239 NLRB 274
International Union of Operating Engineers
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
International Union of Operating Engineers, Local
No. 701, AFL-CIO; Oregon-Columbia Chapter,The
Associated General Contractors of America, Inc.
and Pacific Northwest Chapter of the Associated
Builders & Contractors, Inc. Case 36 CE-16
November 13, 1978
DECISION AND ORDER
Upon charges filed by Pacific Northwest Chapter
of the Associated Builders & Contractors, Inc.
(herein called ABC), on April 26. 1977,' and duly
served on International Union of Operating Engi-
neers, Local No. 701, AFL-CIO (herein called Engi-
neers), and Oregon-Columbia Chapter, The Associ-
ated General Contractors of America, Inc. (herein
called AGC), the General Counsel of the National
Labor Relations Board, acting through the Regional
Director for Region 19, on September 20, issued and
served on Respondents an amended complaint and
notice of hearing. The complaint alleges that Re-
spondents entered into an agreement containing a
subcontracting clause and an intertwining self-help
provision whereby AGC and its employer-members
have agreed to cease doing business with other per-
sons in violation of Section 8(e) of the National La-
bor Relations Act, as amended (herein called the
Act). On October 3, 1977, Respondents filed, and
duly served on ABC and the General Counsel, their
answer to the amended complaint in which they de-
nied the commission of any unfair labor practices.
Thereafter, on December 2, 1977, Respondents,
ABC, and counsel for the General Counsel entered
into a stipulation of facts and motion to transfer the
proceedings to the Board, wherein they agreed that
the charges, the amended complaint, the answer to
the amended complaint, and the stipulation of facts,
including the exhibits attached thereto, shall consti-
tute the entire record herein and that no oral testi-
mony is necessary or desired by any of the parties.
The parties further stipulated that they waive hearing
before an Administrative Law Judge, the making of
findings of fact and conclusions of law by an Admin-
istrative Law Judge, and the issuance of an Adminis-
trative Law Judge's Decision, and desire to submit
these cases for findings of fact, conclusions of law,
and Order directly by the Board. The parties, how-
ever, expressly limited the stipulation of facts for the
purposes of this proceeding only. In addition, the
parties reserved the right to object to the relevancy.
materiality, or competency of any of the facts stated
in the stipulation.
All dates are 1977. unless otherwise indicated.
On January 16, 1978, the Board issued an order
approving the stipulation and transferring the pro-
ceedings to the Board and set a date for the filing of
briefs. Thereafter, Respondents, ABC, and the Gen-
eral Counsel filed briefs in support of their respective
positions. In addition, briefs amici curiae were filed
on behalf of the American Federation of Labor and
Congress of Industrial Organizations, the Building
and Construction Trades Department, AFL-CIO,
and the Chamber of Commerce of the United States
of America.2
Pursuant to a notice of hearing issued by the
Board on February 8, 1978, oral argument in this
case and related proceedings 3 was held before the
Board in Washington, D.C., on February 23, 1978. In
addition to arguments presented by the parties in-
volved in the several proceedings, permission to ar-
gue orally as amici curiae was granted to the Cham-
ber of Commerce of the United States of America,
the American Federation of Labor and Congress of
Industrial Organizations, the Building and Construc-
tion Trades Department, AFL-CIO, and the Labor-
ers International Union of North America, AFL-
CIO.
The Board has considered the entire record herein
as stipulated by the parties, the briefs of the parties
and the amici curiae, and the oral arguments made to
the Board, and hereby makes the following findings
and conclusions:
i. THE BUSINESS OF RESPONDENT AGC
Respondent AGC is an association of employers
engaged in the construction industry throughout Or-
egon and part of the State of Washington. The em-
ployer-members of AGC, including H. A. Anderson
Company, Inc., have delegated their collective-bar-
gaining authority to the AGC for the purpose of, in-
ter alia, negotiating and entering into collective-bar-
gaining contracts on behalf of its employer-members
with the bargaining representatives of their employ-
ees, including Engineers. The employer-members of
AGC, in the course and conduct of their businesses.
annually purchased goods, materials, and supplies
valued in excess of $50,000, which were shipped to
said employer-members directly from States of the
United States other than the States of Oregon and
2The Chamber's brief is primarily addressed to the issues raised in 239
NLRB 264. but also speaks to issues raised by this proceeding.
