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1991
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91_261a
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NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being
done in connection with this case, at the time the opinion is issued. The
syllabus constitutes no part of the opinion of the Court but has been prepared
by the Reporter of Decisions for the convenience of the reader. See United ______
States v. Detroit Lumber Co., 200 U. S. 321, 337.______ ___________________
SUPREME COURT OF THE UNITED STATES
Syllabus
BUILDING & CONSTRUCTION TRADES COUNCIL OF THE METROPOLITAN DISTRICT v. ___
ASSOCIATED BUILDERS & CONTRACTORS OF MASSACHUSETTS/RHODE ISLAND, INC., ET AL.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIRST CIRCUIT
No. 91-261. Argued December 9, 1992 - Decided March 8,
1993 (Ftnote. *) (Ftnote. *)
Following a lawsuit over its failure to prevent the pollution of Boston Harbor,
petitioner Massachusetts Water Resources Authority (MWRA) - the state agency
that provides, inter alia, sewage services for eastern Massachusetts - was ___________
ordered to clean up the Harbor. Under state law, MWRA provides the funds for
construction, owns the sewage-treatment facilities to be built, establishes
all bid conditions, decides all contract awards, pays the contractors, and
generally supervises the project. Petitioner Kaiser Engineers, Inc., the
project manager selected by MWRA, negotiated an agreement with petitioner
Building and Construction Trades Council and affiliated organizations (BCTC)
that would assure labor stability over the life of the project, and MWRA
directed in Specification 13.1 of its solicitation for project bids that each
successful bidder must agree to abide by the labor agreement's terms.
Respondent organization, which represents nonunion construction industry
employers, filed suit against petitioners, seeking, among other things, to
enjoin enforcement of Bid Specification 13.1 on the grounds that it is pre-
empted under the National Labor Relations Act (NLRA). The District Court
denied the organization's motion for preliminary
____________________
*) Together with No. 91-274, Massachusetts Water Resources Authority et al. *) ______________________________________________
v. Associated Builders & Contractors of Massachusetts/Rhode Island, Inc., et _________________________________________________________________________
al., also on certiorari to the same court.____
I II BUILDING TRADES COUNCIL v. ASSOCIATED BUILDERS ____
Syllabus
injunction, but the Court of Appeals reversed, holding that MWRA's intrusion
into the bargaining process was pervasive and not the sort of peripheral
regulation that would be permissible under San Diego Building Trades Council _________________________________
v. Garmon, 359 U. S. 236, and that Bid Specification 13.1 was pre-empted under _______
Machinists v. Wisconsin Employment Relations Comm'n, 427 U. S. 132, because __________ ______________________________________
MWRA was regulating activities that Congress intended to be unrestricted by
governmental power.
Held: The NLRA does not pre-empt enforcement by a state authority, acting as_____
the owner of a construction project, of an otherwise lawful prehire
collective-bargaining agreement negotiated by private parties. This Court has
articulated two distinct NLRA pre-emption principles: ``Garmon pre-emption'' ______
forbids state and local regulation of activities that are protected by S7 of
the NLRA or constitute an unfair labor practice under S8, while ``Machinists __________
pre-emption'' prohibits state and municipal regulation of areas that have been
left to be controlled by the free play of economic forces. These pre-emption
doctrines apply only to state labor regulation, see, e.g., Machinists, 427 ___________ _________________
U. S., at 144. A State may act without offending them when it acts as a
proprietor and its acts therefore are not tantamount to regulation or
policymaking. Permitting States to participate freely in the marketplace is
not only consistent with NLRA pre-emption principles generally but also, in
this case, promotes the legislative goals that animated the passage of the
NLRA's S8(e) and S8(f) exceptions regarding prehire agreements in the
construction industry. It is undisputed that the Agreement between Kaiser and
BCTC is a valid labor contract under SS 8(e) and (f). In enacting the
exceptions, Congress intended to accommodate conditions specific to the
construction industry, and there is no reason to expect the industry's
defining features to depend upon the public or private nature of the entity
purchasing contracting services. Absent any express or implied indication by
Congress that a State may not manage its own property when pursuing a purely
proprietary interest such as MWRA's interest here, and where analogous private
conduct would be permitted, this Court will not infer such a restriction.
Pp. 5-14.
935 F. 2d 345, reversed and remanded.
BLACKMUN, J., delivered the opinion for a unanimous Court.