Arbitration between Allied Building Products Corp v. Local No. 247, International Brotherhood of Teamsters, Chauffeurs, Warehousemen, & Helpers of America

774 F. Supp. 1066, 1991 U.S. Dist. LEXIS 14926, 1991 WL 212779
CourtDistrict Court, E.D. Michigan
DecidedSeptember 30, 1991
DocketNo. 91-CV-70853
StatusPublished
Cited by1 cases

This text of 774 F. Supp. 1066 (Arbitration between Allied Building Products Corp v. Local No. 247, International Brotherhood of Teamsters, Chauffeurs, Warehousemen, & Helpers of America) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arbitration between Allied Building Products Corp v. Local No. 247, International Brotherhood of Teamsters, Chauffeurs, Warehousemen, & Helpers of America, 774 F. Supp. 1066, 1991 U.S. Dist. LEXIS 14926, 1991 WL 212779 (E.D. Mich. 1991).

Opinion

OPINION AND ORDER GRANTING RESPONDENT’S MOTION FOR SUMMARY JUDGMENT AND DENYING PETITIONER’S MOTION FOR SUMMARY JUDGMENT

ROSEN, District Judge.

INTRODUCTION

This matter is before the Court on Respondent’s Motion for Summary Judgment filed March 15, 1991. On March 28, 1991, Petitioner also filed a Motion for Summary Judgment. On May 22, 1991, Respondent filed a brief in opposition to Petitioner’s Motion for Summary Judgment.

The facts in this matter are largely undisputed, and the legal issue is discrete and narrowly-focused. The Petitioner claims that the Arbitrator misconstrued the Collective Bargaining Agreement (“CBA”) when he held that the Petitioner had wrongly transferred the Grievant to a lower position. The Respondent counters that the Arbitrator’s Opinion and Award (“Award”) represents a lawful interpretation of the CBA and, thus, is inappropriate for judicial review.

FACTS

Petitioner Allied Building Products Corporation (“Allied”) is engaged in the sale and delivery of residential and commercial construction materials. Respondent Local No. 247 (“Union”) is a labor union representing some of Allied’s employees. Allied and the Union are signatories to a collective bargaining agreement covering employees employed at Allied’s Roseville, Michigan facility in the classifications of Warehouse Leader, Truck Driver, Tractor Driver, Warehouseman, Helper, and Summer Help. The CBA is effective from January 29, 1989 until January 28, 1992.

The relevant portions of the CBA read as follows:

ARTICLE VII
TRANSFERS
SECTION I. The Company shall have the right to transfer employees from one job to another. Employees may not unjustifiably refuse to assist or work on temporary assignments even though not part of their usual work or assignment, as the business of the Company requires.
SECTION 2. If it is found necessary to transfer an employee from a higher rated classification to a lower rated classification because of a change in process or reduction in work requiring a lay off, the employee so transferred shall retain his present rate of pay for thirty (30) days after the date of the transfer and shall then be paid the rate of pay for the classification in which he is placed. If the transfer is for a temporary period only (rather than a lay off), the employee shall carry his old rate.
SECTION 3. If an employee is temporarily transferred for the Company’s convenience to a higher rated classification, he shall receive the rate of the higher classification for the period of time that he is so assigned. It is understood that [1068]*1068temporary transfers shall not be made to avoid the filling of a permanent full time position, which, at the discretion of management, shall be defined as a position that has been vacated or newly created.
ARTICLE XIII
MANAGEMENT
The Union recognizes that the successful and efficient operation of the business is the responsibility of management, and that the management of the plant and the direction of the working forces, including, but not limited to the right to plan, direct and control plant operations, to hire, suspend, or discharge for proper cause, to transfer, promote, or demote employees in accordance with the agreement, to institute reasonable work rules, to relieve employees from duty because of lack of work or for other legitimate reason, and the right to introduce new or improved production methods or equipment, is vested exclusively in the Company, provided, however, that no employee will be discriminated against as provided in this Agreement. The Union reserves the right to review through Grievance Procedure and Arbitration any question of fact, or the reasonableness of any work rule.
ARTICLE IX
ARBITRATION
SECTION 1. the Arbitrator shall be selected from a list of names requested from the Federal Mediation and Conciliation Service, with each party having the right to reject one complete panel. The Arbitrator’s decision shall be final and binding on both parties. However, the Arbitrator shall have no authority to alter, amend or otherwise depart from the terms and provisions of this Agreement.

On or about February 19, 1990, Robert Cadeau (“Cadeau” or “Grievant”), an employee of Allied covered by the CBA, was transferred from the position of Warehouse Leader to Helper. Cadeau filed a grievance over his transfer and the matter was submitted to arbitration on October 16, 1990 before Arbitrator Alan Walt (“Arbitrator”).

At the outset of the hearing, the parties submitted to the Arbitrator a written set of stipulated facts. These stipulations stated, in relevant part, that (1) the Grievant had been transferred from the position of Warehouse Leader to Helper; (2) Article VII of the current contract contains the same language as the predecessor agreement; (3) neither party had proposed changes in Article VII during the most recent negotiations; and (4) Article VII was not discussed during negotiations.

The issue before the Arbitrator was whether Allied had the right under the CBA to transfer Cadeau from the position of warehouse leader to helper.

DISCUSSION

Analysis of this issue requires the Court to determine, as an initial matter, whether the Award is susceptible to judicial review. Only if an award does not “draw its essence from the collective bargaining agreement” may a court intervene in an arbitrator’s decision.

A. SCOPE OF JUDICIAL REVIEW OF ARBITRATOR’S DECISION

The courts have typically been reluctant to overturn an arbitrator's award, viewing such an award as an extension of the contract and, thus, as an integral part of the parties’ contractual agreement. United Paperworkers Intern. Union v. Misco, Inc., 484 U.S. 29, 108 S.Ct. 364, 371, 98 L.Ed.2d 286 (1987); Stead Motors v. Automotive Machinists Lodge, 886 F.2d 1200, 1205 (9th Cir.1989), cert. denied, — U.S. -, 110 S.Ct. 2205, 109 L.Ed.2d 531 (1990) (“Since the labor arbitrator is designed to function in essence as the parties’ surrogate, he cannot ‘misinterpret’ a collective bargaining agreement”). Moreover, were courts to have the final say on the merits of an arbitrator’s award, the federal policy of settling labor disputes by arbitration would be compromised. United Steelwork[1069]*1069ers v. Enterprise Wheel & Car Corp., 363 U.S. 593, 80 S.Ct. 1358, 1360, 4 L.Ed.2d 1424 (1960).

Once the parties have decided to settle their dispute through arbitration and once they have chosen a mutually acceptable arbitrator, the courts have only disturbed an award for the most egregious of breaches by the arbitrator. For all practical purposes, the arbitrator’s award — assuming that it does not involve fraud or overreaching — must be counter-factual or directly contrary to the plain language of the contract to merit judicial intervention.

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774 F. Supp. 1066, 1991 U.S. Dist. LEXIS 14926, 1991 WL 212779, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arbitration-between-allied-building-products-corp-v-local-no-247-mied-1991.