Airgas USA, LLC v. Teamsters Local 773 and International Brotherhood of...
District Court, E.D. Pennsylvania
Airgas USA, LLC v. Teamsters Local 773 and International Brotherhood of...
Trial Court Opinion
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF PENNSYLVANIA
____________________________________
AIRGAS USA, LLC, :
Plaintiff, :
:
v. : No. 5:25-cv-3833
:
TEAMSTERS LOCAL 773, and :
INTERNATIONAL BROTHERHOOD :
OF TEAMSTERS, :
Defendants. :
_____________________________________
O P I N I O N
Local 773 Motion to Dismiss, ECF No. 10 - Denied
IBT Motion to Dismiss, ECF No. 12 - Granted
Joseph F. Leeson, Jr. December 19, 2025
United States District Judge
I. INTRODUCTION
Plaintiff Airgas USA, LLC initiated this action against Defendants Teamsters Local 773
and the International Brotherhood of Teamsters (“IBT”) pursuant to Section 301 of the Labor
Management Relations Act of 1947 (“LMRA”), 29 U.S.C § 185, for breach of a collective
bargaining agreement (“CBA”) between Airgas and Local 773. Airgas alleges that IBT acted in
concert with Local 773 to encourage employees to participate in a nationwide strike, in violation
of a no-strike provision in Article 13 of the CBA. Local 773 and IBT have separately filed
Motions to Dismiss the Complaint. For the following reasons, Local 773’s Motion to Dismiss is
denied, but IBT’s Motion is granted, with leave to Airgas to amend its claims against IBT.
1
II. BACKGROUND
A. Factual Allegations
Airgas is a corporation that supplies industrial, medical, and specialty gases, whose
industry affects commerce within the meaning of Section 301 of the LMRA. Compl. ¶ 8. IBT
and Local 773 are labor organizations representing employees in an industry affecting commerce
within the meaning of the LMRA. Id. ¶¶ 9-10. IBT Local 701 represented workers at Airgas’s
New Jersey facility, while Local 773 was the exclusive bargaining representative for Airgas’s
employees at the Allentown facility. Id. ¶¶ 10, 15. Airgas and Local 773 entered into a CBA,
which was effective from April 9, 2022, until April 8, 2026. Id. ¶ 13. Article 13 of the CBA
provides, in part:
Section 1 - No Strike, No Lock Out: Under no circumstances will the Union or
employees engage in, instigate, promote, cause, sponsor, condone, permit,
encourage, or take part in any strike, slowdown, sympathy strike, jurisdictional
strike, withholding of services, work stoppage, picket, curtailment of work,
reduction of production, or interference of any kind with the operations of the
Employer during the term of this Agreement. The Employer agrees not to conduct
a lockout of its employees during the term of this Agreement.
Section 2 - Pickets: Aside from any other language in this Agreement to the
contrary, it shall not be a violation of this Agreement, and it shall not be cause for
discharge, disciplinary action, or permanent or temporary replacement in the event
an employee refuses to enter upon any property involved in a primary labor dispute
or refuses to go through or work behind any primary line, including the primary
picket line of the Union party to this Agreement and including primary picket lines
at the Employer’s places of business. Furthermore, the Employer shall not direct
any employee to cross a primary picket line.
Id. ¶ 14; CBA, ECF No. 10-2.
On June 2, 2025, IBT Local 701 (in New Jersey) was unable to reach an agreement with
Airgas prior to the expiration of their CBA and went on strike.1 See Compl. ¶¶ 15-18. Local
1 The strike was ongoing when the Complaint was filed on July 24, 2025. See Compl. ¶ 18.
2
773’s shop steward, Joe Swanson, warned employees at the Allentown facility that a picket line
could appear outside the Allentown facility. Id. ¶ 26. She advised employees that the picket line
would work only if everyone participates, that the employees should drive by the picket line, and
that they should call Airgas to say they would not cross the picket line. Id. ¶¶ 26-27. Local 773
and IBT informed employees at the Allentown facility that they should not talk about anything
told to them about the picket line. Id. ¶ 28.
