Int'l Brohd Elec 21 v. IL Bell Tele Co

CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 2, 2007
Docket06-2335
StatusPublished

This text of Int'l Brohd Elec 21 v. IL Bell Tele Co (Int'l Brohd Elec 21 v. IL Bell Tele Co) 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
Int'l Brohd Elec 21 v. IL Bell Tele Co, (7th Cir. 2007).

Opinion

In the United States Court of Appeals For the Seventh Circuit ____________

No. 06-2335 INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL 21, Plaintiff-Appellee, v.

ILLINOIS BELL TELEPHONE COMPANY, Defendant-Appellant. ____________ Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 06 C 705—George W. Lindberg, Judge. ____________ ARGUED NOVEMBER 8, 2006—DECIDED JULY 2, 2007 ____________

Before CUDAHY, KANNE, and SYKES, Circuit Judges. KANNE, Circuit Judge. After Illinois Bell Telephone Company (“Company”) refused to arbitrate a grievance, the International Brotherhood of Electrical Workers, Local 21 (“Union”) filed a motion to compel arbitration in federal district court. Under the terms of the parties’ collective bargaining agreement (“CBA”), the district court found the grievance arbitrable and granted the motion. We affirm. 2 No. 06-2335

I. BACKGROUND The parties’ CBA has been in effect since June 27, 2004. In late 2005, the Company informed the Union that it planned to implement new “consumer performance man- agement guidelines.” In the past, employees were evalu- ated on a “work flow” system. Essentially, employees were required to perform specific tasks in response to actions taken by the customers with whom they dealt. The new guidelines would replace the work flow system with a sales evaluation system, wherein employees would be evaluated based on actual sales made. If an employee should fail to meet his sales requirements, he could be disciplined and eventually fired. Upon notice of the Company’s plans, the Union filed a grievance challenging the implementation of the guide- lines. The parties engaged in a series of discussions regarding the guidelines, and the Company made some changes to the program. In the end, however, the parties could not resolve their dispute. The Union requested that the grievance be submitted to arbitration, but the Com- pany refused, asserting that the grievance was not arbitr- able under the terms of the CBA. The Union then filed its motion to compel arbitration in federal court pursuant to the Federal Arbitration Act, 9 U.S.C. § 4. The arbitration clause, § 13.16 of the CBA, defines what topics are arbitrable: The right to invoke arbitration shall extend only to matters which involve: (A) The interpretation or application of any of the terms or provisions of this Agreement, unless excluded by specific provisions of this Agreement. (B) The discipline of an employee with six (6) or more months of Net Credited Service. No. 06-2335 3

To invoke the arbitration clause, the Union points to several provisions of the CBA, the interpretation or application of which may be involved in this dispute. First, the recognition clause, § 1.01 of the CBA, states: “The Company recognizes the Union as the exclusive bargain- ing agent for [the] employees of the Company . . . .” Second, § 4.01 requires “mutual responsibility and re- spect” and a fair application of the CBA “in accord with its intent and meaning and consistent with the Union’s status as exclusive bargaining representative.” Third, the CBA includes a “no strike” provision, strictly prohibiting the Union from striking under any circumstance. None of the above provisions have been explicitly excluded from arbitration, and nothing in the CBA specifically pertains to the implementation of performance guidelines.

II. ANALYSIS “We review the district court’s ruling to compel arbitra- tion de novo.” American United Logistics, Inc. v. Catellus Dev. Corp., 319 F.3d 921, 929 (7th Cir. 2003) (citing Harter v. Iowa Grain Co., 220 F.3d 544, 549-50 (7th Cir. 2000)). “[A]rbitration is a matter of contract and a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit.” AT&T Techs., Inc. v. Commc’ns Workers of Am., 475 U.S. 643, 648 (1986) (quoting United Steelworkers of Am. v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582 (1960)); Int’l Med. Group, Inc. v. Am. Arbitration Ass’n, Inc., 312 F.3d 833, 842 (7th Cir. 2002). The arbitrator derives his authority to resolve the parties’ dispute from their agreement to allow him to do so. Int’l Med. Group, Inc., 312 F.3d at 842. Unless the parties clearly provide otherwise, the question of arbitrability is properly decided by a court, not the arbitrator. Id. When resolving arbitrability disputes, a court must bear in mind the liberal federal policy in favor of arbitra- 4 No. 06-2335

