The American League of Professional Baseball ClubsDownload PDFNational Labor Relations Board - Board DecisionsDec 15, 1969180 N.L.R.B. 190 (N.L.R.B. 1969) Copy Citation 190 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The American League of Professional Baseball Clubs and Association of National Baseball League Umpires, Petitioner . Case I-RC-10414 December 15, 1969 DECISION AND DIRECTION OF ELECTION Upon a petition duly filed under Section 9(c) of the National Labor Relations Act, as amended, a hearing was held before Hearing Officer Francis V. Paone. The Hearing Officer's rulings made at the hearing are free from prejudicial error and are hereby affirmed. Upon the entire record in this case, including the briefs,' the National Labor Relations Board finds: 1. The Petitioner seeks an election in a unit of umpires employed by the American League of Professional Baseball Clubs (hereinafter called the Employer or the League). The Employer, while conceding the Board's constitutional and statutory power to exercise jurisdiction herein, nevertheless urges the Board, as a matter of policy, not to assert jurisdiction pursuant to Section 14(c) of the Act. The Employer is a nonprofit membership association consisting of 12 member clubs located in 10 states and the District of Columbia. Operating pursuant to a constitution adopted and executed by the 12 member clubs, the Employer is engaged in the business of staging baseball exhibitions and, with its counterpart the National League of Professional Baseball Clubs, constitutes what is commonly known as "major league baseball." The Employer currently employs, among other persons, the 24 umpires requested herein, and one umpire-in-chief. The Employer stipulated the following commerce data for the year 1968: (1) The business of the Employer was conducted substantially in interstate commerce. (2) The Employer's net share of the revenue derived from the national radio and television contracts of Major League Baseball (Game-of-the-Week, World Series and All-Star Game) was a sum in excess of $3,000,000. (3) Employer's member clubs derived revenue from gate receipts ranging from over $1,000,000 to over $2,250,000; and the League office's share of such total receipts was a sum in excess of $1,000,000. The Petitioner and the Employer filed briefs Amicus briefs generally supporting the Petitioner were received from baseball , football, hockey, and basketball players' associations , and from the AFL-CIO Amicus briefs supporting the Employer were received from The National League of Professional Baseball Clubs, and the National Hockey League, and the Employer filed 2 reply briefs All have been carefully considered, The Major League Baseball Players Association's request for a Board hearing on certain factual matters alleged in the briefs is hereby denied, as the Board has not relied on such disputed factual allegations in reaching its decision herein (4) The Employer expended a sum in excess of $500,000 in maintaining its staff of umpires, such sum including umpires' salaries, travel and other expenses. (5) The average revenue derived by each member club of the Employer from local radio and television contracts was a sum in excess of $900,000. (6) The total revenue derived by the Employer from concession sales was a sum in excess of $500,000, a substantial portion of which resulted from interstate purchases. (7) The total amount expended by the Employer for equipment and supplies was a sum in excess of $500,000, a substantial portion of which was made through interstate commerce. (8) The total amount expended by the Employer for travel (mostly interstate) was a sum in excess of $500,000. (9) In connection with working arrangements between the Employer's member clubs and their minor league affiliates, substantial portions of the operating expenses of such affiliates were paid by such clubs; and the total of all such payments was a sum in excess of $1,000,000. The Board's jurisdiction under the Act is based upon the commerce clause of the Constitution, and is coextensive with the reach of that clause.' In 1922 the Supreme Court in Federal Baseball Club of Baltimore v. National League of Professional Baseball Clubs, 259 U.S. 200, although characterizing baseball as a "business," ruled that it was not interstate in nature, and therefore was beyond the reach of the nation's antitrust laws. However, subsequent Supreme Court decisions appear to proceed on the assumption that baseball, like the other major professional sports, is now an industry in or affecting interstate commerce, and that baseball's current antitrust exemption has been preserved merely as a matter of judicial stare decisis.3 Thus, in both the Toolson4 and Radovichs decisions the Supreme Court specifically stated that baseball's antitrust status was a matter for Congress to resolve, implying thereby that Congress has the power under the commerce clause to regulate the baseball industry. Since professional football6 and boxing' have been held to be in interstate commerce and thus subject to the antitrust laws, it can no longer be seriously contended that the Court still considers baseball alone to be outside of interstate commerce. Congressional deliberations regarding the relationship of baseball and other professional team IN L R B v Jones and Laughlin Steel Corp . 