Miscellaneous Service Workers, Drivers & Helpers, Teamsters Local 427 v. Philco-ford Corp.

The primary issue in this case is whether the Service Contract Act of 1965, as amended, 41 U.S.C. § 351 et seq., permits the employees of a successor contractor to a government service contract to maintain a private right of action under the Act against their employer for alleged violations of the Act. The secondary issues concern alleged fraud and a pendent state wage and hour claim.

1. PROCEDURAL AND FACTUAL BACKGROUND

Plaintiffs-appellants are former employees of Lockheed Missile and Space Company (“Lockheed”) who worked at the United States Government’s Kaena Point Missile Tracking Station, and became employees of defendant-appellees Aeronutronic Ford Corporation (“AFC”) upon succession to Air Force contract for operation of the Kaena Point station in 1972. 1

Plaintiffs allege three basic causes of action against AFC: (1) for violations of the Service Contract Act of 1965 (“SCA”), as amended, 41 U.S.C. § 351 et seq., in failing to compensate plaintiffs at prevailing wage and fringe benefit levels under their previous contract with Lockheed; (2) for deceit and misrepresentation in falsely advising plaintiffs that the SCA did not apply to their contract; and (3) for violating…