Pilot Freight Carriers, Inc. v. International Brotherhood of Teamsters

495 F. Supp. 619, 105 L.R.R.M. (BNA) 2372, 1980 U.S. Dist. LEXIS 12498
CourtDistrict Court, M.D. North Carolina
DecidedJuly 23, 1980
Docket1:19-cr-00072
StatusPublished
Cited by4 cases

This text of 495 F. Supp. 619 (Pilot Freight Carriers, Inc. v. International Brotherhood of Teamsters) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pilot Freight Carriers, Inc. v. International Brotherhood of Teamsters, 495 F. Supp. 619, 105 L.R.R.M. (BNA) 2372, 1980 U.S. Dist. LEXIS 12498 (M.D.N.C. 1980).

Opinion

MEMORANDUM OPINION

HIRAM H. WARD, District Judge.

This case was tried to a jury between May 5 and May 13, 1980. The plaintiff Pilot Freight Carriers, Inc. (Pilot), suing under 29 U.S.C. § 185, alleged that the defendant International Brotherhood of Teamsters (IBT or Teamsters) had breached the parties’ collective bargaining agreement 1 by authorizing and supporting a strike against Pilot in July 1972. The strike had been called when Pilot refused to comply with a grievance committee’s decision that the parties’ collective bargaining agreement applied, by virtue of accretion, to Pilot employees working at newly opened terminals in Florida. 2 At the close of all *621 the evidence, this Court directed a verdict for Pilot on the issue of liability. Rule 50, Fed.R.Civ.P. The Court now enters this Memorandum Opinion to detail the reasons for the directed verdict. 3

The Collective Bargaining Agreement

The collective bargaining agreement relevant to this action was entitled the National Master Freight Agreement (NMFA) and Southern Conference Supplement (Southern Supplement) and was effective from April 1, 1970 to June 30,1973. 4 Plaintiff’s Exhibit 5. The NMFA was a national agreement applicable to all covered employers and Teamster locals; the Southern Supplement was a regional agreement which dealt primarily with local concerns.

As a part of its directed verdict, this Court held that IBT was a party to and obligated to abide by the provisions of the NMFA and the Southern Supplement. IBT argues that the agreement named as union parties only the Teamster locals and their national negotiating committee, the National Union Committee, and that IBT’s only specific contractual obligation was to discourage wildcat strikes (Art. 8(a)(3)(a), NMFA) — an obligation irrelevant to Pilot’s claim. IBT asserts its liability “could only be established by first identifying a contractual promise by it to take responsibility for the actions of [the locals which struck Pilot] or for its locals generally.” Trial Brief of Defendant, p. 16 (February 19, 1980).

Although IBT carefully excluded reference to itself in the NMFA and the Southern Supplement, contractual draftsmanship does not control the issue. The Teamster locals did not exist independently of the international. A detailed review of the IBT constitution (Plaintiff’s Exhibit 20) reveals, in the words of the Fourth Circuit, “such far-reaching control of local unions that the locals, in essence, [were] not autonomous but [were] subdivisions of IBT.” Great Coastal Express, Inc. v. IBT, 511 F.2d 839, 844 (4th Cir. 1975). The Court need not detail the various provisions of the IBT constitution which prove the point. The Fourth Circuit, in IBT v. United States, 275 F.2d 610 (4th Cir.), cert. denied, 362 U.S. 975, 80 S.Ct. 1060, 4 L.Ed.2d 1011 (1960), a criminal case requiring a more stringent standard of proof, examined a precedent IBT constitution and found that it allowed the international to control the most fundamental of local union affairs. This Court has discovered no significant changes in the IBT constitution relevant to Pilot’s suit. The Court therefore believes that, as a matter of law, the Teamster locals, as parties to the NMFA and the Southern Supplement, acted as the acknowledged agents of IBT and thereby obligated IBT to abide by the requirements of the collective bargaining agreement.

Moreover, IBT became a party to the agreement by virtue of the National Union Committee’s participating in the bargaining process and signing the final agreement. The Third Circuit reached the same conclusion in Eazor Express, Inc. v. IBT, 520 F.2d 951, 958-59 (3d Cir. 1975), cert. denied, 424 U.S. 935, 96 S.Ct. 1149, 47 L.Ed.2d 342 (1976), overruled on other grounds, Carbon Fuel Co. v. UMW, 444 U.S. 212, 100 S.Ct. 410, 62 L.Ed.2d 394 (1979). There, the court found that the National Union Committee was “organizationally and functionally an administrative arm of the International." 520 F.2d at 958 (quoting the district court). The court further found that IBT was fully obligated to abide by the agreement’s no-strike pledge. 520 F.2d at 959. 5

*622 Article 8 of the NMFA and Article 45 of the Southern Supplement detailed the parties’ grievance procedure. The procedure applied to “[a]ll grievances or questions of interpretations arising under [the] Master Agreement or Supplemental Agreements,” Art. 8(a), NMFA, or “any controversy which might arise,” Art. 45 § 1, Southern Supp. There were two types of disputes: (1) “factual grievances or questions of interpretation arising under the grievance provision of the Supplemental Agreement, (or factual grievances arising under the National Master Agreement) . . . and (2) “requests] for interpretation of the National Master Agreement . . . Art. 8(a)(1), NMFA. Disputes of the first type proceeded initially to a State or Multi-State Committee comprised, like all other grievance committees established by the contract, of an equal number of employer and union representatives. When that Committee decided a dispute by majority vote, the decision was said to be “final and binding on both parties.” Art. 45 § 1(a), Southern Supp. If the Committee deadlocked, the case was referred to the Southern Conference Area Grievance Committee. Again, a majority vote by that Committee was “final and binding on both parties.” Art. 45 § 1(b), Southern Supp. If the Conference Committee deadlocked, the case was referred to the highest employer-union grievance body, the National Grievance Committee (NGC), whose majority decision was “final and binding upon all parties.” Art. 8(a)(2), NMFA.

Disputes involving interpretations of the NMFA were referred directly to the Southern Conference Committee, for the making of a record, and then to the NGC for decision. The NGC’s interpretation of the NMFA was “final and binding upon all parties.” Art. 8(a)(2), NMFA; see Art. 45 § 5, Southern Supp.

In situations where the NGC deadlocked “then either party [would] be entitled to all lawful economic recourse to support its position in the matter.” Art. 8(a)(2), NMFA. Also, a party’s “failure to comply with any Committee decision” withdrew that party’s rights under the grievance procedure. Art. 45 § 1(d), Southern Supp.; see Art. 8(d), NMFA. Thus, although the parties agreed there would be “no strikes . . . without first using all possible means of settlement as provided for in this Agreement of any controversy which might arise,” Art. 45 § 1, Southern Supp., they recognized that the union had retained the right to strike in the appropriate circumstances.

The Pilot — IBT Dispute

In 1970, Pilot extended its eastern seaboard routes into Florida and opened terminals in four Florida cities.

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495 F. Supp. 619, 105 L.R.R.M. (BNA) 2372, 1980 U.S. Dist. LEXIS 12498, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pilot-freight-carriers-inc-v-international-brotherhood-of-teamsters-ncmd-1980.