Bell v. DaimlerChrysler Corp.

547 F.3d 796, 185 L.R.R.M. (BNA) 2097, 2008 U.S. App. LEXIS 23955, 2008 WL 4724384
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 29, 2008
Docket07-2239, 07-2263
StatusPublished
Cited by25 cases

This text of 547 F.3d 796 (Bell v. DaimlerChrysler Corp.) 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
Bell v. DaimlerChrysler Corp., 547 F.3d 796, 185 L.R.R.M. (BNA) 2097, 2008 U.S. App. LEXIS 23955, 2008 WL 4724384 (7th Cir. 2008).

Opinion

ROVNER, Circuit Judge.

Pursuant to section 301 of the Labor Management Relations Act, 29 U.S.C. § 185(a), the plaintiffs-appellants brought suit in the district court alleging that defendant-appellee DaimlerChrysler Corporation (“Chrysler”) breached its contractual obligations to certain workers laid off in the late 1970s and early 1980s by failing to *799 recall these workers for job openings at Chrysler’s plants in Kokomo, Indiana. The district court granted summary judgment in favor of Chrysler, reasoning in part that the plaintiffs had failed to exhaust their intra-union remedies prior to bringing suit. Bell v. Daimler Chrysler Corp., 2007 WL 1266773 (N.D.Ill. May 1, 2007). We agree and affirm.

I.

The plaintiffs are current or former employees of Chrysler who, as of the late 1970s, were working at a Chrysler plant in New Castle, Indiana. All of the plaintiffs were members of the United Auto Workers, Local 371 (“Local 371”).

The late 1970s were not a happy time for Chrysler and its workforce. Foreign automakers had made substantial inroads into the U.S. automobile market during that decade, and gasoline shortages and price increases in the mid and late 1970s had made larger and less fuel-efficient American cars increasingly unattractive to the American consumer. Chrysler’s situation became so precarious that it took $1.5 billion in federal loan guarantees to keep the company out of bankruptcy. Many Chrysler workers lost their jobs. Beginning in 1978 and continuing through 1980, Chrysler laid off hundreds of workers from its New Castle plant. The plaintiffs were among those laid off. The reduction in the New Castle workforce proved to be long-lasting: not until the early 1990s did Chrysler begin to make significant numbers of new hires at that plant.

Chrysler and UAW were parties to a series of collective bargaining agreements and accompanying side or “letter” agreements that governed the terms of the plaintiffs’ employment. There were more than seventy of these letter agreements, which were separately collected in a document entitled “Letters, Memoranda and Agreements” and colloquially referred to as the “Book of Letters.” It appears from the record that the Book of Letters was updated and republished each time a new collective bargaining agreement was finalized. Some but not all of the letter agreements also were appended to the 1979 Master Agreement and its successor agreements. The plaintiffs represent that the Book of Letters was not distributed to union members, that they were unaware of it at the time of their layoff, and that they did not become aware of the Book of Letters until shortly before this suit was filed in 2003.

Section 65(b) of the 1979 Master Agreement between Chrysler and UAW accorded employees who had been laid off “work opportunity” rights that gave the laid-off workers priority over “off the street” applicants — typically, people who had never before worked at Chrysler — for any job openings at another Chrysler facility within the same “labor market area,” which was circumscribed by a radius of 50 miles from the plant where the employee had worked. A series of successive letter agreements — Numbers 11 (dated November 5, 1976), 64n (dated October 25, 1979) and 85n (dated December 10, 1982) — expanded the re-employment rights of laid-off workers beyond their labor market areas to include openings at plants within the same state that were more than 50 miles away from the plant where they had formerly worked. That expanded range meant that workers who had been laid off from the New Castle plant had work opportunity rights at Chrysler’s multiple plants in Kokomo, Indiana, which was more than 50 miles from the New Castle plant. The plaintiffs aver that they were not aware of these extended rights at the time of their layoff or in the ensuing years because the relevant letter agreements were not attached to the collective bar- *800 gaming agreements in force during those years and because the Book of Letters had not been provided to them.

Between January 1, 1984, and December 31, 1987, while the plaintiffs were still on layoff from their jobs at the New Castle facility, Chrysler hired 775 or more people off the street to work at its Kokomo plants. Contrary to the terms of Letter Agreements 11, 64n, and 85n, these jobs were not first offered to the plaintiffs. For purposes of summary judgment below, Chrysler conceded that it had violated the plaintiffs’ work opportunity rights in making these off-the-street hires. 1 Chrysler’s failure to offer the Kokomo jobs to the plaintiffs had lasting effects beyond the loss of particular employment opportunities. A laid-off employee’s work opportunity rights were limited to a window of time equal to the length of his employment with Chrysler or five years, whichever was greater. If an individual did not return to employment with Chrysler during that recall window, he lost the seniority he had accumulated with the company prior to his layoff, which deprived him of his entitlement to priority over “off the street” applicants for subsequent job openings and had a deleterious effect on his retirement benefits. Thus, although many of the plaintiffs eventually were re-employed by Chrysler, because their re-employment took place outside of the recall window, they lost their seniority and the benefits attendant to that seniority.

As the plaintiffs’ work opportunity rights arose from various agreements between Chrysler and UAW, disputes over those rights were subject to a contractually-specified grievance and arbitration process. That process consisted of multiple “steps” which ultimately culminated in binding arbitration if the dispute was not resolved between the parties.

Although rumors and disgruntlement regarding Chrysler’s off-the-street hiring in Kokomo abounded among UAW members in the 1980s and 1990s, not until April 2002 did Local 371 challenge the hiring as a violation of Chrysler’s contractual obligations. That month, the Local filed two grievances asserting that Chrysler had disregarded the work opportunity rights of its laid-off workers beginning in 1984, when it started to hire workers off the street at its Kokomo facilities. Not until that time, the plaintiffs assert, did they realize that the hiring was contrary to the terms of the various letter agreements between Chrysler and UAW. But the belated filing of these grievances was apparently triggered (at least in part) by the success an individual union member had achieved the preceding month after complaining to his Congressman and the Department of Veterans Affairs. Ronnie Lough, like other members of Local 371, had been laid off from the New Castle plant in 1979. Lough later served in the Navy from 1982 until 1986. Upon his discharge, he sought reemployment with Chrysler and asked that his time in the armed services be recognized as a military leave of absence and that he be rehired by the company; but Lough was advised that there were still other workers with greater seniority in the queue ahead of him awaiting recall. *801 Lough eventually was able to return to work at the New Castle facility, but by this time his recall window had closed and he had lost his seniority as a result.

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547 F.3d 796, 185 L.R.R.M. (BNA) 2097, 2008 U.S. App. LEXIS 23955, 2008 WL 4724384, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bell-v-daimlerchrysler-corp-ca7-2008.