301 U S I 'Cf Radovich v National Football League , 352 US 236, US v International Boxing Club of New York, Inc. 348 US 236, US v Shubert , 348 U S 222, Toolson v New York Yankees , Inc, 346 U S 356 'Toolson v New York Yankees. Inc, 346 U S 356 'Radovich v National Football League , 352 U S 236, wherein the Court said at 452 "Of course, the doctrine of Toolson and Federal Baseball must yield to any congressional action and continues only at its sufferance .Supra, fn 5 'U S v International Boxing Club of New York, Inc. 348 U S. 236 180 NLRB No. 30 AM. LEAGUE OF PROFESSIONAL BASEBALL CLUBS 191 sports to the antitrust laws likewise reflect a Congressional assumption that such sports are subject to regulation under the commerce clause.' It is, incidentally, noteworthy that these deliberations reveal Congressional concern for the rights of employees such as players to bargain collectively and engage in concerted activities.' Additionally, legal scholars have agreed,10 and neither the parties nor those participating as amici dispute, that professional sports are in or affect interstate commerce, and as such are subject to the Board's jurisdiction." Therefore, on the basis of the above, we find that professional baseball is an industry in or affecting commerce, and as such is subject to Board jurisdiction under the Act. Section 14(c)(1) of the National Labor Relations Act, as amended, permits the Board to decline jurisdiction over labor disputes involving any "class or category of employers, where, in the opinion of the Board, the effect of such labor dispute on, commerce is not sufficiently substantial to warrant the exercise of its jurisdiction...."'= The Employer and other employers contend that because of baseball's internal self-regulation, a labor dispute involving The American League of Professional Baseball Clubs is not likely to have any substantial effect on interstate commerce; and that application of the National Labor Relations Act to this Employer is contrary to national labor policy because Congress has sanctioned baseball's internal self-regulation. The Employer also contends that effective and uniform regulations of baseball's labor relations problems is not possible through Board processes because of the sport's international aspects. The Petitioner and other employee representatives contend, on the other hand, that Section 14(c) precludes the Board from declining jurisdiction, as any labor dispute arising in this industry will potentially affect millions of dollars of interstate commerce and have nationwide impact. They assert that baseball's self-regulation is controlled entirely 'See Hearings before the Subcommittee on Study of Monopoly Power of the House Committee on the Judiciary , 82d Cong, 1st Sess (1951), Hearings before the Antitrust Subcommittee of the House Committee on the Judiciary, 85th Cong , 1st Sess (1957) 'fd See also, HR 10378, which passed the House in 1958; and S 950, which passed the Senate in 1965 "Cf Hoffman , Is the NLRB Going to Play the Ball Game , 20 Lab L J 239 ( 1969), Krasnow and Levy, Unionization and Professional Sports, 51 Georgetown L J 749 (1963), Pierce, Organized Professional Team Sports and the Anti- Trust Laws , 43 Cornell L. Q 566 (1958) "Accord Musicians Union , Local No 6 v , Superior Court of Alameda County, Charles 0 Finley and Company , Inc. 73 Cal. Rep 201, 447 P 2d 313 (1968) "Section 14(c)(I) reads in full The Board , in its discretion , may, by rule of decision or by published rules adopted pursuant to the Administrative Procedure Act, decline to assert jurisdiction over any labor dispute involving any class or category of employers , where , in the opinion of the Board , the effect of such labor dispute on commerce is not sufficiently substantial to warrant the exercise of its jurisdiction . Provided , That the Board shall not decline to assert jurisdiction over any labor dispute over which it would assert jurisdiction under the standards prevailing upon August I, 1959 In no case involving professional baseball has jurisdiction been asserted by the Board under the standards prevailing upon August I, 1959 by employers, and therefore has not and will not prevent labor disputes from occurring in this industry. Additionally, it is submitted that Congressional intent does not preclude, and national labor policy requires, Board jurisdiction - for without a national forum for uniform resolution of disputes, the industry might be subject to many different labor laws depending upon the State in which any particular dispute arises. We have carefully considered the positions of the parties , and the amicus briefs, and we find that it will best effectuate the mandates of the Act, as well as national labor policy, to assert jurisdiction over this Employer. We reach this decision for the following reasons. Baseball 's system for internal self-regulation of disputes involving umpires is made up of the Uniform Umpires Contract, the Major League Agreement, and the Major League Rules, which provide, among other things, for final resolution of disputes through arbitration by the Commissioner. The system appears to have been designed