Ace Electrical Contractors, Inc. v. International Brotherhood Of Electrical Workers, Local Union Number 292

414 F.3d 896
CourtCourt of Appeals for the Eighth Circuit
DecidedJuly 14, 2005
Docket04-1505
StatusPublished
Cited by10 cases

This text of 414 F.3d 896 (Ace Electrical Contractors, Inc. v. International Brotherhood Of Electrical Workers, Local Union Number 292) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ace Electrical Contractors, Inc. v. International Brotherhood Of Electrical Workers, Local Union Number 292, 414 F.3d 896 (8th Cir. 2005).

Opinion

414 F.3d 896

ACE ELECTRICAL CONTRACTORS, INC.; National Electrical Contractors Association, Minneapolis Chapter, Appellees,
v.
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL UNION NUMBER 292, A.F.L.-C.I.O., Appellant.

No. 04-1505.

United States Court of Appeals, Eighth Circuit.

Submitted: November 15, 2004.

Filed: July 14, 2005.

Richard L. Kaspari, argued, Minneapolis, MN (Terry R. Yellig, Washington, DC, filed a brief amicus curiae on behalf of International Brotherhood of Electrical Workers, AFL-CIO), for appellant.

Paul J. Zech, argued, Minneapolis, MN (Brian T. Benkstein, Minneapolis, MN, on brief), for appellee.

Before MURPHY, HANSEN, and MELLOY, Circuit Judges.

HANSEN, Circuit Judge.

The question presented is whether Minnesota's public policy against discrimination in employment on the basis of age, Minn.Stat. § 363A.08 Subds. 1, 2 (Supp.2003), prohibits a negotiated employee age ratio in a collective bargaining agreement that requires 1 out of every 5 electrical workers in a unionized shop to be 50 years of age or over. The district court1 concluded that the age ratio requirement cannot be enforced because it violates the clearly defined public policy articulated in the Minnesota Human Rights Act ("MHRA"), Minn.Stat. §§ 363A.01-363A.41 (Supp.2003). We affirm the judgment of the district court.

I.

In September 2002, Ace Electrical Contractors, Inc. ("Ace") terminated two workers as part of a planned reduction-in-force, and both were over the age of 50. The International Brotherhood of Electrical Workers, Local Union Number 292, A.F.L.-C.I.O. ("Local Union"), the local chapter of the labor organization that represents employees in the electrical trade, filed a grievance against Ace, asserting that the terminations violated the age ratio mandated by their collective bargaining agreement ("CBA"). The CBA provides as follows:

As a means of caring for the older employees and to promote general economic progress, in all shops employing four (4) or more Employees, every fifth (5th) Journeyman Wireman, if available, shall be fifty (50) years of age or older. Referrals and layoffs for reduction-in-force shall conform to this age ratio, in accordance with Section 4.15(b).

(Appellant's App. at 69, CBA Section 5.08.) Section 4.15(b) of the CBA states, "The age ratio clause in the Agreement calls for the employment of an additional Employee or Employees on the basis of age," and requires the business manager to refer the first applicant on the register that satisfies the applicable age requirements. (Id. at 64 (emphasis added).) Ace's termination of two workers over 50 rendered it out of compliance with the CBA's required age ratio.

Ace rejected the grievance on the ground that the age ratio requirement violates the MHRA. The MHRA makes it an unfair employment practice for either a labor organization or an employer to discriminate with regard to privileges of employment "because of ... age." Minn.Stat. § 363A.08 Subds. 1, 2. Further, the MHRA states that the prohibition against unfair employment practices based on age "prohibits using a person's age as a basis for a decision if the person is over the age of majority." Minn.Stat. § 363A.03 Subd. 2.2 A labor management committee deadlocked over whether the CBA provision violated the MHRA. Subsequently, the National Electrical Contractors Association, Minneapolis Chapter ("Minneapolis NECA") solicited an opinion from the Minnesota Department of Human Rights on the issue. Then-Commissioner Janeen Rosas issued a detailed opinion, stating that the CBA's age ratio violates the MHRA by requiring employment decisions, such as layoff, recall, or replacement, to be based upon age, contrary to the statute.

The parties then submitted the grievance to the Council on Industrial Relations for the Electrical Contracting Industry ("Council") for arbitration, and Ace requested that the age ratio language be removed from the CBA in light of the Commissioner's opinion that it violates the MHRA. In February 2003, the Council concluded, without discussing the MHRA, that Ace had violated the terms of the CBA by not following the age ratio provisions. The Council awarded lost wages and benefits to the two employees.

In April 2003, the parties received another letter from the Department written by a compliance service officer. This letter reaffirmed the Department's position that the CBA's age ratio requirement violates the MHRA and offered suggestions for replacing the age ratio language.

Ace and the Minneapolis NECA filed suit in state court to vacate the Council's award enforcing the CBA's age ratio requirement. The Local Union removed the action to federal court pursuant to the Labor Management Relations Act, 29 U.S.C. § 185 (2000). The plaintiffs then moved for summary judgment, including Commissioner Rosas' opinion that the age ratio requirement violates the MHRA as well as a more recent affidavit from the Department's then-Commissioner Velma J. Korbel, again confirming that the Department's consistent position has been and remains that the age ratio provision is inconsistent with the MHRA's prohibition against discrimination on the basis of age. The Local Union responded with a 1976 letter from the United States Department of Labor and a 1980 letter from the Equal Employment Opportunity Commission ("EEOC"), both stating that the CBA's age ratio requirement does not offend the federal Age Discrimination in Employment Act ("ADEA"), 29 U.S.C. § 621-634, which is designed to limit discriminatory practices against older workers. The Local Union argued that the MHRA should be construed consistently with the federal ADEA's prohibition of age discrimination.

The district court granted summary judgment for Ace and the Minneapolis NECA, and vacated the Council's award. The district court concluded that the CBA's age ratio requirement violates the well-defined public policy of the MHRA, which strictly requires that an employer cannot make any employment decision based on an employee's age. Subsequent to the district court's opinion in this case, the Supreme Court of the United States confirmed the EEOC's understanding of "age" for purposes of the federal ADEA. The Court held that the ADEA is intended to protect older persons and does not prohibit granting additional benefits that favor older workers. See Gen. Dynamics Land Sys., Inc. v. Cline, 540 U.S. 581, 600, 124 S.Ct. 1236, 157 L.Ed.2d 1094 (2004). The Local Union appeals, arguing that the Supreme Court's interpretation of "age" under the federal ADEA should apply equally in the context of the MHRA.

II.

We review de novo a district court's grant of summary judgment, as well as its interpretation of state law and the terms of a contract. Centric Jones Co. v. City of Kearney, 324 F.3d 646, 648-49 (8th Cir.2003).

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