United Steelworkers of America, Afl-Cio, Clc v. Cooper Tire & Rubber Company

474 F.3d 271, 181 L.R.R.M. (BNA) 2193, 2007 U.S. App. LEXIS 908
CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 17, 2007
Docket271
StatusPublished
Cited by57 cases

This text of 474 F.3d 271 (United Steelworkers of America, Afl-Cio, Clc v. Cooper Tire & Rubber Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Steelworkers of America, Afl-Cio, Clc v. Cooper Tire & Rubber Company, 474 F.3d 271, 181 L.R.R.M. (BNA) 2193, 2007 U.S. App. LEXIS 908 (6th Cir. 2007).

Opinion

OPINION

SILER, Circuit Judge.

Cooper Tire & Rubber Company (“Cooper”) and United Steelworkers of America Local 207L (“Local 207L” or the “Union”) were parties to a collective bargaining agreement (“CBA”) containing an arbitration clause. The parties simultaneously executed a side letter that limited company contributions to retiree healthcare benefits. Following a dispute involving one of the side letter’s terms, Local 207L filed suit in federal district court on behalf of the retirees, seeking to compel arbitration of the grievance. Local 207L claimed that the disagreement was arbitrable under the scope of the CBA’s arbitration clause even though the side letter did not contain a separate provision for arbitration. The district court agreed, granting the Union’s motion for summary judgment on the issue of arbitrability. For the reasons that follow, we AFFIRMi the district court’s decision to compel arbitration of the dispute over the side agreement. However, we VACATE the district court’s order certifying the class under Fed.R.Civ.P. 23(b) and REMAND for further proceedings consistent with this opinion.

I.

Cooper, a manufacturer of rubber and tires, has a plant in Findlay, Ohio (the “Plant”). Local 207L and the United Steelworkers of America 1 have been parties to a series of CBAs with Cooper since 1941. Together, the USW and Local 207L represent the Plant’s bargaining unit employees. 2

The Union and Cooper were parties to a CBA, originally effective from November 6, 2000, to October 31, 2003, and extended to February 16, 2004, that governed the terms and conditions of the Plant’s bargaining unit employees (the “2000 Basic Agreement”). Article II of the 2000 Basic Agreement pertains to the grievance procedure, which culminates in arbitration. The relevant language of Article II provides:

A grievance is a complaint, dispute, or controversy between the Company and the Union, in which it is claimed that the Company has failed to comply with an obligation assumed by it under the terms of this Agreement, and which in *274 volves either 1) a dispute as to the facts involved, [or] 2) a question concerning the meaning, interpretation, scope, or application of this Agreement.... Any grievance or dispute which remains unsettled after following the Grievance Procedure outlined above may be appealed to arbitration by the party desiring arbitration.... The decision of the ... [arbitrator shall be final and binding to both parties.

The Union and Cooper were also parties to an Employee Pension and Insurance Agreement, originally effective from November 6, 2000, to October 31, 2003, which also was extended until February 16, 2004 (the “2000 Benefits Agreement”). Article 14 of the 2000 Benefits Agreement contains an appeals provision that provides:

If any dispute ... shall arise ... between the Company and any Employee, Pensioner, or former Employee who has retired during the life of the Agreement ... or between the Local Union and Company as to the interpretation or application of this Agreement, such dispute shall ... be taken up as a grievance beginning with the next step preceding arbitration, and be thereafter handled in accordance with the Grievance Procedure provided in the Basic Labor Agreement.

Article 11 of the 2000 Benefits Agreement covered healthcare benefits for employees and their dependents. Section 11.5 dealt specifically with medical benefits of retired employees and their spouses and dependents. However, neither the 2000 Basic Agreement nor the 2000 Benefits Agreement mentioned the cap on Cooper’s contributions toward retiree healthcare that is outlined in the side letter. 3

As is common in labor agreements, each CBA and all related agreements between Cooper and the Union were included in a collective bargaining “packet.” Any side agreements between Cooper and the Union were also included. Since 1991, every packet has contained a side letter that caps Cooper’s annual contributions toward retiree healthcare benefits (the “FASB Letters” or “Side Letters”). 4 The FASB Letters were drafted in response to the Financial Accounting Standards Board’s implementation of FAS-106, in 1991. 5 Cooper’s implementation of the FASB Letters was consistent with accounting practices throughout the rubber industry. Cooper and the Union disagree about whether the FASB Letters were “negotiated” or were the unilateral decision by Cooper. According to the Union, the fact that there was a signature line for the Union president which stated “Agreed” illustrates that the FASB Letters were a negotiated agreement. Cooper contends that its decision to implement the FASB Letters was unilateral and would have *275 been carried out with or without the Union’s consent.

The 2000 FASB Letter provides:

The Company shall provide benefits under the Basic Medical Benefits Program, and the Major Medical Benefits Program as set forth in the Pension and Insurance Agreement dated November 6, 2000 for retirees and their dependents subject to the following limitations:
1. The average annual Company contributions to be paid for all health care benefits per retired employee (including their surviving spouse) who retires on or after November 24, 1991, October 17, 1994, November 12, 1997, and November 6, 2000 shall not exceed $9,800 for retirees (including surviving spouses) under age 65 and $8,850 for retirees (including surviving spouses) over age 65. The age of any such retiree or surviving spouse will be determined as of each January 1 for the entire year.
2. If the average annual cost of health care benefits for each such group described in Paragraph 1 above exceeds the specified amount, the cost in excess of that amount shall be allocated evenly to all retired employees (including surviving spouses) in such group.
3. Notwithstanding the foregoing, no retired employee or surviving spouse shall be obligated to contribute for such excess health care cost until January 1, 2004.
4. The average annual cost of health care benefits for each group shall be determined by taking the total annual health care payments made by the Company for each group separately and dividing each amount by the number of retired employees (including surviving spouses) in such group as of January 1 of each year.
5.The parties agree that the amount of the maximum average annual Company contributions for health care benefits as described in Paragraph 1 above shall be considered a mandatory subject of Collective Bargaining in any subsequent negotiations. It is further agreed by the parties that this issue shall not be influenced by or bound to any previous or future Board or Court decisions.

Notably, the FASB Letters do not contain any language relating to arbitration or other grievance procedures should a dispute develop.

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Cite This Page — Counsel Stack

Bluebook (online)
474 F.3d 271, 181 L.R.R.M. (BNA) 2193, 2007 U.S. App. LEXIS 908, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-steelworkers-of-america-afl-cio-clc-v-cooper-tire-rubber-ca6-2007.