Electrical Workers Local 58 Pension Trust Fund v. Gary's Electric Service Co.

227 F.3d 646, 2000 WL 1369910
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 25, 2000
DocketNos. 99-1727, 99-5862
StatusPublished
Cited by2 cases

This text of 227 F.3d 646 (Electrical Workers Local 58 Pension Trust Fund v. Gary's Electric Service Co.) 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
Electrical Workers Local 58 Pension Trust Fund v. Gary's Electric Service Co., 227 F.3d 646, 2000 WL 1369910 (6th Cir. 2000).

Opinion

OPINION

CLAY, Circuit Judge.

This is a consolidated appeal. In Case No. 99-5862, Petitioner, the National Labor Relations Board (“the Board”), applies to this Court to enforce the Board’s order issued against Respondent, Gary’s Electric Service Company (“Gary’s Electric”). Because there is substantial evidence to support the Board’s findings of fact that Respondent violated Sections 8(a)(5) and (1) of the National Labor Relations Act (“the Act”), 29 U.S.C. § 141 et seq., and because there are no errors of law in the decision, the Board’s order is ENFORCED.

In Case No. 99-1727, Defendant, Gary’s Electric, appeals from the judgment entered by the United States District Court for the Eastern District of Michigan granting summary judgment to Plaintiffs, Electrical Workers Local 58 Pension Trust Fund; Electrical Workers Joint Board of Trustees Vacation Fund; Electrical Workers’ Insurance Fund; Supplemental Unemployment Benefit Fund of the Electrical Industry, Detroit; Electrical Workers Local 58 Annuity Fund, IBEW; Joint Apprenticeship Training Trust Fund; and National Electrical Benefit Fund (“the Funds”), in this action brought by the Funds to enforce two arbitration awards which resulted from Defendant’s alleged breach of the fringe benefit provisions of the Collective Bargaining Agreement between Defendant and the International Brotherhood of Electrical Workers Local 1317 (“the Union”); the first award requires Defendant to make contributions to various fringe benefit funds, and the second award requires Defendant to post a surety bond guaranteeing payment to the benefit fund. For the reasons set forth below, we AFFIRM the district court’s judgment.

I. BACKGROUND

Defendant/Respondent, Gary’s Electric, is a Michigan corporation with its principal place of business located in the City of Waterford, Michigan. Since 1976, Defendant has been engaged in the operation of an electrical construction and maintenance service, serving a variety of residential customers and small shops from its Waterford facility under the direction of its founder and owner, Russell Gary Pipia. Pipia has been a dues-paying member of [650]*650the Union since 1963, and had maintained that status for himself to the time of the hearing before the Board.

In June of 1976, Pipia’s then wife, Anne, signed a letter of assent on behalf of Defendant authorizing Southeastern Michigan Chapter, National Electrical Contractors Association (“NECA”) to serve as its collective bargaining representative for all matters contained in or pertaining to the labor agreement between NECA and the Union. On July 29, 1988, Pipia signed another letter of assent (“the Letter of Assenb-A”) on behalf of Defendant authorizing NECA to serve as its “collective-bargaining representative for all matters contained in or pertaining to the current and any subsequently approved ... labor agreement between NECA and [the] Union.” (J.A. at 102.)1 The Letter of Assent-A also provided that “[t]his authorization, in compliance with the current approved labor agreement, shall be come effective on the 29th day of July, 1988. It shall remain in effect until terminated by the undersigned employer [Defendant] giving written notice to the Southeastern Michigan Chapter, N.E.C.A. and to the Local Union at least one hundred fifty (150) days prior to the then current anniversary date of the applicable approved labor agreement.” (J.A. at, 102.) Furthermore, the Letter of Assenb-A to which Defendant agreed stated as follows:

The Employer [Defendant] agrees that if a majority of its employees authorizes the Local Union to represent them, in collective bargaining, the Employer will recognize the Local Union as the exclusive collective bargaining agent for all employees performing electrical construction work within the jurisdiction of the Local Union on all present and future jobsites [sic].

(J.A. at 102).

At the time Pipia signed the Letter of Assenb-A, NECA and the Union were parties to a collective-bargaining agreement, effective June 3, 1987 to May 31, 1989. NECA and the Union entered into a continuous series of successor agreements, including one effective June 4, 1995 to May 31, 1998 (“the 1995 Agreement”). The 1995 Agreement “applied] to all firms who sign[ed] a Letter of Assent” authorizing NECA to bargain with the Union on their behalf. (J.A. at 311.) Defendant had not provided NECA or the Union with written notice of termination of the Letter of Assent-A prior to the effective date of the 1995 Agreement.

At the time Pipia signed the Letter of Assenb-A, he employed twelve men: two journeymen electricians (Donald Gabbard and Mark McVicar), and nine “helpers” including Pipia’s son, Gary. After execub ing the Letter of Assenb-A, Defendant began remitting dues to the Union on behalf of Gabbard, McVicar, and Gary; Defendant also began making contractually required fringe benefit fund contributions to the Union on behalf of these men. Id.

On July 26,1989, Gabbard, McVicar, and Gary signed cards authorizing the Union to represent them in collective bargaining with Defendant. On April 30, 1990, the Union sent Defendant a letter requesting recognition as the majority representative of Defendant’s employees. This “Agreement for Voluntary Recognition,” stated that “[t]he Union claims, and the Employer acknowledges and agrees, that a majority of its employees has authorized the Union to represent them in collective bargaining,” and stated that Defendant recognized the Union as its employees’ exclusive bargaining representative. Pipia signed the Agreement for Voluntary Recognition on May 10,1990.

On April 30, 1991 and May 15, 1991, respectively, Defendant permanently laid off McVicar and Gabbard from their jobs, and ceased remitting dues and fringe ben[651]*651efit payments to the Union for each of these men. Defendant continued to submit dues and payments on behalf of Gary until he went away to college; however, after four or five years Gary returned to work at Defendant, and Defendant resumed remitting dues to the Union on Gary’s behalf. Pipia at all times remained current on his Union dues.

The Union sent Pipia, as President of Defendant, a letter dated November 22, 1996, wherein the Union advised Pipia as follows:

It has come to our attention that your company is, or may be, in violation of its collective bargaining agreement with this Union, by reason of the operation of your company or its principals, of another company called Gary’s Electrical Service, or by performance of work which would otherwise be performed by your company.
We believe that there is a connection between your company and Gary’s Electrical Service either financially or through management personnel, or both, and we believe that Gary’s Electrical Service was created to circumvent the provisions of our collective bargaining agreement.
In order to determine whether there is a violation of our agreement, we request that you provide answers to the questions on the enclosed questionnaire. Please submit your answers within ten days of this letter.

(J.A.II at 340.) Defendant refused to provide the Union with the information requested via the questionnaire, claiming that Defendant was not then, or ever was, a member of the Union.

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227 F.3d 646, 2000 WL 1369910, Counsel Stack Legal Research, https://law.counselstack.com/opinion/electrical-workers-local-58-pension-trust-fund-v-garys-electric-service-ca6-2000.