Standard Motor Freight, Inc. v. LOCAL UNION NO. 560, INTERN. BROTHERHOOD OF TEAMSTERS

228 A.2d 329, 49 N.J. 83, 1967 N.J. LEXIS 206, 64 L.R.R.M. (BNA) 2773
CourtSupreme Court of New Jersey
DecidedMarch 20, 1967
StatusPublished
Cited by30 cases

This text of 228 A.2d 329 (Standard Motor Freight, Inc. v. LOCAL UNION NO. 560, INTERN. BROTHERHOOD OF TEAMSTERS) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Standard Motor Freight, Inc. v. LOCAL UNION NO. 560, INTERN. BROTHERHOOD OF TEAMSTERS, 228 A.2d 329, 49 N.J. 83, 1967 N.J. LEXIS 206, 64 L.R.R.M. (BNA) 2773 (N.J. 1967).

Opinion

The opinion of the court was delivered by

Hall, J.

This labor relations case involves an aspect of so-called “procedural arbitrability” under a collective bargaining agreement between plaintiff, the employer, a motor trucking concern engaged in interstate commerce, and defendant, the union representing its employees. The underlying question—one of interpretation of the contract—-is which of several grievance forums provided by the agreement has jurisdiction over a union complaint, conceded to be substantively arbitrable, arising from the particular circumstances of the termination of employment of one of plaintiff’s drivers. More precisely, the problem is whether this termination concerned “a matter of discharge,” requiring that the dispute take one procedural route, or whether it did not, and so should follow another course, having possible differing consequences as to final and binding effect. The initial issue is whether this question is to be answered by a court or by one of the forums created by the agreement.

The union considered the dispute not to concern “a matter of discharge” and so brought the grievance before the forum—the first step intra-industry tribunal created by *86 the agreement—designated to hear non-discharge complaints. The employer objected to the jurisdiction of the forum and would not participate in the hearing on the ground that the dispute was a discharge matter and so could be heard only by the tribunal—outside arbitration—appointed to decide such controversies. It refused to comply with the award in the employee’s favor and, when the union threatened a strike, commenced this suit in the Chancery Division to vacate the award.

Both parties agree that the action, brought pursuant to section 301(a) of the Labor Management Relations Act of 1947, 39 U. S. C. A. § 185(a), Textile Workers Union of America v. Lincoln Mills, 353 U. S. 448, 77 S. Ct. 912, 1 L. Ed. 2d 972 (1957), may be prosecuted in a state court, Local 174, etc. v. Lucas Flour Co., 369 U. S. 95, 82 S. Ct. 571, 7 L. Ed. 2d 593 (1962). It is entirely clear, however, as both cited cases held, that substantive federal labor law, and not state law, is controlling. Accord: Donnelly v. United Fruit Co., 40 N. J. 61, 74—75 (1963); Jersey Central Power & Light Co. v. Local Union No. 1289, etc., 38 N. J. 95, 104 (1962); United States Pipe and Foundry Co. v. United Steelworkers of America, etc., 37 N. J. 343, 360 (1962).

The trial court, finding that the underlying question was one for judicial determination, decided it by holding that the dispute did concern “a matter of discharge” and so that the forum which rendered the award had no power to do so and the grievance fell rather within the sole jurisdiction of the outside arbitrator. It therefore vacated the award and directed submission to the arbitrator. The Appellate Division reversed, in an unreported per curiam opinion. It held that “the interpretation of the contract”, i. e., which forum had jurisdiction, “and the application of such interpretation to the facts of the case” were, under the provisions of the agreement, “exclusively within the jurisdiction of” the second step intra-industry tribunal. It concluded that the trial court was in error in directing submission of the matter *87 to outside arbitration, but that the first step forum which rendered the award .had no jurisdiction either. The effect, says the union, is improperly to compel presentation of the grievance anew to the second intra-industry forum. We granted cross-petitions for certification. 47 N. J. 562 (1966).

The bargaining agreement involved is the New Jersey-New York Area General Trucking Agreement, negotiated on an area-wide, multi-employer, multi-union basis and affecting thousands of employees in the trucking business. We are advised that the basic form of the instrument derived from one in similar use in other sections of the country, which was originally negotiated and in considerable part drafted by laymen engaged on both sides in the industry. It utilizes a nomenclature and provisions largely meaningful only to those intimately associated with the business and the negotiations. It is not, and indeed is not intended to be, a tight, integrated commercial contract. So there appear to us, as strangers to it, a number of ambiguities, imprecise uses of language and incomplete terms. We can well understand that all of this is a necessary result of the practicalities and time and other pressures of a bargaining negotiation. We recognize too that, by the very nature of a labor contract, affecting large numbers of people, covering a wide range of conduct and an enormous variety of •problems, operating prospectively over a substantial period between parties who share a degree of mutual interdependence seldom associated with simple contracts, and based upon a mass of unstated assumptions and past practices, it is essentially an instrument of government, to be considered quite differently than ordinary commercial instruments. Cox, “Reflections Upon Labor Arbitration,” 72 Harv. L. Rev. 1482, 1490—1493 (1959); Shulman, “Reason, Contract and Law in Labor Relations,” 68 Harv. L. Rev. 999, 1004-1005 (1955). As the United States Supreme Court put it in United Steelworkers of America v. Warrior & Gulf Navigation *88 Co., 363 U. S. 574, 80 S. Ct. 1347, 4 L. Ed. 2d 1409 (1960):

“The collective bargaining agreement states the rights and duties of the parties. It is more than a contract; it is a generalized code to govern a myriad of cases which the draftsmen cannot wholly anticipate * * * The collective agreement covers the whole employment relationship. It calls into being a new common law—the common law of a particular industry or of a particular plant.
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A collective bargaining agreement is an effort to erect a system of industrial self-government.” (80 S. Ct., at p. 1351, 4 L. Ed. 2d, at pp. 1415, 1416).

This concept furnishes further meaning to the statement in Lincoln Mills (77 S. Ct., at p. 918, 1 L. Ed. 2d, at p. 980) that courts should fashion substantive federal labor law “from the policy of our national labor laws.” Together they guide our approach and function in cases like this one.

As has been indicated, this agreement provides for three different grievance tribunals, two within the industry and one independent of it. Disputes are treated in two classifications, “matters of discharge” and all others. The former, unless the parties otherwise agree, go to the outside forum —the Yew Jersey State Board of Mediation (formerly called and designated in the agreement as the Yew Jersey State Mediation Service), N. J. S. A.

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228 A.2d 329, 49 N.J. 83, 1967 N.J. LEXIS 206, 64 L.R.R.M. (BNA) 2773, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standard-motor-freight-inc-v-local-union-no-560-intern-brotherhood-of-nj-1967.