Jeddo-Highland Coal Co. v. District 2, United Mine Workers of America, Sub-District 4

884 F. Supp. 926, 1995 U.S. Dist. LEXIS 4310, 1995 WL 150348
CourtDistrict Court, M.D. Pennsylvania
DecidedMarch 15, 1995
DocketNo. 3:CV-93-0125
StatusPublished

This text of 884 F. Supp. 926 (Jeddo-Highland Coal Co. v. District 2, United Mine Workers of America, Sub-District 4) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jeddo-Highland Coal Co. v. District 2, United Mine Workers of America, Sub-District 4, 884 F. Supp. 926, 1995 U.S. Dist. LEXIS 4310, 1995 WL 150348 (M.D. Pa. 1995).

Opinion

MEMORANDUM

VANASKIE, District Judge.

This litigation under § 301 of the Labor Management Relations Act, 29 U.S.C. § 185, concerns an arbitrator’s decision that the loading and hauling of “culm” owned by Morea Cogen, Inc. (“Morea”) and located at a “coal breaker” operated by Plaintiff JeddoHighland Coal Company (“Jeddo-Highland”) is subject to the work jurisdiction provisions of the Anthracite Wage Agreement of 1990 (hereinafter referred to as the “1990 AWA”).1 [928]*928Jeddo-Highland, an employer in an industry affecting commerce within the meaning of 29 U.S.C. §§ 142 and 152, is a signatory to the 1990 AWA. The arbitrator held that the 1990 AWA applied to the removal of Morea’s culm inasmuch as the 1990 AWA extends to “coal lands” owned by “affiliates” of signatories and Morea is an “affiliate” of JeddoHighland.

Jeddo-Highland seeks to vacate or modify the arbitration award on a number of grounds, including that (a) culm is not covered by the work jurisdiction provisions of the 1990 AWA; (b) Morea is not an “affiliate” of Jeddo-Highland; and (c) Morea’s “dedication” of the culm in question to Wheelabrator Fraekville Energy Company, Inc.. (‘Wheelabrator”) grants to Wheelabrator the right to load and haul the culm in question without being subject to the work jurisdiction provisions of the 1990 AWA. Jeddo-Highland also challenges the award on the ground that it conflicts with a final ruling of the Court of Common Pleas of Schuylkill County, Pennsylvania in Wheelabrator Frackville Energy Company, Inc. v. District 2, United Mine Workers of America, et al., No. S-2213-1992 (Nov. 9, 1992) (hereinafter referred to as the “Schuylkill County Action”). (See Docket Entry 41, Exhibit “L”) Finally, Jeddo-Highland contends that the award is contrary to public policy because it would preclude long-term arrangements for the supply of culm necessary to operate “co-generation” facilities.

Defendants, District 2, United Mine Workers of America, Sub-District 4, and Local Union 1443, United Mine Workers of America (hereinafter collectively referred to as the “UMW”), have asserted a counterclaim, requesting enforcement of the arbitration award. The UMW contends that the 1990 AWA extends to the loading and hauling of culm located on “coal lands” owned by a signatory operator or its affiliate. The UMW further contends that because both Jeddo-Highland and Morea are wholly-owned subsidiaries of Pagnotti Enterprises, Inc. (“Pagnotti”), the loading and hauling of culm owned by Morea is Covered by the 1990 AWA. Finally, the UMW asserts that the work jurisdiction requirements of the 1990 AWA could not be defeated by the Wheelabrator transaction.

Both parties have moved for summary judgment. Because it is evident that (a) the work jurisdiction provisions of the 1990 AWA arguably extend to the loading and hauling of culm; (b) the 1990 AWA may be construed to extend to operations on coal lands owned or held by Morea as an affiliate of Jeddo-Highland; (c) the Wheelabrator transaction does not defeat the work jurisdiction provisions of the 1990 AWA; and (d) the decision in question is not inconsistent with either the Schuylkill County Action or public policy, the UMWs summary judgment motion will be granted and Jeddo-Highland’s motion will be denied.

BACKGROUND

A. The 1990 AWA

The 1990 AWA is “the collective bargaining agreement that governs relations between anthracite-producing companies and UMW-represented workers in the anthracite industry.” International Union, UMW v. Racho Trucking Co., 897 F.2d 1248, 1249 (3rd Cir.1990). The specific work covered by the 1990 AWA is defined as follows:

The production, preparation, processing and cleaning of coal from deep mining operations, strip operations, and refuse banks, arid transportation of coal (except transportation of prepared coal),' repair and maintenance work normally performed at the mine site or at a central shop of the Employer and maintenance of refuse banks and mine roads, and work customarily related to all of above.... Contracting, subcontracting, leasing and subleasing ... will be conducted in accordance with the provisions of this Article. [1990 AWA, Article 2, § (a) (Docket Entry 41, Ex. “A,” emphasis added).]

Pursuant to Section (g) of Article 2 of the 1990 AWA, the collective bargaining agreement “covers the operation of all of the coal lands owned or held under lease by [signato[929]*929ry Operators] or any of them, or by any subsidiary or affiliate at the date of this agreement or acquired during its term, which may hereafter (during the term of this Agreement) be put into production.” (Id.) Article 2, Section (g) further provides that “[t]he Operators agree that they will not lease out any coal lands for the purpose of avoiding the application of this Agreement.” (Id.)

Disputes arising under the 1990 AWA are subject to a mandatory grievance procedure, culminating in reference of the matter to the “Umpire” appointed by the Anthracite Board of Conciliation. (Id., Article 18.) The Umpire’s decision is “final.” (Id.)

B. The Umpire’s Decision Giving Rise to this Litigation

In April of 1992, the UMW filed a grievance to protest the allegedly improper use of non-union workers on April 14 and 15, 1992 to remove and haul culm from a site known as the “Rosa Breaker,” which is operated by Jeddo-Highland. (Docket Entry 41, Ex. “C.”) The essence of the UMWs grievance was that the loading and transportation of culm is subject to the “work jurisdiction” provisions of the 1990 AWA.

Although the UMW originally contended that the culm in question was owned by Jeddo-Highland, it now acknowledges that the culm is instead owned by Morea. Both Morea and Jeddo-Highland are wholly-owned subsidiaries of Pagnotti. (Docket Entry 41, Ex. “G” at 37.)

Effective December 14, 1990, Morea dedicated the culm located at the Rosa Breaker site to Wheelabrator. (See the “Amended and Restated Supply and Disposal Agreement” (the “Amended Supply Agreement”) Docket Entry 41, Ex. “L”)2 As security for its obligations under the Amended Supply Agreement, Morea pledged its stock to Wheelabrator. The Amended Supply Agreement provided that Morea would not subject any of the “anthracite culm” to any lien, nor make any agreement that would allow any other person “the right to enter upon the Culm Sites and remove the anthracite culm thereon or otherwise take any action with respect to any anthracite culm that would ... result in any impediment to [Wheelabrator’s] removal of the anthracite culm from the Culm Sites.” (Docket Entry 41, Ex. “D”, at 4.) Jeddo-Highland is not a party to the Amended Supply Agreement.

The question of whether the loading and hauling of culm from the Rosa Breaker site falls with the 1990 AWA was submitted to the Anthracite Board of Conciliation (the “Board”), a joint management/labor dispute resolution committee established under Article 18 of the 1990 AWA.

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Bluebook (online)
884 F. Supp. 926, 1995 U.S. Dist. LEXIS 4310, 1995 WL 150348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jeddo-highland-coal-co-v-district-2-united-mine-workers-of-america-pamd-1995.