Local 145, International Ladies Garment Workers' Union v. Fashion Associates, Inc.

596 F. Supp. 77, 120 L.R.R.M. (BNA) 3117, 1984 U.S. Dist. LEXIS 24567
CourtDistrict Court, D. New Jersey
DecidedAugust 3, 1984
DocketCiv. A. 83-3738, 84-1449
StatusPublished
Cited by4 cases

This text of 596 F. Supp. 77 (Local 145, International Ladies Garment Workers' Union v. Fashion Associates, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local 145, International Ladies Garment Workers' Union v. Fashion Associates, Inc., 596 F. Supp. 77, 120 L.R.R.M. (BNA) 3117, 1984 U.S. Dist. LEXIS 24567 (D.N.J. 1984).

Opinion

SAROKIN, District Judge.

These related matters are before the court on various motions of the parties. These include the motion of Local 145, I.L. G.W.U. (“the Union”) for summary judgment, and Fashion Associates’ motions to enjoin ongoing arbitration between the parties, to vacate the default judgment in Civil Action No. 83-3738, entered November 28, 1983, to disqualify Union counsel and for reconsideration of the court’s order of June 13, 1984 holding Fashion Associates and its *78 President, Jerome Finkelstein, in contempt. Underlying most of these motions, and at the root of this litigation since its inception is but one issue: whether a valid collective bargaining agreement exists between the parties. The Union argues the existence of such an agreement based upon Fashion Associates’ failure properly to withdraw from the multi-employer bargaining unit of which it had been a member since 1974, namely the Sportswear Apparel Association (“SAA”). Fashion Associates claims that disputed issues of fact surround such withdrawal and that, in particular, the Union’s actions reveal an understanding that no agreement existed between the parties. It contends, inter alia, that until the court determines whether a contract exists, the arbitrator’s jurisdiction to resolve the current dispute between the parties is in doubt, and thus, that all arbitration should be stayed pending the court's determination.

FACTS

In support of its motion for summary judgment on the issue of the existence of a contract, the Union submits two pieces of evidence. 1 The affidavit of Sol Goldberg, Vice President of the I.L.G.W.U. and Director of the New Jersey Region of the I.L.G.W.U. states

I have caused a review to be made of all files known to the International Ladies’ Garment Workers’ Union, New Jersey Region, regarding Fashion Associates in order to determine whether the Union ever received a letter from Fashion Associates, Inc., wherein it unequivocally and in writing withdrew from the Sportswear Apparel Association, Inc. at any time pri- or to the negotiation and settlement of the contract covering the period June 1, 1982, through May 31, 1985, between the I.L.G.W.U. and the Sportswear Apparel Association, Inc.
There is no such letter in any of our files. I have also made inquiry of all known representatives of the Union who have had dealings with Fashion Associates, Inc., as to whether they recall ever receiving or seeing such a letter. None has any such recollection.

Goldberg Aff. H1Í 3-5. Also submitted, appended to counsel’s affidavit was the sworn testimony of Sidney Reiff, Executive Director of the SAA, stating that on December 22, 1983, he informed Jerome Finkelstein that Fashion Associates were “still members of the Association.”

He was going to show that they were not members of the Association. I said show what you want, but we have no letter of resignation. We have never so notified the Union, so you’re still a member of the Association.

Testimony of Sidney Reiff (5/9/84) at 36. See also Id. at 37.

Fashion Associates concedes that it gave no written notification of its “resignation” from the SAA. Aff. of Jerome Finkelstein (7/11/84) 1129. Rather, it contends that, first, the Union abrogated its eight-year-old agreement with Fashion Associates by attempting to “organize all workers at the factory,” and thereby, “to eliminate double-breasting,” id. 1111 12-13, defined as “the practice of simultaneous Union and non-Union operations.” Id. ¶ 8. M^. Finkelstein states

In response to their demands, I immediately informed the Union that competitive pressures precluded any possibility that all manufacturing operations at the factory could be unionized but did offer to negotiate a change in our long-standing relationship. The Union’s subsequent conduct confirms that the Union also recognized that the prior agreement was nullified.

Id. 1114.

After March, 1982, when the Union began to assert this position, Fashion Associates “immediately informed Mr. Reiff that *79 we would no longer belong to his Association and that he could not bind our factory to any agreement between the Association and the Union.” Thereafter, Fashion Associates ceased paying dues to the SAA. Id. 1116. Fashion Associates does not claim that such resignation was communicated directly to the Union, but states that “[t]he Union, of course, knew that Fashion Associates, Inc. was not represented or bound by any agreement between the Association and any I.L.G.W.U. local.” Id. ¶ 18. Though stating that “the Union has repeatedly confirmed its understanding that no collective bargaining agreement was in effect,” ibid., Fashion Associates points to only two facts in support thereof. First, it states that the Union continued to press for an end to double-breasting, through arbitration, id. 111119-22, and organization. Id. 1120. Second, it notes that, in 1983, the Union failed “to remit vacation pay directly to its members,” as it had done in the past, under the prior contractual relationship. Id. 1123. In sum, Fashion Associates contends that the facts averred give rise to some question as to whether the parties’ agreement had been terminated, and, if so, as to the Union’s knowledge of such termination.

DISCUSSION

The Union’s position is that, in that it is conceded that it was given no formal notice — written or oral — of Fashion Associates’ withdrawal from the SAA, no such withdrawal occurred, irrespective of the myriad factual averments of Fashion Associates. In so contending, the Union relies on the National Labor Relations Board (“NLRB”) rule first set forth in Retail Associates, Inc., 120 NLRB 388 (1958). There, the Board noted the importance of controlling union or employer withdrawal from collective bargaining on a multiemployer basis.

The right of withdrawal by either a union or employer from a multiemployer unit has never been held, for Board purposes, to be free and uninhibited, or exercisable at will or whim. For the Board to tolerate such inconstancy and uncertainty in the scope of collective-bargaining units would be to neglect its function in delineating appropriate units under Section 9, and to ignore the fundamental purpose of the Act of fostering and maintaining stability in bargaining relationships. Necessarily under the Act, multiemployer bargaining units can be accorded the sanction of the Board only insofar as they rest in principle on a relatively stable foundation. While mutual consent of the union and employers involved is a basic ingredient supporting the appropriateness of a multiemployer bargaining unit, the stability requirement of the Act dictates that reasonable controls limit the parties as to the time and manner that withdrawal will be permitted from an established' multiemployer bargaining unit. Thus, the Board has repeatedly held over the years that the intention by a party to withdraw must be unequivocal, and exercised at an appropriate time.

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Bluebook (online)
596 F. Supp. 77, 120 L.R.R.M. (BNA) 3117, 1984 U.S. Dist. LEXIS 24567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/local-145-international-ladies-garment-workers-union-v-fashion-njd-1984.