Lead Opinion
After Illinois Bell Telephone Company (“Company”) refused to arbitrate a grievance, the International Brotherhood of Electrical Workers, Local 21 (“Union”) filed a motion to compel arbitration in federal district court. Under the terms of the parties’ collective bargaining agreement (“CBA”), the district court found the grievance arbitrable and granted the motion. We affirm.
I. Background
The parties’ CBA has been in effect since June 27, 2004. In late 2005, the Company informed the Union that it planned to implement new “consumer performance management guidelines.” In the past, employees were evaluated on a “work flow” system. Essentially, employees were required to perform specific tasks in response to actions taken by the customers with whom they dealt. The new guidelines
Upon notice of the Company’s plans, the Union filed a grievance challenging the implementation of the guidelines. The parties engaged in a series of discussions regarding the guidelines, and the Company made some changes to the program. In the end, however, the parties could not resolve their dispute. The Union requested that the grievance be submitted to arbitration, but the Company refused, asserting that the grievance was not arbitrable under the terms of the CBA. The Union then filed its motion to compel arbitration in federal court pursuant to the Federal Arbitration Act, 9 U.S.C. § 4.
The arbitration clause, § 13.16 of the CBA, defines what topics are arbitrable: The right to invoke arbitration shall extend only to matters which involve:
(A) The interpretation or application of any of the terms or provisions of this Agreement, unless excluded by specific provisions of this Agreement.
(B) The discipline of an employee with six (6) or more months of Net Credited Service.
To invoke the arbitration clause, the Union points to several provisions of the CBA, the interpretation or application of which may be involved in this dispute. First, the recognition clause, § 1.01 of the CBA, states: “The Company recognizes the Union as the exclusive bargaining agent for [the] employees of the Company....” Second, § 4.01 requires “mutual responsibility and respect” and a fair application of the CBA “in accord with its intent and meaning and consistent with the Union’s status as exclusive bargaining representative.” Third, the CBA includes a “no strike” provision, strictly prohibiting the Union from striking under any circumstance. None of the above provisions have been explicitly excluded from arbitration, and nothing in the CBA specifically pertains to the implementation of performance guidelines.
II. Analysis
“We review the district court’s ruling to compel arbitration de novo.” American United Logistics, Inc. v. Catellus Dev. Corp.,
When resolving arbitrability disputes, a court must bear in mind the liberal federal policy in favor of arbitration agreements. James v. McDonald’s Corp.,
When determining whether the parties have agreed to arbitration, a court must be careful not to consider the merits of the underlying claim. AT & T Techs.,
The parties have spent much time debating whether the arbitration clause in the CBA is “broad” or “narrow.” While the utility of such categorization, without context, is dubious at best, the clause does appear to be in line with those that have been considered “broad.” See AT & T Techs.,
In order to determine whether the parties have agreed to submit this particular dispute to arbitration, we must turn to the specific language of the arbitration clause. When interpreting a contract, we look first to the plain meaning of the provision, and strive to avoid absurd results. See County of McHenry v. Ins. Co. of the West,
The district court based its finding of arbitrability upon § 4.01, the mutual respect and responsibility clause. The Union has also argued that this dispute involves the interpretation and application of the recognition clause, § 1.01, and thus requires the Company to submit the dispute to arbitration. We prefer to begin our analysis with the recognition clause.
An arbitrator could interpret the recognition clause, which obligates the Company to recognize the Union as the employees’ sole bargaining representative, to require only that the Company refrain from dealing with other labor organizations. Alternatively, an arbitrator could interpret the recognition clause to prohibit the Company
The Company has argued that the recognition clause cannot support arbitrability, and points to this court’s 1963 opinion in Indep. Petroleum Workers of Am., Inc. v. American Oil Co., in support.
