Alyeska Pipeline Service Co. v. International Brotherhood of Teamsters, Local 959

557 F.2d 1263, 94 L.R.R.M. (BNA) 3252, 1977 U.S. App. LEXIS 14017, 81 Lab. Cas. (CCH) 13,169
CourtCourt of Appeals for the Ninth Circuit
DecidedApril 1, 1977
DocketNo. 76-2896
StatusPublished
Cited by8 cases

This text of 557 F.2d 1263 (Alyeska Pipeline Service Co. v. International Brotherhood of Teamsters, Local 959) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alyeska Pipeline Service Co. v. International Brotherhood of Teamsters, Local 959, 557 F.2d 1263, 94 L.R.R.M. (BNA) 3252, 1977 U.S. App. LEXIS 14017, 81 Lab. Cas. (CCH) 13,169 (9th Cir. 1977).

Opinion

BURNS, District Judge:

Defendant-union appeals the issuance of a permanent injunction by the district court. The injunction enforced an arbitrator’s award which prohibited pipeline project picketing in Alaska.

Jurisdiction of the district court was based on Section 301 of the Labor Management Relations Act of 1947, as amended (29 U.S.C. § 185). Our jurisdiction is based on 28 U.S.C. § 1291.

FACTS

Alyeska Pipeline Service Company (Alyeska), a consortium of eight oil companies, is the contractor responsible for building the Alaska pipeline project. Alyeska entered into a comprehensive collective bargaining agreement with the International Brotherhood of Teamsters, a number of other international unions covering work and occupations relevant to the project, and the local unions affiliated with those organizations having geographical jurisdiction over the Trans-Alaska Pipeline System (TAPS) Project. Appellant, Local 959 of the Teamsters’ Union (Local 959), is one of the signatory affiliated local unions. This agreement, entitled the Trans-Alaska Pipeline System Project Agreement (TAPS Agreement), became effective on April 29, 1974. After this date, the employees of Chicago Bridge and Iron (CBI) elected Local 959 as their bargaining agent.

An important component of the pipeline project is a terminal storage and tanker loading facility being constructed near Valdez, Alaska, to receive and transfer the oil arriving through the pipeline. Four thousand construction workers are employed at the 700 acre Valdez construction site.

On August 4, 1976, Local 959 set up a picket line on the Dayville Road, the only road leading to the Valdez terminal site. The picket line was first established at a point ten miles from the terminal site. Two days later it was moved to the main gate. The picketing resulted from a dispute over the assignment of certain “back-[1265]*1265haul” work between Local 959 and CBI, a subcontractor performing construction services at the Valdez site. During the course of the picketing, virtually all common carrier service to and from the Valdez site was stopped.

Alyeska filed a complaint in the district court seeking injunctive relief and damages for the breach of the TAPS Agreement’s no-strike provision.1 Application was made for a temporary restraining order and a preliminary injunction. On August 6, 1976, the district court (Chief Judge von der Heydt) issued a temporary restraining order prohibiting picketing at the terminal site.

On August 11,1976, Judge von der Heydt denied Alyeska’s motion for a preliminary injunction and vacated the temporary restraining order. Judge von der Heydt determined that the dispute underlying the picketing was not subject to the compulsory arbitration clause of the TAPS Agreement. Relying on Buffalo Forge Co. v. United Steel Workers of America, 428 U.S. 397, 96 S.Ct. 3141, 49 L.Ed.2d 1022 (1976), he therefore concluded that the general no-strike provisions of Article VII of the TAPS Agreement could not form the basis for a Boys Markets2 injunction.

Alyeska then instituted arbitration proceedings against Local 959 as authorized by Section 4 of Article VII of the TAPS Agreement for violation of the general no-strike provisions. Section 4 directs that the arbitrator shall hold a hearing within 24 hours of notification, the sole issue at the hearing is to be whether a violation of the no-strike provisions has occurred. Section 4 further provides that the arbitrator shall have no authority to consider any factor in justification, explanation, or mitigation of the alleged violation. The arbitrator’s award may be enforced by any court of competent jurisdiction, and rights inconsistent with this procedure are waived by the parties.

The arbitrator heard Alyeska’s complaint on August 13, 1976; At the conclusion of the hearing, the arbitrator found “that picketing has taken place at the site, that the picketing was sanctioned under the auspices of the Union, and that the effect was to shut off normal ingress and egress of supplies and materials to the project, and is therefore a disruptive activity within the meaning of Article VII of the Agreement.” The arbitrator specifically rejected Local 959’s claim that the picketing activity was exempt from the TAPS Agreement because it concerned a primary dispute between the union and CBI. He found that Article VII, Sections 1 and 3, of the TAPS Agreement prohibits all picketing at the project site. The arbitrator then ordered the union to stop picketing at the project site which included the Valdez terminal and Dayville Road the sole access road.

Alyeska then returned to district court (Judge Fitzgerald) where it obtained a tem[1266]*1266porary restraining order enforcing the arbitrator’s award. On August 18, 1976, Judge Fitzgerald granted Alyeska’s motion for a preliminary injunction, and the corresponding permanent injunction was issued August 19, 1976, from which this appeal is prosecuted.

DISCUSSION

I.

Judge von der Heydt, in the first district court proceeding, found that the dispute giving rise to the picketing was outside the scope of the TAPS Agreement. He, therefore, refused to grant injunctive relief in support of the no-strike provisions of Article VII because the underlying dispute was not arguably arbitrable. Appellant Local 959 contends this ruling denied the arbitrator jurisdiction to determine whether or not the picketing activity itself violated the TAPS Agreement.

Alyeska’s motion, which Judge von der Heydt denied, sought to enjoin the picketing activity until the anticipated arbitration proceedings were completed. Boys Markets, Inc. v. Retail Clerks Union, 398 U.S. 235, 90 S.Ct. 1583, 26 L.Ed.2d 199 (1970) provides the principal authority for issuing such an injunction. However, the Boys Markets injunction was properly denied because the court determined that the parties were not contractually bound to arbitrate the grievance giving rise to the picketing. Boys Markets, Inc. v. Retail Clerks Union, Id. at 254, 90 S.Ct. 1583.

Judge von der Heydt did not decide the issue of whether the picketing itself violated the no-strike provisions of the TAPS Agreement. Even if the picketing were a violation of the TAPS Agreement, and if it were within the scope of a binding arbitration clause, the court would be without power to issue an injunction pending the arbitrator’s decision because the dispute giving rise to the picketing is not subject to binding arbitration. Buffalo Forge Co. v. United Steelworkers of America, supra. The propriety of the union’s picket was an issue reserved for the arbitrator.

II.

The appellant next asserts that the arbitrator is without authority or jurisdiction to determine the validity of the picketing activity because the dispute which resulted in the picketing is outside the scope of the TAPS Agreement.

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557 F.2d 1263, 94 L.R.R.M. (BNA) 3252, 1977 U.S. App. LEXIS 14017, 81 Lab. Cas. (CCH) 13,169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alyeska-pipeline-service-co-v-international-brotherhood-of-teamsters-ca9-1977.