LOCAL 63, TEXTILE WORKERS UNION OF AMERICA, C.I.O. v. CHENEY BROTHERS
Supreme Court of Errors of Connecticut
Decided May 18, 1954
Memorandum on reargument filed November 9, 1954
INGLIS, C. J., BALDWIN, O‘SULLIVAN, WYNNE, DALY and MOLLOY, JS.
Argued March 3, 1954; reargued October 14, 1954
There is no error.
In this opinion the other judges concurred.
A. A. Ribicoff and Irving S. Ribicoff, with whom was Louise H. Hunt, for the appellee (plaintiff).
INGLIS, C. J. The judicial phase of the controversy between the parties to this appeal began on January 15, 1953, when the plaintiff, acting under
On March 26, 1951, as a result of negotiations between the parties, the company gave a general wage increase to about 1600 employees. The increase did not affect about twenty engravers. The hourly rate employees, that is, those compensated on the basis of a definite amount of money for each hour worked, were now to receive a flat 9.75 cents an hour more. The rates of pay for all other employees except engravers were then computed so as to give them an increase comparable to the 9.75 cents per hour. Since the wages of pieceworkers were determined, not by the number of hours worked, but by the number of units produced during a given unit of time, the fixing of the many thousands of piece rates prevailing in the plant to conform to the increase of 9.75 cents in the hourly rate had to be done by intricate mathe-
As of the date the wage increase became effective, the parties incorporated into their bargaining agreement a cost-of-living “escalator” clause. A 1 cent quarterly wage adjustment, up or down, was automatically to follow every change of 1.153 points in the consumer price index of the United States bureau of labor statistics, but no adjustment which would reduce the rates of pay below those which were effective on March 26, 1951, was to be made through this process.
On September 17, 1952, the company proposed (1) a wage reduction to offset the increase granted on March 26, 1951, and (2) a revision of the escalator
“1. A direct wage decrease of 9 3/4 cents per hour for all employees covered by the current agreement, to offset the wage increase which became effective on March 26, 1951.
“2. Revision of our cost of living formula (Section 9 of the current agreement) by providing for adjustment upon each change of 1.32 points in the applicable index instead of 1.153 points.”
In conformity with its rules, the American Arbitration Association selected an arbitrator who, on November 25 and 26, 1952, held hearings in which both the company and the union participated. At these hearings the arbitrator was not advised of the meaning of “hourly rates,” “base rates,” “piece rates,” “plant minimum rates” and “hiring minimum rates,” as those expressions were used by the company in its wage structure, nor was he told of the method by which the wage increase of March 26, 1951, was computed and fixed for the various types of wage earners.
On December 28, 1952, the arbitrator made the following award:
“1. Beginning with the first payroll period which commences after December 31, 1952, all hourly rates and base rates shall be reduced by 9.75 cents. Piece rates and plant hiring minimum rates shall be adjusted accordingly.
“2. Beginning with the first payroll period which commences after December 31, 1952, Section 9 of the collective bargaining agreement between the parties dated August 1, 1952 shall be modified so as to provide for a 1 cent cost-of-living adjustment for every 1.32 index points’ change in the U. S. Bureau of Labor Statistics Consumers’ Price Index for Moderate Income Families in Large Cities, Old Series. The February 1951 Index of 184.2 shall continue to be used as the starting point in calculating changes in the cost of living. The effect of this will be to reduce the Cost-Of-Living Allowance payable for the current quarter from 7 cents to 6 cents per hour.”
Although the rules of the arbitration permitted but did not require it, the arbitrator delivered with the award, and stapled to it, a twenty-two page opinion. As directed in the first paragraph of the award, a reduction of 9.75 cents an hour in all “base rates,” as that expression is used and applied in the company‘s wage system, would result in an average decrease of substantially 11.7 cents per hour in the actual earnings of pieceworkers. This decrease would affect 750 employees. Certain other facts found by the court will be mentioned when the legal claims advanced by the parties are discussed.
