2006 D e c i sion s O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit 8-9-2006 

# Lo c al 827 v . V e ri zon N J Inc P r e c e de nt i al or N on-P r e c e de nt i al : N on-P r e c e de nt i al D ocke t N o . 04-4706

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w . vi ll anova . e du/thir dc ir c uit_2006/602H o n o rab le L o u is H
. P o ll ak , S en ior D istri ct Ju d g e f o r th e U n it ed S tat es D istri ct C o u rt * f o r t h e E a s te rn D is tr ic t o f P e n n s y lv a n ia , s ittin g b yd e s ig n a tio n . NOT P RE CE DE NT I AL UN I TED STATES CO UR T OF A PP EALS F O R T H E T H IR D C IR C U IT
N o. 04- 4706
L OC AL 8 2 7 I NT E RN AT I ONAL BR OT HE RH OOD O F E L E C T R IC A L W O R K E R S , A F L -C IO ; V IR G IN IA J. F IS H E R ; F R E D E R IC K D . M A Z Z A R O ; RI CH AR D F. EI CH EL; LAW REN CE CO OPER
v. V E R IZ O N N E W JE R S E Y , IN C .; V E R IZ O N S E R V IC E S C O R P O R A T IO N S ; VE RI Z ON I NC OM E S E CU RI T Y P L AN FOR M I D- ATLA NTI C A SS OC I ATES V eri zon N ew Jer sey , Inc; V eri zon S ervi ces C orporat i on s,

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forthe D i s tr i ctof N ew J er s ey ( D . C . C i vi l N o. 02- cv- 1019) D i s tr i ctJ udge: H onor abl e R obertB . K ugl er

______________ A r gued J anuary25, 2006 B efor e: R E N D E L L and ST A PL E T O N , C i r cui tJ udges

and PO L L A K , D i s tr i ctJ udge. * ( Fi l ed A ugus t9, 2006)D efe ndant s - A ppel l ant s V er i zon N ew J er s ey , I nc. , V er i zon Servi ces C orpor at i on, and 1 V er i zon I ncome Secur i tyPl an forM i d- A t l ant i c A s s oci at es ar e col l ect i vel ydes cr i bed as “V er i zon. ” 2 N icho las J. S an serv ino , Jr. T hom as M . B eck [ ARGUE D] J ones D ay 5 1 L o u i s i a n a A v e n u e , N . W. W as hi ngt on, D . C . 20001 M aryB . R o g ers P itn e yH a rd in P. O . B ox 1945 M orr i s t ow n, N J 07962 C o u n se l fo r Ap

p e lla n ts M ark E
. B el l and [ ARGUE D] St even J . B us hi ns ky O ’ B r i en, B el l and & B us hi ns ky 2111 N ew R oad, Sui t e 101 N or thfi el d, N J 08225 C ouns el f orAppel l ees OPI NI ON O F THE COURT

_______________ PO L L A K , D i s tr i ctJ udge. V er i zon and i t s empl oy ees , r epr es ent ed byL ocal 827, ent er ed i nt o a C ol l ect i ve

1 B argai ning A greem ent ( “C B A ”) for the p urpose o f regulat i ng cert ai n w ork-r el at ed is sues. A rticle V II, S e c tio n 1 o f th a t C B A c o n tem p late s th e p ro c e ss b yw h ich e m p lo y e e b e n e f its packa ges ar e off

er ed w hen V er i zon det erm i nes thata w or kfor ce s urpl us exi s t s . I n M ar ch2 8 U .S .C . § 1 2 9 2 (a )( 1 ) c o n f e rs o u r j u ri s d ic tio n o v e r t h is a p p e a l. 2 3 of 2002, L ocal 827 and a numberof V er i zon empl oy ees br oughtthi s s ui tunderthe Labor M anage m entR el at i ons A ctand the Em pl oy ee Ret i r ementI ncome Secur i tyA ct . T he pl ai nt i ffs as s ertthatV er i zon br eac hed the C B A bym aki ng benef i toffe r s t o s urpl us empl oy ees i n a manneri ncons i s t entw i th A r t i cl e V I I , Sect i on 1. B oth s i des m oved for
s um m aryj udgm enton al l cl ai m s . I n an opi ni on i s s ued N ovember23, 2004, the D i s tr i ct C o u rtag ree d w ith L o ca l 82 7 ' s interpre tat ion o f th e C B A , g ran ted p arti al su m m ary j udgm entt o t he pl ai nt i ffs , and enj oi ned V er i zon fr om i nt erpr et i ng the C B A i n a manner in c o n s is te n t w ith th e c o u rt ’s o p in io n . V e ri z o n n o w b ri n g s th is in te rl o c u to ry a p p e a l. W e a g re e w ith th e D istric t C o u rt’s c o n stru c tio n o f A rticle V II, S e c tio n 1 o f th e C B A a n d w ill
a f f i r m. 2 I . O vervi ew Pl ai nt i ff Local 827 r epr es ent s the non- s upervi s oryempl oy ees atV er i zon N ew J er s ey , I nc. O n O ct ober27, 2000, L ocal 827 and V er i zon ent er ed i nt o a C B A , w hi ch, in tera lia , provides for the p rocedu re t o b e foll ow ed in the ev ent that V eri zon declar es a s urpl us of empl oy ees exi s t s i n i t s w or kfor ce. Speci fi cal l yi n i s s ue i s the pr oces s byw hi ch benef i toffe r s ar e made t o empl oy ees i n a non- l ay off c ont extw hen a s urpl us has been id e n tifie d b yV e riz o n . T h e re lev a n t se c tio n o f th e C B A , A rticle V II, S e c tio n 1 , rea d s: 1. I f dur i ng the t erm of thi s A gr eement , the C om panynot i fi es the U n io n in w riting th a t tec h n o lo g ica l ch a n g e (d e f in e d a s c h a n g e s in e q u ip m e n t o r m e th o d s o f o p e ra tio n ) h a s o r w ill c re a te a su rp lu s in4 anyj ob t i t l e i n a w or k l ocat i on w hi ch w i l l nece s s i t at e l ay offs or in v o lu n tar yp e rm a n e n t re a ss ig n m e n ts o f re g u lar e m p lo y e e s to di ffe r entj ob t i t l es i nvol vi ng a r educt i on i n payort o w or k l ocat i ons r equi r i ng a cha nge of r es i dence , ori f a f or ce s urpl us nece s s i t at i ng anyof the above act i ons exi s t s forr eas ons otherthan t echnol ogi cal change and the C om panydeems i tappr opr i at e, r egul arempl oy ees w h o h a v e a t lea st o n e (1 ) y e a r o f n e t cr e d ited se rv ice m a ye lec t, i n the or derof s eni or i ty , and t o the ext entnece s s aryt o r el i eve the s u rp l u s , t o l e a v e th e s e r v i c e o f th e Co mp a n ya n d r e c e i v e I n c o me S e c u rityP lan (IS P ) a n d if a p p lica b le, d u rin g th e ter m o f th is A g re e m e n t, E n h a n c e d In c o m e S e c u rityP lan (E n h a n c e d IS P ) b e n e f its descri bed i n thi s Secti on , subjectt o the foll ow i ng con dit i on s. (a) T h e C o m p an ysh all d eterm ine th e job ti tl es a n d w o rk l ocat i ons i n w hi ch a s urpl us exi s t s , the numberof empl oy ees i n such t i t l es and locat i on s w ho are consi dered t o b e surpl us, and the p eri od du ri ng w hich the em ploy ee m ay , i f he o r s he so e lec ts, lea v e th e se rv ice o f th e C o m p a n yp u rsu a n t to th is S e c tio n . E f

