Lead Opinion
MсKEAGUE, J., delivered the opinion of the court, in which GILMAN, J., joined. CLAY, J. (pp. 489-98), delivered a separate dissenting opinion.
OPINION
In this case, we consider the validity of a maintenance rate that is applicable to ill crew members and is one of the terms of a collective bargaining agreement (CBA). The CBA contained, inter alia, a maintenance rate of $56.00 per week for ill crew members and a rate of $300.00 per week for injured crew members. Due to this differential treatment, the district court granted Plaintiff-Appellee Larry Skowro-nek, an ill crew member, summary judgment and awarded him the injured crew member rate. We REVERSE.
I. BACKGROUND
The facts in this case are not in dispute. Skowronek was employed as a wheelsman aboard Defendant-Appellant American Steamship Company’s ship, the MW John J. Boland. On September 3, 2004, while at sea, Skowronek suffered a heart attack. He departed the ship at that time, and he remained unfit for duty until December 2, 2004. As a member of the Seafarer’s International Union while he was employed by American Steamship, the terms and conditions of Skowronek’s employment were governed by a CBA between his union and his employer. The portion of the CBA relevant to this case provides:
The Weekly Recovery Stipend shall be paid at the rate of three hundred dollars ($300.00) weekly and will be composed of fifty-six dollars ($56.00) maintenance (eight dollars ($8.00) per day contractual rate) and two hundred forty-four dollars ($244.00) contractual support benefit.
Such payments are an obligation of the employer to an employee who suffered*484 an injury aboard the ship covered under Maritime Law, which incapacitates him for at least seven (7) days and shall be due and payable not less frequently than each second week anniversary of the injury. Such coverage shall be retroactive to the date of injury. The injured seaman must see a doctor chosen by the employer at reasonable times when requested. Unless mutually extended, payments will not exceed one (1) year.
The payment of this benefit shall constitute satisfaction of the obligation to pay maintenance but otherwise shall not constitute a waiver or be deemed to lessen any legal or contractual rights held by such injured employee. It is agreed that the Weekly Recovery Stipend is separate and distinct from any other rights and options of the employee, except as specified above.
When a member of the unlicensed personnel is entitled to maintenance under the Maritime Law, he shall be paid maintenance at the rate of eight ($8.00) per day for each day or part thereof of entitlement, upon presentation of a medical abstract. This payment shall be made regardless of whether he or she has or has not retained an attorney, filed a claim for damages, or taken any other steps to that end. The payments due hereunder shall be paid in a timely manner, generally not less frequently than twice monthly.
Skowronek v. Am. S.S. Co., No. 05-73961,
American Steamship therefore paid Skowronek $56.00 per week during the period he was unfit for duty. On September 8, 2005, he commenced an action in Michigan state court in which he sought $300.00 per week for the period. He complained that the CBA discriminated against ill crew members. American Steamship removed the case to the United States District Court for the Eastern District of Michigan. Both parties filed motions for summary judgment, and on May 25, 2006, the district court granted Skow-ronek’s motion and denied American Steamship’s. The latter filed a timely appeal.
II. ANALYSIS
This Court reviews a district court’s grant of summary judgment under the de novo standard. Nichols v. Moore,
Under United States maritime law, “maintenance” is the shipowner’s duty to provide food and lodging to a seaman who becomes ill or injured while in the service of the ship. Vaughan v. Atkinson,
The issue in this case is whether the maintenance rate of $56.00 per week applicable to ill crew members is enforceable even though injured crew members are entitled to a rate of $300.00 per week, where those provisions are part of a CBA that contains several other terms governing the working conditions of union crew members. We hold that it is.
