In re the Arbitration between Davidoff & Air Surface Coordinators, Inc.

94 Misc. 2d 196, 403 N.Y.S.2d 969, 98 L.R.R.M. (BNA) 2242, 1978 N.Y. Misc. LEXIS 2216
CourtNew York Supreme Court
DecidedMarch 22, 1978
StatusPublished

This text of 94 Misc. 2d 196 (In re the Arbitration between Davidoff & Air Surface Coordinators, 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 the Arbitration between Davidoff & Air Surface Coordinators, Inc., 94 Misc. 2d 196, 403 N.Y.S.2d 969, 98 L.R.R.M. (BNA) 2242, 1978 N.Y. Misc. LEXIS 2216 (N.Y. Super. Ct. 1978).

Opinion

OPINION OF THE COURT

Harold Hyman, J.

Petitioner (hereinafter Union), pursuant to CPLR 7510, moves to confirm the award of the arbitrator based upon a hearing allegedly held pursuant to a collective bargaining agreement executed by it and an employer, Air Surface Coordinators, Inc. (hereinafter Surface). The award made by the arbitrator is dated July 30, 1977. The hearing is purported to have been held on July 21, 1977 pursuant to notice given to Surface and to one CF Air Freight, Inc. (hereinafter CF). The latter corporation is not a signatory of the agreement.

The award is based upon the claims of Union that Surface violated the terms of the agreement in that it "locked-out” their employees (eight in number) and failed to reinstate them with full back pay, benefits, seniority, as well as payment of all fringe benefit contributions and, in addition, that CF was a "joint employer” of said members so that Surface and CF constituted a "single employer.”

The award found in favor of the Union. The arbitrator held that since the employees of Surface’s time cards are put in the same rack used by CF employees; Surface drivers, when they are at the facility usually eat their lunch or dinner in the CF office together with CF employees; Surface and CF employees use the same washroom and lockers; Surface drivers wear uniforms with the CF name (logo) on them; that, although Surface uniforms were purchased by Surface employees themselves, the weekly cleaning bill for uniforms of Surface and CF is split between all of them and the driver identification needed at JFK Airport, which contains the Surface employees’ photographs, lists the driver’s employer as both Surface and CF; that, therefore, CF was a joint employer with Surface and subject to the terms of the agreement. The arbitrator therefore made his award against both Surface and CF holding them jointly liable.

Although Surface responded and appeared in the latter proceeding, CF did not; the latter, CF, taking the position that [198]*198it was not a "joint employer”, not a signatory to the agreement; that is was a separate and distinct entity and, further, that there had been a pre-emption and determination of the identical issues (raised in the arbitration proceeding) by the United States National Labor Relations Board (NLRB) at the instigation and choice of said Union through the agency of its own directly concerned and involved members-employees of Surface. The complaint to the NLRB is dated July 11, 1977, 10 days prior to the alleged notice to arbitrate dated July 21, 1977, which is the basis for petitioner’s present application.

CF by cross motion moves to vacate the so-called "Award of the Arbitrator”. Surface likewise moves to vacate the award of the arbitrator.

It is the opinion of the court that the arbitation proceedings held and the award therein made should be vacated and declared a nullity both as to CF and Surface, and that the cross motions should be granted.

There is no denial that the same, the only employees involved, were members of petitioner (Union) when on July 11, 1977 they made the identical complaint to the NLRB seeking relief against both Surface, their direct employer, and as against CF, contending that it, the latter, was a joint employer.

Union, in its brief, admits that when a dispute is cognizable before a Federal agency (in this case it is the National Labor Relations Board), a question of pre-emption may be present (San Diego Unions v Garmon, 359 US 236); but it further contends, that such pre-emption does not apply where such a Federal administrative agency has not been given exclusive jurisdiction over the issue (People v Bush, 39 NY2d 529).

Petitioner is in error. This court reads the last-cited case to support the position taken by this court. It is said (p 535): "The NLRB had refused to take jurisdiction over the dispute, not even troubling to set out its reasons for declining to do so. The Supreme Court nevertheless held [San Diego Unions v Garmon, supra], that, because of the overwhelming necessity for uniformity of regulation of economic strife that may arguably come within the ambit of the National Labor Relations Act (NLRA), nothing less than an NLRB ruling squarely deciding that particular conduct is neither protected nor prohibited by Federal law would open the door to State court action.”

[199]*199In the instant matter, there was definitive, unqualified preemption by NLRB, which not only took jurisdiction but made unequivocal findings and determination with regard to the alleged violative conduct of Surface and CF; its determination was favorable to Surface and CF in all respects.

Union now also contends, that, the issue of "joint employer status” as to Surface and CF has arisen only within the context of the nature of the written agreement upon an alleged employer (CF) who is not a signatory to said agreement and not within the context of the unfair labor practices charge made to the NLRB; this, even though it sought remedial action therefor in the NLRB proceeding, and the determination it successfully only obtained in the arbitration.

The argument of Union is unacceptable; the relief sought by petitioner herein is, under the circumstances of this case, impermissible.

In the first instance, the charge made to NLRB specifically named both Surface and CF in the caption as the "employers” jointly. It specifically stated in the "charge” that, "On or about July 11, 1977, the above-named employers by their officers, agents and representative [and] that all of said employees made unconditional offers to return to work to said employers. ” (Emphasis supplied.)

The regional director, after due investigation and consideration, held, "insufficient evidence of any violation of the Act,” not that Surface or CF unlawfully locked out or refused to reinstate "said employees” because of their activities on behalf of Local 295 (Union — petitioner herein). The regional director further specifically found and held as to the contention that Surface and CF are joint employers, that "the two companies are separate corporations, separately owned and managed, that labor relations policies for their respective employees are handled separately, and that they maintain separate payrolls * * * that CF is not authorized to and has not discharged or disciplined any ASC [Surface] employees. While the ASC [Surface] drivers were dispatched by CF’s dispatcher (who also sets their routes) and while the drivers may share locker and lunchroom facilities with CF employees and wear the CF logo on their uniforms, such facts are not sufficient to render ASC and CF joint employers. (Cabot Corporation, 223 NLRB 1388; Mobil Oil Corp. 219 NLRB 511; Hychem Contractors Inc., 169 NLRB 274 and Westinghouse Electric Corp. 163 NLRB 914).” (Emphasis supplied.) Accord[200]*200ingly, he found that ASC (Surface) and CF are not joint employers.

Dissatisfied with the above determination, the petitioner’s employees, its members, through the medium of the petitioner and its then attorneys (incidentally, the very same attorneys who are representing petitioner — Union, in the instant matter) took an appeal from the regional director’s decision to the office of the General Counsel of the National Labor Relations Board; the latter in turn denied the appeal, affirmed the regional director "substantially for the reasons” set forth by the regional director.

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Bluebook (online)
94 Misc. 2d 196, 403 N.Y.S.2d 969, 98 L.R.R.M. (BNA) 2242, 1978 N.Y. Misc. LEXIS 2216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-arbitration-between-davidoff-air-surface-coordinators-inc-nysupct-1978.