Aeronautical Industrial District Lodge 91 of The International Association of Machinists & Aerospace Workers, AFL-CIO v. United Technologies Corp.

230 F.3d 569
CourtCourt of Appeals for the Second Circuit
DecidedOctober 26, 2000
DocketDocket No. 00-7168
StatusPublished
Cited by13 cases

This text of 230 F.3d 569 (Aeronautical Industrial District Lodge 91 of The International Association of Machinists & Aerospace Workers, AFL-CIO v. United Technologies Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aeronautical Industrial District Lodge 91 of The International Association of Machinists & Aerospace Workers, AFL-CIO v. United Technologies Corp., 230 F.3d 569 (2d Cir. 2000).

Opinion

JOHN M. WALKER, Jr., Chief Judge:

Defendant-appellant United Technologies Corporation, Pratt & Whitney Division (hereinafter “Pratt” or “the Company”) appeals from two decisions of the United States District Court for the District of Connecticut (Janet C. Hall, District Judge): (1) the January 6, 2000, denial of the Company’s motion to dismiss the claim by plaintiff-appellee Aeronautical Industrial District Lodge 91 (hereinafter “the Union”) that Pratt’s proposed transfer of certain work outside the bargaining unit would violate the collective bargaining agreement, see Aeronautical Indus. Dist. Lodge 91 v. United Tech. Corp., CIV. A. No. 3:99-CV-1827 (JCH) (D.Conn. Jan. 6, 2000) (order denying motion to dismiss) (“Aeronautical I ”); and (2) the February 18, 2000, opinion and order prohibiting the Company from transferring such work until it makes every reasonable effort to preserve work within the unit, see Aeronautical Indus. Dist. Lodge 91 v. United Tech. Corp., 87 F.Supp.2d 116 (D.Conn.2000) (“Aeronautical II ”).

We conclude that: (1) the district court had subject matter jurisdiction to entertain the Union’s suit; (2) the “every effort” clause in the collective bargaining agreement constitutes an enforceable obligation that the Company failed to meet; and (3) notwithstanding the general limits on the power of federal courts to issue injunctions in labor disputes, the district court had jurisdiction to issue an injunction against the Company under the circumstances of this case. Accordingly, we affirm Judge Hall’s orders denying the Company’s motion to dismiss and subsequently enjoining the Company from transferring certain work outside the bargaining unit until it makes every reasonable effort to preserve that work within the unit.

BACKGROUND

In 1998, the Union and the Company entered into their current collective bargaining agreement (“CBA”), which covers several thousand production and maintenance employees in Connecticut for the period October 8, 1998 through December 2, 2001. The CBA contains several provisions relevant to this case:

Article 1 provides that “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 location of its plants ... [and] the assignment of all work to employees or other persons ... unless otherwise hereinafter provided.” Article 27 provides that the Company will give the Union six months’ “notice of its intent to close a plant or transfer ... any part of an operation” and will “meet and confer” with the Union concerning any such decision, but that “[t]he final decision regarding closing a plant or transferring a business unit rests solely with the Company.”
Article 7 provides for arbitration of disputes but expressly exempts disputes arising under Articles 1 and 27.

[574]*574In addition, the CBÁ incorporates various letters of agreement, including Letter 22, which provides 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 [various Connecticut locations].
The Company will make every effort to preserve the work 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....
Any disputes concerning workplace guarantees and subcontracting are not subject to the grievance procedure including arbitration. If a difference arises over [such issues], it will be referred to and discussed by the Executive Steering Committee [composed of high-level Union and Company representatives] at their next regularly scheduled meeting.

Several aspects of the parties’ collective bargaining history during the 1990s are relevant to this appeal. In 1991, the parties added Article 27 to the contract, but the Company insisted that decisions under that article be non-arbitrable. In emergency negotiations in 1993, the parties agreed to language concerning workplace guarantees and subcontracting. Representatives of the Company insisted that disputes arising under these provisions be non-arbitrable, but in return assured Union officials that the Union had “other avenues” for enforcing these provisions. In 1995, the parties adopted Letter 23, the predecessor to the current Letter 22, whose provisions were based largely on earlier proposals and language concerning job security. Finally, in 1998, the parties reenacted the provisions of Letter 23 as Letter 22 without making any changes relevant to this lawsuit. At the same time, the Company rejected the Union’s proposal that decisions under Letter 22 be made arbitrable.

In August 1999, Pratt announced that it was implementing a major restructuring that would include the permanent transfer of production work related to the repair of aircraft engine parts from Company facilities in North Haven and East Hartford, Connecticut, to facilities in Texas, Oklahoma, and Arkansas. The Company sought to “eliminate excess floor space, reduce costs and streamline operations” and thereby reduce its perceived competitive cost disadvantage. At the time of the announcement, this repair work was being performed by 507 bargaining unit employees working in Pratt’s facilities in North Haven and East Hartford. The Union invoked the “meet and confer” provisions of Article 27, but Pratt refused to change its decision.

On September 16, 1999, the Union filed the instant action pursuant to § 301 of the Labor Management Relations Act, 29 U.S.C. § 185, seeking an injunction and a declaration that the proposed transfer violated the CBA. The Company filed a motion to dismiss. On January 6, 2000, Judge Hall denied the motion, holding primarily that: (1) the court had subject matter jurisdiction to resolve this work-transfer dispute; and (2) the court had the power to provide injunctive relief. See Aeronautical I, slip op. at 20, 28. A bench trial was held on January 10 and 14.

On February 18, 2000, Judge Hall issued an opinion and order in which she: (1) held that the Company’s plan to transfer work out of Connecticut violated the CBA because Letter 22 imposed a contractual obligation to make every effort to preserve the work done by Union members and the Company had not met this obligation; and (2) entered a permanent injunction prohibiting the Company from transferring bargaining unit work out of state during the life of the current CBA “unless and until Pratt makes every reasonable effort to [575]*575preserve that work within the ... bargaining unit.” Aeronautical II, 87 F.Supp.2d at 136. This appeal followed.

Both the district court and a prior panel of this court denied the Company’s motion to stay the injunction pending appeal. Before this panel, Pratt has renewed its motion for a stay of the injunction and has requested in the alternative a limited stay to allow'the relocation of certain bargaining unit work to Oklahoma for several months while a substantial piece of machinery is transferred from one Connecticut plant to another. The Union opposes this motion.

DISCUSSION

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230 F.3d 569, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aeronautical-industrial-district-lodge-91-of-the-international-association-ca2-2000.