Court Opinion

ID: 9489865
Source: CourtListenerOpinion
Date Created: 2023-08-05 13:26:13.823812+00
Date Added: 2024-06-11T17:53:45.663499
License: Public Domain

McMILLIAN, Circuit Judge,
dissenting.
I respectfully dissent. The arbitrator correctly observed that the CBA must be read as a whole in determining the respective rights and responsibilities of the parties. Joint App. at 47. I agree with the arbitrator’s conclusion, upon review of the CBA as a *1471whole, that tension exists between Article XIII, Section 7E, and Article III of the CBA, resulting in ambiguity in the contract. Therefore, in my opinion, the arbitrator acted appropriately in resolving the ambiguity by reference to parole evidence.
The evidence presented to the arbitrator demonstrated that the Company initially proposed in the collective bargaining negotiations a provision requiring loss of seniority based upon absences from work for any reason for a period of six months. Id. at 34. The Union responded by proposing a two-year time period instead of six months, with an exclusion for any employees injured on the job or receiving workers’ compensation. Id. at 34-35. Consistent with these facts, the handwritten notes of Robert D. Mellinger, the Company’s chief negotiator, included the following notation: “2 years—W.C. excluded.” Id. at 35. The Company and the Union then agreed to submit certain issues, including this loss of seniority issue, to subcommittees. Union representative Gerald E. Dodds testified that he, along with Company representative Dave Wessling and others, was on the subcommittee that addressed the loss of seniority issue and that they met on January 28, 1988. Id. According to Dodds, the Company again proposed, in the subcommittee, contract language that required loss of seniority based upon absences from work “for any reason [for] a period of six (6) months.” Id. Dodds further testified that “the Union then proposed that leaves of absences last twelve months, provided that employees injured on the job and/or who were on workers’ compensation be retained past that period.” Id. at 35-36. Dodds also testified that “we were in a subcommittee meeting and it was settled that one would lose seniority after one year with the exception of workman’s comp.” Id. at 36. Dodds’ contemporaneous handwritten notes (which the Company provided) accordingly stated in the margin: “work comp, doesn’t count.” Id.
Upon review of this and other evidence presented, the arbitrator observed “it is undisputed that the Union in' negotiations steadfastly insisted on excluding employees injured on the job from any agreement to limit the time of other leaves. Thus, Mel-linger’s own October 22-23, 1987, bargaining notes state that the Union had proposed: ‘2 years—W.C. excluded.’” Id. at 53. The arbitrator further noted “there is no evidence in this record showing that the Union ever expressly dropped its insistence that employees injured on the job be so excluded. Indeed, Mellinger testified that his bargaining notes contain no reference whatsoever to any such drop.” Id. Moreover, the arbitrator observed, “Dodds testified without contradiction that the Union on January 28, 1988, reiterated this exclusion to Wessling and that the Union then agreed to the one year limitation ultimately agreed to on the express condition that it not cover employees injured on the job.” Id. at 53-54., In light of these circumstances, the arbitrator' reasoned, “the Company was then required to affirmatively state that it was not agreeing to the workers’ compensation exclusion if that was the message it wanted to convey at the time.” Id. at 59. Having failed to do so, the arbitrator opined, the Company, by its silence and other conduct, manifested its assent to the exclusion as stated in the Union’s counterpro-posal. Id. In other words, the Company had induced the Union into believing it had agreed to the exclusion and, consequently, it was bound to honor the exclusion. Id. at 59-60.
I' agree. The parole evidence presented at the arbitration hearing was appropriately considered and abundantly supported the conclusion that the parties intended to exclude from Article XIII, Section 7E, any employee on leave due to injury on the job or on medical leave. The arbitrator’s award therefore does draw its essence from the CBA. Accordingly, I would reverse the order of the district court and uphold the arbitrator’s award.