Smith v. Chrysler Corp.

938 F. Supp. 1406, 153 L.R.R.M. (BNA) 2189, 1996 U.S. Dist. LEXIS 12508, 1996 WL 490221
CourtDistrict Court, S.D. Indiana
DecidedAugust 26, 1996
DocketIP 93-1455-C M/S
StatusPublished
Cited by4 cases

This text of 938 F. Supp. 1406 (Smith v. Chrysler Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Chrysler Corp., 938 F. Supp. 1406, 153 L.R.R.M. (BNA) 2189, 1996 U.S. Dist. LEXIS 12508, 1996 WL 490221 (S.D. Ind. 1996).

Opinion

ORDER

MeKINNEY, District Judge.

This matter comes before the Court on the motions for summary judgment filed by defendants Chrysler Corporation (“Chrysler”) and UAW Local 685 and UAW International (collectively the “Union”), and on the motion for leave to amend the complaint filed by the plaintiffs (the “Employees”). The Employees have not responded to the pending summary judgment motions, although the time for response expired on May 2, 1996. Instead, on April 29, 1996, they filed a motion for leave to amend along with a proposed amended complaint that omits the Age Discrimination in Employment Act (“ADEA”) claim for which both Chrysler and the Union had sought summary judgment.

The Court has been fully briefed on the motion for leave to amend, and if the Court deems amendment of the complaint proper the summary judgment motions will be rendered moot. Alternatively, if the Court denies the motion for leave to amend, it will be obliged to make a summary ruling on the pending summary judgment motions in the absence of any briefing from the plaintiffs. This matter is now ready for resolution.

I. MOTION FOR LEAVE TO AMEND

A. FACTUAL AND PROCEDURAL BACKGROUND

The facts are largely undisputed, in part because the Employees did not file any materials in- opposition to the defendants’ motions for summary judgment. For purposes of resolving the Employee’s motion for leave to amend, a brief review of the history of this case is in order.

The Union represents Chrysler employees who work in the Kokomo, Indiana transmission plant (“Kokomo Plant”). The Union and Chrysler have been parties to successive collective bargaining agreements (“CBA”) for more than forty years. Union Append. Tab 2, Hill Aff. ¶ 2. The plaintiffs were originally employed at the Chrysler electrical plant in Indianapolis (“Indianapolis Plant”), but during a layoff from that plant they transferred at various times between 1979 and 1986 to the Kokomo Plant. While they were at the *1410 Indianapolis Plant they were covered by the Chrysler and UAW national CBA, which is the same agreement used at the Kokomo Plant and at issue here. The Employees’ dates of entry at the Indianapolis Plant for seniority purposes were 1967, 1968 and 1973.

Under a provision of the national CBA, the Employees were allowed to apply for work in the Kokomo Plant under a “Work Opportunity” plan. Hill Aff. ¶ 4. The “Work Opportunity” plan provided:

Notwithstanding the applicability of Section (64) to Corporation plants in the same labor market area, in employing new people in Corporation plants in the State of Indiana covered by the Production and Maintenance Agreement between Chrysler Corporation and the International Union, UAW, dated October 25, 1985, the plant will give work opportunity pursuant to Section (64) to employees covered by the same Agreement who are at the time on indefinite layoff from other Corporation plants in that State, provided they make application for such work within forty-five (45) days of the date of the definite layoff.
* ‡ # ‡ ‡
Employees who elect not to return when recalled shall retain any rights accrued for purposes of holiday pay, payment in lieu of vacation, pensions, insurance and the Supplemental Unemployment Benefit Plan. Seniority rights of employees who are laid off from the plant in which they were placed pursuant to the first sentence of this letter shall at the time of such layoff be governed by the provisions of Section (64)(b) of the Production and Maintenance Agreement dated October 28,1985.

Hill Aff. Ex. A.

Section 64 of the 1985 Agreement allows employees who are laid off from one plant to seek a work opportunity at another plant located in their own labor market. A revision memorialized in a letter attached to the 1985 Agreement (“Work Opportunity Plan”) broadens the territory in which such employees can seek a work opportunity to include the entire State of Indiana. Union Append. Tab 1, Ex. B. That is the plan under which the Employees here sought work in Kokomo, which was otherwise out of their labor market. Union Append. Tab 1, Clark Deck ¶ 5. All other aspects of Section 64 remained the same.

With respect to seniority, Section 64(b) provides that laid-off employees who obtain a work opportunity at another plant “shall rank for seniority as of the date of entry in the plant.” Hill Aff. Ex. B. It appears, however, that the seniority they earned at their former plant continued as long as they were working at some plant in the state. If the employee was subsequently laid off from the new plant, he or she was required to elect which seniority date should be used for calculating his or her recall status (“Competitive Seniority”). Union Append. Tab 1, Clark Deck ¶ 6. Employees could retain their seniority dates in the new plant and be in line for recall there, in which case their Competitive Seniority at the old plant would be terminated. Alternatively, employees could elect to retain their old Competitive Seniority, which meant that they would not be in line for recall at the new plant. Id.

The Employees here had obtained work through the Indiana Work Opportunity Plan at the Kokomo plant, but were laid off shortly thereafter. Hill Aff. ¶ 8; Union Append. Tab 3, Smith Dep. at 97. At the time of that layoff, they were required to make an election regarding their Competitive Seniority status. Each one of the plaintiffs elected to retain their Kokomo Competitive Seniority, which meant they lost their Indianapolis Plant seniority for purposes of recalls. Hill Aff. ¶ 9, Ex. E. All of the seniority election forms were signed by the Employees by March 2, 1987. Id. According to the terms of the national CBA, Section 64(b), however, an employee who accepted work under the Work Opportunity Plan retained his former seniority rights for purposes of vacation, holidays, pensions, insurance and the Supplemental Unemployment Benefit Plan (“Corporate Seniority”). Id., Ex. B, Section 64(b).

What has created the conflict in this case is the existence of a different program that applies when a plant is being closed. In that case, laid off employees’ ability to acquire work at other plants is reflected in the Memorandum of Understanding on Plant Closings *1411 (the “Memorandum”), entered on October 28, 1985, by Chrysler and the Union. Hill Aff., Ex. B. The Memorandum provides that anyone on layoff when a plant closing is announced or occurs, or anyone laid off pursuant to a plant closing, may obtain a job that is open by reason of attrition at any other plant in the United States. Id. It also allows these employees to retain the same Corporate and Competitive Seniority date they had at the plant that is closing. Id.

A clue to the reason behind this concession is found in the second “whereas” clause of the Memorandum, which reads:

WHEREAS, due to the plant closing such laid off employees have no recall rights to any Corporation plant.

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938 F. Supp. 1406, 153 L.R.R.M. (BNA) 2189, 1996 U.S. Dist. LEXIS 12508, 1996 WL 490221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-chrysler-corp-insd-1996.