Piggly Wiggly Operators' Warehouse, Inc. v. Piggly Wiggly Operators' Warehouse Independent Truck Drivers Union, Local No. 1

611 F.2d 580, 103 L.R.R.M. (BNA) 2646, 1980 U.S. App. LEXIS 20674
CourtCourt of Appeals for the Fifth Circuit
DecidedFebruary 8, 1980
Docket77-3306
StatusPublished
Cited by161 cases

This text of 611 F.2d 580 (Piggly Wiggly Operators' Warehouse, Inc. v. Piggly Wiggly Operators' Warehouse Independent Truck Drivers Union, Local No. 1) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Piggly Wiggly Operators' Warehouse, Inc. v. Piggly Wiggly Operators' Warehouse Independent Truck Drivers Union, Local No. 1, 611 F.2d 580, 103 L.R.R.M. (BNA) 2646, 1980 U.S. App. LEXIS 20674 (5th Cir. 1980).

Opinions

ALVIN B. RUBIN, Circuit Judge:

The relatively small number of reported cases contesting the countless arbitration proceedings convened to resolve labor-management disputes attests to the parties’ general satisfaction with this method of resolving industrial problems. Here we deal with the exceptional case in which the arbitration proceeding is later contested; the issue is whether the arbitrator exceeded the permissible scope of his authority. Concluding that, under the terms of the grievance submitted for arbitration, the arbiter was fully authorized by both parties to decide the issue between them on the grounds on which he relied, we affirm the district court’s summary judgment in favor of the union.

I.

In 1976, the employer and the union began negotiating a collective bargaining agreement covering the employer’s over-the-road truck drivers. By August the negotiators had agreed on a draft, but the union had not yet approved it. In a meeting with the company’s negotiator arranged at request of the union’s business agent, the business agent said the contract could be ratified if the company would agree to several changes in the draft. The company negotiator agreed to make these concessions if the union would agree to insert this clause:

Any driver who becomes uninsurable by any of the Company’s insurance carriers will be subject to immediate discharge.

The business agent concurred, the company typed a revised draft with the quoted sentence inserted as Section z, Article 21, and representatives of both parties later signed it.

Two months later, Mr. Strickland, a driver, was discharged when the employer’s insurance carrier declared him uninsurable. The insurer’s action was based on a comput[582]*582er print-out of Mr. Strickland’s driving record that showed three violations of applicable laws. Neither the insurer nor the employer communicated with Mr. Strickland about his record. Considering him improperly discharged, the union filed a grievance on his behalf asserting:

Purported Section (z) of Article 21 of the contract is not a valid term of the contract. Second, my driving record is a direct and inevitable consequence of company policies and cannot be used to penalize me. Third, any violations prior to the effective date of this contract cannot be used to my disadvantage pursuant to an understanding and agreement between the parties to the contract. Further, I deny that I am uninsurable as alleged in the company’s letter.

As the contract provided, the grievance was presented to Mr. Strickland’s supervisor and then to a joint committee. When these steps failed to resolve the dispute, the union gave notice of its desire to arbitrate. The parties selected an arbitrator from a list of names supplied by the Federal Mediation and Conciliation Service and submitted the grievance to him without entering into a separate submission agreement. At no time did the employer contend that the grievance or any part of it was not a proper subject for arbitration.

The arbitrator held an evidentiary hearing and concluded that the discharge was improper, in part because Mr. Strickland had not been given any prior warning and had not been given a chance to defend himself by showing that there were valid explanations excusing the driving violations. However, the award was based primarily on the determination that Article 21(z) was not a part of the contract because, while the draft of the collective bargaining agreement was approved by the union’s membership, this article had never been submitted to the union and the union had not consented to it.

The arbitration procedure set forth in the contract provides:

The Arbitrator shall have no authority to change, amend, add to, subtract from, modify or amend any of the terms or provisions of this Agreement.

Contending that the contract is clear, the employer asserts that the arbitrator exceeded his authority by modifying or rewriting it and seeks to have the award vacated. The essence of the award, the employer therefore contends, was not drawn from the collective bargaining agreement. Neither party contends that the collective bargaining agreement is invalid; the company’s position is that all of it is binding, the union’s is that the arbiter had authority to decide that Article 21(z) is simply not a part of the contract.

II.

National policy, embodied in the National Labor Relations Act, as amended June 23, 1947, 29 U.S.C. § 173(d)1, favors the orderly resolution of labor-management grievances through arbitration. United Steelworkers v. American Manufacturing Co., 1960, 363 U.S. 564, 80 S.Ct. 1343, 4 L.Ed.2d 1403; United Steelworkers v. Warrior & Gulf Nav. Co., 1960, 363 U.S. 574, 80 S.Ct. 1347, 4 L.Ed.2d 1409; United Steelworkers v. Enterprise Wheel and Car Corp., 1960, 363 U.S. 593, 80 S.Ct. 1358, 4 L.Ed.2d 1424. An agreement between an employer and a union to arbitrate disputes that may arise between them in the future is valid and enforceable. Textile Workers Union v. Lincoln Mills, 1957, 353 U.S. 448, 77 S.Ct. 912, 1 L.Ed.2d 972.

Such an agreement is not self-executing. It is usually supplemented by provisions in the collective bargaining agreement specifying the preliminary action to be taken in an effort amicably to resolve the dispute and the method of invoking arbitration should conciliation fail. The procedure is usually set forth in a portion of the agree[583]*583ment referred to as the grievance procedure. The contract between these parties embodied such a procedure.

The contract also provided, as such agreements typically do, that, if a grievance is not settled during the preliminary stages and arbitration is demanded, the union and the company will attempt to select an arbitrator “to hear the grievance.” If they are unable to agree, either party may request the Federal Mediation and Conciliation Service to submit a list of five impartial arbitrators from which they will select one.

Customarily, an arbitration hearing is informal; either or both parties may not be represented by counsel, evidence is admitted without regard to the strictures of judicial rules and no transcript of the testimony is made. The agreement generally provides, as it did here, that the arbitrator’s decision is final and binding.

Arbitration thus conducted is “part and parcel of the collective bargaining agreement itself.” United Steelworkers v. Warrior & Gulf Navigation Co., supra, 363 U.S. at 578, 80 S.Ct. at 1351, 4 L.Ed.2d at 1415. Accordingly, the arbitrator’s award is not subject to judicial review on the merits, for “[t]he federal policy of settling labor disputes by arbitration would be undermined if courts had the final say on the merits of the awards.” United Steelworkers v. Enterprise Wheel & Car Corp., supra, 363 U.S. at 596, 80 S.Ct. at 1360, 4 L.Ed.2d at 1427.

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611 F.2d 580, 103 L.R.R.M. (BNA) 2646, 1980 U.S. App. LEXIS 20674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/piggly-wiggly-operators-warehouse-inc-v-piggly-wiggly-operators-ca5-1980.