Labor Relations Division of Construction v. International Brotherhood of Teamsters

29 F.3d 742, 18 Employee Benefits Cas. (BNA) 1585, 146 L.R.R.M. (BNA) 2979, 1994 U.S. App. LEXIS 18057
CourtCourt of Appeals for the First Circuit
DecidedJuly 19, 1994
Docket93-2122
StatusPublished
Cited by2 cases

This text of 29 F.3d 742 (Labor Relations Division of Construction v. International Brotherhood of Teamsters) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Labor Relations Division of Construction v. International Brotherhood of Teamsters, 29 F.3d 742, 18 Employee Benefits Cas. (BNA) 1585, 146 L.R.R.M. (BNA) 2979, 1994 U.S. App. LEXIS 18057 (1st Cir. 1994).

Opinion

29 F.3d 742

146 L.R.R.M. (BNA) 2979, 128 Lab.Cas. P 11,141,
18 Employee Benefits Cas. 1585

LABOR RELATIONS DIVISION OF CONSTRUCTION INDUSTRIES OF
MASSACHUSETTS, INC., et al., Plaintiffs-Appellees,
v.
INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFERS,
WAREHOUSEMEN AND HELPERS OF AMERICA, LOCAL # 379,
Defendant-Appellant.

No. 93-2122.

United States Court of Appeals,
First Circuit.

Heard March 11, 1994.
Decided July 19, 1994.

Paul F. Kelly, with whom Anne R. Sills and Segal, Roitman & Coleman, Boston, MA, were on brief, for appellant.

John D. O'Reilly III, with whom O'Reilly & Grosso, Southboro, MA, was on brief, for appellees.

Before BREYER,* Chief Judge, COFFIN, Senior Circuit Judge, and TORRUELLA, Circuit Judge.

TORRUELLA, Circuit Judge.

The circumscribed role of federal courts reviewing arbitration awards in labor contract disputes is now well established. As the Supreme Court found in United Paperworkers Int'l Union v. Misco, Inc., 484 U.S. 29, 36-45, 108 S.Ct. 364, 369-74, 98 L.Ed.2d 286 (1987), courts must resist the temptation to substitute their own judgment about the most reasonable meaning of a labor contract for that of the arbitrator and avoid the tendency to strike down even an arbitrator's erroneous interpretation of such contracts. Instead, courts must confine themselves to determining whether the arbitrator's construction of the contract was in any way plausible.

The issue in this case is whether any plausible reading of a collective bargaining agreement supports an arbitrator's ruling in a dispute over fringe benefit contributions. Plaintiffs-appellees, J.M. Cashman, Inc. and R. Zoppo Co., Inc. (the "plaintiffs" or "Cashman and Zoppo"), challenged the arbitration order, which favored the defendant-appellant, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of American, Local 379 (the "Union"), in the district court. The district court vacated the arbitration award and remanded the dispute to the arbitrator for a new resolution of the case. Because we find that the district court stepped outside of its highly circumscribed role of assessing the plausibility of the arbitrator's interpretation of the agreement between the parties, we reverse the court's holding. Nevertheless, we agree with the district court that the case should be remanded to the arbitrator for resolution of a related issue of federal law.

I. BACKGROUND

This case arises out of the arbitration of a dispute between the Union and a group of contractor-employers, including plaintiffs Cashman and Zoppo, involved in the construction of waste water treatment facilities in Boston Harbor (the "Boston Harbor Project"). On March 2, 1992, the Union filed grievances against Cashman, Zoppo, and six other project employers, claiming that truck drivers on the Boston Harbor Project who owned and drove their own trucks, so called "owner-operators," should receive certain fringe benefit contributions that the employers were already paying on behalf of other Boston Harbor Project employees. The grievances asserted that the Boston Harbor Project Labor Agreement ("Project Agreement"), signed by the Union and the employers, required that the same "health and welfare contributions and all pension contributions" made on behalf of other employees must also be made on behalf of the owner-operators.

The employers claimed that they did not have to pay fringe benefits on behalf of owner-operators because the contract did not require it and, more importantly, because the Union and many of the employers had a long-standing practice of not paying such owner-operator benefits going back at least twenty-six years. According to the employers, this practice was established after the Union and certain employer-contractors on a number of state construction projects (not including Cashman and Zoppo themselves) agreed that, to the extent a nucleus of owner-operator truck drivers would be present on any individual construction project, the employers would not be required to pay fringe benefits for the owner-operators. The employers working on the Boston Harbor Project, who were required to sign the Project Agreement in order to bid initially on the work, see Building & Constr. Trades Council v. Associated Builders & Contractors, Inc., --- U.S. ----, 113 S.Ct. 1190, 122 L.Ed.2d 565 (1993), rev'g, 935 F.2d 345 (1st Cir.1991) (en banc), maintained that they expected this established practice to continue as in previous projects. Cashman and Zoppo, however, had never entered into a contractual relationship with the Union before the Boston Harbor Project. Consequently, no past practices had been established between the Union and the plaintiffs themselves.

Pursuant to the Project Agreement, the dispute over the fringe benefits was brought before an arbitrator for resolution. On January 20, 1993, the arbitrator found in favor of the Union and ordered the plaintiffs and the other employers to pay, retroactively, post-grievance benefits and to pay future fringe benefit contributions on behalf of the owner-operator truck drivers. In his accompanying opinion, the arbitrator explained that certain provisions of the Massachusetts Teamsters' Heavy Construction Agreement ("Teamsters Agreement"), which was incorporated into the Project Agreement, in conjunction with the Project Agreement itself, explicitly obligated employers to make health insurance and pension contributions on behalf of the owner-operators in question.

At issue in this appeal is the arbitrator's finding that the past practice of not paying the fringe benefits for owner-operators did not bind the parties in this case because the Project Agreement "wiped the slate clean" of such past practices. The arbitrator relied on the following language in the preamble of the Project Agreement to support his finding:

No practice, understanding or agreement between a Contractor and a Union party which is not explicitly set forth in this Agreement shall be binding on any other party unless endorsed in writing by the Project Contractor.

By interpreting this language as negating all past practices and understandings not explicitly set forth within the Project Agreement, the arbitrator disregarded the voluminous evidence presented by the employers of the established practice of excluding owner-operators from fringe benefit contributions. As a result, the language of the Project Agreement granting such benefits was found to be controlling.

Also at issue on appeal is the related question of whether the owner-operator truck drivers are independent contractors or employees. If they are independent contractors, Section 302 of the Labor Management Relations Act ("LMRA"), 29 U.S.C. Sec. 186, would prohibit fringe benefit payments on their behalf. The arbitrator acknowledged that the employers had argued that fringe benefit payments for the owner-operators would be illegal under Section 302, but he made no explicit legal or factual findings on the issue in his opinion.

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29 F.3d 742, 18 Employee Benefits Cas. (BNA) 1585, 146 L.R.R.M. (BNA) 2979, 1994 U.S. App. LEXIS 18057, Counsel Stack Legal Research, https://law.counselstack.com/opinion/labor-relations-division-of-construction-v-international-brotherhood-of-ca1-1994.