Federal appellate courts have all but uniformly concluded that maintenance rates specified in a CBA will be enforced, regardless of whether they actually cover a crew member’s daily food and lodging expenses. Indeed, in addition to our decision in Al-Zawkari v. Am. S.S. Co.,
The Ninth Circuit emphasized that the maintenance rate “is but one of many elements contained within the Union contract and over which the parties negotiate, and there may be a considerable amount of ‘give and take’ exercised by the parties in coming to a final agreement on all of the elements.” Id. Consequently, the maintenance rate’s adequacy “should not be examined in isolation by the court because the determination of its adequacy in rela
Like many of our sister circuits, we have found Gardiner’s, reasoning persuasive, and we have accordingly adopted it. In Al-Zawkari, the plaintiff crew member who had become ill aboard the defendant’s ship instituted an action in which he argued that the maintenance paid to him was both insufficient and “in conflict with the intent and purpose of the Supreme Court’s decisions imposing the maintenance requirement upon shipowners.”
Relying heavily on Gardiner, we affirmed the district court’s judgment in favor of the defendant. Id. at 588, 590. We began by noting that the duty to provide maintenance can be modified and defined by contract even if it cannot be entirely abrogated. Id. at 588 (citing Gardiner,
Al-Zawkari provides strong guidance for our conclusion that the district court erred. As set forth above, the CBA includes a maintenance rate of $8.00 per day. Therefore, a presumption that the rate was arrived at by negotiation attaches. See Al-Zawkari,
Although courts are not to usurp the collective bargaining process by selecting various portions of a CBA with which they do not agree and legislating particular dollar figures, see id., this is not to say that a plaintiff crew member can never overcome the presumption of negotiation afforded to the terms of a collective bargaining agreement. However, pursuant to Al-Zawkari, the burden properly rests on the plaintiff to produce evidence that a bona fide negotiation did not take place, that the CBA was unfair, or that he was not adequately represented.
Although the CBA here provides a different level of payment for ill and injured crew members, that distinction does not prevent Al-Zawkari from providing strong persuasive authority. The court below, focusing on that distinction, relied heavily on a decision by another district court that invalidated a provision that “discriminate^] between sick and injured sailors by withholding payment to sick sailors.” Vitco v. Joncich,
The district court’s application of Vitco to the instant case also runs afoul of Gard-iners holding that “when a benefits package includes an express reference to a precise rate of maintenance, the adequacy of this rate, considered in isolation, is not a subject for judicial speculation when the rate is part of a total package of wages and benefits resulting from the process of collective bargaining.” Gardiner,
Finally, we note that the district court also erred because Vitco is distinguishable from the instant ease. Indeed, the present dispute, unlike Vitco, see
The dissent’s several arguments in support of its conclusion that the district court should be affirmed fail to provide reason for us to depart from the overwhelming
But, undeterred by Al-Zawkari, the dissent continues by incorrectly stating, without authority, that the burden is on the shipowner to present evidence that the maintenance rate was specifically negotiated because “there is certainly no justification for making the seaman demonstrate an unfair procedure, as opposed to requiring the shipowner to demonstrate a fair one.” Dis. Op. at 496. The justification for placing the burden on the seaman, however, is the presence of the maintenance rate in a mutually agreed upon CBA that governs the relationship between the shipowner and the seaman. See Gardiner,
Several of our sister circuits afford the same presumption of negotiation as Alr-Zawkari in this context. Indeed, the Ninth Circuit specifically rejected the approach that the dissent employs today, as it noted that the plaintiff crew member in that case did not allege that the CBA as a whole was unfair or inadequate, which was “significant because we do not believe the rate of maintenance specified in the collective bargaining agreement can be examined in isolation.” Gardiner,
The dissent also asserts that it is “reluctant to give significant weight to the argument that the economic strength of unionized seamen requires the Court to
As stated above, our precedent, like that of our sister circuits, affords a presumption of negotiation to a rate of maintenance specified in a collective bargaining agreement and recognizes that it is not appropriate for courts to engage in legislation of dollar figures in connection with privately negotiated maintenance rates. Al-Zawkari,
III. CONCLUSION
For the foregoing reasons, we REVERSE the decision of the district court and REMAND the case for further proceedings consistent with this opinion.
