United Food & Commercial Workers Union, Local 1564 of New Mexico v. Albertson's, Inc.

207 F.3d 1193, 5 Wage & Hour Cas.2d (BNA) 1705, 2000 Colo. J. C.A.R. 1541, 163 L.R.R.M. (BNA) 2903, 2000 U.S. App. LEXIS 4093, 2000 WL 282309
CourtCourt of Appeals for the Tenth Circuit
DecidedMarch 16, 2000
Docket98-2267
StatusPublished
Cited by55 cases

This text of 207 F.3d 1193 (United Food & Commercial Workers Union, Local 1564 of New Mexico v. Albertson's, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Food & Commercial Workers Union, Local 1564 of New Mexico v. Albertson's, Inc., 207 F.3d 1193, 5 Wage & Hour Cas.2d (BNA) 1705, 2000 Colo. J. C.A.R. 1541, 163 L.R.R.M. (BNA) 2903, 2000 U.S. App. LEXIS 4093, 2000 WL 282309 (10th Cir. 2000).

Opinion

LUCERO, Circuit Judge.

This case presents the question of whether a federal court has jurisdiction to adjudicate a union’s declaratory judgment claim, premised on the federal question statute, 28 U.S.C. § 1331, and the Declaratory Judgment Act of 1934, 28 U.S.C. § 2201, that a collective bargaining agreement contains terms that run afoul of the Fair Labor Standards Act of 1938 (“FLSA”), 29 U.S.C. §§ 201-219. At the time this litigation was filed, federal jurisdiction was soundly based on § 301(a) of the Labor Management Relations Act of 1947 (“LMRA”), 29 U.S.C. § 185(a), as interpreted by this court in McNally Pittsburg, Inc. v. International Ass’n of Bridge, Structural & Ornamental Iron Workers, 812 F.2d 615, 617-19 (10th Cir.1987). In the interim, however, the Court has handed down its decision in Textron Lycoming Reciprocating Engine Division, AVCO Corp. v. UAW, 523 U.S. 653, 118 S.Ct. 1626, 140 L.Ed.2d 863 (1998), holding that jurisdiction does not lie under § 301(a) for a declaratory judgment suit alleging the invalidity, but not a party’s violation, of a collective bargaining agreement — clearly rejecting our prior interpretation of § 301(a) and eliminating that jurisdictional basis. Appellee now appears before us asserting a different jurisdictional basis, hoping to preserve its favorable decision below by relying on the argument that this case “arises under” the FLSA so as to permit federal question jurisdiction pursu *1195 ant to 28 U.S.C. § 1881 and the Declaratory Judgment Act. We reluctantly conclude that the FLSA’s prohibition on injunctive and representative damages suits by unions, see 29 U.S.C. § 216(b), renders this argument unavailing. If the FLSA bars a labor organization from seeking legal and equitable relief thereunder on behalf of its members, it necessarily follows that declaratory relief is likewise impermissible, and therefore the FLSA cannot furnish grounds for federal question jurisdiction and the case must be dismissed for lack of jurisdiction.

I

This case involves the collective bargaining agreement that applies to grocery clerks working at Albertson’s stores in New Mexico. Because Albertson’s sells alcoholic beverages, New Mexico’s Alcohol Server Education Article of the Liquor Control Act (“ASEA”), N.M. Stat. Ann. § 60-6E-1 to -6E-12 (Michie 1978 & 1999 Supp.), requires that, in order for the company to continue to sell alcohol, it certify that all its employees selling alcohol have completed a state-approved alcohol server education program. See N.M. Stat. Ann. § 60-6E-4. Albertson’s imposes as a condition of employment a requirement that employees complete this training, which takes about four to five hours, and must be renewed every five years. See N.M. Stat. Ann. § 60-6E-7. The company does not pay employees for the training time.

The United Food and Commercial Workers Union, Local 1564 of New Mexico (“UFCW”) initiated arbitration, alleging that the training time was work covered by the collective bargaining agreement, and that the arbitrator should interpret the agreement in light of the FLSA. The arbitrator stated he had no authority to interpret the FLSA and decided that the agreement does not cover ASEA training time.

In June 1997, the UFCW filed suit in district court, alleging that the agreement, as interpreted, was invalid because it conflicts with the FLSA. 1 According to its complaint, the agreement as interpreted violates the FLSA by denying employees compensation for hours that constitute “work” within the meaning of the statute. On cross-motions for summary judgment, the district court found it had jurisdiction over this controversy under the Declaratory Judgment Act and 28 U.S.C. § 1331, the general federal question statute. Following a bench trial, the district court held that the training was covered work under the FLSA, and therefore the agreement’s (implied) term excluding training from covered work contravened the statute. It declared the term invalid and ordered the UFCW and Albertson’s to renegotiate the offending provision. Albertson’s now appeals.

II

As an initial matter, we must determine whether federal jurisdiction is proper in this action. Although the district court concluded that jurisdiction “is proper where the real dispute revolves around whether the parties have a valid collective bargaining agreement,” United Food & Commercial Workers Union, Local 1564 v. Albertson’s, Inc., No. CIV 98-0789 (D.N.M. July 23, 1998), mem. op. at 4 (citing Teamsters, Local 182 v. New York State Teamsters Health & Hosp. Fund, 909 F.Supp. 102 (N.D.N.Y.1995)), the issue of federal court jurisdiction over declaratory judgment suits alleging invalidity of collective bargaining agreements has become substantially more complicated since the Supreme Court’s recent decision in Textron, 118 S.Ct. at 1626.

A

Section 301(a) of the LMRA provides, in relevant part, that “[sjuits for violation of contracts between an employer and a labor organization ... may be brought in any *1196 district court of the United States.” 29 U.S.C. § 185(a). In McNally Pittsburg, Inc., 812 F.2d at 619, we interpreted this provision broadly to confer jurisdiction on the federal courts over a declaratory judgment “complaint which address only the validity and not a violation of a collective bargaining agreement,” id. at 617.

In Textron, 118 S.Ct. at 1629, however, the Supreme Court held, based on a dictionary definition analysis of the language of LMRA § 301(a), that “ ‘[sjuits for violation of contracts’ under § 301(a) are not suits that claim a contract is invalid, but suits that claim a contract has been violated.” This holding overrules our decision in McNally Pittsburg, Inc., 812 F.2d at 617-19, wherein we held that § 301(a) provides for federal jurisdiction over a union’s declaratory judgment action asserting only the invalidity of a collective bargaining agreement, but not a violation of that agreement by a party thereto.

The Textron Court also considered whether federal jurisdiction extends to the declaratory judgment aspect of a union’s suit alleging that a collective bargaining agreement is invalid due to fraud. Assuming (albeit skeptically) without deciding that “a declaratory-judgment complaint raising a nonfederal defense [i.e.

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Bluebook (online)
207 F.3d 1193, 5 Wage & Hour Cas.2d (BNA) 1705, 2000 Colo. J. C.A.R. 1541, 163 L.R.R.M. (BNA) 2903, 2000 U.S. App. LEXIS 4093, 2000 WL 282309, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-food-commercial-workers-union-local-1564-of-new-mexico-v-ca10-2000.