On June 25, 2025, picketers were outside Airgas’s Allentown facility with signs that said
“strike” and Local 701.” Id. ¶ 19. Airgas employees at the Allentown facility refused to cross
the picket line for work. Id. The picket line ceased a few days later, but returned on July 8,
2025, at which time Airgas employees at the Allentown facility again refused to cross the picket
line to work. Id. ¶ 20. The next day, Airgas sent a letter reminding Local 773 of its obligations
under the CBA and requesting information about the ongoing picketing and the Union’s
involvement in the picketing. Id. ¶ 21. Thereafter, employees crossed the picket line. Id. ¶ 22.
The picket line ceased on July 12, 2025. Id. ¶ 23.
On July 14, 2025, Local 773 responded to Airgas’s July 9, 2025 letter, stating that it did
not “encourage, request, or instruct employees not to cross the picket line” instead, it “advised
members of their rights” and asserted that “some members chose to exercise their rights” not to
cross the picket line. Id. ¶ 23. Local 773 further stated that it “has no specific information
confirming the origin of the pickets at the Employer’s Allentown facility” but “upon information
and belief, the pickets honored by the individual employees at the Employer’s Allentown Facility
[were] consistent with Article 13 of the CBA.” Id.
“On July 22, 2025, IBT publicly communicated that ‘[t]he Teamsters have expanded their
nationwide strike against Airgas,’ from facilities in North Brunswick, New Jersey . . . to
3
locations in other states, including Pennsylvania.” Id. ¶ 24. “The IBT stated that Airgas is
‘facing a major disruption to its operations’ as a result of these activities. Id. Also on July 22,
2025, picketers returned to the front of the Allentown facility. Id. ¶ 25. Airgas’s employees at
the Allentown facility refused to cross the picket line to appear for work. Id.
During the strike, Defendants paid employees up to $1,000 per week if they did not cross
a picket line. Id. ¶ 29. Airgas, which serviced, inter alia, medical facilities that require Airgas’s
products to treat patients, incurred additional costs exceeding $200,000 in order to continue
operating and delivering its products during the strikes. Id. ¶ 31. Airgas alleges its damages
resulted from Defendants’ actions, which violated Article 13 of the CBA. Id. ¶¶ 30, 33. Airgas
requests that “this Court issue a declaratory judgment that Defendants, by their acts and
conduct, have breached Article 13 of the CBA,” and “award Plaintiff monetary damages caused
by Defendants’ breaches of the CBA.” Id. at pp. 7-8 (prayer for relief).
B. Procedural History
On July 24, 2025, Airgas filed a Complaint against Local 773 and IBT, asserting two
counts: (1) declaratory judgment; and (2) breach of contract pursuant to Section 301 of the
LMRA. See Compl.2 On August 18, 2025, Local 773 and IBT separately filed a Motion to
Dismiss the Complaint. See ECF Nos. 10, 12. Airgas filed responses on September 2, 2025, see
ECF Nos. 16-17, to which replies were filed on September 9, 2025, see ECF Nos. 19-20, and
sur-replies on September 18, 2025, see ECF Nos. 25-26.
On September 23, 2025, this Court granted the joint motion of Local 773 and IBT to stay
the case pending conclusion of the arbitration proceedings involving whether Airgas’s
2 This Court has jurisdiction pursuant to 29 U.S.C. § 185(a), (c) (Suits by and against labor
organizations).
4
employees violated Article 13 of the CBA. See ECF No. 30. This Order was subsequently
vacated on November 3, 2025, and the stay was lifted. See ECF No. 34.
III. LEGAL STANDARDS
A. Motion to Dismiss, Rule 12(b)(6) – Review of Applicable Law
Under Rule 12(b)(6), the court must “accept all factual allegations as true [and] construe
the complaint in the light most favorable to the plaintiff.” Phillips v. Cnty. of Allegheny, 515
F.3d 224, 233 (3d Cir. 2008) (quoting Pinker v. Roche Holdings Ltd., 292 F.3d 361, 374 n.7 (3d
Cir. 2002)) (internal quotation marks omitted). Only if “the ‘[f]actual allegations . . . raise a right
to relief above the speculative level’” has the plaintiff stated a plausible claim. Id. at 234
(quoting Bell Atl. Corp. v. Twombly, 550 U.S. 540, 555 (2007)). “A claim has facial plausibility
when the plaintiff pleads factual content that allows the court to draw the reasonable inference
that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678
(2009). However, “the tenet that a court must accept as true all of the allegations contained in a
complaint is inapplicable to legal conclusions.” Id. (explaining that determining “whether a
complaint states a plausible claim for relief . . . [is] a context-specific task that requires the
reviewing court to draw on its judicial experience and common sense”).
