Sheet Metal Workers' International Ass'n v. Carrier Vibrating Equipment, Inc.

644 F. Supp. 488, 123 L.R.R.M. (BNA) 2231, 1986 U.S. Dist. LEXIS 29005
CourtDistrict Court, W.D. Kentucky
DecidedFebruary 22, 1986
DocketCiv. A. No. 85-0777-L(J)
StatusPublished

This text of 644 F. Supp. 488 (Sheet Metal Workers' International Ass'n v. Carrier Vibrating Equipment, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sheet Metal Workers' International Ass'n v. Carrier Vibrating Equipment, Inc., 644 F. Supp. 488, 123 L.R.R.M. (BNA) 2231, 1986 U.S. Dist. LEXIS 29005 (W.D. Ky. 1986).

Opinion

MEMORANDUM OPINION

JOHNSTONE, Chief Judge.

This matter is before the court on the defendant’s motion to dismiss pursuant to Rule 12(b)(1) & (6) of the Federal Rules of Civil Procedure. Plaintiff Sheet Metal Workers’ International Association Local #433 (“Union”) brings its claim pursuant to § 301 of the Labor Management Relations Act (“Act”), 29 U.S.C. § 185, and alleges that defendant Carrier Vibrating Equipment, Inc. (“Carrier”), has violated the parties’ collective bargaining agreement by arbitrarily and capriciously terminating a Letter of Understanding. The Letter of Understanding allowed Union Stewards to handle employee grievances on company time with no loss of wages. In addition to declaratory judgment and injunctive relief, remedies that may have been rendered moot by a new collective bargaining agreement, the Union seeks payment of any wages lost by union stewards who engaged in grievance activities. Carrier argues that the court-has no jurisdiction under § 301 of the Act and further argues that the Union has failed to state a claim upon which relief can be granted.

FACTS

The Union and Carrier are parties to a collective bargaining agreement effective January 27, 1983, to January 26, 1986 (“1983 Agreement”). Carrier’s predecessor, Rexnord, Inc. (“Rexnord”), and the Union were parties to an earlier collective bargaining agreement effective January 27, 1980, to January 26, 1983 (“1980 Agreement”). Article VI of the 1980 Agreement established the following policy on compensation of employees involved in grievance activities:

When a Steward is required to leave his work station at the request of the Company, he shall be compensated by the Company for any time lost, at his regular hourly rate of pay.

During negotiations for the 1983 Agreement, the Article VI was amended to end compensation of Stewards for grievance work on company time:

When Union Stewards leave their work areas to handle grievances, or to attend grievance meetings at any Step of the contractual grievance procedure, or otherwise attend to Union business, they shall record, by use of a time clock or in such other way as the Company may designate, the time they leave and the time they return to their work stations, and they will not be compensated for time away from their work areas.

In a Letter of Understanding dated March 31, 1983, two months after the effective date of the 1983 Agreement, Rexnord agreed to suspend the amendment and resume compensation for grievance work on the following condition: .

[I]f at any time during the term of the new contract, the Company finds that grievance activity is excessive, the Company will put into effect the suspended provisions of Article VI. It is further understood and agreed that the Company’s decision in this regard is a matter within its sole discretion, and its decision [490]*490to implement the new provisions of Article VI will not be subject to the grievance and arbitration procedure of the contract.

Upon purchasing Rexnord, Carrier and the Union entered into a Supplemental Agreement, dated August 12, 1983, in which Carrier agreed to assume and be bound by the 1983 Agreement for the remainder of its term (except as to certain provisions of no interest in this litigation).

On May 10, 1985, Carrier elected to put the suspended provisions of Article VI into effect and stopped compensating Union Stewards for grievance activities. The Union filed an unfair labor practice charge with the National Labor Relations Board. When the Board would not issue a complaint, the Union filed the instant action alleging that Carrier had wrongfully terminated the Letter of Understanding.

JURISDICTION

Section 301 of the Act vests the district courts with jurisdiction over “suits for violation of contracts between an employer and a labor organization representing employees.” 29 U.S.C. § 185(a) & (c). The disputed Letter of Understanding, as an amendment to the parties’ 1983 collective bargaining agreement, is part of a contract over which the court has jurisdiction.

Carrier argues that the Court’s role under § 301 is limited to determining whether the 1983 Agreement obligates the parties to arbitrate their dispute. The court agrees that in suits brought to compel arbitration, its role is limited to determining whether the parties’ labor contract requires them to arbitrate. Chambers v. Beaunit Corp., 404 F.2d 128, 131 (6th Cir.1968); see also United Steelworkers of America v. American Mfg. Co., 363 U.S. 564, 80 S.Ct. 1343, 4 L.Ed.2d 1403 (1960). In the instant case, however, the Union has not brought suit to compel arbitration, for it waived arbitration under the terms of the Letter of Understanding. Carrier argues that the Union’s waiver of arbitration constitutes a waiver of judicial review as well. The court disagrees. The Letter of Agreement forecloses arbitration, but does not address judicial review. Section 301 designates the court as the appropriate forum for resolving disputes arising under a collective bargaining agreement. Although the court generally will not accept jurisdiction of a dispute until the parties have exhausted the remedies afforded by their labor contract, see National Treasury Emp. Union v. Kurtz, 636 F.2d 411 (D.C.Cir.1980), the court is not deprived of jurisdiction simply because the parties have no remedies to exhaust. Arbitration is not a condition precedent to the jurisdiction of a federal district court in all cases under § 301. Bath Marine Draftsmen’s Ass’n v. Bath Iron Works Corp., 266 F.Supp. 710, 713-14 (S.D.Me.1967) (citations omitted), modified, 393 F.2d 407 (1st Cir.1968); cf., Schneider Moving & Storage Co. v. Robbins, 466 U.S. 364, 104 S.Ct. 1844, 80 L.Ed.2d 366 (1984) (no provision requiring arbitration; consequently, no bar to judicial enforcement of agreement). Absent clear evidence of the Union’s intent to forego judicial review as well as arbitration, the court will not deny jurisdiction of the Union’s claim.

FAILURE TO STATE A CLAIM

For purposes of Carrier’s motion to dismiss the Union’s complaint for failure to state a claim, the complaint will be construed in the light most favorable to the Union and its allegations will be accepted as true. See Scheuer v. Rhodes, 416 U.S. 232, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974); Westlake v. Lucas, 537 F.2d 857 (6th Cir.1976). The Union alleges that the Letter of Understanding was to be terminated only if grievance activities became excessive.

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644 F. Supp. 488, 123 L.R.R.M. (BNA) 2231, 1986 U.S. Dist. LEXIS 29005, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheet-metal-workers-international-assn-v-carrier-vibrating-equipment-kywd-1986.