Retail Store Employees Union v. Montgomery Ward & Co.

540 F. Supp. 301, 1982 U.S. Dist. LEXIS 12482, 29 Fair Empl. Prac. Cas. (BNA) 1442
CourtDistrict Court, E.D. Michigan
DecidedApril 30, 1982
DocketCiv. A. No. 80-71207
StatusPublished
Cited by1 cases

This text of 540 F. Supp. 301 (Retail Store Employees Union v. Montgomery Ward & Co.) 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
Retail Store Employees Union v. Montgomery Ward & Co., 540 F. Supp. 301, 1982 U.S. Dist. LEXIS 12482, 29 Fair Empl. Prac. Cas. (BNA) 1442 (E.D. Mich. 1982).

Opinion

MEMORANDUM OPINION

JULIAN ABELE COOK, Jr., District Judge.

Plaintiff, Gladys E. Coleman [Coleman], on behalf of herself and others similarly situated, and Plaintiff, Retail Store Employees Union Local 876, UFCW, AFL-CIO [Union], seek a summary judgment, pursuant to Fed.R.Civ.P. 56.1 Defendant, Montgomery Ward & Company, Inc. [Montgomery Ward], has filed a Cross Motion for Summary Judgment.

Coleman was continuously employed by Montgomery Ward as a salesperson at its Southgate, Michigan store from August of 1960 to May of 1979. In 1979, she was involuntarily retired by Montgomery Ward because of her age (to wit, sixty-five years of age). Union has been the collective bargaining representative of a small group of Montgomery Ward employees within the Detroit, Michigan area since 1958. The retirement program, under which Coleman was retired, was originally effective January of 1977. It is a voluntary plan which was ratified on behalf of its union members, including Coleman, in October of 1974. Since the Plan’s inception, there have been a number of amendments to the voluntary program; however, none of these amendments relate to the normal retirement date.

In a letter, dated April 18, 1979, Coleman and the Union filed a charge with the United States Department of Labor, pursuant to Section 7(d)(1) of the Age Discrimination in Employment Act [ADEA] of 1967, as amended, 29 U.S.C. § 626(d)(1), alleging that Montgomery Ward had discriminated against Coleman because of her age. On or about July 10, 1979, Coleman filed a Complaint with the Michigan Department of Civil Rights, as required by Section 14(b) of the ADEA, as amended, 29 U.S.C. § 633(b), alleging age discrimination. In addition, Coleman filed a charge of discrimination with the United States Equal Employment Opportunity Commission [EEOC] on January 30, 1980. Coleman’s claim of discrimination was rejected in each case. On March 24, 1980, a Complaint was filed with this Court, pursuant to Section 16 of the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. § 216(b). On May 29, 1981, a hearing was held under advisement, pending EEOC’s final interpretation of the ADEA.

Plaintiff claims that she should have been afforded protection of the ADF.As proscription against involuntary retirement. The Act prohibits an employer from discharging any individual because of age.2 As original[303]*303ly passed by the Congress in 1967, the mandatory retirement provision included workers only up to the age of sixty-five. A 1978 amendment extended the protection from involuntary retirement to the age of seventy. See Age Discrimination in Employment Act Amendments of 1978, Pub.L.No.95-256, § 3(a), 92 Stat. 189 (1978). At the time of the 1978 amendment, she was sixty-four years of age. Thus, it is Coleman’s position that the 1978 amendment prohibits mandatory retirement before the age of seventy.

Defendant, Montgomery Ward, contends that this Plan and similar involuntary retirements of union workers prior to January 1, 1980 did not violate the ADEA. According to Defendant, 29 U.S.C. § 631 (1980) specifically exempted workers over sixty-five years of age from the protection afforded by the Act. Defendant admits that the 1978 amendment, if applied today, would prohibit an involuntary retirement of an employee, such as Coleman’s. However, Montgomery Ward asserts that the added provision which extends the retirement age from sixty-five to seventy years of age does not apply to Coleman or other Montgomery Ward employees because of the delayed effective date in the provision.

In pertinent part, the 1978 amendment provides:

The amendment made by subsection (a) of this section .. . shall take effect on the date of enactment of this Act (April 6, 1978), except that, in the case of employees covered by a collective bargaining agreement which is in effect on September 1, 1977, which was entered into by a labor organization ... and which would otherwise be prohibited by section 3(a) of this Act ... the amendment made by subsection (a) of this section (amending subsection (f)(2) of this section) shall take effect upon the termination of such agreement or on January 1, 1980, whichever occurs first, (emphasis added)

S.Rep.No.493, 95th Cong., 2d Sess. 3, reprinted in 1978 U.S.Code Cong. & Ad.News 504, 514.

Montgomery Ward argues that, on the basis of the facts in this ease, the 1978 amendment does not protect its employees from involuntary retirement at age sixty-five until after the delayed effective date of January 1, 1980.

The threshold question to be resolved is whether this Court should look behind Montgomery Ward’s Retirement Security Plan to determine if its mandatory retirement provision was the subject of a negotiated reciprocal agreement or concession.

Section 4(a)(1) of the ADEA, 81 Stat. 603, makes it unlawful for an employer “to discharge any individual or otherwise discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment because of such individual’s age.... ” 29 U.S.C. § 623(a)(1). Until April 6, 1978, the ADEA permitted mandatory retirement, pursuant to a bona fide seniority system or employee benefit so long as the Plan was not a subterfuge to evade the purposes of the Act. The Third and Fifth Circuits have ruled that a pension plan which requires mandatory retirement prior to the age of sixty-five, does not violate the ADEA. Zinger v. Blanchette, 549 F.2d 901 (3d Cir. 1977); Brennan v. Taft Broadcasting, 500 F.2d 212 (5th Cir. 1974).

Raising the ADEA’s mandatory retirement age from sixty-five to seventy would be a meaningless act if employees were subjected to mandatory retirement because of provisions that are, or were, contained in collective bargaining agreements or employee benefit plans. Therefore, in 1978, Congress amended 29 U.S.C. § 623(f)(2) to provide that “... no such seniority system or employee benefit plan shall require or permit the involuntary retirement of any individual (between the ages of 40 and 70) . .. because of the age of such individual.” See Age Discrimination in Employment Act Amendment of 1978, Pub.L.No.95-256, § 2(a), 92 Stat. 189. The effective date of the amendment was April 6, 1978. The amendment further provided that in the case of employees who were covered by collective bargaining agreements, the effec[304]*304tive date for prohibiting their involuntary retirement prior to the age of seventy would be January 1,1980 or upon the termination of the agreement, whichever occurs first. The reason for the delay in the effective date of this provision is to provide employers with a sufficient opportunity to adjust personnel policies which would reflect the changes in existing law that had been made by these amendments. S.Rep.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
540 F. Supp. 301, 1982 U.S. Dist. LEXIS 12482, 29 Fair Empl. Prac. Cas. (BNA) 1442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/retail-store-employees-union-v-montgomery-ward-co-mied-1982.