Massachusetts Bay Transportation Authority v. M.B.T.A. Executive Union, Local 9501

24 Mass. L. Rptr. 253
CourtMassachusetts Superior Court
DecidedJuly 2, 2008
DocketNo. 06150IE
StatusPublished

This text of 24 Mass. L. Rptr. 253 (Massachusetts Bay Transportation Authority v. M.B.T.A. Executive Union, Local 9501) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Massachusetts Bay Transportation Authority v. M.B.T.A. Executive Union, Local 9501, 24 Mass. L. Rptr. 253 (Mass. Ct. App. 2008).

Opinion

MacDonald, D. Lloyd, J.

This is a contempt action brought by the defendant M.B.T.A. Executive Union, Local 9501 (“the Union”) against plaintiff Massachusetts Bay Transportation Authority (“the Authority”) alleging that the Authority has failed to comply with an earlier judgment of this Court confirming an arbitration award in favor of the Union and against the Authority.

[254]*254A hearing pursuant to Mass.R.Civ.P. 65.3(d) was held, and the merits were joined on the papers.

For the reasons that follow, the Court dismisses the complaint for contempt, but the Court further orders that the Authority make the payments that are the object of the Union’s contempt complaint.

Background

In March 2005, the Authority laid off approximately thirty employees, including Union members Joseph Plati (“Plati”) and Anthony Battle (“Battle”). Pursuant to the terms of the collective bargaining agreement between the Authority and the Union, employees were entitled to fifteen work-days’ advance notice of layoffs. Plati and Battle were not provided with the advance notice. Instead, they were given three weeks’ pay. Plati and Battle also accepted a severance package from the Authority that provided them with an additional six weeks’ pay.

Subsequently, the Union filed grievances on behalf of Plati and Battle, alleging that the Authority had violated the layoff procedures specified in the collective bargaining agreement. Pursuant to the collective bargaining agreement, the parties submitted the following issue for resolution to an arbitrator: “Did the Authority violate the layoff and recall procedure article when it separated Anthony Battle and Joseph Plati from their employment on March 2, 2005. If so, what shall be the remedy?” On March 6, 2006, the arbitrator issued an award:

The Authority violated the layoff and recall procedures of the parties’ collective bargaining agreement when it separated Joseph Plati and Anthony Battle from employment on March 2, 2005 without 15 scheduled workdays’ advance notice.
As a remedy for this contract violation, Joseph Plati and Anthony Battle must be reinstated to their former positions and made whole with back pay and benefits, less the nine weeks’ severance pay they received upon layoff. Their reinstatement shall be without loss of seniority.

In April 2006, the Authority applied to vacate the arbitrator’s award. G.L.c. 150C, §11. In doing so, the Authority did not challenge the arbitrator’s finding that it had violated the contract, but it instead claimed that the arbitrator’s award of reinstatement conflicted with the Authority’s statutory right to control its own staffing levels. The Union counterclaimed to confirm the award. This Court denied the Authority’s Application to Vacate and ordered that judgment enter confirming the award. Memorandum of Decision and Order on Plaintiff s Application to Vacate Arbitration Award, Mass. Bay Transp. Auth. v. M.B.T.A. Executive Union, Local 9501, Civil No. 06-1501 (Suffolk Super.Ct. Mar. 15, 2007) (Sanders, J.) (Paper #6).

The Authority complied with that portion of the Award requiring Plati and Battle to be reinstated, and the Authority made certain reimbursements. The Authority paid Plati and Battle their wages during the period that they were laid off; however, it withheld an amount equivalent to the income and unemployment compensation both Plati and Battle received during the two-year period. The Authority withheld a total of $24,336.00 from Plati and a total of $28,739.73 from Battle.

The Union argues that by withholding these sums, the Authority failed to comply with this Court’s Order confirming the Arbitrator’s Award. The Authority argues that its standard practice is to deduct unemployment compensation and interim earnings from any back pay, and that the “make whole” nature of the Award was intended only to restore Plati and Battle to the position they were in before their termination and not to provide them with a windfall.

The Authority argues that the arbitrator’s “make whole” remedy should be interpreted as entitling the Authority to offset any back pay award by the amount of outside earnings and unemployment compensation Plati and Battle received. The Authority also contends that the matter should be remanded to the arbitrator for clarification or resubmitted to the grievance procedure outlined in the contract between the Authority and the Union.

Discussion

Civil contempt requires a “clear and undoubted disobedience of a clear and unequivocal command” of a court. Manchester v. Dep’t of Envtl. Quality Eng’g, 381 Mass. 208, 212 (1980) (quoting United Factory Outlet, Inc. v. Jay’s Stores, Inc., 361 Mass. 35, 36 (1972)); see also Demoulas v. Demoulas Super Markets, Inc., 424 Mass. 501, 565 (1997). The burden is on the plaintiff in the contempt action to prove contempt by a preponderance of the evidence. Manchester, 381 Mass. at 212.

The issue of whether an employer is entitled to offset an arbitrator’s “make whole” award by an employee’s interim earnings and unemployment compensation where the arbitration award is silent on the issue of offsets has not been addressed in the Commonwealth. However, two decisions from the 7th Circuit Court of Appeals interpreting arbitration awards in labor disputes are instructive.

In Automobile Mechanics Local 701 v. Joe Mitchell Buick, Inc., 930 F.2d 576 (7th Cir. 1991), the arbitrator had ruled in favor of two union members. The award stated, “The [employees] shall be made whole by the Company for loss of earnings and benefits which resulted from their wrongful termination.” Id. at 577. The employer claimed that the total wage amounts due the employees should include offsets for the employees’ alleged failure to mitigate damages and for interim wages earned by the employees. Id. The union claimed that the arbitrator’s silence on the issue of offsets meant that no offsets were intended. Id.

[255]*255The Seventh Circuit agreed with the union: “It is settled that arbitrators have discretion to decide whether lost earnings should be offset by interim earnings or a failure to mitigate, so that their silence on such issues means that no such offsets are to be made.” Id. at 578. The court held that the employer had expressly raised the employees’ failure to mitigate before the arbitrator and therefore the arbitrator’s silence on that issue indicated that he did not intend to offset the award for a failure to mitigate. Id. With respect to offsets for the employees’ interim wages, the court held that the employer’s failure to raise the issue before the arbitrator precluded the employer from raising that issue as a defense to the union’s action to enforce the arbitrator’s award. Id.

In International Union of Operating Engineers, Local No. 841 v. Murphy Co., 82 F.3d 185, 186 (7th Cir.

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Related

Frank Derwin v. General Dynamics Corporation
719 F.2d 484 (First Circuit, 1983)
United Factory Outlet, Inc. v. Jay's Stores, Inc.
278 N.E.2d 716 (Massachusetts Supreme Judicial Court, 1972)
Manchester v. DEPT. OF ENVIRONMENTAL QUALITY ENG'G
409 N.E.2d 176 (Massachusetts Supreme Judicial Court, 1980)
School Committee of Newton v. Labor Relations Comm.
447 N.E.2d 1201 (Massachusetts Supreme Judicial Court, 1983)
In re Casson
589 N.E.2d 305 (Massachusetts Supreme Judicial Court, 1992)
Demoulas v. Demoulas Super Markets, Inc.
677 N.E.2d 159 (Massachusetts Supreme Judicial Court, 1997)

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Bluebook (online)
24 Mass. L. Rptr. 253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/massachusetts-bay-transportation-authority-v-mbta-executive-union-masssuperct-2008.