almost entirely by employers and owners, and the final arbiter of internal disputes does not appear to be a neutral third party freely chosen by both sides, but rather an individual appointed solely by the member club owners themselves. We do not believe that such a system is likely either to prevent labor disputes from arising in the future, or, having once arisen, to resolve them in a manner susceptible or conductive to voluntary compliance by all parties involved." Moreover, it is patently contrary to the letter and spirit of the Act for the Board to defer its undoubted jurisdiction to decide unfair labor practices to a disputes settlement system established unilaterally by an employer or group of employers." Finally, although the instant case involves only umpires employed by the League, professional baseball clubs employ, in addition to players, clubhouse attendants, bat boys, watchmen, scouts, ticket sellers, ushers, gatemen , trainers, janitors, office clericals, batting practice pitchers, stilemen, publicity, and advertising men, grounds keepers and maintenance men. Congressional Hearings, supra, footnote 8. As to these other categories, there is no "self-regulation" at all. This consideration is of all the more consequence for of those employees in professional baseball whose interests are likely to call the Board's processes into play, the great majority are in the latter-named classifications. "That major league baseball 's internal rules of self- regulation have not prevented labor disputes from arising , and once arising produced amicable settlement , is evident from the fact that charges involving this Employer have been filed with the Board, and are currently pending disposition before the Regional Director for Region I The charge in Case I-CA-6581 was filed by the Association of National Baseball League Umpires, the Petitioner herein, on January 8 , 1969, alleging that the Employer discharged 2 umpires because of their participation in union organizational activities. 'The League argues that Board processes could be used to deprive the Commissioner of the necessary power to discipline umpires and players based upon mere suspicion of wrongdoing However , Board processes only prohibit discipline based upon Section 7 considerations. 192 DECISIONS OF NATIONAL LABOR RELATIONS BOARD We can find, neither in the statute nor in its legislative history, any expression of a Congressional intent that disputes between employers and employees in this industry should be removed from the scheme of the National Labor Relations Act.16 In 1935, 1947, and again in 1959, Congress examined the nation's labor policy as reflected in the National Labor Relations Act; and Congress has consistently affirmed the Act's basic policy, as expressed in Section 1, of encouraging collective bargaining by "protecting the exercise by workers of full freedom of association, self-organization, and designation of representatives of their own choosing." Nowhere in Congress' deliberations is there any indication that these basic rights are not to be extended to employees employed in professional baseball or any other professional sport. We do not agree that Congress, by refusing to pass legislation subjecting the sport to the antitrust laws when it considered the regulation of baseball and other sports under the antitrust statutes , sanctioned a governmentwide policy of "non-involvement" in all matters pertaining to baseball. Indeed, to the extent that Congressional deliberation on the antitrust question has reference to the issue before us, it indicates agreement that players ' rights to bargain collectively and engage in concerted activities are to be protected rather than limited." There is persuasive reason to believe that future labor disputes - should they arise in this industry - will be national in scope, radiating their impact far beyond individual State boundaries. As stated above, the Employer and its members are located and conduct business in 10 States and the District of Columbia. The stipulated commerce data establishes that millions of dollars of interstate commerce are involved in its normal business operations. The nature of the industry is such that great reliance is placed upon interstate travel. Necessarily, then, we are not here confronted with the sort of small, primarily intrastate employer over which the Board declines jurisdiction because of failure to meet its prevailing monetary standards. Moreover, it is apparent that the Employer, whose operations are so clearly national in scope, ought not have its labor relations problems subject to diverse state labor "Compare the following cases in which the Board has asserted jurisdiction over sports and entertainment enterprises : Celebrity Sports Center, 169 NLRB No 29 ( sports centers); Harrah 's Club, 150 NLRB 1702, enfd. 362 F.2d 425 (C.A. 9), cert denied 386 U S. 915 (gambling casinos ); Aspen Skiing Corp, 143 NLRB 707 (skiing facilities); Ray, Davidson and Ray, 131 NLRB 433 (sight-seeing tours ); The League of New York Theatres , 129 NLRB 1429 (theatres). Cf Walter A Kelley, 139 NLRB 744, wherein the Board declined jurisdiction over the horse racing industry, mainly because "Horse racing as it now exists is a