In re Arbitration between American Federation & Allied Mills, Inc.

196 Misc. 517, 91 N.Y.S.2d 732, 1949 N.Y. Misc. LEXIS 2704
CourtNew York Supreme Court
DecidedApril 27, 1949
StatusPublished
Cited by2 cases

This text of 196 Misc. 517 (In re Arbitration between American Federation & Allied Mills, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Arbitration between American Federation & Allied Mills, Inc., 196 Misc. 517, 91 N.Y.S.2d 732, 1949 N.Y. Misc. LEXIS 2704 (N.Y. Super. Ct. 1949).

Opinion

Batt, J.

This is a proceeding under section 1450 of the Civil Practice Act to direct an arbitration of alleged disputes that have arisen between the parties under a contract dated December 29, 1946, but effective July 1, 1946.

Said contract by paragraph 14 thereof provides: In the event of controversy, any and all controversies and grievances shall be settled, if possible, by the employees and the management of the Milling Company. In the event that a satisfactory adjustment cannot be reached between the parties as stated above, the matter in dispute will be submitted to a Board of Arbitration which shall consist of three members and be selected in the following manner: Each party to this agreement shall select one member to the Board of Arbitration within five (5) days after failure to settle question or questions in dispute. The two members of the Board of Arbitration shall within ten (10) days of their selection select a third member to the Board of Arbitration. The decision of the majority of the said Board shall be final and binding upon both parties to this agreement. Each party shall bear the expense of its representative, the expense of the third member together with any other expense of the arbitration shall be equally divided between the party of the first part and the party of the second part. There shall be no suspension-of operations during negotiations.”

The petitioner claims that a dispute has arisen between the parties relating to the discharge of three employees of the company. It is claimed that said discharges were in violation of the seniority clause of the contract and resulted from the adoption by the company of a pension plan which provided for retirement of employees at the age of sixty-five years. The petitioner claims that the company, regardless of the seniority clause, of the contract, has refused to arbitrate the alleged dispute.

The company claims that the dispute is not within the purview of the contract and that the petitioner has waived and abandoned any right to compel arbitration and is guilty of laches.

The facts of the alleged dispute are as follows: On March 1, 1945, the company promulgated its pension plan which provided for compulsory retirement of employees at sixty-five years of age retroactive to January 1,1944. In April, 1945, the plan was outlined to the employees by means of a booklet given each employee. On April 11, 1946, a copy of the booklet was posted on the bulletin board in the plant, calling attention of the employees to these provisions. On May 3,1946, the three employees in question were notified that as they had passed the retirement age, they would [519]*519be retired January 1,1947. The notification of May 3,1946, was given during the period of the 1945 contract. Thereafter a new contract between the parties was executed, effective July 1,1946, but actually signed on December 29,1946. It is claimed that the petitioner made no demand during the negotiations leading up to the execution of the 1946 contract relating to the company’s retirement plan and at no time was the matter discussed during said negotiations until the time the contract was signed. The 1946 contract contains no reference to said retirement plan. On January 6, 1947, the petitioner notified the company that the retirement of the three men gave rise to a grievance which should be arbitrated pursuant to the provisions of the arbitration clause of the agreement identical in form to that contained in the 1945 agreement hereinabove referred to. On January 15, 1947, the petitioner submitted the controversy to the United States Mediation and Conciliation Service. Subsequently, a conference took place with representatives of that service, the petitioner and company, but no action was ever taken by the Mediation Service. On April 7, 1947, the petitioner again requested that the retirement of the three men be arbitrated. On April 17,1947, the company was notified that the petitioner had filed with the National Labor Relations Board an unfair labor practice charge because of its refusal to bargain relative to its retirement plan. No action was taken on this charge and on June 11,1947, the petitioner withdrew the charge. Later a new contract was made for the period from July 1,1947 to July 1,1948. On December 9,1947, the union filed a new unfair labor practice charge for a refusal to bargain on pension plans. No action on this charge was taken by the National Labor Relations Board except to notify the company of the filing of the charge. This charge was withdrawn August 10, 1948. Subsequently a new contract was made between the parties for the year ending July 1, 1949, after demand by the union as of April 29, 1948, to negotiate a satisfactory pension plan. The new contract made no reference to pension plans, nor had any of the previous contracts made any reference thereto. On August 16,1948, the union filed its third unfair labor practice charge, charging failure to bargain on the subject of a pension plan. A hearing was had on this charge on December 20, 1948, before a trial examiner appointed by the National Labor Relations Board. Subsequently, the trial examiner filed his recommendations, to the effect that the company should cease and desist refusing to bargain on pension plans. The report of the trial examiner was affirmed by an order of the National Labor Relations Board dated April 7,1949. This order directs affirma[520]*520tive action by the company as follows: “ (a) IJpon request, bargain collectively in respect to its £ Retirement Plan ’ with American Federation of Grain Millers Local 110 (A.F.L.) as the exclusive representative of all the employees in the aforesaid unit.”

In the decision in Inland Steel Co. v. National Labor Relations Board (170 F. 2d 247) decided September 23, 1948, it was held that an employer was required to bargain collectively with its employees with respect to retirement and pension plans. Prior to that decision, it had been held in a series of decisions by the National Labor Board that the subject of pension and retirement plans was solely a management function and not subject to collective bargaining in the absence of a specific contract provision restricting the right.

The following syllabus occurs in Matter of American Salt Corp. [Int. Chem. Workers’ Union] (9 Labor Arbitration Reports 124):

££ Pension and retirement plan instituted by employer but held in abeyance during wartime labor shortage was properly put into effect by employer after war was over, despite union’s objection that retirement of aged employees constituted violation of seniority provisions of contract, where plan had been instituted with full knowledge of employees and was not modified or restricted in any way by contract subsequently negotiated by union.

£ 1 Establishment of retirement plans is prerogative of management in the absence of a specific contract provision restricting this right.” (See, also, Matter of Swift & Co. [United Packinghouse Workers], 9 Labor Arbitration Reports 560; Matter of General Amer. Transp. Corp. [United Steelworkers], 7 Labor Arbitration Reports 773; Matter of McKesson & Robbins, Inc. [Int. Longshoremen’s & Warehousemen’s Union], 6 Labor Arbitration Reports 590; Matter of Metals Disintegrating Co. [United Mine Workers], 4 Labor Arbitration Reports 601.)

In the instant case, the retirement plan was promulgated while the 1944-1945 contract was in effect between the parties and the plan was made retroactive to January 1, 1944.

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196 Misc. 517, 91 N.Y.S.2d 732, 1949 N.Y. Misc. LEXIS 2704, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-arbitration-between-american-federation-allied-mills-inc-nysupct-1949.