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Collective Bargaining Agreement – Interim Agreements

By: Derek Hawkins//September 8, 2015//

Collective Bargaining Agreement – Interim Agreements

By: Derek Hawkins//September 8, 2015//

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Civil

7th Circuit Court of Appeals

Officials: WOOD, Chief Judge, and FLAUM and EASTERBROOK, Circuit Judges

Collective Bargaining Agreement – Interim Agreements

No. 14-3737; 14-3726 Michels Corporation v. Central States Southeast and Southwest Areas Pension Fund

Short term agreement between employer and union altering duty of employer to contribute to pension fund sufficient to end employer duty and allow for new arrangement.

“Elsewhere the Trust Agreement also recognizes that there might be something other than a collective bargaining agreement. Article III lists “each new or successive collective bargaining agreement, including but not limited to interim agreements and memoranda of understanding between the parties” as among the items that must be sent to the Fund. The term “interim agreement” describes the extensions (and the November 11, 2015 amendment and extension) perfectly. The conclusion that these were separate agreements thus fits with the language of the 2006 CBA and with the language of the Trust Agreement. In concluding that the November 15, 2011 agreement was insufficient to allow Michels to withdraw from the Fund, the Fund contravened the plain language of the Trust Agreement. Its decision was therefore arbitrary and capricious.”

Reversed and Remanded

Full Text


Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.

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