Miller Brewing Co. v. Brewery Workers Local Union No. 9

562 F. Supp. 1368, 113 L.R.R.M. (BNA) 2458, 1983 U.S. Dist. LEXIS 17152
CourtDistrict Court, E.D. Wisconsin
DecidedMay 6, 1983
DocketCiv. A. 82-C-925
StatusPublished
Cited by6 cases

This text of 562 F. Supp. 1368 (Miller Brewing Co. v. Brewery Workers Local Union No. 9) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller Brewing Co. v. Brewery Workers Local Union No. 9, 562 F. Supp. 1368, 113 L.R.R.M. (BNA) 2458, 1983 U.S. Dist. LEXIS 17152 (E.D. Wis. 1983).

Opinion

DECISION AND ORDER

REYNOLDS, Chief Judge.

This is an action to vacate an arbitration award dated July 26,1982, finding that the plaintiff Miller Brewing Co. had violated its collective bargaining agreement with the defendant Brewery Workers Local No. 9, Directly Affiliated Local Union, AFL-CIO, by recalling its temporary employees rather than preferentially hiring union members who lost their jobs at the Joseph Schlitz Brewing Co. when Schlitz closed its Milwaukee brewery. The arbitration award also required Miller to hire the former Schlitz employees who had applied for positions with Miller. The Union has filed a counterclaim seeking to confirm the arbitrator’s decision.

Presently before the Court are the motion of Gary Lee Blawat, one of the temporary Miller employees who was recalled, to intervene as a third-party plaintiff, the motion of Blawat for class certification, and the motion of the defendant Union for summary judgment. The motion to intervene is opposed by the defendant Union and supported by the plaintiff Miller.

FACTS

The defendant Union was the certified representative for production employees of the Miller Brewing Co., Pabst Brewing Co., and Joseph Schlitz Brewing Co. These three companies constituted the Brewery Proprietors of Milwaukee, Wisconsin. The collective bargaining agreement entered into between the Union and the Brewery Proprietors effective from June 1, 1979 to June 1, 1981, in article I, set forth a recall procedure in which “regular employees laid off from other signatory Employers shall have preference in hiring before any such temporary employee is recalled.”

Prior to the termination of the 1979-1981 collective bargaining agreement, the Joseph Schlitz Brewing Co. withdrew from the Brewery Proprietors to bargain separately with the Union over a contract covering June 1, 1981-June 1, 1983. Miller and Pabst, however, collectively bargained with the Union and on May 23, 1981 concluded a collective bargaining agreement effective from June 1, 1981 to June 1, 1983. The seniority provision of this new collective bargaining agreement provided in article I, section 5, that “regular employees laid off from other signatory employers or those employers signatory to the 1979-81 agreement shall have preference in hiring before any such temporary employee is recalled.”

On June 1, 1981, the Union and Schlitz were without a contract and as a result, the Union went o'n strike against Schlitz. On July 31,1981, Schlitz announced the permanent closing of its Milwaukee brewery effective September 30, 1981. Schlitz Brewing Co. sent its employees a Notice of Termination effective September 30, 1981. Subsequently, Schlitz and the Union entered into a shutdown agreement dated December 6, 1981.

On January 4, 1982 Miller Brewing Co. recalled 39 Miller “temporary” employees. Gene Pearson, a former Schlitz employee, filed a grievance alleging Miller Brewing Co. violated article I, section 5 of the labor agreement when Miller re-employed its temporary employees rather than hiring former Schlitz regular employees who lost their jobs when Schlitz closed its Milwaukee brewery. This grievance was processed through the grievance procedure set forth in the collective bargaining agreement without resolution.

The Union then demanded arbitration of the grievance and on May 14, 1982 a hearing was held before Arbitrator Edward B. Krinsky. On July 26, 1982, Arbitrator Ed *1371 ward B. Krinsky issued and delivered his award concluding that the regular employees of the Joseph Schlitz Brewing Co. were “laid off” within the meaning of the current labor agreement. The arbitrator determined that Miller had violated the agreement by recalling its temporary employees rather than granting preference to the permanently laid off Schlitz employees as required by article I of the collective bargaining agreement. Under article XXIV, section 3(a) of the collective bargaining agreement, the decision of the arbitrator is final and binding.

MOTION TO INTERVENE

Gary Lee Blawat seeks to intervene as a third-party plaintiff against the Union. The remedy he seeks is the same as that sought by Miller — vacation of the arbitrator’s award. Blawat’s standing to intervene to challenge the arbitration award is affected not only by the requirements of Fed.R.Civ.P. 24, but also by substantive principles of federal labor law. F.W. Woolworth Co. v. Miscellaneous Warehousemen’s Union, Local No. 781, 629 F.2d 1204, 1208 (7th Cir.1980) cert. denied, 451 U.S. 937, 101 S.Ct. 2016, 68 L.Ed.2d 324 (1981). In this case, substantive rules of federal labor law preclude intervention.

The general rule that has developed is that an employee may not attempt to vacate an arbitration award unless the union has breached its duty of fair representation. In Acuff v. United Papermakers and Paperworkers, AFL-CIO, 404 F.2d 169 (5th Cir.1968), cert. denied 394 U.S. 987, 89 S.Ct. 1466, 22 L.Ed.2d 762 (1969), the grievance of 63 discharged employees was submitted to arbitration after the Union brought an action to compel arbitration in the district court. The arbitrator denied the grievance of 16 employees and ordered that the discharge of the remaining employees be reduced to a disciplinary layoff. The sixteen employees whose grievances were denied and some of the other employees whose grievances were denied in part sought to intervene in the district court, which had retained jurisdiction, and to vacate the award.

The Fifth Circuit held that the employees could not intervene. The Court noted that the right to organize entails certain burdens. “One of these is that to some extent the interests of particular individuals are subordinated to the interests of the group both at the contract negotiation stage and thereafter.... As a result, a union may properly determine not to pursue a member’s grievance to the arbitration stage at all.” 404 F.2d at 171. The court qualified its holding, however, by stating that relief might be forthcoming if the union had breached its duty of fair representation.

The Ninth Circuit has also held that a fairly represented employee may not seek to vacate an arbitration award. Andrus v. Convoy Co., 480 F.2d 604 (9th Cir.), cert. denied 414 U.S. 989, 94 S.Ct. 286, 38 L.Ed.2d 228 (1973).

The Seventh Circuit has allowed union members to intervene where they seek to uphold the arbitration award. In F.W. Woolworth Co. v. Miscellaneous Warehousemen’s Union, Local No. 781, 629 F.2d 1204 (7th Cir.1980), cert. denied 451 U.S. 937, 101 S.Ct. 2016, 68 L.Ed.2d 324 (1981), the arbitration award was in favor of the discharged employees. The employer successfully prosecuted an action against the union to vacate the award. The union decided not to appeal the district court’s ruling. Thereafter, the discharged employees sought to intervene and filed a notice of appeal.

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Bluebook (online)
562 F. Supp. 1368, 113 L.R.R.M. (BNA) 2458, 1983 U.S. Dist. LEXIS 17152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-brewing-co-v-brewery-workers-local-union-no-9-wied-1983.