L791 Decision - Pyle Rome Ehrenberg PC
Transcription
L791 Decision - Pyle Rome Ehrenberg PC
•IN/tWA.N ,A1MRATION ASSOCIATION In **it.O., i6ttor.of firtiitkiken hetwerii UNIT].D VOQP ANA. ,CONlytERICA WORKERS:'UNION WORKERS LOCAL .79 _. . 0,k :..$04*$i.S:V.PL'IRMARKM.;.ING; • .. . $OUTOEANKFGION.s.FrORES:.4.*1:::.$TORR,IY1AITS .TOTANCE : •AAA Case Numbei 11 300 91564 .13 AWARD The •Colwaily..1'(„i0..1041Aittic10, .1.„2 •d Aiticle, 19 a. .0.10:201.3 •2017 Collootive Bargaining Agivnlenit W:tion „ it unilatorally laid off Maintenance EnvloAos 1111111.111, 11111M arisim and 1111111011111111., effective., 1)occtribQk 1, 2013. The parties 4411 have 90: days10 04.0,4 4:. xxydo.oty...4000robj.6 r.66.100y.'3:•.:Ifno agreernoig .4 roaohe4thio Arbitrator will pad .-aroin6.4. :,e) . Robort 114:• ()Trion, Mg. Arbitrator Datc:1; April 13, 2015 AMERICAN ARBITRATION :AS S OCIATION In the matter of arbitration between: UNITED. FOOD AND COMMERCIAL , WORKESUNILCA791 SHAW'S. SUPERMARKETS.; INC. SOUTHERN REGION STORES AND STORE MAINTENANCE :AAA:Case:Nunibei: • 11.:360.1010418'... : ciiovoco .Efiiniix:aff041 . 0f.00.:.M:4100:10.0k.0:. :)pp4ttitOra. . For UTCAVI,j. LOCal 791: Tod A'. Cochran, Esq. Pyle, Rome Ehrenberg, )C. ,For Shaves Supermarkets, ,Ine: Robert p. Joy, Esq. Morgan, Orown a. joy, LLP STATEMENT OF THE ISSUE, As :franted by the ,arbitrat -or,:the following issues must be decided herein: Did the company vtolgq:1110.20.15. IT Cp1Wvq. . Bargaining Agreement when it eliminated to 'Maintenance :Department effective Deeenibr 1, 2.013? . If so, what shall be the remedy? PERTINENT CONTRACTUAL PROVISIONS ARTICLE 12 SENIORITY f411.41me.e.inti1.OYee.s 1.4ia (tff Of.:10.42of *otk.:*116n. no othei, full time work is avam1abe shall be 411.9wocl to bump by semouty Full time Employees- laid-off because of lack of mirk when no other full-time work is available shall be offered part-time work at the applicable rate thereto • ARTI CL E' 1 0 MAINTENANC ' A. Maintenance Provisions: ,4, A. ,MaintenanceEinployeeS.shall have a:separate Seniority unit; Eipployoosin.maintenatee.aS,.0 July 21 , 1979 will haye 'thpfy •date of as their seniority dte, Employees entering. the Maintenance Department, thereafter, shalt have tha date Of entry as their seniority date; This seniority is f.c.).:i.compotitivd-jAirok.611) (Choice of vacation, :day'-tiff) •$...:TheAkork, Week for•Maintenance E mp l oyees•hh:e cl or• • . 1.'985::;.0*11...be.fe):114We•tiict•OP:klall. •(• , •il.*:hot.go:oet:*ek-,.:fiy:o, (5) .4y$..time 4114 (1,4) after ,eight (8) hours 11.14daY forty 4O) houis in a week, thirty-two (32) and twenty-four hOitis in. Week. with . two ,M.holido8f.... . holidays. Moatet019q , or appoiri,tedafter July 26, 190. shall work eight KhOJO!.0:4m:foo (40) how a• weO14. 014y079;:041.1out$. :14:46)liao,** -:ttAttyqat 'PO. • • hours, in !•4.,:•week. with two (2) honk*. Tho.Thilbhggites:16 arkimt 140:comppyto . offor.4.4 da 10 hour per 4.4y . work woOk schedule 'existing Maintenance EinpIoyees:,.o4 a voluntary -buts .onV - . New hires itt.fh&MaintenanCe netialitnent may be scheduled op. a week schedule, .:(7ncea: new hire is put'4:daylbhonkperw on thi 4c 1Q 014060,4v vat Shift,will be ellininated in the aintienancePepartment.,„i,,,, - • • " • , . • .. •,:opolotea'Tiripr; •• • • r • • . 11, • 'The parties agree:that :4 current Maintenance Employe es - • vacate theit: positions: they will not be replaced. • • . .• •. ARTICLE 21 IN/IANAPEIVIEN.T The Employer retains the sole *I to manage its business • includin g, without restricting the foregoing, the rights to decide the functions to be POlforrned the method of operations, , to lay-off, recall and transfer Employees for , legitimate business reasons , • . subject only to such regulations and restrictions governing the axeroise of these rights as are expressly provided it this Agreement. 