Bureau of Labor Statistics, U.S. Department of Labor

LABOR LAWS AND DECISIONSSource: Monthly Labor Review, Vol. 9, No. 2 (AUGUST, 1919), pp. 231-237Published by: Bureau of Labor Statistics, U.S. Department of LaborStable URL: http://www.jstor.org/stable/41827609 .

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LABOR LAWS AND DECISIONS.

Labor Organizations Held Liable for Acts of Members.

A DECISION Circuit Court

of far-reaching of Appeals, Eighth

influence Circuit,

was handed on April

down 28

in of the

the Circuit Court of Appeals, Eighth Circuit, on April 28 of the

current year. The point in question was the liability of the United Mine Workers of America for destructive acts done by members of the union in 1914 in the Prairie Creek district of Arkansas. The case is entitled United Mine Workers of America et al. v. Coronado Coal Company et al., and is a continuation of a case that was before the court in 1916 under the title Dowd v. United Mine Workers of America (235 Fed. 1). The action was originally brought by Dowd as a receiver for the Coronado Coal Co. and eight other companies to recover damages resulting from conspiracy and combination in re- straint of interstate trade and commerce. The district court enter- tained demurrers and dismissed the case, but on appeal to the Circuit Court of Appeals it was held that there were sufficient grounds for proceeding with the trial on the complaints made.

In accordance with this decision the district court heard the case and found that the defendant organization with its local branches and officials had been guilty of the acts charged, and damages were assessed in the amount of $200,000. Inasmuch as the proceedings were had under the provisions of the Sherman antitrust law, this judgment was trebled ; and, following a subsequent request, the court below taxed the defendants with interest from the date of the destruc- tion of the property on which the action was based to the date of the judgment.

The defendant union appealed, submitting 184 assignments of error, but the decision of the court below was affirmed with the exception of the taxing of interest, which was held to have been improperly done, and the judgment was ordered reduced in this amount. Failure to reduce the judgment in this amount would result, the court held, in a new trial being granted.

It appears that the United Mine Workers of America is an unin- corporated labor union, embracing mine workers in the United States, Canada, and Mexico; that there are some 30 districts with numerous local unions; and that each district union has jurisdiction over tho local unions in its area, while the national organization has supcr-

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232 MONTHLY LABOR REVIEW.

visory jurisdiction over all. The fact that 28 local unions named as defendants and the district union, as well as the national organiza- tion, are unincorporated bodies was olYered as a reason why no action could be instituted against them as entities and therefore no process or judgment could bind them.

The court held that this had been decided in the Dowd case men- tioned above, and declined to consider the matter further. Other matters of practice were discussed, as the joinder of parties, the pro- duction of evidence, etc. Kecords and correspondence showing the scope and purpose of the organization were held to have been properly admitted as evidence and all technical matters were decided adversely to the contentions of the union. The liability of the executive board for the acts of the district officials and local unions was shown from publications of the .union as well as from the constitution of the national organization, and the court concluded that " the national organization has undoubtedly, under the constitution, supreme au- thority. The judgment, discretion, wisdom, and power of the entire organization are vested in the national organization; every member of a local union is a member of the national organization and a con- tributor to its funds."

The evidence disclosed the purchase of arms and ammunition by officers of the United Mine Workers of America, payment therefor by union funds, and their distribution to union members in the affected districts. Indictments and pleas of guilty of individual defendants, members of the local unions, were brought in as evidence, showing that unlawful acts had been approved and encouraged, and that the national organization and its officers had ratified various torts committed in the course of the strike. The whole purpose of the strike to destroy competition by men in union mines was shown, and reference was made to the decision of the district judge in another case involving the same organization (Hitchman Coal and Coke Com- pany v . Mitchell *), the purpose being to show the object of the mine workers to gain control of the coal mines of the country.

The facts revealed showed threats, personal violence, and murder; also the destruction of large amounts of property, including loaded cars, mine buildings and equipments, and residences occupied by workers who refused to join the union: and other acts of violence. Injunctions were disregarded and no effort was made by the national organization to prevent the unlawful acts committed locally. "On the other hand, strike benefits were paid, pensions allowed, court costs assumed, and every pet committed by those members of the district and local organizations approved by the entire organization." 1 202 Fed. 512; noted In U. B. Bureau of Labor Statistics Bulletin No. 152, p. 137. The decision of the

United States Supreme Court in the same case is reviewed in the Monthly Review for January, 1918, p. 146.

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MONTHLY LABOR REVIEW. 233

These facts were held by the court of appeals to be a sufficient ground for the finding of the court below that the organization as a whole was responsible, applying the principles of the law relating to conspiracy, and since the evidence was sufficient to show interference with interstate commerce, 75 per cent of the coal mined being shipped to customers outside of the State of Arkansas, the application of the Sherman Act was held to be approved.

