Android Industries Belvidere LLC v. UAW Local 1268

CourtDistrict Court, N.D. Illinois
DecidedDecember 20, 2018
Docket3:18-cv-50055
StatusUnknown

This text of Android Industries Belvidere LLC v. UAW Local 1268 (Android Industries Belvidere LLC v. UAW Local 1268) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Android Industries Belvidere LLC v. UAW Local 1268, (N.D. Ill. 2018).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS Android Industries, Inc., ) ) Plaintiff, ) ) v. ) Case No: 18 C 50055 ) UAW Local 1268, ) ) Defendant. ) Judge Frederick J. Kapala ORDER Plaintiff’s application and motion to vacate arbitration award [1] is denied. Defendant’s motion to enforce arbitration award [11] is granted. The arbitration award is enforced and this case is closed. STATEMENT Plaintiff, Android Industries, Inc. (“Android”) has filed an application and motion pursuant to Section 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185, seeking to vacate the November 15, 2017 Arbitration Award issued by an arbitrator selected pursuant to the parties’ collective bargaining agreement (“CBA”). In response, defendant, UAW Local 1268 (“Union”), has moved to enforce the arbitration award. For the reasons that follow, Android’s application and motion is denied and the Union’s motion is granted. I. FACTS The material facts are not in dispute. Android and the Union were parties to a CBA governing the terms and conditions of the employment of bargaining unit employees at Android’s Bel-II suspension plant in Belvidere, Illinois. On December 23, 2016, due to a change in vehicle production lines at Chrysler’s Belvidere Assembly Plant, Android closed its Bel-II suspension plant and terminated all bargaining unit employees. Prior to the plant closing, the parties entered into a Closing Agreement which provided that “[e]mployees actively at work who are released as a direct result of the plant closing or on lay off or medical leave status as of the date of the plant closing will be eligible for vacation pay pursuant to the Collective Bargaining Agreement.” On January 3, 2017, the Union filed a grievance asserting that Android violated Article 15, Section 5 of the CBA, which deals with unused vacation, by failing to pay bargaining unit employees their unused 2017 vacation pay which they had earned and accrued based on hours worked in 2016. Android denied the grievance taking the position that the bargaining unit employees were not entitled to 2017 vacation pay which had been earned and accrued in 2016 because they were no longer actively employed by Android during the calendar year 2017. An arbitration hearing was held on August 15, 2017, before arbitrator Jeanne M. Vonhoff. On November 15, 2017, the Arbitrator issued a written Opinion and Award sustaining the Union’s grievance. The Arbitrator began by delineating the relevant provisions of the CBA. Article 15, Section 1 of the CBA is styled “vacation” and provides: Vacation is a benefit calculated and earned yearly based on the amount of hours a Team Member worked in the prior calendar year. . . . In the year of hire, vacation will be pro-rated as follows, and able to be used upon achieving seniority: When (Hired) Vacation Days January - March 5 -days April - June 4 - days July - September 2 - days October - December 0 - days Based on the employee’s seniority during the vacation year, active full-time Team Members shall be eligible for: When Vacation Days Year of 1st Anniversary 10 Days (80 hrs.) Year of 2nd Anniversary 15 Days (120 hrs.) Year of 10th Anniversary 17 Days (136 hrs.) Year of 20th Anniversary 20 Days (160 hrs.) Article 15, Section 2, is styled “accruing vacation days” and provides: All eligible team members accrue vacation beginning January 1 and ending December 31 (the calendar year). . . . Vacation hours are accrued per the following formula: Vacation = (Total Number of Straight Time Hours Worked/1600) x Vacation Hours Allotment = Vacation available in new calendar year. Notwithstanding anything to the contrary, all seniority Team Members will be granted five (5) vacation days per year. Earned vacation hours not equal to a full day or four (4) hour increment of vacation time will be paid for actual earned vacation time but will be scheduled as if they were rounded up to the nearest increment. Article 15, Section 5, is styled “unused vacation” and provides: Earned but unused vacation will be paid to team members at the end of the year. All vacation values will be calculated at the team member’s base rate of pay at the time of use or payout. Upon separation of employment, Android will pay unused and accrued vacation in the team member’s final paycheck. Next, the arbitrator stated the positions of the parties as follows: [T]he Union relies primarily upon the last sentence of Article 15, Section 5 which states, 2 “Upon separation of employment, Android will pay unused and accrued vacation in the team member’s final paycheck.” According to the Union, the vacation hours that the employees accrued in 2016 constitute “unused and accrued vacation” and therefore, under the plain language of Article 15, Section 5, vacation pay for these hours should have been included in the Grievants’ final paychecks. The Employer relies primarily upon language in Section 1 of Article 15 which states, “Vacation is a benefit calculated and earned yearly based on the amount of hours a Team Member worked in the prior calendar year… Based on the employee’s seniority during the vacation year, active full-time Team Members shall be eligible for:” This language is followed by a chart which sets forth numbers of vacation days, based upon the employee’s tenure with the Company. Employees with one year of seniority receive 10 days of vacation under this chart, and this amount rises to 15 days of vacation after two years, 17 days after 10 years, and 20 days after twenty years. The Employer argues that under this language, active employment in 2017 is an eligibility requirement for an employee to collect any vacation benefit based upon hours worked in 2016. Because there were no active full-time Team Members in 2017, the Company argues that no one was eligible for vacation, based on the 2016 hours. As employees were terminated at the end of 2016, the Company paid them for what it considers unused “2016 vacation,” based upon hours worked in 2015, and argues that no further vacation benefits are due to employees, based upon the hours they worked in 2016. The arbitrator then reasoned in pertinent part as follows: Section 1 is general in nature and does not specifically address the issue of how vacation benefits are to be handled upon separation. In contrast, the language of Section 5 specifically addresses the situation of how vacation benefits are to be paid “upon separation from employment.” It requires that upon separation, “Android will pay unused and accrued vacation.” The question in this case is whether the Parties intended the situation at issue here–where the employees have been separated from employment, through the Employer’s action, before they can use certain vacation benefits–to require payment of those benefits as “unused and accrued vacation” specified in Section 5. . . . . Article 15, Section 5 of the collective bargaining agreement here specifically uses the term “unused and accrued vacation” to describe a monetary sum which is due to employees in their final paycheck. The term does not exist in a vacuum, but rather is contained within an Article of the Agreement which defines how vacation 3 benefits are earned or accrued. The Arbitrator concludes that the Parties intended the term “accrued vacation” under Section 5 to refer back to the term “accruing vacation days” in Section 2, which sets out the basic formula for the accrual. Once an employee earns or accumulates vacation days by working over a period of time, the vacation days are referred to as “accrued,” under Section 2. Once accrued, benefits are generally due to an employee under the normal meaning of the word “accrued:” the definition of “accrue” is “to accumulate or have due after a period of time,” according to the online version of the Merriam Webster Dictionary.

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Android Industries Belvidere LLC v. UAW Local 1268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/android-industries-belvidere-llc-v-uaw-local-1268-ilnd-2018.