Highland Mining Co. v. United Mine Workers of America

105 F. App'x 728
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 14, 2004
DocketNo. 03-5019
StatusPublished
Cited by6 cases

This text of 105 F. App'x 728 (Highland Mining Co. v. United Mine Workers of America) 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
Highland Mining Co. v. United Mine Workers of America, 105 F. App'x 728 (6th Cir. 2004).

Opinions

LAWSON, District Judge.

Highland Mining Company filed a lawsuit in the district court to set aside a labor arbitrator’s award that ordered Highland to pay certain overtime wages to one of the defendant Union’s members. The district court rejected Highland’s argument that the award imposed obligations on the employer that were not expressly allowed by the applicable collective bargaining agreement (CBA). We conclude that the arbitrator acted within his authority when he construed the ambiguous terms of the CBA and ordered payment of the overtime wages. We therefore affirm the judgment of the district court.

I.

The dispute in this case arises from the grievance of union member David Gatten, who contended that Highland failed to pay overtime wages for 1.5 hours of his workweek of April 23, 2001 in violation of the CBA. The CBA in this case consisted of a Memorandum of Understanding (MOU) between Highland and the International Union, United Mine Workers of America (UMW), which adopted, as modified by the MOU, the National Bituminous Coal Wage Agreement of 1998. The grievance was prosecuted on behalf of Gatten by UMW Local 1793.

The dispute centered on the interpretation of Section 8(E) of the MOU, which defined the circumstances in which Highland was obliged to pay overtime wages at the rate of one-and-one-half of the normal contract wage. That section reads:

(1) Overtime at time and one half rate will be paid only for time worked over 40 hours in the workweek, and there will be no pyramiding of overtime.
(2) Paid time off for Holidays, Bereavement, Jury Duty, Military Duty, Personal or Sick Leave, Vacation (of any type), or any other paid time off (or pay in lieu of time off), shall not be compensated on the basis of any regularly scheduled overtime or other overtime.
(3) Paid time off for Jury Duty, Military Duty, Bereavement Days, Floating Vacation Days, Personal or Sick Leave Days and Regular Vacation shall be counted in calculating toward the accrual of 40 hours in the work week in which they occur, for purposes of determining entitlement to time and one-half pay for time worked over 40 hours in the work week. Hours for holidays will be counted in accordance with Section 9.F below, and hours for Union business will be counted in accordance with paragraph 4 below.
(4) Authorized time off for Union business will be counted toward the accrual of 40 hours in the work week in which such time off occurs, for purposes of determining entitlement to time and one half pay for time worked over forty hours in the work week, except that leaves of absence of Article XVII of the NBCWA will not be so counted.

J.A. at 18-19.

According to arbitrator Michael E. Zobrak, the language of Section 8(E) represented a compromise of a dispute between Highland and the UMW over the manner of calculating overtime. He explained that prior to the current MOU, employees were paid overtime rates calculated on a daily basis when the employee’s work hours exceeded eight in a single day. Highland apparently insisted that overtime should be paid on a weekly basis only after an employee exceeded forty hours worked. The resulting compromise called for overtime only after an employee worked more than forty hours in a workweek or more than ten hours in a single day for “inside employees,” that is, those who worked underground. The language quoted above [730]*730was intended to memorialize that compromise.

Gatten was scheduled to work an eight-hour shift for each weekday during the week of April 23, 2001. He worked 33.5 hours over four consecutive days, Monday through Thursday, and was paid at the normal rate (“straight time”) for those hours. On Friday, the fifth day of his workweek, he scheduled a vacation day. He was paid for eight hours at the straight time rate for that day. Thus, Gatten received 41.5 hours of straight time pay for the week. Gatten believed he was entitled to overtime pay rather than straight time pay for the 1.5 hours in excess of the forty-hour workweek. Highland disagreed, reasoning that in order for an employee to receive payment at the overtime rate, the employee must actually perform work after accruing forty hours in a single week.

Gatten’s grievance was submitted to arbitration in accordance with the CBA. Arbitrator Zobrak conducted a hearing on November 2, 2001 in Henderson, Kentucky and rendered his decision in writing on January 2, 2002 in favor of the employee. He observed that Highland’s interpretation of Section 8(E), which essentially called for no overtime payment for vacation hours under any circumstances, “invalidates the provision of section (e) [sic] which allows for the counting of leave hours toward the accrual of forty (40) hours in the workweek for the purposes of determining entitlement to time and one-half pay for hours worked beyond forty (40) hours in the work week.” J.A. at 36. He found that there was no provision in the MOU that limited the days on which leave could be taken for the purpose of accruing time toward the forty-hour benchmark, and Highland’s construction of the MOU in that fashion “negat[ed] the worth of the hours actually worked.” Ibid. The arbitrator sustained the grievance because he determined that Gatten’s hours credited for work during the week of April 23, 2001 exceeded forty.

Highland filed suit in the United States District Court for the Western District of Kentucky seeking an order vacating the arbitral award. The parties filed cross motions for summary judgment. The district court applied a “highly deferential” standard of review and held that the arbitrator’s conclusions were “rationally supported by the language of the MOU.” J.A. at 42. The court denied Highland’s motion for summary judgment and granted the Union’s motion, which sought a dismissal of the complaint and confirmation of the arbitral award. This appeal followed.

II.

The questions presented to the district court concerned matters of contract interpretation and the authority of labor arbitrators, and therefore they were purely legal in nature. Summary judgment was the appropriate procedural device for resolution of these issues since by its very nature a summary judgment does not involve the determination of disputed questions of fact but is confined to legal questions. Fed.R.Civ.P. 56(c) (summary judgment may be granted only if “there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law”); Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). We review the district court’s legal conclusions de novo. Lautermilch v. Findlay City Sch., 314 F.3d 271, 274 (6th Cir.2003); Int’l Union, UAW v. Dana Corp., 278 F.3d 548, 554 (6th Cir.2002).

However, as the district court observed, review of an arbitrator’s award is governed by “one of the narrowest standards of judicial review in all of American jurisprudence.” Lattimer-Stevens Co. v. United Steelworkers of Am., 913 F.2d [731]*7311166, 1169 (6th Cir.1990).

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105 F. App'x 728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/highland-mining-co-v-united-mine-workers-of-america-ca6-2004.