IColorado Building & Construction Trades Council (Utilities Services Engi-
neering, Inc.), 239 NLRB 264 (1978); Los Angeles Building and Construction
Trades Council and Local Union No. 1497, United Brotherhood of Carpenters
a Joiners of America (Donald Schriver, Inc. and Sullivan-Kelly & Associates),
239 N LRB 264 (1978); Carpenters Local No. 944, United Brotherhood of Car-
penters and Joiners of America, AFL-CIO; and Carpenters Local No. 235,
United Brotherhood of Carpenters and Joiners of A menrica, A FL-CIO (Woelke
& Romero Franming, Inc.), 239 NLRB 241 (1978).
274
OPERATING ENGINEERS, LOCAL NO. 701
Washington. The parties stipulated, and we find, that
AGC is, and has been at all times material herein, an
association of employers engaged in commerce with-
in the meaning of Section 2(6) and (7) of the Act.
II. THE LABOR ORGANIZATION INVOLVED
The parties stipulated, and we find, that Respon-
dent Engineers is now, and has been at all times ma-
terial herein, a labor organization within the meaning
of Section 2(5) of the Act.
III. THE ALLEGED UNFAIR LABOR PRACTICES
A. The Issues
1. Is the subcontracting clause, article VIll, sec-
tion 1, contained in Respondents' current collective-
bargaining agreement proscribed by the general pro-
vision of Section 8(e) of the Act, and, if so, is the
clause protected by the first proviso thereto?
2. If lawful by itself, does the subcontracting
clause in Respondents' current collective-bargaining
agreement, when read in conjunction with articles IX
and X, violate Section 8(e) of the Act?
B. The Stipulated Facts
As stated, AGC has at all material times herein
been an organization of employer-contractors which
has been delegated authority for the purpose of nego-
tiating and entering into collective-bargaining agree-
ments on behalf of its employer-members with the
bargaining representatives of their respective em-
ployees, including Engineers.
On or about June 1, 1975, AGC and Engineers
entered into a collective-bargaining agreement, effec-
tive June 1, 1975, through May 31, 1980, which con-
tained, inter alia, the following relevant provisions:
ARTICLE VIIll
Subcontractors and Other Employers
Section 1. Employers shall not contract any
work covered by this Agreement to be done at
the site of the construction, alteration, painting,
or repair of a building, structure or other work
to any person, firm or company who does not
have an existing labor agreement with the Union
covering such work.
Section 3. The Employer shall be responsible
and liable for payment of all sums of money
required by all terms of this, Agreement incurred
by any subcontractor. The parties agree the Ad-
ministrative Trust Office shall notify an Em-
ployer within thirty (30) calendar days of any
and/or all delinquent payments of monetary
contributions due the Trust Office by any and/
or all subcontractors used by said Employer.
The Employers further agree they will notify the
Administration Trust Office of any and,;or all
subcontractors (company name and address)
used by said Employer on any job and/or proj-
ect. If the Employer has notified the Trust Of-
fice of said subcontractors and the Trust Office
should fail to notify the Employer within the
specified time limitations, then the Employer
shall be relieved of all responsibility for the
subcontractor's delinquent payments to the ap-
plicable Trust Funds.
ARTICLE IX
Settlement of Disputes
Section 5. Should the parties involved fail to
comply' with the findings within five (5) days af-
ter such written notification by either party or
fail to comply with any of the provisions and/or
time limits established in this Article, unless mu-
tually agreed to extend such limits, then all
means of arbitration shall be considered ex-
hausted.
Either party may take such action as they deem
necessary to enforce the findings and/or time
limits and they shall not be considered in viola-
tion of any part of this Agreement.
ARTICLE X
Strikes and Lockouts
Section 1. Unless otherwise provided herein. it is
mutually agreed that there will be no strikes or
lockouts, or cessation of work by either party.
for the duration of this Agreement. All disputes
arising under this Agreement shall be submitted
to the procedures for the settlement of disputes
as provided in this Agreement and/or any ad-
dendum relating thereto.
At all times material herein, Engineers has contin-
ued, and is continuing, to give effect to article VIII
and article IX and has attempted to enforce article
VIll
by filing grievances againat AGC employer-
members pursuant to the master agreement.
