Steelworkers & Its Local 275 v. Oxbow Calcining, LLC
Steelworkers & Its Local 275 v. Oxbow Calcining, LLC
Opinion of the Court
RULING
This matter is before the Court on cross motions for summary judgment filed by each of the parties.
I. BACKGROUND
United Steelworkers and its Local 275 (collectively “Union”) and Oxbow Calcining, LLC' (hereinafter “Oxbow”) are parties to a Collective Bargaining Agreement (201’3 CBÁ) that is effective'from April 25, 2013, through March 31, 2016.
The Union contends that the amended language requires Oxbow to contribute $1.00 in matching funds for every $2.00 an employee contributes to his or her 401(k) until Oxbow’s matching funds amount to 10% of the employee’s salary.
The parties have now presented- the Court with cross-motions for summary judgment. The Union seeks summary judgment on its claim that its grievance
II. LAW
A. Summary Judgment Standard
“The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is. entitled to judgment as a matter of law.”
Notably, “[a] genuine issue of material fact exists, ’if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.’ ”
As previously noted, this case arises under Section 301 of the LMRA. One of the basic tenets of interpreting arbitration clauses in labor-management contracts “is that '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.’”
Recognizing the limited roles courts serve when deciding issues of arbitrability, the Fifth Circuit in Paper, Allied-Industrial, Chemical and Energy Workers International Union Local No. Ip-%001 v. ExxonMobil Refining & Supply Co., instructed that “[t]he court’s function is to decide whether the claim asserted is the type of claim the parties have agreed to arbitrate.”
III. ANALYSIS
The parties -in this case disagree about whether the arbitration' clause within the 2013 CBA applies to the present dispute. The Union maintains that “the presumption of arbitrability applies here because [Article XXV of] the CBA contains a broad arbitration provision.”
The relevant provisions of the CBA at issue are:
Article XXV of the 2013 CBA sets forth the Arbitration procedure in pertinent part as follows:
A. Any dispute, difference, or grievance between ,the parties arising under the terms of this Agreement, but not including any desired or proposed change in .the terms of this Agreement that shall not have been satisfactorily settled by the operation of the grievance procedure outlined in Article XXIV above, may be submitted to arbitration by the Union by giving written notice to [Oxbow] within thirty (30) days after [Oxbow’s] third step written answer.35 * * * *
■Article XXXII Of the 2013 CBA entitled Insurance, Pension, Retirement and Savings (401(k)), and Other Benefit Plans, provides as follows:
•C: The' parties agree to comply with and bé bound by all of the terms and provisions of the Retirement Savings Plan (401(k)) as currently in effect and as may be amended from tim’e to time. [Oxbow] will amend ■ the" current 401(k) to provide that ■ effective in 2014 [Oxbow] will match ■fifty percent' (50%) of the employ•ees’ eligible contributions up to a maximum of ten percent (10%) of salary—36
E. The information hr this Article is a summary of Plan benefits. If there is a conflict between this document and any of the Plan documents, the terms of the- Plan document, govern.37 ■
A. Presumption pf Arbitrability
The parties do not dispute that the 2013 CBA contains an express agreement to arbitrate.- Article XXV(A) of the 2013 CBA specifically states that “[a]ny dispute, difference or grievance between the parties arising, under the terms of this, Agreement, ,... that shall not have been satisfactorily settled by the operation of the grievance procedure outlined in Article XXIV ... may be submitted to arbitration by the Union by giving written notice to [Oxbow] within thirty (30) days after [Oxbow’s] third step written answer.”
B. Has Oxbow Rebutted the Presumption of Arbitrability?
In response, Oxbow argues that the “presumption of arbitrability is overcome by the clear language of both the CBA and The [401K] Plan” and the Fifth Circuit’s decision in Local Union No. 4-449, Oil, Chem. & Atomic Workers Union, AFL-CIO v. Amoco Chem. Corp. (hereinafter ’Amoco).