State created monopoly, subject as such to extensive local regulations . Practically every individual working at a track . must be licensed by the State regulatory authorities Because of the important revenue derived from racing activities , State governments have a strong interest in insuring uninterrupted operations at race tracks. . Consequently, unless the hands of State authorities are tied , no labor dispute in this industry is likely to be permitted to last sufficiently long to interfere seriously with interstate commerce " These principles clearly do not apply to baseball. "Supra , fn 8 and 9. laws.' The Employer's final contention, that Board processes are unsuited to regulate effectively baseball's international aspects, clearly lacks merit, as many if not most of the industries subject to the Act have similar international features. Accordingly, we find that the effect on interstate commerce of a labor dispute involving professional baseball is not so insubstantial as to require withholding assertion of the Board's jurisdiction, under Section 14(c) of the Act, over Employers in that industry, as a class . As the annual gross revenues of this Employer are in excess of all of our prevailing monetary standards, we find that the Employer is engaged in an industry affecting commerce," and that it will effectuate the policies of the Act to assert jurisdiction herein. 2. The Employer at the hearing denied that the Petitioner was a labor organization within the meaning of Section 2(5) of the Act. The record shows, however, that the Petitioner is an organization in which employees19 participate, and which exists for the purpose of dealing with employers concerning wages and other conditions of employment. Accordingly, we find that the Petitioner is a labor organization within the meaning of Section 2(5) of the Act. 3. A question affecting commerce exists concerning the representation of certain employees of the Employer within the meaning of Sections 9(c)(l) and 2(6) and (7) of the Act.20 4. The Employer contends that the petition should be dismissed on the ground that the umpires sought to be represented are supervisors as defined in Section 2(11) of the Act. It is not contended that umpires have authority to hire, fire, transfer, discharge, recall, promote, assign , or reward. We think it equally apparent that umpires do not "discipline" or "direct" the work force according to the common meaning of those terms as used in the Act. The record indicates that an umpire's basic responsibility is to insure that each baseball game is played in conformance with the predetermined rules of the game. Thus, the umpire does not discipline except to the extent he may remove a participant from the game for violation of these rules. Testimony shows that after such a removal the umpire merely reports the incident to his superiors, "See Section 14(c)(2) of the Act. See also Krasnow and Levy, supra. fn 10 at 780 " Because of the interstate nature of such sports, it would seem more desirable to have the labor relations of this industry regulated by one federal law rather than a multitude of state laws and to have the disputes and problems settled by one administrative agency regardless of where these disputes arise " "Cf. El Paso Country Club, 132 NLRB 942 "The Board has determined , infra. that umpires, members of the Petitioner , are not supervisors "The Employer' s Motion to Dismiss the Petition on the grounds that a question concerning representation does not exist under Section 9(c) of the Act because the Employer has already recognized and is bargaining with the Petitioner , is hereby denied See General Box Company, 82 NLRB 678. AM. LEAGUE OF PROFESSIONAL BASEBALL CLUBS 193 and does not himself fine, suspend, or even recommend such action. As the final arbiter on the field, the umpire necessarily makes decisions which may favor one team over another, and which may determine to some extent the movements of various players, managers, and other personnel on the ball field. The umpire does not, however, direct the work force in the same manner and for the same reasons as a foreman in an industrial setting. As every fan is aware, the umpire does not - through the use of independent judgment - tell a player how to bat, how to field, to work harder or exert more effort, nor can he tell a manager which players to play or where to play them. Thus, the umpire merely sees to it that the game is played in compliance with the rules. It is the manager and not the umpire who directs the employees in their pursuit of victory.21 Accordingly, we find that the umpires are not supervisors, and thus the Employer's motion to dismiss on this ground is hereby denied. We further find that the following employees of the Employer constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act: All persons employed as umpires in the American League of Professional Baseball Clubs, but excluding all other employees, office clerical employees, guards, professional employees and supervisors as defined in the Act. [Direction of Election== omitted from publication.] MEMBER JENKINS , dissenting: My colleagues advance as a reason for asserting jurisdiction herein the absence of a Congressional intent to resolve labor