Eichleay Corp. v. International Ass'n of Bridge, Structural and Ornamental Iron Workers
| Decision Date | 01 July 1991 |
| Docket Number | AFL-CI,A,AFL-CIO,Nos. 90-3637,90-3692 and 90-3693,s. 90-3637 |
| Citation | 944 F.2d 1047 |
| Court | U.S. Court of Appeals — Third Circuit |
| Parties | 137 L.R.R.M. (BNA) 2781, 119 Lab.Cas. P 10,918 EICHLEAY CORPORATION, v. INTERNATIONAL ASSOCIATION OF BRIDGE, STRUCTURAL AND ORNAMENTAL IRON WORKERS; United Brotherhood of Carpenters and Joiners of America; Laborers International Union of North America; Operative Plasterers and Cement Masons International Association of the United States and Canada; International Union of Operating Engineers; and International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers. (Two Cases) CARPENTERS HEALTH AND WELFARE TRUST FUND FOR CALIFORNIA; Carpenters Pension Trust Fund for Northern California; Carpenters Vacation and Holiday Trust Fund for Northern California; Carpenters Apprenticeship and Training Trust Fund for Northern California; and Carpenters Annuity Trust Fund for Northern California v. EICHLEAY CORPORATION, ECI, Inc., d/b/a Eichleay Constructors, Inc.; Eichleay Holdings, Inc.; AMK International. CALIFORNIA IRON WORKERS FIELD WELFARE PLAN; California Iron Workers Field Pension Trust Fund; California Field Iron Workers Vacation Trust Fund; California Field Iron Workers Apprenticeship Training and Journeyman Retraining Trust Fund; California and Vicinity Field Iron Workers Annuity Trust Fund; California Field Iron Workers Administrative Trust Fund v. EICHLEAY CORPORATION, ECI, Inc., d/b/a Eichleay Constructors, Inc.; Eichleay Holdings, Inc.; AMK International. OPERATING ENGINEERS HEALTH AND WELFARE TRUST FUND; Pension Trust Fund for Operating Engineers; Pensioned Operating Engineers Health and Welfare Fund; Operating Engineers & Participating Employers Pre-Apprenticeship; Apprentice & Journeyman Affirmative Action Training Fund; Operating Engineers Vacation & Holiday Plan; Operating Engineers Contract Administration Trust Fund; Operating Engineers Market Preservation Trust Fund; Operating Engineers Industry Stabilization Trust Fund v. EICHLEAY CORPORATION, ECI, Inc., d/b/a Eichleay Constructors, Inc.; Eichleay Holdings, Inc.; AMK Internationa |
Victor J. Van Bourg, Sandra Rae Benson, (argued), Van Bourg, Weinberg, Roger & Rosenfeld, San Francisco, Cal., for appellants in No. 90-3637.
James Kuhn, III, Kuhn, Engle & Stein, Pittsburgh, Pa., for appellants in No. 90-3637.
Peter D. Nussbaum (argued), Daniel T. Purtell, Altshuler, Berzon, Nussbaum, Berzon & Rubin, San Francisco, Cal., for appellants in Nos. 90-3692 and 90-3693.
Richard Resnick, Sherman, Dunn, Cohen, Leifer & Yellig, P.C., Washington, D.C., for appellants in Nos. 90-3692 and 90-3693.
Stanford Segal, Gatz, Cohen, Segal & Koerner, Pittsburgh, Pa., for appellants in Nos. 90-3692 and 90-3693.
Judith Rivlin, Sheet Metal Workers Intern. Union, Washington, D.C., for appellants in No. 90-3692.
Brian A. Powers, O'Donoghue & O'Donoghue, Washington, D.C., for appellants in No. 90-3693.
Peter G. Nash (argued), Ogletree, Deakins, Nash, Smoak and Stewart, Washington, D.C., for appellee in Nos. 90-3637, 90-3692, 90-3693.
Before BECKER and NYGAARD, Circuit Judges and GREEN, District Judge *.
In these consolidated appeals, we again address the great deference due arbitrators' decisions in labor disputes. The appellant Unions 1 contest the district court's order vacating a series of arbitration awards favorable to them. We will affirm in part and reverse in part.
This acrimonious dispute between Eichleay Corporation ("Eichleay") and the plaintiff Unions (collectively the "Unions") arose in 1985. Eichleay, a union shop construction company, and the Unions were parties to collective bargaining agreements known as the National Maintenance Agreements ("NMA"). Early in July 1985, Eichleay reorganized its operations. A subsidiary known as Eichleay Constructors, Inc. ("ECI") was formed to engage in open shop construction nationwide. Eichleay Holdings, Inc. was formed in August of 1985 to hold the stock of Eichleay and ECI, as well as the stock of Eichleay Engineers of Pennsylvania and Eichleay Engineers of Illinois, two former subsidiaries of Eichleay.
During the latter part of that year, Geoff Eichleay, President and CEO of Eichleay, a union shop contractor, learned that USS Posco, a joint venture of US Steel and Pohang Iron and Steel, a Korean company, planned to modernize a steel mill in Pittsburg, California. This Pitcal project involved renovating the finishing plant portion of the mill, installing a pickle line tandem cold mill and a continuous annealing line. Eichleay became interested in bidding on all or part of the construction work connected with the Pitcal Project.
When USS Posco first solicited bids for the Pitcal project, Geoff Eichleay directed an Eichleay sales staff member to learn the specifics of the job and identify potential competitors. Eichleay representatives then met with USS Posco officials to get preapproved for the short bid list, qualifying Eichleay to submit a final bid on the project.
Eichleay did not make the short bid list, apparently because USS Posco feared that Eichleay was not a large enough company to handle the job. USS Posco suggested that Eichleay form a joint venture with one of the six companies on the short bid list and continue bidding on the project. Eichleay then entered into an agreement with Morrison-Knudsen ("Morrison") to bid on the project as a joint venture, on the condition that concessions be obtained from the building trades unions.
In order to get these concessions, Morrison and Eichleay approached the National Maintenance Agreement Policy Committee ("NMAPC") in July, 1986. The NMAPC is a jointly administered labor-management committee consisting of 14 representatives from craft unions and 14 representatives from unionized contractors. It provides a forum to interpret the NMAs. The NMAs, where extended to a particular site, set minimum pay levels, report times and bind the contractor to union hiring practices. Eichleay signed NMAs with all the craft unions in this case except for the IBEW.
At the meeting with the NMAPC, Eichleay and Morrison requested the NMAs be extended to the Pitcal project and that the Unions grant concessions. Specifically, the contractors requested that the wage and benefit package of the craft employees be modified to 80% of the...
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