Gerald Austin McHugh, United States District Judge.
This case arises out of a labor dispute, and the Employer involved seeks a declaratory judgment that the Collective Bargaining Agreement (CBA) does not permit the Union to proceed to arbitration over a purported grievance. Specifically, Plaintiff Jones Lang LaSalle Americas, Inc. ("Employer" or "JLL") contends that the Court should rule that the labor dispute in question is not substantively arbitrable under the relevant section of the CBA, because the Defendant Union, the International Brotherhood of Electrical Workers Local Union 313 ("Union" or "Local 313"), failed to comply with the required grievance process. The Union contends that an arbitrator should decide both the underlying labor dispute and whether the Union complied with the grievance procedure that is a threshold requirement for arbitration. The Parties' Cross-Motions are granted in part and denied in part. I hold that the dispute is substantively arbitrable and further
The essential and controlling facts are undisputed. Plaintiff JLL operates two facilities in Delaware, and Defendant Local 313 is the exclusive bargaining agent for certain employees at those facilities. JLL and Local 313 are parties to a collective bargaining agreement (CBA) that took effect on December 1, 2014. Def. Ex. A, ECF No. 49-1. The CBA includes an Agency Shop Clause that addresses employees' payment obligations to the Union as well as a provision regarding dispute resolution. Id. Section 26, entitled "Settlement of Disputes" specifies that:
Def. Ex. A, ECF No. 49-1 at A000017.
In 2011, a dispute arose between Local 313 and another union regarding dues deducted
On September 15, 2015, Local 313 sent a second letter to JLL. Pl. Ex. 2, ECF No. 47 at A101. The letter referenced the Agency Shop Clause and expressed Local 313's belief that "JLL has a continuing obligation to terminate all employees that have not paid such fees and are in violation of said article." Id. It enclosed a list of the employees in question and requested their termination. On September 22, 2015, JLL replied with a letter expressing an understanding that Local 313 would attend the next mediation session in October 2015 and stating that JLL representatives would also be present. Pl. Ex. A, ECF No. 47 at A104. JLL did not terminate the employees as requested by the letter, and Local 313 did not file a formal grievance after the September 15 letter. The second mediation session occurred in October 2015, but the competing unions failed to reach an agreement. JLL and Local 313 then engaged in direct discussions to no avail and, on January 27, 2016, the Union sent the American Arbitration Association (AAA) a letter, indicating that the parties had an "unresolved dispute relating to Agency Fees." Pl. Ex. A, ECF No. 47 at A106. JLL then took the position that no grievance had been properly submitted because it characterized the September 15 letter as merely a request "that Jones Lang LaSalle take action which Local 313 believes is required by Section 10 of the parties' collective bargaining agreement." Pl. Ex. A, ECF No. 47 at A107. Local 313 contends that its September 15 letter constituted a grievance under Section 26 of the CBA. JLL subsequently filed this action, seeking to forestall arbitration.
These Motions for Summary Judgment are governed by the well-established standard in Federal Rule of Civil Procedure 56(a), as amplified by Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). When addressing cross-motions for summary judgment, the standard remains the same. Appelmans v. City of Philadelphia, 826 F.2d 214, 216 (3d Cir. 1987). The parties disagree about the arbitrability of a dispute under their CBA, but neither party debates the validity or contents of the CBA. Because no material fact is in dispute, the issues are purely questions of law for the Court.
Both parties return to an issue previously litigated: whether this Court or the arbitrator has jurisdiction to determine whether the dispute is arbitrable. The Employer urges the Court to hold that it has the jurisdiction to determine whether the dispute is substantively arbitrable, a conclusion consistent with previous rulings in this case.
I turn now to the issue of substantive arbitrability. The parties disagree about the precise question at issue. The Employer contends that whether a grievance was submitted, as required for arbitration, is itself a question of substantive arbitrability for the court to address. It cites to the provision of the CBA that requires the submission of a grievance before invoking arbitration and argues that it cannot be deemed to have consented to arbitration if the Union has failed to grieve. The Union responds that the only question for the court is whether the underlying dispute regarding the interpretation and application of the CBA's Agency Shop Clause is substantively arbitrable, with all other matters reserved for the arbitrator.
