Union of Telephone Workers v. New York Telephone Co.
The Union, representing employees in Commercial and Headquarters Departments, sued the Company under § 301 of the Labor Management Relations Act of 1947 to compel arbitration of a labor dispute. The dispute arose after the Company made substantial changes to work assignments for Representatives and Toll Service clerks, but refused to adjust their wages. The Union contended that the collective bargaining agreement, specifically Appendix A, obligated the Company to negotiate fair wage adjustments for such changes, and that if negotiations failed, the matter was arbitrable under Article XIV. The Company argued that its obligation extended only to negotiation, and that the dispute was not arbitrable. The District Court, applying federal labor law, determined that the issue of whether the Company had an obligation to make fair wage adjustments and whether it performed that obligation, constituted an arbitrable dispute under the agreement's arbitration clause. The court emphasized that doubts about arbitrability should be resolved in favor of coverage. Therefore, the Company's motion for summary judgment was denied, and the Union's motion for summary judgment compelling arbitration was granted.