Engineers, for example, filed a grievance on No-
vember 22. 1976. claiming that H. A. Anderson
Company. Inc.. violated the subcontractor clause bx
subcontracting work covered by the master agree-
ment to a subcontractor that did not have an existing
275
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
contract with Engineers covering such work, the sub-
contracting having occurred on an Anderson con-
struction project in Clackamas. Oregon. During the
12-month period of the project. there were substan-
tial periods of time when no Anderson unit employ-
ees repesented by Engineers were present on the job-
site.
C. Contentions of the Parties
The subcontracting proposals
The General Counsel, Respondent AGC, and
ABC all contend that the subcontracting provision in
the current AGC-Engineers
collective-bargaining
agreement is proscribed by Section 8(e) of the Act.
Specifically, General Counsel, Respondent AGC,
and ABC urge that the clauses here are secondary
and not privileged by the construction industry pro-
viso to Section 8(e) of the Act because they are at
substantial variance with the Supreme Court's dis-
cussion of the construction industry proviso in Con-
nell Construction Co., Inc. v. Plumbers and Steamfit-
ters Local Union No. 100, 421
U.S. 616 (1975).
Furthermore, General Counsel, Respondent AGC,
and ABC urge that, even if the subcontracting clause
herein is privileged by the proviso to Section 8(e), the
"self-help" provision in article IX of the collective-
bargaining agreement removes whatever protections
this clause might otherwise enjoy under the proviso.
Respondent Engineers contends initially that the
subcontracting clause in issue is a lawful "primary"
clause aimed at protecting unit work, with "unit"
being defined as the unit coextensive with the scope
of the multiemployer bargaining association. Beyond
this, Respondent Engineers contends that, even if the
subcontracting clause herein is secondary in nature,
it is nonetheless privileged by the construction indus-
try proviso to Section 8(e). Finally. Respondent En-
gineers urges that article IX of its current collective-
bargaining agreement with AGC is not a "self-help"
clause of the type or character which the Board has
found illegal under Section 8(e). Instead, Engineers
urges that the "enforcement" aspects of article IX are
aimed at the enforcement of the grievance-arbitra-
tion machinery in the contract rather than to the use
of economic action to force compliance with the sub-
contracting provision itself.
D. Discussion and ('onclusion.s
The subcontracting clause
Turning initially to the subcontracting clause itself.
we must determine whether the clause is primary or
secondary in nature. If the clause is primary, then
Section 8(e) 4 has no application whatsoever, and the
Union may engage in whatever actions it could
otherwise take absent the restraints of Section 8(e).
On the other hand, if the clause is secondary, then
Section 8(e) and the proviso come into play and limit
the procedures which may be utilized to obtain or
enforce the operation of the clause.
The subcontracting clause in the instant case pro-
vides that employers signatory to the Engineers-
AGC agreement shall not subcontract any jurisdic-
tionally relevant work to any subcontractor who does
not have an existing labor agreement with the Union
("Union" is defined by the parties as Engineers). By
its terms the clause herein permits performance of
unit work by employees covered under other labor
agreements with Engineers and not shown to be
within the bargaining unit covered by the agreement
between Respondents. Accordingly, the primary or
secondary character must be evaluated by an exami-
nation of whether the conditions of the clause are
limited to a requirement that subcontractors observe
"the equivalent of union wages, hours and the like." 5
Clearly, the clause herein does not limit subcon-
tracting to firms which pay the equivalent of the con-
tract wages, hours, etc., contained in the Engineers-
AGC agreement, but instead limits subcontracting to
"signatory" firms. This type of union "signatory"
clause is the type which we have consistently held is
not concerned with the preservation of primary unit
work, but one aimed at limiting the firms to those
which AGC members may subcontract.6 Therefore,
we find that article VIII herein is a secondary clause.
Having determined that the clause is secondary,
however, we must now consider the contentions of
the General Counsel, Respondent AGC, and ABC
that the clause is not protected by the construction
industry proviso to Section 8(e) because of the Su-
preme Court's decision in Connell Construction Co.,
Inc., siupra.
Sec. 8(e) provrides thatl
It shi;ll be an unfair labor practice for any labor organization and an,
enrplpoer to enter into an' conlracl
or agreemenl. express or implied.