f e c tiv e u n til A u g u st 2 , 2 0 0 3 , the C o m p a n ies w ill offe rE nhance d I SP i n the ci r cumst ance s des cr i bed i n Sect i on 2 ( a) of thi s A r t i cl e and mayal s o offe rE nhance d I SP i n other ci r cumst ance s i f theychoos e t o do s o. T he C om pani es m ay l i m i tacc ept ance s t o the numberof s urpl us and thi s E nhance d I SP offerw oul d be i n l i eu of obl i gat i ons , i f any , the C om pani es m ayhave t o offe rr egul arI SP. N ei thers uch d e ter m in a tio n s b yth e C o m p a n yn o r a n yo th e r p a rt o f th is S e c tio n s h a ll b e s u b

je c t to a rb itr a tio n . ( b) T he numberof empl oy ees w ho m aym ake s uch an e l ect i on s hal l notexce ed the numberof empl oy ees det erm i ned bythe C o m p a n yto b e s u rp lu s . ( c) A n empl oy ee’ s el ect i on t o l eave the s ervi ce of the C om pany and r ece i ve I SP or Enhanced I SP pay m ent s m us tbe i n w r i t i ng and tr ans m i t t ed t o the C om panyw i thi n thi r ty( 30) cal endar day s fr om the dat e of the C om pany ’ s offe ri n or dert o be eff ect i ve and i tm aynotbe r evoked a ft ers uch thi r ty( 30) c a le n d a r d a yp e ri o d
. V erizo n arg u es th at th e a b o v e lan g u ag e d esc ri b es a sy stem b yw h ich th e d ir ec torsT he t erm “or gani zat i on, ” an appar ents ynonym for“w or k gr oup, ” i s al s o i n us e; for 3 c la ri ty’s s a k e , o n ly th e te rm “ w o rk g ro u p s ” w ill b e e m p lo y e d in th is o p in io n . 5 and manager s of V er i zon’ s var i ous i nt ernal “w or k gr oups ” i dent i fys urpl us es w i thi n the
w o rk g ro u p s th e ym a n a g e a t a w o rk lo c a tio n . O n c e a su rp lu s h a s b e e n d e c lar e d w ith in 3 thatw or k gr oup, V er i zon cl ai m s thatI ncome Secur i tyPl an ( I SP), and, w her e appl i cabl e, th e E n h a n c e d In c o m e S e c u rityP lan (E IS P ), is o f f e re d to a ll em p lo y e e s w h o a re b o th
w ith in the w o rk g rou p an d w h o h av e the job ti tl e ide n ti fied to b e in s u rplu s. If m o re e m p lo y e e s w ith in a w o rk g ro u p a c c e p t th is o f f e r th a n th e re is s u rp lu s, th e e m p lo y e e s w ith the mosts eni or i tyr ece i ve the bene fi t s unt i l the s urpl us no l ongerexi s t s . V er i zon s t at es thatthi s s y s t em has the pr act i cal eff ectof V er i zon off

er i ng I SP/ E I SP t o few erthan al l of th e e m p lo y e e s w ith th e sa m e w o rk tit le a t a w o rk lo c a tio n b e c a u se th e re a re typ ica lly
m a n yw o rk g ro u p s o p e ra tin g a t a w o rk lo c a tio n . V e riz o n a lso o f