Cases raising arbitrability require the application of principles that can seem circular in their logic. The lead case addressing substantive versus procedural arbitrability is John Wiley & Sons, Inc. v. Livingston, 376 U.S. 543, 84 S.Ct. 909, 11 L.Ed.2d 898 (1964). There, the Supreme Court held that "[o]nce it is determined, as we have, that the parties are obligated to submit the subject matter of a dispute to arbitration, `procedural' questions which
The Employer here relies heavily on Phila. Printing Pressmen's Union No. 16 v. International Paper Co., 648 F.2d 900 (3d Cir. 1981). There, a union sought to compel arbitration but had not, as required by the CBA, submitted any written grievance or allegation of a violation of the CBA. Id. at 902-03. The Court of Appeals held that the requirement that the grievance be reduced to writing was not a "mere procedural formality," and the union could not "skip the entire grievance machinery" specified in the CBA. Id. at 904. JLL argues that Local 313 likewise skipped the entire grievance process. In Phila. Printing Pressmen's Union No. 16, however, the only written communication submitted was a request to reconsider the termination at issue, which the union did not contend was a written grievance. Id. In contrast, Local 313's September 15 letter refers to the Employer's "continuing obligation" under the CBA, and unlike the union in Phila. Printing Pressmen's Union No. 16, Local 313 specifically characterizes the September 15 letter as raising a grievance.
Local 313 in turn relies on Becton Dickinson & Co. v. Dist. 65, United Auto., Aerospace, & Agric. Implement Workers of Am., AFL-CIO, where the union had attempted to comply with the CBA by sending a letter to inform the company it may be in violation and requested a meeting to address the violations. 799 F.2d 57, 59 (3d Cir. 1986). The Third Circuit held that the arbitrator should decide whether the union's actions were sufficient to invoke the arbitration process. 799 F.2d 57, 61 (3d Cir. 1986). The Court in Becton distinguished Phila. Printing Pressmen's Union No. 16 because in Becton "the Union did not totally fail to follow the grievance procedure." Id. at 60-61. Although Local 313's September 15 letter is not a model of clarity and does not allege violations of the CBA as explicitly as the letter in Becton, its reference to the Agency Shop Clause more closely resembles the letter in Becton than the total failure to comply with the required process in Phila. Printing Pressmen's Union No. 16.
Additional Third Circuit precedent not cited by the parties supports the view that whether the Union complied with the grievance process is a procedural matter for the arbitrator. Troy Chemical Corp. v. Teamsters Union Local No. 408 concerned a CBA that provided for arbitration as the third step in a grievance process that required initial submission of a written grievance. 37 F.3d 123, 125 (3d Cir. 1994). The union in Troy had failed to submit any written grievance before initiating arbitration, and the employer, like JLL here, sought a declaratory judgment that the case was not arbitrable due to failure to comply with the process. Id. at 124-25. The Third Circuit treated the question about compliance with the grievance process as a purely procedural matter, which the District Court should not have reached once it found that the underlying dispute was substantively arbitrable. Id. at 126-27. Specifically, after holding that the dispute was substantively arbitrable, it held that whether the parties had "waived steps 1 and 2 of the grievance procedure was a question of procedure for the arbitrator and not for the court." Id. at 126; see also Bell Atl.-Pa., 164 F.3d at 201 n.4 (citing numerous cases, including Troy, to support proposition that, once an underlying dispute
In the current case, where the issue concerns the sufficiency of the Union's attempt to comply with the grievance process, the combined weight of Troy, Becton, Bell, and Chauffeurs leads me to conclude as a matter of law that the question of compliance with the grievance process is a procedural matter to be decided by the arbitrator. To the extent that Troy and Phila. Printing Pressmen's might appear difficult to reconcile, it bears mention that Troy has been cited numerous times, including four times by the Third Circuit itself, whereas Phila. Printing Pressmen's has only been cited by the Third Circuit for the purpose of distinguishing it, in Becton.
The controlling question is "whether the parties had in fact agreed to arbitrate the subject matter." Troy, 37 F.3d at 126. Section 26 of the CBA reads, "Should a difference or dispute arise between the parties hereto as to the interpretation or application of this contract, it shall be resolved in accordance with the following procedure...." Def. Ex. A, ECF No. 49-1 at A000017. The dispute in question concerns the interpretation and application of the CBA's Agency Shop Clause and JLL's obligations under that clause. The parties do not disagree about the nature of that dispute, nor do they dispute the content of the CBA. The Agency Shop Clause is a provision of the contract, and thus the dispute about its interpretation and application falls within the scope of the arbitration clause. The dispute is substantively arbitrable, and the arbitrator must therefore decide the procedural question of the Union's compliance with the grievance process.
With respect to whether the Court has jurisdiction to determine substantive arbitrability, the Employer's Motion for Summary Judgment is granted and the Union's Motion denied. But having found the dispute substantively arbitrable, the related procedural question whether Defendant has fully complied with the grievance process is for the arbitrator to decide. Accordingly, as to the issue of ultimate arbitrability, the Union's Motion for Summary Judgment is granted, and the Employer's Motion is denied.