Earline Young v. UAW

CourtCourt of Appeals for the Sixth Circuit
DecidedApril 12, 2017
Docket16-1632
StatusUnpublished

This text of Earline Young v. UAW (Earline Young v. UAW) 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.

Bluebook
Earline Young v. UAW, (6th Cir. 2017).

Opinion

NOT RECOMMENDED FOR FULL-TEXT PUBLICATION File Name: 17a0214n.06

Case No. 16-1632

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

FILED Apr 12, 2017 EARLINE YOUNG, et al., ) DEBORAH S. HUNT, Clerk ) Plaintiffs-Appellants, ) ) ON APPEAL FROM THE UNITED v. ) STATES DISTRICT COURT FOR ) THE EASTERN DISTRICT OF INTERNATIONAL UNION UNITED ) MICHIGAN AUTOMOBILE, AEROSPACE AND ) AGRICULTURAL IMPLEMENT ) WORKERS OF AMERICA, LOCAL 651; ) INTERNATIONAL UNION, UNITED ) AUTOMOBILE, AEROSPACE AND ) AGRICULTURAL IMPLEMENT ) WORKERS OF AMERICA; GENERAL ) MOTORS, LLC, ) ) Defendants-Appellees. )

BEFORE: GIBBONS, COOK, and KETHLEDGE, Circuit Judges.

COOK, Circuit Judge. Appellants are forty-five General Motors (“GM”) employees who

previously worked for Delphi, GM’s largest automotive-parts supplier, at Delphi’s Flint-East

plant. In 2009, GM hired all these forty-five in a workforce transfer between the two companies.

A few years later, these same employees sued GM and their union, United Automobile Workers

(“UAW”), alleging that GM paid them an improper wage and that the union breached its duty of Case No. 16-1632, Young, et al. v. UAW Int’l, et al.

fair representation during the grievance process. The district court dismissed their complaint and

denied leave to amend. We affirm.

I.

Delphi operated as GM’s subsidiary until 1999, when Delphi spun-off as an independent

company. Over the next several years, the UAW, Delphi, and GM negotiated several agreements

that form the basis of the claims on appeal.

(A) The Relevant 2004 and 2007 Agreements

Facing financial stress in the early 2000s, Delphi aimed to slash its labor costs through a

2004 Supplemental Agreement with the UAW. The agreement established a two-tier wage

structure at Delphi: employees hired before its May 3, 2004 effective date continued to receive a

Tier-I wage; employees hired after that date would receive a lower Tier-II wage, the difference

being about $8 per hour.

The Supplemental Agreement proved only a partial salve for Delphi’s financial woes, and

in 2005 Delphi filed for Chapter 11 bankruptcy protection. As part of Delphi’s reorganization, it

signed a 2007 Restructuring Agreement with GM and the UAW to usher in a “more competitive

wage and benefit level[].” To that end, the 2007 Restructuring Agreement offered three options

to Delphi employees receiving Tier-I wages: (1) early retirement; (2) a one-time buy-out; or (3) a

“buy-down” to Tier-II wages in exchange for $105,000 paid in three annual $35,000

installments. Thirty-nine of the employees who bring this claim began working at Delphi in

2005 or 2006, after the Supplemental Agreement’s effective date, and therefore already received

the lower Tier-II wage. The six who had been receiving Tier-I wages elected to buy-down to the

Tier-II wage rate.

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The 2007 Restructuring Agreement also included a provision that singled out the Flint-

East Delphi plant—where all the Appellants worked—for special treatment. First, GM agreed to

hire 230 Flint-East employees beginning January 2008. Second, GM committed to finding a

third party to hire all of the remaining Flint-East employees by December 2008, and if one could

not be found, to implementing “a solution such that these [employees] will no longer remain as

Delphi employees.”

(B) The Employees’ Transfer to GM

When GM could not find a third-party employer to hire most of the Flint-East employees

by the end of 2008, it agreed to hire those employees itself, including all the employees who

bring this appeal. In a 2009 Memorandum of Understanding (the “2009 MOU”), the UAW and

GM agreed that the transferred employees would be “assigned March 17, 2008 as their General

Motors Corporate Seniority Date.” The agreement made an exception, however, for Delphi

employees hired before October 18, 1999, who would “retain their Delphi Corporate Seniority

Date as their General Motors Corporate Seniority Date.”

The concept of corporate seniority figures prominently in the parties’ arguments thanks to

one final agreement between the union and GM. In 2007, GM introduced its own two-tier wage

structure similar to the one Delphi had introduced in 2004, designating employees hired after

October 15, 2007 as “entry level employees” entitled to Tier-II wages. This agreement initially

affected none of the Flint-East workforce, all of whom were Delphi employees at the time. But

after GM hired those workers in 2009, including all the employees who bring suit here, it

classified them as entry-level (i.e., Tier II-compensated) employees irrespective of what the 2009

MOU promised about maintaining their GM corporate seniority date.

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(C) The Grievance

In 2010, employee Earline Young filed a group grievance with the UAW on behalf of all

Flint-East employees protesting the payment of Tier-II wages. About a year later, Young wrote

a letter to a union representative inquiring about the grievance’s status. The representative

informed Young that GM denied the grievance months earlier and that the union placed its own

review of the grievance “on hold.” When Young sought further clarification, the union

responded on January 14, 2013, informing her that it withdrew the grievance for lack of merit.

A few months later, two different employees, Shante Marshall and Jakeiya Anderson, cosigned

an internal appeal with the union contesting its withdrawal of the group grievance. Although the

UAW’s constitution requires members to individually sign an appeal, only Marshall and

Anderson did so. The union denied the appeal on March 16, 2015, deeming it non-meritorious.

(D) District Court Proceedings

Ninety-three Flint-East employees hired by GM in 2009 filed a two-count complaint

against GM and the UAW in the Eastern District of Michigan. Count I states a hybrid § 301

claim, alleging that under the agreements discussed above, GM should be paying these

employees Tier-I wages, and further, that the union breached its duty of fair representation by

failing to press their grievance with GM. Count II alleges that the UAW breached its duty of fair

representation whether or not GM paid the contractually proper wage.

The UAW and GM filed separate motions to dismiss under Federal Rules of Civil

Procedure 12(b)(6) and 12(c), respectively. Both argued for dismissal, saying that: first, only

Marshall and Anderson filed their complaint within the applicable six month statute of

limitations because only they tolled the limitations period by perfecting a union appeal; and

second, in the alternative, none of the appealing union members’ contractual theories has merit.

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When plaintiffs then moved to amend their complaint and explain the proposed amendment, the

court permitted it. Later, after having considered the explained amendments, the court dismissed

all plaintiffs’ claims against both defendants.

Regarding dismissal of the hybrid § 301 claim, the court accepted defendants’ argument

that because only Marshall and Anderson signed the grievance appeal, as required by the UAW’s

constitution, the other 91 plaintiffs—having failed to exhaust their union remedies or toll the

statute of limitations—filed their complaint too late. The court nonetheless addressed the merits

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