Coordinating Committee Steel Companies v. United Steelworkers of America

436 F. Supp. 208, 95 L.R.R.M. (BNA) 3257
CourtDistrict Court, W.D. Pennsylvania
DecidedJuly 29, 1977
DocketCiv. A. 77-861
StatusPublished

This text of 436 F. Supp. 208 (Coordinating Committee Steel Companies v. United Steelworkers of America) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coordinating Committee Steel Companies v. United Steelworkers of America, 436 F. Supp. 208, 95 L.R.R.M. (BNA) 3257 (W.D. Pa. 1977).

Opinion

OPINION

SNYDER, District Judge.

Plaintiff Steel and Iron Ore Companies have brought this action for a Temporary Restraining Order, Preliminary and Final Injunction, and money damages against the United Steelworkers of America (Steelworkers) with whom the Companies have negotiated Basic Labor Agreements (BLAs) covering approximately 330,000 employees in the steel industry and approximately 17,-500 employees in the iron ore industry. Through the Coordinating Committee Steel Companies (CCSC) the Steel and Iron Ore Companies bargained with the Steelworkers regarding wages, hours of work, and other terms and conditions of employment for employees represented by the Steelworkers. Jurisdiction of this Court is asserted under Section 301 of the Labor Management Relations Act of 1947, as amended (29 U.S.C. § 185). Hearing was held on the Preliminary Injunction. 1

In 1974, the Steel Companies entered into BLAs with the Steelworkers which continue unchanged until August 1, 1977. The parties also agreed to continue until 1977 an Experimental Negotiating Agreement (ENA-77) which provided for binding interest arbitration 2 as the substitute for the *210 right to strike or lockout as the terminal method of resolving collective bargaining matters, except those defined as local collective bargaining issues in Section D-5-a 3 or those excluded from strike or lockout by Section D-6. In effect, ENA-77 looked forward to a resolution of all contract issues by April 15, 1977, and such issues not so resolved would be submitted to final and binding arbitration. On March 1, 1977, CCSC, on behalf of the Iron Ore Companies, made the ENA-77 and the Basic Steel Settlement Agreement (Settlement-77) binding upon the Iron Ore Companies under the terms of the “Memorandum of Agreement, 1977 Iron Ore Negotiations”. The expressed purpose and intent of ENA-77 was to prohibit industry-wide strikes, to achieve stability in the steel industry and to avert the strike-hedge steel inventory buildup and increased foreign steel imports which had preceded negotiations in the steel industry from 1959 (when the last industry-wide strike occurred) until 1973 (when the parties first utilized the Experimental Negotiation Agreement approach as a means of resolving collective bargaining issues).

An examination of the ENA-77 reveals that there was to be no strike, work stoppage or concerted refusal to work in support of the Union’s collective bargaining demands in the 1977 negotiations and the Plaintiff Companies agreed not to lockout their employees to support their contract bargaining positions; each party agreed that binding arbitration, rather than economic warfare, would be the method used for resolving disputes. An important exception to the express provision against strikes, stoppages or concerted refusals, however, is the provision in Subsection D-5. This exception relates to issues denominated as “local collective bargaining issues” which are defined as “an issue entered at plant level, proposing establishment of or change in a condition of employment at that particular plant” which would not (1) be inconsistent, involve any additions to, or modifications ch. the company agreement, (2) be an arbitrable grievance under the applicable basic labor agreement, and (3) relate to a grievance settlement or arbitration award (pertaining only to arbitrable grievances).

ENA-77 then provided in Section D-5b-(3) 4 a requirement that the parties make *211 every effort to settle the local bargaining issue by negotiation, but absent agreement by June 10, 1977, and if not withdrawn by the Union Co-Chairman, the issue would be submitted to a secret ballot strike vote of all employees at the involved plant. If the Local votes to strike, the Co-Chairman submits the matter to the International President, who must decide whether or not to authorize the strike by July 15, 1977.

The Union strongly urges that this “local issue” exception was a quid pro quo for its acceptance of interest arbitration. Before ENA, the Union could not strike at the plant level in support of local bargaining issues. Either the Union would strike industry-wide, or it could not strike at all. Consequently, pursuit of many local issues was frustrated by the bargaining structure because the Locals could not succeed in generating nation-wide enthusiasm for local problems. Thus, while on one hand ENA protects against industry-wide strikes and the disastrous consequences incident thereto, on the other hand it creates a new concept of local strikes to support local bargaining issues.

Pursuant to the terms of ENA-77, CCSC and the Steelworkers engaged in separate negotiations with the local representatives of the Union on local issues. Further, each Iron Ore Company was represented on an “Iron Ore Committee” of the CCSC which negotiated with the Steelworkers to resolve matters related primarily to the iron ore operations of such Company.

On April 9, 1977, an agreement was reached on all basic collective bargaining agreement issues and the Steelworkers and the CCSC entered into the Settlement-77, pursuant to which the 1974 BLAs between the Steelworkers and the Companies were, by incorporating negotiated changes, modified to become the new BLAs dated August 1, 1977. Part of the Settlement-77 provided for renewal of the binding interest arbitration agreement through the 1980 negoti *212 ations (ENA-80). Pursuant to the Settlement-77, some of the negotiated changes took effect May 1, 1977.

As contemplated by ENA-77, after settlement of all of the industry-wide issues, the negotiations continued on a multitude of local issues. By June 10, 1977, the date by which local unions were either to withdraw unresolved local demands or call a strike vote under ENA-77, all but 38 plants had completely settled their differences. Of the 38 plants taking strike votes, 33 Locals voted to strike in support of their still unresolved demands and were authorized to strike by Lloyd McBride, President of the International. The strike date for most plants is August 1, 1977. Of these 33 locations, 12 were basic steel plants or steel subsidiaries and 21 were ore mining operations. Since the strike votes and authorizations, negotiations have continued and all of the basic steel plants and all but three of the steel subsidiaries have reached agreements. Although negotiations are still in progress, Union officials believe there is little doubt that most of the remaining Locals will strike on August 1, 1977.

Thus, ENA-77 has effectively accomplished successful negotiations involving all but about 17,000 of the 350,000 employees at CCSC members’ facilities without economic warfare, and the threat of an industry-wide strike has been averted in 1977. From the outset of negotiations, however, one dispute has stymied the complete success of ENA-77. The local unions have entered demands at the local level and pursued them even after Settlement-77, which the Companies strongly assert are not properly “local collective bargaining issues” as defined in D-5 of ENA-77.

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Bluebook (online)
436 F. Supp. 208, 95 L.R.R.M. (BNA) 3257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coordinating-committee-steel-companies-v-united-steelworkers-of-america-pawd-1977.