Other complaints related to a refusal of the court below to direct a verdict in behalf of the defendants and the nature of the remarks made to the jury by the presiding judge during the period of its deliberations. Neither objection was found by the court to be well grounded, though Circuit Judge Hook dissented with regard to the latter point, holding that the judge had exceeded the proper bounds in his remarks. The opinion of the court, however, was to the effect that the treble judgment, amounting to $600,000, was properly assessed against the national organization, in view of its relation to its subordinate units and the membership generally. It was held also that the ratification of the tortious acts of' the members fixed this liability, regardless of the question of whether or not the acts committed were beyond the authority intended to be given by the constitution and by-laws of the union.

This case differs from that of Loewe v. Lawlor (208 U. S. 274, 28 Sup. Ct. 301), known as "The Hatters' Case," inasmuch as in that case individual members of unions were held responsible for the acts of the union because of their support of the union during the commission of the acts complained of, as well as subsequently. The present case corresponds to the famous Taff-Vale decision in which the British courts held union funds subject to process for the recovery of damages due to acts of the members of the union. The Taff-Vale decision led to the enactment of a law declaring labor

organizations not responsible in their collective capacity for the acts of their members. An attempt to secure the enactment of a similar

provision of law by the Legislature of Massachusetts was abandoned because of an adverse decision by the supreme judicial court of the State, to which the measure was referred for an opinion as to its constitutionality (In Ke Opinion of Justices, 98 N. E. 337).

The doctrine laid down in this decision is not novel, as a number of earlier cases had held that damages, not only actual but punitive, may be awarded where either a workman or an employer has been maliciously prevented from carrying on his work or business, with resulting loss; however, no case of equal importance has come before the courts of this country relating to this particular phase of the

subject of the rights and liabilities of labor organizations. The fact that the union was unincorporated adds to the interest in the case, since it has been a frequent complaint that the refusal of unions

3 5 * [535]

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234 MONTHLY LABOR REVIEW.

to incorporate was for the purpose of evading their legal responsi- bilities for their own acts and those of their constituent membership. An appeal is said to have been taken in this case to the Supreme Court of the United States, so that the final decision can not be said to have been reached. The case transcends in importance that of Hitchman Coal & Coke Co., already mentioned, and its final determination will be awaited with interest.

Labor Legislation of Chile.

THE reproduces annual bulletin

several recently laws relating

issued to by

labor. the labor

The office following

of Chile1 is a reproduces several laws relating to labor. The following is a

summary of the more important provisions of these laws: Nurseries for children . - By the law of January 8, 1917, every fac-

tory, shop, or industrial establishment employing 50 or more women over 18 years of age is required to provide a room especially furnished for the care of children under 1 year of age whose mothers are employed in the establishment.

Mothers may leave their work for periods aggregating one hour per day for the purpose of nursing their children, and, whatever may be the system of wage payment, no deduction from wages or earnings may be made for this absence.

Seats for employees. - Stores, bazaars, shops, mercantile ware- houses, and all similar establishments are required, by the law of November 25, 1914, to provide a sufficient number of chairs or seats for the use of clerks and employees.

In all such establishments clerks and employees must be given a lunch period of at least one hour and a half. The lunch hour ipay be staggered.

Sunday rest - The law of November 5, 1917, requires employers to allow their employees one full day's rest in seven. This day shall be Sunday, excepting in certain industries and occupations in which a cessation of work would work injury to the public or the establish- ment. When the day of rest is on a day other than Sunday, all employees may or may not be given the same day off. In the latter case, the schedule must be posted in the workrooms and office of each establishment, and may not be changed without a month's notice.

Employees may not be required to work from 9 p. m. on the day preceding, nor before 6 a. m. on the day following, a religious or national holiday.

Lahor in State railroad shops . - A law effective December 27, 1917, provides that all State-operated railroad workshops must be kept

* Boietin de la Oficina del Trabajo. No. 11, 1918, 317 pp. Santiag«. £536]

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MONTHLY LABOR REVIEW. 235

clean, well- ven tila ted, well-lighted, and well-floored, and in a condi- tion assuring the safety of life and health of the employees.

Injurious and toxic gases and dust must be immediately and directly conveyed to the exterior and not permitted to mix with the air in the shops. All working places must be made free from emana- tions proceeding from water-closets, drains, pits, and other sources of infection. The maintenance of bath and washrooms is obligatory.

Guards are required for all wheels, belts, gearings, and other dan- gerous apparatus. Dangerous and moving and revolving parts of machinery and apparatus must be provided with safety devices. wSteam, gas, and electric motors must be so placed as to be accessible only to those having charge of them. Stairways, platforms, and scaffolding, and overhead ways and bridges must be provided with guardrails, and pools, vats, and tanks containing corrosive or hot liquids must be inclosed by railings.

Persons employed in running telegraph or telephone wire at an elevation greater than 6 meters (19.7 feet) must be provided with safety belts with rope or chain to support or suspend them in case of accident.

Water gauges on locomotive boilers must be inclosed in heavy transparent glass tubes. On freight trains, equipped with automatic brakes, shelters inclosed by guardrails to prevent the falling of train- men must be provided.

