International Union, United Automobile, Aerospace & Agricultural Implement Workers of America v. Anaconda American Brass Co.

475 F.2d 682, 82 L.R.R.M. (BNA) 3033
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 28, 1973
DocketNos. 72-1818, 72-1819
StatusPublished
Cited by1 cases

This text of 475 F.2d 682 (International Union, United Automobile, Aerospace & Agricultural Implement Workers of America v. Anaconda American Brass Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Union, United Automobile, Aerospace & Agricultural Implement Workers of America v. Anaconda American Brass Co., 475 F.2d 682, 82 L.R.R.M. (BNA) 3033 (6th Cir. 1973).

Opinion

PHILLIPS, Chief Judge.

This litigation under § 301 of the Labor-Management Relations Act1 arose out of the permanent shutdown of two departments of the Anaconda Brass Co., Inc., at Detroit on August 30, 1971. Anaconda had a pension plan agreement which had been executed in addition to its collective bargaining agreement with the appellee labor, union.2

The pension plan agreement provided that any employee under age 65 who shall have been “laid off because of a permanent shutdown of any operation, department or subdivision thereof may elect to retire . . . and receive a ‘75/80’ pension” if the employee had reached his 55th birthday with a stipulated minimum of continuous service with the company. The agreement also provides for “75/80” pension benefits to certain employees under 55 years of age with a stipulated minimum of continuous service. The text of the language in controversy is quoted in the opinion of District Judge John Feikens reported at 340 F.Supp. 651. His findings of facts and conclusions of law are made an appendix to this opinion. Reference is made to the reported opinion of the District Judge and to his findings of fact and conclusions of law (appendix hereto), for a more complete recitation of facts.

Thirty-two employees affected by the permanent shutdown met the qualifications for the 75/80 pension and requested early retirement. The company contended that they could not retire under the early retirement plan, and had only two choices: (1) to quit; or (2) to use their seniority to “bump” other employees with less seniority in other departments which had not been shut down. Faced with these alternatives, the thirty-two employees “bumped” other employees under protest, and this litigation followed. Also involved in the [684]*684suit are the rights of a number of other employees affected by the shutdown, in addition to the thirty-two employees referred to above. Reference is made to the reported opinion and findings of the District Court (Appendix hereto) for details.

Judge Feikens decided practically all issues in favor of the Union. He held that the thirty-two employees had the right to elect early retirement; that “bumped” employees who are now retired on the “75/80” plan may elect to return to work or remain retired under the plan; and that employees “bumped” out of a job have a right to reinstatement with back pay. The company appeals. The Union cross-appeals on two issues: (1) the basis of computation of the pensions of the thirty-two employees found entitled to retire; and (2) the basis of computation of back pay of employees whose jobs are to be restored.

We agree with the Union on the first ground of its cross appeal and modify the judgment of the District Court accordingly. In all other respects we affirm the judgment of the District Court.

Anaconda contends that the interpretation of the pension plan by the District Court is contrary to the interpretation which the parties have placed upon the disputed language. It is asserted that “there never has been a situation in Detroit, or even corporate-wide, of an employee being granted 75/80 pension benefits in a situation where he could bump, but refused to do so.” This assertion is supported by an affidavit. However, the record also contains the following letter written to the District Judge:

“Hon. John Feikens March 8, 1972
Judge, U. S. District Court Eastern District
851 Federal Building Detroit, Michigan 48226
Re: United Automobile Workers v. Anaconda American Brass Company Federal District Court Eastern District of Michigan
Southern Division
Civil Action No. 37289
“Dear Sir:
“At the hearing on the Motion for Summary Judgment in the above matter, held on Monday, March 6, 1972, you requested that I check with the several Divisions of the Defendant to determine if there had existed a situation involving the permanent closing of a department which was similar to the factual situation in the issue being litigated.
“Such a check has been made, and I will inform you that we have been unable to determine the existence of any such similar incident.”

Anaconda further contends that at a negotiating session prior to the institution of this litigation, the Union requested a change in the language of the pension plan to make employees in the situation herein involved eligible for 75/80 pensions. We hold that this effort by the Union to effect a clarification of the disputed language is not a waiver of its position as to the meaning of the language in dispute.

All other contentions of Anaconda have been considered and found to be without merit.

We now come to the cross appeal of the Union.

The Union’s first contention is directed to the effective date as of which the 75/80 pension benefits for the thirty-two employees in question is to be calculated. In finding of fact No. 7 (Appendix hereto), the District Court held that “the pension rate which such employees receive will be the rate in effect on August 27, 1971.” The Union contends that the applicable pension rate should be that in effect on the date of their actual retirement. We agree with the Union. The judgment of the District Court is modified accordingly.

The Union further contends that the rate of backpay set forth in finding of fact No. 9 (Appendix hereto) should [685]*685include a “reasonable estimate of incentive pay, overtime pay and other negotiated premiums.” We disagree and affirm finding of fact No. 9.

Modified and affirmed. Costs are taxed against Anaconda.

APPENDIX

OPINION, FINDINGS OF FACT AND CONCLUSIONS OF LAW

U. S. District Court — Eastern District of Michigan — (Southern Division)

This opinion supplements the Memorandum Opinion issued by this Court on March 17, 1972, and disposes of all issues raised by the pleadings. It also sets forth Findings of Fact and Conclusions of Law as required by Rule 56 and is a final order of Summary Judgment.

As noted in this Court's Memorandum Opinion issued on March 17, 1972, the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) and Local 174 brings this action against Anaconda American Brass Company, Inc., under Section 301 of the Labor-Management Relations Act, 29 U.S.C. § 185, and this Court has jurisdiction under that section to determine liability and to award actual and consequential damages and other appropriate relief in this dispute.

The original Memorandum Opinion sets forth the undisputed facts leading to this litigation. It is to be noted that the parties have negotiated amendments to said pension plan since the date of the departmental shutdown, granting increased 75/80 pension benefits to all such pensioners, but smaller increases to those employees who retired under the provision prior to October 1,1971.

For purposes of clarification, the following definitions are used:

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475 F.2d 682, 82 L.R.R.M. (BNA) 3033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-union-united-automobile-aerospace-agricultural-implement-ca6-1973.