Notes
. See Ammar v. United States,
. For many of the same reasons, we find unpersuasive the dissent's arguments that the district court should be affirmed because seamen are wards of admiralty courts and because neither the Supreme Court nor any federal appellate court has addressed the precise factual scenario of the instant case. We also note that this Court has rejected an argument similar to the one the dissent employs today. See Al-Zawkari,
Dissenting Opinion
dissenting.
The collective bargaining agreement presently before the court contains an unusual provision that discriminates between ill and injured seamen. This provision is inconsistent with the common law of admiralty, and at odds with the reasons why courts originally developed and protected seamen’s right to maintenance. The majority disputes none of this. Instead, the majority reverses the judgment of the district cоurt, relying almost exclusively on the holdings of Al-Zawkari v. Am. S.S. Co.,
This question in this case concerns the contours of a shipowner’s duty to provide maintenance and cure. “Maintenance and cure is designed to provide a seaman with food and lodging when he becomes sick or injured in the ship’s service.” Vaughan v. Atkinson,
“Maintenance refers to a shipowner’s obligation to provide a mariner with food and lodging if he becomes injured or falls ill while in service of the ship, while cure alludes to the duty to provide necessary medical care and attention.” Blainey v. Am. S.S. Co.,
There exist two classic and interrelated justifications for the right of maintenance: the protection of seamen, whose circumstances subject them to unique perils; and the promotion of a merchant marine, which is beneficial to the economic well-being of the nation as a whole. Vella v. Ford Motor Co.,
These considerations have undoubtedly influenced the Supreme Court’s view that maintenance is something other than a fully alienable right. As Justice Cardozo explained in Cortes v. Baltimore Insular Line, “[t]he duty to make such provision is imposed by the law itself as one annexed to the employment. Contractual it is in the sense that it has its source in a relation which is contractual in origin, but, given the relation, no agreement is competent to abrogate the incident.”
II
The Sixth Circuit, like the majority of circuits, has modified the common law of maintenance as applied to collective bargaining agreements. In Al-Zawkari, the Court held that while a shipowner’s “duty to provide maintenance cannot be entirely abrogated, as an implied contractual provision, the right to maintenance can be modified and defined by contract.”
Gardiner*s view rests on several justifications. First and foremost, this view harmonizes the doctrine of maintenance with the policies underpinning labor law. See Gardiner,
A closely related rationale has been offered by the Second Circuit in Amman Under Amman's, view, the chаnged economic circumstances occasioned by the labor movement have rendered the policies of Harden obsolete:
The modern reality is that most seamen are no longer “friendless”; rather, they have gained strength through collectivity, and they are a well-organized work force with sophisticated leaders who constantly press for better working conditions, pay, and benefits, as well as increased job security. Thus, the need for judicial intervention to protect seamen has been substantially lessened. Recognizing both the goal of providing protection for injured seamen and the importance of collective bargaining to industrial peace, we conclude that, in light of the reality of modern circumstances, the appropriate accommodation between federal maritime common law and federal common law for the enforcement of collective bargaining agreements is to allow unionized seamen to bargain for rights and privilegеs they prefer in exchange for limiting the per diem rate of maintenance.
Ammar,
Finally, in Al-Zawkari, this Court provided another reason for following Gard-iner, namely, the institutional limitations of the judiciary. Accordingly, “[c]ourts generally have decided that it is more appropriate for the courts to enforce privately negotiated contractual rates of maintenance, rather than engaging in overt legislation of particular dollar figures.”
Ill
The issue in this case is whether the common law of admiralty permits the CBA to distinguish between ill and injured seamen when setting the maintenance rate, where there is no indication that the distinction between ill and injured seamen was actually negotiated
New reported decisions have considered the propriety of distinguishing between ill and injured seamen.
