National Labor Relations Board v. Boeing Co.

Background

This dispute involved Boeing and a local union that called an eighteen-day strike. About 143 workers crossed the picket line and the union later found them guilty under its rules, fined each $450, and barred them from union office for five years. Some fines were reduced for workers who apologized; nine suits to collect unpaid fines were filed in state court. The Company asked the federal Labor Board to challenge the fines as unlawful.

Reasoning

The core question was whether the National Labor Relations Board must judge whether a union’s disciplinary fine is reasonable when deciding if the fine is an unfair labor practice. The Court held the Board lacks authority under the National Labor Relations Act to decide the size or reasonableness of such internal fines. The opinion relied on earlier cases and long-standing Board practice that reserve these internal-discipline disputes to state-law forums. The Court reversed the lower court’s order that had told the Board to examine reasonableness.

Real world impact

Under this ruling, disputes over how large a union fine may be will generally be decided by state courts applying state law, not by the federal Labor Board. Workers who are fined and who lack money may face uphill battles in state court. Employers and unions will also see less federal agency oversight of internal union discipline, potentially creating different outcomes across States.

Dissents or concurrances

Chief Justice Burger and Justice Douglas (joined by two others) dissented, arguing the Board’s expertise and accessibility make it a better forum, and warning that leaving review to state courts risks inconsistent results and may disadvantage low-paid employees.