United States Postal Service v. National Rural Letter Carriers Ass'n

535 F. Supp. 1034, 110 L.R.R.M. (BNA) 3389, 1982 U.S. Dist. LEXIS 11773
CourtDistrict Court, N.D. Ohio
DecidedMarch 15, 1982
DocketNo. C80-1613
StatusPublished
Cited by1 cases

This text of 535 F. Supp. 1034 (United States Postal Service v. National Rural Letter Carriers Ass'n) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Postal Service v. National Rural Letter Carriers Ass'n, 535 F. Supp. 1034, 110 L.R.R.M. (BNA) 3389, 1982 U.S. Dist. LEXIS 11773 (N.D. Ohio 1982).

Opinion

MEMORANDUM

BEN C. GREEN, Senior District Judge:

In this dispute between the National Rural Letter Carriers Association (Association) and the United States Postal Service (USPS), an arbitrator has ruled that a rural mail route in Hope, North Dakota be transferred from an independent contractor to a postal letter carrier. The USPS has appealed, claiming that the arbitrator exceeded his authority.

This Court has jurisdiction to consider this matter pursuant to 39 U.S.C. §§ 409(a), 1208(b); 9 U.S.C. § 10.

Both parties have moved for summary judgment pursuant to Rule 56, Federal Rules of Civil Procedure. The Court finds that there is no genuine dispute as to any material fact and that the USPS is entitled to a judgment as a matter of law.

As shown by the arbitrator’s award and by the record before the arbitrator, the facts are as follows.

The town of Hope is located in east central North Dakota, about 100 miles northwest from Fargo and near the Maple River, a tributary of the Missouri River. The Postal Service’s office in Hope serves patrons in the nearby area of Luverne. One of the delivery routes in Luverne was served by a letter carrier employed by the USPS who had served the subject route for 27 consecutive years. The letter carrier retired in September, 1978.

Upon learning of the carrier’s impending retirement, and in accordance with postal regulations, the local postmaster evaluated the route to determine whether it should be converted to a contract or “star route.” If converted, the “star” route would no longer be served by a postal service employee, but rather by an independent contractor. The Association’s interest in the matter arises because any independent contractor would not be an Association member.

The local postmaster determined that the route in question was 128.24 miles in length, and that it served 127 families. The arbitrator found these determinations to be accurate. Because the route thus has less than one family per mile, a threshhold standard for conversion, the postmaster then performed a cost analysis. He found that the cost of the salary and fringe benefits [1036]*1036for the carrier, plus the expense incurred in the use of a half-ton pickup truck on the largely unpaved route, approximated $25,-524 per annum. He projected that service of the route by a contract carrier, using the most recent contract rate, would be $13,869. The postmaster thus found that conversion would yield an approximate $11,655 in annual savings.

The postmaster made these disclosures to his superiors, appending, however, his recommendation that the route remain a letter carrier route because he felt a letter carrier would provide better service. He was overruled. Bids were solicited, and a contract was let. The substitute carrier who had been serving the route was relieved of his duties, and a contract carrier began service in March, 1978.

The Association filed a grievance with the USPS, challenging the determination to convert. The grievance was denied at each step, and the matter proceeded to arbitration.

After a hearing, the arbitrator granted a provisional award to the Association. After analyzing the relevant postal regulations which the parties agreed were part of their contract, the arbitrator found that the USPS could not convert a rural route from a letter carrier to contract delivery unless the public interest was thereby served. The arbitrator found that while cost savings were a proper factor upon which the USPS could base a decision, the level and quality of service were also prime concerns. He found that the USPS had properly converted the route, but that customer complaints required a redetermination.

At the arbitral hearing, the arbitrator admitted, over objection, the testimony of two patrons along the subject route. The patrons testified that the mail service they received deteriorated substantially after conversion to contract delivery. They complained that mail was late, unreliable, and was frequently misdelivered. One witness testified that the people along the rural route made a point of attending church each Sunday so that they could exchange misdelivered mail with their neighbors. The witnesses also presented a petition protesting the quality of service, signed by 66 patrons along the route. The arbitrator admitted the petition into evidence, over objection, “for whatever it is worth.”

In his provisional award, the arbitrator ordered the USPS to investigate the complaints from customers, to determine whether the complaints were valid and whether the public interest was being served, and to redetermine whether the route should be served by contract delivery. The arbitrator retained jurisdiction in the event the parties disagreed after such an evaluation and redetermination.

The parties did disagree and returned the matter to the arbitrator. The arbitrator heard more evidence and issued a final, or supplemental, award, again in favor of the Association.

In the supplemental award, the arbitrator noted that the customer service representative of the USPS who conducted the investigation found that half the families on the route continued to have complaints about service in late 1979. The final report to the arbitrator from the USPS was prepared by the customer service director in Fargo, who noted that 14 of the 120 families on the route said their mail continued to be misdelivered, that the erratic delivery schedule continued, that an “unacceptable” vehicle was the cause of the erratic delivery, and that there was a general deterioration of mail service on the route. The Fargo director of customer services concluded, however, that the USPS was providing “adequate” service via the contract carrier, that the cost savings were substantial, and that therefore the public interest was served. The USPS declined to convert the route back to service by letter carrier.

Without disturbing his earlier finding that the route was correctly converted, the arbitrator found that the poor service on the route after conversion did not serve the public interest. He directed the USPS to reconvert the route to letter carrier service at the earliest time possible “without financial loss” to the USPS. This appeal followed. [1037]*10376,1979); General Drivers, Warehousemen & Helpers, Local 89 v. Hays and Nicouln, Inc., 594 F.2d 1093 (C.A. 6, 1979).

The parties agree, generally, as to the law to be applied in this case. Arbitration is the preferred method of resolving labor disputes. To that end, judicial review of an arbitrator’s decision is very limited. A court may not review an arbitrator’s factual findings or decisions on the merits. It may only inquire into the arbitrator’s “authority to make the award he made.” United Steelworkers v. Warrior & Gulf Mfg. Co., 363 U.S. 574, 582, 80 S.Ct. 1347, 1352, 4 L.Ed.2d 1409 (1965). Fundamental to deference to an arbitrator, however, is the arbitrator’s adherence to the limits of his authority. In United Steelworkers v.

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Bluebook (online)
535 F. Supp. 1034, 110 L.R.R.M. (BNA) 3389, 1982 U.S. Dist. LEXIS 11773, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-postal-service-v-national-rural-letter-carriers-assn-ohnd-1982.