The majority claims that the “critical” distinction between this case and Vitco is that Vitco involved an “entire abrogation” of the right to the earnings of the vessel. Majority Op. at 487. This distinction is implausible and artificial. Under the contract in Vitco, ill seamen were paid part, but not all, of their wages for the voyage, in derogation of their admiralty law right “to recover [their] full wages.” Pac. Mail S.S. Co. v. Lucas,
In any event, Vitco makes clear that the discrimination between ill and injured seamen was the primary problem with the collective bargaining agreement in that case. See
The Supreme Court has also declined an invitation to distinguish between ill and
[CJases of illness, which are within the reason and policy of the liability, are indistinguishable from cases of injury received without misconduct. The risk of incidence is not less in the one case than in the other. The afflicted seaman is made as helpless and dependent by injury as by illness. His resources for meeting the catastrophe and his employer’s burden are not greater because he is hurt rather than ill.
The Supreme Court has been equally unwilling to classify seamen in their entitlement to maintenance in other contexts. In Farrell, the Supreme Court rejected the contention that the amount of maintenance was dependant upon the seaman’s negligence.
Against this, there does not appear to be any case affirming a distinction between an ill and injured seamen’s entitlement to maintenance. Thus, the weight of the law counsels against distinguishing between ill and injured seamen in their right to maintenance. It remains to be considered whether the rationale of Gardiner, as adopted by this Court in Al-Zawkari, compels a different conclusion.
Insofar as Al-Zawkari is premised on the need to avoid overt legislation of a particular dollar figure, such a pоlicy is inapplicable here.
Likewise, we should be reluctant to give significant weight to the argument that the economic strength of unionized seamen requires the Court to acquiesce in the terms of the CBA, even when those terms are in tension with the common law of admiralty. See Ammar,
A closer question is presented by the argument that, much like in Al-Zawkari, the Court should enforce the terms of the CBA, provided that they derived from a negotiated collective bargaining process. Theoretically, there is no apparent reason why a fair bargaining process between two actors of approximately equal strength could not produce the collective bargaining agreement here. Nevertheless, I would not extend this reasoning to the facts of this case. In Al-Zawkari, the parties stipulated that the maintenance rate had been considered along with other matters during collective bargaining negotiations, giving rise to a presumption that the rate was arrived at through negotiations.
The nature of the provision at issue provides good reason to refuse to infer good faith negotiations solely from the CBA itself. The CBA speaks only to “injury,” leaving the lower rate paid upon illness to arise by implication. Whether this result was actually negotiated, or even intended at all, is not disclosed in the record. The CBA must be evaluated in its historical context, where distinctions between ill and injured seamen have rarely been offered, and never accepted. Nothing about the circumstances of ill and injured seamen immediately suggests a rational basis for distinction. See Aguilar,
IV
The majority’s leading argument against this analysis rests on a false cry of stare decisis. Majority Op. at 488 (“The dissent’s approach is contrary to this Court’s precedent, and for that reason alone, it must be rejected”). In order to conclude that this analysis conflicts with binding precedent, the majority latches on to Al-Zawkari’s statement that “when a benefits package includes an express reference to a precise rate of maintenance, it must be presumed that this rate was arrived at by negоtiation.” Id. (citing Al-Zawkari,
The majority twice references Al-Zawk-ari’s above-quoted statement to support its holding that any rate of maintenance occurring in a collective bargaining agreement must have been presumed to occur though collective bargaining. Each time, the majority omits the first part of the sentence. The complete sentence is: “The Gardiner court reasoned that ‘when a benefits package includes an express refer
A second consideration which persuades us the bargained for rate should be enforced is that the facts in this case demonstrate that there was real bargaining over the maintenance rate.... We hold that when a benefits package includes an express reference to a precise rate of maintenance, the adequacy of this rate, considered in isolation, is not a subject for judicial speculation whеn the rate is part of a total package of wages and benefits resulting from the process of collective bargaining.
