United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers International Union v. Wise Alloys, LLC

642 F.3d 1344, 51 Employee Benefits Cas. (BNA) 2313, 190 L.R.R.M. (BNA) 3153, 2011 U.S. App. LEXIS 11655
CourtCourt of Appeals for the Eleventh Circuit
DecidedJune 9, 2011
Docket10-11961, 10-13596
StatusPublished
Cited by16 cases

This text of 642 F.3d 1344 (United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers International Union v. Wise Alloys, LLC) 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 Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers International Union v. Wise Alloys, LLC, 642 F.3d 1344, 51 Employee Benefits Cas. (BNA) 2313, 190 L.R.R.M. (BNA) 3153, 2011 U.S. App. LEXIS 11655 (11th Cir. 2011).

Opinion

*1347 COX, Circuit Judge:

Three unions representing different groups of employees of Wise Alloys, LLC (“Wise”) sued Wise under § 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185, seeking to enforce an arbitration award. The district court granted summary judgment in favor of the unions, enforcing the award. Wise appeals. We affirm.

I. BACKGROUND

Wise operates an aluminum rolling mill and related facilities in Muscle Shoals and Sheffield, Alabama. The Plaintiffs are: the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union AFL-CIO-CLC; the International Union of Operating Engineers, Local 320; and the United Brotherhood of Carpenters and Joiners, Local 1209 (collectively, “the Unions”). The Unions represent different groups of employees at Wise’s Muscle Shoals and Sheffield plants. In November 2007, the Unions entered into materially identical collective bargaining agreements with Wise (“the Agreements”). The Agreements provide for a grievance procedure that includes final and binding arbitration.

Each Agreement includes identical language regarding a quarterly Cost of Living Adjustment (“COLA”). The COLA provision provides, in relevant part:

Section 2 Cost of Living Adjustment: Effective on each adjustment date, a cost-of-living-adjustment will be made to the current cost of living allowance. The cost of living allowance will be equal to l<t per hour for each full 0.3 of a point change in the Consumer Price Index calculation.
Section 3 Effective on each adjustment date, the cost-of-living allowance as determined above shall be applied exclusively to offset health insurance costs for hourly-rated employees. The cost-of-living adjustments under this paragraph shall not be applied to employees’ hourly wage rates.

(Dkt. 1, Complaint at ¶ 10.) In negotiating these Agreements, the parties agreed to increase the employees’ health insurance premiums from $2.50 to $20.00 per week with annual $5.00 increases up to $45.00 per week through November 2012. In connection with this change, the parties agreed that the COLA would be applied to offset these premiums. (Dkt. 1-1, Arbitrator’s Award at 13.)

II. FACTS AND PROCEDURAL HISTORY

In the months following ratification of these 2007-2012 labor agreements, a dispute arose over how the COLA was to be calculated. Wise was calculating the COLA on a weekly basis and maintained that the adjustment was only $0.08 per week. Wise maintained that the Agreements contained a typographical error and that the COLA should be calculated on a weekly basis, not on the hourly basis indicated in the Agreements. The Unions disagreed with Wise’s calculations and complained that the adjustment should be calculated at $3.20 per week ($0.08 x 40 hours per week), consistent with Section 2 of the COLA provision. The parties submitted this dispute to arbitration on July 23, 2008. All parties agree that this dispute was subject to binding arbitration. (Dkt. 1, Complaint at 4, ¶ 15; Dkt. 6, Answer, Affirmative Defense and Counterclaims at 5, ¶ 15.) The question for the arbitrator was whether the COLA should be calculated on an hourly basis or a weekly basis to offset the employees’ health insurance premiums. In terms of dollars and cents, the dispute was whether Wise’s contribution to the employees’ *1348 share of health insurance premiums was $3.20 per week per employee, based on a workweek of 40 hours (the Unions’ position) or $0.08 per week per employee (Wise’s position).

At the arbitration hearing Wise asserted that there was a scrivener’s error in drafting the COLA language of the Agreements, with the result that the words “per hour” were placed in the COLA clause rather than the correct words “per week.” But Wise did not introduce any testimony or evidence at the hearing that a scrivener’s error had occurred. (Dkt. 1-1, Arbitrator’s Award, at 14-15.) Instead, in a post-hearing brief filed with the arbitrator, Wise asserted that the Unions collaborated to undermine Wise’s scrivener’s error defense by calling witnesses during the hearing who intentionally gave false testimony in an effort to convince the arbitrator to issue an award against Wise. Wise alleged in its post-hearing brief, as it does on this appeal, that the Unions also submitted a fabricated document alleged to have been drafted in the presence of two Wise managers that “purported to reflect an admission by Wise management that the Unions’ version of events was true and accurate, while, in fact, [a union representative had] created the document much later and solely for the purposes of carrying out the Unions’ deceptive scheme.” (Dkt. 6, Answer, Affirmative Defense, and Counterclaims at 10, ¶ 11.) Wise contends that, as a result of the Unions’ deception and false testimony, the arbitrator ruled against Wise on November 21, 2008, ordering Wise to pay the COLA provision on an hourly, rather than weekly, basis.

Wise raised the issue of the Unions’ deceit at arbitration. The arbitrator found it significant that Wise drafted the disputed COLA language and that Wise alone, rather than the Unions, failed to include language reflecting the alleged intent that the COLA payment be calculated on a weekly basis. Additionally, the arbitrator found Wise’s position on the interpretation of the COLA provision untenable because he did not believe that the Unions would have agreed to increases in their contribution to their healthcare premiums (from $2.50 per week to $20.00 per week, eventually rising to $45.00 per week) had Wise’s position on the COLA been correct. (Dkt. 1-1, Arbitrator’s Award at 13.) Furthermore, the arbitrator concluded that the Unions’ testimony was irrelevant given the unambiguousness of the relevant language of the Agreements:

[Wise’s] Brief argued that the Union’s deceit confirms that this was a “simple editing oversight.” ... Even if the Union gave testimony that was not believable or contradictory how does that change the scrivener error? ... The language of the document is the most objective clue as to the meaning of the COLA clause. [Wise’s chief negotiator’s] testimony confirms this interpretation. He was asked whether the CBA states that COLA would be anything other than one cent per hour. His answer was; “The language is what the language is.” ... [He] admitfs] that the term weekly does not appear in the cost of living article. The Company had full opportunity to place in the COLA clause language that reflected its belief on how the clause was to be applied. It did not do so.... [The Company] drafted the language of the new COLA clause. The language in Article XXX Cost of Living Section 2 and Section 3 when read together mean that all hourly rated employees regardless of the number of hours worked are entitled to receive cost of living adjustment equal to $0.08 per hour to offset health insurance costs.

(Dkt. 1-1, Arbitrator’s Award, at 15.) The arbitrator entered a written award in favor *1349 of the Unions on November 21, 2008. Wise did not seek to vacate the arbitrator’s award but chose instead to ignore it.

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Bluebook (online)
642 F.3d 1344, 51 Employee Benefits Cas. (BNA) 2313, 190 L.R.R.M. (BNA) 3153, 2011 U.S. App. LEXIS 11655, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-steel-paper-forestry-rubber-manufacturing-energy-allied-ca11-2011.