“In deciding a Rule 12(b)(6) motion, a court must consider only the complaint, exhibits
attached to the complaint, matters of public record, as well as undisputedly authentic documents
if the complainant’s claims are based upon these documents.” Mayer v. Belichick, 605 F.3d 223,
230 (3d Cir. 2010). See also Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308, 322
(2007) (holding that “courts must consider the complaint in its entirety, as well as other sources
courts ordinarily examine when ruling on Rule 12(b)(6) motions to dismiss, in particular,
documents incorporated into the complaint by reference, and matters of which a court may take
5
judicial notice”); In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1426 (3d Cir. 1997)
(holding that “a document integral to or explicitly relied upon in the complaint may be
considered” (internal quotations omitted)). Courts may also consider “an undisputedly authentic
document that a defendant attaches as an exhibit to a motion to dismiss if the plaintiff’s claims
are based on the document.” Pension Benefit Guar. Corp. v. White Consol. Indus., 998 F.2d
1192, 1196 (3d Cir. 1993). The defendant bears the burden of demonstrating that the plaintiff
has failed to state a claim upon which relief can be granted. Hedges v. United States, 404 F.3d
744, 750 (3d Cir. 2005) (citing Kehr Packages, Inc. v. Fidelcor, Inc., 926 F.2d 1406, 1409 (3d
Cir. 1991)).
B. Section 301 of the LMRA- Breach of Contract
Section 301 of the LMRA provides a federal cause of action for “violation of contracts
between an employer and a labor organization representing employees in an industry affecting
commerce as defined in this Act, or between any such labor organizations. . . .” 29 U.S.C. §
185(a).3 “To fall within that section it is necessary only that the plaintiff be asserting a violation
of a contract between an employer and a union.” Davis v. Ohio Barge Line, Inc., 697 F.2d 549,
552 (3d Cir. 1983). “Absent a contract, jurisdiction over claims arising from an employer-labor
organization relationship is not vested in the federal courts.” United Mine Workers Int’l Union v.
G.M. & W. Coal Co., 642 F. Supp. 57, 60 (W.D. Pa. 1985).
Section 301 also “affords subject matter jurisdiction for declaratory relief as to the
meaning of the contract.” Wilkes-Barre Pub. Co. v. Newspaper Guild of Wilkes-Barre, 647 F.2d
3 “Although the Board has occasion to interpret collective-bargaining agreements in the
context of unfair labor practice adjudication, . . . the Board is neither the sole nor the primary
source of authority in such matters. Arbitrators and courts are still the principal sources of
contract interpretation.” Litton Fin. Printing Div. v. NLRB, 501 U.S. 190, 202-03 (1991)
(internal quotations omitted).
6
372, 380 (3d Cir. 1981). “Furthermore, cases like this [brought by an employer against a union
alleging breach of a no-strike provision in a CBA] are routinely brought under 29 U.S.C. § 185
and the Declaratory Judgment Act.” J. Ambrogi Food Distribution Inc. v. Teamsters Local
Union No. 929, 595 F. Supp. 3d 352, 363 (E.D. Pa. 2022).
IV. ANALYSIS
A. Local 773’s Motion to Dismiss is denied.
Local 773 asserts that because the actions of the Allentown facility employees (of not
crossing the picket line4) were permitted under Section 2 of Article 13 of the CBA, Local 773
may not be held liable under Section 1. This Court finds Local 773’s argument to be unavailing
because these sections in the CBA govern different conduct. Section 1 prevents both the Union
and employees from “engag[ing] in, instigat[ing], promot[ing], caus[ing], sponsor[ing],
condon[ing], permit[ing], encourage[ing], or tak[ing] part in any strike.” CBA, Art, 13. Section
2, on the other hand, explains that employees, who are not taking part in the strike,5 may not be
“discharge[d], discipline[ed], or . . . replace[d]” for refusing to cross a picket line, nor may the
employer “direct any employee to cross a primary picket line.” See id.
There would not be a picket line without a strike; therefore, the contention of Local 773
that because the employees had the right not to cross the picket line, there was no “strike” or
“slowdown” under Section 1, see Local Mot. 11, is also unpersuasive. Section 1 is not limited to
slowdowns or to strikes by the Allentown facility employees. See CBA, Art, 13 (prohibiting
conduct relating to “any strike”). Although Local 773 is correct that it may not be held liable
4 Local 773’s suggestion that the employees’ not crossing the picket line is “the underlying
action complained of,” see Mot. 9, misconstrues Airgas’s Complaint.
