844 F.3d 627
7th Cir.2016Background
- Employee welfare funds sued RiverStone divisions to collect contributions owed under a 2010 collective bargaining agreement (CBA) that ran through 2015 after RiverStone stopped payments following union decertifications in 2013.
- Three nearly identical suits were filed (one per RiverStone division); the court treated them as one case against RiverStone.
- The CBA required RiverStone to contribute a specified dollar amount to welfare funds for each hour an employee received wages “under the terms of this Agreement.”
- In 2013 employees in each division voted to decertify Local 150, after which RiverStone ceased contributions to the welfare funds.
- Funds sued under 29 U.S.C. § 1145 (ERISA/Multiemployer Pension Plan Amendments Act) for delinquent contributions through the CBA’s 2015 expiration; district courts granted summary judgment for the funds.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether CBA contribution obligation survives union decertification | Funds: CBA created a binding contribution obligation enforceable by funds; decertification does not relieve employer | RiverStone: Decertification voided CBA as enforceable and ended obligation | Held for funds: obligation survived; decertification did not eliminate funds’ enforcement right |
| Whether "expiration" means unenforceability upon decertification or temporal lapse | Funds: expiration means the five-year term ending in 2015; employer obligated until that date | RiverStone: expiration occurred upon decertification when union could no longer enforce | Held for funds: expiration means lapse by time; CBA remained in effect until 2015 for purposes of employer obligation |
| Whether employees were required to be "working under the terms of the Agreement" for contributions to be owed after decertification | Funds: for benefit-law purposes employees remained covered and funds budgeted on that basis; employer still owes contributions | RiverStone: after decertification employees no longer worked under the CBA, so contributions ceased | Held for funds: phrase construed to impose a five-year contribution obligation independent of decertification |
| Whether LMRA §186(c)(5) forbids payments to trust funds not established by current representative | Funds: funds were validly established by Local 150 when it was the representative; later decertification does not undo that fact | RiverStone: payments to funds not established by current representative are forbidden | Held for funds: statute inapplicable—the funds were established by the employees’ representative when created |
Key Cases Cited
- Central States, Southeast & Southwest Areas Pension Fund v. Schilli Corp., 420 F.3d 663 (7th Cir. 2005) (CBA-language can preserve employer contribution obligations after decertification; plans may sue for delinquent contributions under MPPAA)
- Central States, Southeast & Southwest Areas Pension Plan v. Gerber Truck Service, Inc., 870 F.2d 1148 (7th Cir. 1989) (ERISA requires plans to pay promised benefits even if expected employer contributions cease; obligation to contribute does not depend on existence of valid CBA)
AFFIRMED.