Pacific Northwest Chapter of Associated Builders & Contractors, Inc. v. National Labor Relations Board

Construction contractors challenge in these cases the legality of a provision in a collective bargaining agreement which prohibits a signatory contractor from assigning work to subcontractors unless the subcontractors have a collective bargaining agreement with the signatory union. The National Labor Relations Board has ruled that such a provision does not violate the prohibition in the National Labor Relations Act (the Act) against “hot cargo” agreements. 1

In deciding these cases we must determine the scope of the Supreme Court’s holding in Connell Construction Co. v. Plumbers Local 100, 421 U.S. 616 , 95 S.Ct. 1830 , 44 L.Ed.2d 418 (1975). We hold that under Connell the clauses before us are not lawful under section 8(e) of the Act, 29 U.S.C. § 158 (e) (1976), and are not within the construction industry proviso of section 8(e).

*1344 Our jurisdiction rests on 29 U.S.C. § 160 (e) and (f) (1976).

I.

FACTUAL BACKGROUND

Two decisions of the Board are before us for review. The first considered the legality of a collective bargaining agreement between the Oregon-Columbia Chapter of the Associated General Contractors of America, Inc. (AGC), which is an association of…