f e rs e v id e n c e e x trin sic to th e C B A th a t itb e liev e s s u p p o rts its i nt e rpr e t a t i on . The c ompa nyno t e s tha tfr om 199 0 u nt i l 20 01 , i tha s op e r a t e d i t s I SP/ EI SP pr ogr am for non- l ay off e m pl oy ees i n the mannerdes cr i bed above w i thoutcompl ai ntfr om Loc a l 82 7. V e r i z on fu r the rc l a i ms tha tLoc a l 82 7 was a w a r e of the w a ythe I SP/ EI SP p r o g r a m wa s b e i n g a d mi n i s t e r e d b e c a u s e th e c o mp a n ys e n ta l e t t e rt o th e u n i o n e a c h t i me a s urpl us w as i dent i fi ed and a n I SP/ E I SP offerm ade. B etw een 1990 a nd 2001, appr oxi m at el ythi r tys uch not i ces w er e s entt o L ocal 827. L ocal 827 ar gues thatA r t i cl e V I I , Sect i on 1 i s notambi guous i n r equi r i ng V er i zon6

t o o f f e rI S P / EI S P b e n e f

i t s i n n o n - l a y o f

f s i tu a t i o n s t o a l l e mp l o y e e s wh o h a v e th e s a me jo b tit le a n d a re e m p lo y e d a t th e sa m e w o rk lo c a tio n . T h e u n io n a rg u e s th a t th e p lain lan g u a g e o f

th e C B A su p p o rts its u n d e rsta n d in g , an d th a t an yo th e r re a d in g w o u ld
s ubs t ant i al l yunder cutthe contr actual l yconfe rr ed s eni or i tyr i ght s of V er i zon empl oy ees
w hen I SP/ E I SP offer s ar e made. M or eover , the uni on ar gues thatthe extr i ns i c evi dence pr es ent ed byV er i zon does notcr eat e ambi gui tyi n the pl ai n m eani ng of the contr actual la n g u a g e . Forthe r eas ons gi ven bel ow , w e agr ee w i th L ocal 827' s pos i t i on and conc l ude that A rticle V II, S e c tio n 1 o f th e C B A is w ith o u t am b ig u ityin its lan g u a g e lim iti n g V e riz o n to
m ak ing n o n -l ay o ff

IS P /E IS P o ff

ers to a ll em p loy ee s tha t hav e the sam e job ti tl e a n d are e m p lo y e d a t th e s a m e w o rk lo c a tio n . I I . T he C ont ract ual L anguage W e u n d e rta k e a p len a ryre v iew o f th e q u e stio n w h e th e r c o n tra c tu a l lan g u a g e is cl earorambi guous , and w e w i l l aff i r m a s um m aryj udgm entgr anton an i s s ue of c ont r act in terp re tatio n o n lyif

th e c o n tra c tu a l lan g u a g e is “ su b jec t to o n lyo n e re a so n a b le i nt erpr et at i on. ” LocalU ni on N o. 1992, I

nt ’ lB hd. of

E l ec. W orker s v. O koni t e C o. , 189 F. 3d 339, 341 ( 3d C i r . 1999) ( ci t at i ons om i t t ed)
. I n det erm i ni ng w hethercontr actual l ang uag e i s am biguou s, w e w i l l con si der “the co ntr actl ang uag e, the p roffer of t he p art i es, and the extr i ns i c evi dence offe r ed i n s uppor tof ea ch i nt erpr et at i on. ” Id
. at343 ( ci t at i on o m itt e d ). B e g in n in g w ith th e C B A ’s la n g u a g e , w e c a n id e n tifyn o a m b ig u ityin A rticle7

V I I , Sect i on 1' s di s cus s i on of how I SP/ E I SP offer s m us tbe made t o empl oy ees i n a nonla y o f f s itu a tio n . T he fi r s ts ent ence ( w hi ch i s al s o the fi r s tpar agr aph) of A r t i cl e V I I , Sect i on 1 of the C B A cont empl at es the pr ovi s i on of I SP and/ orE I SP benefi t s i n the eve nt“the C o m p a n yn o tifie s th e U n io n in w riting th a t tec h n o lo g ica l [ o r o th e r] c h a n g e . . . h a s o r w ill
cr eat e a s urpl us i n anyj ob t i t l e i n a w or k l ocat i on. ” The par t i es agr ee thatther e i s no ambi gui tyi n t he meani ngs of “j ob t i t l e” or“w or k l ocat i on. ” The “j ob t i t l e” of a V er i zon empl oy ee de s cr i bes herorhi s funct i on w i thi n the company , s uch as a t echni ci an oran analy st . T he “w ork l ocati on ” descri bes t he b uil ding w here the em ploy ees w ork. T hu s, A rticle V II, S e c tio n 1 b e g in s b yu n a m b ig u o u slyd e sc rib in g th e C o m p a n y ’s p o w e r to id e n tif ya s u rp lu s in th e c o n te x t o f (1 ) a jo b title a n d (2 ) a w o rk lo c a tio n . O n c e th e c o m p a n yid e n tif ie s a s u rp lu s in “ a n yjo b title in a w o rk lo c a tio n ,” V er i zon maym ake I SP/ E I SP offer s . H ow ever , the C B A s t at es thatthes e off er s w i l l be “s ubj ectt o t he fol l ow i ng condi t i ons . ” These condi t i ons ar e gi ven i n s ubs ect i ons ( a) – ( c)
o f S e c tio n 1 . S u b s e c tio n (a ) p ro v id e s , in tera lia , thatV er i zon “s hal l det erm i ne [1] the j ob t i t l es and w or k l ocat i ons i n w hi ch a s urpl us exi s t s , ” ( 2) “the numberof empl oy ees i n s uch t i t l es and l ocat i ons w ho ar e cons i der ed t o be s urpl us , ” and ( 3) “the per i od dur i ng w hi ch th e e m p lo y e e m a y , if h e o r sh e so e lec ts, lea v e th e se rv ice o f th e C o m p a n yp u rsu a n t to th is S e c tio n .” W ith re sp e c t to th e E IS P o f f e rs, s u b se c tio n (a ) e m p o w e rs V e riz o n to “ lim it
acc ept ance s t o t he numberof s urpl us . ” Subs ect i on ( b) s t at es that“[t ] he numberof8

