Roberta E. Anderson, Communications Workers of America v. At&t Corporation

147 F.3d 467
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 10, 1998
Docket96-4397
StatusPublished
Cited by27 cases

This text of 147 F.3d 467 (Roberta E. Anderson, Communications Workers of America v. At&t Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roberta E. Anderson, Communications Workers of America v. At&t Corporation, 147 F.3d 467 (6th Cir. 1998).

Opinion

OPINION

BOGGS, Circuit Judge.

In this case, 58 employees of defendant AT&T Corporation (“AT&T”), each of whom works at an AT&T manufacturing plant in Columbus, Ohio, and is represented for collective-bargaining purposes by the International Brotherhood of Electrical Workers Local 2020 (“IBEW”), sued AT&T to recover benefits they allege were conferred on them by a collective-bargaining agreement negoti *469 ated while they worked at various other AT&T facilities and were represented by a different union, the Communications Workers of America (“CWA”). The district court dismissed the case on AT&T’s summary-judgment motion, holding as a matter of federal labor law that benefits conferred upon workers when they are part of a collective-bargaining unit represented by one union cannot follow those workers when they transfer within the same company to a new collective-bargaining unit represented by a different union. Because we find no basis in federal labor law for treating such workers differently from retirees or other workers who have left the original bargaining unit, but who clearly are entitled to continued receipt of previously vested benefits, we now reverse.

I

The plaintiffs in this ease contend that they are entitled to certain supplemental wage and pension payments under a collective bargaining agreement negotiated by CWA, their former collective-bargaining representative, while they were employed at AT&T plants in Arizona, North Carolina, and Missouri. 1 As with any contract dispute, the central question presented is the intent of the contracting parties: here, whether the parties intended these wage and pension supplements to be “portable.” We therefore begin by examining the background of the agreement under which the disputed wage and pension supplements were to be paid.

Beginning in the 1940s, certain hourly production workers at AT&T’s manufacturing facilities received “special supplementary wage treatments” (“SSWTs”). SSWTs were designed to compensate workers based on performance, as measured by quantities of finished product produced by a defined group of employees. In 1986, these SSWTs were replaced by a new system of incentives called special hourly payments (“SHPs”), which were calculated based on seniority rather than on productivity. In the AT&T vernacular, both SSWTs and SHPs are referred to as “plugs” or “wage supplements.”

In 1986, when all the plaintiffs in this case were represented by the CWA, AT&T conducted collective-bargaining negotiations with the national organizations of both the CWA and the IBEW. AT&T proposed two major changes to the then-existing collective bargaining agreements: first, AT&T proposed to consolidate multiple pay-grade levels into only two or three such levels; and second, AT&T proposed to eliminate wage incentives, including SSWTs. The CWA initially resisted the proposal to eliminate wage incentives. Later, the CWA agreed in principle to a system under which production workers who had been receiving wage incentives would receive a substitute consisting of an additional payment added to the negotiated base wage, an additional increase in the base wage itself, and an adjustment to the pension system. Because the parties were unable to agree on whether this new payment structure would apply to workers who were not already receiving the existing wage incentives, however, the CWA went on a 29-day strike.

During the strike, Robert E. Allen, AT&T’s newly elected president, sent a letter to all AT&T production employees represented by the CWA (including the plaintiffs), copies of which were reproduced in newspaper advertisements in areas where AT&T plants were located. Allen’s letter purported to describe the substantive provisions of AT&T’s offer to the CWA. In his letter, Allen stated:

We also plan to replace wage incentives in all of our factories. The incentive payments will be replaced with additional increases of 2% or 3% in the base wage, depending on location. That increase is in addition to the 8% increase called for in our offer. In addition, wage-incentive employees will receive special monthly payments based on their wage incentive earning history. These payments ivill be made to employees for as long as they are employed by the company. Special pension *470 adders ranging from 16% to 24% of current pension band values depending on locations, will be applicable to all wage-incentive employees.

(Emphasis added). In an apparent reference to “pension adders,” Allen further stated that “nearly half of all production workers will earn pension increases ranging from 3.3 percent to 12.7 percent as a result of this grade-level consolidation.”

Shortly after the CWA membership received Allen’s letter, the CWA members voted to end the strike, based in part on the recommendation of the national CWA leadership. A key reason for the CWA’s recommendation was AT&T’s promise that current employees would be protected against income erosion caused by AT&T’s wage-level consolidation and elimination of plugs and pension adders. In its final bargaining report to the membership, the CWA stated:

In recognition of the changing structure in the manufacturing environment, CWA and AT&T have agreed to eliminate the Wage Incentive Plans. Workers will be compensated for this change through a restructuring of hourly pay through the Manufacturing Grade Level Consolidation Plan combined with a special hourly payment supplement. Wage Incentive workers and any day workers on the payroll as of June 1, 1988 who performed wage incentive work at any time over the past three years will be eligible for the special hourly payments. These payments will continue as long as the worker remains in a production occupation level (or tester occupation level in Merrimack Valley and the North Carolina Works).

(Emphasis added). The final approved draft of the agreement, known as the “MFG-3” agreement, also reflected the understanding that current employees would receive plugs for the duration of their employment with AT&T: ,

Payment of this [supplementary wage] allowance shall begin as of the effective date of such reclassification and will continue as long as the employee remains in a PRODUCTION OCCUPATION LEVEL.

See Joint Appendix (“J.A.”) at 54 (provision applicable to Kansas City employees), 56 (provision applicable to North Carolina employees), 60 (provision applicable to Phoenix employees).

The MFG-3 agreement, of which the wage-supplement provisions were a part, took effect on June 29,■ 1986. The agreement was to be in effect for three years, through June 1989. Beginning in January 1988, AT&T announced that it was going to close or downsize various manufacturing plants around the country. On January 20, 1988, for example, AT&T announced the closing of the North Carolina Works. Almost immediately, local CWA officials met with national CWA officials and AT&T labor relations representatives to ascertain whether displaced North Carolina employees who .transferred to other plants would continue to receive their wage supplements.

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Bluebook (online)
147 F.3d 467, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roberta-e-anderson-communications-workers-of-america-v-att-corporation-ca6-1998.