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Subject-matter Jurisdiction – Collective Bargaining Agreement

By: Derek Hawkins//September 14, 2020//

Subject-matter Jurisdiction – Collective Bargaining Agreement

By: Derek Hawkins//September 14, 2020//

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7th Circuit Court of Appeals

Case Name: Daniel Sarauer, et al., v. International Association of Machinists, et al.,

Case No.: 19-3142

Officials: MANION, HAMILTON, and BARRETT, Circuit Judges.

Focus: Subject-matter Jurisdiction – Collective Bargaining Agreement

Private labor relations in this country are governed almost exclusively by federal law. This case is about the “almost.” Under federal law, unions and employers may enter into collective bargaining agreements with “union security” clauses, which require employees either to become union members after being hired or, if they do not join, to pay fees to the union for representing them, as federal law requires of the union. Congress has allowed states to take a different view of such clauses, however. More than half the states today have “right to work” laws prohibiting unions and employers from entering into union security agreements.

Wisconsin’s Act 1 enacted in 2015 is a right‐to‐work law. Plaintiffs are ten Wisconsin employees who contend that Act 1 invalidated the union security clause in the 2015–2018 collective bargaining agreement between their employer and their bargaining unit’s union, both defendants here. Plaintiffs filed this suit in a Wisconsin state court, and defendants removed to federal district court. The district court held that removal was proper because the case arises under federal law, not state law. The court then held as a matter of federal law that defendants’ collective bargaining agreement was formed before Act 1 took effect so that plaintiffs are not entitled to relief. The court granted summary judgment for the defense. We affirm as to both jurisdiction and the merits.

Affirmed

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.

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