empl oy ees w ho m aym ake s uch el ect i on s hal l notexce ed the numberof empl oy ees d e ter m in e d b yth e C o m p a n yto b e su rp lu s.” S u b se c tio n (c ) re c ites th e a n e m p lo y e e m u st,
w i thi n thi r tyday s of V er i zon’ s offe r , tr ans m i ti n w r i t i ng hi s orherdes i r e t o l eave V er i zon a n d re c e iv e IS P o r E IS P b e n e f its
. T he above l anguage m akes cl earthatV er i zon’ s di s cr et i onarypow ert o m ake I SP/ E I SP offer s i s l i m i t ed t o “j ob t i t l e” a nd “w or k l ocat i on. ” The openi ng s ent ence of A rticle V II, S e c tio n 1 d e sc rib e s V e riz o n ’s d isc re tio n a ryp o w e rs in th e c o n tex t o f jo b tit le and w or k l ocat i on w i thoutm aki ng anym ent i on of a “ w or k gr oup. ” Thi s pow eri s then condi t i oned i n s ubs ect i on ( a) ( 1) on V er i zon i dent i fy i ng s urpl us es i n a “j ob t i t l e[] ” and

“ w o rk lo c a tio n [ ],” w h ic h re ite ra te s th a t th e s e a re th e p a ra m e te rs o f V e ri z o n ’s d is c re tio n . A nd, i n s ubs ect i on ( a) ( 2) , the part i es s t at e thatV er i zon s hal l have the pow ert o det erm i ne th e n u m b e r o f

e m p lo y e e s w ith in “ s u c h title s a n d lo c a tio n s ” w h o a re c o n s id e re d s u rp lu s . T hus , agai n, V er i zon’ s di s cr et i onarypow er s ar e di s cus s ed onl yi n the cont extof bei ng

“ c o n d itio n [ e d ]” o n id e n tif y in g a jo b title a n d w o rk lo c a tio n . V er i zon nonethel es s ar gues thati thas unhamper ed di s cr et i on t o l ocat e a s urpl us as i ts ees fi t . I n part i cul ar , V er i zon cl ai m s thatthe contr actual l anguage does noti nhi bi tt he companyfr om m aki ng non- l ay off I SP/ E I SP offer s bythe “w or k gr oup” thati s hous ed
w ith in a w o rk lo c a tio n . A s d e sc rib e d a b o v e , h o w e v e r, th is p o sitio n is n o t co m p a tib le
w i th the t extof A r t i cl e V I I , Sect i on 1. Fi r s t , V er i zon does notar gue that“j ob t i t l e” or “w or k l ocat i on” ac tual l ym eans “w or k gr oup. ” Ther efor e, i f the C B A l anguageA r t i cl e V I I , Sect i on 2( a) of the C B A r eci t es that“pr i ort o pr ocee di ng t o a l ay off 4 r es ul t i ng fr om a s urpl us i n anypart i cul art i t l e, l ocat i on, and w ork gr oup the C om pani es w i l l of fe ra n Enh a nc e d I SP Termi na t i on A l l owanc e e qu a l t o tw o ( 2) t i mes the no r mal I SP T erm ination A ll o w an ce (e.g., u p to a m ax im u m o f $ 6 6 , 0 0 0 ) i n su rplu s ti tl e a n d w o rk lo c a tio n .” (E m p h a s is a d d e d .) 9 des cr i bi ng V er i zon’ s di s cr et i onarypow er s w as m eantt o ext end t o “w ork gr oups ” w i thi n a jo b title a n d lo c a tio n , w e w o u ld e x p e c t to f in d th is la n g u a g e in A rt ic le V II , S e c tio n 1 . N orcan V er i zon ar gue thatthe dr aft er s of the C B A w er e unfa m i l i arw i th di s cus s i ng t he di s tr i but i on of empl oy ee be nefi t s i n the cont extof thes e s ub- uni t s beca us e the verynext
s ect i on of the C B A – A r t i cl e V I I , Sect i on 2( a) – cont empl at es l ocat i ng a s urpl us w i thi n a “w ork grou p” w hen E ISP off ers are m ade in l ay off

si tuati on s. 4 A l so con tradi ct i ng V eri zon ’s readi ng of A rt i cl e V II , S ect i on 1 is the co nsi st ent use of the “j ob t i t l e” a nd “w or k l ocat i on” t erm i nol ogyi n the cont extof “c ondi t i ons ” pl ace d
o n IS P /E IS P o ff

