American President Lines, Ltd. v. International Longshore & Warehouse Union
American President Lines, Ltd. v. International Longshore & Warehouse Union
Opinion of the Court
ORDER AND OPINION
[Re: Motion at docket 88]
I. MOTION PRESENTED
At docket 88, defendant International Longshore and Warehouse Union, Alaska Longshore Division, Unit 60 (“Defendant” or “ILWU”) moves pursuant to Federal Rule of Civil Procedure 56 for summary judgment. Plaintiff American President Lines, Ltd. (“Plaintiff’ or “APL”) opposes the motion at docket 94. Defendant’s reply is at docket 100. Neither party requested oral argument, and it would not be of assistance to the court.
APL operates marine terminals in Alaska and ocean-going vessels that transport cargo. APL’s primary port is in Dutch Harbor. APL is part of a multi-employer bargaining unit known as the Alaska Maritime Employers Association (“AMEA”). The only other current member of the AMEA is Horizon Lines. Prior to 2003, North Star Terminal and Stevedore Company (“North Star”) and Southeast Steve-doring Company (“SES”) were also part of the AMEA.
The ILWU is a labor union that represents all longshore workers in specified Alaska ports, including the Port of Seward. Unit 60 is a constituent unit of the ILWU that represents longshoremen in the port of Seward.
The AMEA and the ILWU are parties to a collective bargaining agreement known as the All-Alaska Longshore Agreement (“AALA”). North Star and SES are also parties to the AALA: prior to 2003 they were parties through their affiliation with AMEA and after 2003 they were individual signatory employers.
The AALA covers “[a]ll movement of cargo on vessels, or loading to and discharging from vessels of any type and on docks or to and from railroad cars.”
APL’s large vessels cannot access many of Alaska’s smaller ports, including the port in Seward. As a result, APL enters into connecting carrier agreements (“CCA”) with barge operators to move APL’s export product from these smaller ports to Dutch Harbor. APL has a CCA with Samson Tug and Barge (“Samson”), pursuant to which Samson uses its barges to transport APL’s shipping containers between Dutch Harbor and Seward. At Dutch Harbor, APL uses ILWU labor to load its empty containers onto Samson’s barges. Once in Seward, Samson employees unload the empty containers on the docks for APL customers to fill with their export products, and then Samson employees reload filled containers on the barges to be transported back to Dutch Harbor. ILWU employees unload the containers from Samson’s barges once they are back in Dutch Harbor.
Samson is not a member of AMEA, nor is it an individual pai'ty to the AALA. It does not employ ILWU labor in Seward but, l-ather, has its own woz-kforce there. Its employees are represented by the Ma-zine Engineers’ Bezieficial Association (“MEBA”) union. For some period of time prior to 2003, before it had its own workforce in Seward, Saznson used North Star as a contractor to perform cargo handling in Sewai’d. North Star, at that time a member of the AMEA and at all times a party to the AALA, used ILWU labor for that work. APL has never had any cargo-handling operations or eznployees of its own in Seward, and it is undisputed that ILWU labor never directly pez-formed any cargo-handling operations for APL in Seward.
Arbitration was held based on written submissions in September 2006. The Alaska Arbitrator issued an award in the ILWU’s favor, concluding that the AALA’s work preservation provision required that APL assign the disputed work in Seward to the ILWU.
In the fall of 2008, after a full hearing, the Alaska Arbitrator concluded that there was no compelling evidence presented that would modify or change his original arbitration decision that the AALA required APL to assign its cargo-handling work in Seward to the ILWU.
Rather than transition the work to the ILWU as ordered, APL continued to make “in-lieu-of ’ payments and appealed the renewed decision, arguing that implementation of the Alaska Arbitrator’s award would require it to violate section 8(e) of the National Labor Relations Act (“NLRA”).
APL filed an unfair labor practice charge with the National Labor Relations Board (“NLRB”). It alleged that the arbitrator’s award violated section 8(e) of the NLRA. and that the ILWU violated sections 8(b)(4)(ii)(A) and (B) of the NLRA
III. STANDARD OF REVIEW
Summary judgment is appropriate where “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”
The moving party has the burden of showing that there is no genuine dispute as to any material fact.
