Anheuser-Busch, Inc. v. Beer, Soft Drink, Water, Fruit Juice, Carbonic Gas, Liquor Sales Drivers, Helpers, Inside Workers, Local Union No. 744

280 F.3d 1133, 2002 WL 227029
CourtCourt of Appeals for the Seventh Circuit
DecidedFebruary 15, 2002
Docket00-4089
StatusPublished
Cited by13 cases

This text of 280 F.3d 1133 (Anheuser-Busch, Inc. v. Beer, Soft Drink, Water, Fruit Juice, Carbonic Gas, Liquor Sales Drivers, Helpers, Inside Workers, Local Union No. 744) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anheuser-Busch, Inc. v. Beer, Soft Drink, Water, Fruit Juice, Carbonic Gas, Liquor Sales Drivers, Helpers, Inside Workers, Local Union No. 744, 280 F.3d 1133, 2002 WL 227029 (7th Cir. 2002).

Opinions

COFFEY, Circuit Judge.

Plaintiff-Appellant Anheuser-Busch, Inc., appeals the judgment of the district court upholding an arbitrator’s decision in favor of Teamsters Local Union # 744 (“the Union”), concerning the commission rate Anheuser-Busch paid its union drivers pursuant to the terms of a collective bargaining agreement executed in 1998. We reverse and remand with instructions to vacate the award and enter judgment in favor of Anheuser-Busch, Inc.

I. FACTUAL BACKGROUND

Anheuser-Busch Brewing Company (the “employer”) operates a beer distributorship in Arlington Heights, Illinois, and employs Union drivers-salespeople (“drivers”) and assistants to deliver pre-sold products to roughly 1,300 retail accounts in the northern suburbs of Chicago. The drivers are paid on a commission basis, with the commission rate set forth in a 5 year collective bargaining agreement (the “contract”) that took effect February 1, 1998.1 The contract provides one commission rate for drivers who work alone (“one-person routes”) and a lower commission rate for drivers who are assisted by a helper (“two-person routes”).

From May 1986 to April 1989, the employer and the Union operated under an earlier collective bargaining agreement, which provided that drivers, whether assisted by a helper or not, received the same commission rate. This commission rate became an issue in negotiations, and after long, reasoned, and thorough negotiating sessions, the parties executed a new contract in 1990 that altered the prior commission arrangement and adopted a new two-tiered commission payment structure as referred to above. The same commission rate payment provision was thereafter incorporated into and made a part of the parties’ 1994 and 1998 contracts, again after extensive and reasoned negotiations. During the term of the 1990 and 199k contracts, the employer paid all the drivers at the one-person commission (higher) rate. Anheuser-Busch continued this [1135]*1135practice of paying the drivers the increased rate of compensation, in contradiction of the written contract, only during the first two months of the newly negotiated, 60-month 1998 contract. In early April 1998, the company announced that effective April 27, 1998, the drivers would henceforth be reimbursed according to the contract language now in force. According to testimony taken during the arbitration hearings, the decision was motivated by the company’s need to create more two-person routes and hire additional helpers in response to an increasing number of customers as well as customer complaints dealing with the timeliness of their deliveries. At this same time, in order to achieve more pay for each driver, the employer reduced the number of routes from ten to nine, eliminating all expenses associated with one route and dispersed the cost savings and workload among the remaining nine drivers. On May 7, 1998, the Union filed a grievance protesting the company’s decision to follow the terms of the contract, and the dispute proceeded to arbitration pursuant to the terms of the agreement.

The parties stipulated to the parameters of the issue as being, “Did the company violate the labor agreement by changing its practice to conform to the contract provision relating to two-person route commission rates?” It is interesting to note that the question presented was: “Is the company violating the contract when complying with the written terms of the most recent labor agreement?” The contract contained two clauses that limited the arbitrator’s power, the arbitration clause and the “zipper clause,” or merger clause. The zipper clause states that: (1) the written agreement constitutes the full and complete agreement between the parties; and (2) the written agreement supercedes all prior agreements and practices not specifically preserved in the contract. Further, the contract specified that the arbitrator had “no authority to add to, subtract from, modify or change” the terms of the contract. The zipper clause in its entirety reads:

This Agreement constitutes the full and complete agreement between the parties and supercedes all prior agreements between the parties or their representatives, oral or written, including all practices not specifically preserved by the express provisions of this Agreement. This Agreement is the entire agreement between the parties and is the result of extensive negotiations in which both parties had the right and the opportunity to submit proposals and to negotiate their proposals with the other party.

The arbitrator somehow sustained the Union’s grievance, and found that the employer’s payment of the greater commission rate to all drivers during the brief span of but the first two months (60 days) of the new five-year contract constituted a “practice,” in the eyes of the arbitrator, that rose to the level of a “post-execution amendment” of the agreement. This action, according to the arbitrator, allegedly nullified the company’s right to invoke the thoroughly negotiated and mutually agreed upon contract provision dealing with the parties’ agreement to have the two-tiered commission rate. The arbitrator somehow made this finding in spite of the very specific and limiting language in the zipper clause of the contract, “This Agreement ... supercedes all prior agreements between the parties ... oral or written, including all practices not specifically preserved by the express provisions of this Agreement,” as well as the specific arbitration clause forbidding him from modifying the umtten contract. The arbitrator recognized that the company’s April 27, 1998, decision to pay the two-tier (lower) commission rate to drivers working [1136]*1136two-person routes was in full compliance with the terms of the collective bargaining agreement agreed to by the Union and the company in each of the three contracts (1990-2003) referred to herein; that the 1998 contract also contained the zipper clause; and that the 1998 contract was the product of exhaustive negotiations. But instead of adhering to the limitations the contract placed on his authority and to the unambiguous and plain language of the contract as it was written, the arbitrator took an end-run around the clear and unambiguous restrictive terms of the contract. The arbitrator somehow reasoned that because the employer allowed the first two months of the sixty-month contract to elapse before changing its practice to adhere to the written contract’s commission rates clause, it thus “deprived the Union of its right to bargain [over commission rates] for almost five years,” a result that the arbitrator somehow felt (without any explanation) was a “fundamentally unfair maneuver inconsistent with well-settled principles of collective bargaining.”

In a vain attempt to find support for his newly fashioned remedy, the arbitrator reached all the way back and justified his overreaching decision in the partial testimony taken at the arbitration hearing that during a worker’s strike in 1989, some thirteen years ago, the distributorship’s general manager commented to the drivers that the drivers would “have the same pay” whether they worked alone or with a helper.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Air Methods Corporation v. OPEIU
737 F.3d 660 (Tenth Circuit, 2013)
Native Village of Kivalina v. ExxonMobil Corp.
663 F. Supp. 2d 863 (N.D. California, 2009)
Chamberlain Manufacturing Co. v. Local Lodge No. 847
474 F. Supp. 2d 682 (M.D. Pennsylvania, 2007)
Holden v. Deloitte and Touche LLP
390 F. Supp. 2d 752 (N.D. Illinois, 2005)
Lefkovitz v. Wagner
291 F. Supp. 2d 764 (N.D. Illinois, 2003)
DeJohn v. The. TV Corp. Intern.
245 F. Supp. 2d 913 (C.D. Illinois, 2003)
Anheuser-Busch, Inc. v. Beer
280 F.3d 1133 (Seventh Circuit, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
280 F.3d 1133, 2002 WL 227029, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anheuser-busch-inc-v-beer-soft-drink-water-fruit-juice-carbonic-gas-ca7-2002.