ers, w h ich in d icate tha t th eyare ind ee d li m it ing fa ctors o n V erizo n ’s pow ert o m ake s uch off er s . A nd the condi t i on pl ace d on V er i zon’ s di s cr et i on – e s s e n t i a l l yma k i n g Ve r i z o n tr e a ta l l s i mi l a r l ys k i l l e d e mp l o y e e s a ta l o c a t i o n i n th e s a me
w ay– i s the type of c ondi t i on one w oul d expec ta col l ect i ve bar gai ni ng uni tt o demand of an empl oy ers o as t o ens ur e thatal l of i t s equi val ent l ys ki l l ed empl oy ees ar e tr eat ed
e q u a lly. I n addi t i on t o ar gui ng thatther e i s no l i m i t i ng l anguage i n the C B A , V er i zon a rg u e s th a t ce rta in w o rd s a n d p h ra se s in A rticle V II, S e c tio n 1 c o u ld b e re a d a f f irm a tiv e ly to s u p p o rt th e c o m p a n y ’s in te rp re ta tio n o f th a t p ro v is io n . A g a in , w e c a n n o t a g re e .A tor al ar gum ent , J udge St apl et on r emi nded V er i zon’ s couns el that“Y ou have t o be 5 a b le to sa yth a t th e re is s o m e w o rd in g in th is c o n tra c t th a t sh o u ld b e re a d d if f e re n tly beca us e of thi s extr i ns i c cont ext . ” V er i zon’ s couns el r es ponded bys t at i ng thatthe ambi gui tyl i es i n t he w or ds des cr i bi ng V er i zon’ s di s cr et i onarypow er s and then s peci fi cal l ypoi nt ed t o t he “the C om panydeems i tappr opr i at e” a nd “t o the ext ent n e c e s s a ry to re lie v e th e s u rp lu s ” la n g u a g e f o u n d in A rt ic le V II , S e c tio n 1 . 10 V er i zon foc us es on t he contr actual l anguage author i zi ng i tt o decl ar e a s urpl us . T he companycal l s att ent i on t o t he phr as es “the C om panydeems i tappr opr i at e” a nd “t o the ext entnece s s aryt o r el i eve the s urpl us . ” T hes e phr as es , how ever , do notappea ri n the 5
co n text o f V erizo n ’s po w er to loc ate the su rplu s, w h ich is w h at th e “ job ti tl e” an d “w o rk l ocat i on” l anguage does
. R ather , the phr as es appea ri n the cont extof pr ovi s i ons r el at i ng t o V er i zon’ s pow ert o di ct at e the s i ze of anys urpl us . T hati s , i f V er i zon dec i des that th e re is a “ f

o rc e su rp lu s” a n d “ th e C o m p a n yd e e m s it a p p ro p ria te,” th e n th a t su rp lu s w ill be r el i eved thr ough a s eni or i tys y s t em, “t o the ext entnece s s aryt o r el i eve the s urpl us . ” T he r el evantques t i on i s not , how ever , V er i zon’ s pow ert o decl ar e the exi s t ence of a
su rplu s, w h ich L o ca l 82 7 d o es n o t dispu te. Instea d , the q u esti o n b ef o re u s is V erizo n ’s
as s ert ed author i tyuni l at er al l yt o l ocat e thatdecl ar ed s urpl us w her everthe company pl eas es . A nd i ti s on thi s s ubj ectthatthe C B A pl ace s “condi t i ons ” on the r eac h of V erizo n ’s po w er, na m elyco n fin ing to “jo b ti tl e” an d “w o rk lo ca ti o n ” the co m p an y ’s
a u th o ri ty to lo c a te a s u rp lu s . F i nall y , V eri zon con t end s that the m eaning o f “surpl us” i s am biguou s here because lim iti n g V e riz o n ’s d isc re tio n to m a k e IS P /E IS P o f f e rs w o u ld m e a n th a t V e riz o n w o u ld11

h a v e to m a k e IS P /E IS P o f f e rs to “ n o n -su rp lu s” e m p lo y e e s. F irst, th is a rg u m e n t o n ly
w o rks if th e c o n tr ac tual lang u ag e c o u ld b e re ad as lo ca li zing the “ su rplu s” to a w o rk gr oup beca us e – underthats cena r i o – openi ng up the I SP/ E I SP benefi t s t o empl oy ees out s i de the w or k gr oup w oul d nece s s ar i l ym ean thatthos e out s i de empl oy ees ar e “nons urpl us . ” B ut , as s how n above, the r el evantcontr actual l anguage neverdes cr i bes “s urpl us ” i n the cont extof w or k gr oups ; i ns t ead, “s urpl us ” i s onl ydepl oy ed i n the cont ext of “j ob t i t l es ” and “ w or k l ocat i ons . ” Second, s ub- s ect i on ( b) of A rt i cl e V I I , Sect i on 1, author i zes V er i zon t o l i m i tthe numberof empl oy ees w ho can a cce ptthe I SP/ E I SP offer t o “the numberof empl oy ees det erm i ned bythe C om panyt o be s urpl us . ” Thi s l anguage g ra n tin g V e riz o n c o m p lete d isc re tio n to d e ter m in e th e siz e o f a su rp lu s w o u ld a p p e a r to addr es s V er i zon’ s conce r ns aboutover - el i gi bi l i tyamong ot herw i s e qual i fi ed ca ndi dat es for the ISP / E ISP ben efi t s. L ast l y , w ere “s urpl us” i nterpret ed the w ayV eri zon adv ances, th e c o m p a n yw o u ld b e e m p o w e re d to m a k e IS P /E IS P o f f e rs n a rro w lyso e f

f e c tiv e lya s to obvi at e the A r t i cl e V I I , Sect i on 1 r equi r ementthatthe off er s be made “i n the or derof
s eni or i ty . ” Putanotherw ay , V er i zon’ s r eadi ng of s urpl us w oul d contr avene the
c o n tra c tu a l lan g u a g e b yp e rm itt in g th e c o m p a n yto m a k e n o n -la y o f f IS P /E IS P o f

