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INTERNATIONAL ASSOCIATION OF MACHINISTS, AFL-CIO, and Its Local Lodge No. 2003, Appellant, v. The HAYES CORPORATION, Appellee

United States Court of Appeals for the Fifth Circuit1963-04-19No. Nos. 18946, 18947
316 F.2d 90

Summary

Holding. The court denied the employer's petition for rehearing. The employer's consistent refusal to recognize the grievances as arbitrable, demonstrated through its conduct and explicit statements at every procedural step, precluded it from later objecting that the union failed to make a sufficiently formal or timely demand for arbitration.

The employer sought reconsideration of a decision regarding whether the union timely demanded arbitration of employee discharge grievances. The court examined the employer's conduct throughout the grievance process and found that the employer consistently and unequivocally refused to recognize the disputes as grievances covered by the arbitration clauses. From the initial presentation of grievance forms through formal court proceedings, the employer maintained that the discharges were not subject to the grievance and arbitration procedures, citing that the terminations were directed by the government. The employer took no formal action on the grievance forms, returned them unsigned, and refused to issue a required written decision at the final step of the grievance procedure.

The court concluded that the employer's absolute and persistent repudiation of arbitration as a dispute-resolution mechanism rendered moot any technical objection about the timeliness or formality of the union's demand for arbitration. The employer could not fairly require the union to make a formal written demand for arbitration when it had already made clear through words and conduct at every stage that it would refuse to arbitrate these matters.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether an employer's refusal to process grievances waives objections to the timeliness of arbitration demand
  • Employer's repudiation of arbitration as dispute-resolution mechanism
  • Procedural timeliness of demand for arbitration

Procedural posture

The case was before a circuit court of appeals considering the employer's petition for rehearing of a prior appellate decision.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

PER CURIAM.

The Employer’s petition for rehearing acquiescing in our decision on the question of arbitrability, vigorously attacks the holding on the second point as to the procedural timeliness of the demand for arbitration. 5 Cir., 296 F.2d 238, at 243, 244.

Reconsideration is persuasive that as was true in Southwestern Electric Power Co. v. Electrical Workers, Local 738, 5 Cir., 1961, 293 F.2d 929, the Employer’s actions constituted an absolute “unwillingness * * * to recognize the Union’s claim as a grievance * * * covered by the arbitration clauses of the contract.” The Employer’s “ * * * repudiation of arbitration as a means of determining the dispute was unequivocal.”

.From the beginning to the end the Employer flatly refused to entertain this controversy as a subject of the grievance machinery culminating in arbitration. No formal action, as prescribed in the contract, was ever taken by the Employer on the grievance forms themselves. Save for the Union’s signature, they remained blank. The Employer refused to ¡accept the grievance claims and “returned” them to the Union. They * * * were refused by Sup. of Employee Relations.” And when the Union made “delivery of these grievances * * * ” in the unsuccessful effort to invoke grievance machinery, the Supervisor of Employee Relations November 27, 1959, “ * * * informed the union that * * * they were not subject to the grievance procedure of the basic labor contract.” And on December 2, 1959, at a third step grievance meeting between the Employer and the Union, the Supervisor of Employee Relations “stated to representatives of the union that the discharges * * * were directed by the Government and that they were therefore not subject to the grievance procedure of the basic labor contract.”

Although Step 3 of the contract Grievance Procedure (see note 4, 296 F.2d 238, 240) prescribed that “[t]he Director of Industrial Relations * * * shall render a decision in writing within five (5) working days after adjournment of the meeting,” no such written decision was ever rendered. In Case No. 18947 there was no writing at all, and in No. 18946 the Director on December 4, 1959, merely returned the grievance with a letter which stated: “I am returning hérewith the Grievance of E. R. Martin and S. E. Snellgrove for reasons as previously stated to you by the Company.” These reasons were, of course, that the grievances were not subject to the Grievance Procedure of the contract.

And, finally, indicating that this position of the Employer — reflected as it was by statements and conduct during the actual efforts to secure grievance procedure disposition — was still the Employer’s deliberate position, the formal answer filed by the Employer in court asserted positively that the grievances “are not and were not subject to the grievance and arbitration provisions of the contract * * Reflecting that this was the contemporary position of the Employer, the answer continued in the present tense that the Employer “ * * denies that in such contract, or otherwise, it agreed to submit such matters to arbitration. * * * ” (see note 8, 296 F.2d 238 at 241).

In the face of that record, it comes too late for the Employer now to say that had arbitration been formally demanded in writing, it might have considered the grievances on their merits. By all objective standards, the Employer’s answer would have been the same as it was in every step, in the formal answer filed, in the position vigorously taken in the District Court, and reaffirmed here by brief and argument: the. controversy was not subject to the grievance machinery.

The Employer cannot now insist that the Union should have demanded the right to hear this response again.

Rehearing denied.

CAMERON, Circuit Judge, dissents.