City of Chicago v. American Federation of State, County & Municipal Employees

669 N.E.2d 1311, 283 Ill. App. 3d 446, 218 Ill. Dec. 785, 153 L.R.R.M. (BNA) 2571, 1996 Ill. App. LEXIS 654
CourtAppellate Court of Illinois
DecidedSeptember 3, 1996
DocketNo 1—95—2055
StatusPublished
Cited by10 cases

This text of 669 N.E.2d 1311 (City of Chicago v. American Federation of State, County & Municipal Employees) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Chicago v. American Federation of State, County & Municipal Employees, 669 N.E.2d 1311, 283 Ill. App. 3d 446, 218 Ill. Dec. 785, 153 L.R.R.M. (BNA) 2571, 1996 Ill. App. LEXIS 654 (Ill. Ct. App. 1996).

Opinion

PRESIDING JUSTICE CAMPBELL

delivered the opinion of the court:

Plaintiff City of Chicago (City) filed an application to vacate an arbitration award decided in favor of defendant American Federation of State, County and Municipal Employees, Council 31 (AFSCME) in a labor dispute. The circuit court of Cook County granted the City’s application. AFSCME now appeals.

The record on appeal indicates the following facts. The City is an employer and AFSCME is a labor organization that entered into a collective bargaining agreement (CBA) on July 27, 1988. Section 1.2 of article 1 of the CBA generally provides that "[t]he Employer will assign bargaining unit work to bargaining employees only.” However, section 1.2 also provided as follows:

"Nothing in this Section shall limit the Employer from subcontracting work to nonemployees, except as this inherent right may be subject to specific limitation, if any, in this Agreement.”

Article 22 of the CBA addressed the issue of subcontracting as follows:

"The Employer will attempt to have employees perform bargaining unit work where practicable; however, the Employer reserves the right to contract out work for reasons of efficiency or economy. Prior to sub-contracting bargaining unit work, the Employer shall give notice of such contemplated action at least 30 days prior to entering into a sub-contract.
The notice shall be in writing and shall contain the name and address of the party who will perform the work, a description of the work to be performed, any contemplated impact on bargaining unit employees, and any other relevant data to enable the Union to discuss with the Employer alternatives to such action.
Upon request, the Employer shall meet with the Union within 3 days of such request.
If bargaining unit employees would be laid off by the proposed sub-contracting, the Employer shall make available, on a seniority basis, equal-rated permanent jobs the Employer has declared to be vacant in the Department, or other Departments, in that order, provided the laid off employees have the then present ability to perform the required work without further training. However, the employee shall be provided with a reasonable amount of orientation to allow him or her to perform the work.
Prior to the sub-contracting of bargaining unit work, the Employer, the Union, and the proposed sub-contractor shall meet to discuss the employment of employees subject to layoff. The Employer will request that the sub-contractor hire laid off employees.”

Among the employees covered by the CBA were security guards working in the City’s public library system, though such work was also performed by off-duty police officers.

This dispute involves the subcontracting of work for security guards at the Harold Washington Library, which was opened in October 1991. During meetings in late 1990, the City informed AFSCME that the City was considering subcontracting the security work at the new library. On May 8, 1991, after hearing rumors that the work was going to be contracted out, AFSCME wrote the City reminding the City of its obligations under article 22 of the CBA. Although the City decided in May 1991 that the security work would be contracted out, it did not execute a contract for the work until September 16, 1991, when it signed an agreement with TishmanMidwest, a private firm which had submitted the lowest bid to the City. Tishman-Midwest then entered into a contract with B&D Services to provide the security. The City did not notify AFSCME of the subcontract in writing until September 27, 1991.

By the time the Harold Washington Library opened, the City had closed certain library facilities and had stopped using certain other facilities as libraries. However, no City employees were laid off as a result of these changes.

Pursuant to the CBA, AFSCME filed a grievance alleging that the City had violated article 22 of the CBA. The grievance was processed under the terms of the CBA and ultimately proceeded to arbitration on June 30 and September 23, 1990.

On February 14, 1994, the arbitrator issued an opinion and award in favor of AFSCME. The arbitrator concluded that the City had violated article 22 of the CBA. The arbitrator then addressed the formulation of a remedy that would, as closely as possible, restore the status quo ante. The arbitrator directed the City to cancel the portion of its agreement with Tishman-Midwest regarding security work at the Harold Washington Library. The arbitrator directed the City to submit the relevant contract data to A.FSCME and to meet with AFSCME within three days of AFSCME’s request.

The arbitrator denied AFSCME’s request to require that the security guards at the Harold Washington Library be represented by AFSCME and that the positions be accreted into the bargaining unit. The arbitrator reasoned that such a remedy would deny the City its right to subcontract and would presuppose that AFSCME would succeed in its effort to dissuade the City from subcontracting. Thus, the arbitrator concluded that such relief would go beyond restoration of the status quo.

However, the arbitrator further stated that merely requiring the City to give notice and meet with AFSCME would not effectively restore the status quo. Thus, in order to make AFSCME whole, the arbitrator ordered the City to pay AFSCME a sum equal to what it would have paid bargaining unit employees under the CBA (the number of employees to be calculated by the percentage of library security guards that fall under the CBA), increased by the amount of union dues such employees would have paid AFSCME. This sum was to accrue from the date the private guards were employed at the library until the date the City complied with the requirements of article 22. The arbitrator further directed that this sum was to be distributed to the bargaining unit or "utilized by the Union in the meeting process with the City under this remedy.” The arbitrator recognized that, given the time elapsed and the staffing requirements of the library, the award could be "quite substantial,” but stated that the relief was "required or at least must be factored into the topics for discussion once the parties meet.”

On May 13, 1994, the City filed its application to vacate the arbitration award, alleging that the requirement that it pay AFSCME what it would have paid bargaining unit employees under the CBA, an amount allegedly exceeding $1 million, was punitive in nature. The City alternatively sought that only that portion of the award be vacated.

During argument on the matter, the trial court stated that it did not understand the challenged portion of the award and suggested remanding the matter to the arbitrator for clarification. AFSCME argued that the damages were awarded in order that AFSCME could exchange them for the City’s agreement not to subcontract the work. The trial court stated that such a rationale would be unacceptable, but entered an order vacating the challenged portion of the award and remanding the case to the arbitrator for clarification.

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Bluebook (online)
669 N.E.2d 1311, 283 Ill. App. 3d 446, 218 Ill. Dec. 785, 153 L.R.R.M. (BNA) 2571, 1996 Ill. App. LEXIS 654, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-chicago-v-american-federation-of-state-county-municipal-illappct-1996.