Ahcrehy such emplo)er ceases or refrains or agrees to cease or refrain
from lhandling, using, selling. Iransporting or otherwise dealing with
ani, orf he products of any other emploer,
or to cease doing business
with .ian other person. anl
ana connltrauct or agreement entered into
heretofore or hereafter containing such an agreement shall be to such
tenteni unenforceable and void: Proided. That nothing in this subset-
ron (e) shall apply to an agreement between a labor organization and
an emploser in the construction industr) relating to the contracting or
suhbcontr.acting of uwork to he dcone at the site of the construction, alter-
atiln. painting. or rep;llr of a hbuilding structure, or otther swork ..
lm,
la
43?', lnternatlonal
Brotherhood ,t Electrimal Wo*rkers, 4'1, ('10
l)iD,,t
( ortnrl
riot!
(o.).
180 N L RB 420 ( 196).
" Heavl
HighwaY, Building and Constructlon Teamrrser
Committee for
Northernt ('a!thrnia. / B'.
Iet al (C alif-rnia Dumtp
ru' A Ow. ners A 1ol torion)L
227 NI RB 269 ( 19761 (thenl-Melmhber
.:alning and Member Jenkins dissent-
Inig iI part)
276
OPERATING ENGINEERS. LOCAL NO. 701
In Woelke & Romero Framing. Inc., companion
case to the instant one and also issued this day, we
concluded that the Supreme Court's Connell decision
construed the construction industry proviso to Sec-
tion 8(e) to permit subcontracting clauses such as the
one contained
in
the Engineers-AGC
contract
herein. For the reasons expressed in Woelke & Rome-
ro, supra, we find that the subcontracting clause in
the instant case is privileged by the construction in-
dustry proviso to Section 8(e).
Having determined that the subcontracting clause
herein is secondary but nonetheless privileged by the
proviso to Section 8(e), we now turn to the General
Counsel's, Respondent AGC's, and ABD's conten-
tions that the subcontracting clause is not privileged
because it allows for the enforcement of the clause by
other than judicial means.
Although Congress, by its enactment of the proviso
to Section 8(e), made lawful certain secondary claus-
es in the construction industry, it nevertheless made
clear that such agreements could not be enforced by
the threats, restraint, or coercion prohibited by Sec-
tion 8(b)(4).7 This reflected the sense of Congress
that, although such agreements could be lawful, the
existing law with respect to the nonjudicial enforce-
ment of secondary clauses should not be altered.
Thus, in the conference report accompanying the
1959 amendments, the committee set forth that "[t]he
proviso [to Section 8(e)] applies only to section 8(e)
and therefore leaves unaffected the law developed
under section 8(b)(4)." 8
When viewed in the context of the 1959 amend-
ments generally, it thus appears that, in limiting the
enforcement of valid "hot cargo" agreements in the
construction industry to judicial means only. Con-
gress did not intend that the proviso to Section 8(e)
could be utilized or interpreted so as to allow the
inclusion in collective-bargaining agreement provi-
sions which would have the forseeable effect of au-
thorizing 8(b)(4) violations.9
7Sec. 8(bX4XiiXB) provides in pertinent part:
lb) It shall be an unfair labor practice for a lahor organlation or its
agents-
(4) . .. (ii) to threaten. coerce, or restrain an, person engaged in
commerce or an industry affecting commerce. where in either case an
object thereof is:
(B) forcing or requiring any person to cease
. doing business
with any other person .
..
I. Leg. Hist. 943 (LMRDA. 1959).
Then-Senator Kennedy explained in a discussion of Sec. 8(e) that:
Agreements by which a contractor in the construction industr)
promising not to subcontract work on a construction site to a nonunion
contractor appear to be legal today. They will not be unlawful under
section 8(e).... Since the proviso does not relate to section 8(b)(4).
strikes and picketing to enforce the contracts excepted by the proviso
will continue to be illegal under section 8(b4). ...
It is not intended to change the law with respect to the judical en-
forcement of these contracts .... [ll Leg. Hist 1433(1 MRDA. 1959).
