A federal court in Chicago has found a Teamsters Union local liable for wage increases its members “would have received” had the local requested bargaining. Under the collective bargaining agreement, either the union or the employer could have requested a wage reopener by giving written notice to the other. The union, who did not track the date for doing so, gave late notice. The employer, within its right, said “no.” Members sued the union claiming that the local had not represented it fairly under federal labor law.
The court agreed with the members, finding that the local’s action was not mere negligence. The court found that the union’s action was arbitrary because there was a systematic failure of its contract deadline tracking procedures. Therefore, the union had to pay its members for missing the deadline. Begeske v. Teamsters Local 673, No. 09 CV 4009, (N.D. Ill., January 31, 2012).
Now, the court has to compute damages. The members maintain they would have received between 2.8 and 3.2 percent annually, and they are entitled to that plus compounded interest until retirement. Moreover, the court left open the possibility that it would award damages for emotional distress. Local 673, we are sure, is accepting donations.