Food Handlers Local No. 425 v. Arkansas Poultry Coop., Inc.

• Decision Date: 15 December 1961
• Docket Number: Civ. A. No. 1613.
• Parties: FOOD HANDLERS LOCAL NO. 425, AMALGAMATED MEAT CUTTERS AND BUTCHER WORKMEN OF NORTH AMERICA, AFL-CIO, Plaintiff, v. ARKANSAS POULTRY COOPERATIVE, INC., Defendant.
• Court: U.S. District Court — Western District of Arkansas

199 F. Supp. 895

FOOD HANDLERS LOCAL NO. 425, AMALGAMATED MEAT CUTTERS AND BUTCHER WORKMEN OF NORTH AMERICA, AFL-CIO, Plaintiff, v. ARKANSAS POULTRY COOPERATIVE, INC., Defendant.

Civ. A. No. 1613.

United States District Court W. D. Arkansas, Fort Smith Division.

December 15, 1961.

Anthony J. Sabella, Memphis, Tenn., Lem C. Bryan, Fort Smith, Ark., for plaintiff.

Charles R. Garner, Fort Smith, Ark., for defendant.

JOHN E. MILLER, Chief Judge.

On May 19, 1961, plaintiff filed its complaint against defendant seeking to restrain and enjoin defendant from violating a collective bargaining agreement, alleged to exist between plaintiff and defendant, by refusing to arbitrate the differences, disputes and complaints between plaintiff and defendant in connection with the discharge of one Arlie Bray, and that the court order the defendant to submit said differences, disputes and complaints to arbitration in accordance with the terms of the agreement.

On August 1, 1961, defendant filed its answer in which it admitted that a collective bargaining agreement was entered into on August 20, 1958, between plaintiff and defendant, and that the agreement covered such matters as hours, wages, rates of pay, dues deduction, job posting, seniority and discharges, but denied that the agreement was renewed and extended or that it was in force and effect after November 15, 1959, the date of expiration fixed by the terms of the contract.

The defendant alleged that the agreement contained a termination clause allowing either party to terminate said agreement by giving to the other 60 days notice prior to November 15, 1959, and that the plaintiff gave defendant notice of cancellation and termination by letters of September 5 and 8, 1959; that after said notice was given to the defendant, the parties entered into negotiations in an effort to agree upon the provisions of a new collective bargaining agreement, which meetings were held intermittently until April 17, 1961, at which time negotiations were terminated.

The defendant admitted that it discharged one Arlie Bray on or about January 31, 1961, and alleged that it bargained in good faith with plaintiff relative to such discharge, but denied that the collective bargaining agreement dated August 20, 1958, was in full force and effect as of January 31, 1961.

The case proceeded to trial to the court without a jury on November 13, 1961, and at the conclusion of the testimony and arguments of counsel for the respective parties, the case was submitted and taken under consideration, and now, having considered the ore tenus testimony of the witnesses with the exhibits to said testimony, and the briefs submitted in support of their respective contentions, this opinion is filed embodying the findings of fact and conclusions of law in accordance with Rule 52(a), Fed.R.Civ.P., 28 U.S. C.A.

The plaintiff is an unincorporated association, a labor organization and trade union engaged in representing employees for the purposes of collective bargaining, having its main office in Fayetteville, Arkansas.

The defendant is a corporation duly organized and existing under the laws of the State of Arkansas, with its principal place of business at Bentonville, Arkansas, and is engaged in the processing of poultry.

The employees of the defendant had prior to August 20, 1958, been represented for several years by the plaintiff labor organization under a written contract. The last written agreement was entered into by the parties on August 20, 1958, and provided that it should be in full force and effect from July 21, 1958, to November 15, 1959, and that if the agreement was not canceled upon 60 days written notice prior to the anniversary date, it would be considered to be in full force and effect for each succeeding contract year.

On September 5, 1959, the president of the plaintiff wrote the manager of the defendant as follows:

"Please accept this letter as notice of our desire to terminate the Labor Agreement between our organization and your company, covering the employees at the Bentonville plant. Such termination is for the purpose of negotiating a new agreement.

"This is the 60 day written notice required by the labor agreement now in effect.

"We shall be pleased to meet with you at your earliest convenience for the purpose of completing negotiations of a new labor agreement to replace the present one, prior to its expiration date."

On September 8, 1959, another letter was written by the president of the plaintiff to the manager of the defendant only for the purpose of substituting the word "cancel" for the word "terminate" in the letter of September 5, 1959.