This Board, in a long line of decisions.'0 has con-
sistently adhered to the views expressed by Congress
with respect to the prohibition on economic action to
enforce secondary agreements under the construc-
tion industry proviso. The Board (with court ap-
proval) has thus held that clauses which purport to
authorize a union to employ economic action to en-
force secondary subcontracting provisions will serve
to remove whatever protections the secondary clause
would otherwise enjoy under the proviso to Section
8(e). '
The main focus of our analysis of self-help clauses
and their legality has been to determine the relation-
ship between the clause purporting to authorize eco-
nomic action and any secondary clauses limiting the
subcontracting of work. In other words, subcontract-
ing clauses and clauses authorizing the union to en-
gage in economic action independent of one another,
i.e., when a union's right to engage in economic ac-
tion specifically excludes a subcontracting clause
from its application, do not violate Section 8(e). It is
only when the Board determines that the parties in-
tended that the economic enforcement provisions ap-
ply to the subcontracting clauses that violations of
Section 8(e) will be found. 2 The Board has found
that "self-help" clauses remove otherwise proviso-
protected agreements from the scope of that proviso
even though the self-help and subcontracting provi-
sions are found in different articles of the agree-
ment,.3 even if the remedy the union seeks would be
the same if achieved by lawful judicial means,'4 and
although the means of enforcement reserved by the
union were not strictly limited to strikes or picket-
ing. 5
In the instant case, while the limitations on sub-
contracting are technically linked to the contract's
grievance-arbitration machinery, article IX nonethe-
less reserves to the Union the right to take "whatever
action it deems necessary" for enforcement at any
In Alusts egon BrilAlaers t nion Z5, Bricklayers, WMasons and Plasterers In-
ternationtrl (nion cf .4merica (.4Fl. (IO0), (Greater Muskegon General (Con-
rraiit·ors .4in
J 152 NLRB 360 ( 1965): Ers-Hokin Corporation. 154 Nl.RB
839 (1965); Dimreo Construtrion (Co. supra, General Teamsters. Chauffeurs.
l areh,,lluentn and Helpers. l.'al
982. Internatronal Brotherhood iif Team-
tierv, (C'hauifurs. u4ariehouienmen and Helpers of America (J K
Barker
Iruking (Co.). 181 NL.RB 515 {1970); fresno. Madera, Aings and 7ulare
('unflit.s Building and C(onrtructlon Trades Council tGage Brothers Co
,nstrue
fnonl. 218 NLRB 39 1975). International Union of Operating Engineers. L~o-
a/l ,' 12. AFL CIO
(Robert
E Fulton), 220 NLRB 530 (1975).
c
See Muskegon Bricklavyers Union t5. supra. enfd. 378 F.2d 859 (6th Clr
1967); Etl-Hokin Corp., enfd. sub nom N L.R B v. International Brotherhood
of Electrical Workers. A FL- CIO and its Local Union No 769. 405 F.2d 159
(9th Cir. 1968).
2 General Teamsters. Chaufjfurs. Warehousemen and Helpers, Local 982,
supr a
13International Union of Operating Engineers, Local U nion No 12 (Robert
E Fulton), supra.
Muskegon Bricklayers Lnion #5, supra.
Fresno. .Uadera. Kings and Tulare Counties Trades Council, supra
277
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
step of the grievance procedure or for a violation of
the applicable time limits for fringe benefit contribu-
tions. Furthermore, while article X, section 1, gener-
ally provides for no strikes, it is limited by the lan-
guage "unless otherwise provided herein." Article IX,
in turn, allows for whatever action deemed necessary
for enforcement with the understanding that such ac-
tion shall "not be considered in violation of any part
of this agreement." (Emphasis supplied.)
Taken together, articles IX and X compel the con-
clusion that strikes or other economic action which
would otherwise be prohibited under article X are
allowed under article IX as an "action deemed neces-
sary" by the parties to enforce the grievance-arbitra-
tion procedure. Further, it is clear that a dispute aris-
ing
under
the
article
VIII
restrictions
on
subcontracting would be submitted to the grievance-
arbitration procedures for settlement. If one party
subsequently failed to comply with the settlement,
the other party, under article IX, is accorded the
right to take "any action deemed necessary" to en-
force the settlement.
As noted above, Respondent Engineers contends
that any economic action that the Union may choose
to employ is not strictly to enforce the subcontract-
ing provision in article VIIIl,
but is instead action
taken to enforce the findings and/or time limits
grounded in the grievance-arbitration provision. En-
gineers in effect argues that a violation of Section
8(e) is avoided here because the Union has not re-
served the use of economic force with respect to the
subcontracting clause per se, but has reserved the
right to take self-help as it relates to the grievance-
arbitration provision.