In Amoco, the sole issue before the court was whether the defendant-company breached the CBA by refusing to arbitrate three grievances concerning the company’s refusal to' pay certain sick-pay benefits. The union and defendant-company were parties to a CBA and a separate Disability Benéfíts Plan, which was incorporated into the CBA. The Amoco court began its analysis by examining the relevant provisions of the CBA and the Plan. Article VIII of the CBA contained the following provision which provided for the payment of sickness and disability benefits:
Benefits with respect to sickness and disability shall be payable in accordance with the Company’s Sickness and Disability Benefits Plan as presently in effect except that an employee will be paid holiday pay in place of sick leave pay for a holiday falling on a normally scheduled day of work, but which normally would not have been worked by the employee.45
The decision of the Board of Directors of the Company -on any matter concerning the administration of this plan as a whole or as applied to any specific case [sjhall he final and the Board reserves the right to interpret, apply, amend or revoke this Plan at any time.46
The union argiied that its grievances regarding sick pay benefits “must be arbitrated since there [was] no express exclusion of sick pay benefits from arbitration in the [CBA].”
While the Fifth Circuit did not reach the issue of arbitrability, remanding it instead to the district court, it explained its disagreement with the dissenter, who would have vacated the arbitral award on the grounds that the arbitrator exceeded his authority because the term wages.in the CBA’s arbitration clause cannot encompass the dispute over the 401 (k) match suspension.
In its analysis, the Houston Refining court suggested that the current state of the law for determining whether a grievance is 'arbitrable could be summarized as follows:1
A dispute is arbitrable if the dispute concerns a direct violation of a right under the CBA, rather than a challenge to a determination of an employee’s eli*1010 gibility for benefits under the benefits ■plan. This principle recognizes the importance of the source of the disputed right, and, furthermore, prevents clashes between arbitration and disputes governed by the Employee Retirement Income Security Act (ERISA).55
The Houston Refining court also distinguished its decision from Amoco.
First, the court noted that, unlike Amoco, the union’s grievance in Houston Refining did not involve a challenge to the denial of benefits under a 401(k) plan, which would have fallen within the express purview of the company’s benefits committee, that had been charged with administering and interpreting the 401 (k). Plan. Instead, the union’s grievance alleged that the company’s procedure for amending the 401(k) plan — a unilateral amendment — violated its obligation under the 2006 CBA. The court reasoned that, “[h]ad [the] Union' members sought to enforce their rights under the 401(k) Plan, then the [benefits] Committee could certainly ’interpret and apply’ that Plan,” taking it out of the purview of the CBA’s grievance and arbitration process.
As discussed in Houston Refining, this case hinges on the Court’s determination of the “source of the disputed right.”
IV. CONCLUSION
For the foregoing reasons, the Motion for Summary Judgment
IT IS SO ORDERED.
. Rec. Doc. 10 and Rec. Doc. 12.
. Rec. Doc. 16 and Rec. Doc. 17.
. Rec. Doc. 21.
. Rec. Doc. 10-3, p. 2, ¶ 3; Rec. Doc.. 16-1, p. ■ 2, ¶ 3.
. The Union "represents the production, laboratory and maintenance employees of the Company at the Company’s Baton Rouge facilities for the purpose of collective bargaining over wages, hours and other terms and conditions of employment.” Rec. Doc. 10-3, p. 1, ¶ 2; Rec. Doc. 16-1, p..2, ¶ 2.
. :Oxbow’s plant "receives raw petroleum coke from oil refineries” and “then processes that coke by removing moisture through a series of kilns and then sells the end product.” Rec. Doc. 10-3, No. 1, p. 1, ¶ 1.
. Rec. Doc. 12-5, p. 34.
