International Union, United Automobile, Aerospace & Agricultural Implement Workers v. Lester Engineering Co.

575 F. Supp. 797, 110 L.R.R.M. (BNA) 2285, 1982 U.S. Dist. LEXIS 13016
CourtDistrict Court, N.D. Ohio
DecidedApril 22, 1982
DocketNo. C82-875
StatusPublished
Cited by2 cases

This text of 575 F. Supp. 797 (International Union, United Automobile, Aerospace & Agricultural Implement Workers v. Lester Engineering Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio 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 v. Lester Engineering Co., 575 F. Supp. 797, 110 L.R.R.M. (BNA) 2285, 1982 U.S. Dist. LEXIS 13016 (N.D. Ohio 1982).

Opinion

MEMORANDUM AND ORDER

KRENZLER, District Judge.

This matter came before the Court on plaintiffs’, the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, UAW and Local No. 1051 (hereinafter “Union”) motion for a Temporary Restraining Order and Complaint with Request for Preliminary Injunction. Plaintiffs seek injunctive relief to prevent defendant Lester Engineering Company (hereinafter “Company”) from selling or otherwise alienating tools, equipment or machinery located at one of its company-owned plants (hereinafter [798]*798“Plant No. 2”) until such time as a previously filed grievance has been arbitrated.

An informal hearing was held on plaintiffs’ motion for a temporary restraining order on March 26, 1982. All parties were represented at this hearing. By agreement of the parties, a Temporary Restraining Order was issued in order to maintain the status quo until further Order of the Court.

On March 29, 1982, a hearing on plaintiffs’ Complaint requesting a preliminary and permanent injunction was held. Both parties presented exhibits and live testimony to the Court.

FINDINGS OF FACT

Based upon the record before it, the Court makes the following findings of fact:

Lester Engineering Company, defendant, primarily manufactures aluminum die cast machines for the automotive and housing industries.

Plaintiffs, the Union, and defendants, the Company, are parties to a collective bargaining agreement (hereinafter “Agreement”). The Agreement contains the terms and conditions of employment for all production and maintenance employees employed at the Company’s facilities.

In parts relevant to this case, the Agreement provides:

“The Company shall exercise its functions of management under which it shall have the right ... to decide the number and location of its plants; products to be manufactured; and the methods and processes of manufacturing----” Article IV, Section 4.1.
“When any department is scheduled for less than a forty (40) hour week, operations which are normally performed in that department will not be removed from the plant, provided the work is normally performed within the agreed standard hours. And provided, further, that if the work is to be performed on a machine other than that on which the operations are normally performed, the work can be performed within the general range of time in which the work is normally performed.
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"(d) The Company will not undercut the Union or cause improper impact of any substantial kind upon bargaining unit work, and Management will demonstrate good faith to its employees before subcontracting any work, contrary to Section 5.5.” Article V, Section 5.5 (hereinafter “Subcontracting Clause”).
“Should a grievance arise, it shall be handled in the following manner:
“Step 1. Within five (5) calendar days after the employee or the Union knew or should have known of the existence of the grievance, the aggrieved employee ... shall take the grievance up with the foreman... [who] shall have one work day to answer the grievance in writing. If it is not so settled, it shall proceed to Step 2.
* * * * * *
“Step 3. ... Any grievance ... may only be processed through arbitration (Step 4) by the Union, and then only if such grievance has been processed in accordance with the procedures set forth in Steps 1, 2, and 3 of this grievance procedure.” Article VII, Section 7.2 (hereinafter “grievance procedure”).

It is undisputed that on or about February 2, 1982, plaintiffs filed a grievance protesting the subcontracting of bargaining unit work in violation of the subcontracting clause of the Agreement. See Article V, Section 5.5, supra. This grievance has been processed through the initial steps of the grievance procedure and is now awaiting scheduling before an arbitrator.

The Company’s sole witness, Mr. Harrison, General Manager, testified that due to the decline in its business, the Company made the business decision to consolidate its operations and to liquidate some of its assets. Prior to this decision, over one-half of the Company’s salaried employees had been laid off.

[799]*799As part of this consolidation effort, Mr. Harrison testified that as early as November and December of 1981, the Employer was negotiating a sale of thirteen of the twenty machines then operating at Plant No. 2. Also, as part of the plan, the remaining machines were to be transferred to Plant No. 1. Mr. Harrison further testified that on or about February 24, 1982, the Company received partial payment on the sale of the thirteen machines.

It is not controverted that during the last week in February of 1982 the Company met with the Union and informed the Union that it was closing Plant No. 2. The Company explained that it planned to move some equipment to Plant No. 1 and that it had already sold the rest of its equipment. The Company further indicated that it was in the process of selling Plant No. 2 and the property surrounding it.1

It is not disputed that on March 2, 1982, the Company notified all employees of the closing of Plant No. 2 in a shop meeting and by a newsletter posted on bulletin boards and sent to each employee.

On March 10, 1982, the Union filed an unfair labor practice charge against the Company, claiming a failure to bargain over the effects of the plant closure and requesting that the National Labor Relations Board (hereinafter “NLRB”) seek injunctive relief against the Company. This charge was later withdrawn.

On March 25, 1982, the Company removed three machines from Plant No. 2. It is not disputed that the Company intends to remove the remaining ten machines that were sold, to move seven machines to Plant No. 1, and also that between seven to ten employees will be laid off as a result of this action.

On March 29, 1982, during recess of the hearing on this matter, the plaintiffs filed a subsequent grievance protesting the closing and the sale of Plant No. 2.

Article VII, Section 7.2 of the Agreement provides that the Union must file any grievance within five (5) calendar days after the Union knows of the existence of the grievance. The uncontroverted evidence indicates that plaintiffs were notified of the Company’s decision to close Plant No. 2 prior to March 2, 1982 and that the employees were notified of the decision to close on March 2,1982. Thus, any grievance concerning the plant closing must have been filed no later than March 7, 1982.

Due to the fact that this subsequent grievance protesting the plant closing was untimely, the underlying dispute is barred from arbitration. See Grocery and Food Products Warehouse Employees Union Local No. 738 v. Thompson Taylor Spice Co., 214 F.Supp. 92 (N.D.I11.1963).

Thus, the issue before this Court is whether the decision to close Plant No. 2 and the sale and removal of certain machines in Plant No. 2 is a violation of the subcontracting clause of the Agreement such that the Union is entitled to an injunction. For the reasons set forth below, this Court finds that the decision to close Plant No. 2 and the subsequent removal of certain machinery from Plant No.

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575 F. Supp. 797, 110 L.R.R.M. (BNA) 2285, 1982 U.S. Dist. LEXIS 13016, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-union-united-automobile-aerospace-agricultural-implement-ohnd-1982.