The grievance-arbitration procedure, however, is
simply an agreed-upon method for the resolution of
disputes arising under specific provisions of the con-
tract between the parties. As such, it is necessarily
connected to the contract provisions which are the
source of the disputes submitted for resolution. We
therefore hold that the immediate object of a self-
help clause (here, the grievance procedure) will not
serve to obscure the underlying dispute which gives
rise to a claim of liability (in this case, the enforce-
ment of a secondary clause). The effect of holding to
the contrary would be to insulate self-help clauses (as
applied to secondary provisions) through the device
of the grievance procedure. Read together, articles
VIII, IX, and X sanction economic action to insure
compliance with the subcontracting provisions of ar-
ticle VIII. This result serves to remove article VIII
from the protection it would otherwise enjoy under
the proviso to Section 8(e). Recalling that in its en-
actment of the proviso to Section 8(e) Congress in-
tended that agreements privileged by that proviso be
enforced only through lawsuits, it is clear that if the
underlying claim giving rise to liability under article
IX, section 5, is rooted in a secondary clause the fact
that there is an intermediate stage before the Union
may resort to economic action does not alter the fact
that the contract allows the Union to employ "non-
judicial acts of a compelling or restraining nature,
applied by way of concerted self help" 6 for the en-
forcement of a secondary provision. Accordingly, we
find that article VIIIl of the 1975-80 AGC-Engineers
agreement is violative of Section 8(e) of the Act.'7
THE REMEDY
Having found that Respondents have engaged in
unfair labor practices, we shall order them to cease
and desist therefrom and to take certain affirmative
action to effectuate the purposes of the Act.
Upon the basis of the foregoing findings of fact
and upon the entire record in this proceeding, we
make the following:
CONCLUSIONS OF LAW
I. The Oregon-Columbia Chapter, The Associated
General Contractors of America, Inc., is an associa-
tion of employers engaged in commerce within the
meaning of Section 2(6) and (7) of the Act.
2. International Union of Operating Engineers,
Local No. 701, AFL-CIO, is a labor organization
within the meaning of Section 2(5) of the Act.
3. By entering into, maintaining, and giving effect
to self-help provisions applicable to article VIII of
their 1975-80 collective-bargaining agreement, Ore-
gon-Columbia Chapter, The Associated General
Contractors of America, Inc., and International
Union of Operating Engineers, Local No. 701, AFL-
CIO, violated Section 8(e) of the Act.
4. The above unfair labor practice is an unfair la-
bor practice affecting commerce and the free flow of
commerce within the meaning of Section 2(6) and (7)
of the Act.
ORDER
Pursuant to Section 10(c) of the National Labor
Relations Act, as amended, the National Labor Re-
lations Board hereby orders that:
A. Respondent Oregon-Columbia Chapter, The
lb Local Union No. 48, Sheet Metal Workers International Assn. v. Hardy,
332 F.2d 682 (5th Cir. 1964).
Member Murphy emphasizes that all five Board Members, including
her dissenting colleague, agree that the actual use of economic action to
enforce a clause protected by the construction industry proviso under Sec.
8(e) violates the Act.
278
OPERATING ENGINEERS. LOCAL NO. 701
Associated General Contractors of America, Inc..
Portland, Oregon, its officers, agents. successors, and
assigns, shall:
1. Cease and desist from entering into, maintain-
ing, giving effect to, or enforcing the self-help portion
of article IX, section 5, insofar as it is applied to the
subcontracting clause, article VIIl, found in Respon-
dents' collective-bargaining agreement, to the extent
found unlawful herein.
2. Take the following affirmative action designed
to effectuate the policies of the Act:
(a) Post at its business offices and mail to its em-
ployer-members
copies
of the attached
notice
marked "Appendix A." 18 Copies of said notice, on
forms provided by the Regional Director for Region
19, after being duly signed by an authorized repre-
sentative of Respondent AGC, shall be posted and
mailed immediately upon receipt thereof, and those
posted shall be maintained for 60 consecutive days
thereafter, in conspicuous places, including all places
where notices to members and employees are cus-
tomarily posted. Reasonable steps shall be taken by
Respondent AGC to insure that said notices are not
altered, defaced, or covered by other material.
