Amalgamated Transit Union v. Chicago Transit Authority

794 N.E.2d 861, 342 Ill. App. 3d 176, 276 Ill. Dec. 611, 2003 Ill. App. LEXIS 866
CourtAppellate Court of Illinois
DecidedJuly 3, 2003
Docket1-02-2725
StatusPublished
Cited by12 cases

This text of 794 N.E.2d 861 (Amalgamated Transit Union v. Chicago Transit Authority) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amalgamated Transit Union v. Chicago Transit Authority, 794 N.E.2d 861, 342 Ill. App. 3d 176, 276 Ill. Dec. 611, 2003 Ill. App. LEXIS 866 (Ill. Ct. App. 2003).

Opinion

PRESIDING JUSTICE O’BRIEN

delivered the opinion of the court:

Local 241 and Local 308 of the Amalgamated Transit Union (the Unions) brought an action to vacate an arbitration award interpreting a provision in their collective bargaining agreement with the Chicago Transit Authority (CTA) pertaining to the formula for calculating pension contributions for CTA employees serving as part-time officers of the Unions. Finding that the arbitrator had exceeded his authority under the collective bargaining agreement, the circuit court granted summary judgment for the Unions and vacated the arbitration award. The CTA appeals. We affirm.

Local 241 is the exclusive representative of a group of employees including, but not limited to, bus drivers employed by the CTA. Local 308 is the exclusive representative of a group of employees including, but not limited to, rapid transit operators employed by the CTA.

The Unions and the CTA are parties to a collective bargaining agreement for the term January 1, 1996, through December 31, 1999. The collective bargaining agreement incorporates a retirement plan for CTA employees that is funded by contributions from both the CTA and participating employees. The CTA and the participating employees contribute to the retirement plan at rates calculated by a percentage of each employee’s “compensation.”

Prior to 1990, a fixed-cap formula, known as Rule 14, provided that “compensation” for pension contribution purposes would be calculated as basically CTA pay plus 5%. Since 1990, the retirement plan eliminated references to the Rule 14 fixed-cap formula and provided that “compensation” for full-time and part-time Union officers would consist of the individual’s combined “total earnings” from the CTA and the Unions. The retirement plan also now provides that, for pension purposes, the “compensation” of a union member occupying a position with an International office shall not exceed the compensation of the highest paid officer of the Local.

In July 1996, a dispute arose between the Unions and the CTA over the interpretation of the term “total earnings” in the retirement plan as applied to part-time Union officers. The CTA claimed that a certain part-time Local 241 officer had retired with an excessively large pension allowance. The CTA contended that it requested certain documentation from the Union to investigate the matter, and when none was forthcoming, the CTA ceased making contributions to the retirement fund on the reported earnings of full-time and part-time officers of Local 241. When the parties were unable to settle the dispute, they agreed to arbitration.

The arbitrator ruled in relevant part as follows:

“[A] reasonable limit on ‘total earnings’ paid to individuals in part-time Union positions is required and will be imposed. However, no limit will be imposed on earnings prior to July 1, 1996.
*** Effective July 1, 1996, earnings for pension benefit purposes for individuals in part-time positions with the local Unions will be limited to the following, using the two options in Rule 14 as amended on April 21, 1980:
(a) For the period July 1, 1996, through April 30, 1998, the basic pay as computed under Rule 14, including the 5% adjustment representing average overtime and other pay credits plus up to an additional 20% over and above such base pay.
(b) Effective May 1, 1998, the basic pay as computed under Rule 14, including the 5% adjustment representing average overtime and other pay credits plus up to additional 10% over and above such base pay.
The 20% and 10% additional adjustments are not automatic entitlements. Any additional compensation over and above the basic pay, as defined above, up to the 20% and 10% additional limits, must be justified by adequate documentation showing payments by the Local Unions for CTA-related work performed for the Union. What constitutes ‘adequate documentation’ and ‘CTA-related’ work is referred to the parties for final determination.”

The parties were unable to agree about what constitutes “CTA-related work” and “adequate documentation” and asked the arbitrator for clarification. On January 12, 2001, the arbitrator answered that with respect to CTA-related work, the Unions had the burden of demonstrating that the activity for which retirement credit was sought was relevant to the CTA’s interests and concerns. With respect to the question concerning adequate documentation, the arbitrator ruled that the CTA was entitled to “reasonably substantive evidence as to the duration and nature of the Union work performed.”

The Unions subsequently filed an action to vacate the arbitration award. The circuit court found that the arbitrator had exceeded his authority and granted the Unions’ motion for summary judgment and vacated the arbitration award. The CTA brought a motion for reconsideration, which the court denied. The CTA filed this timely appeal.

Summary judgment is appropriate when, viewed in the light most favorable to the nonmoving party, the pleadings, depositions, and admissions on file reveal that no genuine issues of material fact exist and that the moving party is entitled to judgment as a matter of law. Ragan v. Columbia Mutual Insurance Co., 183 Ill. 2d 342, 349 (1998). The standard of review in cases involving summary judgment is de novo. Ragan, 183 Ill. 2d at 349.

An arbitrator’s award is presumptively valid (Hollister Inc. v. Abbott Laboratories, 170 Ill. App. 3d 1051, 1062 (1988)) and must be enforced if the arbitrator acted within the scope of his authority. American Federation of State, County & Municipal Employees v. State of Illinois, 124 Ill. 2d 246, 254 (1988). The United States Supreme Court has stated:

“[A]n arbitrator is confined to interpretation and application of the collective bargaining agreement; he does not sit to dispense his own brand of industrial justice. He may of course look for guidance from many sources, yet his award is legitimate only so long as it draws its essence from the collective bargaining agreement. When the arbitrator’s words manifest an infidelity to this obligation, courts have no choice but to refuse enforcement of the award.” (Emphasis added.) United Steelworkers of America v. Enterprise Wheel & Car Corp., 363 U.S. 593, 597, 4 L. Ed. 2d 1424, 1428, 80 S. Ct. 1358, 1361 (1960).

In deciding whether an award draws its essence from the collective bargaining agreement, the court determines whether the arbitrator limited himself to interpreting the collective bargaining agreement (Board of Education of Community High School District No. 155 v. Illinois Educational Labor Relations Board, 247 Ill. App. 3d 337, 345 (1993)); even where the award is based upon the arbitrator’s misreading of the contract, the court must uphold the award so long as the arbitrator’s interpretation is derived from the language of the contract. Polk Brothers, Inc. v. Chicago Truck Drivers, Helpers, & Warehouse Workers Union (Independent), 754 F. Supp. 608, 613 (N.D. Ill. 1990), aff’d, 973 F.2d 593 (7th Cir. 1992).

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794 N.E.2d 861, 342 Ill. App. 3d 176, 276 Ill. Dec. 611, 2003 Ill. App. LEXIS 866, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amalgamated-transit-union-v-chicago-transit-authority-illappct-2003.