Hospital & Health Care Workers v. Children's Hospital

694 F. Supp. 730, 129 L.R.R.M. (BNA) 3068, 1988 U.S. Dist. LEXIS 10322, 1988 WL 94462
CourtDistrict Court, N.D. California
DecidedJuly 19, 1988
DocketNo. C-88-1792 WHO
StatusPublished
Cited by1 cases

This text of 694 F. Supp. 730 (Hospital & Health Care Workers v. Children's Hospital) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hospital & Health Care Workers v. Children's Hospital, 694 F. Supp. 730, 129 L.R.R.M. (BNA) 3068, 1988 U.S. Dist. LEXIS 10322, 1988 WL 94462 (N.D. Cal. 1988).

Opinion

OPINION AND ORDER

ORRICK, District Judge.

The petition to compel arbitration (“petition”) of Hospital & Health Care Workers, Local 250, SEIU, came on for hearing on June 30, 1988. Petitioner asks the Court to compel arbitration of a dispute over the terms of a collective bargaining agreement (the “Agreement”) between the parties. Respondents are Children’s Hospital of San Francisco, Marshal Hale Memorial Hospital, Mary’s Help Hospital of Seton Medical Center, Mt. Zion Hospital and Medical Center, Presbyterian Hospital of Pacific Medical Center, St. Francis Memorial Hospital, St. Mary’s Hospital and Medical Center, and Affiliated Hospitals of San Francisco.

The dispute between the parties is a technical one, demanding a careful scrutiny of the intricacies of the time and form requirements of the collective bargaining agreement. This dispute over technicali[731]*731ties arose from the pressures of sky-rocketing health care costs on the three-year-old Agreement, which imposed on respondents the full cost of their employees’ insurance premiums. The parties began collective bargaining to modify the contract in January 1988. They had negotiated over several other provisions, when respondents submitted proposals on March 7, 1988, to impose the cost of a portion of health insurance premiums upon the hospital workers. Respondents claimed these costs were far too high for the hospitals to bear without some contribution from their employees. Petitioner refused to bargain over the proposals on the grounds that they were untimely and improperly made, so that there was no time to respond to them before the end of the collective bargaining period on May 1, 1988. Although the Court cannot rule upon the merits of the parties collective bargaining positions, it is compelled to note the irony of a situation in which even hospitals claim they cannot provide a paid health care plan for their own employees.

I

The factual and procedural history of this case is technical and detailed. The twists and turns of the collective bargaining period are exhaustively set forth in the papers submitted by the parties and, therefore, the Court will only recount a brief summary of those events. Petitioner contends that respondents failed to comply with both time and form requirements of paragraph 258 of the Agreement in making their proposals to modify the health care provisions. See Petition, filed May 16, 1988, Exh. A, It 258. Petitioner filed two grievances on April 5, 1988, in accordance with the grievance and arbitration provisions of the Agreement, complaining of this failure. After several exchanges of letters, petitioner concluded that respondents were not going to acknowledge their failure, and demanded arbitration of the grievances pursuant to the Agreement’s terms. Respondents refused to arbitrate the grievances because they contended that the grievances were without merit. They argued that their modification proposals were properly on the bargaining table pursuant to their timely notice of termination of the Agreement.

Petitioner then filed the petition now before the Court. Respondents oppose the petition both on the grounds that the grievances have no merit and that the arbitration provisions of the Agreement are no longer in effect. They claim that the Agreement terminated on May 1, 1988, before the petition was filed. Therefore, they argue that they have no contractual obligation to arbitrate the grievances.

II

The Supreme Court has recently reaffirmed the basic principles that the Court must apply to determine whether or not the parties agreed to arbitrate the grievances at issue in this case. AT & T Technologies, Inc. v. Communications Workers of America, 475 U.S. 643, 106 S.Ct. 1415, 89 L.Ed.2d 648 (1986). AT & T Technologies set forth four principles that had been decided over twenty-five years ago in the famous Steelworkers Trilogy: United Steelworkers of America v. American Manufacturing Co., 363 U.S. 564, 80 S.Ct. 1343, 4 L.Ed.2d 1403 (1960); United Steelworkers of America v. Warrior & Gulf Navigation Co., 363 U.S. 574, 80 S.Ct. 1347, 4 L.Ed.2d 1409 (1960); and United Steelworkers of America v. Enterprise Wheel & Car Corp., 363 U.S. 593, 80 S.Ct. 1358, 4 L.Ed.2d 1424 (1960). First, AT&T Technologies held that “ ‘arbitration is a matter of contract and a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit.’ ” 475 U.S. at 648, 106 S.Ct. at 1418, quoting Warrior & Gulf, 363 U.S. at 582, 80 S.Ct. at 1353. Second, “the question of arbitrability — whether a collective-bargaining agreement creates a duty for the parties to arbitrate the particular grievance— is undeniably an issue for judicial determination,” unless the parties clearly provide otherwise. 475 U.S. at 649, 106 S.Ct. at 1418, citing Warrior & Gulf, 363 U.S. at 582-83, 80 S.Ct. at 1352-53.

Applying these two principles to the language of the Agreement in this case, it [732]*732is clear that this Court, and not the arbitrator, has jurisdiction to decide the question of arbitrability. The Agreement confers only limited jurisdiction upon the arbitrator and does not express any agreement to submit questions of arbitrability to the arbitrator. Paragraph 250 of the Agreement provides that all grievances “may, at the request of either party, be submitted to arbitration ...,” but the only type of disputes that may be grieved are those that concern “the interpretation or application of the terms of this Agreement, including a discharge case.” See Petition, Exh. A, ¶¶ 246, 249. Paragraph 253 then sets forth the scope of the power of the arbitrator:

“The Arbitrator shall have no power to add to, to subtract from or to change any of the terms or provisions of this Agreement. His or her jurisdiction shall extend solely to claims of violation of specific written provisions of the Agreement and involve only the interpretation and application of such Agreement____ Without limitation upon the foregoing, if either party shall give notice of a desire to modify ... the arbitrator shall have no power to determine what modifications or changes, if any, should be made in the Agreement or otherwise to decide any question with respect thereto, other than the sufficiency and effect of the notice itself.”

This language makes clear that the jurisdiction of the arbitrator is strictly limited and that the question of arbitrability must be decided by this Court by application of the principles of federal labor law to the Agreement.

The third principle set forth in AT & T Technologies was that the “court is not to rule on the potential merits of the underlying claims,” even if the claims appear to be “frivolous” to the Court. 475 U.S. at 649-50, 106 S.Ct. at 1419, citing American Manufacturing Co., 363 U.S. at 568, 80 S.Ct. at 1341. Finally, where the collective bargaining agreement contains an arbitration clause:

[Tjhere is a presumption

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694 F. Supp. 730, 129 L.R.R.M. (BNA) 3068, 1988 U.S. Dist. LEXIS 10322, 1988 WL 94462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hospital-health-care-workers-v-childrens-hospital-cand-1988.