IRENE M. KEELEY, UNITED STATES DISTRICT JUDGE.
Pending for consideration are cross motions for summary judgment filed by the plaintiff, International Union, United Mine Workers of America, and Local Union 1702, United Mine Workers of America (collectively "Union"), and the defendant, Monongalia County Coal Company ("Company"). For the reasons that follow, the Court
The Company operates the Monongalia County Mine (the "Mine"), an underground coal mine located in Monongalia County, West Virginia. The Union represents the Company's bargaining unit (union) employees for purposes of collective bargaining. The Company and the Union
Sometime in 2014, the Company began operating a continuous mining schedule, meaning that employees mined coal twenty-four hours a day, seven days per week. (Dkt. No. 1-1 at 5). The Company established three crews to work a traditional Monday to Saturday schedule, with the crews rotating off every third Saturday. A fourth crew schedule was established so that production could continue on Sundays.
The continuous schedule presented certain difficulties, among which was the replacement of the heavy duty steel cables used to hoist mined coal to the surface, also known as "skip ropes."
Two skip rope changes are at the center of this matter. The first occurred during the twelve-hour time period beginning with the second shift on October 21, 2014, and running into the midnight shift on October 22, 2014. The second occurred during the twelve-hour time period beginning with the second shift on November 8, 2014, and running into the midnight shift on November 9, 2014. For each skip rope replacement, Preparation Plant Supervisor, Roland Smith ("Smith"), scheduled them only a few days in advance after being told by the Mine Superintendent that production would be halted during those time periods.
The Union filed two grievances, arguing that the skip rope changes are jurisdictional work that can only be performed by union employees under Article IA(a) of the CBA, which provides:
Work Jurisdiction —
Alternatively, the Union contended that, even if the work did not fall under Article IA(a), it would still be "repair and maintenance
Repair and Maintenance Work —
According to the Union, even if it was repair and maintenance work, the slip rope replacement was work that union employees always performed, and were readily available to perform in this instance; thus, the CBA barred the Company from contracting it out to NexGen.
Conversely, the Company argued that the work was clearly repair and maintenance work, not jurisdictional work under Article IA(a), and, as such, it could contract the work to NexGen because union employees were not reasonably available during the relevant times.
On June 12, 2015, Arbitrator Michael L. Allen ("Arbitrator"), consolidated the two grievances and conducted a hearing with the parties, during which they presented exhibits and witnesses for examination and cross examination. (Dkt. No. 1-1). On July 10, 2015, the Arbitrator entered his Arbitration Award ("Award"), ultimately finding that the Company violated the CBA when it contracted out the subject work to NexGen.
On March 31, 2016, the Union filed suit in this Court, claiming that the Company has failed to comply with the cease-and-desist order in the Award. (Dkt. No. 1). Specifically, the complaint alleges that the Company has continued, as recently as February 26, 2016, to use contractors to perform skip rope replacement work without first providing adequate notice to the union employees of the work availability, despite there being seventy miners idled during that time period and an additional 200 laid-off miners. (Dkt. No. 1 at 5).
The Union asks the Court: 1) to declare that the Award is final, binding, and enforceable; 2) to specifically enforce the Award, including the make whole portion of the Award and the cease-and-desist order; 3) to permanently enjoin the Company from using contractors in contravention of the CBA; 4) to award it damages for continued lost work opportunities of its members, including lost benefits, lost dues, and pre-and post-judgment interest of the monetary award; and 5) to award attorney's
In their Rule 26(f) report (dkt. no. 9), the parties stipulated that there were no material facts in dispute and that this matter should be resolved on cross motions for summary judgment. Those motions are fully briefed and the matter is ripe for review.
Summary judgment is appropriate where the "depositions, documents, electronically stored information, affidavits or declarations, stipulations ..., admissions, interrogatory answers, or other materials" establish that "there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed R. Civ. P. 56(a), (c)(1)(A). When ruling on a motion for summary judgment, the Court reviews all the evidence "in the light most favorable" to the nonmoving party.
The moving party bears the initial burden of informing the Court of the basis for the motion and of establishing the nonexistence of genuine issues of fact.
Judicial review of arbitration awards is "among the narrowest known to the law."
Nevertheless, courts should overturn arbitration awards when the "award violates well-settled and prevailing public policy, fails to draw its essence from the collective bargaining agreement or reflects the arbitrator's own notions of right and wrong."
Moreover, when construing the contract, "the arbitrator must take into account any existing common law of the particular plant or industry, for it is an integral part of the contract."
The Union contends that the Court should enforce the Arbitrator's Award because it draws its essence from the contract and comports with the common law of the shop. (Dkt. No. 16 at 5). Further, it argues that this is exactly the type of arbitral decision the parties bargained for in the CBA and agreed would be final and binding.
For its part, the Company argues that the Award should be vacated because it ignores arbitral precedent and the common law of the shop, and presumably applies the Arbitrator's own notions of equity and fairness. (Dkt. No. 17-1 at 2). The Company thus maintains that the Award does not draw its essence from the contract.
