TWENTY-SIXTH ANNUAL REPORT - National Labor Relations Board

Representation Cases 47
(3) "Hot Cargo" Clauses
Section 8(e) of the act, which became effective November 13, 1959,27
makes it an unfair labor practice for any union and employer, except
in certain aspects of the construction and the apparel and garment
industries," to enter into a "hot cargo" agreement—an agreement
whereby the employer agees to cease or refrain from handling the
products of any other employer, or to cease doing business with any
other person 29 It also provides that any contract "entered into heretofore
or hereafter containing such an agreement shall be to such extent
unenforcible and void" In three cases during this fiscal year,"
the Board had occasion to consider for the first time the effect of a
"hot cargo" clause upon a contract as a bar to a petition not involving
the construction or garment industries In each of these cases, the
"hot cargo" clause involved was held to remove the contract as a bar,
although in one case the contract was executed before the enactment
of section 8 (e) 21 and in two cases the contracts contained "savings"
clauses 82
In the first of these cases, Pilgrim Furniture Co, Inc '33 a Board
majority 34 held that a contract containing a "hot cargo" clause—
providing that upon notice from the union the employer would not
pm chase materials from any company which has a bona fide laboi
dispute with the union—was no bar to a petition, although it was
executed before the enactment of section 8(e) and contained a "savings"
clause 35 The majority reasoned that to hold such a contract a
bat would be "giving force and effect to such clauses despite the exp.
ess statutmy language that they are unenforcible and void" In
ejecting the contention that since 8(e) invalidates a conti act only to
the extent it contains a "hot cargo" clause its remaining provisions
should be deemed a bar, the majority pointed out that such an argument
would be equally applicable to contracts containing invalid
union-security provisions, but that the Boat d has consistently held
such invalid union-security agreements no bar since its decision in the
Hager Hinge case,3fl and expiessly rejected this argument in the
Sec 8(e) was added by the Labor-Management Reporting and Disclosure Act of 1950,
enacted Sept 14, 1859, and became effective 80 days thereafter
=These exceptions are contained in the provisos to the section
For the unfair labor practice aspects, see the discussion, below, pp 140 and 142
le Pilgrim Furniture Co, Dui, 128 NLRB 910, American Feed Ca, 129 NLRB 821,
Calorator Mfg Corp, 129 NLRB 704
in Pilgrim Furniture Co , lac, above
gg Pilgrim Furniture Co, lac, above, American. Feed Co, aboie But see Food Monier,
Ise, 130 NLRB No -18, which rmeised the Fag; sm case after the fiscal 3 eaf
gg Above
84 Former Chairman Leedom and Member Fanning dissenting
fig The clause provided that in the event any Federal or State law or regulation or final
decision of any court or board having jurisdiction affects any provision or practice of the
contract, the contract shall be amended to compli therewith, others% lee the contract shall
continue in full force and effect
C Hager d Sons Hinge Mfg Co , 80 NLRB 163 (1948)