The problems presented by this appeal readily group themselves into two main divisions, of which one deals exclusively with the first, and the other with the second, paragraph of the award. The court concluded that the former was void because it went beyond the submission and, in any event, because it was not a final and definite answer to the question to which it purported to respond.
Early in our judicial history we expressed the view that, since arbitration is designed to prevent litigation, it commands much favor from the law.
It necessarily follows that an award must conform to the submission. Chase Brass & Copper Co. v. Chase Brass & Copper Workers Union, 139 Conn. 591, 594, 96 A.2d 209; Continental Milling & Feed Co. v. Doughnut Corporation, 186 Md. 669, 677, 48 A.2d 447; Baldwin v. Moses, 319 Mass. 401, 402, 66 N.E.2d 24; 6 Williston, Contracts (Rev. Ed.) § 1929. Ordinarily, an award which does not respond to the submission cannot be upheld. Blackstone Valley Gas & Electric Co. v. Rhode Island Power Transmission Co., 64 R.I. 204, 223, 12 A.2d 739; Pumphrey v. Pumphrey, 172 Md. 323, 325, 191 A. 235. It is void to the extent to which it is outside the submission. Matter of Marchant v. Mead-Morrison Mfg. Co., 252 N.Y. 284, 301, 169 N.E. 386. To that extent the award must be vacated by the Superior Court upon proper application.
On the other hand, if part of an award is within the submission and part of it is not, the former may be sustained and the latter rejected if the two can be separated without doing an injustice. Parmelee v. Allen, 32 Conn. 115, 116; Moore v. Luckess’ Next of Kin, 64 Va. 160, 171; Moyer v. Van-Dye-Way Corporation, 126 F.2d 339, 341; 6 Williston, Contracts (Rev. Ed.) p. 5395; Sturges, Commercial Arbitrations & Awards, § 226; 3 Am. Jur. 957; 6 C.J.S. 234; see Dutton v. Gillet, 5 Conn. 172, 175 n. In accord with this principle,
We will first apply the principles of law which we have just recognized to the question whether the award made upon the first paragraph of the submission should be corrected and, as corrected, sustained. The submission itself is inartificially drafted. It does not necessarily follow, however, that it is insufficient to form the basis of an award. Matter of Hub Industries (George Mfg. Corporation), 183 Misc. 767, 769, 54 N.Y.S.2d 106, modified, 269 App. Div. 177, 54 N.Y.S.2d 741, aff‘d, 294 N.Y. 897, 63 N.E.2d 28. It sets forth with reasonable clarity that the gist of the question to be arbitrated is whether there should be such an adjustment in the wage scale of the defendant as would offset the wage increase of March 26, 1951. It is true that it indicates that such an adjustment may be accomplished by a direct decrease of 9.75 cents per hour for all employees. This latter portion of the submission, if taken literally, is inconsistent with the former. As has already been shown, if the pieceworkers, the employees on the hiring rate and those on the plant minimum rate were all reduced by 9.75 cents per hour, their wages would be less than they were prior to March 26, 1951. When, however, it is borne in mind that the raises granted in 1951 were all computed by starting with a raise of 9.75 cents per hour for the hourly employees, it becomes clear that there is no inconsistency between the two concepts expressed in the first paragraph of the submission. A reduction of 9.75 cents per hour in the hourly rates paid would come to the same end as a reversion to the wage structure as it was prior to March 26, 1951, if the reduction in the hourly rates is taken as a base for the computation of the reduction in the pay of those workers not on an hourly basis, just as an increase of 9.75 cents an hour for the hourly workers was taken as a base for the increase in the pay of all other workers on March 26, 1951. We therefore repeat that the question submitted to the arbitrator was whether the wage increase of March 26, 1951, should be offset by a basic reduction of 9.75 cents per hour, from which basic reduction the actual reduction of the pay of each employee could be computed by adjustment.