. ' In its Complaint, the Union specifically alleges: '"Orí or about January 14, 2014 the Union filed Grievance Number WS 011414 disputing the Company’s interpretation and application of Article XXXII.C.” In its Memorandum in Support of its Motion for Summary Judgment, the Union goes into great detail articulating how its "view of the CBA’s . 401 (k) match language” differs from Oxbow’s interpretation and application of the language. Rec. Doc. 12-1, pp. 4-5.
. In application, Oxbow achieved its obligations under the 2010 CBA by "contributing ■ $ 1 for every $2 contributed by the employee until the employee had contributed up to six percent of his or her salary, at which point [Oxbow’s] matching contributions totaled three percent of the employee’s salary.” Rec, Doc, 12-3, p. 2, ¶ 8.
. Rec. Doc. 12-8, p.2; Rec. Doc. 10-4, p. 1,
. Rec. Doc. 12-12, p. 2; Rec, Doc, 12-8, p.2; Rec. Doc. 10-4, p. 1.
. Rec. Doc. 12-8, p. 2.
. Rec. Doc. 12-9. The Union’s Grievance was given Grievance Number “WS011414.” In its . Grievance, the Union described the “Nature of Complaint or Grievance” as follows: “The Union was notified on January 3, 2014 that the Company would limit its contribution to an employee's 401 (k) Plan account to 5% of the employee’s 10% contribution. The Collective Bargaining Agreement negotiated in 2013 states that 'the company will match fifty percent (50%) of the employees’ contribution up to a maximum of ten percent (10%) of salary as provided in the Plan.” The Union explained that it sought the following “Remedy”: “The 401 (k) Plan provisions are clear and unambiguous. The Company must comply with the negotiated language. Further, the Company must malee whole any employee(s) that are adversely impacted because of the Company’s non-compliance with the 40l(k) Plan contributions.”
. Rec, Doc. 1.
. Fed.R.Civ.P. 56(a) (West 2015).
. Delta & Pine Land Co. v. Nationwide Agribusiness Ins. Co., 530 F.3d 395, 398-99 (5th Cir. 2008)(citing Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 150, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000)).
. Guerin v. Pointe Coupee Parish Nursing Home, 246 F.Supp.2d 488, 494 (M.D.La. 2003)(quoting Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir. 1994)(en banc)(quoting Celotex Corp. v. Catrett, 477 U.S. 317, at 323, 106 S.Ct. at 2552, 91 L.Ed.2d 265)).
. Rivera v. Houston Independent School Dist., 349 F.3d 244, 247 (5th Cir. 2003)(quoting Morris v. Covan World Wide Moving, Inc., 144 F.3d 377, 380 (5th Cir. 1998)).
. Willis v. Roche Biomedical Laboratories, Inc., 61 F.3d 313, at 315 (5th Cir. 1995) (quoting Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir. 1994)(internal quotations and citations omitted)).
. Pylant v. Hartford Life and Accident Ins. Co., 491 F.3d 536, 538 (5th Cir. 2007)(quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)).
. Galindo v. Precision Am. Corp., 754 F.2d 1212, 1216 (5th Cir. 1985).
. RSR Corp. v. International Ins. Co., 612 F.3d 851, 857 (5th Cir. 2010)(citing Ragas v. Tenn. Gas Pipeline Co., 136 F.3d 455, 458 (5th Cir. 1998)).
. Nat'l Ass'n of Gov’t Employees v. City Pub. Serv. Bd. of San Antonio, Tex., 40 F.3d 698, 713 (5th Cir. 1994)(quoting Anderson, 477 U.S. at 249, 106 S.Ct. 2505) (citation omitted)).
. AT & T Technologies, Inc. v. Commc’ns Workers of Am., 475 U.S., 643, 648, 106 S.Ct. 1415, 89 L.Ed.2d 648 (1986)(quoting United Steelworkers of Am. v. Warrior & Gulf Nav. Co., 363 U.S. 574, 582, 80 S.Ct. 1347, 4 L.Ed.2d 1409 (1960)) (hereinafter AT &T ).
