Broadway-Hale Stores, Inc. v. Retail Clerks Union

361 P.2d 705, 55 Cal. 2d 754, 13 Cal. Rptr. 97, 1961 Cal. LEXIS 254
CourtCalifornia Supreme Court
DecidedMay 8, 1961
DocketS. F. No. 20434
StatusPublished

This text of 361 P.2d 705 (Broadway-Hale Stores, Inc. v. Retail Clerks Union) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Broadway-Hale Stores, Inc. v. Retail Clerks Union, 361 P.2d 705, 55 Cal. 2d 754, 13 Cal. Rptr. 97, 1961 Cal. LEXIS 254 (Cal. 1961).

Opinion

SCHAUER, J.

— Hale Brothers Stores, hereinafter called Hale, appeals from a judgment of the superior court confirming an arbitration award in favor of Retail Clerks Union, Local Number 428, AFL-CIO, hereinafter called the Union, pursuant to which Hale was ordered to offer reinstatement and back pay to five employes whose employment it had terminated solely because they were 65 years of age. We have concluded that attacks made by Hale upon the award are without merit, and that the judgment should be affirmed.

Commencing in 1945, the Union has had successive collective bargaining agreements with Hale. During the years 1958 and 1959 Hale terminated five employes for the reason that they were over 65 years of age. No claim was made that any of the employes was unable to perform his or her duties properly.

The Union claimed the terminations were in violation of the collective bargaining agreement between itself and Hale, and requested arbitration of the matter. The Union and Hale by an exchange of letters agreed to arbitrate. Following a hearing, the arbitrator rendered an award upholding the position of the Union and ordering that the employes be offered reinstatement with fifty percent back pay, less interim earn[756]*756ings and unemployment insurance received. As already related, the award was confirmed by the superior court, and this appeal by Hale followed.

Preliminarily it may be observed that section 1126 of the Labor Code specifies that “Any collective bargaining agreement between an employer and a labor organization shall be enforceable at law or in equity, and a breach of such collective bargaining agreement by any party thereto shall be subject to the same remedies, including injunctive relief, as are available on other contracts in the courts of this State,” and this court has held that such a contract, “assuming lawful objectives, can be specifically enforced through arbitration or court action. . . .” (Chavez v. Sargent (1959), 52 Cal.2d 162, 206 [48] [339 P.2d 801]; see also Code Civ. Proe., § 1280; Levy v. Superior Court (1940), 15 Cal.2d 692, 697-703 [1-4] [104 P.2d 770, 129 A.L.R. 956].)

As grounds for reversal in the present case Hale first urges that the issue of the terminations was not arbitrable under the provisions of the collective bargaining agreement, and that the arbitrator therefore exceeded his powers by making an award thereon. (See Code Civ. Proe., § 1288, subd. (d).) This contention is without merit. Although there is no language in the agreement dealing specifically with termination of employment for age, the following pertinent provisions do appear:

“Section 3. Discharge and Discrimination
“(a) The Employer shall have the right to discharge any employee for unbecoming conduct, insubordination, incompetency, neglect of duty, failure to perform work as required but not contrary to the terms of this agreement, . . .
“(b) In ease any employee who has been discharged for any of the reasons set forth in subsection (a) hereof, or for any other reason [italics added], shall feel that he or she has been unjustly discharged, such employee shall have the right to appeal through the Union to the Adjustment Board [the arbitrator, in the case at bench] ...”
“Section 5. Seniority
“ (a) "When it is necessary to lay off or rehire employees, the principle of seniority and period of service among employees will be observed when, in the opinion of the Employer, merit and ability are equal.”
[757]*757“Section 12. Working Condition's . . .
“(f) Any employee whose earning capacity is limited because of age, physical or mental handicap, or other infirmity, may be employed in suitable work at a wage agreeable to the Employer, the employee and the Union.
“Section 14. Controversies . . .
“(c) Immediately upon the signing of this Agreement there shall be established an Adjustment Board ... It shall be the duty of the Adjustment Board to consider all complaints and disputes arising under the terms of this agreement, all questions of enforcement of this agreement and any appeals in connection with the discharge, demotion, or disqualification of any employee. . . .

“ (g) Pending the decision of any question referred to the Adjustment Board, the conditions in effect at the time the dispute arose shall continue in effect pending the decisions of the Adjustment Board.”

By agreement between the Union and Hale in this case, the matter was submitted to á sole arbitrator in lieu of the Adjustment Board described in the agreement. Both the arbitrator and the trial court found that the dispute over the “retirement” terminations of the five employes here involved is a dispute subject to arbitration under the terms and provisions of the collective bargaining agreement.

This conclusion finds support in the provisions of the agreement giving the employer the right to “discharge” any employe upon certain specified grounds (§3(a)), and to assign to “suitable work” an employe whose earning capacity is limited “because of age, physical or mental handicap, or other infirmity” (§ 12(f)); requiring that seniority among employes be observed when, in the employer’s opinion, “merit and ability are equal” (§ 5(a)); giving the right to an employe who has been ‘ ‘ discharged ’ ’ for any of the reasons set forth in section 3, subdivision (a), “or for any other reason,” to appeal through the Union to the Adjustment Board (here, the arbitrator) (§ 3(b)), and declaring that it “shall be the duty” of the Adjustment Board to consider “all complaints and disputes arising under the terms” of the agreement and “any appeals in connection with the discharge, demotion, or disqualification” (italics added) of any employe (§ 14(c)). Certainly the disputed termination of an employe on the ground of age, whether considered a “discharge” or a [758]*758‘ ‘ disqualification ’ ’ by reason of such age or a violation of the provisions of subdivision (f) of section 12, supra, may properly be held to be an arbitrable “complaint” or “dispute arising under the terms’’ of the agreement. (See Grunwald-Marx, Inc. v. Los Angeles Joint Board (1959), 52 Cal.2d 568, 589 [29] [343 P.2d 23].) American Stores Co. v. Johnston (1959), 171 F.Supp. 275; United States Steel Corp. v. Nichols (6th Cir., 1956), 229 Fed.2d 396, cert. den. 351 U.S. 950 [76 S.Ct. 846, 100 L.Ed. 1474] ; and Priest v. General Electric Co., (1958), 178 F.Supp. 514, relied upon by Hale, involved both contract provisions and factual backgrounds not present in the subject case, and so are not persuasive here.

Hale next contends that its “retirements” of three of the involved employes occurred during a period in which no contract existed between Hale and the Union, and that therefore the arbitrator exceeded his powers by rendering an award as to those three employes.

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Related

Flores v. Barman
279 P.2d 81 (California Court of Appeal, 1955)
Chavez v. Sargent
339 P.2d 801 (California Supreme Court, 1959)
Levy v. Superior Court
104 P.2d 770 (California Supreme Court, 1940)
Grunwald-Marx, Inc. v. Los Angeles Joint Board
343 P.2d 23 (California Supreme Court, 1959)
American Stores Company v. Johnston
171 F. Supp. 275 (S.D. New York, 1959)
Priest v. General Electric Co.
178 F. Supp. 514 (N.D. New York, 1958)
Nichols v. United States Steel Corp.
351 U.S. 950 (Supreme Court, 1956)

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Bluebook (online)
361 P.2d 705, 55 Cal. 2d 754, 13 Cal. Rptr. 97, 1961 Cal. LEXIS 254, Counsel Stack Legal Research, https://law.counselstack.com/opinion/broadway-hale-stores-inc-v-retail-clerks-union-cal-1961.