held, than make negotiations for a union shop permissive, and did not nullify the agreement or the injunction issued. It authorized a union shop by agreement, but did not require it, or require that, as a condition of employment, an employee should join or retain his membership in, the bargaining union, or any union. Since, as the court said, the amendment did not require a union shop, the court, under the circumstances of the case, left the parties as they agreed to be, and to remain.

We find no error in the order of the District Court overruling appellants' motion to modify the injunction; and the order is affirmed for the reasons set forth in the opinion of Chief Judge Shelbourne. Wright v. System Federation No. 91, Railway Employees' Department, AFL-CIO, 165 F. Supp. 443.

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SYSTEM FEDERATION NO. 91 v. WRIGHT
(Dec 5, 1959)