In response to the union’s argument in Indep. Petroleum Workers, this court stated: “This position, if accepted, means that either party by alleging a refusal of the other to bargain with respect to any conceivable issue or controversy would become subject to arbitration. Plaintiffs position is devoid of logic.” Id. at 906-07. The circumstances of the Indep. Petroleum Workers case, however, were very different than the case at hand. First, the union in that case “for many years had sought the inclusion of a clause in the collective bargaining agreement specifically prohibiting or limiting” the right at issue. Id. at 907. Thus, the issue of subcontracting had already been negotiated during the regular course of labor-management bargaining. This court found that point both relevant and significant. Id.
Second, the CBA in Indep. Petroleum Workers contained a rather unique provision which suspended the no-strike clause when the company refused to arbitrate a grievance. Id. at 905. Arbitration provisions are generally considered reciprocity for no-strike provisions. Int’l Bhd. of Teamsters, Chauffeurs, Warehousemen and Helpers of Am., Local Union No. 371 v. Logistics Support Group,
Finally, our decision in Indep. Petroleum Workers was not based solely on the merits. We also held that, because the union had already attempted to compel arbitration of the same issue in a previous suit, collateral estoppel precluded relitigation of the issue.
Indep. Petroleum Workers predates the Supreme Court’s opinion in AT & T Techs., which reaffirmed the strong pre
While an equally divided Supreme Court affirmed Indep. Petroleum Workers without discussion, the Supreme Court has instructed that “summary affirmances have considerably less precedential value than an opinion on the merits,” and such value “can extend no farther than the precise issues presented and necessarily decided by those actions.” Illinois State Bd. of Elections v. Socialist Workers Party,
Given the significant differences between the CBA and bargaining history in this case and that in Indep. Petroleum Workers, we conclude that Indep. Petroleum Workers is not controlling in this case. Additionally, the Supreme Court’s summary affirmance sheds no light on the viability of the Union’s arguments because the decision may very well have rested upon the collateral estoppel holding.
The Union in this case alleges that the Company’s actions constitute a breach of the recognition clause of the CBA, § 1.01. Up until the proposed implementation of the new performance guidelines, employees were evaluated based upon the tasks they performed. If they performed the tasks that the Company told them to at the appropriate times, they received a favorable evaluation and no discipline resulted. The proposed guidelines would require the employees to deliver results. If the employees do not meet their sales quotas, they will be disciplined and possibly discharged. At the time that the current CBA was bargained over, the Union had no indication that such a change was on the horizon. Attempts at bargaining between the Company and the Union prior to implementation of the guidelines reached impasse, and the Union has alleged that this bargaining was not in good
We cannot say with positive assurance that the arbitration clause is not susceptible of an interpretation wherein a good faith allegation that the recognition clause of the CBA has been violated binds the Company to mandatory arbitration. See AT &T Techs.,
III. Conclusion
For the foregoing reasons, the judgment of the district court is AffiRmed.
Dissenting Opinion
dissenting.
I respectfully dissent. The presence of an arbitration clause in a contract creates a presumption in favor of arbitration, but this means only that doubts about whether a particular dispute is covered are resolved in favor of coverage; “arbitration is a matter of contract and a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit.” United Steelworkers of Am. v. Warrior & Gulf Navigation Co.,
The arbitration clause in the parties’ collective bargaining agreement (“CBA”) provides: “The right to invoke arbitration shall extend only to matters which involve: (A) The interpretation or application of any of the terms or provisions of this Agreement, unless excluded by specific provisions of this Agreement. (B) The discipline of an employee with six (6) or more months of Net Credited Service.” (Emphasis added.) The use of the term “only” — obviously a term of limitation— suggests a somewhat less expansive interpretation than that urged by the Union and adopted by my colleagues. The dispute at issue here is about performance guidelines, and it is arbitrable only if it involves the interpretation or application of a term or provision in the CBA, or the discipline of an employee.
