Allied Sales Drivers and Warehousemen, Local No. 289, International Brotherhood of Teamsters; Teamsters Local No. 120, Plaintiffs - Appellants
Sara Lee Bakery Group; Sara Lee Corporation, Defendants - Appellees
Submitted October 23, 2013.
Appeal from United States District Court for the District of Minnesota - Minneapolis.
For Allied Sales Drivers and Warehousemen, Local No. 289, International Brotherhood of Teamsters, Teamsters Local No. 120, Plaintiffs - Appellants: James Theodore Hansing, Midland Square Building, Minneapolis, MN; Fred R. Jacobberger, Jacobberger & Micallef, Bloomington, MN.
For Sara Lee Bakery Group, Sara Lee Corporation, Defendants - Appellees: Patrick Robert Martin, Jody A. Ward-Rannow, Ogletree & Deakins, Minneapolis, MN.
Before RILEY, Chief Judge, COLLOTON and KELLY, Circuit Judges. COLLOTON, Circuit Judge, concurring in the judgment.
RILEY, Chief Judge.
Sara Lee Bakery Group of Sara Lee Corporation (Sara Lee) and Allied Sales Drivers and Warehousemen, Local No. 289, International Brotherhood of Teamsters, and Teamsters Local No. 120 (collectively, " unions" ) entered into a collective bargaining agreement (CBA) and an outsourcing agreement. The outsourcing agreement permitted Sara Lee to outsource covered functions to a contract company provided the contract company hired from Sara Lee's displaced employees. If Sara Lee decided to outsource and
" subsequently changes subcontractors," the outsourcing agreement also required that Sara Lee ensure the new contract company conform to " the then current labor agreement" for that agreement's " remaining term."
Sara Lee did outsource one of the covered functions, and the contract company hired Sara Lee's displaced employees. However, Sara Lee refused to require the contract company to adhere to the CBA for its remaining term, which the unions contended was a breach of the outsourcing agreement. In the ensuing litigation, the district court granted Sara Lee's motion for summary judgment, reasoning the CBA had no " remaining term" to which the outsourcing agreement could apply. We affirm.
The CBA between Sara Lee and the unions covered sales employees, mechanics, and transport drivers at Sara Lee's location in Fergus Falls, Minnesota. The CBA's term ran from October 14, 2007, through October 9, 2010. This CBA purported to " embod[y] the entire agreement between the parties" and required that " any agreements modifying, changing or adding to [the CBA] must be in writing and signed by the parties." In March 2008, Sara Lee and the unions agreed in writing to an outsourcing agreement which allowed Sara Lee to outsource the Fergus Falls, Minnesota, transport/mechanic function without the unions' objection if a number of requirements were met. The most pertinent paragraphs read:
[¶ 2] The parties agree that in the event a decision is made regarding the outsourcing of the Fergus Falls, MN transport/mechanic group, the new contracted company will fill its employment needs from the current transport drivers/mechanics who meet its qualifications and the new contracted company will recognize and acknowledge that Teamsters Local No[.] 289 and 120 is the duly authorized collective bargaining representative for all employees within the Fergus Falls, MN transport/mechanic group, and will bargain with Teamsters Local No. 289 and 120.
[¶ 3] The parties agree that in the event a decision is made regarding the outsourcing of the Fergus Falls, MN transport/mechanic group, any employee on leave due to a work related injury at Sara Lee will be allowed to apply for employment opportunity with new contracted company on date he/she is released to full duty from the treating physician.
[¶ 4] The parties agree that in the event a decision is made regarding the outsourcing of the Fergus Falls, MN transport/mechanic group, the new contracted company will recognize the seniority of current transport/mechanic employees that contracted company employs for purposes of vacation, holidays, layoff, and recall.
[¶ 5] The parties agree that in the event Sara Lee makes a decision to outsource transportation/mechanic and subsequently changes subcontractors for [the] transportation function at its Fergus Falls, MN locations Sara Lee will require any new subcontractor to accept the then current labor agreement for the remaining term of that agreement.
[¶ 6] The parties agree that in the event a decision is made regarding the outsourcing ...