*1 BAKERY LOCAL NUMBER
CONFECTIONERY WORKERS UNION, AFL-CIO, Appellant, BROTHERS,
NOLDE INCORPORATED,
Appellee.
No. 74-2285. Appeals,
United States Court of Fourth Circuit.
Argued April
Decided Oct. 19,1976.
Certiorari May Granted
See
concurring Widener, Judge, Circuit filed concur-
ring and dissenting opinion.
covering employees the at the company’s bakery. The provid- Norfolk pay upon closing ed for severance the bakery employee each actively the for employed by Nolde for at least three and also years,1 contained an all-encom- clause.2 passing arbitration August following several On Washington, D. C. Rosenberg, Ronald negotiations fruitless over months Kaiser, Arkel, Kaiser, Gress- Van (Henry contract, proposed changes in the the Anker, Law- Jery D. Rosenberg, &man gave days the written no- Union seven Abeles, Lichtman, Sherman, J. rence agree- to terminate the required tice C., Jay Washington, D. Nagle, & Anker Negotiations continued for few ment. Richmond, Va., Levit, Levit, Stallard termination, days but on Au- after brief), appellant. for on company, faced with the gust Richmond, Jr., to strike over Lowden, Va. Union’s threats certain V. Francis Jr., Hunton, demands, Vandermeer, permanently closed (Abram W. Richmond, Va., Gibson, bakery. subsequently paid Nolde Williams, Gay & pay through accrued brief), appellee. wages for and vacation termination, the date of the contract ALDRICH, Circuit Senior Before wages for the few paid days in addition WIDENER, and CRAVEN Judge,* and the between termination Judges. Circuit August closing. But the re- jected the Union’s demand that it either CRAVEN, Judge: Circuit give pay employees severance to all its Brothers, Inc. and Local Nolde In 1970 or arbitrate to do so. Confectionery Bakery and 358 of No. The Union then un- instituted this suit Union entered International Workers Manage- der 301 of the Labor Section a collective * Circuit, by Designation. Sitting grievance, First settle the will be set- tled as called for in Sections 2 and 3 of this Wages. IX. Article Article. any grievance In the event that Section 2. employee iswho Each full-time Section 5. satisfactorily by adjusted pro- employment cannot be displaced his permanently from above, by parties Company of the intro- reason either of the cedure outlined saving equipment, the clos- of labor duction demand arbitration and shall hereto give closing department, of an entire ing plant, aof party written notice to the other of its off, lay compensated by for ac- or shall employee No individual desire arbitrate. displacement providing he has been such right have the to invoke arbitration shall peri- by Company tively employed the written without consent of Union. eligible (3) years. An at least three od of employee’s The Arbitration Board shall consist of three displace- compensation for his (3) persons, Company one selected (30) thirty on the basis of ment shall be and one selected the Union. The two straight pay, time at his of severance hours hourly agree upon persons selected shall a third major por- rate, year each full or person who shall act as Chairman of the year employment com- of active of a tion mencing Board. Arbitration year following (4th) fourth with the Section 3. The decision or award of the Payment under date of hire. most recent his this formula Board, thereof, majority or a Arbitration limited to a maximum shall be binding parties. (900) be final and on both If of severance shall hours nine hundred party pay. is not selected the third to arbitration notice, days (10) receipt in ten from and Arbitration. Grievances 2. Article XII. Director of the U.S. Conciliation Service grievances shall be first All Section up appointment. requested shall be to make Management Plant taken between expense arbitrator shall of the neutral Shop If these shall Steward. and the parties. equally be borne grievance, then to settle the be unable during Pending negotiations or Section 4. Agent called Union shall be Business in, strikes, there shall be no lock- arbitration outs, boycotts, attempt a settlement of to arrive at in an any stoppages of work. grievance. are unable to If these Act, district court
