United Brick & Clay Workers of America v. International Union of District 50

315 F. Supp. 224, 74 L.R.R.M. (BNA) 3010
CourtDistrict Court, E.D. Missouri
DecidedJune 22, 1970
DocketNo. 69 C 450(2)
StatusPublished
Cited by3 cases

This text of 315 F. Supp. 224 (United Brick & Clay Workers of America v. International Union of District 50) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Brick & Clay Workers of America v. International Union of District 50, 315 F. Supp. 224, 74 L.R.R.M. (BNA) 3010 (E.D. Mo. 1970).

Opinion

MEMORANDUM

MEREDITH, District Judge.

This matter is before the Court on motions for summary judgment by the plaintiff United Brick and Clay Workers of America, AFL-CIO, and defendant United Mine Workers of America. The plaintiffs are the United Brick and Clay Workers of America AFL-CIO, a labor organization within the meaning of section 2(5) of the National Labor Relations Act, and Michael J. Farrel, Coleman McKay, Melvin McKay, Fred Nation, Charles E. Patterson, and Russell Potter, employees of the' Alton Brick Company, who bring this action on behalf of themselves and others similarly situated. The defendants are the International Union of District 50, United Mine Workers of America, a labor organization within the meaning of section 2(5) of the Act, and the Alton Brick Company, a corporation authorized to do business and with its principal place of business in Missouri, and an employer within the meaning of section 2(2) of the Act. This Court has jurisdiction under 29 U.S.C. § 185.

From April 1963 the defendant District 50 was the certified exclusive bargaining representative of the bargaining unit composed of all the production and maintenance workers of the defendant Alton Brick Company. Collective bargaining agreements were executed by District 50 and Alton Brick in July 1963 and April 1966, the latter to expire on April 30, 1969. On February 10, 1969, the Brick and Clay Workers filed a representation petition with the National Labor Relations Board. On March 25, 1969, the Board conducted a representation election in which a majority of the employees of the bargaining unit at Alton Brick voted to be represented by the Brick and Clay Workers. The Board certified the results on April 8, 1969.

The contracts executed between District 50 and Alton Brick in 1963 and [226]*2261966 contained the following identical provisions:

“ARTICLE XII PENSION PLAN
Beginning May 1, 1964, the Company agrees to inaugurate a pension plan which shall provide that the Company pay the sum of five cents (50) per hour for each regular employee employed, said sum not to be less than nor more than $2.00 in any one week in which the employee works, said pension trust and plan to be mutually agreed upon between the Company and the Union and have the approval of the Internal Revenue Service; the same to be administered by Trustees, an equal number to be designated by the Union and the Employer. That on May 1, 1965, the Company agrees to pay the sum of ten cents (100) per hour for each regular employee employed to said pension plan, said sum not to be less than nor more than $4.-00 per week, which amount shall be frozen for a period of five (5) years from the effective date of the pension plan, May 1, 1964. That, at the time of the creation of this Pension Trust and Pension Plan it shall be compulsory for an employee to retire at age 65 and also employees shall have the right to retire at age 62 years, provided they comply with all the terms of the Pension Trust and Pension Plan as the same may be approved by the Department of Internal Revenue Service. The company shall not be required to make weekly payments to the Pension Plan for those employees that are on layoff or for any week in which an employee does not work except where an employee is on vacation and when an employee is off work due to a compensable injury.”

On August 13, 1964, Alton Brick and District 50 executed a Pension Agreement pursuant to the above-quoted provision of the collective bargaining agreement, which provides in part:

ARTICLE VI
“Section 9. This Agreement shall become effective May 1, 1964, and shall continue in effect until April 30, 1966, and shall automatically continue thereafter during annual periods of one (1) year each, unless either party notifies the other in writing not less than sixty (60) days prior to an annual expiration date that a discontinuance or modification is desired. In the event of such notification, negotiations hetween the parties shall begin within fifteen (15) days following such notification. If pursuant to such negotiations an agreement, renewal or modification is not reached prior to the current expiration date, this Agreement shall continue in force for an additional thirty (30) days unless it is extended for a further period by mutual agreement of the parties.”

On that same date, the defendants and the National Bank of Washington entered into a Trust Agreement whereby the National Bank was to serve as Trustee of the Pension Fund, effective May 1, 1964. Articles XI and XII of the agreement, relating to termination of the agreement, provide as follows:

“ARTICLE XI
“Upon the termination of the Pension Agreement, the Trustee after notice from the Company and the Union shall liquidate the assets of the Pension Fund and deposit the proceeds thereof as part of the cash reserve in Trust to be disbursed as provided in said Pension Agreement. In no event shall any part of the principal or income of the Pension Fund be paid to or for the use or benefit of the Company.”
“ARTICLE XII
“This Trust agreement shall be construed in conjunction with the Wage Agreement and the said Pension Agreement and the rights of all parties hereunder shall be subject to the terms and provisions of said Agreements.”

The agreement was amended on June 27, 1968, among other things, by changing the Trustee to the National Savings [227]*227and Trust Company, and by amending Article XI as follows:

“ARTICLE XI
“Upon the termination of the Pension Agreement, the Trustee after notice from the Company and the Union shall liquidate the assets of the Pension Fund and deposit the proceeds thereof as part of the cash reserve in trust to be disbursed as provided in said Pension Agreement. In no event shall any part of the principal or income of the Pension Fund be paid to or for the use or benefit of the Company.
“In the event of termination or upon complete discontinuance of contributions under the plan, the rights of all participants to benefits accrued to the date of such termination or discontinuance, to the extent then funded, are non-forfeitable.”

On May 2, 1969, after the certification of the plaintiff Brick and Clay Workers, the defendants executed a document under and pursuant to the provisions of the Pension Plan and Trust Agreement, calling upon the Trustee to terminate the Trust, liquidate the assets of the said Pension Fund and to deposit the proceeds as a part of the cash reserve in trust, subject to the further instructions of the Pension Committee by and with the approval of the Alton Brick Company and District 50 as provided in the said Pension and Trust Agreements.

The National Savings and Trust Company liquidated the assets of the pension fund and is awaiting further instructions as to the disposition of these funds. The fund contains about $76,-300.00. Under the instructions submitted by Alton Brick and District 50, the funds are to be used to purchase annuities for those employees who had already retired on April 30, 1969, and for those employees who had vested rights in the fund under the terms of the agreement.

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315 F. Supp. 224, 74 L.R.R.M. (BNA) 3010, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-brick-clay-workers-of-america-v-international-union-of-district-moed-1970.