Coos Bay Lumber Co. v. Local 7-116, International Woodworkers of America

280 P.2d 412, 279 P.2d 508, 203 Or. 342, 1955 Ore. LEXIS 273, 35 L.R.R.M. (BNA) 2480
CourtOregon Supreme Court
DecidedJanuary 26, 1955
StatusPublished
Cited by3 cases

This text of 280 P.2d 412 (Coos Bay Lumber Co. v. Local 7-116, International Woodworkers of America) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coos Bay Lumber Co. v. Local 7-116, International Woodworkers of America, 280 P.2d 412, 279 P.2d 508, 203 Or. 342, 1955 Ore. LEXIS 273, 35 L.R.R.M. (BNA) 2480 (Or. 1955).

Opinions

BOSSMAN, J.

This is an appeal by three of the 92 defendants from a declaratory judgment and decree which was entered by the circuit court at the conclusion of its trial of this cause. The three appealing defendants are Shirley Johnston, Howard Campbell and Local 7-116, International Woodworkers of America (CIO).

The plaintiff-respondent, Coos Bay Lumber Company, is a Delaware corporation which has complied [345]*345with the laws of this state governing foreign corporations and which operates manufacturing plants in this state. It is engaged in “commerce” as that term is defined in the Labor Management Relations Act, 61 Stat 136, 29 USCA, § 152(6). The defendant-appellant, Local 7-116, International Woodworkers of America (CIO), to which we will hereafter refer as the union, is a labor organization as that term is employed in the Labor Management Relations Act, 29 USCA, § 152(5). It is the bargaining representative of the employees of the plaintiff-respondent, Coos Bay Lumber Company, to which we will hereafter refer as the employer or the plaintiff. The defendants-appellants, Shirley Johnston and Howard Campbell, are, respectively, the president and the business agent of the union. The 89 other defendants are, or were, employees of the plaintiff. None of them, with the exception of A. L. Couty, has appeared in this court. Mr. Couty, in propria persona, filed a short brief with this court which favors the challenged decree.

The relief sought by the complaint was the interpretation of a provision of the collective bargaining agreement which was in effect between the employer and the union. The agreement bore the signatures of the employer and the union. It did not contemplate that the employees should sign it, and none of them had signed it. The complaint petitioned the court to determine whether the collective bargaining agreement required the employer to make deductions from the wages of its 89 employees above mentioned, against their protest, and pay the deducted amounts, as directed by the union and the agreement to finance an employees ’ insurance program, or whether the collective bargaining agreement permitted the employer to pay the disputed wage [346]*346amounts to those of its workmen who had notified it that they did’ not want the employees’ insurance, but wished to have the entire amount of their wages paid to them. The union, by cross complaint, asked for (1) an accounting of all sums of money which had not been paid by the employer to the insurance carrier, (2) specific performance of the collective bargaining agreement, and (3) “such other relief as to the Court may seem just and equitable.”

The challenged judgment and decree sustained the position of the employer and of the 89 employees who had dissented from the collective bargaining agreement. The trial court ruled that neither federal nor state law authorized the union, through collective bargaining, to commit the wages of the employees whom it represented to the financing of an employee insurance program.

Prior to 1950 the employer and the union had signed collective bargaining agreements which governed the relationship between the employer and those of its workmen who worked in its plants. June 20,1950, after a period of negotiation, the employer and the union amended their collective bargaining agreement by inserting in it these provisions:

“1. All employees covered by this agreement shall receive a wage increase of 7% cents per hour effective May 1, 1950 and the wage scale shall be revised accordingly.
“2. There shall be included in each working agreement where there is no existing employer benefit plan in effect between the Local Union and Employer, the following clause:
“ ‘Upon execution of this agreement in his behalf by Union, and so far as is consistent with law, each employee covered by this agreement authorizes [347]*347and directs Employer to deduct from Ms earnings each month the sum of not more than 7y2 cents for each hour worked by him and pay said sum to such insurance carrier or carriers as the Union or its authorized representative may designate for employee social benefits. Such sum shall be paid on the statement of the insurance carrier or carriers so designated. Employer will cooperate with the Union and the insurance carriers in securing necessary information for coverage. ’
‘ ‘ 8. Where an employee benefit program is now in effect in an operation, Employer shall receive credit for Ms contribution to such program, and said program may be supplemented to the extent set forth in the above.
&
“5. Employee social benefit issues shall ba closed until April 1, 1952.”

The provisions just quoted are the parts of the collective bargaining agreement with wMch this suit is concerned. The parties refer to them as a Health and Welfare Insurance Program. The complaint prayed the court to construe them.

Prior to June 29,1950, the union had arranged with the John Hancock Mutual Life Insurance Company (hereafter referred to as the insurance company) to issue to the plaintiff’s employees policies of (1) life, (2) health and accident, and (3) accidental death and dismemberment insurance. The effective date of the insurance was July 1, 1950. At that time there was in effect a policy written by the Coos Bay Hospital Association which provided the employees with medical and hospital service. June 29, 1950, the union, through written notice, directed the employer to make deductions in the amount of 7y2 cents per hour from each employee’s wages and pay the total to the insurance company at its Portland office, less $3.50 per [348]*348month per employee for remittance to the Coos Bay Hospital Association. The letter directed the employer to make the deductions as of May 1,1950. It requested that no deductions be made from the wages of employees whose employment terminated prior to July 1, 1950, since, obviously, those employees could obtain no benefits from the insurance.

The employer made no deductions for payment to the insurance company from the wages of any of its workmen for the period of May 1,1950, to July 1,1950, but instead paid to them the sum of $11,706.97 which would otherwise have been deducted and paid to the insurance company. In short, in the period of May 1, 1950, to July 1, 1950, the employer paid nothing to the insurance company. However, for that period the employer made the required deduction of $3.50 per month per employee for payment to the Coos Bay Hospital Association for those of its employees who, prior to June 21, 1950, had individually authorized the deductions and payments.

The record does not indicate the exact amount which the employer refused to deduct from its workmen and pay to the hospital association for the period extending from May 1,1950, to July 1,1950, for those who had not individually authorized the deduction and remittance.

From July 1,1950, to August 1,1950, the employer followed the instructions that it previously had received from the union as to those of its employees who had made no objection to the deductions. However, in that period the employer, contrary to the union’s instructions, complied with the demands of those of its employees who had notified it to make no deductions for remittance to the insurance company. In lieu of [349]

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Bluebook (online)
280 P.2d 412, 279 P.2d 508, 203 Or. 342, 1955 Ore. LEXIS 273, 35 L.R.R.M. (BNA) 2480, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coos-bay-lumber-co-v-local-7-116-international-woodworkers-of-america-or-1955.