Bell v. DaimlerChrysler Corp.

547 F.3d 796, 185 L.R.R.M. (BNA) 2097, 2008 U.S. App. LEXIS 23955, 2008 WL 4724384
Court of Appeals for the Seventh Circuit·Decided October 29, 2008·No. 07-2239, 07-2263·Published·Cited by 25 cases

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.

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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).

547 F.3d 796 (Bell v. DaimlerChrysler Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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