Frito-Lay, Inc. v. Retail Clerks Union Local No. 7

629 F.2d 653, 105 L.R.R.M. (BNA) 2104, 1980 U.S. App. LEXIS 14953
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 12, 1980
DocketNos. 78-1724, 79-1111
StatusPublished
Cited by12 cases

This text of 629 F.2d 653 (Frito-Lay, Inc. v. Retail Clerks Union Local No. 7) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frito-Lay, Inc. v. Retail Clerks Union Local No. 7, 629 F.2d 653, 105 L.R.R.M. (BNA) 2104, 1980 U.S. App. LEXIS 14953 (10th Cir. 1980).

Opinion

SEYMOUR, Circuit Judge.

These cases both deal with the legality of a provision in the collective bargaining agreement between the Retail Clerks Union Local No. 7 (the Clerks) and a multi-employer bargaining group known as the Denver Retail Grocers (the Grocers), and the Clerks’ efforts to procure and enforce the provision. The provision prohibits employees of suppliers, including salesmen employed by Frito-Lay, Inc. and L’Eggs Products, Inc., from entering retail grocery stores to stock merchandise. However, employees of bakery and dairy companies, the vast majority of whom were represented by Teamsters, are expressly exempted from the operation of the clause. This exemption was negotiated pursuant to a separate agreement between the Clerks and the Teamsters, whereby the Clerks promised to allow all bakery drivers, dairy drivers and the employees of Morton News to “continue all phases and present activities relative to their jobs.” Frito-Lay App. at 20.

Frito-Lay and L’Eggs initiated these actions, alleging that the Clerks’ agreement with the Grocers violated section 1 of the Sherman Act, 15 U.S.C. § 1, and sections 8(b)(4), 8(e) and 303 of the National Labor Relations Act (N.L.R.A.), 29 U.S.C. §§ 158(b)(4), 158(e), and 187. In No. 78-1724, Frito-Lay, Inc. v. Retail Clerks Union Local No. 7, 452 F.Supp. 1381 (D.C.Colo. 1978), the district judge granted the Clerks’ motion for summary judgment and dismissed the action. Thereafter, the Clerks moved for summary judgment in No. 79-1111 against L’Eggs, which the district court granted as well. On appeal, L’Eggs and Frito-Lay seek review of the dismissal of these actions. We hold that the summary judgments were improperly granted and reverse for further proceedings consistent with our opinion.

Rule 56(c) of the Federal Rules of Civil Procedure states that a motion for summary judgment may only be granted if “there is no genuine issue as to any material fact and . . . the moving party is entitled to a judgment as a matter of law.” Under this standard, we have emphasized that “no margin exists for the disposition of factual issues.” Jones v. Nelson, 484 F.2d 1165, 1168 (10th Cir. 1973). “[A]ny relief contemplated by Rule 56, F.R.Civ.P. is drastic and should be applied with caution to the end that litigants will have trial on bona fide factual disputes.” Id. Accordingly, in reviewing decisions on summary judgment, “appellate courts must consider factual inferences tending to show triable issues in a light most favorable to the existence of such issues.” Redhouse v. Quality Ford Sales, Inc., 511 F.2d 230, 234 (10th Cir. 1975). Viewing the record in the light most favorable to Frito-Lay and L’Eggs reveals the following facts.

The Denver Retail Grocers is a multi-employer bargaining unit composed of Safeway Stores, Inc., Albertson’s, Inc. and King Sooper, Inc. The Grocers’ employees engaged in handling merchandise are represented by the Clerks. The jurisdiction of the Union extends throughout Colorado, and most of the 11,500 members of the Clerks are retail clerks in supermarkets.

When the Clerks and the Grocers commenced negotiation of a new collective bargaining agreement in March, 1976, one of the principal demands made by the union was that stocking and shelving work, which was being performed in the stores by salesmen and delivery drivers, be assigned to the Clerks. Evidence was presented below showing that ten or fifteen years earlier the employees of suppliers did not handle the merchandise beyond the back door at all. However, when a number of suppliers began to develop sophisticated merchandising and code dating systems which they trained their own employees to implement in the stores, the Grocers raised no objections.'

In 1973, the Clerks proposed a clause similar to the provision under consideration [657]*657here. A contract provision was finally agreed upon which, for the first time, prohibited advance or book salesmen from stocking merchandise in the store. However, it expressly recognized the right of driver salesmen and rack jobbers to order, stock, display and rotate their merchandise.

During the 1976 negotiations, the Clerks initially demanded a contract provision that would guarantee to them all in-store marketing work presently done by driver salesmen and rack jobbers. The Grocers rejected that proposal out of hand on the ground that such a provision would create problems with the Teamsters who represented many of the delivery drivers. The Clerks then met with representatives of the Colorado-Wyoming Joint Counsel of Teamsters. In that meeting, the Clerks agreed to alter their demands so that bakery and bread drivers and employees of Morton News Company would be allowed to continue performing stocking work inside the stores. The Grocers quickly assented to the Clerks’ modified proposal and agreed to the following contract provision:

“Effective July 1, 1976, all rack jobbers and driver salesmen will make their deliveries to the back room at which time it will become bargaining unit work exclusively with the following exceptions:
Bread or bakery drivers and dairy drivers shall be allowed to continue as they have in the past.
If the Employer violates this Section by using non-bargaining unit people, then the Employer will pay to the most senior part-time clerk an amount equal to the journeyman clerk rate for the time spent by a non-bargaining unit person performing bargaining unit work.”

Frito-Lay App. at 45.

After the clause went into effect, there was considerable dispute as to the reach of the exemptions. The Clerks took the position that drivers for cookie companies, who were not represented by the Teamsters, did not fall within the exemption for bread or bakery drivers. Only after an arbitrator specifically ruled that the exemption covered drivers for cookie companies did the Clerks concede the right of those employees to stock their companies’ products.

There was also some confusion about whether the employees of Morton News Company, whom the Teamsters did represent, would be allowed to continue to enter the stores as they had in the past. Although the collective bargaining agreement contained no exemption for these employees, the Clerks had assured the Teamsters that the Morton News employees would not be affected by the agreement. Subsequently, the Clerks issued a letter stating that the Teamster-represented Morton News employees could continue to work in the stores as before. The Union later agreed, at the Grocers’ request, to exempt all other news distributors from the clause as well.

As a result of the clause, the employees of L’Eggs and Frito-Lay were prohibited from performing their usual in-store functions, since they did not fall within the exemptions prompted by the Clerks’ contract with the Teamsters.

No. 78-1724:

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629 F.2d 653, 105 L.R.R.M. (BNA) 2104, 1980 U.S. App. LEXIS 14953, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frito-lay-inc-v-retail-clerks-union-local-no-7-ca10-1980.