1994 SIDE AGIREE1V1 Outside Contracting . . ,,I1A;POinpanyagr.00 .to:1`.011,0*.:*tn :c r. .e.t*PrOtiejtiregardSto workfor;a*.lttenanco-;40partingit persoinel, .hnt,the. Vnion:•aelcnOwleriges'that. the may be:tithes ''vh`eif:..84-OUtside, - • .icontraCOb'eld-UPi:atg.OfSelnid:•' BACKGROUND' SliaW'S,'Suparinarkets Ito. (hereinafter referred as Shaw's Or the dotomy): 'operates appreklinately 155 retail stores: and :several warehouses The . retail stores are Operated tinder the banner 0 C "Shaw's Supermarkets" and "Slat Market?' In March 201i,' the Company was purchased by New Albertson'S.1.1C. The United I'Jood and (opamercial N,Vorlers Union Local 791 (hereinafter referred to as the Union or LOcal 791) . represents approximately 3000 full-tithe and parttime employees who work at Shaw's stores in Tour Massachusetts counties,' the state of Rhode bland a warehouse in East Bridgewater, , Massachusetts and seven Maintenance Department employees.. The dispute at hand involves Shaw's Maintenance Departinetit employees Who serviced the Company's southern region stores, 41allaing. the non,union :stores and the .stores where employees are represented by Local 791, Until the Maintenance Departtnent w.as eliminated, effective December 1, 201j„ there were 17 non-union employees in the Maintenance Department 44 seven employees who have been represented by Local 791 since the 1960's, •"itc • Pt• -•oP flye of the 'seven ;bargaining %mit lvlaitit,Oarice•:Et ..lp.16,yees:PrinaiitY'Se.rlieed: . , : • • . , 'refrigeration :units •and're'.cioters: at retail stores. TheY:;arelieened" -:Aefrigeration: • • Tbe Othef..1W.6.,:eirip.10Y,e0 Wee:g.eneral:Nle.ehati4 , : wbO ., performed general maintenance at Shaw's .store 'frotl epairirig floor tiles to plumbing. . , • , Each Refrigeration Mechanic had primary responsihiliry for: .$4aw's stores it a certain geographic area. They also served as a backup for adjacent geographic areas if the primary employee was unavailable to 'respond to a service call, The Maintenance Employees worked :a regular 42 hour work:week, which included two -hours of:oyertitne: The Company used outside vendors to :augment the Mainteriatice:Department EmpioyeeS., According to the COmpOly., Outside vendors responded to over 60%. of the service , calls for its southern region stores. The ,seven Maintenance Employees also worked 'considerable overtime, Management 'prioritizes, service calls, -A priority 1 serviCe . Mil Must be responded .• • ' .• t.• • ' to immediately,::. Apribrity.2 Call must be:restionded.,to• by the .end of the day, Priority 3. " •.• • •. " • • : • . • . . • • eall can usually wait .,for between 24 ..and 4,8 ':hours, Maintenance Employee who . primarily serviced the store from *elite ealtematated•waS 'unable • to respond to the 064 analor Witallanee• Employee was given the call If o. Maintenance: Employee. was available,. the service call *8 given to an outside vendor; . After Albertson's purchased the Company in March 2013,. the new Shaw's :President directed 111.111mg. the. COMpaty's Direct& of Maintenance, : to tevieiv.all :W. determine if it was :economically feasible to . aspects of the Maintenance Department continuo operating the Oepartrnent. According to the new President, "we are in the • grbeety:buSitiesS, not the Inaintenatiae business...P. -= . maitombe Einplayeeg hired Or appointed after July 26, 1985,'work ,A tegolg 40 hour work week, 'While