Cotton's, Inc. v. Teamsters Local No. 5

547 F. Supp. 1336, 1982 U.S. Dist. LEXIS 14913
CourtDistrict Court, M.D. Louisiana
DecidedSeptember 29, 1982
DocketCiv. A. No. 81-486-B
StatusPublished
Cited by1 cases

This text of 547 F. Supp. 1336 (Cotton's, Inc. v. Teamsters Local No. 5) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cotton's, Inc. v. Teamsters Local No. 5, 547 F. Supp. 1336, 1982 U.S. Dist. LEXIS 14913 (M.D. La. 1982).

Opinion

POLOZOLA, District Judge:

This matter is before the Court on the motion of the plaintiff, Cotton’s, Inc. for summary judgment. Cotton’s seeks to have vacated an arbitrator’s award rendered in connection with a labor dispute between Cotton’s and the defendant, Teamsters Local No. 5. Cotton’s contends that the award should be overturned because it did not draw its essence from the collective bargaining agreement between the parties. Cotton’s further contends that the collective bargaining agreement as interpreted by the arbitrator is unenforceable under 29 U.S.C. § 158(b)(6). Oral argument is not required on this motion.

Cotton’s has attached as Exhibit B to its motion the decision rendered by the arbitrator, F. Jay Taylor. The decision rendered by the arbitrator contains the following factual background which is undisputed by the parties:

The basic facts of this case are not in dispute. The Company (Cotton’s, Inc.), at its Baton Rouge bakery produces bread and other products under its brand name “Holsum,” “Country Hearth,” etc. It also bakes and distributes “private label” products to various stores and supermarket chains in an area including various parts of Louisiana and Mississippi which also fall within the territorial jurisdiction of Teamsters Local Union No. 5.
For many years the Company has provided the Winn-Dixie food stores with its private label bread, “Velva.” The driver-salesmen and transport drivers have been represented by the Teamsters since 1954 while the in-plant personnel (not a party to this dispute) are represented by the United Steelworkers Union. Up until June 24, 1981, the driver-salesmen delivered and racked Winn-Dixie private label bread (Velva) at the Company’s various stores for which they were paid a commission similar to that paid for the delivery and racking of Cotton’s brand label Holsum bread.
In June, 1981, however, the Winn-Dixie Company decided that its bread delivery system would be handled in a different manner. The contract with Cotton’s was terminated and Winn-Dixie called for competitive bids whereby all private label Velva bread would be delivered to the Winn-Dixie warehouse in New Orleans. Winn-Dixie personnel, in turn, would then deliver and merchandise the bread in the various Company stores. Cotton’s successfully bid on the new contract and on June 25, 1981, began drop delivery shipment of bread to the Winn-Dixie New Orleans warehouse. The Company has contended that its bid included no commission for its driver-salesmen since these Employees provided no services connected with the delivery and sale of Velva bread. Nor, the Company argued, were such commissions mandated by the Contract.
The Union disagreed, however, and a grievance was filed on June 17, 1981, wherein the Teamsters stated that:
“On June 9, 1981 you and Mr. Gene Cotton informed the union stewards that commencing June 25, 1981 that all Winn Dixie private label products will be specifically delivered by Cotton’s, Inc. van drivers to the Winn Dixie warehouse in New Orleans, that these special deliveries in turn, will be distributed back to Winn Dixie stores within the jurisdiction of Teamsters Local No. 5 by special deliveries, and that no salesmen employed by Cotton’s, Inc. will be paid any commissions for these special deliveries. This is a direct violation of Article XXVV (22) page 9 titled ‘Special Deliveries,’ of the current labor contract between Cotton’s, Inc. and Teamsters Local No. 5.
[1339]*1339“By means of this grievance we ask that the salesmen involved be made whole for any monies due them through their commissions that are outlined in the current collective bargaining agreement.
“Also, if this grievance is heard through arbitration or a court or other judicial proceeding, that Teamsters Local No. 5 and all affected employees be awarded appropriate compensatory and punitive damages, interest, attorney’s fees and court costs allowed by the contract and/or applicable law, because the union considers this a bad faith and intentional breach of the contract.” (Joint Exhibit 2A)

And on June 25, 1981, this grievance was amended and supplemented as follows:

“Teamsters Local No. 5 hereby supplements and amends it grievance dated June 17, 1981 by reiterating the aforementioned grievance as though copied at length and by adding the following matters. On June 9, 1981 you and Mr. Gene Cotton at the meeting with the union stewards of Cotton’s, Inc. further indicated that because of the new policy of special deliveries to Winn-Dixie without payment of commissions to salesmen, a substantial number of routes would be cut or discontinued and a substantial number of route salesmen would be laid off as a result thereof. You and Mr. Cotton also indicated that the aforementioned action would be taken without the mutual consent of the union. This (is) a direct violation of Article XXVI, Page 11, entitled ‘Route Cuts,’ of the current labor contract between Cotton’s, Inc. and Teamsters Local No. 5.
“By means of this supplemental and amending grievance, Teamsters Local No. 5 asks that no routes be cut or discontinued or any salesmen laid off as a result thereof, unless it is done with the mutual consent of the union and in accordance with Article XXVI of the contract.”
(Joint Exhibit 2B)
It should also be noted that on June 25, 1981, the first day that the new drop delivery (New Orleans) system went into effect, the driver-salesmen initiated a work-stoppage to protest the new plan which, they contended, deprived them of commissions previously paid and mandated by the Contract. On the same date the Company obtained a temporary restraining order from the United States District Court directing the men to return to their jobs. On July 6, 1981, the Court issued a Preliminary Injunction wherein the “Teamsters Local No. 5, its members, agents, and representatives and all those acting in concert with or under its direction, inducement, persuasion or control, be and they are hereby enjoined, restrained and prohibited from engaging in any work stoppage or picketing and resulting work stoppage at or near Plaintiff’s facilities or the facilities of Plaintiff’s customers involving or connected in any way with a dispute, disagreement or grievance which is arbitrable under the collective bargaining agreement between the Plaintiff and the Defendant, or inducing or causing the employees of the Plaintiff to engage in such conduct, in breach of the collective bargaining agreement between the Plaintiff and Defendant herein.
“IT IS FURTHER ORDERED that Cotton’s, Inc. and Teamsters Local No. 5 be and each is hereby ordered to arbitrate the grievance filed by the Union on June 17, 1981, as supplemented and amended on June 25, 1981.”
The proceedings of this Arbitration, therefore, have been held pursuant to the order of the Court and without progression through the various steps of the grievance procedure as prescribed in the Collective Bargaining Agreement.

As viewed by the arbitrator “this case really turns on the intent and meaning of Article XXII, Paragraph A...” of the contract. (Arbitration Award, p.

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Bluebook (online)
547 F. Supp. 1336, 1982 U.S. Dist. LEXIS 14913, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cottons-inc-v-teamsters-local-no-5-lamd-1982.