Purex Corp. v. Automotive, Petroleum & Allied Industries Employees Union, Local 618

705 F.2d 274, 112 L.R.R.M. (BNA) 3433, 1983 U.S. App. LEXIS 29051
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 6, 1983
DocketNo. 82-1892
StatusPublished
Cited by1 cases

This text of 705 F.2d 274 (Purex Corp. v. Automotive, Petroleum & Allied Industries Employees Union, Local 618) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Purex Corp. v. Automotive, Petroleum & Allied Industries Employees Union, Local 618, 705 F.2d 274, 112 L.R.R.M. (BNA) 3433, 1983 U.S. App. LEXIS 29051 (8th Cir. 1983).

Opinions

ARNOLD, Circuit Judge.

Purex Corporation appeals from the District Court’s1 denial of its motion for an injunction against a strike at its St. Louis plant. According to Purex, the strike violated the no-strike clause in the parties’ collective-bargaining agreement. We conclude that the District Court, 543 F.Supp. 1011, correctly determined that the collective-bargaining agreement had expired and therefore we affirm.

I.

Purex and the Automotive, Petroleum and Allied Industrial Employees Union, Local 618 have been parties to a series of collective-bargaining agreements over a number of years. In 1979, the parties entered into a collective-bargaining agreement containing the following duration provisions:

Article 2.
Section 1.
The term of this agreement shall commence on the first day of July, 1979 and shall continue until the 30th day of June, 1982, and for additional periods of one (1) year thereafter, with the provision that should either party desire to modify or amend any portion or any of the terms hereof, it shall notify the other party in writing not less than sixty (60) days prior to the 30th day of June, 1982, or at the end of any subsequent yearly period.
Section 3.
If the terms for an amended Agreement have not been agreed to by the anniversary date of this Agreement then this Agreement shall govern until one of the parties has given the other five (5) days’ written notice of termination of this Agreement.

The agreement also contained a mandatory arbitration clause and a corresponding no-strike clause.

On April 17,1982,2 well in advance of the required 60 days prior to the contract’s termination date, the Union gave Purex notice that it desired to renegotiate the contract. The parties negotiated without success, and on June 24 the Union delivered a letter to Purex which purported to be the five days’ notice of termination required by Article 2, Section 3 of the contract. On July 6, the Union sent a letter to Purex rejecting Purex’s final contract proposal. The letter went on to say “I [a Union official] must assume you [Purex] are not willing to negotiate and Local 618 will act accordingly.” Thereafter, the Union commenced strike activities on July 14.

Purex immediately sought a temporary restraining order and a preliminary injunction against the strike from the District Court. Purex argued that the Union’s notice of contract termination was defective, and therefore the contract, including the no-strike clause, remained in effect when the strike began. Under Purex’s interpretation of the duration clause, the five-day notice may not be given until after the contract’s termination date, and accordingly the Union’s June 24th letter was premature. The District Court denied the temporary [276]*276restraining order on July 15, and, following a hearing on July 16, denied injunctive relief as well. This appeal followed.3

II.

Purex contends that the question of the validity of the Union’s five-day termination notice should have been submitted to arbitration. Because of the alleged arbitrability of the issue, Purex claims that the District Court erred in refusing to enjoin the strike and in holding that the collective-bargaining agreement had terminated before the strike began. Purex concludes that the latter decision both invaded the province of the arbitrator and was incorrect on its merits.

Appropriateness of Injunction

In considering whether the Union’s strike was subject to injunction, we begin with Section 4 of the Norris-LaGuardia Act, 29 U.S.C. § 104, which generally prohibits federal courts from enjoining strike activities. The Supreme Court established a narrow exception to the anti-injunction rule in Boys Markets v. Retail Clerks Union, 398 U.S. 235, 90 S.Ct. 1583, 26 L.Ed.2d 199 (1970), which holds that a strike may be enjoined if it is over a dispute which both parties have agreed to submit to arbitration. The narrowness of the Boys Markets exception was emphasized in Jacksonville Bulk Terminals, Inc. v. International Longshoremen’s Association, - U.S. -, 102 S.Ct. 2673, 73 L.Ed.2d 327 (1982), and Buffalo Forge Co. v. United Steelworkers, 428 U.S. 397, 96 S.Ct. 3141, 49 L.Ed.2d 1022 (1976). The latter cases hold that a Boys Markets injunction may not issue unless the strike has been triggered by an arbitrable dispute.

The Supreme Court’s opinions in Buffalo Forge and Jacksonville Bulk Terminals analyze the Boys Markets exception as a means for effectuating the national policy favoring agreements to arbitrate, and not as an enforcement mechanism for no-strike clauses. Both Buffalo Forge and Jacksonville Bulk Terminals distinguish between strikes where the underlying dispute is arbitrable and those where the legality of the strike itself is arbitrable. Only in the former category are strikes subject to injunction, because only there does the strike represent a breach of the Union’s agreement to arbitrate. As the Supreme Court observed in Jacksonville Bulk Terminals:

in agreeing to broad arbitration and no-strike clauses, the parties do not bargain for injunctive relief to restore the status quo pending the arbitrator’s decision on the legality of the strike under the collective-bargaining agreement, without regard to what triggered the strike. Instead, they bargain only for specific enforcement of the Union’s promise to arbitrate the underlying grievance before resorting to a strike.

- U.S. at -, 102 S.Ct. at 2686, 73 L.Ed.2d at 343.4

In deciding whether an injunction was appropriate in the instant case, the District Court necessarily had to decide whether the underlying dispute was arbitrable. The District Court found that the dispute between the Union and Purex concerned the issue of pay and fringe benefits. Thus the event which triggered the Union’s strike was the breakdown in negotiations for a new collective-bargaining agreement with Purex. The terms of a future collective-bargaining agreement are not subject to arbitration under the previous collective-bargaining agreement. Moreover, Purex has specifically declared its unwillingness to arbitrate the question of wages and benefits, even if such a question were arbitrable. [277]*277The question which Purex desires to arbitrate — the construction of the contract’s duration clause — will not resolve the underlying labor dispute, but instead will determine the legality of the strike. Because the underlying dispute is not arbitrable, the District Court correctly refused to issue a Boys Markets injunction.

Arbitrability of Termination Clause

Although the District Court could have rested its denial of injunctive relief solely on the finding that the dispute underlying the strike was not arbitrable, the Court also found that Purex failed to satisfy the general criteria necessary for issuance of a preliminary injunction. See Dataphase Systems, Inc. v.

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Bluebook (online)
705 F.2d 274, 112 L.R.R.M. (BNA) 3433, 1983 U.S. App. LEXIS 29051, Counsel Stack Legal Research, https://law.counselstack.com/opinion/purex-corp-v-automotive-petroleum-allied-industries-employees-union-ca8-1983.