Frontier North Inc v. International Brotherhood of Electrical Workers

CourtDistrict Court, N.D. Indiana
DecidedMay 4, 2021
Docket1:20-cv-00281
StatusUnknown

This text of Frontier North Inc v. International Brotherhood of Electrical Workers (Frontier North Inc v. International Brotherhood of Electrical Workers) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frontier North Inc v. International Brotherhood of Electrical Workers, (N.D. Ind. 2021).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA FORT WAYNE DIVISION

FRONTIER NORTH INC., ) ) Plaintiff/Counter Defendant, ) ) v. ) Cause No. 1:20-CV-281-HAB ) INTERNATIONAL BROTHERHOOD ) OF ELECTRICAL WORKERS, ) LOCAL 723, ) ) Defendant/Counter Plaintiff. )

OPINION AND ORDER

Leaving Australia is the hardest thing I have ever done. - Barry Gibb With all due respect to the former British penal colony, the eldest Bee Gee has never tried to overturn a labor arbitration order in federal court. Plaintiff Frontier North, Inc. (“Frontier”), displeased by the outcome of the arbitration order sustaining a grievance filed by Defendant International Brotherhood of Electrical Workers, Local 723 (the “Union”), is now before the Court attempting the legal equivalent of climbing Everest. Despite Frontier’s best efforts, the Court concludes that the arbitrator’s order withstands judicial review. As such, judgment will be entered in favor of the Union. A. Factual Background In 2010, Frontier purchased certain telecommunication assets in Indiana from Verizon. Along with those assets, Frontier inherited three collective bargaining agreements with the Union: the IBEW Local 723 Indiana White Book Agreement (the “White Book”); the IBEW Local 723 Indiana Statewide Construction Agreement (the “Blue Book”); and the IBEW Local 723 Red Book Agreement (the “Red Book”). Frontier continued Verizon’s practice of using non-union construction contractors to supplement the work of its union employees, known as Construction Techs. For union employees covered by the White and Blue Books, Frontier’s use of contractors was governed by Section 13.1 of those agreements. That section provided: 13.1 Nothing in this Agreement shall be construed to limit the Company in the employment of such contract labor as in the discretion of the Company may become necessary for the proper construction, installation, maintaining and support of communication facilities owned, served and/or operated by the Company for the rendition of proper and adequate communication service to the Public. The Company shall not, however, enter into any contractual arrangement for the construction, installation, and current maintaining and support of communication facilities as may result in the layoff and/or part-timing of its employees customarily performing work of the same nature as that to be provided under the contractual arrangement. (ECF No. 34-1 at 5). From the time of the acquisition through the date of the arbitration hearing, Frontier’s financial situation deteriorated through a combination of technological advances and poor business decisions. As a result, Frontier drastically cut expenses, including payroll costs. Frontier terminated almost 50% of its non-union workforce in Indiana. To reduce its union workforce, Frontier offered what amounted to financial incentives for those employees to quit, known as an ISP. Frontier offered an ISP to approximately 2,700 union employees in May 2017, including its Construction Techs. Frontier had hoped that eight of the Union-represented Construction Techs would accept the ISP, but only six took it up on its offer. Frontier did not replace any of those six employees.

The Union filed the grievance in this case on June 25, 2017, alleging that Frontier had violated the CBAs by using contractors while refusing to staff the vacated Construction Tech positions. The parties selected Arbitrator Robert J. Vana to arbitrate the dispute, and hearings were held on May 28, 2019, and January 7, 2020. Arbitrator Vana issued his Opinion and Award on May 11, 2020. Arbitrator Vana concluded that Frontier’s use of contractors, under the

circumstances presented, was a violation of Section 13.1 of the White and Blue Books. Accordingly, he directed Frontier to “backfill” the three positions vacated by union employees whose employment was governed by those CBAs. He further concluded that Frontier had not violated the Red Book, so no relief was awarded with respect to the three positions vacated under that CBA. Frontier instituted the instant lawsuit on August 7, 2020, seeking to overturn Arbitrator Vana’s Opinion and Award. Now before the Court are cross-motions for summary judgment filed by the parties. (ECF No. 33, 35). Both motions are fully briefed and ripe for determination. B. Legal Analysis

1. Summary Judgment Standard Summary judgment is warranted when “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). The non-moving party must marshal and present the Court with evidence on which a reasonable jury could rely to find in their favor. Goodman v. Nat’l Sec. Agency, Inc., 621 F.3d 651, 654 (7th Cir. 2010). A court must deny a motion for summary judgment when the nonmoving party presents admissible evidence that creates a genuine issue of material fact. Luster v. Ill. Dep’t of Corrs., 652 F.3d 726, 731 (7th Cir. 2011) (citations omitted). A court’s role in deciding a motion for summary judgment “is not to sift through the evidence, pondering the nuances and inconsistencies, and decide whom to believe. The court has one task and one task only: to decide, based on the evidence of record, whether there is any material dispute of fact that requires a trial.” Waldridge v. Am. Heochst Corp., 24 F.3d 918, 920 (7th Cir. 1994). Facts that are outcome determinative under the applicable law are material for summary judgment purposes. Smith ex rel. Smith v. Severn, 129 F.3d 419, 427 (7th Cir. 1997). Although a

bare contention that an issue of material fact exists is insufficient to create a factual dispute, a court must construe all facts in a light most favorable to the nonmoving party, view all reasonable inferences in that party’s favor, Bellaver v. Quanex Corp., 200 F.3d 485, 491–92 (7th Cir. 2000), and avoid “the temptation to decide which party’s version of the facts is more likely true,” Payne v. Pauley, 337 F.3d 767, 770 (7th Cir. 2003). Additionally, a court is not “obliged to research and construct legal arguments for parties, especially when they are represented by counsel.” Nelson v. Napolitano, 657 F.3d 586, 590 (7th Cir. 2011). The fact that the parties have filed cross-motions for summary judgment does not alter the standard. When evaluating each side’s motion, the court simply “construe[s] all inferences in favor

of the party against whom the motion under consideration is made.” Metro. Life Ins. Co. v. Johnson, 297 F.3d 558, 561–62 (7th Cir. 2002) (quoting Hendricks-Robinson v. Excel Corp., 154 F.3d 685, 692 (7th Cir. 1998)). 2. Judicial Review of Labor Arbitration Orders Arbitration decisions receive a “hospitable reception” in federal court, and then some. See Butler Mfg. Co. v. United Steelworkers of Am., 336 F.3d 629, 630 (7th Cir. 2003). Courts show “extreme deference” to an arbitrator’s award in a dispute about a collective bargaining agreement.

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Frontier North Inc v. International Brotherhood of Electrical Workers, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frontier-north-inc-v-international-brotherhood-of-electrical-workers-innd-2021.