Local 1982, International Longshoremen's Ass'n v. Midwest Terminals of Toledo, International, Inc.

560 F. App'x 529
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 26, 2014
Docket13-3654
StatusUnpublished
Cited by4 cases

This text of 560 F. App'x 529 (Local 1982, International Longshoremen's Ass'n v. Midwest Terminals of Toledo, International, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local 1982, International Longshoremen's Ass'n v. Midwest Terminals of Toledo, International, Inc., 560 F. App'x 529 (6th Cir. 2014).

Opinion

BOGGS, Circuit Judge.

Midwest Terminals contends that “[t]his case is really quite simple.” Appellee Br. 27. The danger with telling a federal court that a case is “really quite simple” is that sometimes the case may turn out to be simple in favor of your opponent. Cf. Bennett v. State Farm Mut. Auto. Ins. Co., 731 F.3d 584, 584-85 (6th Cir.2013) (explaining why not to call an opponent’s argument “ridiculous”). In this case, Local 1982, a labor union, filed a grievance against Midwest Terminals, a business employing the union’s members, under the grievance procedures of the parties’ Master Agreement. Midwest Terminals felt that the particular grievance could only properly be addressed under the grievance procedures of the parties’ Local Agreement, and so it did not participate in the Master Agreement grievance process. Local 1982 obtained an award in its favor from a grievance committee which it now seeks to enforce in federal court. The district court, interpreting ambiguous language in the Master Agreement, determined that the Local Agreement procedures apply and vacated the award. Because the parties’ collective-bargaining agreement is ambiguous about which grievance procedures apply, we defer to the grievance committee, reverse the district court, and direct the district court to enter an order enforcing the award.

I

A

Midwest Terminals of Toledo International, Inc. (“Midwest”) operates the port at the mouth of the Maumee River at the west end of Lake Erie. It provides access to the Great Lakes and the St. Lawrence Seaway. Midwest engages in the steve-doring — the loading and unloading — of waterfront cargo. Midwest is a member of the Great Lakes Stevedore Employers (“GLSE”), a multiemployer bargaining group.

The International Longshoremen’s Association (“ILA”) is the largest labor union of maritime workers in North America. Local 1982 (“Union”) is an affiliate local union based in Toledo, Ohio. It is also affiliated with the Great Lakes District Council (“GLDC”), a subordinate body of the ILA that has jurisdiction over employers and local unions in the Great Lakes region. The Union is the collective bargaining representative for Midwest’s stevedores.

The Union and Midwest were parties to a collective-bargaining agreement (“CBA”) consisting, in part, of a Master Agreement, effective from January 1, 2011, through December 31, 2012. The Master Agreement was formed between the GLSE and the GLDC, and both the Union and Midwest were signatories to it. The parties’ CBA also consisted of a Local Agreement, effective from January 1, 2006, through December 31, 2010.

*531 Both the Master and Local Agreements contain elaborate grievance-procedure provisions that Midwest and the Union must invoke to resolve disputes between them. The Master Agreement provides that grievances “relating to the meaning and interpretation or application” of the Master Agreement are to be handled through that agreement’s grievance and arbitration procedures. It also provides that grievances “relating to the meaning and interpretation or application” of the Local Agreement must be resolved only through the Local Agreement’s grievance and arbitration procedures.

Specifically, section 25 of the Master Agreement states:

Grievance and Arbitration Procedures
25. A Should any difference or dispute arise relating to the meaning and interpretation or application of any of the provisions of this Master Agreement (hereinafter referred to as “grievance”) between the Employers party to this Agreement and an employee or group of employees of the GLDC-ACD/ILA, or one of the employees’ Local Unions affiliated with the GLDC-ACD/ILA, such grievance will be handled and adjusted as hereinafter provided.
1. A difference or dispute relating to the meaning and interpretation or application of the provisions of a Local Agreement entered into with a Local Union affiliated with GLDC-ACD/ILA (including matters which, under this Master Agreement, are to be established or dealt with in Local Agreements) shall not be deemed to be a “grievance” hereunder and shall not be subject to the settlement and arbitration procedures provided under this section 21 [sic], but shall be resolved under the grievance and arbitration procedures provided for under such Local Agreement.

B

Around December 1, 2011, the Union submitted a draft grievance to Midwest concerning Midwest’s failure to contribute to a required employer pension and welfare plan. In particular, the Union maintained that Midwest did not establish a plan and, thus, did not pay its required contributions to it. The dispute remained unresolved, and the Union filed an official grievance against Midwest on December 9, 2011. The Union’s grievance was for: “Violation of Master Agreement Section 5.5A Welfare Contribution for Each Hr of Wages Paid Behalf of Each Actively Employed Person.... ” The Union’s grievance claimed that Midwest violated the following CBA provisions: “Master Agreement & Local 1982 Agreement section 18[,] paragraph 18.1.” As a remedy, it sought that Midwest: “Establish Health Welfare & pension Fund including a payment plan on the unfunded liability and the plan to be made whole.”

The parties’ CBA addresses pension and welfare plans. Section 5 of the Master Agreement provides in part:

Contributions to Pension and Welfare Plans
5. A. The minimum contribution to affiliated local union and employer ERISA approved benefit, pension and welfare plans, for each hour of wages paid on behalf of each actively employed person, for the below listed years, for all ports except Toledo Grain, Duluth/Superior, and Milwaukee Grain, will be a total increase of $.75 and shall be allocated according to the table listed below
1/1/2011-12/31/2011 an increase of $.35@ hour for a total of $14.35@ hour 1/1/2012-12/31/2012 an increase of $.40@ hour for a total of $14.75@ hour
*532 The above listed minimum contributions are to be allocated as per affiliated local contractual agreements and affiliated local trust fund agreements.

Section 18 of the Local Agreement also addresses pension and welfare plans. It states in part:

18. PENSION AND HEALTH WELFARE FUND
18.1 Contributions. The Company shall accrue an obligation to the MWTTI-ILA Health Welfare & Pension Fund (“Fund”) for each hour of work paid to members of the collective bargaining unit by the Company, whether paid at straight-time, overtime, penalty or premium rates and including standby time, guaranteed time and other nonproductive time actually paid (“contribution”). The contribution rate shall be determined be the Great Lakes District of the ILA and Employers Group.... The Fund is intended to constitute an unfunded obligation of the Company, but the Company shall maintain records of contributions, costs of benefits provided, and the current accrued balance.
Disputes.

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Bluebook (online)
560 F. App'x 529, Counsel Stack Legal Research, https://law.counselstack.com/opinion/local-1982-international-longshoremens-assn-v-midwest-terminals-of-ca6-2014.