f e rs to in d iv id u a ls w ith le s s s e n io ri ty th a n o th e rs o f th e s a m e jo b title a t th e s a m e w o rk lo c a tio n . Forthes e r eas ons , w e fi nd no ambi gui tyi n the l anguage of A r t i cl e V I I , Sect i on 1
r equi r i ng V er i zon make non- l ay off I SP/ E I SP offer s t o al l i ndi vi dual s w i th the s ame j ob title a n d a t th e s a m e w o rk lo c a tio n .12 I I I . T he E x t ri nsi c E vi dence W e nextw i l l cons i derV er i zon’ s extr i ns i c evi dence
. I n r evi ew i ng thi s evi dence , h o w e v e r, w e w ill n o t re lyo n it t o “ ‘a d d ter m s to a c o n tra c t th a t is p lau sib lyc o m p lete
w i thoutthem. ’ ” I

nt ’ lU ni on, U ni t ed Aut o. , A er os

pace & A gr i c. I

m pl em ent W orker s of A m er i ca, U
. A
. W

. v. Ski nnerE ngi ne C o. , 188 F. 3d 130, 146 ( 3d C i r . 1999) ( quot i ng B i dlack v
. W

heelabr at orC or

p. , 993 F. 2d 603, 608 ( 7th C i r . 1993) ( en banc ) )
. I ns t ead,

“‘ ther e mustbe ei thercontr actual l anguage on w hi ch t o hang the l abel of ambi guous or s om e y aw ni ng voi d t hatcr i es outforan i m pl i ed t erm . ’ ” Ski nnerE ngi ne C o. , 188 F. 3d at 146 ( quot i ng B i dlack , 9 9 3 F .2 d a t 1 0 8 ) (e lli p sis o m itt e d ); see al so A m er i can C

ynam i d C o.
v. Fer m enta A ni m alHeal th C o. , 54 F. 3d 177, 182 ( 3d C i r . 1995) ( emphasi zi ng that“the focus m us tr emai n on the l anguage chos en bythe part i es , ” and thatthe “t extunambi guous
w hen ac cor ded the comm onl yunder s t ood m eani ng of i t s w or ds cannotbe di s r egar ded unl es s the extr i ns i c evi dence i s s uch as m i ghtcaus e a r eas onabl e fa ctfi ndert o under s t and th e tex t d if

f e re n tly ” ); Team s t ers I

ndus
. E m pl oyee s W

el f ar e Fund v. R ol l

s - R oyce Mot or C ars , I nc . , 989 F. 2d 132, 134 ( 3d C i r . 1993) ( hol di ng that“overw hel m i ng and
u n c o n tr a d ic te d ” e x tr in s ic e v id e n c e c a n b e c o n tr o llin g a s to a c o n tr a c t’ s in te rp re ta tio n ). V er i zon poi nt s t o t he fol l ow i ng extr i ns i c evi dence : T he companyhas pr ovi ded t e s t i monyfr om V e r i z on mana ge r s tha t , fr om 199 0 u nt i l 20 01 , i tha s op e r a t e d i t s I SP/ EI SP pr ogr am for non- l ay off e m pl oy ees bydecl ar i ng s urpl us es w i thi n w or k gr oups w i thout compl ai ntfr om L ocal 827. V er i zon furtheras s ert s thatL ocal 827 w as aw ar e of the w ayO ne i l l us tr at i ve exa m pl e i s an I SP l ett ers entt o L ocal 827' s pr es i denton M ar ch 28, 6 19 95 . In i tthe co m pan yw ri t es:

T hi s i s t o i nform y ou thatfor ce s urpl us exi s t s i n the C om put er i zed Bi l l i ng O per at i on O r gani zat i on. I ti s i nt ended t o offe rI SP t o A s s oci at es i n the foll ow i ng t i t l es and locat i on s: [Job T i t l e – S ervi ce A naly st s ( 29 E m ploy ees) a n d G e n e ra l C le rk s (1 1 E m p lo y e e s ); L o c a tio n – 1 1 0 0 O ra n g e A v e ., C ra n f o rd ]. E xcerpt s of R ecor d ( “E. R . ”) at671. T h e f o ll o w ing is an ex am p le of a typ ical l ett er d etail ing an E IS P o ff er: 7 [J une 19, 1995] T hi s i s t o advi s e y ou thata for ce s urpl us exi s t s i n the

I nform at i on Sy s t ems, Pr oces s M anage m entdi s tr i ctl ocat ed i n M adi s on, N e w Je rse y . T h e C o m p a n yw ill b e o f f e rin g [ E IS P ] to o n e (1 ) A ss o c iate in th e S e rv ice A n a ly st titl e . T h e n a m e , so c ial s e c u rityn u m b e r a n d N C S d a te o f th e e f f e c te d [ s ic ] e m p lo y e e a re a tta c h e d f o r yo u r i n f

o rm a tio n . I f s urpl us s t i l l exi s t s atthe conc l us i on of the off er , i ti s the C o m p a n y ’s in te n tio n to p ro c e e d to la y o f f to a lle v ia te th e s u rp lu s . . . . E . R . at673. 13 the I SP/ E I SP progr am w as bei ng admi ni s t er ed bec aus e the companys enta l ett ert o the uni on eac h t i m e a s urpl us w as i dent i fi ed and a n I SP/ E I SP offerm ade. B etw een 1990 a nd 20 01 , app roxi m at el ythirtysuch n oti ces w ere s ent t o L ocal 827
. T he spec i fi ci tyof these l ett er s var i ed a gr eatdeal
. G ener al l ythe I SP l ett er s s t at ed thatthe off erw oul d go t o j ob tit les a t w o rk lo c a tio n s w ith o u t sp e c if y in g th a t th e o f