There are three issues presented here for the Court's review. The first is whether the defenses raised in the Company's answer to the complaint are time barred under the United States Arbitration Act ("Arbitration Act"), 9 U.S.C. § 12. The next issue is whether the Award drew its essence from the contract and comported with the common law of the shop. The third and final question is whether the Award should be vacated because it violates public policy. For the reasons that follow, the Court concludes that the Company's defense is not time-barred, the Award draws its essence from the contract and comports with the common law of the shop, and, finally, the Award does not violate public policy.
The Union argues that the Company's defenses to the Award are time barred under 9 U.S.C. § 12, which provides that "[n]otice of a motion to vacate, modify, or correct an award must be served upon the adverse party or his attorney within three months after the award is filed or delivered." This argument, however, is inapplicable here because the Company does not challenge the validity of the Award, but rather its enforceability. Indeed, contrary to the Union's position, the two cases on which it relies recognize this distinction, separately analyzing validity and enforceability.
Attacks on the validity of an Award stem from impropriety in the arbitral process. The Arbitration Act itself explicitly provides the bases for vacating an award, which include, among other things, fraud, corruption, misconduct, material mistake, or an arbitrator exceeding his authority.
The Company does not attack the validity of the Award, but instead contends that it is unenforceable because it fails to draw its essence from the contract, runs counter to the common law of the shop, and conflicts with public policy. There is no allegation that the arbitration was infected with fraud, corruption, or any other form of procedural defect, nor does the Company argue that the Arbitrator exceeded his authority by arbitrating the issues grieved.
The Company argues that the Arbitrator ignored the plain meaning of Article IA(g)(2) of the CBA, which states that repair or maintenance work "Shall not be contracted out except ... where the Employer does not have ... regular Employees (including laid-off Employees at the mine or central shop) with necessary skills
The Union maintains that the Arbitrator acted within his authority to interpret the meaning of Article IA(g)(2), and the Award therefore draws its essence from the contract. (Dkt. No. 18 at 3). Moreover, according to the Union, the law of the shop establishes that the Company's efforts to notify union employees of the availability of the work were wholly insufficient, and it therefore cannot be said that there were not enough employees available to perform the work.
Here, based on a plethora of arbitral decisions addressing the matter, it is evident that the phrase, "available to perform the work," is vague. Consequently, the Arbitrator not only is allowed to interpret its meaning, he is obligated to do so.
After determining that the contract provision was ambiguous, the Arbitrator did not ignore the "existing common law of the particular plant or industry."
The Arbitrator then reviewed the arbitral precedent submitted by the Union, which concluded that "the employer cannot properly determine whether its employees are or are not `reasonably available' for the overtime or premium work opportunity, `[u]ntil that offer was made and the employees declined it.'"
Guided by these overarching principles, the Arbitrator painstakingly reviewed the facts of the case, the evidence presented by the parties, and the testimony of the witnesses. He considered the limited scope of the notice provided by the company, together with testimony that underground workers "commonly seek and will very readily accept surface assignments when the same are made known and offered to them."
In reaching his conclusion, the Arbitrator analyzed the competing precedent defining the relevant common law of the shop, made factual findings regarding the grieved actions, and concluded that the Company had violated the CBA because there was inadequate evidence that the entire force of "regular Employees" was not "reasonably available" to perform the work. (Dkt. No. 1-1 at 21-22).
Ultimately, the Company asks the Court to review and reject the Arbitrator's factual findings. This the Court will not do. The Supreme Court of the United States has specifically admonished any court from such judicial interference in arbitrators' factual findings, and the facts of this case hardly give rise to an occasion to circumvent that edict.
The Company finally contends that the Award fails to consider the "legal requirements which must be met for employees to perform work at a coal mine." (Dkt. No. 17-1 at 17). In support of its contention, the Company cites 30 C.F.R. §§ 48.25-27, which generally outline certain training requirements for miners. This argument lacks merit.
To begin, there is no indication that the regulations cited by the Company had any bearing on whether there would have been union workers available to perform the skip rope changes had they been adequately notified. The first regulation, 30 C.F.R. § 48.25, covers training that all miners receive prior to starting work at a mine. Presumably, the Company does not argue that it failed to fulfill this regulation with every miner it employed — before they began working at the mine.
The next regulation, 30 C.F.R. § 48.26, applies to "experienced miners" who are: "(1) Newly employed by the operator; (2) Transferred to the mine; (3) Experienced surface miners transferred from underground to surface; or (4) Returning to the mine after an absence of more than 12 months." Again, the Company is presumably not arguing that any such experienced miners working at the mine during the relevant time periods were not then trained because "[e]xperienced miners must complete the training prescribed in this section
Finally, 30 C.F.R. § 48.27 appears to apply only to "[m]iners assigned to new work tasks as mobile equipment operators, drilling machine operators, haulage and conveyor systems operators, ground control machine operators, AMS operators, and those in blasting operations," none of which was the type of work at issue here.
Further undermining the Company's argument was the testimony by multiple mine personnel that the skip ropes changes were often performed by workers without any specialized training.
Although it is true that courts should refuse to enforce arbitration awards that interpret contract language in such a way that "would violate `some explicit public policy,'" this is not such a case.
For the reasons discussed, the Court
It is so