Local Union 2-2000 United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied-Industrial, Chemical & Service Workers International Union v. Coca-Cola Refreshments USA, Inc.

906 F. Supp. 2d 731, 2012 WL 5879273, 2012 U.S. Dist. LEXIS 166567
CourtDistrict Court, W.D. Michigan
DecidedNovember 21, 2012
DocketCase No. 1:11-cv-295
StatusPublished
Cited by3 cases

This text of 906 F. Supp. 2d 731 (Local Union 2-2000 United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied-Industrial, Chemical & Service Workers International Union v. Coca-Cola Refreshments USA, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local Union 2-2000 United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied-Industrial, Chemical & Service Workers International Union v. Coca-Cola Refreshments USA, Inc., 906 F. Supp. 2d 731, 2012 WL 5879273, 2012 U.S. Dist. LEXIS 166567 (W.D. Mich. 2012).

Opinion

OPINION

JANET T. NEFF, District Judge.

Pending before the Court in this breach of contract case are the parties’ cross-motions for summary judgment on whether Defendant breached their 2009 Collective Bargaining Agreement (CBA) by the timing with which Defendant implemented certain agreed-upon wage increases. Defendant also moves for summary judgment in its favor on its threshold assertion that this action is time-barred. Having conducted a Pre-Motion Conference on this [734]*734matter and having now fully considered the parties’ written briefs, detailed stipulated statements of fact and accompanying exhibits, the Court finds that the relevant facts and arguments are adequately presented in these materials and that oral argument would not aid the decisional process. See W.D. Mich. LCivR 7.2(d). For the following reasons, the Court grants Plaintiffs’ Motion for Summary Judgment (Dkts. 48, 49) and denies Defendant’s Motion for Summary Judgment (Dkt. 52).

I. BACKGROUND

Plaintiffs are United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO-CLC (“USW”) and its local union affiliate, Local 2-2000 (Dkt. 43, Joint Statement of Facts [JSF] ¶ 1). The USW and Local 2-2000 (collectively “the unions”) represent the collective bargaining unit of approximately 350 industrial workers employed at the Paw Paw, Michigan facility owned and operated by Coca-Cola Refreshments USA, Inc. (“Coca-Cola”) (id.). The unions and Coca-Cola were parties to a March 25, 2006 — September 30, 2009 CBA (“2006 CBA”) governing the union-represented unit at Coca-Cola’s Paw Paw facility (id. ¶ 2). During September 2009, the unions and Coca-Cola met on multiple occasions and bargained to replace the expiring 2006 CBA (id. ¶ 3). The negotiators had between fifteen and twenty meetings (id.).

On September 28, 2009, the last day of bargaining, they bargained economics— wages and fringe benefits (JSF ¶ 3). Regarding percentage wage increases, which is the topic at issue in this case, Local 2-2000 proposed the following:

Year 1: 3%
Year 2: 3.5[%]
Year 3: 4%

(JSF ¶4). Later in the day, following caucus, Coca-Cola made a “Final Settlement Offer For New Collective Bargaining Agreement” (id. ¶ 5). The final offer included economic and non-economic terms (id.). Regarding percentage wage increases, Coca-Cola proposed the following:

Year 1: 0% increase
Year 2: 2.0% increase
Year 3: 3.0% increase

The “0%” for Year 1 called for a wage “freeze” (id.). During their 2009 negotiations, the parties discussed percentage wage increases but did not discuss specific calendar dates for these increases (id. ¶ 6).

Later still on September 28, 2009, following additional caucus, the unions accepted Coca-Cola’s final offer (JSF ¶ 7). Labor Relations Manager Jenna Barresi modified the “Company Final Settlement Offer For New Collective Bargaining Agreement” on her laptop computer into a Tentative Settlement Agreement (“TA”), completing it at 9:27 p.m. on September 28, 2009 (id. ¶ 8). After 9:27 p.m. on September 28, 2009, the parties signed the TA (id. ¶ 9). According to the unions, bargaining ended with the September 28, 2009 TA (Dkt. 43, Unions’ Statement of Facts [USF] ¶ 12A).