(b) Notify the Regional Director for Region 19, in
writing, within 20 days from the date of this Order,
what steps Respondent AGC has taken to comply
herewith.
B. Respondent International Union of Operating
Engineers, Local No. 701, AFL CIO, Portland, Ore-
gon, its officers, agents, and representatives, shall:
1. Cease and desist from entering into, maintain-
ing, giving effect to, or enforcing the self-help portion
of article IX, section 5, insofar as it is applied to the
subcontracting clause, article VIIIll, found in Respon-
dents' collective-bargaining agreement, to the extent
found unlawful herein.
2. Take the following affirmative action designed
to effectuate the policies of the Act:
(a) Post at its business offices and meeting halls
copies of the attached notice Marked "Appendix
B." 19 Copies of said notice, on forms provided by the
Regional Director for Region 19, after being duly
signed by an authorized representative of Respon-
dent Engineers, shall be posted immediately upon re-
ceipt thereof and maintained by it for 60 consecutive
days thereafter, in conspicuous places, including all
places where notices to members are customarily
posted. Reasonable steps shall be taken by Respon-
dent Engineers to insure that said notices are not al-
tered, defaced, or covered by any other material.
(b) Notify the Regional Director for Region 19, in
writing, within 20 days from the date of this Order,
what steps Respondent Engineers has taken to com-
ply herewith.
CHAIRMAN FANNING. dissenting:
I agree with the finding that the Supreme Court
decision in Connell construed the construction indus-
try proviso to permit subcontracting clauses in the
context of a collective-bargaining relationship as in
this case. However, for reasons stated in mv dissent-
ing opinion in Musklegon Bricklavers Union #5,
Bricklavemrs,
Ma
.son.s
andt
Pl.asterers International
Union
f A.4,meric
(,4FL CIO) (Greater Mluskegon
General (Contractors A.ssociation). 152 N LRB 360
(1965), I dissent from the finding that the subcon-
tracting clauses are outside the protection of the pro-
viso because of self-enforcement provisions. Accord-
ingly. I would dismiss the complaint.
In the event tht thth, Order is enforced hb a judgment of a U nited
Stiles ( ourN of Appeals. the words in the notice reading "Posted bh Order
of the N;tional i abor Relations Board" shall read "Posted Pursuant to a
Judgment of the IUnited States Court of* Appeals Enforcing an Order of the
Natllona l .Labor Relations Board
#See In
18. tulr
APPENDIX A
NOTI(E F To EMPI.OY
EFS AND MENIMBtRS
PosrIED BY ORDER OF rHll
NTIONAI.
LABOR RELAlIONS BOARD
An Agency of the United States Government
WE. wil.i
NOI
enter into, maintain, give effect
to, or enforce that portion of article IX, section
5, permitting "such action as [deemed] neces-
sary," to the extent that such action is author-
ized to maintain, to give effect to, or enforce the
subcontracting clause, article VIIIl, of the collec-
tive-bargaining agreement between Oregon-Co-
lumbia Chapter. The Associated General Con-
tractors of America. Inc., and International
Union of Operating Engineers, Local No. 701,
AFL-CIO, and to the extent that article IX, sec-
tion 5, violates Section 8(e) of the National La-
bor Relations Act.
OREGON-COI.LUMBIA
CHAPTER,
ASSO(IAIED
GENERAL CONTRA(CTORS OF AMERICA. IN(,.
APPENDIX B
NOTICE To EN1PI OYFFS AND MEMBFRS
POSTED BY ORDER OF THt
NATIONAL LABOR REl.ATIONS BOARD
An Agency of the United States Government
WE WILL. NOT enter into, maintain, give effect
to, or enforce that portion of article IX, section
5, permitting "such action as [deemed] neces-
sary," to the extent that such action is author-
279
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ized to maintain, to give effect to, or enforce the
subcontracting clause, article VIII, of the collec-
tive-bargaining agreement between Oregon-Co-
lumbia Chapter. The Associated General Con-
tractors of America, Inc.. and International
Union of Operating Engineers, Local No. 701,
AFL-CIO, and to the extent that article IX, sec-
tion 5, violates Section 8(e) of the National La-
bor Relations Act.
INTI ERNA I IONAL
UNION
01
OPERAI ING
ENGjNEERS. LOCAL No. 701, AFL CIO
280