The opinion of the court was delivered by: Parsons, District Judge.
MEMORANDUM OPINION AND ORDER
This is an action by Local 7-210, Oil, Chemical and Atomic
Workers International Union, AFL-CIO (OCAW) against Union Tank
Car Company (Company) to enforce the damages portion of a labor
arbitration decision. Jurisdiction is based on Section 301 of the
Labor Management Relations Act, 29 U.S.C. § 185. Both parties
moved the Court to dismiss and/or for summary judgment. A brief
reiteration of the facts as found by the arbiter is necessary for
a full understanding of the case.
In 1966, the Company purchased a vacated plant about three
miles away from its Whiting Plant and across the street from its
Graver Plant in East Chicago. The plant, since remodelled and
known as Plant No. 1, was designed and built as an integrated
tank car manufacturing plant with the object of using it as an
additional manufacturing facility in the Calumet area. In late
1966, the Company received a special order for foam insulated
tank cars, which, because of time schedules, it decided to have
built and finished in Plant No. 1. Upon learning that
Boilermakers were doing the finishing work, OCAW protested and
filed a grievance pursuant to its collective bargaining agreement
charging the Company with a violation of Article II, Section 1,
of its agreement. Said agreement states:
Recognition; Union Security; Checkoff
Section 1. This Agreement shall apply only to the
operations of the Company at its Whiting, Indiana
plant; provided, however, if such plant or operation
is moved to another location in the Calumet area,
this Agreement shall also apply to such other
In the grievance discussions which followed, the Company
declared that the protested job was only a temporary one and that
the employees assigned on it would return to the Graver Plant
when it was finished.
On March 31, 1968, the Company and the Boilermakers negotiated
a successor agreement to replace the one which expired on that
date. In said agreement, the Boilermakers recognition as
bargaining agent was extended to Plant No. 1. The arbiter was of
the opinion that when the Boilermakers recognition was extended
to Plant No. 1 "there was no thought in anyone's mind that the
Whiting finishing operation would be relocated there. * * * It is
much more realistic to suppose that both the Company and the
Boilermakers negotiators understood the extension of recognition
to cover only the fabricating work that was `presently' being
performed at the Graver Plant and not the finishing operation
which was being performed at Whiting."
Said agreement states in part:
Recognition and Relationship
Section 1. Recognition and Bargaining Unit. The
Company recognizes the Brotherhood as the sole
collective bargaining agent for wages, hours and
working conditions representing the following
appropriate unit, namely, all production and
maintenance employees at the Company's plant at 151st
and Railroad Ave., East Chicago, Indiana [Plant No.
1's location] * * *.
The new Company-Boilermakers agreement effective April 1, 1971,
adds some weight to the arbiter's ...