IV. DISCUSSION
APL brings suit against the ILWU pursuant to section 303 of the LMRA
A union’s actions will not be deemed coercive under section 8(b)(4) if the purpose of those actions are aimed at preserving work for its employees in the bargaining unit (primary union activity), rather than accomplishing union goals elsewhere (secondary union activity).
A union’s pursuance of a grievance through arbitration can be considered coercive under section 8(b)(4) if that griev-anee is based on an interpretation of a collective bargaining agreement that furthers an unlawful object.
Here, APL argues that ILWU’s interpretation of the AALA — that requires APL to use ILWU labor in Seward for cargo handling — is an unlawful one because it necessarily results in a de facto union signatory requirement for Samson or forces APL to cease doing business with Samson. The ILWU asserts that its interpretation of the AALA work preservation provision is a lawful prohibition on employers from subcontracting outside the bargaining unit, which is a broadly defined unit consisting of all ILWU represented longshore workers in a multi-port area used by the multiple employers who are parties to the AALA.
The ILWU’s interpretation of its contract rights is colorable given case law
The Second Circuit found that the agreement was not an unlawful union signatory requirement, concluding that it lawfully prohibited subcontracting outside the bargaining unit in order to preserve work for the bargaining unit employees.
Based on Bermuda, an agreement that prohibits subcontracting outside the bargaining unit by requiring contracting employers to hire bargaining unit employees either directly or indirectly through other signatory employers can be a lawful work preservation agreement in situations like here, where the bargaining unit consists of a multi-port, multi-employer pool of longshore workers. Indeed, APL concedes that a union contract can lawfully
Thus, the court concludes that the interpretation of the AALA sought by the ILWU was not clearly unlawful: it did not necessarily amount to a hot cargo or union signatory agreement. The remaining issue is whether the ILWU’s interpretation of the AALA can be considered a lawful work preservation agreement as applied to the work in question. As noted above, the court must consider whether the cargo-handling work in Seward was fairly claimable by the ILWU and whether APL has control over the work in question.
The Alaska Arbitrator made findings of fact that resolve these two issues when he considered whether APL was in violation of the AALA. He found that ILWU workers had previously performed the disputed cargo-handling work in Seward and that APL had the right to control the assignment of its cargo-handling work.
APL argues that the court cannot defer to the Alaska Arbitrator’s findings of fact because it is not challenging the Alaska Arbitrator’s decision regarding the contract under section 301 of the LMRA but, rather, is challenging the union’s conduct under section 303. It argues that the limited judicial review and deference required under section 301 has not been extended to section 303. It cites to Old Dutch Farms, Inc. v. Milk Drivers and Dairy Employees Local 584,
While this dispute was brought pursuant to section 303, APL’s claim for damages is not entirely separate from the underlying contract claim that was the subject of the arbitration. APL’s claim for damages arose from the ILWU’s prosecution of contract grievances, and APL argues that ILWU advanced an unlawful interpretation of the applicable contract when pursuing arbitration against it.
Even disregarding the Alaska Arbitrator’s findings, the court concludes that the agreement as construed by the ILWU has a lawful work preservation purpose given the undisputed evidence on the record. When looking at the nature of the work involved, the focus is on the work of the bargaining unit employees.
APL argues that the work is not fairly claimable because the work done by the ILWU in Seward was not on behalf of APL. This court agrees with the NLRB General Counsel in that it is irrelevant whether or not the work was performed for APL specifically
APL appears to find it significant that North Star is only an individual signatory to the AALA and is no longer a part of the AMEA, the organization that negotiates the collective bargaining agreement on behalf of APL. Even if the bargaining unit employees should be narrowed to those ILWU members doing work for the AMEA employers, at the time North Star used ILWU labor to do loading and unloading work in Seward it was, in fact, a member of AMEA along with APL.
Not only is the disputed loading work in Seward fairly claimable by the ILWU, APL has the right to assign such work to the ILWU. As noted by the ILWU in its briefing, the evidence shows that APL “controls where APL’s containers go, when they go, where they go, when they get there, and who takes the m.”
Given that the cargo-handling work in Seward is fairly claimable by the ILWU and that APL has the power to assign such work to ILWU workers, the interpretation of the AALA advanced by the ILWU and adopted by the Alaska Arbitrator is a lawful work preservation interpretation, and thus, there is no violation of section 8(b)(4)(ii). APL’s section 303 claim fails as a matter of law.
