Thomas Baltrusaitis v. UAW

86 F.4th 1168
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 22, 2023
Docket22-1383
StatusPublished
Cited by15 cases

This text of 86 F.4th 1168 (Thomas Baltrusaitis v. UAW) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas Baltrusaitis v. UAW, 86 F.4th 1168 (6th Cir. 2023).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 23a0255p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ THOMAS BALTRUSAITIS; GUILLERMO ANTUNEZ; PATRICK │ BARTH; RICHARD BROECKER; RYAN BUDEK; TUYEN │ CHU; DARRYL CRAIG; SATISH DOSHI; JOHN FLETCHER; │ EMORY GASPERAK; JON HUTCHINSON; ALAN R. │ No. 22-1383 JARZEMBOWSKI; FRANK KOTSONIS; SANDRA D. LANGE; > ARTHUR LAURIN; KEVIN LUCZAK; TIM MAURO-VETTER; │ REGINALD MCINTYRE; CARL OBERNDORFER; JEROME │ PEACOCK; EJAZ RAHMAN; CHARLIE RICKMAN; MARK │ ROSINSKI; GREG RYNTZ; MICHAEL SAVOSKY; BRIAN │ SCHIFFMAN; FRED SCHNELL; GREGORY SKONIECZNY; │ LISA SOWINSKI; SURAJ TANDON; CHANCE TESS; JAMES │ VIRIGLIO; BRIAN WARDA; COREY WATKINS; DANNY │ WOODRUFF; HAROLD WRIGHT; JOHN ZELL; JAMES │ ZIEMIANSKI, │ Plaintiffs-Appellants, │ │ │ v. │ │ INTERNATIONAL UNION, UNITED AUTOMOBILE, │ AEROSPACE AND AGRICULTURAL IMPLEMENT WORKERS │ OF AMERICA; FCA US, LLC; ALPHONS IACOBELLI; │ JEROME DURDEN; MICHAEL BROWN; DENNIS WILLIAMS; │ GARY JONES; NORWOOD H. JEWELL; VIRDELL KING; │ KEITH MICKENS; JOHN DOES 1–10, │ Defendants-Appellees. │ ┘

Appeal from the United States District Court for the Eastern District of Michigan at Port Huron. No. 3:20-cv-12793—Robert H. Cleland, District Judge.

Argued: July 20, 2023

Decided and Filed: November 22, 2023

Before: GILMAN, LARSEN, and NALBANDIAN, Circuit Judges. No. 22-1383 Baltrusaitis, et al. v. UAW, et al. Page 2

_________________

COUNSEL

ARGUED: Kenneth D. Myers, Cleveland, Ohio, for Appellants. Elisabeth Oppenheimer, BREDHOFF & KAISER, PLLC, Washington, D.C., for Appellee UAW. Julia M. Jordan, SULLIVAN & CROMWELL, LLP, Washington, D.C., for Appellee FCA. ON BRIEF: Kenneth D. Myers, Cleveland, Ohio, for Appellants. Elisabeth Oppenheimer, Jacob Karabell, BREDHOFF & KAISER, PLLC, Washington, D.C., for Appellee UAW. Julia M. Jordan, SULLIVAN & CROMWELL, LLP, Washington, D.C., Steven L. Holley, Jacob E. Cohen, Justin M. Zaretzky, SULLIVAN & CROMWELL LLP, New York, New York, Brian M. Schwartz, MILLER, CANFIELD, PADDOCK & STONE, PLC, Troy, Michigan, for Appellee FCA. Michael A. Nedelman, NEDELMAN LEGAL GROUP, PLLC, Farmington Hills, Michigan, for Appellee Iacobelli. Judith S. Gracey, THE GRACEY LAW FIRM, PLLC, Keego Harbor, Michigan, for Appellee Durden. _________________

