Local 781 International Ass'n of Firefighters v. City of Independence

996 S.W.2d 112, 1999 Mo. App. LEXIS 946, 162 L.R.R.M. (BNA) 2631, 1999 WL 485127
CourtMissouri Court of Appeals
DecidedJuly 13, 1999
DocketNo. WD 56385
StatusPublished
Cited by4 cases

This text of 996 S.W.2d 112 (Local 781 International Ass'n of Firefighters v. City of Independence) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local 781 International Ass'n of Firefighters v. City of Independence, 996 S.W.2d 112, 1999 Mo. App. LEXIS 946, 162 L.R.R.M. (BNA) 2631, 1999 WL 485127 (Mo. Ct. App. 1999).

Opinion

LAURA DENVIR STITH, Presiding Judge.

Local 781 International Association of Firefighters, AFL-CIO, appeals the judgment of the circuit court sustaining the City of Independence’s motion for summary judgment on Local 781’s action to compel the City to arbitrate a grievance filed by Local 781. In the suit, Local 781 alleges that it had a right to submit the grievance to an arbitrator pursuant to Section 23.3 of certain Interim Work Rules adopted by the City in September 1994, and that the City breached those Rules in refusing to submit the claim to an arbitrator. The circuit court denied the claim on the basis that the Interim Work Rules do not provide for arbitration of the grievance at issue, since it involves the establishment or change of wage rates, that the delegation to an arbitrator of the power to establish or change wage rates would be an unconstitutional delegation of legislative authority, and that in any event Local 781’s appeal of denial of its grievance was untimely. Local 781 appeals this determination. Because we find that the Interim Work Rules do not provide for arbitration of this grievance, in that it involves the [114]*114establishment or change of a wage rate, we affirm.

7. FACTUAL AND PROCEDURAL BACKGROUND

Defendant City of Independence operates a fire department to provide fire protection and emergency medical services for its residents. Plaintiff Local 781, a labor organization, represents the employees of the City’s fire department. From January 1, 1990 until January 1994, the City and Local 781 were parties to a contract providing for salaries, benefits, seniority, vacation, holidays, uniforms, and other working conditions of the firefighters. This contract also contained a schedule of compensation, described as “Table A.” This schedule provided for merit increases in compensation for members of the fire department effective on July 1, 1991, and again on December 1, 1991. It further provided for certain wage increases for probationary employees once their probationary period successfully ended. However, on June 21, 1992, the City passed Resolution Bill No. 92-292, declaring a moratorium on all merit increases for all employees covered by the City of Independence. This resolution froze all merit increases for the fiscal year beginning July 1, 1992 for the purpose of balancing the City’s budget, and was to continue in effect until the City had enough money to fund wage increases, at which point a new resolution would be enacted.

On January 5, 1998, several members of Local 781 filed grievance 93-01 protesting the moratorium on wage increases. The City scheduled a hearing in response to the grievance for April 22, 1998. On or about April 19, 1993, however, Local 781 informed the City that it was withdrawing its grievance. The moratorium continued in effect.

Following the expiration of the 1990 contract in 1994, the City conferred with Local 781 in order to reach an agreement on a future contract as required by statute. On September 20, 1994, the City Counsel of Independence passed Ordinance No. 12847, adopting the “Interim Work Rules.” These Interim Work Rules were to serve as a bridge between the expired 1990 contract and any future contract to be agreed to between the parties. No new contract has been agreed on, and the Interim Work Rules thus remain in effect.

The Interim Work Rules provide that disputes involving the interpretation or application of the provisions of the Interim Work Rules are required to be presented to the bargaining unit member’s immediate supervisor within 10 working days “of the date on which the cause of the grievance was known to the bargaining unit member or could reasonably be expected to have been known,” or the grievance “shall be considered dropped.” The Rules provide that any grievance or dispute as to the application or interpretation of the provisions of the Interim Work Rules is to be handled in up to four progressively more formal steps, potentially culminating in appeal to either the City Personnel Board or to an arbitrator. The Rules themselves also provide, however, that “the arbitrator shall have no power to establish or change any wage rates.”

On August 22, 1995, Local 781 filed another grievance, grievance 95-12, also based on the wage increase moratorium. The City denied the grievance and refused to submit the issue to arbitration, finding that the most recent grievance was merely an attempt to revive the original grievance filed and dismissed in 1993 and therefore was untimely.

No further action was taken until September 18, 1996, when both parties acknowledge that Local 781 filed grievance 96-14 (“G96-14”), protesting the moratorium for the third time. Both parties acknowledge that the City refused to process G96-14, and informed Local 781 that the Interim Work Rules’ grievance procedure was not an appropriate mechanism for resolving the dispute.

[115]*115As a result of the City’s refusal to process G96-14, Local 781 filed a Petition for Declaratory Judgment in Jackson County Circuit Court on March 28, 1997 alleging breach of contract and requesting that the court order the City to submit the issue to arbitration and to compensate Local 781 for costs and attorney’s fees. On May 19, 1997 the City filed an answer denying the allegations. During the next 14 months, both parties filed motions for summary judgment and numerous responses, replies, and suggestions in support. On August 12, 1998 the Jackson County Circuit Court issued an order and judgment granting the City’s motion for summary judgment. The court found that wage rates were expressly excluded from the arbitration process, and, moreover, that Local 781 exhausted its remedy when it withdrew its initial grievance in 1993. Local 781 appeals.

II. STANDARD OF REVIEW

Interpretation of a contract is a question of law which is subject to de novo review. Leggett v. Missouri State Life Ins. Co., 342 S.W.2d 833, 850 (Mo. banc 1960); Wallace Saunders, et al. v. Rohm, 963 S.W.2d 419, 422 (Mo.App. W.D.1998). When interpreting a contract, the overriding concern of this Court is to give effect to the intentions of the parties. Peterson v. Continental Boiler Works, Inc., 783 S.W.2d 896, 901 (Mo. banc 1990).

III. INTERIM WORK RULES

Local 781 argues that it is entitled to step wage increases it says were agreed to by the City in its Interim Work Rules adopted by Ordinance in September 1994, and that its grievance G96-14 addressing this issue should have been sent to the arbitrator for determination. Local 781 argues that the Interim Work Rules govern the relevant rights of the parties, and that those rules commit the issue of the City’s obligation to pay step wage increases to arbitration.

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996 S.W.2d 112, 1999 Mo. App. LEXIS 946, 162 L.R.R.M. (BNA) 2631, 1999 WL 485127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/local-781-international-assn-of-firefighters-v-city-of-independence-moctapp-1999.