Teamsters Local Union No. 75 v. Schreiber Foods, Inc.

65 F. Supp. 2d 959, 1999 U.S. Dist. LEXIS 13941, 1999 WL 714122
CourtDistrict Court, E.D. Wisconsin
DecidedSeptember 1, 1999
Docket98-C-1151
StatusPublished

This text of 65 F. Supp. 2d 959 (Teamsters Local Union No. 75 v. Schreiber Foods, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Teamsters Local Union No. 75 v. Schreiber Foods, Inc., 65 F. Supp. 2d 959, 1999 U.S. Dist. LEXIS 13941, 1999 WL 714122 (E.D. Wis. 1999).

Opinion

DECISION AND ORDER

MYRON L. GORDON, District Judge.

Teamsters Local Union No. 75 brought this action to compel Schreiber Foods, Inc. [“Schreiber”] to arbitrate a grievance. The court has jurisdiction under Section 301 of the Labor Management Relations Act, 29 U.S.C. § 185. Both parties have filed motions for summary judgment, and they have agreed that there are no issues of fact precluding this court from deciding whether or not they must submit to arbitration. For the reasons that follow, I find that the collective bargaining agreement [“CBA”] between Schreiber and the union requires them to arbitrate their dispute.

I. UNDISPUTED FACTUAL BACKGROUND

Under the terms of their CBA with Schreiber, union employees may increase their regular pay by participating in one or more of its “Pay for Performance” [“PP”] incentive programs. (Joint Stipulation of Facts [“SF”] ¶¶ 7-10, Exh. 2.) One of these is the “Safe Work” program, which allows participants to earn an extra 30 cents per hour if they work safely and avoid injuries that require medical treatment. (SF ¶ 7, Exh. 2.) Part of the Safe Work program is a pre-work voluntary exercise program designed to prevent injury from carpal tunnel syndrome. (SF ¶ 10, Exh. 2.) Under the CBA, those who fully participate in the carpal tunnel prevention program can still earn the 30-cent premium if they are diagnosed with carpal tunnel syndrome. (SF ¶ 12, Exh. 2.)

For the first few years of the carpal tunnel prevention program, the exercises were performed during the 15 minutes before the start of the workers’ eight-hour shift. Participants were paid overtime — 1 /& times their regular hourly rate — for the extra 15 minutes. (SF ¶ 15.) In October 1997, however, the company rescheduled the program so that the exercises could only be done during the shift at regular pay. (SF ¶¶ 14; Supplemental SF [“SSF”] ¶ 2.) After the scheduling change, worker participation in the carpal tunnel prevention program dropped from 50% to 31%. (Defendant’s Proposed Findings of Fact [“DPFF”] ¶ 2.)

This case arises from Schreiber’s scheduling decision, which eliminated the workers’ opportunity to earn an extra 15 minutes of overtime pay each shift. The union filed a grievance claiming that this conduct violated the CBA. The company denied the grievance, maintaining that the decision was within its sole discretion. The union sought arbitration of the grievance, but the company refused on the ground that the dispute was not covered by the CBA and its arbitration clause. (SF ¶¶ 17-24.) This lawsuit to compel arbitration followed.

The PP programs were first proposed by the company in 1992. (SF ¶¶ 7-9.) They were formally established in the parties’ 1993 CBA, which incorporates a memorandum of agreement that describes the parties’ obligations with respect to the PP programs. (SF Exh. 2.) A new CBA containing the same relevant provisions became effective in 1998. (SF Exh. 1.) As there is no material difference between the agreements, I will refer to them collectively as the CBA.

Article 9 df the CBA defines a “grievance” as “a dispute arising under a provision of this Agreement.” Under Article *961 10, a timely grievance that is not settled may be submitted to an arbitrator, who is authorized to render a final decision as to the application of the CBA to the facts of the grievance.

The CBA includes a memorandum of agreement which establishes several PP programs. (SF Exh. 2 at 30, Exh. 1 at 35.) The memorandum provides that employees “will be eligible for hourly pay premiums” for participation in the programs, including the “Safe Work” program. Section 2 of the memorandum further states:

The Company agrees to establish a training schedule at reasonable times and frequencies to afford employees who desire to participate in the Company’s pay for performance programs the opportunity to successfully complete such program before the anniversary date of the agreement as set forth in the parties’s [sic] collective bargaining agreement. Should the Company fail to provide this opportunity, the employee will be provided the benefits of such program until the employee has been provided such opportunity.

The carpal tunnel prevention program is specifically mentioned in an exhibit to the memorandum. “In the event an employee is diagnosed with carpal tunnel syndrome, the employee will not lose safework pay, provided the employee fully participates in company sponsored carpal tunnel programs.” There are no provisions explicitly requiring Schreiber to pay ■ employees overtime wages for their participation in the carpal tunnel prevention program.

The final provision relevant to this action is section 5 of the memorandum of agreement, which excludes certain aspects of the PP programs from arbitration. It states:

The administration (for example, including but not limited to, the content of any program, training, questions asked on any exam, grading of the exam, etc.) of the Pay for Performance program is in the exclusive discretion of the Company and it will not be subject to arbitration.

II. ANALYSIS

Several established principles apply in cases to compel arbitration pursuant to a CBA. “ ‘Arbitration is a matter of contract and. a party cannot be required to submit to arbitration any dispute that he has not, agreed to submit.’ ” Local Union 1393 Int’l Brotherhood of Electrical Workers v. Utilities Dist. of Western Indiana Rural Electric Membership Cooperative, 167 F.3d 1181, 1183 (7th Cir.1999) (quoting AT & T Technologies, Inc. v. Communications Workers of Am., 475 U.S. 643, 650, 106 S.Ct. 1415, 89 L.Ed.2d 648 (1986)). Whether a CBA imposes a duty to arbitrate a particular grievance is a matter for the court to decide. Utilities Dist., 167 F.3d at 1182. A court should not rule on the potential merits of the underlying case, unless it must do so in order to answer the question of arbitrability. Local 744, Int’l. Brotherhood of Teamsters v. Hinckley & Schmitt, Inc. 76 F.3d 162, 163 (7th Cir.1996). Finally,

when the contract contains an arbitration clause, there is a presumption of arbitrability in the sense that “[a]n order to arbitrate the particular grievance should not be denied unless it may be said with positive assurance that the ar- , bitration clause is not susceptible of an interpretation that covers the asserted dispute. Doubts should be resolved in favor of coverage.”

Utilities Dist., 167 F.3d at 1183-84 (quoting AT & T, 475 U.S. at 650, 106 S.Ct. 1415).

Schreiber bases its refusal to arbitrate on two grounds. It argues that section 5 of the memorandum of agreement (quoted above) excludes this matter from arbitration because the company’s decision constitutes “administration”.

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65 F. Supp. 2d 959, 1999 U.S. Dist. LEXIS 13941, 1999 WL 714122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/teamsters-local-union-no-75-v-schreiber-foods-inc-wied-1999.