United Mine Workers of America, International Union v. U.S. Steel Mining, Inc.

895 F.2d 698
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 5, 1990
DocketNo. 86-1795
StatusPublished
Cited by1 cases

This text of 895 F.2d 698 (United Mine Workers of America, International Union v. U.S. Steel Mining, 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.

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United Mine Workers of America, International Union v. U.S. Steel Mining, Inc., 895 F.2d 698 (10th Cir. 1990).

Opinion

HOLLOWAY, Chief Judge.

This appeal arises from a suit brought under § 301 of the Labor Management Relations Act of 1947, 29 U.S.C. § 185, by the United Mine Workers of America, International Union, District 22, and Local No. 8003 (collectively referred to as “UMWA”), against U.S. Steel Mining Company (“U.S. Mining”) for breach of contract and against Kaiser Steel Corporation (“Kaiser”) for tor-tious interference with contract. The district court granted U.S. Steel’s and Kaiser’s motions for summary judgment, United Mine Workers v. U.S. Steel Mining Co., 636 F.Supp. 151 (D.Utah 1986), and UMWA appeals. For substantially the same reasons stated by the district court, we affirm.

I.

The material facts are not disputed. U.S. Mining is a subsidiary of U.S. Steel Corporation, engaged in the production of coal from mines throughout the United States, including the Geneva/Horse Canyon Mine which is subject to this lawsuit. U.S. Mining is a member of the Bituminous Coal Operators’ Association, Inc., (“BCOA”), a multiemployer bargaining unit made up of many coal operators and associations.

Kaiser is also engaged in the production of coal. Its Sunnyside Mine is located near the Geneva/Horse Canyon Mine. Kaiser purchased the Geneva/Horse Canyon Mine as a means of access to its South Lease properties. Kaiser is not a member of the BCOA.

Employees of the Geneva/Horse Canyon Mine are represented by UMWA. Both UMWA and U.S. Mining are parties to the [700]*7001984 National Bituminous Coal Wage Agreement (“NBCWA”).

The Geneva/Horse Canyon Mine was owned and operated by U.S. Steel or U.S. Mining from 1946 through 1984. U.S. Mining actively produced coal from the mine until October 13, 1982, at which time the majority of the mine employees were laid off. The mine was maintained on idle standby until December 31, 1983, at which time U.S. Mining officially declared the mine abandoned and indefinitely closed. Kaiser purchased the Geneva/Horse Canyon Mine in December 1984. At no time since the sale has Kaiser reopened the mine or engaged employees to produce coal at the mine. Kaiser has performed a limited amount of maintenance and security work there, mainly equipment salvage and recovery and also the provision of guard and security facilities at the mine.

II.

The central issue is whether the obligations imposed by the successorship clause of the NBCWA1 required U.S. Mining to secure the agreement of Kaiser to accept the responsibilities under the NBCWA in connection with the sale of the Geneva/Horse Canyon Mine. The district court correctly focused on whether Kaiser purchased an “operation” within the meaning of the successorship clause. The court held that

a mining “operation,” for purposes of Article I of the 1984 NBCWA, refers to a mine site or facility where active coal mining operations are being conducted. That is, an “operation” connotes a mine that is actively producing coal and operating as a coal mine. Thus, a mine that has ceased to function as an active coal mine is not an “operation,” assuming the mine was closed in good faith.
... There is no suggestion in the record that U.S. Mining closed the mine in bad faith or that the closure was motivated to avoid successorship obligations. Based on these undisputed facts, the court is of the opinion that Kaiser did not purchase an “operation.” Consequently, the successorship clause, Article I of the 1984 NBCWA, did not require U.S. Mining to secure Kaiser’s unconditional agreement to assume U.S. Mining’s obligations under the 1984 NBCWA and Kaiser did not assume such obligations. It follows, then, that the laid-off former employees of the Geneva/Horse Canyon Mine are not entitled to panel rights at Kaiser’s mines.

636 F.Supp. at 153-54 (footnote omitted).

III.

UMWA argues the district court erred by holding that the term “operations” in Article I of the NBCWA refers to mines that are actively producing coal. UMWA says that the trial court’s decision is contrary to federal labor policy regarding suc-cessorship clauses. The court’s decision “read out of the parties’ agreement the preservation of all job rights which pertain to inactive mines.” Brief of Appellants at 2.

In construing the term “operations,” the district court relied on District 6, UMWA v. North American Coal Corporation, No. C-279-242 (S.D.Ohio 1980). In North American, the mine at issue was sold over a year after the mine ceased operating and 11 months after the announcement that the mine would not be reopened. Yol. Ill, Tab A, pp. 2-3. There was no suggestion that the closing of the mine was in bad faith or motivated to avoid the responsibilities of the successorship clause. Id. at 6. Therefore, since there was no sale of an “operation” as contemplated by Article I of the NBCWA, North American did not violate the successorship clause by failing to secure the subsequent buyer’s agreement to [701]*701assume North American’s obligations under the collective bargaining agreement.

The district court’s ruling here is further supported by the recent holding in In re Chateaugay Corp., 891 F.2d 1034 (2nd Cir.1989) that the

term ‘operations’ within the successor-ship clause of Article I of the Coal Wage Agreement does not apply to the sale of a mine that has been permanently closed in good faith by a seller that retains no financial interest in any potential future mining activity at the site, and [where] there is no evidence that the same operations, as when the Agreement was executed, could reasonably be contemplated or conducted.

The UMWA relies heavily on Lone Star Steel Co. v. NLRB, 639 F.2d 545 (10th Cir.), cert. denied, 450 U.S. 911, 101 S.Ct. 1349, 67 L.Ed.2d 335 (1980). The UMWA argues that Lone Star declared that under the successorship clause “employees are assured that the fruits of collective bargaining would survive a change in ownership.” Brief of Appellants at 9 (emphasis added in the brief). This was said to be an important element of federal labor policy. However, Lone Star held that the clause was a mandatory subject of bargaining so that by striking to compel its acceptance, the union did not violate § 8(b)(3) of the National Labor Relations Act. 639 F.2d at 549, 556. The issues were thus decided under the statute, and not as a matter of contract interpretation which is presented here. The purpose of the clause is generally what the UMWA says, but the terms of the obligation agreed on were specific and tied to the sale, conveyance, or other transfer or assignment of “operations covered by this Agreement.” This contract question was not decided by Lone Star. For similar reasons, the reliance of UMWA on Amax Coal Co. v. NLRB, 614 F.2d 872 (3rd Cir.1980), rev’d on other grounds, 453 U.S. 322, 101 S.Ct. 2789, 69 L.Ed.2d 672 (1981), is misplaced.

UMWA asserts, as it did before the district court, that International Union, UMWA v. Eastover Mining Co., 603 F.Supp. 1038 (W.D.Va.1985), supports its argument that U.S.

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