Local 75, International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers v. Schreiber Foods, Inc.

213 F.3d 376, 164 L.R.R.M. (BNA) 2385, 2000 U.S. App. LEXIS 11355, 2000 WL 656349
CourtCourt of Appeals for the Seventh Circuit
DecidedMay 22, 2000
Docket99-3480
StatusPublished
Cited by5 cases

This text of 213 F.3d 376 (Local 75, International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers v. Schreiber Foods, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local 75, International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers v. Schreiber Foods, Inc., 213 F.3d 376, 164 L.R.R.M. (BNA) 2385, 2000 U.S. App. LEXIS 11355, 2000 WL 656349 (7th Cir. 2000).

Opinion

KANNE, Circuit Judge.

The question in this case is whether Schreiber Foods, Inc. (“Schreiber”) must arbitrate the grievance of its employees’ union, Local 75 of the International Brotherhood of Teamsters (“Teamsters”), pursuant to the arbitration clause of their collective bargaining agreement. Although grievances arising under the agreement are arbitrable, Schreiber insists this grievance over scheduling is nonarbitrable because the agreement gives Schreiber abso *378 lute discretion over “administration” of certain programs and exempts questions of “administration” from the arbitration clause. However, we find that scheduling is not covered by the administration clause or exempted from arbitration because Schreiber’s discretion over scheduling is restricted by a different provision of the agreement limiting scheduling to “reasonable times and frequencies.” We affirm summary judgment in favor of the Teamsters.

I. HISTORY

During the summer of 1992, Schreiber and the Teamsters were in the midst of negotiations for a new collective bargaining agreement to begin the following year. Schreiber proposed a series of “Pay for Performance” programs (“PP programs”) in which Schreiber employees could earn compensation above their regular wage by participating in a variety of work safety activities. On September 28, 1992, while still negotiating their collective bargaining agreement, the parties codified their agreement on PP programs in a “Memorandum of Agreement of Pay for Performance” (“Memorandum”). Exhibit B-l of the Memorandum described one PP program, called the “Safe Work Program,” which Schreiber instituted on October 4, 1992.

The Memorandum also delineated básic guidelines for the establishment and administration of PP programs. Paragraph 5 of the Memorandum declares the following:

The administration (for example, including but not limited to, the content of any program, training, questions asked on any exam, grading of the exam, etc.) of the Pay for Performance program is in the exclusive discretion of the Company and it will not be subject to arbitration.

However, Paragraph 2 of the Memorandum adds the following stipulation:

The Company agrees to establish a training schedule at reasonable times and frequencies to afford employees who desire to participate in the Company’s pay for performance programs the opportunity to successfully complete such program before the anniversary date of the agreement as set forth in the parties’s collective bargaining agreement. Should the Company fail to provide this opportunity, the employee will be provided the benefits of such program until the employee has been provided such opportunity.

In addition, Paragraph 3 of the Memorandum states that “[t]he Company will post training schedules no less than four (4) months prior to any pay for performance effective date to assure adequate training time.” The parties eventually reached agreement on a new collective bargaining agreement (“CBA”) that incorporated the Memorandum and ran to September 27, 1997. Later, the parties would effectively extend the relevant terms of the CBA to September 29, 2002.

On April 23, 1993, as part of the Safe Work Program discussed in the Memorandum, Schreiber instituted a pre-workday exercise program that trained employees how to perform various exercises designed to prevent carpal tunnel syndrome. Schreiber permitted employees to perform their exercises during the fifteen minutes before their regular shifts and paid them overtime for the extra quarter-hour of work. The Memorandum does not refer specifically to a carpal tunnel syndrome prevention program, but Exhibit B-l of the Memorandum briefly alludes to carpal tunnel syndrome prevention, stating that “in the event an employee is diagnosed with Carpal Tunnel Syndrome, the employee will not lose Safe Work pay, provided the employee fully participates in Company sponsored Carpal Tunnel prevention programs.”

At the beginning of October 1997, Schreiber unilaterally abrogated the pre-workday period for carpal tunnel exercises and instructed employees to perform their exercises during their regular shifts in *379 stead. Employees participating in the carpal tunnel syndrome prevention program were therefore no longer able to collect overtime pay for their exercises, and employee participation in the program consequently plummeted from around 50 percent to 31 percent. On October 27, 1997, the Teamsters filed a grievance protesting that Schreiber violated the CBA by eliminating the fifteen-minute overtime period.

The Teamsters anticipated arbitration of the dispute because Article 10 of the CBA provides that “[grievances which arise during the term of this Agreement and are filed before the expiration date of the Agreement and have been timely processed through the Grievance Procedure but which have not been settled may be appealed to arbitration” and Article 9 of the CBA defines “grievance” as “a dispute arising under a provision of this Agreement.” However, on March 5, 1998, Schreiber responded to the grievance by citing Paragraph 5 of the Memorandum, which states that “[t]he administration ... of the Pay for Performance Program is in the exclusive discretion of the Company.” Schreiber explained that it “[did] not believe there is any binding agreement or practice obligating the Company to continue the T5 minutes of overtime.’ ” On August 25, 1998, after the Teamsters pressed for arbitration of its complaint, Schreiber answered that it “made the determination that this matter is not arbitrable under our Collective Bargaining Agreement.... This rescheduling of a program is part of the administration of the Safe Work Program under the Safe Work Memorandum of Agreement. Paragraph 5 of that Memorandum explicitly states that administration of the Program is not subject to arbitration.”

On October 29, 1998, the Teamsters brought suit against Schreiber before the Wisconsin Employment Relations Commission to compel arbitration of the grievance pursuant to Article 10 of the CBA. Schreiber removed the case under 28 U.S.C. § 1441(b) to federal district court on November 24, 1998. After cross-motions for summary judgment, the district court granted summary judgment in favor of the Teamsters on September 1, 1999. Schreiber now appeals.

II. Analysis

The duty to arbitrate is prescribed by contract, and “a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit.” United Steelworkers v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582, 80 S.Ct. 1347, 4 L.Ed.2d 1409 (1960). The Teamsters’ grievance is that Schreiber violated the Memorandum by changing scheduling for carpal tunnel exercises, and both parties agree that the Memorandum is part of the CBA. Thus, the Teamsters sued to compel arbitration pursuant to Article 10 of the CBA, which provides that disputes arising under the CBA “may be appealed to arbitration” as a matter of right. The district court granted summary judgment in favor of the Teamsters, finding that this dispute must be arbitrated under Article 10.

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213 F.3d 376, 164 L.R.R.M. (BNA) 2385, 2000 U.S. App. LEXIS 11355, 2000 WL 656349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/local-75-international-brotherhood-of-teamsters-chauffeurs-warehousemen-ca7-2000.