V. CONCLUSION
Based on the preceding discussion, Defendant’s motion for summary judgment at docket 88 is GRANTED. The Clerk of Court will please enter judgment for the defendant.
. Doc. 91 at p. 15 (Ex. A at p. 4); Doc. 96-1 atp. 5.
. Doc. 91 at p. 45 (Ex. A at p. 34); Doc. 96-1 atp. 36.
.It is disputed whether ILWU indirectly performed cargo-handling work for APL; the parties disagree as to whether Samson was transporting APL cargo when it contracted
. Doc. 91 at pp. 111-120 (Ex. B).
. Doc. 91 atpp. 122-127 (Ex. C).
. Doc. 91 atp. 149 (Ex. G).
. Doc. 91 at pp. 155-56 (Ex. H at pp. 5-6).
. Doc. 91 at pp. 155-56, 157 (Ex. H at pp. 5-6, 7).
. 29 U.S.C. § 158(e).
. Doc. 91 at pp. 162-163 (Ex. I at pp. 4-5).
. 29 U.S.C. § 158(b)(4)(ii)(A), (B).
. Doc. 96-15.
. Doc. 91 atp. 168 (Ex. K).
.Doc. 91 atp. 173 (Ex. L).
. 29U.S.C. § 187.
. Fed.R.Civ.P. 56(a).
. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).
. Id.
. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).
. Id. at 323, 106 S.Ct. 2548.
. Id. at 323-25, 106 S.Ct. 2548.
. Anderson, 477 U.S. at 248-49, 106 S.Ct. 2505.
. Id. at 255, 106 S.Ct. 2505.
. Id. at 248-49, 106 S.Ct. 2505.
. 29 U.S.C. § 187.
. 29 U.S.C. § 158(b)(4)(ii)(A), (B).
. 29 U.S.C. § 158(b)(4)(ii)(A).
. 29 U.S.C. § 158(e); see also Am. President Lines, Ltd. v. Int’l Longshore and Warehouse Union, Alaska Longshore Div., Unit 60, 721 F.3d 1147, 1152 n. 3 (9th Cir. 2013).
. 29 U.S.C. § 158(b)(4)(ii)(B).
. NLRB v. Int'l Longshoremen’s Ass’n, AFL-CIO ("ILA II"), 473 U.S. 61, 74-76, 78-79, 105 S.Ct. 3045, 87 L.Ed.2d 47 (1985).
. Id. at 81, 105 S.Ct. 3045.
. NLRB v. Int’l Longshoremen’s Ass'n, AFL-CIO ("ILA I”), 447 U.S. 490, 504, 100 S.Ct. 2305, 65 L.Ed.2d 289 (1980).
. See Nelson v. Int’l Bhd. of Elec. Workers, Local Union No. 46, 899 F.2d 1557, 1562 (9th Cir. 1990), overruled on other grounds by Miller v. Cal. Pac. Med. Ctr., 19 F.3d 449 (9th Cir. 1994); Truck Drivers, Union Local 705 v. NLRB, 820 F.2d 448, 452 (D.C.Cir. 1987).
. ILA I, 447 U.S. at 504, 100 S.Ct. 2305.
. 192 F.3d 250 (2d Cir. 1999).
. Id. at 256-57.
.Id. at 257.
. Id.
. Id.
. ILA I, 447 U.S. at 504, 100 S.Ct. 2305.
. Doc. 91 at pp. 111-120; Doc. 91 at p. 149; Doc. 91 at pp. 155-56.
. 721 F.3d at 1157 n. 7.
. 359 F.2d 598 (2d Cir. 1966).
. Id. at 602-03.
. ILA I, 447 U.S. at 507, 100 S.Ct. 2305.
. Doc. 91 (Ex. L).
. Doc. 91 at p. 134 (Ex. D at p. 6).
.Doc. 91 at p. 139 (Ex. D at p. 11).
.Doc. 91 (Ex. F).
Reference
- Full Case Name
- AMERICAN PRESIDENT LINES, LTD. v. INTERNATIONAL LONGSHORE AND WAREHOUSE UNION, Alaska Longshore Division, Unit 60
- Cited By
- 4 cases
- Status
- Published