. PDG Chem. Inc. v. Oil, Chem. and Atomic Workers, 164 F.Supp.2d 856, 860 (E.D.Tex. 2001).
. AT & T, 475 U.S. at 650, 106 S.Ct. 1415.
. Id. (quoting United Steelworkers of Am. v. Warrior & Gulf Nav. Co., 363 U.S. 574, 582-83, 80 S.Ct. 1347, 4 L.Ed.2d 1409 (1960)).
. Houston Refining, L.P. v. United Steel, Paper and Forestry, Rubber, Mfg., 765 F.3d 396, 412 (5th Cir. 2014)(quoting Smith v. Transp. Workers Union of Am., AFL-CIO Air Transport Local 556, 374 F.3d 372 (5th Cir. 2004) (citation and internal quotation marks omitted)).
. Paper, Allied-Industrial, Chemical and Energy Workers International Union Local No. 4-2001 v. ExxonMobil Refining & Supply Co., 449 F.3d 616, 619 (5th Cir. 2006)(quoting Oil Chem. & Atomic Workers’ Int’l Union, Local 4—447 v. Chevron Chem. Co., 815 F.2d 338, 343 (5th Cir. 1987)).
. Id. (quoting United Steelworkers of Am. v. Am. Mfg. Co., 363 U.S. 564, 568, 80 S.Ct. 1343, 4 L.Ed.2d 1403 (I960)).
. Id. at 620 (quoting Commc’ns Workers of Am. v. Southwestern Bell Tel. Co., 415 F.2d 35 (5th Cir. 1969)).
. United Steel, Paper and Forestry, Rubber, Mfg., Energy, Allied Indus, and Serv. Workers Int’l Union v. Noranda Alumina, LLC, No. 13-5059, 2015 WL 858589, at *15 (E.D.La. Feb. 27, 2015)(quoting Paper, Allied-Indus., Chem. and Energy Workers Int’l, 449 F.3d at 620)).
. Rec. Doc. 12-1, p. 8.
. Rec. Doc. 17, p. 4.
. Rec. Doc. 12-4, p. 32.
. Rec. Doc, 12-4, p. 36.
. Rec. Doc. 12-4, p. 37.
. Rec. Doc. 12-4, p. 32.
. Rec. Doc. 12-4, p. 32.
. AT & T, 475 U.S. at 650, 106 S.Ct 1415.
. Id. ("Such a presumption is particularly applicable where the clause is as broad as the one employed in this case, which provides for arbitration of 'any differences arising with respect to the interpretation of this contract or the performance of any obligation hereunder.”)
. Rec, Doc. 12-4, p. 32.
. Rec, Doc. 10-1, p. 8. Local Union No. 4— 449 Oil, Chemical, and Atomic Workers Union, AFL-CIO v. Amoco Chemical Corp., 589 F.2d 162 (5th Cir. 1979)(hereinafter "Amoco”).
. Houston Refining, L.P. v. United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union; United Steel Workers Local Union No. 13-227, 765 F.3d 396 (5th Cir. 2014)(hereinafter "Houston Refining'),
. Amoco, 589 F.2d at 163 (emphasis added).
. Id. (emphasis added).
. Id. at 164.
. Id.
. Id.
.Id.
. Houston Refining, 765 F.3d 396 (5th Cir. 2014).
. Id. at 399.
. Id. at 411.
. Id.
.Id. at 415 (emphasis added). The court explained that it "must ask whether any interpretation [of the CBA] could bring this dispute within the ambit of the arbitration clause.”
. Id. at 414.
. Id. at 415.
. Id.
. Rec. Doc. 12-4, p. 36.
. Rec. Doc. 12.
. Rec. Doc. 10.
Reference
- Full Case Name
- UNITED STEELWORKERS AND ITS LOCAL 275 v. OXBOW CALCINING, LLC
- Status
- Published