The TA provided that the “agreement duration” was “October 1, 2009-September 30, 2012” (JSF ¶10). The TA further provided that “[a]ll terms ánd conditions of the existing labor agreement, dated March 25, 2006 through September 30, 2009, shall remain in full force and effect except as modified herein” (id. ¶ 12). Under the heading “Wages,” the TA provided the following:

Year 1: 0% increase
Year 2: ■ 2.0% increase
Year 3: 3.0% increase

(Dkt. 39^, Ex. 4 at 3). Additionally, as to fringe benefits, the TA provided for three increases in Coca-Cola 401(k) contributions, “effective” May 2, 2010; May 1, [735]*7352011; and May 6, 2012 (id.). The TA provided for two “Retirement Plan” increases, “effective” March 25, 2010 and March 25, 2011 (id.). The TA provided for a $500 per-employee “ratification bonus” payable “within 14 days of ratification of this Agreement” (id. at 3, n. 1). The TA provided for a $500 “lump sum payment” payable on January 8, 2010 to each employee “on the payroll on January 1, 2010” (id. at 3, n. 2). The TA provided for three “sick & accident insurance” increases, “effective” April 1, 2009 (retroactively); April 1, 2011; and April 1, 2012 (id. at 4).

The TA was signed on September 28, 2009 by Coca-Cola General Manager Tracy Sweat; Coca-Cola International Director of Labor Relations Kent McVay; USW Staff Representative Richard Dietrich; and Local 2-2000 President Shaun Martin (JSF ¶ 13). According to the unions, the signed TA “memorializes the agreement reached at the table,” reflected that the “parties reached consensus” and was “the agreed-upon document” containing the terms to be “presented to the union members for their vote” (USF ¶ 13A, 13C). The parties signed the TA because they had a “deal,” subject to ratification by the Local 2-2000 membership (id. ¶ 13B). A pledge, proposed by Coca-Cola as part of its final offer, to “fully support and recommend” the TA “for ratification by the membership,” was attached to the TA (id. ¶ 13D).

Labor Relations Manager Barresi prepared a red-lined document for the Local 2-2000 ratification vote (JSF ¶ 14). It included “all of the language from the 2006 agreement that was unchanged” and the “new language that had been agreed to during the 2009 bargaining,” indicating the eliminated language by “cross-outs” and the new language by “underlines” (id.). The red-lined document provided that the new 3-year CBA was “made and entered into this 1st 26th day of March October, 2009 6” and “would continue in full force and effect until Í2i0111:59 p a.m., September 30, 2mm.” (JSF ¶ 15). The red-lined document also provided the following:

APPENDIX A

[YEAR 1: 0% increase

YEAR 2: 2.0% increase

YEAR 3: 3.0% increase]

(id. ¶ 16 [bold and underlines in original]). Barresi “used that Year 1, Year 2, Year 3 terminology in preparing the red-lined version because that is exactly what the terminology was in the TA and in the company’s final settlement agreement” (id. ¶ 17). The unions point out that Barresi did not use the Year 1, Year 2, Year 3 terminology for the fringe benefit increases in the red-lined document; rather, she used the various calendar dates specified in the TA for the fringe benefit increases (USF ¶ 17A).

Local 2-2000 members reviewed and voted to ratify (JSF ¶ 18). Local 2-2000 notified Coca-Cola of the ratification on September 30, 2009 (id.). Human Resources Manager Denise Briee-Walker testified that upon ratification, the “agreement between the parties is done” (USF ¶ 18G). Similarly, General Manager Sweat agreed that “as of the notification ...

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906 F. Supp. 2d 731, 2012 WL 5879273, 2012 U.S. Dist. LEXIS 166567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/local-union-2-2000-united-steel-paper-forestry-rubber-manufacturing-miwd-2012.