Pattern Makers' Pension Trust Fund v. Badger Pattern Works, Inc.

615 F. Supp. 792, 1985 U.S. Dist. LEXIS 17642, 109 Lab. Cas. (CCH) 10,498
CourtDistrict Court, N.D. Illinois
DecidedJuly 22, 1985
Docket84 C 182
StatusPublished
Cited by11 cases

This text of 615 F. Supp. 792 (Pattern Makers' Pension Trust Fund v. Badger Pattern Works, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pattern Makers' Pension Trust Fund v. Badger Pattern Works, Inc., 615 F. Supp. 792, 1985 U.S. Dist. LEXIS 17642, 109 Lab. Cas. (CCH) 10,498 (N.D. Ill. 1985).

Opinion

MEMORANDUM OPINION AND ORDER

SHADUR, District Judge.

Pattern Makers’ Pension Trust Fund (“Trust”) has sued Badger Pattern Works, Inc. (“Badger”) under Employee Retirement Income Security Act' (“ERISA”) § 502, 29 U.S.C. § 1132, and National Labor Relations Act as amended (“NLRA”) § 301, 29 U.S.C. § 185, to recover pension fund contributions Badger allegedly owes Trust. Now Trust has filed a Fed.R.Civ.P. (“Rule”) 56 motion for partial summary judgment, and Badger has responded with a motion for summary judgment as to the entire Complaint. For the reasons stated in this memorandum opinion and order, both motions are granted in part and denied in part.

Background 1

Badger is a manufacturer of wood, metal and plastic patterns used by foundries. For many years it has employed workers represented by the Pattern Makers’ League of North America, Pattern Makers’ Association of Milwaukee and Vicinity *796 (“Union”). Under the terms of its 1980-83 collective bargaining agreement with Union (the “CBA”), Badger was obligated to make contributions to Trust’s pension fund (the “Fund”), calculated on the basis of all hours worked by Badger employees at tasks historically performed by pattern makers. CBA 1120.2 specified the hourly contribution rate and CBA ¶ 20.4 incorporated the terms of the Agreement and Declaration of Trust (the “Declaration”) creating Trust.

Declaration Art. VI, § 1 sets out the basis for contributions to the Fund:

In order to effectuate the purposes hereof, each Employer shall contribute to the Fund the amount required by any written agreement as defined herein between the Union or the Trust and the Employer. The rate of contribution shall at all times be governed by the applicable written Agreement then in force and effect, together with any amendments, supplements or modifications thereto provided, however, that in the case of an Employer who is required to make contributions by reason of his being party to a written agreement other than a Collective Bargaining Agreement the amount of contribution shall be identical to the amount required by the Collective Bargaining Agreement in effect between the Employer Association and the Local Union having jurisdiction over the geographic area in which the covered Employees perform work. If no Employer Association exists within the geographical area then the rate of contribution shall be at the highest negotiated rate between the Union and the Employer existing in the geographical area within the jurisdiction of the Local Union, unless otherwise determined by the Trustees.

Declaration Art. I, § 1 defines “Employer” in part as one who:

(e) in writing adopts and agrees to be bound by the terms and provisions of this [Declaration] as the same may be amended or modified from time to time; or (d) is a party to any written instrument which evidences an agreement to be bound by the provisions of this [Declaration].

Under Declaration Art. I, § 2(e) the term “Employee” encompasses, in addition to persons covered by a collective bargaining agreement obliging the Employer to make contributions to the Fund:

any person who is not covered by a collective bargaining agreement but on whose behalf his Employer is otherwise obligated to make contributions to the Fund in accordance with the provisions of this [Declaration] who performs work which would be work performed by members of a bargaining unit recognized by the Employer or certified by the National Labor Relations Board if said persons’ Employer were a party to any of the standard collective bargaining agreements by and between the Union and the [Pattern Manufacturers’ Association of Chicago and Vicinity],

Finally Declaration Art. I, § 11 defines the term “written agreement” as:

any agreement in writing which specifies the detailed basis on which contributions shall be made to the Fund together with any modifications, amendments or renewals thereof, including but not limited to collective bargaining agreements, memoranda of understanding which incorporate by reference collective bargaining agreements or this [Declaration], report forms in accordance with which contributions are made and which obligate the Employer to the provisions of this [Declaration], or any other agreement obligating the Employer signatory thereto to participate in or be bound by this [Declaration] and/or the Plan established pursuant hereto.

In each of 1971 and 1974, at the same time Badger entered into new collective bargaining agreements with Union, it also entered into a Contributory Employers’ Agreement (“CEA”) with Trust. In each CEA Badger “agrees to be bound by and to comply with all of the terms and provisions of the [Declaration].” In addition each CEA provides:

*797 Contributions to the Trust by the undersigned, as required by the [Declaration], as amended, at the rates and in accordance with the Collective Bargaining Agreement applicable to the undersigned, as amended, modified, renewed or superseded, from time to time, shall commence as of the date required by said applicable Collective Bargaining Agreement and shall continue for the period therein provided and thereafter until written notice revoking this Agreement is given to the Trust.

With that contractual regime in place, Badger and Union entered into negotiations for an agreement to succeed the CBA, which was due to expire April 30, 1983. At the first bargaining session held February 16, 1983, Badger presented a proposed contract seeking wage and benefit concessions designed to assure Badger’s effective competition in a difficult market (Def.Ex. 2, AA, BB). Similarly focused negotiations between Union and Badger continued into June despite the April 30 expiration of the CBA. Throughout those negotiations Badger proposed contributions to the Fund calculated at an hourly rate of $1.25—the contribution rate Badger had been obligated to pay under the CBA since May 1, 1982—for the duration of the agreement under negotiation.

Following a final bargaining session June 22, Badger President and sole shareholder Richard Blankenheim (“Blankenheim”) sent a June 27 telegram to Union Business Manager Joe Grow (“Grow”) (Def.Ex. F):

Based upon the status of our negotiations and the rejection of our final offer by the membership on June 11, 1983 Badger Pattern is constrained to implement the first year of its final offer____ Badger is constrained to take this action to protect its business interests and to improve its competitive posture within the industry. Implementation will become effective on June 28, 1983.

Next day (June 28) Union struck Badger. On June 29 Union filed charges with the NLRB, alleging Badger had implemented its final offer without having reached an impasse with Union. On August 16 the NLRB’s regional director concluded impasse had been reached before June 27 and declined to pursue Union’s charges. Union remains on strike against Badger.

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Cite This Page — Counsel Stack

Bluebook (online)
615 F. Supp. 792, 1985 U.S. Dist. LEXIS 17642, 109 Lab. Cas. (CCH) 10,498, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pattern-makers-pension-trust-fund-v-badger-pattern-works-inc-ilnd-1985.