ment Relations U.S.C. erred choosing severance one pay compel arbitration characterization —the company’s— other, alternative, over or, for an award for in issue fact has no district immutable It pay. The nature. of the severance indeed creature of granted company’s for sum- but this motion means no more nor counts, less than given that it is in a mary judgment holding *3 on both exactly case what parties voluntary termina- (1) that union’s intended to “the make it when they bargained. agree- collective In one tion of its case the parties may intend it . de- be ment with the only available if a triggering event pay oc stroyed any right severance creat- curs during the contract term. But as bargaining agree- ed the collective ” Supreme noted, Court has there is (2) displaced employees; ment why “no reason they could not if pay there no severance issue was thus agree so chose to the accrual of arbitrate; rights (3) and that even if there had during the term agreement of an and been an arbitrable issue was no their realization after the had arbitrate, duty to for it died had with expired.” John & Sons v. Living the contract that it. created ston, 543, 555, 376 909, 917, U.S. 84 S.Ct. view, disagree. In our We 11 (1964). L.Ed.2d 898 Thus the nature approached district the issues back of the employees’ right to pay severance it first wards when determined whether depends the-circumstances here entire obligation for company’s severance ly upon the intent of the Union and the pay This survived contract. is a company when they wrote relevant question more suitable for arbitration provision. decision, judicial explain than as we be Any question intent be Thus, low. first hind a collective bargaining term must company’s district court was whether the be referred arbitration if it is availa particular this arbitrate issue ble. This is in accord with the national expiration survived the contract. labor policy expressed by Congress: did, accordingly We believe it we adjustment Final by a method reverse remand with instructions agreed upon by the parties is declared that the district court the company order to be the desirable method for settle- to arbitrate. grievance ment of disputes arising application over the interpretation or
I. of an existing collective-bargaining agreement. The Union and the company apparent- 203(d), LMRA 29 173(d) (em- U.S.C. § ly presented court, to the district as they phasis added). This is also the clear us, have to contrasting views of the na- teaching of the Steelworkers Trilogy,3 pay. ture of severance The Union ar- and is based on the principle sound gued that an “earned” arbitrator, an familiar he is as with both right accruing or “vested” to employees industry, and the is better time, over a period whose benefits positioned than a court to divine their cannot be denied them regardless when intent: they company, come to fruition. The hand, the other characterized severance The labor source arbitrator’s of law pay as “a creation of the collective bar- is not confined to express provi- gaining agreement,” right to it sions of the as industrial contingent upon occurrence of the practices common law—the of the in- triggering bakery event—here the dustry clos- and the shop equally part —is ing during term of the contract. of the — 3. United Steelworkers v. American L.Ed.2d 1409 United Steelworkers v. Enterprise U.S. S.Ct. L.Ed.2d Corp., Wheel & Car 363 U.S. (1960); United Warrior Steelworkers v. & Gulf (1960). S.Ct. L.Ed.2d 1424 Nav. the statements support in it. The la- do not although expressed not com- be- usually pany’s chosen contention a duty arbitrator to arbi- bor in his confidence trate parties’ cannot survive the termination cause common law of the knowledge expiration a contract. personal his their trust shop and First, Court has it considera- bring to bear judgment self apparent premise undercut the expressed are which tions upon arbitration must rest judgment. as criteria for holding that in some circumstances a v. Warrior & Gulf United Steelworkers new employer who takes over a union 574, 581-82,
Navigation
ized
can
compelled
business
to arbi
Reversed and instruc- tions. While I agree that this case calls for to arbitration, referral I do not agree ALDRICH, Judge (con- Senior Circuit that Piano & Musical Instrument Work curring): Kimball, ers W. W. respect, I great am not entirely With 441, 13 (1964), L.Ed.2d 541 foreclos my full sure of the extent brethren objection es an being disagreement, perhaps are in I am lodged I, before the arbitrator. there being However, over-simplistic. it seems fore, respectfully dissent from that por disput- to me that what are tion of the majority’s opinion. ing the claim for compensation —whether In Workers, Piano the defendant Kim- force, while the vested contract was in ball had entered into a collective bar- and