f e rs w o u ld b e lim ited to in d iv id u a ls
w ith in id e n tifie d w o rk g ro u p s. T h e E IS P lette rs te n d e d to b e m o re sp e c if ic a n d typ ica lly 6 had ei theran att achmentl i s t i ng the empl oy ees w i thi n a w or k gr oup w ho ar e t o r ece i ve a benef i t s offe r , or , al t ernat i vel y , the l ett erw oul d s t at e the numberof empl oy ees w i thi n a p a rticu lar w o rk g ro u p w h o a re e lig ib le to re c e iv e th e o f f e rs. H a v in g re v iew e d th is 7Itis al so u n clea r fro m the re co rd th at a w o rk g rou p is ne ce ssaril ya su b set o f a w o rk 8 l ocat i on i n al l i ns t ance s . I f ther e ar e w or k l ocat i ons thathous e a s i ngl e w or k gr oup, L ocal 8 2 7 w o u ld b e u n ab le t o d iscern fro m the lett ers tha t ben ef ito ff ers loc ali ze d to a w o rk gr oup nece s s ar i l ym eantthatot hernonpart i ci pat i ng w or k gr oups w er e al s o hous ed att he s ame w or k l ocat i on. 14 evi dence , w e conc l ude V er i zon’ s pr offe rdoes notcr eat e ambi gui tyi n the pl ai n m eani ng of A r t i cl e V I I , Sect i on 1. B ecause the ext ri nsi c evidence is on l yusefu l i nsofa r as i ti l l um i nates the p art i es’ under s t andi ng of the contr actual l anguage , w e foc us on the l ett er s thatpurpor tt o s how that fo r ov er a d ec ad e L o ca l 82 7 w as a w are o f a n d co n ti n u all yac q u iesce d in V erizo n ’s d ire c ted b e n e f

it o f f e rs to in d iv id u a ls w ith in a w o rk g ro u p . T h e se lette rs, w h ile h e lp f u l to V er i zon, do noti ndi cat e ei ther“contr actual l anguage on w hi ch t o hang the l abel of ambi guous ors om e y aw ni ng voi d t hatcr i es outforan i m pl i ed t erm , ” Ski nnerE ngi ne C o. , 188 F. 3d at146 ( quot i ng B i dlack , 9 9 3 F .2 d a t 1 0 8 ) ( e llip s is o m itte d ). I ti s cl earfr om m anyof the l ett er s thathad the uni on l eade r s hi p pai d bett er att ent i on t o t he l ett er s , the l eade r s hi p w oul d have unde r s t ood thatthe companyw as at l eas tpot ent i al l yi nt erpr et i ng the l anguage of A r t i cl e V I I , Sect i on 1 i n a manner i nc on s i s t e ntw i th the un i on ’ s own und e r s t a nd i ng of tha tl a ng ua ge . To be s ur e , the I SP l ett er s ar e notm odel s i n cl ar i ty . T hough the l ett er s i dent i fythata s urpl us exi s t s i n a p a rticu lar w o rk g ro u p , the yth e n g o o n to sta te th a t IS P o f f e rs w o u ld b e m a d e p u rsu a n t to “Jo b T it le” a n d “L o ca ti o n . ” T h is l att er d esc ri p ti o n , o f c o u rse, acc o rds w ith the u n ion ’s
r eadi ng of A r t i cl e V I I , Sect i on 1. N onethel es s , gi ven the manyl ett er s overthe t en- y ear 8V er i zon ar gues thatthe depos i t i on t es t i m onyof uni on s t ew ar d, Fr ed M azz ar o, 9 s uppor t s i t s ar gum entthatL ocal 827 w as act i vel yaw ar e thatbenef i toffe r s w er e bei ng m ade byw or k gr oup. H ow ever , M r . M azz ar o’ s t es t i m onyi s thata 1996 non- l ay off I SP/ E I SP offerw as “a s peci al offe r[m ade] j us tforhi s gr oup, ” w hi ch i ndi cat es thathe under s t ood the off

erw as notm ade i n acc or dance w i th the C B A . E . R . at293. Fur ther , he a lso tes tifie d th a t “if

V e riz o n is g o in g to c o m e in a n d o f f e r th e E n h a n c e d IS P o r IS P to its em p loy ee s, theysh o u ld co m e in b yti tl e a n d loca ti o n . ” E . R . at 29 5 . T h u s M r. M az za ro’s tes tim o n yd o e s n o t su p p o rt V e riz o n ’s c laim th a t th e u n io n re a d A rticle V II, S e c tio n 1 to e m p o w e r V e ri z o n to m a k e n o n -l a y o f f b e n e f it o f f e rs b yw o rk g ro u p . V e riz o n a lso p o in ts th e c o u rt to a 1 9 9 2 lette r se n t to th e p re sid e n t o f L o c a l 8 2 7 in 10 w hi ch the companys t at es thati tw i l l m ake a one- t i m e off ert o a s ervi ce a nal y s tw ho w as 15 tim e sp a n , a c a re f

