Allied Railing Corp. v. Shopmen's Local Union 455

426 F. Supp. 93, 94 L.R.R.M. (BNA) 2280
CourtDistrict Court, S.D. New York
DecidedNovember 11, 1976
DocketNo. 76 Civ. 4103
StatusPublished
Cited by1 cases

This text of 426 F. Supp. 93 (Allied Railing Corp. v. Shopmen's Local Union 455) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allied Railing Corp. v. Shopmen's Local Union 455, 426 F. Supp. 93, 94 L.R.R.M. (BNA) 2280 (S.D.N.Y. 1976).

Opinion

OPINION

WERKER, District Judge.

This is an action under section 301 of the Labor Management Relations Act, 29 U.S.C. § 185 (1970) in which plaintiff, Allied Railing Corporation (the “Company”) seeks a declaratory judgment arising out of a collective bargaining agreement entered into on July 26, 1973 (the “Agreement”) with the defendant, Shopmen’s Local Union # 455, International Association of Bridge, Structural & Ornamental Ironworkers, AFL-CIO (the “Union”).

Prior to the expiration of the Agreement no new collective bargaining agreement was reached and the contract was terminated by election of the Union as of June 30, 1975. Thereafter an eight month strike commenced, and the Company ultimately ceased operation of its business.

The dispute between the parties surrounds the alleged failure of the Company to make severance payments subsequent to the termination of the Agreement. In either November of 1975 or February of 1976,1 the Company advised the Union that it was discontinuing its operations, at which point the Union demanded that the Company make severance payments. Upon the failure of the Company to do so, the Union submitted the dispute for arbitration on March 19, 1976.

The pleadings and the Agreement itself reflect that Allied and the Union have been parties to collective bargaining agreements for many years. The members of the Union have served as employees in production and maintenance roles for the Company. Specifically, Union members were engaged in the production of metal products and also in maintaining machinery or performing other maintenance functions in Company shops..

The relief sought in the complaint is a stay of the arbitration presently scheduled for November 12, 1976 and a declaration both that the Agreement was voluntarily terminated on June 30,1975 and that Allied is not required to arbitrate grievances arising subsequent to the voluntary termination of the Agreement.

The Union has filed a cross-petition seeking the compelling of arbitration pursuant to section 4 of the United States Arbitration Act, 9 U.S.C. § 4 (1970), and simultaneously, a motion to dismiss the complaint and to compel arbitration of the dispute.

The provision concerning the payment of severance benefits calls in part for the payment of severance benefits upon the termination of the Company’s operations or removal of its operations a certain distance.2

[95]*95Whether or not there is an agreement to arbitrate is an issue for determination by the court, the duty to arbitrate being wholly contractual. 9 U.S.C. § 4. John Wiley & Sons, Inc. v. Livington, 376 U.S. 543, 84 S.Ct. 909, 11 L.Ed.2d 898 (1964); International Association of Machinists v. Oxco Brush Division of Vistron Corp., 517 F.2d 239, 242 (6th Cir. 1975); U.A.W. Local 125 v. International Telephone & Telegraph Corp., 508 F.2d 1309 (8th Cir. 1975); Oil Chemical Workers Union v. American Maize Co., 492 F.2d 409 (7th Cir.), cert. denied, 417 U.S. 969, 94 S.Ct. 3173, 41 L.Ed.2d 1140 (1974); Proctor & Gamble Independent Union v. Proctor & Gamble Manufacturing Co., 312 F.2d 181 (2d Cir. 1962). The right to severance pay cannot be termed “vested” unless the parties have agreed that such benefits would in fact vest. The Agreement provided in subdivision E of section 31 for the allocation of benefits between the Fund and the Company after the Company made contributions for two years even though the contract was for a two-year term. This alone, however, does not mean that the Company can be required to arbitrate disputes concerning severance pay subsequent to the termination of the Agreement. The Agreement fails to specify that the duty to arbitrate is preserved beyond the date of termination. In the absence of a specific provision of this kind the Company cannot be required to arbitrate at this point. International Association of Machinists v. Oxco Brush Division of Vistron Corp., supra; Local 58, United Rubber Workers v. Sun Products Corp., 521 F.2d 1286, 1287 (6th Cir. 1975) (per curiam); U.A.W. Local 125 v. International Telephone & Telegraph Corp., supra, at 1312. In Local 1251, U. A. W. v. Robertshaw Controls Co., 405 F.2d 29 (2d Cir. 1968 (en banc), the Second Circuit overruled an earlier decision, Zdanok v. Glidden Co., 288 F.2d 99 (2d Cir. 1961), in which the court had held that seniority rights survived beyond the term of a collective bargaining [96]*96agreement. The Second Circuit’s statement in Robertshaw in regard to seniority rights is apposite here as well:

“Seniority is wholly a creation of the collective agreement and does not exist apart from that agreement.”

Id. at 33. This thought was restated by the Second Circuit in Printing Specialties Local 447 v. Pride Papers Aaronson Bros. Paper Corp., 445 F.2d 361, 363 (2d Cir.) cert. denied, 404 U.S. 1001, 92 S.Ct. 564, 30 L.Ed.2d 553 (1971) where the court declared that:

“[A] contention, based on the supposition that contractual obligations somehow survived termination of the contract, would be unavailing in the light of our opinion in [Robertshaw] overruling [Zdanok].” [Citations omitted.]

The Union’s reliance on the Fourth Circuit’s decision in Local 358, Bakery Workers v. Nolde Brothers, Inc., 530 F.2d 548 (4th Cir. 1975), cert. granted, 425 U.S. 970, 96 S.Ct. 2165, 48 L.Ed.2d 793 (1976) does not strengthen its position. In Nolde the court determined that where a union has “accruable” rights such as severance pay benefits, and there is an agreement to arbitrate disputes concerning such benefits under the collective bargaining agreement, that the duty to arbitrate survives even after the term of the agreement. The Nolde court in support of its decision relied extensively on the Supreme Court’s per curiam reversal of the circuit court opinion reversing the district court decision in Piano Workers Union v. W. W. Kimball Co., 221 F.Supp. 461 (N.D.Ill.1963), rev’d, 333 F.2d 761 (7th Cir.), rev’d,

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426 F. Supp. 93, 94 L.R.R.M. (BNA) 2280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allied-railing-corp-v-shopmens-local-union-455-nysd-1976.