therefore its termination— survived gaining with Piano & grievance Musical plainly is within the mean- Workers Local 2549. The arbitrability clause, peri- ing of the and nei- od ran we, arbitrator, from October ther nor the face the is- to October August 1961, 1961. In arbitrability. only issue, sue the defendant words, grievance other is whether the decided to is discontinue operations at its sound, which, course, is for the Melrose Park Plant in Illinois began process trator. of discharging all employees at that location. On October 9 of that possibilities open I see three to court year, eight days after the expiration of decision in this area: an substance; agreement, issue of arbitrable that there opened Kimball plant a new is an arbitrable issue of whether the French is- Lick, Indiana. sue of subject substance one to arbi- tration; there is no arbitrable issue at Despite the fact the union contract Judge If all. Widener denies this first terminated, had been the union claimed I possibility, disagree then must its members right had a to priority in time, him. At the I same I think see employment plant. at the new It based arbitrator, what troubles him. If the II, its claim on Article Section Para- appointed, when rendered a decision to graph 6 of the which stated: the effect that he saw no arbitrable is- “When reemployment occurs employ- *7 sue, I don’t a know what court could do ees will be called back to work in or- We question about it. do not face that der of seniority.” their and I doubt if a court ever would. How- When the ever, how, company I refused to theory, do not see in follow the a court rehiring procedure can, by circumstances, that in the desired the proper union that submit the question dispute arbitration, rule there is no be arbi- the trated, brought cannot rule union equally that there suit in the United States Indeed, one. that is what it does District every Court for the Northern District it time instructs the arbitrator that there of Illinois. pay
bitration original over severance when a at the time of had intended expiration went out of business after the of employees pay upon to receive severance agreement. the collective But the post-termination shutdown. The contract con- grant there did not on its face em- templated only that the would discuss ployees right pay, an absolute to severance as possibility the of severance at the time of Instead, does the contract in the instant case. accrue, Nothing shutdown. could and the ob- the contractual of the was to ligation negotiate simply died with the con- “negotiate regard- the terms of discontinuance negotiate tract. An does not last ing pay.” Under that contract forever. argument was no for an room that the
555
that
the conclusion is
that action deter-
mandated
the
court in
The district
question
Supreme
opinions
of whether
Court’s
in
that
United
mined
were arbi-
v.
complaint
Mfg.
Steelworkers
American
raised
Co. or
issues
of the con-
following
John
v.
Livingston.2
termination
Sons
trable
subject
question
arbitration. As
before us is a very
was
narrow one:
tract
out,
“the
Is the
susceptible
it was
arbitration clause
pointed
of
the court
an interpretation
necessarily
that
that
construction of
covers
trator’s
[arbitration]
dispute?
that was bar-
asserted
not the
While doubts
clause and
Court’s
463. The
should be resolved in
F.Supp.
coverage,
221
favor of
for.”
gained
not, therefore,
United
v.
holding,
in that
Steelworkers Warrior & Gulf
court did
564, 582-83,
363
that
union-em-
U.S.
as
hold
S.Ct.
go so far
was,
fact,
in
L.Ed.2d
A.
rehiring
S. Abell Co. v.
dispute
ployer
over
Typographical
Baltimore
Union No.
arbitrable.
(4th
1964),
338 F.2d
Cir.
Circuit held
appeal,
Seventh
On
court should ever be mindful of Mr. Justice
court’s determination
lower
that the
uglas
Do
admonishment in United
was
of
question
v.
Steelworkers American
But it went on
in error.
was
arbitrator
I am
Winston-Salem
require
ing
that the
Pressmen &
No.
Piano Workers does
Assistants’ Union
present
case 318
Publishing
substantive
Piedmont
F.2d
(4th
1968),3
do I
is precisely
point
arbitrable. Nor
believe 221
be deemed
opinion
Pressmen,
Printing
“any
the district
The second
in Winston-Salem
establishes what
Court de-
here',
which
grievance”
is more theoreti
own
not considered
cided in its
case was
cal than real.
It is true that
in the Winston-
reported
majority
here.
It
Printing
Salem
Pressmen
case the contract
*8
F.Supp. 523
provided
of
for arbitration
“the construction to
placed
any
upon
be
clause of
.
