School District of Allentown v. Hotel & Restaurant Employees International Union, Local No. 391

654 A.2d 86, 149 L.R.R.M. (BNA) 2760, 1995 Pa. Commw. LEXIS 13
CourtCommonwealth Court of Pennsylvania
DecidedJanuary 6, 1995
StatusPublished
Cited by5 cases

This text of 654 A.2d 86 (School District of Allentown v. Hotel & Restaurant Employees International Union, Local No. 391) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
School District of Allentown v. Hotel & Restaurant Employees International Union, Local No. 391, 654 A.2d 86, 149 L.R.R.M. (BNA) 2760, 1995 Pa. Commw. LEXIS 13 (Pa. Ct. App. 1995).

Opinion

LORD, Senior Judge.

The School District of the City of Allentown (school district) appeals a Lehigh County Court of Common Pleas decision which upheld an arbitrator’s award in favor of certain members of the Hotel and Restaurant International Union Local No. 391, AFL-CIO (union).

The nub of the controversy in this appeal concerns the interpretation of the collective bargaining agreement (cba) between the school district and the union which became effective July 1, 1991 and expired June 30, 1994.

The section of the cba that is in dispute is reproduced here:

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Specifically, it is the last line of this section which is at issue. The school district contends that, because the line where it states “Helper (Hrs. Vary)” has space marks instead of a figure listed in the year column, the school district was not obliged to pay helpers for any specific number of days per year, but was only obliged to pay them for the hours actually worked. The union, on the other hand, contends that helpers had always been paid on a salary basis, which was based on 190 days pay for 186 days worked, and that the omission of a figure in the year column is of no significance.

In order to elucidate the issue, we quote the previous collective bargaining agreement, executed in 1988, which designated the various type of helpers and their respective salaries. The school district does not dispute that the helpers were paid on the basis of 190 days pay for 186 days worked under that agreement, which reads in pertinent part:

[88]*88The arbitrator succinctly but completely set forth the contentions of the parties:

Position of the Union
The Union argues that the District has made an improper unilateral change in the pay of General Kitchen Helpers. It denies that the parties ever negotiated over the change or that the Union, by failing to contest the District’s proposal on the salary schedule, agreed to so dramatic a change in the compensation of these employees. It points to a number of provisions of the collective Agreement which still refer to “salary” or “190 days” and argues that if so drastic a change were intended the parties would have negotiated over its effects. The Union claims that it never understood that the District was proposing anything more than a cleaning up of the language of the salary schedule with no substantive implications. It asks that the affected employees be restored to their former, salaried status and that any monies due them plus interest be paid forthwith.
Position of the District
The District argues that the Union knew from its proposals and opening remarks that it wished to restructure both the hours and the method of compensation of Helpers to eliminate payment for time not actually worked. The District asserts that the Union knew or should have known of the implications of its proposals and having accepted them and incorporated them in the Agreement may not now complain that it does not like the consequences of its acceptance of an unambiguous change in the method of compensation. Admitting that not every ramification of the change was worked out, the District, nonetheless, concludes that the Union is bound by its acceptance of the new pay schedule for Helpers.

(Arbitrator’s decision, May 13, 1992, p. 5).

The arbitrator decided that the union’s position was more plausible and sustained the grievance. The common pleas court applied the “essence test,” see Community College of Beaver County v. Community College of Beaver County, Society of the Faculty (PSEAJNEA), 473 Pa. 576, 375 A.2d 1267 (1977), and upheld the arbitrator’s decision.

In this appeal, the school district contends the cba is unambiguous and therefore the arbitrator’s award did not draw its essence from the cba. The school district asserts that a reversal is required because the arbitrator improperly relied upon the prior, 1988 agreement. See Austin Area Education Association, PSEA/NEA v. Austin Area School District, 159 Pa.Commonwealth Ct. 640, 634 A.2d 276 (1993).

The union, on the other hand, contends that the 1991 cba is ambiguous and, therefore, it was critical to consider evidence on whether the issue of the helpers’ yearly-based salary was negotiated. The arbitrator found the issue was not negotiated and fashioned his award based on prior practice that indicated the parties’ intentions. The union contends that the arbitrator’s award thus met the essence test.

We address the school district’s principal argument that, because the 1991 cba unambiguously states that helpers do not receive a yearly wage, the arbitrator could not reasonably have construed it to support the award. Preliminarily, on this issue, we refer to the following discussion in Community College on ambiguity and its place in the determination of an arbitration award.

On the theory that the collective bargaining agreement involved here is “ambiguous” ... it would be possible, applying the well-settled common law contract classification ... to say that the arbitrator’s award is based on a finding of fact (interpretation of an ambiguous writing) and therefore not to be disturbed on review if supported by language appearing in the contract. To do so, however, would imply that the standard of review of an arbitrator’s interpretation of a collective bargaining agreement turns on the common law question of whether the agreement is “ambiguous” and therefore to be interpreted by the finder-of-fact (jury) or “unambiguous” and to be interpreted by the court. We are satisfied that this is not the correct approach.
[89]*89It has long been accepted in contract law that an ambiguous written instrument presents a question of fact for resolution by the finder-of-fact, whereas the meaning of an unambiguous written instrument presents a “question of law” for resolution by the court. As the authorities in the field of contracts make clear, however, the latter exercise is also in actuality a factual, not a legal decision. For a variety of reasons the common law has long thought it best to leave to the court rather than to the jury the essentially factual question of what the contracting parties intended. This fact-finding function exercised by the court is denominated a “question of law,” therefore, not because analytically it is a question of law but rather to indicate that it is the trial judge, not the jury, to whom the law assigns the responsibility for deciding the matter. All questions of interpretation of written instruments and agreements, in other words, are questions of fact, some in ordinary civil litigation resolved by the jury (ambiguous writings) and others resolved by the trial judge (unambiguous writings)....
In applying the “n.o.v.” standard of review of 5 P.S. § 171(d) (“award is against the law ...”) to arbitration awards, we must therefore analyze the role played by the arbitrator in interpreting collective bargaining agreements. From what we have just said, it is clear that the arbitrator in all cases in which interpretation of the collective bargaining agreement is called for is deciding a factual question: What the parties intended.

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654 A.2d 86, 149 L.R.R.M. (BNA) 2760, 1995 Pa. Commw. LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/school-district-of-allentown-v-hotel-restaurant-employees-international-pacommwct-1995.