United Steelworkers of America v. Fermet Reclamation, Ltd.

627 F. Supp. 1213, 1986 U.S. Dist. LEXIS 30057, 112 Lab. Cas. (CCH) 11,491
CourtDistrict Court, N.D. Illinois
DecidedJanuary 24, 1986
Docket85 C 7466
StatusPublished
Cited by9 cases

This text of 627 F. Supp. 1213 (United Steelworkers of America v. Fermet Reclamation, Ltd.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois 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 v. Fermet Reclamation, Ltd., 627 F. Supp. 1213, 1986 U.S. Dist. LEXIS 30057, 112 Lab. Cas. (CCH) 11,491 (N.D. Ill. 1986).

Opinion

MEMORANDUM OPINION AND ORDER

SHADUR, District Judge.

United Steelworkers of America, AFL-CIO (“Union”) has sued Fermet Reclamation, Ltd. (“Fermet”) to compel arbitration of two labor grievances under Labor Management Relations Act § 301, 29 U.S.C. § 185 (“Section 301”). Now both litigants have moved for summary judgment under Fed.R.Civ.P. (“Rule”) 56. For the reasons stated in this memorandum opinion and order, Union’s motion is granted and Fermet’s is denied.

Facts 1

In late May 1984 Fermet employee Jerry Simpson (“Simpson”) underwent surgery at *1214 a hospital in Joliet, Illinois. Though he had expected the cost of that surgery to be paid through Fermet’s group health insurance plan, on June 21, 1984 2 Fermet’s insurance carrier wrote Simpson (Ex. 1-1) 3 coverage had been denied. 4

On July 16 Union filed a grievance with Fermet on Simpson’s behalf, saying it was Fermet’s responsibility under the Union-Fermet collective bargaining agreement (the “CBA”) to provide Simpson with health insurance coverage. That grievance (the “Insurance Grievance”) was filed on a printed “Grievance Report” form, signed by Simpson and two Union representatives (Ex. C). Fermet President Dennis Bloom (“Bloom”) denied the Insurance Grievance that same day, using the “Answer of Company Representative” space provided on the back of the form (id). No reason for the denial was specified.

On August 9 (24 days later) Union Sub-District Director Earl Schroeder (“Schroeder”) wrote Bloom (Ex. D, emphasis in original):

As per the Labor Agreement between the parties, you are hereby notified that [Union] is appealing your answer on Jerry Simpson who was denied group insur-anee as per Agreement Article XIV, Section 1.
I would appreciate your calling me to set up a meeting on the above subject which has to be done in seven (7) days after your decision in step (b), unless a longer period is mutually agreed upon.

Bloom did not respond.

On either August 14 or 15 Simpson was cleared for return to work by his doctor. When he reported for duty, he claims Bloom told him “he would not be allowed to return to work until the insurance coverage disputes were resolved” (see Ex. J at 3). 5 Then on August 16 Bloom wrote Schroeder stating his “understanding that no contract exists with [Union]” (Ex. E) and:

Therefore, no terms or provisions of that document can have application.

Union next filed another grievance (the “Lockout Grievance”) September 12 (Ex. F), protesting Simpson’s having been “locked out” (not being allowed back to work). Five days later Bloom sent Union a denial of the Lockout Grievance (id.) as not having been filed within five days of the triggering event — Fermet’s August 14 or 15 refusal to allow Simpson to return to work. 6

*1215 Schroeder then referred the matter to Union counsel Schmelling, who on October 24 wrote Bloom about his refusal to move further on the Insurance and Lockout Grievances, concluding (Ex. G):

At your earliest convenience, please furnish me with a written explanation of your company’s position with respect to these matters. Failure on your part to respond to this letter within two weeks of its receipt will leave the Union with little alternative but to initiate legal proceedings seeking to protect Mr. Simpson's contractual and statutory rights and to enforce the employer’s bargaining obligation under the National Labor Relations Act.

That letter resulted in a November 15 meeting between Union and Fermet, attended by Schmelling, Schroeder, Bloom and Thomas. Some events of that meeting are disputed, but two matters are agreed-upon results of the meeting:

1. Fermet acknowledged the CBA was in effect.
2. Provision was made for Simpson to return to work (and he did so November 20 or 25). 7

What the parties dispute is the bargaining stance Fermet took at the meeting: Bloom Aff. 1116 says “we indicated that Fermet would not settle or arbitrate the [Insurance] grievance,” while Schroeder says (Aff. ¶ 12):

At the November 15, 1984 meeting, no demand for arbitration was made and none was rejected. The meeting ended on the understanding that both parties would attempt to check further into the facts surrounding Mr. Simpson’s griev-anees in order to reach satisfactory settlement.

Thus Fermet R.Mem. 6 accurately characterizes as an “issue of fact”:

Whether on or before November 15,1984 meeting between the parties and their counsel, Fermet “agreed to pursue further attempts to resolve” the July 15, 1984 grievance. 8

However, as the later text discussion reflects, Fermet is wrong in labeling that issue “material” — for on the current motions it is not “outcome-determinative” (except in a sense the parties’ submissions to this Court did not focus on at all 9 ).

On March 25, 1985 Schmelling phoned Thomas to request arbitration of the grievances (Union R.Mem. 8). That request was followed up by an April 5, 1985 written demand for arbitration (Ex. J). Fermet’s May 6, 1985 response (Ex. L) agreed to arbitrate a third grievance (arising out of Simpson’s eventual discharge), but said as to the two involved here:

1. Fermet “maintains its refusal to arbitrate” the Insurance Grievance because:
(a) Union had failed to comply with the CBA’s timetable, and
(b) as a substantive matter, the question whether Fermet had met its contractual obligation to provide health insurance was “simply not an arbitra-ble matter.”
2. Though the Lockout Grievance was also not filed within the CBA-prescribed time period, Fermet would agree to arbitrate the timeliness question. But if Union should prevail as to timeliness, Fer-met would insist the arbitration of the *1216 merits must proceed before another arbitrator.

There matters stood until Union filed this action August 26, 1985.

CBA Provisions

CBA Art. V sets out the grievance procedure established by the parties (Ex. A at 4-5):

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
627 F. Supp. 1213, 1986 U.S. Dist. LEXIS 30057, 112 Lab. Cas. (CCH) 11,491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-steelworkers-of-america-v-fermet-reclamation-ltd-ilnd-1986.