Miller v. Chrysler Corp.

748 F.2d 323, 117 L.R.R.M. (BNA) 3068
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 5, 1984
DocketNo. 82-1387
StatusPublished
Cited by20 cases

This text of 748 F.2d 323 (Miller v. Chrysler Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Chrysler Corp., 748 F.2d 323, 117 L.R.R.M. (BNA) 3068 (6th Cir. 1984).

Opinion

WELLFORD, Circuit Judge.

In 1968, defendant UAW organized plaintiffs, a group of salaried technical and engineering employees of Chrysler’s Manufacturing Engineering Department, Car Assembly Staff. At that time plaintiffs were receiving higher salaries and greater fringe benefits than were other Chrysler employees doing similar work. During the organizational campaign, the UAW allegedly promised plaintiffs that they would retain their special benefits and that the Company could not unilaterally change these benefits. Subsequently the plaintiffs formed their own bargaining unit, Unit 30, within the framework of Local 412 of the UAW, and the Union negotiated a “Memorandum of Understanding,” which assured under certain circumstances the continuation of the plaintiff group’s special benefit status. In subsequent years the Union negotiated two Letter Agreements, which continued in effect the special benefits for those plaintiffs who were members of Unit 30 in 1968.

In 1974, defendant Chrysler decided to merge its stamping and assembly divisions. The defendant company informed plaintiffs [325]*325that the operations employing them were to be moved from the Hamtramek Assembly Plant to offices located on Outer Drive at or near Detroit. Plaintiffs then contacted defendant union expressing concern over the impending move and the potential loss of their special benefits. Later, in November, 1974, Chrysler officially notified the UAW that certain functions of the assembly division, including those of the plaintiffs, would be transferred pursuant to Section 57(b) of the National Engineering Agreement of October 19, 1973 between Chrysler and the UAW. Section 57(b) provides:

When operations are to be transferred from one such unit to another such unit, the Corporation will notify the International Union of such transfer. Such notice will be given as promptly as the circumstances in each case permit. The Corporation, at the request of the International Union, will negotiate the advisability of transferring to the receiving unit employees who are affected by the transfer of the work.

Plaintiffs were laid off in November, 1974, in connection with the merger of divisions. Their special administrative benefits ended and their bargaining unit disbanded. In January, 1975, the UAW and Chrysler negotiated an agreement under which plaintiffs were offered positions at the new plant on Outer Drive without their special benefits and higher salary classifications. Both Chrysler and the defendant Union took the position that plaintiffs were members of the bargaining group already in existence at the new Outer Drive facility, Local 212 of the UAW.

Thereafter, plaintiffs filed suit under Section 301 of the Labor Management Relations Act, 29 U.S.C. § 185(a), alleging that Chrysler had violated the collective bargaining agreement by transferring them and terminating their special benefits and that the Union had violated its duty of fair representation. Judge Gilmore, the trial judge, dismissed Count I of the complaint, which alleged that Chrysler had violated the collective bargaining agreement by terminating plaintiffs’ special benefits. The judge decided that plaintiffs were entitled to a trial on Count II, which alleged that Chrysler unilaterally abolished their bargaining unit and stripped them of their special wage rates, job classifications, and other benefits in violation of their bargaining agreement. The issue to be determined at the trial was whether exhaustion was necessary, and if so, whether plaintiffs had in fact exhausted their contractual and internal union remedies.

A. EXHAUSTION REQUIREMENT

After a trial, judgment was entered for defendants. The district court found “that plaintiffs failed to exhaust their adequate, available remedies under the contractual grievance procedure and that said failure was not excused by any claim of futility ____” From this adverse judgment, plaintiffs appeal.

An aggrieved employee “must attempt use of the contract grievance procedure agreed upon by employer and union as the mode of redress.” Republic Steel v. Maddox, 379 U.S. 650, 652, 85 S.Ct. 614, 616, 13 L.Ed.2d 580 (1965). “A contrary rule which would permit an individual employee to completely sidestep available grievance procedures in favor of a lawsuit has little to commend it.” Id; Monroe v. International Union, U.A.W., 723 F.2d 22 (6th Cir.1983). A recognized exception to this rule, however, exists when it is demonstrated. that it would be “futile” for the employee to pursue the contractual remedy. Glover v. St. Louis-San Francisco Ry. Co., 393 U.S. 324, 89 S.Ct. 548, 21 L.Ed.2d 519 (1969); Bsharah v. Eltra Corp., 394 F.2d 502 (6th Cir.1968).

Plaintiffs argue that no contractual remedy was pursued because it would have been futile to attempt to do so. Their underlying claim is that Section 57(b) of the National Engineering Agreement, which allows operations to fee transferred from one unit to another, was improperly applied to their particular unit. The district court held that the collective bargaining agreement provided grievance and arbitration [326]*326procedures through which the contractual merits of this claim could have been resolved. Exhibits in the record clearly establish that similar claims were dealt with through the contractual grievance and arbitration procedures. Plaintiffs in the instant case, however, assert that the Union would not have proceeded with their claim because it agreed with the Chrysler position about application of 57(b) of the contract.

Plaintiffs accordingly never filed a formal grievance or intra-union appeal with respect to this dispute. Rather, their argument is premised on a belief that the Union would not have carried through with such a grievance even if they had filed one.

Harold Schauer, the International Union representative, was heavily involved in the transactions surrounding the transfer of the plaintiffs, including the signing of a Memorandum of Understanding, dated January 15, 1973, agreeing to the transfer in dispute. Because of Schauer’s involvement, plaintiffs claim that he (and therefore the Union) would not be willing to vigorously pursue their claim. In his trial testimony, Schauer conceded that contesting the issue, after having just executed the agreement, might be difficult. However, he concluded that a meritorious claim would indeed be pursued. The trial judge credited this testimony.1

Of particular significance is the fact that plaintiffs were made aware of the pending transfer prior to its effectuation. Chrysler officially informed the International Union of its plans after plaintiffs were first made aware of them, and Chrysler officials then met with plaintiffs to explain the details of the transfer. Thus, plaintiffs knew of Chrysler’s plans for at least two months before the Union signed the Memorandum of Understanding. Certainly a grievance could have been filed before execution of this agreement. Mr.

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Miller v. Chrysler Corporation
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Bluebook (online)
748 F.2d 323, 117 L.R.R.M. (BNA) 3068, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-chrysler-corp-ca6-1984.