[the]
Trilogy
and John
Steelworkers
is,
agreement,”
grievance
specifically
but that
is what a
discussed and con
and Sons were
opinion
dispute
employee
in Winston-Salem Print
and
over
strued in our
between
ing
agree
Union No.
v.
meaning
Pressmen & Assistants’
318
the
of
Co.,
(4th
Publishing
here
majority,
practical purposes. The
all
of the parties
for.
however,
intent
to exclude certain
follow
case.
fails
to
arbitration,
from
matters
for it is firmly
There,
any ex-
scrupulously
we
avoided
established in this circuit that bargaining
of arbi-
question
as to
pression
trability
how
legitimate
history is of no
use in deter-
resolved
should be
where
mining whether to order the submission
it-
of the arbitration clause
application
grievance
aof
to arbitration.
Id. at 194.
case,
subject
dispute.
to
In that
self was
also Local No. 1434
See
IBEW v. E. I.
to
employer sought
an
avoid arbitration
duPont deNemours &
F.Supp.
350
grounds
the duty
on the
to arbitrate
462,
(E.D.Va.1972).
466-67
expiration
With the
of the con-
ceased
case,
In the instant
it
no
means
to
came
request
when the
arbitrate
tract
beyond
“clear
rational debate” that subsequent
thereto.
district court dispute over
after con-
question
concluded that
the contract in
“griev-
tract
termination
constitutes
not state that notice to arbitrate had
did
ance” within the meaning of the con-
given
to
prior
expiration of the
to be
tract. The contract
merely pro-
itself
of
agreement, but that should settlement
vides:
disputes
impossible, the
prove
“In
any grievance
the event
cannot be
ap-On
differences would be arbitrated.
satisfactorily adjusted
...
ei-
peal, we held that where the issue of
ther of the parties
may
hereto
demand
arbitrability
interpretation
involved
of
”
.
arbitration.
matter, including
the entire
be
question
of
should
Nowhere
the agreement
within
have the
submitted -to the arbitrator.
to
attempted
“any
define
griev-
phrase
ance.” Since the
“any grievance”
our
This conclusion is consistent with
undefined,
is left
in-
holding in A. S. Abell Co. v. Bal
earlier
disputes
tended that
arising after
Typographical Union No.
388
timore
termination
(4th
1964),
subject
of the contract
stated
be
F.2d 190
Cir.
where we
to
well
it
ration
call for a
beyond
that where
is not “clear
detailed
litigants
examination of the
al
that the
intended the
history
debate”
arbitration,
leading up
the contract,
to be
submitted
a task
matter, including
uniquely
question
the entire
suited to the arbitrator.
I am
opinion
be
to the
arbitrability,
of
should
referred
of
either party should be allowed
To conclude otherwise would to offer bargaining history
explain
arbitrator.
any opportunity
foreclose
to estab-
phrase, which,
be to
the undefined
being unde-
F.Supp.
the effect
different
is not
Forrest
Labor Mediation
N.W.2d
aff'd
ing
encouraging
settlement of
parties
Court
should
ers’
Woodworkers,
1947).
hand.
the more reason to submit
applicability
“any
It is
Co.
Union No.
only from of collec- agreements,
tive but also Typical of “application.”
their the ma-
jority opinion placing is its of italics on
interpretation quotation in its
statute, opinion p. while not ac-
knowledging anywhere opinion equal emphasis Congress placed
application. That is its fundamental er-
ror.
Thus, majority has fallen into the trap
same for which it chides the district p. opinion. 551 of “pre- It
empted the arbitrator rather than over-
ruling “may him.” It do neither under
the labor law.” This court has no more authority to pre-empt
the arbitrator
than has the district court. Winter, Judge, Circuit concurred in
Seymon HARRISON, Appellee, B. part and part dissented in opinion. UNITED TRANSPORTATION
UNION, Appellant,
Norfolk and Portsmouth Belt Line Company,
Railroad Defendant.
Seymon HARRISON, Appellant, B.
UNITED TRANSPORTATION UNION
and Norfolk and Portsmouth Belt Company, Appellees. Line Railroad 74-1737,
Nos. 74-1738.
United States Appeals, Court of Fourth Circuit.
Argued Feb. 1975.
Decided Dec. 3,May
Certiorari Denied
See