tion agreements. James v. McDonald’s Corp., 417 F.3d 672, 676-77 (7th Cir. 2005); see 9 U.S.C. §§ 2, 3. “[W]here the contract contains an arbitration clause, there is a pre- sumption of arbitrability in the sense that ‘[a]n order to arbitrate the particular grievance should not be denied unless it may be said with positive assurance that the arbitration clause is not susceptible of an interpretation that covers the asserted dispute. Doubts should be resolved in favor of coverage.’ ” AT&T Techs., 475 U.S. at 650 (quoting Warrior & Gulf, 363 U.S. at 582-83); see Continen- tal Cas. Co. v. American Nat. Ins. Co., 417 F.3d 727, 730- 31 (7th Cir. 2005). When determining whether the parties have agreed to arbitration, a court must be careful not to consider the merits of the underlying claim. AT&T Techs., 475 U.S. at 650. If the dispute falls within the scope of the parties’ arbitration agreement, even a seemingly frivolous claim must be submitted to arbitration. Id.; see Zurich Am. Ins. Co. v. Watts Indus., Inc., 466 F.3d 577, 581 (7th Cir. 2006). However, the arbitrator’s jurisdiction remains limited by the terms of the CBA. Am. Postal Workers Union, AFL-CIO, Milwaukee Local v. Runyon, 185 F.3d 832, 835 (7th Cir. 1999). Thus, under the terms of § 13.16(A) of the CBA, an arbitrator’s authority is lim- ited to resolving disputes that involve the interpretation or application of a term of the CBA. The parties have spent much time debating whether the arbitration clause in the CBA is “broad” or “narrow.” While the utility of such categorization, without context, is dubious at best, the clause does appear to be in line with those that have been considered “broad.” See AT&T Techs., 475 U.S. at 650 (finding arbitration clause broad where applied to “differences arising with respect to the interpretation of this contract or the performance of any obligation hereunder”); Int’l Union of Operating Eng’rs, No. 06-2335 5

Local Union 103 v. Indiana Constr. Corp., 13 F.3d 253, 254, 257 (7th Cir. 1994) (finding arbitration clause broad where applied to “any dispute . . . concerning the inter- pretation or application of the terms of this contract,” plus a specific exclusion for jurisdictional disputes); Certified Grocers of Illinois, Inc. v. Produce, Fresh & Frozen Fruits & Vegetables, Fish, Butter, Eggs, Cheese, Poultry, Florist, Nursery, Landscape & Allied Employees, Drivers, Chauf- feurs, Warehousemen & Helpers Union, Chicago and Vicinity, Illinois, Local 703, 816 F.2d 329, 329-30 (7th Cir. 1987) (finding arbitration clause broad where applied to “any difference . . . between the Employer and the Union concerning any interpretation or application of any of the provisions of this Agreement”).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United Steelworkers v. American Manufacturing Co.
363 U.S. 564 (Supreme Court, 1960)
United Steelworkers v. Enterprise Wheel & Car Corp.
363 U.S. 593 (Supreme Court, 1960)
National Labor Relations Board v. Katz
369 U.S. 736 (Supreme Court, 1962)
At&T Technologies, Inc. v. Communications Workers
475 U.S. 643 (Supreme Court, 1986)
Boggs v. Boggs
520 U.S. 833 (Supreme Court, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
Int'l Brohd Elec 21 v. IL Bell Tele Co, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intl-brohd-elec-21-v-il-bell-tele-co-ca7-2007.