irc•stiPvi of th .tY/4fAte.naA6Q r.)epartment , waS:progresSing y .the parties Were in negotiations for a•sno.cessor Co11666e Bargainifig .,Agrieenietit to the 2008 - 2013 Agreement that was due to expire on August 2013 . NPgoOlations1Vgan on .11-1AP• 10.52013, and Ooneluded on Angnst • 2; 413.. ManagenieriespriMaty Objective in the negotiations wag to gain greater flexibility to assign. General Duty Clerks in its stores, Store managers were psoaily not .permitted to assign General Duty Clerks to different departments .0XQqt h an emergency, T hp Company wanted to ternove that restriction and give store managers more flexibility to , assign General •.f,) Ity Cleric's between departments Within a. Store. Both parties ,agree that there `Wag very limited discussion of the Maintenance Department during the negotiations; NeVertheiPss the Company did make several proposals that impacted. th'9. Depi.tmord.. :Pot instance, Article l2 Section B, in 2008- 2013 Agreement provided, in pertinent part, that: when Fulltime employees' laid off because of lack . other . . . . ;work available'Aga allowed to bto101.■yonibrii - .tho least Senior employee in a :ilower rated . clasflcation• • " dJune 1. 0, 2013, the got do of negotiations, the Company proposed to rprnoyP . the :language 4`.-; lack pliwork when no other full time wok is available," The Union ..rejected the :proposal. • The Company agrees that this proposal was .intended .0'44406 g,4optsion by Arbitrator Arnold Zak4 dated June 15, 2005, involving the parti.s.' 2001 ,.2004 Collective Bargaining Agreement. Article! 12, .Section B , in that Agreement 18 i0elltiC01 to the above 4tpc*d language in t he 2008 2013 Arbitrator Zack found that • bar94iiiing unit employees : can only be laid off 41.te to ack await., Arbitrator Zack ordered the affected employees to be rode whole for earnings .164 . . On June 10, 4.114.0mp.o.y. 01$Q.pr.o.pood.tci:01100,Araele c o) •.. . . . . . . • 19. , (MWrdem •• by addlog.a . norgootio.:4:4ifcafts.:: 27. • Proposed :. . . . Phange. .• the *)i.:00. 4,00.0Y . . .• . . ny. 0'04• PO :montopolgq.ogrowimit . toprovid4for. 1.4 Atatten.011,0 . . •. .1.10,43!:, the, th e COnpanyinay:u ttlizethe,thirdpartkeompany'.s: •:s.orvioesj.Win... ottilenzin'oioiOr. e0o*,' ,..0.-4."hoi.,:folo.4 Aro: qbove .every effort will b e made to provide regular :empl oyment. before - th0.1*drkits:pojfewtoctook . The (!ompuo, ..14.q.11. discuss work (0 be Ontrapte..04i with tho•-• Union Prior and provide tfio.Un'tokthoppportanitty..4 :provide .alternative rnethads-topOefoot the.:iyo.r14 )2411121.4g, katgo64#kilidt -10.000,;..:..TIA• Areemcnt does not alter any existiktg sub.- dontr 404 woricl.hdt is currently b elog , ': ..perfOrnied This dowenent.00mpRthents; any Other .,.agreeitiehtk Made between the art1es on the subject, ofiWbootaiotipti • • ;!, • The .Colitpany, eontendsthat:it made this ,proposal to gain more tlexiNity use outside contractors mintotl'onm'arlditp.**Ork at its stares. The Union reieet6d:the..*.opoo: a1,. • On hue t0;•2011,. the .Corripany also proposed to elhnivatetp:t99.4 Side • Agreement regarding e.4tside.eoti.tr.401.nglitholOnteanee•Depattnieht and to substitute 4 new sentence. The Side Agreement would read: The Company shall, have the right to utilize .outside , contractorsfor (is vaintenonee , needs. The I3nion ' .41soE rejoefed, this proposal, As noted above, there Was little, if any,' discussions about these proposals shape the paeles. were preoccupied With the matter of the General Duty Clerks. The Coopagy withdrew all threo•PrOPOsals'onngnSt:I;:.: • ••, • %. •• .„.20.13;. . • .