Local Union No. 1, Bakery, Confectionery, Tobacco Workers & Grain Millers International Union v. Mel-O-Cream Donuts International, Inc.

318 F. Supp. 2d 711, 174 L.R.R.M. (BNA) 3219, 2004 U.S. Dist. LEXIS 8844, 2004 WL 1109901
CourtDistrict Court, C.D. Illinois
DecidedMay 19, 2004
Docket02-3356
StatusPublished
Cited by2 cases

This text of 318 F. Supp. 2d 711 (Local Union No. 1, Bakery, Confectionery, Tobacco Workers & Grain Millers International Union v. Mel-O-Cream Donuts International, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local Union No. 1, Bakery, Confectionery, Tobacco Workers & Grain Millers International Union v. Mel-O-Cream Donuts International, Inc., 318 F. Supp. 2d 711, 174 L.R.R.M. (BNA) 3219, 2004 U.S. Dist. LEXIS 8844, 2004 WL 1109901 (C.D. Ill. 2004).

Opinion

ORDER

SCOTT, District Judge.

This matter came before the Court on January 26, 2004, for bench trial. Present for Plaintiff Local Union No. 1 (Local 1) was counsel Gilbert Cornfield. Also present was Jethro Head, president of Local 1. Present for Defendant Mel-O-Cream was counsel David Jones. Also present for Mel-O-Cream was Dave Ryan, Mel-O-Cream human resources director, and Keith Braskich 1 .

*713 Local l’s First Amended Complaint was brought pursuant to § 301 of the Labor Management Relations Act (LMRA), 29 U.S.C. § 185, and seeks to compel arbitration of grievances filed September 27, 2002, and October 11, 2002. Count I claims that Local 1 is entitled to an order to arbitrate these grievances because the Collective Bargaining Agreement between the parties became effective on September 19, 2002, and the grievances were filed after that date. Count II claims that Local 1 is entitled to arbitration of these grievances because on September 19, 2002, an implied-in-fact interim agreement, which included an arbitration clause, was created. Alternatively, Count II asks this Court to make a determination on the merits of the grievances filed pursuant to an implied-in-fact interim agreement. This Order constitutes the Court’s findings of fact and conclusions of law under Federal Rule of Civil Procedure 52.

The Court finds that the parties formed a Collective Bargaining Agreement (CBA) on October 11, 2002. That is the date that the parties manifested their intention to be bound. Before October 11, 2002, the parties did not manifest an intent to be bound to a CBA, nor did their actions create an implied-in-fact interim agreement. The grievances filed October 11, 2002, were filed contemporaneously with the formation of the CBA, and therefore, the Court orders Mel-O-Cream to submit these grievances to arbitration. Mel-O-Cream is not required to submit the grievances filed September 27, 2002, to arbitration. This Order constitutes the findings of fact and conclusions of law under Federal Rule of Civil Procedure 52.

STATEMENT OF FACTS

Local 1 is a labor organization within the meaning of § 301 of the LMRA, and Mel-O-Cream is an employer within the meaning of § 301. Local 1 and its predecessor represented a bargaining unit of Mel-O-Cream employees covered by a collective bargaining agreement effective from May I, 1999, through April 30, 2002. In March 2002, the parties began negotiating a successor collective bargaining agreement.

On or about July 5, 2002, Braskich, counsel for Mel-O-Cream, sent a letter to Head which stated: “Enclosed is the Company’s last and final offer, as set forth at the end of our meeting on July 4. This document includes the items that have been agreed upon, and also those portions of the contract where Company proposals on the open items are set forth.” J. Ex. 5. On July 7, 2002, Local 1 commenced a strike. Pretrial Order, p. 3, ¶ 12, Transcript, p. 20.

On July 8, 2002, Ryan sent Head a letter which invited all striking workers to continue working. He also informed Head that the company might hire replacement workers, and if permanent replacements were hired, the company would retain those employees even if the strike concluded. The striking employees would be offered positions on the basis of need and if vacancies occurred. Ryan stated that:

Inasmuch as the Union has terminated the Labor Agreement, and no new contract is in effect, the Company will discontinue applying the securities, dues checkoff, and arbitration provisions of the expired contract. Those provisions will become effective once a new contract is signed.

J. Ex. 6.

In a letter to Head dated July 16, 2002, Ryan noted that:

On July 4, 2002, the Company presented the Union with its last and final offer. ...
*714 On July 6, 2002, the Union rejected the Company’s final offer. On July 7, the Union commenced a strike against the Company.
It is our position that the parties are at an impasse. Please be advised that the Company intends to implement its last and final offer at 10:00 p.m. on July 21, 2002.

J. Ex. 7. In a letter to Head dated August 20, 2002, Ryan stated that Mel-O-Cream had hired 26 employees since the strike began, and the company considered those 26 employees as permanent replacements. J. Ex. 8.

At an August 29, 2002, meeting, Local 1 presented Mel-O-Cream with a proposal regarding the return of striking workers once the strike terminated, and Mel-O-Cream again took the position that the employees hired after the strike began were permanent replacements. Pretrial Order, p. 4, ¶¶ 17-18. On September 4, 2002, Head sent Ryan a letter requesting information regarding the replacement of striking employees and a letter requesting information on the union’s August 29, 2002, proposal. J. Exs. 10 and 11. Also on September 4, 2002, Local 1 filed a charge with the National Labor Relations Board (NLRB) claiming that Mel-O-Cream had engaged in unfair labor practices. Tr. p. 116. The NLRB Regional Office refused to issue a complaint on this charge, and this refusal was upheld by the NLRB’s Office of General Counsel. Tr., pp. 116, 168-69, Def. Ex. 5.

On September 10, 2002, Mel-O-Cream, in response to Local l’s request for information, sent Local 1 a list of new hires and temporary employees. J. Ex. 12. Mel-O-Cream also reiterated its position that it considered the newly hired employees to be permanent replacements, despite the union’s contention that the replacement workers should be displaced by striking employees when the union returned to work. J. Ex. 13. Mel-O-Cream also stated that the union had not made an unconditional offer to return to work, and when it did, the return of striking workers would be contingent on the existence of vacant positions and the Company’s needs. Id.

On September 19, 2002, Head sent a letter to Ryan which stated: “The purpose of this letter is to officially notify you that the Union is accepting Mel-O-Cream’s final offer of July 4, 2002.” J. Ex. II. In a separate letter, also dated September 19, 2002, Head stated: “all striking employees will be returning to work effective Sunday, September 22, 2002.” J. Ex. 15. In a letter dated September 20, 2002, Braskich informed Head that:

We will send you in the near future a eover-to-cover copy of the new labor agreement for signature.
With respect to the ending of the strike, striking employees will not be permitted to return to work on September 22, 2002.

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318 F. Supp. 2d 711, 174 L.R.R.M. (BNA) 3219, 2004 U.S. Dist. LEXIS 8844, 2004 WL 1109901, Counsel Stack Legal Research, https://law.counselstack.com/opinion/local-union-no-1-bakery-confectionery-tobacco-workers-grain-millers-ilcd-2004.