Local 1235, Amalgamated Transit Union v. Metropolitan Transit Authority

787 S.W.2d 911, 1990 Tenn. LEXIS 131, 134 L.R.R.M. (BNA) 2971
CourtTennessee Supreme Court
DecidedMarch 26, 1990
StatusPublished

This text of 787 S.W.2d 911 (Local 1235, Amalgamated Transit Union v. Metropolitan Transit Authority) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local 1235, Amalgamated Transit Union v. Metropolitan Transit Authority, 787 S.W.2d 911, 1990 Tenn. LEXIS 131, 134 L.R.R.M. (BNA) 2971 (Tenn. 1990).

Opinion

OPINION

HARBISON, Justice.

On behalf of employees of a publicly-owned transit system in Nashville, a labor union brought this action against the employer seeking injunctive and declaratory relief. The chancellor granted a temporary injunction. On interlocutory appeal pursuant to Rule 9, T.R.A.P. the Court of Appeals ordered the injunction dissolved and remanded the case for further proceedings. We disagree with some of the conclusions reached by the intermediate court. Its judgment is modified and the cause is remanded to the trial court for the taking of such further proof as may be appropriate and for final disposition.

A. The Factual Background

Congress enacted the Urban Mass Transportation Act of 1964 (“UMTA”), 49 U.S.C. App. §§ 1601-1617, authorizing grants to assist local governments in acquiring and operating troubled public transportation systems. The grant programs are adminis[912]*912tered through the Department of Transportation with cooperation of the Department of Labor.

Prior to 1973 the public transit system in Nashville had been privately owned and operated through agreements with the Nashville Transit Authority. That authority continued to exist and function as an agency of the Metropolitan Government after consolidation of the city and county governments. In 1973 the Metropolitan Government, through its transit authority, applied to the Department of Transportation and received a grant to enable it to purchase the local transit company. The Metropolitan Transit Authority (“MTA”) owns the system, but it contracted for operation of the system with a management company, ATE Management Services, Inc. (“ATE”). Transportation Management of Tennessee, Inc. (“TMT”) is a wholly owned subsidiary of ATE Management Services, Inc. The parent and subsidiary together manage and operate the public transit system in Nashville.

For many years the appellant union has been the collective bargaining agent for employees of the transit system. It continued in that capacity after acquisition of the system by the Metropolitan Government. Since 1940 the union and the employer have entered into a series of collective bargaining agreements covering wages, hours and conditions of employment. These collective bargaining agreements are normally negotiated for a three year period. Since 1973 the agreements have been executed by TMT on behalf of the employer.

Section 13(c) of the UMTA, 49 U.S.C.App. § 1609(c) provides:

It shall be a condition of any assistance under section 1602 of this title that fair and equitable arrangements are made, as determined by the Secretary of Labor, to protect the interests of employees affected by such assistance.

In order to meet this condition the Metropolitan Government entered into an agreement with the plaintiff union on April 6, 1973, referred to as a “section 13(c) agreement”, to provide protective arrangements for the employees. The agreement was approved by the Secretary of Labor and the grant duly authorized.

Thereafter in 1975 a substantial additional grant was sought by the MTA, and a second section 13(c) agreement was executed between it and the union.

Both of these agreements contained an “interest arbitration” provision as well as a binding grievance arbitration provision.

The United States Supreme Court has stated that “interest arbitration”

... relates to disputes over the formation of collective agreements or efforts to secure them. They arise where there is no such agreement or where it is sought to change the terms of one, and therefore the issue is not whether an existing agreement controls the controversy. They look to the acquisition of rights for the future, not to assertion of rights claimed to have vested in the past.

Elgin, J. & E. Ry. v. Burley, 325 U.S. 711, 723, 65 S.Ct. 1282, 1290, 89 L.Ed. 1886, 1894 (1945).

The “interest arbitration” clauses in the 1973 and 1975 agreements were included in the definition of the term “labor dispute” with the provision that that term should include “the making or maintaining of collective bargaining agreements [and] the terms to be included in such agreements

[[Image here]]

After the 1975 grant, two additional grants were sought by the MTA in 1980. One of these was for the purchase of vehicles and the other for the construction of a mall, or shelters for patrons of the system, along Deaderick Street. Separate section 13(c) agreements were not executed in connection with these two grant applications, but the terms and provisions of the 1975 agreement were expressly incorporated into the applications, and the grants were approved on those conditions. The grant for the mall was still shown by MTA as “open” when this litigation began.

Commencing in 1979 the MTA and TMT notified the United States Department of [913]*913Labor that they no longer agreed to interest arbitration provisions, contending that such provisions were not necessary as a part of a labor protective arrangement under section 13(c) because transit employees were privately employed and had a right to strike, the latter being an adequate dispute resolution procedure under the National Labor Relations Act. The union has never acquiesced in that contention of the employer, and the issue has been the subject of controversy for the past decade.

None of the triennial collective bargaining agreements between the union and the employer contained interest arbitration provisions, although they did contain provisions for arbitration of grievances. In 1979 the parties negotiated for a new collective bargaining agreement. Their negotiations reached an impasse and the union demanded interest arbitration. The employer refused, and litigation followed in the federal courts. The position of the union was sustained and arbitration was ordered in Division 1235, Amalgamated Transit Union v. Metropolitan Transit Authority, 477 F.Supp. 1027 (M.D.Tenn.1979), aff’d. 650 F.2d 1389 (6th Cir.1981). Subsequently, however, the United States Supreme Court ruled that the proper forum for litigation over breach of a section 13(c) agreement was the state courts and that the federal courts did not have jurisdiction over suits brought by unions against local governmental entities to enforce such agreements. Jackson Transit Authority v. Local Division 1285, Amalgamated Transit Union, 457 U.S. 15,102 S.Ct. 2202, 72 L.Ed.2d 639 (1982).

Under the UMTA two types of grants are made to local governments, one for capital improvements and the other for current operations. After the first four grants sought by the MTA, accompanied by section 13(c) agreements with interest arbitration provisions, nine other grants were applied for and approved, although one of these was never funded. In each instance the union insisted that interest arbitration was necessary, but the Secretary of Labor conditionally approved the grants with the requirement that the parties negotiate an appropriate protective arrangement.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
787 S.W.2d 911, 1990 Tenn. LEXIS 131, 134 L.R.R.M. (BNA) 2971, Counsel Stack Legal Research, https://law.counselstack.com/opinion/local-1235-amalgamated-transit-union-v-metropolitan-transit-authority-tenn-1990.