• • the last.4. aY • .of fieptiatiOns, •• • did 4#e0 to 8119W company proposal - add'the following sentence to: Miele 19. -(Maintenance): IL The patties agree That as .current ganteiVoco Employees vooaki their pnsltiolo they will . 1,2,ot. be e'epoel,„ •On August Collective Bargaining • Agreement Based, on the above addition to Article 19, the Union assured the seven , • • • • . '. • .. • . Maintenance Departrnent Employees that they would not lose their jobs for the duration of the four year contract. At their departmental ratification meeting, the Maintenance Department Employees ratified the Contract, In October 2013, gervesseempleted his review of the Maintenance Department. His review revealed that between 60% and 10% of 'service Calls to the southern tni,Qn ,stores wel. e• completed by outside yendoi s. . recommended that .the Maintenance . of this, Mn Mil Department be eliminated ghod It viro,:ilOt financially feasible to cOritiriii.6 the in-house Department, . 'Upper management adopted his recommendation. Ott.NOvein-bor. 11, 2013,. the Union was notified that the Maintenance Department would be abolished and that all 24 positions in the Department would be eliminated, effective Decemb er 1, 2013. A contentions meeting was bold with the employees on November 12, 2013, where Mr. gni explained the Company's :decision, 11111111111 arranged for the 24 Maintenance Department employees to be interyievved by vendorgthe Cornpn4 intended, to . use for the service calls in the ,southern region stores. The Company has maintenance service agreements with five vendors who service the refrigeration and cooler units and perform general maintenance in the stores • formerly ,80rvioect by igaintetialioe Department EtnployeeS The VOA(lotg also serV106 other stOres. Foner.R.CfrigeratiOnlViechanie 41111111111111was hired by:HtisSinan Service Corporation, one of the Vendors retained by Shaw's to respond to service calls regarding refrigeration in the southern region stores, 111111111101111 and by another vendor, Duquette 5.4 Sons. And T who services Shaw's and employment were hired was hired by a third vendor also obtained ISon diort tprnj cflsability On November14,2.01,...the'Unionflled* .grievanee protestingihe;COMpany's =purported improper s ubcontracting of Maltitenane e. :Wor6rS- jobs and the to.y off soen. bargaining unit employees in violation of the -just c' one-laded ,Collective Bargaining Agreement The Union requested that the Maintenance Wci*OtS , be reinstated and be made whole in every respect. The parties Weed 0 prO0eed4iTeetlY to stop three of the grievance procedure. The matter could not ne 'resolved and the Union appealed itto arbitration, The Union also filed an unfair labor practice &a-1'SO with Region I. of the National Labor Relations 13oard: (NLRB) on November 12, 2013i claiming that Shales violated the National Labor. Relations Act when it unilaterally eliminated its Maintenance Department and laid off Kcipn' bargaining unitt employees without notice to the Union and an , opportunitY to bargain to'iMpasg6. The Union Antler alleged that the Company's conduct also repudiated the . parties' recently negotiated collective bargaining :agreement On Deceinher ,201 3 the NLRB: •deed the unfair labor arbitration puoliatif to its conior Hearings were held before the undersigned Arbitrator On July A .2014 ;,pel. JanuarY12, 2015, The Union and the Company.stibinitted -pest-hearing briefs,. BaSed on , : „ .,',; . ..•.' the plethora Of evidence and arghti4.erits .advaneed by the Union and, the Company this Arbitrator heroby.renderS the following decision, VINDINGS AND .OPINION• What must be decided heroin is whether :the SovenlViaintenance Employees. were laid off' offet.tiVe•T)ceerriber .1. :20.13..,. and.:ifthey.