Local 1574, International Ass'n of MacHinists & Aerospace Workers v. Gulf & Western Manufacturing Co.

417 F. Supp. 191, 92 L.R.R.M. (BNA) 3309, 1976 U.S. Dist. LEXIS 14409
CourtDistrict Court, D. Maine
DecidedJune 25, 1976
DocketCiv. 14-97 SD
StatusPublished
Cited by3 cases

This text of 417 F. Supp. 191 (Local 1574, International Ass'n of MacHinists & Aerospace Workers v. Gulf & Western Manufacturing Co.) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local 1574, International Ass'n of MacHinists & Aerospace Workers v. Gulf & Western Manufacturing Co., 417 F. Supp. 191, 92 L.R.R.M. (BNA) 3309, 1976 U.S. Dist. LEXIS 14409 (D. Me. 1976).

Opinion

OPINION AND ORDER OF THE COURT

GIGNOUX, District Judge.

In this action, plaintiff Local 1574, International Association of Machinists and Aerospace Workers, (“the Union”) seeks to enforce the alleged right of its members pursuant to a collective bargaining agreement between the Union and defendant Gulf & Western Manufacturing Co. (Eastern Group) (“G & W”) to receive retirement benefits over and above those provided for in the pension plan established by G & W. The Union seeks injunctive and declaratory relief, and attorneys’ fees. Jurisdiction is predicated on Section 301 of the Labor Management Relations Act of 1947, 29 U.S.C. § 185 (1970). 1

The action has been tried to the Court, without jury, and has been fully briefed and argued by counsel. The following opinion contains the Court’s findings of fact and conclusions of law, as required by Fed.R. Civ.P. 52(a).

I.

The background of this dispute is as follows:

1. Prior to October 25, 1973, G & W, as successor to Bljss-Portland, a division of E. W. Bliss Co., owned and operated a manufacturing plant at South Portland, Maine (“the Rockwood facility”). In 1965 the Union, as exclusive bargaining agent for the employees with whom this action is concerned, negotiated with Bliss-Portland a collective bargaining agreement (“the 1965 Agreement”). Article XVI of the 1965 Agreement, dealing with retirement benefits, provided in full:

ARTICLE XVI RETIREMENT BENEFITS
16.0 The Company agrees to provide the following retirement benefits to employees retiring after July 1, 1963.
A. NORMAL RETIREMENT BENEFITS
*194 1. An Employee who retires from the Company after attaining the age of 65 and who on that date has 15 years or more of credited continuous service shall receive monthly benefits computed on the basis of $2.00 for each year of credited service, with a maximum of 25 years of credited service.
B. EARLY RETIREMENT BENEFITS
An employee who retires from the Company after attaining the age of 60, with 15 years or more of credited continuous service and prior to attaining age 65 shall receive Early Retirement Benefits equal to the Normal Retirement Benefits less one-half of 1% for each month he is under age 65 on the date of retirement.
C. DISABILITY BENEFITS
1. An employee who retires from the Company after attaining age 50 and prior to attaining age 65 as a result of a total permanent disability and who has at least 15 years of credited service and who shall have been totally and permanently disabled for six months, shall receive a Disability Benefit of $80.00 per month less any State and/or Federal disability benefit; with a minimum of $2.00 a month for each year of credited service, with a maximum of 25 years of credited service. Such disability benefits to be reduced to a Normal Retirement Benefit upon attainment of age 65.
D. VESTED DEFERRED RETIREMENT BENEFITS
1. An employee whose employment is terminated after he has attained age 50 who has 20 years of service shall be entitled to receive a Vested Deferred Retirement Benefit, computed on the basis of $2.00 for each year of credited service, upon the attainment of age 65.
16.1 The E. W. Bliss Company shall take such steps as are necessary to guarantee the payment for life of any monthly retirement benefit properly granted and paid during the term of this Agreement.

The 1965 Agreement contained no reference to a “pension plan.”

2. Effective January 1,1967, E. W. Bliss Co. established a pension plan (“the Pension Plan”) covering the members of the Union employed at the Rockwood facility. The Plan was executed solely by officers of E. W. Bliss Co., without the participation or knowledge of Union representatives. It contained ten articles. Article I set forth the definitions of important terms used in the Plan. Articles II through V described in detail the method of determining employee eligibility for retirement benefits, the procedure for applying for benefits, and the method of computing benefits. Articles VI and VII related to the establishment and maintenance of the Trust Fund required by the Plan. Articles VIII and IX provided for the administration of the Plan by the company and for the nonalienability of employees’ rights thereunder. Article X reserved to the company the right to modify or terminate the Plan 2 and set forth the order of priority for distributing the assets in the Trust Fund upon termination of the Plan if the Trust assets were insufficient to provide full benefits to all eligible employees.

Of present significance, Article VII of the Plan specifically limited the company’s liability for retirement benefits upon termination of the Plan to the assets currently held in the Trust Fund. That Article provided, in paragraph 3:

3. The retirement benefits of the Plan shall be only such as can be provided by the assets of the Trust Fund, and there shall be no liability or obligation on the part of the Company to make any further contributions in the event of termination of the Plan. No liability for the payment of benefits under the Plan shall be imposed upon the Company, or the officers, directors or stockholders of the Company.

*195 3. In 1968 the Union and Bliss-Portland executed a new collective bargaining agreement (“the 1968 Agreement”) effective from May 9, 1968 through April 24, 1971. Article XVI of this agreement, relating to retirement benefits, contained provisions identical to those of the 1965 Agreement, except for changes in the amounts of and dates of eligibility for such benefits. The 1968 Agreement, like the 1965 Agreement, contained no reference to a “pension plan.”

4. In the spring of 1971 the Union and G & W entered negotiations for a new labor agreement. Increased retirement benefits and a role in the administration of pensions were major demands of the Union. The negotiations failed, and the Union members went on strike for three weeks. The parties ultimately agreed upon a new collective bargaining agreement (“the 1971 Agreement”), effective from April 25, 1971 through April 24,1973. Article XVI of this agreement, relating to retirement benefits, contained provisions identical to Article XVI of the 1965 and 1968 Agreements, with changes reflecting negotiated increases in retirement benefits.

The 1971 Agreement also contained the following two new provisions relating to retirement benefits, in Article XVIII:

18.18 Three (3) union representatives will be placed on the retirement committee.
18.18A The company will supply pension information pamphlets on or before July 15, 1971.

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Bluebook (online)
417 F. Supp. 191, 92 L.R.R.M. (BNA) 3309, 1976 U.S. Dist. LEXIS 14409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/local-1574-international-assn-of-machinists-aerospace-workers-v-gulf-med-1976.