Virginian Railway v. System Federation No. 40

In 1927, the American Federation of Labor (AFL) formed a local union, System Federation No. 40 (the federation) (plaintiff) to represent the employees of the Virginian Railway (the railway) (defendant). In 1934, the federation demanded that the railway recognize the federation as the authorized representative of the railway’s employees. The federation requested the aid of the National Mediation Board (NMB), which had been formed under the Railway Labor Act. After holding an election, the NMB certified the federation as the authorized representative of the railway’s employees. After the railway refused to negotiate with the federation, the federation sued the railway in the United States District Court for the Eastern District of Virginia to compel the railway to recognize and negotiate with the federation. The federation argued that a 1934 amendment to the Railway Labor Act, which required railroads to “treat with” (recognize and confer with) certified union representatives, obligated the railway to negotiate with the federation. In response, the railway argued that this requirement was (1) not intended by Congress to be enforced, (2) not enforceable, since parties cannot be compelled to agree, and (3) not constitutional under the Fifth Amendment Due Process Clause. The district court ordered the railway to negotiate with the federation regarding rules, wages, and working conditions and prohibited the railway from creating a company union that would interfere with the federation. On appeal, the United States Court of Appeals for the Fourth Circuit affirmed the district court’s decree. The Supreme Court granted certiorari.