disputes in baseball in a different manner from that established in the NLRA. In my opinion, the question is not whether Congress intended that disputes between employers and employees in the professional baseball industry should be resolved in the same or in a different manner from that established for other industries covered by the Act, but whether Congress, in enacting the NLRA, intended to include such disputes within the reach of the Board's jurisdiction at all. If any inference is to be drawn from "Cf. N.L R B. v, Security Guard Service , Inc., 384 F .2d 143 (C A 5), where the court stated " If any authority over someone else, no matter how insignificant or infrequent , made an employee a supervisor , our industrial composite would be predominately supervisory . Every order-giver is not a supervisor Even the traffic director tells the president of a company where to park his car " "In order to assure that all eligible voters may have the opportunity to be informed of the issues in the exercise of their statutory right to vote, all parties to the election should have access to a list of voters and their addresses which may be used to communicate with them . Excelsior Underwear Inc., 156 NLRB 1236; N. L.R.B v Wyman -Gordon Company, 394 U.S. 759. Accordingly , it is hereby directed that an election eligibility list, containing the names and addresses of all the eligible voters, must be filed by the Employer with the Regional Director for Region I within 7 days of the date of this Decision and Direction of Election . The Regional Director shall make the list available to all parties to the election. No extension of time to file this list shall be granted by the Regional Director except in extraordinary circumstances . Failure to comply with this requirement shall be grounds for setting aside the election whenever proper objections are filed. Congressional silence on the matter, a very compelling reason exists for nonassertion of jurisdiction. When the NLRA was first enacted in 1935, professional baseball enjoyed a unique and favored status in both the Nation's social and business community. Such status is evident in the following excerpts from the 1952 Congressional study devoted exclusively to baseball:13 Baseball is commonly called America's national pastime. Ever since its inception over 100 years ago, the game has held a favored position among the American people, both as a participant sport and as a spectator amusement. Until 60 years ago, baseball was the only team sport of any consequence on the American scene. In the intervening decades, other team sports such as football, basketball, and hockey have risen to importance but none have been able to supplant the position baseball has secured in the hearts of the public. Other sports flourish for a brief season and then sink to the background to await a rebirth of interest in the next season. Baseball, however, remains of public interest both in season and out. Whether it is June or December, the public is interested in the national game. Organized baseball has made important contributions to the public welfare in both peace and war . It has expended more than a million dollars to assist the American Legion junior baseball program . Each year the major leagues admit from 2 to 2 1/2 million boys and girls to games free of charge . Frequently, it plays exhibition games , the entire proceeds of which go to subsidize municipal recreation . During World War II, the major leagues alone contributed almost $2 million to the United Service Organization , the American Red Cross, and other service organizations. It also sponsored more than a billion dollars of sales of Government bonds at its parks and in special events , and sponsored frequent exhibition games and star appearances at Army and Navy camps. In many respects, professional baseball typifies the basic ideals of the American people . Fairness and clean competition are the passwords of the sport . It is the melting pot of men of all races, religions, and creeds .... The success of the individual player rests not on who he is or where he came from or what he believes. Rather it is measured by how he performs . The Horatio Alger stories in baseball have been many. Babe Ruth went from a Baltimore orphanage to fame and fortune; Bob Feller stepped from an Iowa farm to become one of the most famous pitchers of all times ; Ty Cobb came from an obscure town in Georgia to become "H. R Rep 2002, 82d Cong , 2d Sess. 7, 9, 10 194 DECISIONS OF NATIONAL LABOR RELATIONS BOARD a figure , honored and respected all across the Nation. Perhaps more pertinent to my views herein are the following excerpts from the same study:" . The basic assumption underlying our antitrust laws is that free competition is the best possible guaranty of an industry ' s progress and prosperity and that the general public will be best served thereby. To a large extent, that type of economic competition in the baseball industry is foreclosed by a comprehensive and reticulated system of rules and regulations to which all segments of organized baseball subscribe. baseball is a unique industry . Of necessity, the several clubs in each league must act as partners as well as competitors. The history of