If the words “and base rates” are stricken from the award, there is left an adjudication that all hourly rates shall be reduced 9.75 cents, and piece rates and plant hiring minimum rates adjusted accordingly. This adjudication is a complete and reasonably definitive award. See Brown v. Wheeler, 17 Conn. 345, 352. The phrase “plant hiring minimum rates” in the award is clearly intended to embrace both hiring rates and plant minimum rates. When so interpreted, the award covers the pay of all classes of the defendant‘s employees except engravers. The effect of it is to direct a reduction in the pay of hourly workers by 9.75 cents per hour and a corresponding reduction in the pay of pieceworkers, employees who are on the hiring pay basis and employees who are receiving the plant minimum wage. The reduction in the pay of the last three groups is not to be 9.75 cents per hour; it is to be a
So far as the engravers are concerned, there is nothing specifically said about them in the submission. Inasmuch as the crux of the submission was the question whether the increases in pay of March 26, 1951, should be offset and inasmuch as the engravers received no increase at that time, it cannot fairly be said that any question concerning their pay was involved in the submission. It follows that nothing in the award can be interpreted as an order for a reduction of their pay.
Thus it appears that the award without the words “and base rates” is a complete award answering the question submitted in the affirmative. It is also clear that inasmuch as no consideration of base rates, whatever they may be, was had on the hearing, the removal of all reference to them from the award cannot affect the merits of the decision of the arbitrator concerning the reduction in the pay of the four classes of employees covered by the award. The trial court was, therefore, in error in refusing to correct the award by removing from it the reference to base rates. When so corrected, the award would have been within the submission.
We next consider the second ground upon which the trial court concluded that the first paragraph of the award should be vacated, i.e., that the award lacks finality and definiteness. It is true that an award must be final as to the matters submitted so that the rights and obligations of the parties may be definitely fixed. Carter v. Ross, 2 Root 507, 508;
There remains for consideration the award embraced in paragraph 2, namely, the change in the cost-of-living formula. In its complaint, the union alleged that this part of the award should be nullified not only because it went beyond the submission but also because the escalator clause was not subject to arbitration unless the parties expressly so agreed. The court refused to pass upon the latter claim but
That the arbitrator went beyond the submission is clear. Instead of limiting himself to deciding whether the cost-of-living formula should provide for adjustment upon a change of 1.32 points in the index rather than 1.153 points, he undertook, after answering that question affirmatively, to apply the formula to the wage scale. This part of the award presented the ground upon which the court acted. As has been pointed out, when an arbitrator exceeds his authority, the award is void only to the extent that he does so, if the part which is void can be separated from the rest without injustice and without affecting the merits of the part of the award which is within the submission. The award set forth in paragraph 2 is one in which the good can readily be separated from the bad with justice to both parties. The valid part of the award is that which raises the required change in index points to 1.32 beginning with the first pay-roll period which commences after December 31, 1952. The arbitrator‘s notion of how the new formula should apply can readily be nullified without injustice to anyone. For this reason, the court was in error in vacating the entire award in paragraph 2. The award should have been corrected by striking therefrom all of the language except the following: “Beginning with the first payroll period which commences after December 31, 1952, Section 9 of the collective bargaining agreement between the parties dated August 1, 1952 shall be modified so as to provide for a 1 cent cost-of-living adjustment for every 1.32 index points’ change in the U. S. Bureau of Labor Statistics Consumers’ Price Index for Moderate Income Families in Large Cities, Old Series.” Judgment should enter confirming the award as thus corrected.
There is error, the judgment is set aside and the case is remanded with direction to render judgment modifying and correcting the award as indicated in this opinion and confirming the award as so modified.
In this opinion WYNNE, DALY and MOLLOY, JS., concurred.
