International Association of MacHinists District No. 8, Afl-Cio v. Campbell Soup Company

406 F.2d 1223, 70 L.R.R.M. (BNA) 2569, 1969 U.S. App. LEXIS 8977
CourtCourt of Appeals for the Seventh Circuit
DecidedFebruary 11, 1969
Docket16924
StatusPublished
Cited by34 cases

This text of 406 F.2d 1223 (International Association of MacHinists District No. 8, Afl-Cio v. Campbell Soup Company) 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
International Association of MacHinists District No. 8, Afl-Cio v. Campbell Soup Company, 406 F.2d 1223, 70 L.R.R.M. (BNA) 2569, 1969 U.S. App. LEXIS 8977 (7th Cir. 1969).

Opinion

KILEY, Circuit Judge.

The question presented on appeal is whether the district court erred in enforcing an arbitration award restoring an employee to the position from which defendant Campbell Soup Company discharged him because of his conviction of violating an Illinois gambling law. We find no error, and affirm.

Under its Plant Rule 7, Campbell discharged Bruno Kmiec, after his conviction on a guilty plea to a misdemeanor violation of the Illinois gambling laws for taking bets on its premises. Plaintiff Union, 1 by virtue of its bargaining agreement with Campbell and for the benefit of member Bruno Kmiec, filed a grievance seeking restoration of Kmiec to his position with full back pay. Campbell denied the grievance and the matter was submitted to arbitration. The stipulated arbitration issue was: “Was the discharge of Bruno Kmiec * * * for cause and if not, what remedy is appropriate?” The arbitrator found Kmiec was not discharged for cause and awarded him restoration to his former position without impairment of seniority, but denied him back pay. Campbell refused to reinstate Kmiec, and the Union brought this suit under Sec. 301(a) of the National Labor Relations Act. 2 Campbell *1225 answered, relying upon its authority to discharge under Rule 7 and the bargaining agreement, and counterclaimed to vacate the award as invalid and unenforceable.

Both parties made motions for summary judgment. The district court denied Campbell’s motion and on authority of Local 453, Int. Union of Elec., Radio & Machine Workers v. Otis Elevator Co., 314 F.2d 25 (2d Cir. 1963), granted summary judgment for the Union, ordering Campbell to comply with the arbitrator’s award, and ordering the arbitrator to determine what, if any, back pay is due because of Campbell’s non-compliance. Campbell’s appeal followed.

The issue was submitted by mutual action of the parties and no claim is made that the arbitration was not conducted properly. The arbitrator found these facts: Kmiec had been a Campbell sheet metal worker since 1946, and had been a Union steward for several years before his discharge. He was arrested in the plant on February 23, 1966, under a charge of “keeping a book” for gambling. He was suspended the same day. The original charge, a felony, was reduced to a misdemeanor in the Cook County Criminal Court on March 22, 1966. Kmiec pleaded guilty, was fined $100.00 and placed on probation for one year. Campbell fired him on March 31 for violation of Rule 7 of Campbell’s Rules for Personal Conduct, which called for a discharge for the first offense of violating any penal law on the Campbell premises.

Campbell challenges the arbitrator’s authority to decide Kmiec was not discharged for cause, and to award reinstatement, find him subject to discipline but lessen the penalty imposed by virtue of Campbell Rule 7. It insists that the arbitrator’s award is not drawn from the collective bargaining agreement and that he imposed his own brand of industrial justice” which contravenes the rule in United Steelworkers of America v. Enterprise Wheel and Car Corp., 363 U.S. 593, 80 S.Ct. 1358, 4 L.Ed.2d 1424 (1960). We think it is clear from the issue submitted to the arbitrator that he was faithful to his obligation and substantially followed the Supreme Court guidelines in Enterprise. Local 7-644, Oil, Chemical & Atomic Workers v. Mobil Oil Co., 350 F.2d 708, 711 (7th Cir. 1965), cert. denied, 382 U.S. 986, 86 S.Ct. 563; 15 L.Ed.2d 474 (1966).

In considering whether Kmiec was discharged “for cause, and if not, what remedy is appropriate,” (emphasis added) the arbitrator discussed the contentions of the Union and Campbell in relation to Company Rules 7 3 and 30 4 which are promulgated under Campbell’s reserved right in Sec. XIII of the labor agreement to “discharge or discipline for cause.” He first rejected the Union contentions that Kmiec, a twenty-year employee, was unaware of Rules 7 and 30, and that there was no proof of Kmiec’s offense being committed on the premises.

The arbitrator then resolved an apparent “ambiguity” in considering the rules together. He found that Rule 30’s “relatively mild punishment” for a gambling offense on the Company premises “pulled the rug” from under the Company’s contention that a gambling offense was of the “utmost gravity.” He decided that the reasonableness of the Rule 7 provision of discharge of “any penal law” could be challenged where the Illinois penal laws ranged from “murder to nuisance” and the discharge applied to a minor offense as well as to a serious one. He stated that “with respect to gambling” the penalties under the two rules were disproportionate.

*1226 The arbitrator upon these considerations thought it fitting to take account of the “nature and extent” of Kmiec's offense and his employment background with Campbell. He found one lesser offense and four warnings the only blemishes on an otherwise “by and large * * * very good” record of twenty years of continuous service. He recognized that Kmiec was “vulnerable” to some punishment. But he thought the year’s probation granted at the trial of the gambling offense “rationalizes keeping in effect * * * at least for the probation period,” the suspension imposed by Campbell after Kmiec’s conviction. On the basis that Kmiec had “learned his lesson” the arbitrator decided that the discharge should be converted to a suspension. The award ordered forthwith reinstatement of Kmiec to his job with seniority unimpaired but without back pay from the date of his offense to the date of his reinstatement.

In Textile Workers Union of America v. American Thread Co., 291 F.2d 894, 899 (4th Cir. 1961), the court said the arbitrator found implicitly that there was just cause for the discharge. The court, Judge Sobeloff dissenting, held that the arbitrator went beyond the terms of submission and that his award which undertook to impose a lesser discipline than discharge should not be enforced. There the discharge was for failure to properly perform the work. This was specified in the bargaining agreement as just cause for discharge. The bargaining contract prohibited the arbitrator from making an award affecting a change, modification, or addition to the agreement. Those provisions are not in the agreement before us and, moreover, the arbitrator here express!y found no just cause for the discharge.

The court in Truck Drivers and Helpers Union v. Ulry-Talbert Co., 330 F.2d 562 (8th Cir. 1964), found that a narrowly restricted arbitration clause precluded the arbitrator from finding the Company justified in disciplining the employee while also finding the discharge an excessive penalty. Similarly, in the recent Local 342, United Automobile, Aerospace & Agricultural Implement Workers v. T. R.

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406 F.2d 1223, 70 L.R.R.M. (BNA) 2569, 1969 U.S. App. LEXIS 8977, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-association-of-machinists-district-no-8-afl-cio-v-campbell-ca7-1969.