La Mirada Trucking, Inc. v. Teamsters Local Union 166, Intern. Broth. of Teamsters, Chauffeurs, Warehousemen and Helpers of America
| Decision Date | 13 July 1976 |
| Docket Number | No. 74-2436,74-2436 |
| Parties | 92 L.R.R.M. (BNA) 3524, 79 Lab.Cas. P 11,531 LA MIRADA TRUCKING, INC. and Engineering and Grading Contractors Association, Inc., Petitioners-Appellants, v. TEAMSTERS LOCAL UNION 166, INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN AND HELPERS OF AMERICA, et al., Respondents-Appellees. |
| Court | U.S. Court of Appeals — Ninth Circuit |
Before CHAMBERS, DUNIWAY and KILKENNY, Circuit Judges.
Appellants, La Mirada Trucking, Inc. and the Engineering Grading Contractors Association, Inc. (EGCA), brought this action in state court seeking to vacate an award made by an arbitrator arising from a dispute between the appellants and the appellee unions. Appellees removed the case to federal district court and counterclaimed seeking enforcement of the award. The parties stipulated as to the facts underlying the controversy and the district court entered judgment for the appellees, ordering the arbitration award to be enforced. This appeal followed.
The State of California awarded a prime contract to Fontana Paving, a contractor member of the EGCA. The contract included work on a beach area adjacent to the shoreline of the New Silverwood Lake. Fontana subcontracted the preparation of the beach area to C. W. Poss, Inc., another member of EGCA. Fontana entered into a direct royalty agreement with the owner of a nearby pit which had been suggested by the state as a source of raw materials. Poss awarded a subcontract to the Watkin Construction Co., the owner of a portable screening plant, to screen large rocks out of the sand at the pit site so the sand could then be placed on the beach. The processed materials, both sand and separated rock, were stockpiled at the pit. Poss awarded a further subcontract to La Mirada Trucking, Inc., another EGCA member, to transport the sand from the pit to the beach and spread the sand at the beach site. The trip between the pit and the beach was about five miles along public highway. La Mirada, a licensed overlying carrier, engaged several owner-operators of dump trucks to drive the sand to the beach. Once at the beach site, the trucks drove up and down the site depositing sand without stopping.
La Mirada dealt with each of the owner-operators as an independent contractor and did not place any of them on the payroll. Article XIX of the master labor agreement between the Engineering and Grading Contractors Association and the Joint Council and local unions governs the rights and responsibilities of contractors, union and owner-operators. Article XIX calls for the contractor carrying the owner-operators on his payroll calls and governs the matters of union membership, the owner-operators' compensation and hiring practices. However, paragraph 1921 of Article XIX provides:
Notwithstanding any other provision of this Agreement, the Article XIX shall be applicable only to owner-operators performing (or who, upon their employment, will be performing) work to be done at the site of the construction, alteration, painting or repair of a building, structure or other construction work.
The union notified La Mirada that it felt that the owner-operators of the dump trucks should be placed on the payroll and subject to the other provisions of Article XIX. This would have in effect required La Mirada to deal only with owner-operators who were or would become union members. The parties were unable to agree to a solution to the dispute, so it was submitted to an arbitrator in compliance with the terms of the master agreement. The issue before the arbitrator was, in effect, whether the work performed by the owner-operators was work performed at a construction site (on-site work) such as to bring them within the scope of Article XIX of the master agreement. The submission to the arbitrator specified that the parties to the contract intended that the scope of coverage of Article XIX be identical to the scope of the construction industry proviso to Sec. 8(e) of the Labor Management Relations Act (29 U.S.C. Sec. 158(e)). The arbitrator considering this dispute and another similar one arising under Article XIX, decided that the owner-operators' work was on-site work and the provisions of Article XIX applied to them.
In both the court below and this court, the appellants raise two grounds upon which they contend that the arbitrator's order should be vacated. First, they contend that the award is beyond the scope of the submission made to the arbitrator and therefore is invalid. Second, they contend that because of the interpretation given to the on-site provision of paragraph 1921, the master agreement is extended to include compulsory union membership as a precondition to the hiring or doing...
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