Independent Employees' Union of Hillshire Farm Company, Inc., and Lydia Tratz v. Hillshire Farm Company, Inc.

826 F.2d 530, 125 L.R.R.M. (BNA) 3435, 1987 U.S. App. LEXIS 10720
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 29, 1987
Docket86-2323
StatusPublished
Cited by15 cases

This text of 826 F.2d 530 (Independent Employees' Union of Hillshire Farm Company, Inc., and Lydia Tratz v. Hillshire Farm Company, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Independent Employees' Union of Hillshire Farm Company, Inc., and Lydia Tratz v. Hillshire Farm Company, Inc., 826 F.2d 530, 125 L.R.R.M. (BNA) 3435, 1987 U.S. App. LEXIS 10720 (7th Cir. 1987).

Opinion

HARLINGTON WOOD, Jr., Circuit Judge.

This dispute arose from Hillshire Farm Company, Inc.’s (“the Company”) offer of a forty-five minute overtime work opportunity to an employee who had less seniority than employee Lydia Tratz. Tratz and the Independent Employees’ Union of Hillshire Farm Company, Inc. (“the Union”) brought suit in state court to set aside a portion of the ensuing arbitration award in favor of the Company. After removal of the case to federal court, the district court vacated part of the arbitration award. Independent Employees’ Union of Hillshire Farm Co. v. Hillshire Farm Co., 638 F.Supp.1154 (E.D.Wis.1986). The Company appeals, and we reverse.

I. FACTUAL BACKGROUND

The overtime policy articulated in section 5.07 of the collective bargaining agreement between the Company and the Union provides that supervisors must offer available overtime work to employees who have volunteered to work overtime in the order of the employees’ seniority. 1 On February 7, 1985, Lydia Tratz and Sue Giesen, who had less seniority than Tratz, signed the Company’s voluntary overtime list and both were offered overtime work at the end of their shifts. When they completed their overtime assignments, they asked the supervisor if additional work was available. The supervisor replied that none was available and Tratz punched out and went home. Giesen, however, spied her husband filling ink bottles, talked with him, and approached the supervisor to ask if she could assist her husband in filling the bottles. The supervisor gave his permission and as a result, Giesen worked an additional forty-five minutes of overtime.

*532 The next day, Tratz learned that Giesen had worked the additional overtime and confronted her supervisor. The supervisor said that Giesen had been granted additional overtime because Tratz had already gone home. He admitted, however, that he had erred in allowing Giesen to work the additional overtime without first offering it to Tratz. In an attempt to correct this error, the supervisor offered Tratz forty-five minutes of makeup work at her overtime rate. Tratz refused this offer, maintaining that she was entitled to forty-five minutes of overtime pay. Tratz likely was aware of Hillshire’s past practice in remedying misscheduled overtime assignments, which was to authorize makeup work at an overtime rate in some instances and overtime pay in others. On February 4, 1985, however, three days before the erroneous assignment to Giesen, Hillshire’s director of personnel notified the Union by letter that effective February 10, 1985, Hillshire would eliminate backpay as a remedy for misscheduled overtime.

Tratz and the Union (collectively for the purposes of this opinion “the Union”) brought a grievance, which was submitted to Arbitrator Neil Gundermann in accordance with the terms of the collective bargaining agreement. After conducting a hearing, the arbitrator issued the following award:

1. The Company violated the practice in effect on February 7, 1985, by not compensating the grievant forty-five minutes at her overtime rate due to a violation of Section 5.07.
2. The Company is ordered to pay the grievant forty-five minutes pay at time and one-half.
3. The Company had the right to change its method of remedying violations of Section 5.07 effective February 10, 1985.

The Union filed suit in Wisconsin state circuit court to vacate paragraph 3 of the above award on grounds that it exceeded the scope of the grievance and failed to draw its essence from the collective bargaining agreement. Hillshire petitioned to remove the action to federal court under section 301 of the Labor Management Relations Act, 29 U.S.C. § 185 (1982), the petition was granted, and the district court vacated paragraph 3. Independent Employees’ Union of Hillshire Farm Co. v. Hillshire Farm Co., 638 F.Supp. 1154 (E.D.Wis.1986). The district court held that although paragraph 3 did not exceed the scope of the grievance, it did not draw its essence from any express or implied term of the collective bargaining agreement. In addition, the court held that paragraph 3 actually violated an express term of the collective bargaining agreement. The Company appeals.

II. STANDARD OF REVIEW

In an appeal of a district court decision vacating a portion of an arbitration award, we consider whether the district court exceeded the permissible scope of its review. Our review of the district court’s decision is de novo. The Union concedes that the scope of judicial review of arbitration awards is narrow. See Ethyl Corp. v. United Steelworkers, 768 F.2d 180, 183-84 (7th Cir.1985), cert. denied, 475 U.S. 1010, 106 S.Ct. 1184, 89 L.Ed.2d 300 (1986). Indeed it is “close to nonexistent” if the arbitrator “interprets” rather than “revises” the collective bargaining agreement. Camacho v. Ritz-Carlton Water Tower, 786 F.2d 242, 244 (7th Cir.), cert. denied, - U.S. -, 106 S.Ct. 3282, 91 L.Ed.2d 1 (1986). This extremely narrow standard of review recognizes that the parties to a collective bargaining agreement have bargained for arbitration as a dispute resolution process and fosters that process. See Ethyl Corp., 768 F.2d at 183-84; see also Camacho, 786 F.2d at 244 (noting that “parties have bargained for non-judicial decisions and are entitled to rely on the decisions they receive”). The deferential standard “is essential to prevent a ‘judicialization’ of the arbitration process.” E.I. DuPont de Nemours and Co. v. Grasselli Employees Independent Association, 790 F.2d 611, 614 (7th Cir.) (citing Ethyl Corp., 768 F.2d at 184), cert. denied, - U.S. -, 107 S.Ct. 186, 93 L.Ed.2d 120 (1986).

*533 The Supreme Court has stated the scope of review: the arbitrator’s award is enforceable “so long as it draws its essence from the collective bargaining agreement.” United Steelworkers v. Enterprise Wheel & Car Corp., 363 U.S. 593, 597, 80 S.Ct. 1358, 1361, 4 L.Ed.2d 1424 (1960). The phrase “draws its essence” is a broad concept. A court must affirm the award even if the court believes the arbitrator clearly misconstrued the agreement or the court strongly disagrees with the arbitrator’s interpretation. E.I. DuPont de Nemours, 790 F.2d at 614, International Union, UAW v. Keystone Consolidated Industries, 782 F.2d 1400

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826 F.2d 530, 125 L.R.R.M. (BNA) 3435, 1987 U.S. App. LEXIS 10720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/independent-employees-union-of-hillshire-farm-company-inc-and-lydia-ca7-1987.