• . We.relaid..Off waS it.becattseOflaek of work If they were not laid off because of 4 lack of Werk,.then their layoffs violated Article 12 (Seniority) of the 2613 . .72017 Collective Bargaining Agreement and they are entitled to a remedy. The Company's :teasorting that the grievants were not 'laid off boddoo it • . pilithiate a function (ift,hott$OftiohltoftatioO)':i4 .41fficolttO•follOw.. Regardless of the teaSOri, goVoti bargaining . 'oat ;04340og bat their jobs at Shaw s. They :loath* work;: • •• •wages,benefitS•and:etherE.errioluments,.eemplOyrnent 13y 411y- rhea:atm.. this was k layoff. • The 2005 .deci$ion of Arbitrator Arnold Zack is applicable to the grievants, In that grievance, haw's wanted to rebalance its ratio of full time and part-time bargaining unit clerks.. That decision resulted in the elimination of 205 clerical positions, Fifty-eight (58) clerks were laid off and the remainder accepted part-time positions, Arbitrator Zack rejected the Company's argument that its decision was perrnissible:under Article 2.1 (Management) of the 'parties' 2001 2004 Collective Bargaining Agreement because it was made for a legitimate business reason, He resolved the apparent conflict between Article 12 (Seniority). and Article 21 (Maftagement). Arbitrator Zack observed that tho.gerwrarlartguage in Article 21 IS "sUbjeet only to ,suCh regOlatisM and reStrictions governing the exe,rclse of these "managerial] rights as ate' expressly provided in this Agreement. Arbitrator Zaek concluded :that the protections set forth in Article 12 :were express restrictions on the Company's management rights under Article 12, His reasoning is , persuasive. Arbitrator Zack found that the layoff provision and protections embodied in Arftclo 12, '$Oothatt B are triggered whoi:1 there is :a lack .0f .work for full-time employees, He bpifted. that 410ek of wore Is the only reason :fot which ftill ,time employees may be laid off, As Arbitrator Zack aptly phi aSed it triggering lack.ofT0ork requirement of Artzcl 12i.ettiait4.$' the benehmarkpr :kat:11010g suokti3Offt!! Arbittatot Zack :determined that what happatod to the clerks in the °age before WM. Wa$ clearly a layott, otlet the fayaf. was. hot dud to -a lack of W.0*. He erdered them to be made whole for their lost earnings,, The Zack Award was well reasoned, in this Arbitrator's opinion Arbitrator Zack juxtaposed the language in Article 21 (Management) WO the language In Article 12, Section B (Seniority) and correctly concluded that the specifie terms of Article 12 were restriction on Shaw's management's rights 'under Article 21, This Arbitrator finds it significant that the parties negotiated two Collective Bargaining Agreements (2008 - 2013 arid 2013 2.017) shto Zaok Award but made no substantive changes to either Article 12 or Article 21 in either contract; The Company did attempt to reverse the Zack Award in the 2013 negotiations but was not successful, In the hot of Arbitrator Zack's reading of A.rtieler 12 and Article 21 ; the question that must now be decided is whether the seven Maintenance Employees were laid off, pffeotive.Deceraber 1, 2013; becauso:there was no Wbilk fot theni,, At the eonnhentertietit , of arbitration onNW •. n, 2014, the Cor44ity .4p11' Qke,d. tO..agrc;Ool.'kt . . OoSItiOris of the etnploydes in its ! Maintenance Department .were not elitainatoci becatis6 of lack of work for :them In any event, full time work was available for them when their positions wore. , eliminated, it is undisputed that all. Of the maintentine4 