The contract was introduced in evidence as plaintiff's Exhibit 1, and contained provisions fixing the hours, wages, rates of pay, and working conditions. It also contained provisions for job posting, seniority, and seniority lists, grievance procedure, insurance payments and check off of dues. After the notice of cancellation was given by plaintiff, the parties proceeded to negotiate from time to time, but were unable to agree upon a new contract. The chief question in dispute was wages.

Many, if not all, of the other poultry processors in northwest Arkansas, whose employees were represented by plaintiff, entered into new contracts with the plaintiff providing for a wage raise in various amounts, but the defendant took the position that it was financially unable to pay any higher wages than those scheduled in the written contract which had been canceled by plaintiff.

During all of the negotiations between the parties the defendant continued to deduct or check off the dues of the various employees, maintained a seniority list, and settled some minor grievances.

Since the parties were unable to agree upon a new contract, the president of the plaintiff on September 16, 1960, submitted another letter (Plaintiff's Ex. 5), to the then manager of the defendant, in which he stated:

"Inasmuch as the agreement between our organization and your company has been extended and the common expiration date is November 15, please accept this letter as notice that we desire to cancel the agreement now in effect for the purpose of negotiating a new agreement. We desire to meet and consummate a new agreement prior to the expiration date.

"This is the 60 day notice required by Article XII of the agreement now in effect."

On January 31, 1961, prior to the termination of the negotiations, the defendant discharged the employee, Arlie Bray. The president of the plaintiff wrote the manager of the defendnt on February 2, 1961 (Plaintiff's Ex. 8), as follows:

"Please accept this letter as notice that our organization is submitting the grievance for the discharge of Arlie Bray to arbitration. It is my understanding from our telephone conversation, today, that you are refusing to re-instate this employee.

"We contend the accident that occurred on January 31, 1961, was not just cause for discharge.

"It is also my understanding of the telephone conversation, that you are willing to waive Article 3-A of the Agreement now in effect. We would be agreeable to use as arbitrator a professor from the University of Arkansas, who has had considerable experience in this work.

"May I hear from you at your earliest convenience."

On February 6, 1961, the manager of the defendant wrote the president of the plaintiff (Plaintiff's Ex. 9), in which he stated:

"Received today your letter of the 2nd with regard to discharge of Arlie Bray.

"I have no objection to waiving Article 3-A of the agreement and use a suitable arbitrator.

"As a matter of suggestion and with your consent and approval, I would be willing to have the matter arbitrated by any competent judge in this area. I presume Fayetteville has a circuit judge, chancery judge or for that matter, Washington County judge. If this could be worked out to the convenience of any of these above mentioned judges, we would be happy to come down and hear the matter at their and your convenience.

"With regard to our discussion of wage negotiations with you and our Board of Directors, you and I set a tentative date of February 17. I still feel that that will work out O.K. Normally, we have our board meeting on the 3rd Wednesday, which would be the 15th, however, I'm suggesting to the board that we have the regular monthly meeting on Friday the 17th and our meeting on this matter could be handled following the regular monthly board session.

"So assuming it's O.K. with you and we encounter no difficulty with the board members, the meeting will be set for 2 P.M., Friday, February 17, here at the office."

On February 8, 1961, the president of the plaintiff again wrote the manager of the defendant (Plaintiff's Ex. 10), as follows:

"With reference to your letter of February 6, 1961, concerning the picking of an arbitrator to hear the grievance concerning the discharge of Arlie Bray, we cannot agree to use the judges mentioned in your letter, as it is a practice with us to use men who are skilled, professional arbitrators.

"We would therefore suggest that we be permitted to write the Federal Mediation and Conciliation Service for a list of five names and that we subsequently strike names from said list until one name remains. This is the method we use in other poultry agreements.

"Your suggested date for the meeting on February 17, 1961 with the Board of Directors, is agreeable with us.

"May we hear from you concerning the picking of arbitrator as we have suggested."

On March 21, 1961, the president of the plaintiff wrote the attorney for the defendant (Plaintiff's Ex. 11), as follows:

"Mr. James A. Gilker, Attorney 3015 Rogers Ave Fort Smith, Ark.

"Dear Sir:

"Reference to our meeting on March 17, 1961 and your suggestion that we each submit three arbitrators, in which one is to be chosen to arbitrate the discharge of Arlie Bray, we submit as follows:

Henry W. Hoel Stillwater, Oklahoma Wilber C. Bothwell Springfield, Mo Ralph C....