United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers International Union v. Conocophillips Co.

420 F. App'x 827
CourtCourt of Appeals for the Tenth Circuit
DecidedApril 13, 2011
Docket09-5143
StatusUnpublished
Cited by1 cases

This text of 420 F. App'x 827 (United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers International Union v. Conocophillips Co.) 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 Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers International Union v. Conocophillips Co., 420 F. App'x 827 (10th Cir. 2011).

Opinion

ORDER AND JUDGMENT *

TIMOTHY M. TYMKOVICH, Circuit Judge.

This is an appeal from the district court’s denial of arbitration for a number of grievances arising from various organizational changes made by ConocoPhillips in its oil refinery in Ponca City, Oklahoma. The United Steel Workers’ International Union and its Local 13-857 challenged these changes as violating the Collective Bargaining Agreement (CBA) between the Union and ConocoPhillips, and sought an order to compel arbitration of its grievances. The Union now appeals the district court’s finding that these grievances are exempt from arbitration under the CBA. We conclude the grievances concerning the elimination of jobs as part of the reorganization are exempt from arbitration. But we also conclude several of the grievances regarding work reassignments are eligible for arbitration.

Exercising jurisdiction pursuant to 28 U.S.C. § 1291, we AFFIRM in part and REVERSE in part.

I. Background

The Union is the collective bargaining representative for many employees of this ConocoPhillips oil refinery. Union employees are organized into “progression units” composed of one or more job positions, or “classifications.”

ConocoPhillips and the Union are party to a CBA that covers a wide range of matters pertaining to wages, hours, discipline, and other conditions of employment. *829 It also lays out a three-step process for resolution of disputes that arise under the CBA. The first two steps involve discussions between Union representatives and escalating levels of management within ConocoPhillips. If the parties cannot resolve a grievance after the first two steps of the process, either party may advance the grievance to the final step, arbitration. The CBA broadly provides that “differences arising between the Union and the Company relating to interpretation or performance of this Agreement ... are arbitrable, except as otherwise provided by this Agreement.” App. at 284.

But not all grievances are arbitrable. Article 11 of the CBA, entitled “Management’s Rights,” commits certain decisions to ConocoPhillips’s discretion:

Other responsibilities, solely those of Management are: the assignment of work subject only to the other provisions of this Agreement ... the determination of the number of persons required to operate and maintain any portion or all of the physical plant ... the decision to operate, determine the level of operation, or to shut down any portion or all of the plant .... to determine and to redetermine the organization of the Ponca City Refinery ... to determine the methods, processes and materials to be employed; to discontinue in whole or in part processes or operations.

Id. at 260 (emphasis added). Article 11 further provides that disputes arising from these decisions are exempt from arbitration: “Grievances originating under Article 11 are subject to the grievance procedure but cannot be submitted to arbitration; and no arbiter has the authority to rule on Article 11____” Id. (emphasis added).

In 2006, ConocoPhillips made several organizational changes in the refinery to improve operating efficiencies. It eliminated a position known as the Lead Operator, which was primarily responsible for maintaining a safe workplace, performing limited administrative duties, and assisting other operators as needed. The bulk of the duties previously performed by the Lead Operator were then redistributed to the existing Unit Operator position. In addition, some supervisory duties were reassigned to the newly created Area Production Supervisor (APS) position, a nonunion position that provides day-to-day guidance to Unit Operators to ensure operations are safe, environmentally sound, and consistent with the company business plan. ConocoPhillips did not terminate the twenty-five Lead Operators whose jobs were eliminated, but rather moved them into Unit Operator or APS positions. After the reorganization, the Union filed multiple grievances contending the elimination of the Lead Operator position and the reassignment of work violated a number of provisions of the CBA.

In addition to the elimination of the Lead Operator position, ConocoPhillips also reorganized the Still Cleaner unit. Workers in this unit are responsible for cleaning out the coke still equipment between batch operations. In the past, cleanouts were performed by a three-member crew composed of a Cleaner, a Sluicer, and a Helper. With the stated purpose of improving safety, ConocoPhillips merged these three positions into one general Still Cleaner position, and assigned two Still Cleaners to each cleanout. Again, ConocoPhillips did not terminate affected employees, but instead transferred them to other positions in the refinery. Relatedly, ConocoPhillips reassigned some aspects of the cleanout preparation work previously performed by the eliminated positions to the newly created Drum Operator position within the Coker/Combo unit. This position is now filled by Unit Operators in the Coker/Combo unit who rotate through the position on a weekly basis. The Union *830 filed grievances challenging the elimination of the three original Still Cleaner positions and the reassignment of work as a violation of multiple provisions of the CBA.

At about the same time, ConocoPhillips eliminated a Tester position in the Control Laboratory unit that was vacated when an employee was promoted to another position. ConocoPhilips asserts improved efficiencies as a result of the reorganization made the individual position unnecessary. The Union also submitted grievances over the elimination of the Tester position and the alleged reassignment of work as violating several provisions of the CBA.

ConocoPhillips denied each of the Union’s grievances at the first and second steps of the dispute resolution procedure, leading the Union to demand arbitration. ConocoPhillips declined to arbitrate on the theory that each of the grievances arises under the management rights section of Article 11 and is therefore exempt from arbitration.

The Union filed this action to compel ConocoPhillips to arbitrate the grievances. The district court granted ConocoPhillips’s motion for summary judgment after concluding Article 11 expressly exempts the Union’s grievances from arbitration. This appeal followed.

II. Discussion

On appeal, the Union challenges the dismissal on two grounds. First, the Union argues the district court improperly considered the merits of the grievances in addressing their arbitrability under the CBA. And second, it contends the district court erred in concluding the grievances were not arbitrable.

We review a district court’s grant of summary judgment de novo, applying the same legal standard used by the district court. See Byers v. City of Albuquerque, 150 F.3d 1271, 1274 (10th Cir.1998).

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Bluebook (online)
420 F. App'x 827, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-steel-paper-forestry-rubber-manufacturing-energy-allied-ca10-2011.