5 See CBA, Art, 13, Section 2 (“Aside from any other language in this Agreement to the
contrary. . . .”)
7
simply because employees refused to cross the picket line, that is not the breach alleged in the
Complaint. See, e.g. Compl. ¶¶ 26, 29.
The Complaint, alleging that Local 773’s shop steward, after informing employees that a
picket line was established at the facility, “warned employees . . . that the picket line will work
only if everyone participates” and also alleging that Defendants paid employees not to cross the
picket line,6 see id., is sufficient at this early stage of the proceedings to create a reasonable
inference that Local 773 promoted, sponsored, condoned, and/or encouraged the strike in
violation of the CBA. Local 773’s contention that it is not liable pursuant to Article 7, Section 2
for the “unauthorized acts” of its steward, see Local Mot. 13, is not appropriately before the
Court at this stage of the proceedings because it would require this Court to determine that the
actions of steward Joe Swanson were unauthorized. Similarly, its suggestions surrounding the
reason why Defendants paid employees who did not cross the picket line, see id. at 14-15, are
unpersuasive at this early stage of the pleadings where this Court is required to construe the
Complaint in the light most favorable to Airgas and may draw all reasonable inferences in favor
of Airgas. See Iqbal, 556 U.S. at 678; Phillips, 515 F.3d at 233.
Local 773’s Motion to Dismiss is therefore denied.7
6 This Court recognizes that Airgas’s allegations that Defendants paid employees not to
cross the picket line were made against Defendants collectively. See In re Processed Egg Prods.
Antitrust Litig., 821 F. Supp. 2d 709, 720 (E.D. Pa. 2011) (“Conclusory, collective language is
too convenient, too undisciplined, and too unfocused in light of exposures to litigation expense
and disruption (even without ultimate liability) that are so great in antitrust (and other) cases.”).
However, when combined with the specific factual allegations regarding statements made by the
shop steward, the allegations are sufficient to state a claim against Local 773.
7 Because the declaratory judgment claim is based on Local 773’s alleged breach of the
CBA, see Compl. ¶ 50 (seeking a “declaratory judgment that Defendants, by their acts and
conduct, have breached Article 13 of the CBA”), it too is sufficient to state a claim.
Local 773 also seeks to dismiss Airgas’s request for attorney’s fees, which this Court
denies at this early stage of the proceedings. See Brown v. Watson, No. 4:06-CV-2030, 2006
U.S. Dist. LEXIS 112801, at *11 (M.D. Pa. Mar. 12, 2007) (concluding it was premature to
8
B. The claims against IBT are dismissed without prejudice.
Initially, the Court notes that Airgas does/did not have a contract with IBT. See
SunDance Rehab. Corp. v. Kingston SNF, LLC, No. 3:12-CV-01162, 2014 U.S. Dist. LEXIS
197376, at *19 (M.D. Pa. Feb. 28, 2014) (“Generally, a breach of contract action may be brought
only against a party to the contract.”). Nevertheless, Airgas argues that IBT may be held liable
for breach under agency and alter-ego theories. See Opp. IBT 4, ECF No. 17. See also Granite
Rock Co. v. Int’l Bhd. of Teamsters, 561 U.S. 287, 309 (2010) (holding that the company could
“bring a breach-of-contract claim under LMRA § 301(a) against Local as a CBA signatory, and
against IBT as Local’s agent or alter ego”). Airgas suggests, in its opposition brief, that IBT was
acting as Local 773’s agent, that IBT and Local 773 were acting as alter egos, and that IBT
induced Local 773’s breach of the CBA. See id. at 5. However, there is absolutely no mention
of agency or alter ego in the Complaint, nor are there any allegations in the Complaint that would
support such a theory. See Clowney v. URS/AECOM, URS Fed. Servs., No. 3:17-223, 2019 U.S.
Dist. LEXIS 169074, at *26 (M.D. Pa. Sep. 30, 2019) (finding summary judgment in favor of the
international union appropriate where the plaintiff failed to “put forth any evidence of a common
law agency relationship between International and Local”).
