Sida of Hawaii, Inc. v. National Labor Relations Board

SIDA of Hawaii, Inc. petitions for review of a decision and order of the National Labor Relations Board (the Board) requiring it to recognize and bargain with the certified representative of its “members,” whom the Board found to be “employees” within the meaning of § 2(3) of the National Labor Relations Act (the Act), 29 U.S.C. § 152 (3) (1964). The Board makes cross-application for enforcement of its order. SIDA’s petition is based upon its contention that its members are independent contractors rather than employees. We agree with SIDA and accordingly deny enforcement of the Board’s order.

I. THE ORGANIZATION AND FUNCTIONS OF SIDA

SIDA styles itself as a self-governing “trade association” formed by independent taxicab owner-operators with the intent of preserving their independence while simultaneously providing a collective body able to compete with the larger taxi companies in bidding for the right to operate out of the Honolulu airport. SIDA insists that it was conceived strictly for the benefit of its drivers and that stock ownership is widespread among, and limited to, drivers, former drivers or their heirs.

SIDA maintains a skeleton corporate structure headed by a…