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

663 F. Supp. 2d 1180, 187 L.R.R.M. (BNA) 2479, 2009 U.S. Dist. LEXIS 93353, 2009 WL 3233801
CourtDistrict Court, N.D. Oklahoma
DecidedSeptember 29, 2009
DocketCase 07-CV-316-GKF-PJC
StatusPublished

This text of 663 F. Supp. 2d 1180 (United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers International Union v. Conocophillips Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Oklahoma 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., 663 F. Supp. 2d 1180, 187 L.R.R.M. (BNA) 2479, 2009 U.S. Dist. LEXIS 93353, 2009 WL 3233801 (N.D. Okla. 2009).

Opinion

OPINION AND ORDER

GREGORY K. FRIZZELL, District Judge.

This matter comes before the court on defendant ConocoPhillips Company’s Motion for Summary Judgment [Doc. No. 57], For the reasons set forth below, defendant’s motion is granted.

Defendant operates an oil refinery (the “Refinery”) in Ponca City, Oklahoma. Plaintiff United Steel Workers’ International Union and its Local 13-857 (“Union”) is the collective bargaining representative of certain employees at the Refinery. Under the terms of the parties’ collective bargaining agreement (“CBA” or “Agreement”), the Union filed nine grievances against ConocoPhillips between March and April 2007. The parties undertook the initial steps of the grievance procedure outlined in the CBA, but were unable to settle the grievances. The Union then requested arbitration. The Company refused to arbitrate the grievances on the grounds that they originate under Article 11 of the CBA, which reserves to the Company certain managerial rights not subject to arbitration.

The Union filed this lawsuit to compel arbitration pursuant to § 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185(a). The Company has moved for summary judgment, arguing the grievances are not arbitrable because they relate to matters within the Company’s sole managerial discretion and thus are excluded from arbitration as a matter of law. The Union contends the grievances implicate provisions of the CBA that are subject to arbitration and, therefore, summary judgment is inappropriate.

I. Material Facts

1. ConocoPhillips’ Ponca City Refinery processes domestic and international crude oils delivered by pipeline from throughout North America. The Union is the collective bargaining representative for a majority of the production and maintenance employees at the Refinery. Bargaining unit employees are organized into various work groups known as “progression units.” Each progression unit is comprised of one or more “classifications,” which consist of groups of employees who share the same job position. [Doc. No. 57, Defendant’s Statement of Undisputed Material Facts, ¶ 1, Ex. A, ¶ 3; Ex. B., p. 9, Art. 1; Doc. 62, Plaintiffs Statement of Material Facts in Dispute].

2. The Company and the Union entered into a CBA on March 31, 2002, and thereafter extended the term of the Agree *1183 ment until March 31, 2009. Article 30 of the CBA, “Settlement of Grievances,” sets forth a three-step process for resolving disputes between the Company and the Union. 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, which is arbitration. Article 30 stipulates that “[o]nly differences arising between the Union and the Company relating to interpretation or performance of this Agreement which cannot be adjusted by mutual agreement and have gone through the grievance procedure are arbitrable, except as otherwise provided by this Agreement.” [Doc. No. 57, Defendant’s Statement of Undisputed Material Facts, ¶ 2, Ex B, p. 10, Art. 2, pp. 25-27, Art 30; Doc. No. 62, Plaintiffs Statement of Material Facts in Dispute].

3. Article 11 of the CBA, titled “Management’s Rights,” lists rights and responsibilities reserved solely to management. Article 11 states in pertinent part:

Hiring, maintaining order, and discipline or discharge for just cause are solely the responsibility of Management.
Other responsibilities, solely those of Management are: the assignment of work subject only to the other provisions of this Agreement; the determination and location of any part or all of the physical plant; the determination of the number of persons required to operate and maintain any portion or all of the physical plant; the determination of the machine and tool equipment, products to be manufactured, manufacturing and processing methods, production schedules and engineering; ... the decision to operate, determine the level of operation, or to shut down any portion or all of the plant; the right to relocate any part or all of the plant, this includes the right to discontinue any part or all of the business; the right to transfer any piece of equipment, processing, manufacture, packaging of any product to another company, corporation, partnership, or individual.
It is also solely the responsibility of Management to determine and to redetermine the organization of the Ponca City Refinery including, but not limited to, its location, relocation, types of operation; and to determine the methods, processes and materials to be employed; to discontinue in whole or in part processes or operations or to discontinue their performance by employees of the Refinery or of the Company; to transfer either within or without the Company any work, technology, equipment or process performed by employees covered by this Agreement....
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 with the exception of just cause in the first sentence of Article 11.

[Doc. No 57, Defendant’s Statement of Undisputed Material Facts, ¶ 3, Ex. B, CBA, Art. 11, pp. 11-12; Doc. No. 62, Plaintiffs Statement of Material Facts in Dispute].

4. In 2006, Company management representatives developed a new operating philosophy that called for the addition of approximately eight Area Production Supervisors (“APSs”) to be assigned to different areas of the Refinery. APSs are first-level supervisors who are responsible for providing day-to-day guidance to unit operators and ensuring the various units within the Refinery are operated in a safe and environmentally sound manner in accordance with the Company’s business plan. The Company’s new operating philosophy also called for elimination of the Lead Operator classification, as well as various organizational changes to the Still Cleaner progression unit. [Doc. No. 57, Defendant’s Statement of Undisputed Ma *1184 terial Facts, ¶ 4, Ex. A, Affidavit of Francis S. Cicholski, Jr., ¶¶ 4-5; Doc. No. 62, Plaintiffs Statement of Material Facts in Dispute, ¶ 1]. The Company also decided to eliminate one Tester position in the Control Laboratory progression unit which had been vacated by an employee who was promoted to another position. [Doc. No. 57, Defendant’s Statement of Undisputed Material Fact, ¶ 11, Ex. A, Cicholski Aff., ¶ 6; Doc. No. 62, Plaintiffs Statement of Disputed Material Facts, ¶ 7].

Lead Operation Classification

5. The Lead Operator Classification was eliminated from the East Plant, North Plant, West Plant, South Plant, Coker/Combo and Alky progression units. Previously, lead operators were primarily responsible for maintaining a safe workplace, performing limited administrative duties, and directing and assisting other operators as needed. [Doc. No. 57, Defendant’s Statement of Undisputed Material Facts, ¶ 6, Ex. E, Dep. of Jason Smith, pp. 23-24, Ex. G, Lead Operator Roles and Responsibilities; Doc. No. 62, Plaintiffs Statement of Material Facts in Dispute, ¶1],

6.

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663 F. Supp. 2d 1180, 187 L.R.R.M. (BNA) 2479, 2009 U.S. Dist. LEXIS 93353, 2009 WL 3233801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-steel-paper-forestry-rubber-manufacturing-energy-allied-oknd-2009.