6.ti4tt'fiig'efati .6ii. ikd&ifioi was perforated by t40pyort:g40;tozlaii:o:Birtplio:00$ inifapt, three of „: • : . "still• being perfOilap4.: : these former •employees gp.:*t .toitIg cooling and .rofxlsormioii units in many of the , satne, 8haw''S! Stores where they were assigned ptio. to December 1, 2013 Shaw's cannot ..operate its supermarkets : without maintaining its cooling arid : units and other • equipment The only change effected after December .1, 2013,:• is that outside vendors are now doing the work that isottnel,' $hayy''S oop-107..004tc1:: In addition to Atti,(10 14 the new paragraph 11 added :to Article 19 of the 2013. : 2017 Colleetive : i3argaitii4g..A :gioOtagt-pOteotod Maintenance Employees from being laid off, in this Arbitrator's . • opinion, Atthst- 4.2013,.the last' day. of negotiations,. the Company proposed to oxid the following language to Article 19 , (Kalutonario0.: 11 The pottfoolagi'00 that as 'current MaintenailOe Employees vacate thoirpositiolOthey 14411 not be plade The 'Onion ,accepted theiproposal and it WO embodie d iit,Ardolo 19', Four months later, all the maintenance positions were unilaterally eliminated Whether this constituted 'bad faith bargaining.is 'for -the..NLRB to decide. - At:del:613 -Of the2013 2017 ColleCtive , of this Arbitrator "to deciding if a Bargin4AemtXpslyinheauort violation of the Agreement lia$ occurred" Since there was little, if any, :discussion of the Company's proposal on August 2, 20.1'3 ; what theCompany's Is ;unOloari• I. . . ; intent was When it submitted this. proposal , Mariagement had the right. under Article 21: to eliminate the Maintenance Department :ag. it claims, this proposal. was mot needed, 'it is ax iomatic that expeieneed negotiators de. not Make contract proposals that Seiye. no. pUrPOSei : ; * Since there is no bargaining , history, the Company's proposal must be :c OnStrued as it is Plainly ..kittPA.: . . the, seven , . . TiTiO, P1,9*W'411OWS the'cOIPPany V.. -, eliminate . ,. : bargaining unit Maintenance FluployeeS by 'attrition When'theyVaeate their positions,, , the Company does not have to replace theM, That is what the Plain ;language ;says and that is what it mustmeau, For;all the foregOing reaSons this Aibitrator finds that Slia:cv's violated Article 12 and Articlo .19 of the 2013 2017 ColloetiVe.Bargaining Agreement when:it uuilateraliy laid off 1.11114, MEM" 11/10.1111 and 111.111111111111116, 1111111 effective December 1, 2013. A COMM.tin remedy for this violation would bean order reinstating these employees to service and ..• •„ ''.'• 'make them Whole fer Jost earnings and benefitS.. However, there , are .sozte unusual circumstances in this.porticular 'grievance that may -Warrant a ;different remedy, . For:install* four of the laid off Maintenance. E' mployees were hired by the Veridors:;rotaited by Shaw's at an hourly tate, Of pay, higher than the •$32. , 05:/hent they Were last paid at $haw's;, 1-lovVeVer,, they contend that their vacations, ,health care and pensions are :less advantageous than similar 13.etieft they received when they wotkoct o and-Shaw tp4040.1).. a. mutually acceptable' remedy, : will retain jurisdipticn or ..p...p.pdp4, •.date hereof tl.).:0e.Y.01.1.t .:tilatte:'..M.i4Uatly aeeeptable. remedy is . . . . . . . . 90 days . In that mtlw . . will dilact a remedy. AWARD The Company /.10.14ted Article 12 and Article 19 .of the 2013 ; 2017 ColleetiVe Bargaining Agreement IA f- ilen it unilaterally laid off the grievau, Th parties will have •9:0.days:to ágreiientdhed' this. •Arl;likator will enact Robert .1\4 . '07)3ri,en; . . R.§4, • Arbitrator .Dated il 1.3,:29.11.:5 , •