baseball has demonstrated that cooperation in many of the details of the operation of the baseball business is essential to the maintenance of honest and vigorous competition on the playing field . For this reason organized baseball has adopted a system of rules and regulations that would be entirely inappropriate in an ordinary industry. Whether fortuitous or otherwise, professional baseball ' s unique and favored status had already gained judicial approval long before enactment of the NLRA.25 It is irrefutable, therefore, that Congress in 1935 harbored no intent to include the labor relations of professional baseball within the reach of the Board's jurisdiction. And while the Supreme Court has since rejected the narrow conception of commerce on which Federal Baseball was premised , in large measure prior to any amendments to the Act," my colleagues point to no legislative history in the subsequent amendments to the Act which would support a legislative intent thereafter to include baseball 's labor relations within the reach of the Act. Indeed, it would appear that in the present posture , an amendment expressly including the baseball industry within the Act would be required to warrant the Board ' s assertion, of jurisdiction. My colleagues seek comfort for their decision herein from the expressions of Congressional intent favoring our assertion of jurisdiction contained in the legislative hearings on the numerous bills dealing with the antitrust aspects of baseball and other professional team sports which have been introduced in both branches of the Congress. The short answer, of course , is that none of these bills has been "H. R. Rep . 2002, supra at 228 , 229. These excerpts reflect the general observations made at page three of the Report that professional baseball has been for years a self-regulated industry and may be characterized in many respects as a monopoly. "See Federal Baseball Club of Baltimore, Inc. v . National League of Professional Clubs, 259 U.S. 200, holding that the business of professional baseball was not commerce. "See United States v. South-Eastern Underwriters Association . 322 U.S. 533 and cases discussed in Pierce, "Organized Professional Team Sports and the Anti-Trust Laws," supra at 566-569 enacted into law and they afford at best a very tenuous basis for the assessment of Congressional intent in 1935, or 1947, or 1959, particularly in the light of the potential legal obstacles to the Board's assertion of jurisdiction over baseball in the first instance. Even assuming in agreement with my colleagues that professional baseball is subject to the Board's jurisdiction, and further, that the Board has the discretion under Section 14(c)(1) of the Act to assert or decline jurisdiction,27 I am of the opinion that no compelling reasons exist for exercising that discretion to assert jurisdiction in the instant case. There is no showing that this industry is wracked with the kinds of labor disputes which are likely to constitute a burden on commerce. Nor am I satisfied that the majority's conclusion, that baseball's "commissioner" system for internal self-regulation of disputes is not likely to prevent such burden or disruption of commerce, constitutes a ground for our taking jurisdiction over the industry. Indeed, I question the propriety of prejudging baseball's arbitral system in this representation proceeding, particularly in view of the fact that the matter has not been litigated and in the absence of an issue which calls for a close scrutiny of the efficacy of that system based on facts spread on the record. In any event, the pendency of a single ULP charge , even assuming it arose as a direct result of the failure of baseball's arbitral system, is hardly ground for discrediting that system any more than it is for rejecting arbitration procedures in any industry. Moreover, my colleagues appear to shoot wide of the mark when they note that other employees, such as clubhouse attendants, bat boys, watchmen , scouts, ticket sellers , ushers, gatemen, trainers , janitors, grounds keepers and maintenancemen , are not covered by baseball's arbitral system. Unlike umpires, these employees appear to be directly employed by the individual baseball clubs and it appears that their labor relations would be so handled. While baseball players are likewise hired directly by the individual clubs, the entire league has an interest in the relations between the players and their employers because of the very nature of the game and the need to maintain competition . Thus, there is an urgent need for ultimately settling problems dealing with the players on a league level while no such need is apparent in the case of stadium -oriented employees. Furthermore , it appears from the record that some of the latter employees are already represented by labor organizations in single-employer units and presumably have their own dispute settlement procedures. Finally, there is no showing that any labor disputes of national importance exist among these employees. For the foregoing reasons I would dismiss the petition herein. "I do not read my colleague 's decision as holding or implying that the Board lacks such discretion. Copy with citationCopy as parenthetical citation