In each railroad zone an ambulance car must be provided, equipped with all articles necessary for the treatment and transportation of persons injured in accidents. Hospitals must be established for the care and treatment of injured employees.

Ordinary hours of labor shall not exceed 10 per day, including 2 hours of rest at noon. Night work shall not exceed 10 out of 24 hours. All employees must be given 24 consecutive hours of rest once each week.

Engineers, firemen, and brakemen shall not ordinarily be permitted to work more than 10 hours per day, except in cases of accident or of delay in schedules. Double wages shall be paid for overtime.

The employment of boys under 12 years of age in railroad shops is prohibited. Young persons between the ages of 12 and 16 years may be employed subject to the following provisions: (a) Hours of work must not exceed eight per day, including two hours' rest period ; (b) night work is prohibited; (c) Sunday and holiday work is pro- hibited; (d) such persons must not be employed in the operation of

dangerous machinery (the oiling of moving machinery is especially prohibited), in the operation of saws, or in the manufacture of explo- sives; (e) if they are less than 15 years of age they must have in their

possession a certificate showing that they have completed their

primary schooling. £537]

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236 MONTHLY LABOR REVIEW,

The employment of females between the ages of 16 and 20 years on night, Sunday, or holiday work, or in dangerous or unhealthful work is prohibited. Eight hours constitute a day's work. Women may not be employed after midnight. They may not be employed during the four weeks preceding or the four weeks following childbirth, nor placed in charge of motors in operation, power-transmission appara- tus, or dangerous machinery.

State railroad retirement and benefit fund. - As provided by the law of May 10, 1918, the savings fund is reorganized as the State railroad retirement fund, the purpose of which is: (a) The general administra- tion of funds provided under existing laws,1 and all funds created by the voluntary deposits of State railroad employees; (b) the encourage- ment of voluntary savings; ( c ) the provision of a pension system, life and accident insurance, and employees' mutual societies; (d) the development of institutions for moral, social, and economic better- ment of employees and their families; and ( e ) the provision of a railroad sanitary service.

Generally speaking, all persons regularly employed a s clerks, skilled workmen, or laborers are required to become contributors to the fund. Those not so required may become voluntary contributors. The general fund shall, by annual appropriations, maintain a medical, pharmaceutical, and hospital service for employees and passengers.

Full retirement benefits are granted after 20 years of service, and proportional benefits to those who have been in the service over 5 years; those who have served 1 year but less than 5 years are entitled to the return of the amounts contributed plus the interest; those who have served less than 1 year, their contributions only.

Voluntary contributions to the benefit fund may be made, subject to withdrawal on sight, for a term or under special conditions. No interest is allowed on any sum under 1 peso (36.5 cents) or on sums on deposit less than 30 days. Interest shall not be less than 5 per cent per annum. Savings certificates, payable in full on date of issue or in installments, may be issued as a basis of constituting annuities of definite maturity values.

Voluntary contributions may be made, under certain conditions, for the purchase of annuities, on current accounts for the purchase of real estate, for the constitution of a retirement fund, and in any other way considered an incentive to economy and saving.

Married women and minors shall be considered as free administra- tors of their own affairs, as regards their deposits and payments in the benefit fund.

» See Monthly Review, February, 1918, p. 43&

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MONTHLY LABOR REVIEW. 237

Extra benefits may be granted to voluntary contributors who become incapacitated for work through industrial accidents or occupational diseases.

The amount of funeral expenses allowable is to be fixed each year at an amount not less than 150 pesos ($54.75) nor more than 300' pesos ($109.50). Claim for such expenses must be made within one year from the date of death. In case funeral expenses become pay- able to a hospital or mutual association, only the actual expenses may be paid.

Supplementary annuities may be granted to widows or widowers and their dependent children under IS years of age, the supplementary annuity not to exceed 25 per cent of the regular annuity, and the total amount not to exceed 360 pesos ($131.40).

Special allowances may be made to persons under 18 years of age while attending school. Such allowances may not exceed 120 pesos ($43.80) per year for each minor, nor 360 pesos ($131.40) per year for one family, whatever the number of minors. Families receiving annuities amounting to over 2,200 pesos ($803), either from the fund or directly from the railroad, are not included in this provision. The fund is under no obligation to continue such grants.

The fund is to provide for the voluntary retirement of contributors at 55, 60, and 65 years of age. These annuities may be acquired by one payment or by periodical payments which may be either as alienated or reserved capital. In the latter case the contributions, without interest or bonus, are payable to the dependents at the death of the purchaser. No immediate annuity may be purchased which yields less than 120 pesos ($43.80) per annum or more than 1,200 pesos ($438).

The benefit fund may contract for life insurance, subject to the rigid application of the insurance regulations, and, until a national mortality table is calculated, the rates and values are to be based upon tables in use by the national life insurance companies. Collec- . tive insurance may be effected with employees7 mutual companies, or reinsurance of a portion of their risk may be assumed by the fund.

127971°- 19 18 [539]

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