United Paperworkers International Union v. International Paper Co.

920 F.2d 852, 136 L.R.R.M. (BNA) 2223, 1991 U.S. App. LEXIS 197, 1991 WL 30
CourtCourt of Appeals for the Eleventh Circuit
DecidedJanuary 10, 1991
DocketNo. 89-7581
StatusPublished
Cited by20 cases

This text of 920 F.2d 852 (United Paperworkers International Union v. International Paper Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Paperworkers International Union v. International Paper Co., 920 F.2d 852, 136 L.R.R.M. (BNA) 2223, 1991 U.S. App. LEXIS 197, 1991 WL 30 (11th Cir. 1991).

Opinion

EDMONDSON, Circuit Judge:

In this labor-management dispute, defendant International Paper Company (“the Company”) appeals a decision by the district court ordering arbitration of a severance pay dispute arising after the expiration of a collective bargaining agreement. The district court held that a binding, interim contract that included an obligation to arbitrate was created when, after the parties had reached a bargaining impasse in negotiations for a new agreement, the Company unilaterally implemented its final offer and plaintiff United Paperworkers International Union (“the Union”)1 agreed to continue working and not to strike without a ten-day notice. We AFFIRM the district court’s grant of the Union’s motion for summary judgment on the arbitrability of the severance pay dispute under a binding, interim contract between the Company and the Union.

I.

The facts are largely undisputed. The Union has been certified since at least the early 1940s as the bargaining representative for the production and maintenance employees of the Company paper mill in Mobile, Alabama. When this lawsuit was filed, the most recent collective-bargaining agreement (“the Agreement”) between the Union and the Company was effective from June 1,1983, to May 31,1986. By virtue of an automatic extension provision, the Agreement did not expire until February 26, 1987.

The basic format for the new collective-bargaining agreement negotiations, which started in October 1986, followed a pattern established more than forty years earlier and provided that a party desiring a new practice or change from the existing collective-bargaining agreement should identify the change or proposed amendment. If existing provisions were not the subject of a specific proposal for change or amendment, they were presumed to be acceptable as written and would become part of the new agreement. This practice was reaffirmed during the 1986-87 negotiations between the Company and the Union.

Relevant to this appeal, the provision on arbitration was the subject of a Union proposal for change. The Union asked that the new collective-bargaining agreement name a different national arbitration service to settle disputes between the Company and the Union. The Union negotiators specifically stated, however, that they were not proposing changes to the substance of the arbitration clause. On February 18, the parties agreed on a process for selecting arbitrators and specifically reaffirmed that there was agreement on the arbitration clause in its entirety.

On February 10,1987, the Company gave the Union a ten-day notice of termination of the Agreement, to be effective February 21. By February 20, most areas of contention had been resolved. The principal area of dispute that remained was over the Company’s proposal to abolish no-work holidays, premium pay on Sundays, and premium time for working holidays. On February 20, the Company made its “final offer,” which included these Company-proposed changes, a ratification bonus, and a two-percent per-hour wage increase for certain employees. The Company’s offer included the agreed-upon changes to the process of selecting arbitrators and proposed no changes to the substance of the arbitration clause in the existing Agreement. The Company gave the Union until midnight, February 26, to ratify the proposal.

According to the affidavit of chief Union negotiator Donald Langham, the Company also notified the Union at a February 20 meeting that the Company intended to implement unilaterally the Company’s final offer if it was not ratified by March 6. Though unable to recall the exact words of the Union’s response to the Company’s [854]*854plan to implement this final offer, Lang-ham’s uncontradicted testimony was that the Union negotiators “specifically told the company that we would continue working under the proposal they were going to implement.” Langham further testified that it was also clearly understood by the parties that the final offer to be implemented included the following:

(1) the items agreed upon during negotiations which included the arbitration clause and severance pay clause, (2) the items in the 1983-1986 contract which were not the subject of a desire for change or amendment by either party, and (3) the items proposed by the company on which we did not have an agreement.

With the encouragement of the Union negotiating team, the Union membership rejected the Company’s final offer by majority vote on February 26. On February 27, the Company wrote the Union and the employees, expressing disappointment over the rejection of its proposal. The letter also announced the following planned action by the Company:

[Sjince the contract has been officially terminated, it is the Company’s intention to implement the terms of its offer of February 20, 1987, with the exception of the aforementioned ratification bonuses and the 2% wage increase provided for certain employees in the first year of the contract, such implementation to take place effective at 3:00 P.M., Friday, March 6, 1987.
We sincerely request that you take whatever action is necessary to obtain ratification of a new labor agreement prior to 3:00 P.M., March 6, 1987.

On March 2, the Company again wrote the Union and the employees, offering a slightly modified proposal and reaffirming the Company’s intent to implement its February 20 offer unilaterally if a contract was not ratified by March 6. On March 6, the Union membership, again encouraged by the Union negotiating team, voted to reject the Company’s latest proposal. So, the Company implemented its “final offer” of February 20, with the only identified exceptions being the ratification bonuses and the two-percent wage increase. The employees continued to work under the implemented final offer, and the Union announced no plans to strike.

On March 12, the Company informed the Union and the employees in writing that if no contract was ratified by March 21, the Company intended “to temporarily replace” all employees working on jobs represented by the Union until an agreement was reached. According to the affidavit testimony of Union negotiator Langham, the Union responded to the Company’s planned lockout by again indicating that it had no plans to strike and would work under the implemented final offer pending further negotiations. The Company’s final offer for a new collective-bargaining agreement was rejected again by Union negotiators on March 18; and the lockout began on March 21, when Company security guards escorted more than 1,000 employees out of the mill.

The grievances at issue in this lawsuit were filed on May 5 and claimed under the 1983-86 Agreement that the Company owed the laid-off employees severance pay for removing them from their jobs in the March 21 lockout. Nothing in the grievance and arbitration procedure outlined in the expired Agreement limits the kinds of disputes subject to arbitration. The Company responded by denying the severance pay grievances and stating that “this issue is not arbitrable due to the expiration of the Labor Agreement.”

The Union brought this action, claiming that the Company had a contractual duty to arbitrate the severance pay dispute, despite the fact that the lockout occurred after the 1983-86 Agreement had expired. The Union has offered two alternative theories to support this contention: (1) the Company’s obligation to arbitrate under the 1983-86 Agreement survived its expiration,2 and (2) the Company bound it[855]

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No. 89-7581
920 F.2d 852 (Eleventh Circuit, 1991)

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Bluebook (online)
920 F.2d 852, 136 L.R.R.M. (BNA) 2223, 1991 U.S. App. LEXIS 197, 1991 WL 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-paperworkers-international-union-v-international-paper-co-ca11-1991.