McKay v. Coca-Cola Bottling Co.

243 P.2d 35, 110 Cal. App. 2d 672, 1952 Cal. App. LEXIS 1584
CourtCalifornia Court of Appeal
DecidedApril 30, 1952
DocketCiv. 18752
StatusPublished
Cited by28 cases

This text of 243 P.2d 35 (McKay v. Coca-Cola Bottling Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKay v. Coca-Cola Bottling Co., 243 P.2d 35, 110 Cal. App. 2d 672, 1952 Cal. App. LEXIS 1584 (Cal. Ct. App. 1952).

Opinion

SHINN, P. J.

In a representative capacity, plaintiff John J. McKay, secretary-treasurer of Teamsters Union Local 186, brought this action for confirmation of an arbitration award pursuant to Code of Civil Procedure, section 1287. Over defendant’s objections judgment was entered confirming the award, and a writ of execution was issued. Later, on defendant’s motion the writ was quashed. Defendant appeals from the judgment confirming the award and plaintiff appeals from the order quashing the writ. We will first consider the appeal from the judgment.

Defendants (doing business as a partnership) and Local 186 entered into a collective bargaining agreement on March 1, 1947. The wages of all drivers, whether delivering Coca-Cola or beer, were fixed at a minimum of $60 per week. Duration of the agreement was to be five years with a provision for reopening for wage negotiations on March 1 each year, provided notice was given 60 days prior to that date. Notice was given in 1948 and on March 1, 1949, a supplemental agreement regarding wages was adopted. This supplemental agreement set the wages of all defendant’s employees except the beer sales drivers. Deliverers of Coca-Cola were to receive $66 per week. With respect to beer drivers the supplemental agreement provided that the wages of the beer drivers should be fixed by arbitration.

A board of three arbitrators (one employer representative, one union representative and one neutral arbitrator) met October 4, 1949, to consider what the minimum wage rate for beer drivers should be. At that time defendant was voluntarily paying $63 per week. The union was asking for a rate of $75 per week. It was stipulated that all of defendant’s competitors in the Santa Barbara area were paying $63 to soft drink drivers and two competitors were paying only $63 to beer drivers. During the arbitration hearing defendant adopted this wage for its drivers, under a contract provision hereinafter set forth. It developed that prior to June 1, *674 1949, other competitors paid $72.50 per weeks to beer drivers which was the rate received by 95 per cent of the beer drivers in California. On March 14, 1950, the neutral arbitrator rendered a decision that the minimum wage scale should be $72.50. The union arbitrator concurred.

It is stated in appellant’s opening brief: “Despite the provisions of Code of Civil Procedure, Section 1280, the arbitration provisions of the Code of Civil Procedure apply to this type of labor contract arbitration. Levy v. Superior Court, 15 Cal.2d 692 [104 P.2d 770, 129 A.L.R. 956].” We shall so assume.

Defendant’s claim of error in the judgment is that the powers of the arbitrators were limited by the terms of the contract and that the award violates controlling contract terms. Those to be considered are the following: (1) The special agreement for arbitration in the 1949 agreement: “With respect to the wages, hours and conditions of employment of the Beer Sales Drivers, Warehousemen, Checkers and Helpers, it is agreed that the compensation for the employees of employer handling beer and the determination of their proper classification shall be made the subject of an arbitration, determination and award which shall be made in due course, to take effect from March 1st, 1949, and which shall be final and binding upon the parties”; (2) the general arbitration clause of the 1947 contract: “11. Parties hereto agree that wages, hours and conditions of employment shall be open to negotiations on March 1st of each year by written notice given by either party to the other by December 1st of each year commencing with December 1st, 1947. If the parties cannot agree, any matter of differences in respect thereto shall be subject to arbitration in the manner provided by paragraph 5 of the aforesaid agreement”; and (3) the most favored employer clause of the 1947 agreement: “7. The Union agrees that in the event it shall suffer, permit, or enter into any contract, agreement, understanding or condition between the Union and any competitor of the Employer, which is more favorable to Employer than the terms of this agreement, such contract, agreement, understanding, or condition shall, at the option of the Employer, be applicable to and deemed incorporated in this agreement, provided, however, that the foregoing shall not apply to any award to which the Union is a party, which shall be arrived at by arbitration. ...”

*675 The argument defendant makes may be stated as follows: At the time of the arbitration two of defendant’s competitors were paying but $63 minimum wage to beer drivers; defendant elected to avail itself of its right under paragraph 7 to take the benefit of the wage rate being paid by these competitors and therefore the arbitrators were without power to fix a wage for defendant’s beer drivers in excess of $63 per week minimum.

The meaning of this argument is that defendant could not be required to pay more, by means of an arbitration award, than its competitors were paying. The question was presented to the arbitrators whether paragraph 7 so limited their powers as to forbid their fixing the wages of defendant’s beer drivers at more than $63 per week. Their decision reads in part as follows: “Issue No. 1: Inasmuch as the agreement of March 1, 1947 (Ex. 1) provides for a weekly wage of $60.00 per week for beer sales drivers and the lowest wage paid by any competitor of the employer is $63.00 per week, under the ‘favored employers clause’ of said agreement is such a competitor one that has a contract, agreement or understanding with the union more favorable than the terms of the agreement with the employer if the award to be made is higher than the wage paid by such competitor ?

“Decision : No. Such a competitor does not have a contract,, agreement, or understanding with the union more favorable than the terms of the union’s agreement of March 1, 1947. (Ex. 1.)”

When defendant elected, under paragraph 7, to adopt a wage of $63 per week, its contract was thereby modified and the original wage became nonoperative. Manifestly a competitor paying a wage of $63 per week has a more favorable contract than one who is paying $72.50. Plaintiff argues that defendant would not have been discriminated against before the award unless some competitor was paying less than $60 per week, nor after the award unless a competitor was paying less than $63 per week. The latter part of the argument is an attempt to justify the reasoning of the arbitrators. It ignores the fact that by the award the wage rate of $72.50 is substituted for the former rate and is thereby written into the agreement. The decision, in its reasoning, evades the real question. But if the arbitrators reached a conclusion which was within the scope of a proper arbitration, unsound reasoning would not invalidate the result.

*676 As defendant construes the several quoted provisions the arbitration procedure could not be used at all unless some competitor was at the time operating under a contract more favorable to the union in some respect than that of defendant. Even then, and specifically as to wages, an award could not exceed the amount being paid by the competitor. We cannot agree.

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Bluebook (online)
243 P.2d 35, 110 Cal. App. 2d 672, 1952 Cal. App. LEXIS 1584, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckay-v-coca-cola-bottling-co-calctapp-1952.