OPINION _________________

LARSEN, Circuit Judge. Plaintiffs are current and former engineers employed by automaker FCA US LLC (now Stellantis). In 2011, FCA transferred the work that plaintiffs had previously performed at FCA’s company headquarters to a new location. Plaintiffs were unhappy with the transfer, and in 2015 they filed a grievance with their union, the United Auto Workers (UAW). The UAW failed to pursue it. In 2017, plaintiffs filed essentially the same grievance, but the UAW again did not pursue it. By this time, plaintiffs had learned of a massive bribery scheme involving FCA and the UAW. Plaintiffs believed that those bribes had affected the 2011 job-relocation process, as well as the UAW’s treatment of their grievances. In 2018, plaintiffs filed the same grievance again. Nearly two years later, the UAW found the grievance meritorious. Plaintiffs then sued FCA, the UAW, and various individual defendants in October 2020, raising claims under the Labor Management Relations Act (LMRA) and the Racketeer Influenced and Corrupt Organizations Act (RICO). Defendants moved to dismiss, arguing that the statute of limitations barred both claims. The district court agreed and dismissed the complaint. For the reasons stated, we AFFIRM. No. 22-1383 Baltrusaitis, et al. v. UAW, et al. Page 3

I.

Because this case is at the Federal Rule of Civil Procedure 12(b)(6) stage, “the factual allegations in the complaint are what matter.” Gen. Motors, LLC v. FCA US, LLC, 44 F.4th 548, 551 (6th Cir. 2022). We quote them liberally and accept them as true. Id.

Plaintiffs are 47 current and former engineers employed by FCA in the Advance Manufacturing Engineering Powertrain (AMEPT) division. In late 2011, then-FCA Vice President of Employee Relations Alphons Iacobelli transferred “the work performed by the AMEPT division at the Chrysler Technical Center (CTC) located at FCA’s company headquarters in Auburn Hills, Michigan, to the [Trenton Engine Complex] in Trenton, Michigan.” R. 4, Amended Complaint, PageID 337.

Plaintiffs were unhappy with the transfer. “[I]t added significant time to their daily commutes, approximately an hour each way, in addition to the increased fuel costs and vehicle wear and tear.” Id. at 338. What’s more, plaintiffs “did not receive a relocation allowance.” Id. Shortly “after the transfer began, plaintiffs became aware that [various] transfer provisions of the collective bargaining agreement were being violated.” Id. Other workers, including most of AMEPT management, continued to work out of the CTC, or nearby locations; and “those who avoided the long commute to Trenton had more time available to work overtime assignments.” Id. at 339. Plaintiffs raised other concerns with the transfer, including the unfair use of company cars and what plaintiffs believed “to be an increase in the number of non-bargaining unit (NBU) employees doing bargaining unit work.” Id. at 340. In addition, the “long commute to Trenton and low morale attributable to unequal implementation of the transfer” caused a decline in the number of salaried-bargaining-unit (SBU) employees in the group. Id. UAW leadership did nothing, taking “company-friendly positions on a number of issues” and not properly handling grievances filed by plaintiffs. Id. at 340–41. According to plaintiffs, “prior local union leadership enjoyed privileges such as increased access to overtime as a result of their acquiescence to management in union matters.” Id. at 341.

In 2015, plaintiffs filed a grievance regarding the 2011 transfer, seeking $30,000 in compensation for each affected employee. That “grievance was not pursued by the union No. 22-1383 Baltrusaitis, et al. v. UAW, et al. Page 4

beyond the second step” of the internal union grievance process. Id. In 2017, plaintiffs filed another grievance related to the job relocation on behalf of all employees in the transferred group. This time, plaintiffs alleged that the “illegal Transfer of Operations” was the result of collusion between FCA and “corrupt UAW officials.” Id. at 341–42. Plaintiffs sought $172,800 in compensation for each employee, “as well as a $45,000 car voucher per employee to compensate for added mileage placed on their vehicles.” Id. at 342. Plaintiffs “also requested that employees be relocated back to CTC” along with “all work traditionally performed by SBU employees.” Id.

The collusion allegations in the 2017 grievance stemmed from “the government’s indictment of Alphons Iacobelli on July 26, 2017 for violation of federal labor law and tax evasion.” Id. That indictment revealed that “from about 2009 until the Iacobelli indictment was made public in 2017, high-level FCA officials had been paying bribes to UAW officials in exchange for the UAW negotiating company-friendly contracts and acting in the company’s interests on grievances.” Id. at 343. According to plaintiffs, the indictment was the first “public acknowledgment” of any government investigation into the scandal and the first information they “had that their complaints and grievances had been affected by bribery between FCA and the UAW.” Id. Plaintiffs alleged:

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86 F.4th 1168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-baltrusaitis-v-uaw-ca6-2023.