u l ex a m in a tio n o f

th e se lette rs m ig h t h a v e led th e u n io n lea d e rsh ip to ques t i on the company ’ s i m pl ement at i on of A r t i cl e V I I , Sect i on 1. 9 E ven as w e recogn i ze t hat the lett ers l end som e supp ortt o V eri zon ’s argum ents , w e do notfi nd them so compel l i ng as t o r equi r e a r adi cal r econs truct i on of the contr act l anguage negot i at ed bythe uni on and the company
. Pr i ort o 2001, ther e w er e no empl oy ee- dr i ven compl ai nt s aboutthe w aythe companym ade be nefi toffe r s . T her efor e, as th e u n ion co rrectl yp o ints ou t, ev en if th e lea d ersh ip w as a w are o f th e c o m p an y ’s
c o n f lictin g in terp re tatio n o f A rticle V II, S e c tio n 1 , ith a d n o re c o u rse th ro u g h w h ich to form al l ys t at e i t s obj ect i ons unt i l the i ndepende ntfi l i ng of a gr i evanc e bya uni on
m ember
. Si nce the uni on cannotcompel a mem bert o r et i r e orotherw i s e l eave hi s orher
em p loym en t atthe c o m p an yso lel yfo r th e p u rpo se o f c h all en g ing V erizo n ’s
un derst and i ng of the C B A , the u nion’s fai l ure t o p rot estbefo re 2001 cann ot be t aken as a part i cul ar l yhel pful s i gnal of how L ocal 827 under s t ood the contr actual l anguage dur i ng thi s per i od. T hus , w e conc l ude thatV er i zon’ s evi dence i n s uppor tof i t s i nt erpr et at i on

10n o t part of the d ec lared su rplu s. E . R . at 61 6 . T h is l ett er d o es n o t, h o w ev er, sup p o rt V er i zon’ s ar gum entthatA r t i cl e V I I , Sect i on 1 i s ambi guous beca us e i tcl ear l ydes cr i bes the partyr ece i vi ng the off eras non- s urpl us . E ven i f the empl oy ee w as – as V er i zon now c laim s – rig h tlya su rp lu s e m p lo y e e u n d e r th e p lain m e a n in g o f A rticle V II, S e c tio n 1 , itis notcl eart o us thatthe pr es i dentof Local 827 w oul d have pos s es s ed s uffi ci ent in f o rm a tio n to m a k e th a t d e te rm in a tio n in d e p e n d e n tly o f V e ri z o n ’s c h a ra c te ri z a tio n . C ons equent l y , L ocal 827' s 1992 acc ept ance of V er i zon’ s des cr i pt i on of the empl oy ee a s non- s urpl us i s notcompel l i ng evi dence i n s uppor tof the company ’ s i nt erpr et at i on of the C B A . 16 of A r t i cl e V I I , Sect i on 1 i s i t s el f ambi guous and, ther efor e, does notoper at e t o r ender
a m b ig u o u s th e p la in la n g u a g e o f th e C B A . Cf

. R ol l s - R oyce Mot orC ars , I

nc . , 989 F. 2d at 1 3 4 . I V . C oncl usi on F o r t h e f o re g o in g re a s o n s , w e w ill a f f ir m th e o rd e r o f

th e D is tr ic t C o u rt .

R E N D E L L , C i r cui tJ udge, di s s ent i ng. B ygi vi ng l as er - l i ke s crut i nyt o the phr as es “j ob t i t l e” a nd “l ocat i on, ” and concl udi ng thatthe abs ence of the t erm “gr oup” or“depa r t m ent ” i s of cr i t i cal
s ig n if ic a n c e , s ee M aj
. O p. at6- 9, the maj or i tycas t s as i de a de cade of pr act i ce that
s ugges t s , i ndeed, r equi r es , thatthe conc eptof a “ s urpl us ” as us ed i n A r t i cl e V I , Sect i on 1 of the C B A , w hen com bined w i th the st at em ent that V eri zon “determ i nes” t he surpl us,
m eans oras s um es appl i cat i on w i thi n a part i cul arfunct i onal gr oup ordepart m ent . T he
m is c h ie f in w h ic h w e e n g a g e u n d o e s p a s t p ra c tic e e n tir e ly, d e c la ri n g it v e rb o te n . W her eas V er i zon coul d pr evi ous l ydeal w i th a s urpl us of ana l y s t s i n the bookkee pi ng17

d e p a rtm e n t to e v e ry o n e ’s s a tisf a c tio n b yo f

f e rin g IS P b e n e f

its so lelyto a n a ly sts w ith in th a t d e p a rtm e n t, i t n o w c a n o n lyre m e d yth e situ a tio n b yo f f e rin g IS P b e n e f

its to a ll anal y s t s , and onl yi f ther e i s a s urpl us of ana l y s t s over al l ata gi ven l ocat i on, w hi ch may h o u s e te n o r f

if te e n g ro u p s . T he maj or i ty ’ s opi ni on i m pos es a r adi cal l ydi ffe r entbus i nes s r eal i tyon V er i zon and the w or ker s ; befor e w e do s o, w e s houl d m ake s ur e thatthe det erm i nat i on of s urpl us
w i thoutthe abi l i tyt o cons i derthe gr oup ordepart m entw as cl ear l ycont empl at ed and agr eed upon. I n A m er i can C yanam i d C o. v. Fer m enta A ni m alHeal th C o. , 54 F. 3d 177 (3 d C ir. 1 9 9 5 ), w e n o ted th e im p o rta n c e o f lan g u a g e , b u t als o o f

e v id e n c e th a t co u ld in f o rm m e a n in g , an d sta ted th a t “a tex t u n a m b ig u o u s w h e n a c c o rd e d th e c o m m o n ly under s t ood m eani ng of i t s w or ds cannotbe di s r egar ded un l ess th e ex trin sic e v ide n c e is
su c h a s m ig h t ca u se a re a so n a b le fa c t fi n d e r to u n d e rs ta n d th e tex t d iff

e re n tly , ” i d. at182 ( emphasi s added)
. H er e, w e have s uch evi dence
. I , ther efor e, r es pect ful l ydi s s ent , and
w oul d r ever s e and r emand fora det erm i nat i on of the part i es ’ i nt enti n or dert o under s t and the meani ng of the pr ovi s i on i n ques t i on. I cannoti m agi ne thatthe meani ng as cr i bed by th e m a jo rityw o u ld p re v a il.