American Steel Erectors, Inc. v. Local Union No. 7, International Association of Bridge, Structural, Ornamental & Reinforcing Iron Workers

Local Union No. 7, International Association of Bridge, Structural, Ornamental & Reinforcing Iron Workers (Union) (defendant), negotiated collective-bargaining agreements on behalf of steel-erection contractors (signatory contractors) that employed Union workers. Under the collective-bargaining agreement, the signatory contractors agreed to pay Union workers a minimum wage. American Steel Erectors, Inc. and other nonunion steel contractors (nonunion contractors) (plaintiffs) were not required to pay workers a minimum wage and thus had an advantage over signatory contractors because the nonunion contractors could submit lower bids for erection contracts. The Union created and administered a subsidy program to help the signatory contractors compete for contracts. As per the collective-bargaining agreement, the subsidy program was funded by deductions from Union-member paychecks. The Union collaborated with the signatory contractors to identify which steel projects to target and bid on. The nonunion contractors filed suit against the Union under the Sherman Act and the Labor Management Relations Act (LMRA), claiming that the Union conspired to shut the nonunion contractors out of the competitive bidding process and pressured companies, via picketing and threats, to hire only Union workers for steel-erection jobs. The Union moved for summary judgment dismissing the nonunion contractors’ claims. The district court granted the motion, concluding that the Union was statutorily exempt from antitrust liability and that the Union’s subsidy program did not violate the LMRA. The nonunion contractors appealed.