Capitol City Lumber Company v. National Labor Relations Board

721 F.2d 546, 4 Employee Benefits Cas. (BNA) 2530, 114 L.R.R.M. (BNA) 3429, 1983 U.S. App. LEXIS 15345
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 11, 1983
Docket82-1682, 82-1850
StatusPublished
Cited by5 cases

This text of 721 F.2d 546 (Capitol City Lumber Company v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Capitol City Lumber Company v. National Labor Relations Board, 721 F.2d 546, 4 Employee Benefits Cas. (BNA) 2530, 114 L.R.R.M. (BNA) 3429, 1983 U.S. App. LEXIS 15345 (6th Cir. 1983).

Opinion

PER CURIAM.

Capitol City Lumber Company petitions for review of an order of the National Labor Relations Board requiring Capitol City to make certain payments into pension and welfare benefit funds maintained for the benefit of its employees, members of Teamsters Union, Local 580. 263 N.L.R.B. 102. The Board, in turn, cross-applies for enforcement of its order pursuant to 29 U.S.C. § 160(e).

In the spring of 1979, Capitol City and Local 580 entered into negotiations for a new contract covering the company’s employees. On May 25, the company and the union reached agreement on the terms of that contract. The new contract was to be effective for one year, beginning May 1, 1979, and would be automatically renewed each year unless either party gave notice sixty days prior to the renewal date. Article XIX of the agreement, however, com *548 mitted the company to making contributions to the employee pension and welfare benefit funds for a three-year period. 1

The employees ratified the new agreement immediately but the contract was not submitted to the company president, Olson, for signature until December 14, 1979, because of Olson’s ill health. At that time, Olson expressed misgivings about making a three-year commitment to the pension and welfare funds in what was otherwise a one-year renewable contract. Olson was also concerned that his employees did not appreciate the cost implications of the Company’s fund contributions. The union representative, Mr. Cooper, explained that a three-year commitment was necessary to meet the participation requirements of the funds’ managers. Cooper agreed to draw up an additional letter of understanding to clarify the situation. 2 The resulting letter confirmed that a three-year commitment was required to participate in the funds. The letter also spelled out the per-employee cost for the company’s first-year contributions to the funds and stated that future wage agreements must take into account the cost of fund payments. This letter of understanding was incorporated into the separate fund participation agreements, and they, along with the collective bargaining agreement itself, were signed by Olson and Cooper on December 30, 1979.

The collective bargaining agreement was renewed May 1, 1980 for another year. However, the company did not increase its payments to the welfare and pension funds as called for in Article XIX of the collective bargaining agreement but kept them at the previous year’s level. The agreement was not renewed on May 1, 1981, and the company ceased making contributions to the funds altogether. The union filed an unfair labor practice charge, claiming that the company had violated sections 8(a)(5) and (1) of the Act by failing to make contributions to the funds as required by the agreement. The administrative law judge, upheld by the Board, found a violation and ordered the company to remit to the funds all amounts required by Article XIX for the three-year period from May 1,1979 to April 30, 1982. We agree.

The company’s first allegation on review is that the Board lacked jurisdiction to hear the union’s complaint. The Board’s jurisdiction is limited to resolving disputes involving unfair labor practices. Section 10(a) of the Act, 29 U.S.C. § 160(a). The Board does not have the authority to police collective bargaining agreements. NLRB v. C & C Plywood Corp., 385 U.S. 421, 427-28, 87 S.Ct. 559, 563-64, 17 L.Ed.2d 486 (1967). Here, the company argues that the union alleges nothing more than a violation of a collective bargaining agreement, and, therefore, the union’s remedies are limited to the grievance procedure established by the agreement or a breach of contract suit in the courts. However, it is well established that the Board does have jurisdiction to resolve contractual disputes, including those involving a collective bargaining agreement, whenever those disputes are central to the disposition of an unfair labor practice complaint. Id. Here, the unfair *549 labor practice is the company’s failure to bargain over changes in the terms and conditions of employment — the reductions in payments to the pension and welfare funds — in violation of sections 8(a)(5) and (1) of the Act. See Malone v. White Motor Corp., 435 U.S. 497, 504, 98 S.Ct. 1185, 1190, 55 L.Ed.2d 443 (1978). Because the contractual violation is identical to the unfair labor practice, the Board has jurisdiction to decide both.

The Supreme Court has already upheld the Board’s jurisdiction in a very similar case, NLRB v. C & C Plywood, supra. There, the company attempted to raise the wages of certain workers without consulting the union and in violation of the wage scale established in the collective bargaining agreement. Capitol City attempts to distinguish this case on two grounds: (1) the bargaining agreement in C & C Plywood had no arbitration provision, and (2) unlike the present case, there was no adequate remedy available to the union by suit in federal or state court. The subsequent case of NLRB v. Strong, 393 U.S. 357, 361, 89 S.Ct. 541, 544-45, 21 L.Ed.2d 546 (1969), however, clearly refutes both arguments. In Strong, the court said:

[T]he Board may proscribe conduct which is an unfair labor practice even though it is also a breach of contract remediable as such by arbitration and in the courts. It may also, if necessary to adjudicate an unfair labor practice, interpret and give effect to the terms of a collective bargaining contract, [citations omitted.]

Finally, the Company argues that the Board’s interpretation of the case law would convert any violation of the collective bargaining agreement into an unfair labor practice and thereby allow the Board to police collective bargaining agreements, a practice which the Congress has expressly refused to sanction. The company’s fears are not well founded. Most disputes over interpretation of collective bargaining agreements, such as the termination of an employee in alleged violation of a “just cause” discharge requirement, simply do not rise to the level of an unfair labor practice. Moreover, even those violations of an agreement which could be characterized as unfair labor practices are usually resolved in the arbitration/grievance procedure established by that agreement. The Board has a long history of deferring to the arbitration process both before and after an arbitration award has been made. See Speilberg Mfg. Co., 112 N.L.R.B. 1080 (1955); Collyer Insulated Wire, 192 N.L.R.B. 837 (1971). However, the Board has made it clear that when, as here, the arbitral machinery is no longer available to resolve a dispute because the time limit for filing a grievance has expired and the adverse party will not waive the timely filing requirement, it will assert its jurisdiction.

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721 F.2d 546, 4 Employee Benefits Cas. (BNA) 2530, 114 L.R.R.M. (BNA) 3429, 1983 U.S. App. LEXIS 15345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capitol-city-lumber-company-v-national-labor-relations-board-ca6-1983.