O‘SULLIVAN, J. (dissenting). The modern judicial attitude toward arbitration is that its use should be encouraged. International Brotherhood of Teamsters v. Shapiro, 138 Conn. 57, 68, 82 A.2d 345. But however sympathetic the law may be toward this method of terminating controversies, arbitration must be carried out, not in some haphazard fashion suiting the fancy of the parties or the arbitrators, but pursuant to recognized rules of long standing. The need for adherence to legal principles is particularly apparent in those cases where, as here, one of the parties is seeking to convert an award into a judgment.
My disagreement with the majority is limited to the phase of the award, covered by paragraph 1, which deals with a proposed reduction in pay. My dissent is based on three grounds.
Second, the award cannot be corrected, since the merits of the controversy would be affected. Pratt, Read & Co. v. United Furniture Workers, 136 Conn. 205, 208, 70 A.2d 120;
Third, the award, whether viewed in its original or in its corrected form, lacks finality and definitude. Certainty is an indispensable requirement of a legal award. If it is deficient in this respect, it cannot be upheld. It must leave no loophole for future dispute on the matter submitted. See 3 Am. Jur.
The majority have ordered the court to render a judgment incorporating the following corrected paragraph of the award:
“1. Beginning with the first payroll period which commences after December 31, 1952, all hourly rates shall be reduced by 9.75 cents. Piece rates and plant hiring minimum rates shall be adjusted accordingly.”
The majority do not direct the court to state in the judgment how the second sentence, which I have italicized for emphasis, is to be carried out, since there is nothing in the award to inform the reader what method the arbitrator had in mind. Indeed, the second sentence provides one of the unsolved mysteries of the case. Undoubtedly the arbitrator knew what he meant by the language he used but it is conceded that nobody else did.
For example, after receiving the award, the defendant, apparently not comprehending what the arbitrator had decided, conferred with the plaintiff and proposed that the award be determined to mean the following: “1. The hiring rate would be reduced from $1.00 per hour to $.94 per hour, the rate in effect prior to the March 26, 1951 increase. 2. The minimum rate would be reduced from $1.15 per hour to $1.10 per hour, the rate in effect prior to the March 26, 1951 increase. 3. Employees who are on minimum rate jobs, that is, who are receiving $1.15 per hour will be reduced 5¢ per hour. 4. Employees who were receiving the plant minimum of $1.10 prior to
It further developed, as the finding shows, that when the defendant was unable to convince the plaintiff that the parties should agree to these seven propositions as determinative of what the award meant, the defendant suggested that the plaintiff go to the arbitrator to obtain his interpretation of the award. Needless to say, the suggestion was ignored.
The majority now direct the court to ripen this meaningless award into a judgment, without giving any clue as to how the piece rates and plant hiring minimum rates can be determined. It seems to me that in the light of the foregoing discussion the award, now to be altered into a judgment, cannot be characterized either as final, complete or definitive.
For the foregoing reasons, I cannot agree with the majority.
MEMORANDUM ON REARGUMENT
INGLIS, C. J. Reargument in this case was granted but was limited to the first ground stated in the mo-
In the original opinion, we pointed out that the nub of the question submitted to the arbitrator was whether there should be a reduction of wages in the defendant‘s plant which would offset the increase which had become effective on March 26, 1951. We concluded that the effect of the award as properly interpreted was to direct a reversion of the wage structure, as it affected all employees except engravers, to what it was prior to March 26, 1951. The award, as corrected, accomplished this by directing that all hourly rates be reduced by 9.75 cents and that piece rates and plant hiring minimum rates be “adjusted accordingly.”
The basic contention of the plaintiff in its motion to reargue is that, as interpreted by us, the award would result in a reduction of 9.75 cents an hour in the wages of the employees of the defendant who receive wages at the “plant minimum rate” or at the “hiring rate.” That is not the interpretation we gave to the award.
It is obvious that the arbitrator did not consider
We see no occasion to make any change either in the opinion or in the rescript.
In this opinion WYNNE and MOLLOY, Js., concurred; O‘SULLIVAN and DALY, Js., dissented (DALY, J., having heard the reargument, now desires to be recorded as dissenting from the original opinion and joining in the dissenting opinion).
