Aeronautical Indus. Dist. Lodge 91 of the Int'l Ass'n of MacHinists & Aerospace Workers v. United Technologies Corp., Pratt & Whitney

87 F. Supp. 2d 116, 2000 U.S. Dist. LEXIS 2113, 2000 WL 272307
CourtDistrict Court, D. Connecticut
DecidedFebruary 18, 2000
DocketCiv.A.3:99CV1827 (JCH)
StatusPublished
Cited by3 cases

This text of 87 F. Supp. 2d 116 (Aeronautical Indus. Dist. Lodge 91 of the Int'l Ass'n of MacHinists & Aerospace Workers v. United Technologies Corp., Pratt & Whitney) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Aeronautical Indus. Dist. Lodge 91 of the Int'l Ass'n of MacHinists & Aerospace Workers v. United Technologies Corp., Pratt & Whitney, 87 F. Supp. 2d 116, 2000 U.S. Dist. LEXIS 2113, 2000 WL 272307 (D. Conn. 2000).

Opinion

OPINION

HALL, District Judge.

Aeronautical Industrial District Lodge 91 of the International Association of Machinists and Aerospace Workers, AFL— CIO (“the Union”) brings this action against United Technologies Corporation, Pratt & Whitney (“Pratt”), alleging that Pratt’s proposed restructuring violates the parties’ collective bargaining agreement (“CBA”) in two respects. First, the Union claims that Pratt’s plans to transfer work out of Connecticut violate Letter 22 of the CBA, which letter provides that Pratt will make “every effort” to keep certain work within the bargaining unit. The Union also claims that Pratt’s plan to transfer all but 100 bargaining unit employees out of its North Haven facility before the expiration of the CBA violates its implied covenant of good faith and fair dealing. The case was tried to the court on January 10 and January 14, 2000, and final post-trial submissions were received on February 1, 2000.

Based upon the following findings of fact and conclusions of law, the court finds for the Union on its claim that Pratt failed to make “every effort” to keep work within the bargaining unit and against it on its claim that Pratt breached the implied covenant of good faith and fair dealing. 1

FINDINGS OF FACT

The Parties. Pratt manufactures and repairs jet engines and their component parts for about 370 major customers, mostly airlines, around the world. Pratt has two main divisions: OEM, which manufactures and sells new jet engines, compo *119 nents and parts; and Engine Services, which overhauls jet engines and repairs them and their component parts. The business of Engine Services, which encompasses parts repair work, has been growing steadily over the past few years. It made a $61 million profit in 1998 and a $106 million profit in 1999. It is projected to be the key part of Pratt’s profit plan going forward. All of this work, with the exception of minor repairs done at the Cheshire facility, is moving to locations outside of Connecticut pursuant to a restructuring plan announced by Pratt in August 1999.

The Union is a bargaining unit represented by District 91 and affiliated local lodges made up of production and maintenance employees at Pratt’s Connecticut facilities, including workers located in and around East Hartford, Middletown, North Haven, Cheshire, Manchester and Rocky Hill. 2

The Current Collective Bargaining Agreement. The parties have had a collective bargaining relationship for over 50 years. Their current collective bargaining agreement (“CBA”) is in effect from October 8, 1998 through December 2, 2001.

The CBA includes the following relevant provisions. Article 1, entitled “Management Functions,” provides:

It is recognized that in addition to other functions and responsibilities, the Company has and will retain the sole right and responsibility to direct the operations of the Company and in this connection to determine the number and locations of its plants; the product to be manufactured; the types of work to be performed; the assignment of all work to employees or other persons ... unless otherwise herein provided.

Article 27 details the procedural requirements that Pratt has agreed to follow if it intends “to close a plant or transfer a business unit, department, cell, or any part of an operation.” A minimum of six months notice is required, unless there are “extreme business conditions.” Once notice is given, the Union has a 45-day period in which to “meet and confer” with Pratt to attempt to change Pratt’s position. Article 27 also provides: “The final decision regarding closing a plant or transferring a business unit rests solely with the Company.”

Article 7 provides for mandatory arbitration of grievances, with the exception of grievances arising under Articles 1 and 27.

The CBA includes thirty-six Letters of Agreement, which embody various agreements between the Union and Pratt. These Letters are an integral part of the CBA. Letter 22, entitled “Workplace Guarantees and Subcontracting,” states in relevant part:

The Company agrees during the life of this Agreement that it will continue to employ bargaining unit members at its facilities in East Hartford, Middletown, North Haven and Cheshire.
The Company will make every effort to preserve the work that is presently and normally manufactured by employees covered by Article 2 of this Agreement. Therefore, it is not the intent of the Company to use subcontractors for the purpose of reducing or transferring work that is presently and normally manufactured by employees in the bargaining unit nor to place such work in Maine or Georgia, except when ...

*120 As Pratt’s Vice President for Human Resources and Organization testified, Letter 22 includes promises concerning moving work and subcontracting as well as a promise to preserve work normally and presently performed by Article 2 employees. Letter 22 expressly provides that “disputes concerning workplace guarantees and subcontracting are not subject to the grievance procedure including arbitration.” 3 Differences that arise over such issues are to be “referred to and discussed by the Executive Steering Committee” (“ESC”) at its next regularly scheduled meeting. 4 In referring differences under Letter 22 to the ESC, the parties did not provide that the ESC is empowered to make any decisions as to whether Pratt has violated any terms of the contract, nor does it establish any procedure for conducting hearings, voting or otherwise determining disputes. Most significantly, the CBA does not provide that decisions rendered by the ESC regarding workplace guarantees or subcontracting are final and binding. Letter 22 does not provide that the parties exclude judicial resolution of disputes that arise under Letter 22.

The 1998 Negotiations. Prior to commencement of negotiations for the 1998 CBA, Pratt’s parent company, United Technologies Corporation (“UTC”), acquired two companies engaged in parts repair manufacturing work: Interturbine’s Flight Repair Group, located in Dallas and Singapore; and Howmet, located in Texas, Oklahoma and North Haven. The How-met North Haven facility became known as Advanced Refurbishment Operation (ARO). The employees in that facility eventually became part of the bargaining unit represented by District 91, although they started at a lower wage and had a longer wage progression than other bargaining unit members. Pratt planned to move the turbine airfoil repairs work (“ART”), consisting of 188 bargaining unit jobs, from its main plant in North Haven into the Howmet plant.

Negotiations for the 1998 CBA began on September 22, 1998, approximately two months earlier than usual. These negotiations occurred in a positive climate: bargaining unit employment levels had risen significantly over the prior three years and 1998 was one of the most profitable years in Pratt’s history.

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87 F. Supp. 2d 116, 2000 U.S. Dist. LEXIS 2113, 2000 WL 272307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aeronautical-indus-dist-lodge-91-of-the-intl-assn-of-machinists-ctd-2000.