Gardiner,
Thus, Al-Zawkari’s reference to a “presumption” of negotiation must be understood by reference to its factual background of actual negotiation. Were there any remaining doubt of this, a footnote, which occurs at the end of the quoted sentence, which the majority also omits, would seem to lay the matter to rest:
In the instant case, as in Gardiner, the rate of maintenance was the result of the negotiations conducted between the parties. It was stipulated that ... [“t]he daily rate payable for maintenance as well as all other matters properly the subject of collective bargaining were considered during negotiations in 1975,1978 and 1981.[”]
Al-Zawkari,
In effect, Gardiner and Al-Zawkari replaced the substantive guarantee of the common law of maintenance with a procedural one. This decision can certainly be justified. By its nature, the common law right to maintenance was perpetually uncertain and subject to adjustments in tandem with the cost of food and lodging. See Kenneth G. Engerrand, Primer on Maintenance and Cure, 18 U.S.F. Mar. L.J. 41, 90-91 (2006). Courts have been understandably hesitant to replace an agreed rate of maintenance with one that emerges through litigation if the agreed rate was generated by a fair procedure, which would bе abrogated by judicial intervention. But regardless of whether that reasoning should be extended to other aspects of the right to maintenance, there is certainly no justification for making the seaman demonstrate an unfair procedure, as opposed to requiring the shipowner demonstrate a fair one.
In its entirely unpersuasive attempt to argue that the seaman must shoulder the burden of demonstrating that collective bargaining procedures are unfair, the majority misunderstands the reasons for inquiring into the fairness of the CBA negotiations in the first place. The majority seeks to justify placing the burden of demonstrating an unfair procedure on the seaman on the grounds of “the presence of the maintenance rate in a mutually agreed upon CBA that governs the relationship between the shipowner and the seaman.” Majority Op. at 488. This argument, however, misses the essential point that the justification for allowing maintenance rates in a CBA to trump the protections ensured by the common law of admiralty is that the terms have been freely contracted to by both the shipowner and the seamen during a fair negotiation process. See Al-Zawkari,
In addition to its misplaced reliance on AV-Zawkari, the majority reasons that jettisoning the historical tradition of construing admiralty rights in favor of seamen is necessary in order to protect our national labor policy. According to the majority, court “intervention] in privately-negotiated CBAs ... rejects the reasoning” of this Court’s precedents; the conclusion that courts still have a role in protecting even unionized seamen “questions the premise upon which national labor policy has been built according to the Supreme Court.”
Because Defendant has not shown that a fair bargaining process was employed to abrogate the common law, I would not reach the more difficult issue of whether any procedure would be competent to allow enforcement of the CBA before this Court. While the majority does not appear troubled by this question, Gardiner, for one, suggested that Vitco would prevail in the case of discrimination between ill and injured seamen:
In Vitco, the district court invalidated a contract provision which allowed the employer to withhold the unearned wages of seamen incapacitated due to illness while preserving the unearned full wages for seamen incapacitated due to injury.... Unlike the contract in Vitco, “which without quid pro quo deprive[d] a seamen of wages because of unavoidable illness during the term of his employment,” the contract here does not abrogate a maritime right.
For the foregoing reasons, I respectfully dissent.
. The district court considered “the weekly $244.00 'contractual support benefit’ simply to be an increased maintenance payment for injured seamen.” Skowronek v. Am. S.S. Co.,
. The fact that so little law exists on this subject may itself be an indicator of the general tendency to consider the rights of ill and injured seamen to be coterminous.
. The contract provision at issue in Vitco stated:
In event illness incapacitates any crew member from further work on board the vessel, he shall be entitled to receive his proportionate shаre of the earnings of the vessel to the date and hour said member leaves the boat. Upon regaining his health, he shall be reemployed on the boat. During illness, such member may be substituted for by another man. An ill member cannot demand his share while ashore. This paragraph does not pertain to a member injured on the boat.
Vitco,
. The majority's citation to Al-Zawkari and Gardiner for the proposition that Plaintiff bears the burden of demonstrating unfairness is misplaced. As discussed above, neither case addressed this question, because in those
. It is noteworthy that the Supreme Court, when considering a unionized seaman’s right to maintenance, did not even consider the collective bargaining agreement worthy of mention, notwithstanding the fact that the court of appeals had discussed it. Compare Vaughan,
