Pinnacle Foods Group, LLC v. United Dairy & Bakery Workers Local 87

186 F. Supp. 3d 722, 2016 U.S. Dist. LEXIS 62623, 2016 WL 2756527
CourtDistrict Court, E.D. Michigan
DecidedMay 12, 2016
DocketCase No. 15-cv-12413
StatusPublished

This text of 186 F. Supp. 3d 722 (Pinnacle Foods Group, LLC v. United Dairy & Bakery Workers Local 87) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pinnacle Foods Group, LLC v. United Dairy & Bakery Workers Local 87, 186 F. Supp. 3d 722, 2016 U.S. Dist. LEXIS 62623, 2016 WL 2756527 (E.D. Mich. 2016).

Opinion

[724]*724OPINION & ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT (Dkt. 14) AND DENYING PLAINTIFF’S MOTION TO VACATE ARBITRATION AWARD (Dkt. 13)

MARK A. GOLDSMITH, United States District Judge

This is an arbitration award review case, involving the rate at which certain vacation and holiday hours should be paid pursuant to the parties’ collective bargaining agreement. In light of the highly deferential standard of review that a district court must apply to a labor arbitrator’s award, Plaintiffs motion to vacate the arbitrator’s award is denied, and Defendant’s motion for summary judgment seeking enforcement of the award is granted.

I. BACKGROUND

Plaintiff is an employer in Imlay City, Michigan, and Defendant is a labor union that represents some of Plaintiffs employees. At all relevant times, the parties were bound by their Collective Bargaining Agreement (“CBA”) (Dkt. 1-2). The current dispute involves three grievances brought under the arbitration clause of the CBA, each alleging that vacation days and/or “unworked” holidays that were taken after 40 hours were actually worked in a workweek, should, under the CBA, be paid at an overtime rate. The specific grievances themselves illustrate the contours of the issue.

The first grievance (“Grievance 456”) came from an employee who had worked 40 hours between Monday through Friday during the week of October 29, 2012. The employee was also scheduled to work Sunday, November 4, 2012, which fell within the same pay period. On that day, the employee did not work, but instead took an “emergency vacation day.” Plaintiff paid that employee at straight time for the vacation day, while Defendant contends that he should have received overtime for the vacation day. Compl. ¶ 9 (Dkt. 1).

The second grievance (“Grievance 460”) came from an employee who worked 10 hours on Monday, February 4, 2013, and on Tuesday, February 5, 2013. He thereafter took three 8-hour vacation days on Wednesday, February 6; Thursday, February 7; and Friday, February 8. This adds up to 44 hours. Plaintiff paid this employee at straight time for all 44 hours, but Defendant contends that he should have received overtime pay for the last 4 hours of his Friday, February 8 vacation day. Id, ¶10.

The third grievance (“Grievance 555”) is a group grievance. It asserts that, on Good Friday, March 29, 2013, “all employees should have been paid at the premium rates where applicable.” Defendant asserts that if an employee’s combined working time Monday through Thursday, together with the unworked holiday hours on Friday, exceeds 40 hours, the employee is entitled to overtime for the holiday hours in excess of 40. Id. ¶ 11.

Plaintiff, on the other hand, believes that the CBA requires an employee to be physically present at the workplace for “hours worked” in excess of 40 in order to receive overtime pay for those hours.

Pursuant to Article 6 of the CBA, unresolved grievances culminate in binding arbitration. Id. ¶ 7. After Plaintiff rejected the above-described grievances, id. ¶ 8, the issues proceeded to arbitration in accordance with that provision, see id. ¶ 14. The relevant provisions of the CBA are as follows (all emphases added):

• The arbitrator “shall have no power to add on, subtract from, disregard, alter, or modify any of the terms of the Agreement.” Art. 6, § 1(2).

• “Vacation pay shall be computed on the basis of the employee’s regular [725]*725bid job straight time hourly rate multiplied by the number of hours the employee is entitled to.”-Art. 9, § 2(c).

• “Regular full time employees shall receive eight (8) hours holiday pay (at straight time) and regular full-time employees shall receive eight (8) hours holiday pay (at straight time) for each of the following holidays. (Regular full-time employees assigned to a four (4) day, ten (10) hour shift schedule will receive ten (10) hours holiday pay at straight time for holidays which fall within their regular work week of Monday through Thursday).” [Listing 11 holidays.] Art. 10, § 1.

• “Holidays not worked shall be considered as hours worked in computation of overtime and any other contractual benefits.” Art. 10, § 2(d).

• “It is agreed that forty (40) hours shall constitute a work week and that all hours worked in excess of forty (40) hours in any regular work week shall be considered as overtime and employees shall be paid at the rate of time and one-half their regular rate for working such overtime hours.” Art. 11, § 1.

• “Time and one-half an employee’s regular hourly rate shall be paid for all work performed in a “work week” based on the below schedule. Time and one-half shall also be paid for all work performed on holidays.

• 40.00 Hours—Straight Time

• 40.02 Hours—Time and One-Half (.02 = 1 minute)

• 55.02 Hours—Double Time

(a) If an employee is off work any time during their workweek on a contractual leave or benefit, such time will be counted as hours worked in computation of overtime, (i.e, Jury Duty, Bereavement, Negotiations, Union Business, Vacation, Military Leave, FMLA, or Workers’ Compensation).” Article 11, § 5.

On the merits, the arbitrator held that the employees were entitled to be paid at an overtime rate for the vacation and holiday time at issue. Id. ¶ 16.1 The arbitrator focused on three provisions and, reading them together, held for the Union. Arb. Op. at 15-16 (Dkt. 1-1). Introducing his discussion on the merits, the arbitrator first established the premise that “[everyone agrees unworked holidays and vacation leave days are paid at straight time.” Id. at 15. The arbitrator framed the issue as, “the pay entitlement for the remaining hours in the week,” id., ⅛ those hours payable after an employee had logged 40 hours, either physically at work or as vacation or holiday time. The arbitrator identified an “obvious point of contention” in Article 10, § 2 of the CBA, which provides:

Holidays not worked shall be considered as hours worked in computation of overtime and any other contractual benefits.

(Emphasis added.) The arbitrator also highlighted Article 11, § 5(a), which provides:

If an employee is off work any time during their workweek on a contractual leave or benefit, such time will be counted as hours worked in computation of overtime.

(Emphasis added.)

Before the arbitrator, Plaintiff argued that the phrase “computation of overtime” pertains to “computing whether the 40 [726]*726hour threshold for overtime has been met,” See Arb. Op. at 16 (quoting Plaintiffs argument (emphasis in original)). Rejecting this, the arbitrator stated that “the CBA does not restrict the extent which the referenced time will be counted as hours worked. The provision [Article 11, § 5(a) ] states ‘any time during their workweek. . .will be counted as hours worked.’” Id. For support, the arbitrator quoted Article Í1, § 1 of the CBA, which states that “all hours worked in excess of forty (40) hours in any regular work week shall be considered as overtime.... ” (Emphasis added.) These three provisions, read in tandem, were interpreted by the arbitrator to require payment of overtime for all hours in excess of 40 in a given week, regardless of whether any of the overtime hours were vacation or holiday time.

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Cite This Page — Counsel Stack

Bluebook (online)
186 F. Supp. 3d 722, 2016 U.S. Dist. LEXIS 62623, 2016 WL 2756527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pinnacle-foods-group-llc-v-united-dairy-bakery-workers-local-87-mied-2016.