Rather, in conclusory fashion, see Iqbal, 556 U.S. at 678 (holding that conclusory
allegations do not suffice to state a claim), the Complaint alleges that “Local 773, acting in
concert with the IBT . . . ” violated the CBA, see Compl. ¶¶ 5, 7, 35. These allegations are
insufficient because the Complaint fails to explain how they acted in concert. See Great W.
address the claim for attorney’s fees because the “question of attorney’s fees only becomes
relevant if Plaintiffs are ultimately successful on the merits of the case”).
9
Mining & Mineral Co., 615 F.3d at 176 (holding that the court does “not consider any
conclusory allegations that there was ‘a corrupt conspiracy,’ ‘an agreement,’ or ‘an
understanding in place between the Defendants . . . and that the plaintiff failed to allege, inter
alia, the approximate time when the agreement was made, the specific parties to the agreement,
the period of the conspiracy, or the object of the conspiracy).
The Complaint is also devoid of any factual allegations showing that IBT “instigated,
supported, ratified, or encouraged” Local 773 to breach the CBA. See Carbon Fuel Co. v. UMW,
444 U.S. 212, 218 (1979) (holding that the petitioner failed to prove agency as required by § 301
because there was no evidence that the international union “instigated, supported, ratified, or
encouraged any of the work stoppages”); Brenner v. Local 514, United Bhd. of Carpenters &
Joiners, 927 F.2d 1283, 1288 (3d Cir. 1991) (holding that an international union may be held
responsible for the unlawful conduct of its affiliated local union if it instigated, supported,
ratified, or encouraged such conduct). The only specific8 allegation attributed to IBT is a
statement it made on July 22, 2025, but this statement merely expresses facts- that the
“‘Teamsters have expanded their nationwide strike against Airgas’” and that “Airgas is ‘facing a
major disruption to its operations’ as a result of these actions.” See Compl. ¶ 24. Furthermore,
this statement shows only that IBT knew of the actions of Local 701, who is not a party to the
CBA at issue. Neither the July 22nd statement, nor any other allegations in the Complaint
suggest that IBT knew of the statements made by Local 773’s shop steward or of any of Local
773’s actions. Even if IBT had such knowledge, knowledge of “illegal activity on the local level
is not sufficient to impose a legal duty to intervene on the International Union.” See Brenner,
8 In the absence of any specific factual allegations of misconduct against IBT, Airgas’s
allegation that Defendants paid employees not to cross the picket line, which was made against
Defendants collectively, is insufficient to state a claim against IBT. See footnote 6 infra.
10
927 F.2d at 1289. IBT’s statement, alone, does not suggest that it instigated, supported, ratified,
or encouraged a work stoppage or any of Local 773’s behavior. See id. (concluding that the
internal union’s failure to step in and stop the illegal activity “does not show that the
International encouraged, authorized or ratified the actions of the Local”). The Section 301
breach of contract claim against IBT is therefore dismissed without prejudice.9
Having dismissed the Section 301 breach of contract claim (Count Two) against IBT, the
Declaratory Judgment Act claim (Count One), which seeks a “declaratory judgment that
Defendants, by their acts and conduct, have breached Article 13 of the CBA,” Compl. ¶ 50, is
also dismissed without prejudice as to IBT.
V. CONCLUSION
The allegations in the Complaint are sufficient to infer that Local 773 promoted,
encouraged, and/or condoned the strike at the Allentown facility in breach of Article 13, Section
1 of the CBA. Its Motion to Dismiss is therefore denied. On the other hand, in the absence of
any allegations showing that IBT, who is not a party to the CBA, instigated, supported, ratified,
or encouraged Local 773 to breach the CBA, its Motion to Dismiss is granted. The claims
against IBT are dismissed without prejudice.
A separate order will be issued.
BY THE COURT:
/s/ Joseph F. Leeson, Jr._____
JOSEPH F. LEESON, JR.
United States District Judge
9 See Alston v. Parker, 363 F.3d 229, 235 (3d Cir. 2004) (holding that “even when a
plaintiff does not seek leave to amend, if a complaint is vulnerable to 12(b)(6) dismissal, a
District Court must permit a curative amendment, unless an amendment would be inequitable or
futile”).
11
Reference
- Full Case Name
- Airgas USA, LLC v. Teamsters Local 773 and International Brotherhood of Teamsters
- Status
- Unknown