The CBA contains no terms or provisions whatsoever relating to performance guidelines or standards, and this dispute concerns the performance guidelines policy itself, not the discipline of a employee pursuant to it. Nonetheless, the majority concludes that the dispute is arbitrable because it “could” involve the interpretation of the so-called “recognition” clause of the CBA. Majority op. at 689. That provision, § 1.01 of the CBA, states as follows: “The Company recognizes the Union [Local 21] as the exclusive bargaining agent for those employees of the Company in the State of Illinois ... and Lake and Porter County [sic], Indiana.”
In any event, the Union does not assert that the Company failed or refused to bargain in good faith over the performance guidelines. Indeed, the record reflects that the Company gave notice of the new policy and offered to meet with Union representatives to bargain over it. The Union has historically taken the position that it will not formally “bargain” over policies of this sort but agreed to meet for informal discussions with the Company. Accordingly, meetings were held and changes made to the guidelines as a result of the Union’s input and objections to specific aspects of the policy.
So it is not surprising that the Union does not argue that the Company failed or refused to bargain in good faith, beyond suggesting that what occurred was “not bargaining in any real sense,” whatever that means. The Union has not alleged, for example, that bargaining had not reached impasse before the Company imposed the performance guidelines. See Inland Tugs,
The majority concludes that the dispute is arbitrable because the recognition clause “could” be interpreted “to prohibit the Company from making significant changes in the terms and conditions of employment without the consent of the Union.” Majority op. at 688-89. Such an interpretation is impossible; it would require the arbitrator to completely rewrite the recognition clause, engrafting a duty that is not there. Indeed, such an interpretation would contradict well-settled principles in the case law pertaining to the statutory duty to bargain collectively and establishing the
Because the performance guidelines are not contained in the current CBA, the Company has a good-faith bargaining duty under the NLRA but no duty to obtain consent from the Union before implementing the policy. The “no strike” provision in the CBA does not leave the Union without recourse; its remedies are in the collective bargaining process and the NLRA. The recognition clause simply is not susceptible of an interpretation that would vest the Union with the sort of veto power suggested by the majority.
The out-of-circuit case law cited by my colleagues is either distinguishable or badly reasoned. In Oil, Chemical & Atomic Workers International Union v. Phillips 66 Co.,
E.M. Diagnostic Systems, Inc. v. Local 169, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America,
Finally, Local 1912, International Ass’n of Machinists v. United States Potash Co.,
The Union argues in the alternative that § 4.01 of the CBA, the “mutual responsibility and respect” clause, is implicated in this dispute. In that clause, the parties “recognize” that “all dealings between them be, and continue to be, characterized by mutual responsibility and respect” and that the terms of the CBA shall be applied “fairly in accord with its intent and meaning and consistent with the Union’s status as exclusive bargaining representative.” Because the CBA is silent about performance guidelines or standards, the Company cannot be guilty of “unfairly” applying a term of the CBA by adopting the guidelines. The Union has made no effort to identify how the performance guidelines policy itself might reflect a lack of “mutual responsibility and respect.”
Accordingly, the arbitration clause— which covers only those disputes that involve an interpretation of a term or provision of the CBA or the discipline of an employee — is not reasonably susceptible of an interpretation that covers this dispute. The parties’ dispute over the performance guidelines is not arbitrable.
In closing, I have serious concerns about the essentially limitless reach of today’s decision. If this dispute is arbitrable as an arguable violation of the recognition clause, then almost any dispute is; any Company action that can be characterized as contrary to the Union’s interests “could” violate the recognition clause if its scope is as boundless as the majority believes. Recognition clauses of this sort are routine in collective bargaining agreements, as are arbitration clauses that limit arbitration to disputes involving an interpretation or application of the terms of the parties’ agreement. Henceforward, recognition clauses will be invoked as malleable enough to compel arbitration of disputes that do not squarely implicate any other term or provision of the contract. In my judgment, this violates the fundamentally contractual nature of arbitration and the axiom that “a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit.” Warrior & Gulf Navigation Co.,
