District 90 Wins Huge Arbitration Victory

February 1, 2006  IAM District 90 in Indianapolis, IN won a huge arbitration award of $330,010.12 for 55 members of Local 1315 working at Dexter Axle Company.

IAM DL 90 BR Dave Perkins and Local 1315 members celebrate their huge win!

The back pay award was a result of the company instituting a new incentive rate for assemblers back in September of 2001 which drastically cut the earnings of these employees. The Union grieved this change on behalf of our members and the Arbitrator issued his final award back on September 17, 2003.  The arbitrator ruled that the grieved rates were not proper and that the company owed the back pay as if the old rates were still in affect.

The company took the case to U.S. District Court (Northern District of Indiana) alleging that the arbitrator overstepped his authority in this matter. On November 19, 2004 the court ruled Summary Judgement in favor of the Union.

The company appealed to the U.S. Court of Appeals 7th Circuit in Chicago, IL and the court ruled Summary Judgement in favor of the Union on August 15, 2005.

After some time, the company chose not to appeal the case any further. The Union then audited the back pay amounts our members were due.  Following that audit, members received between $8,000 and $10,000 just in time for Christmas.  Needless to say the spirit of our members was very high the day the photo above was taken!

IAM Midwest Territory General Vice President James E. Brown congratulated District 90 DBR John Silhavy and BR Dave Perkins saying, "This was a tremendous effort on behalf or our members at Dexter Axle Company. Clearly, a union contract and grievance procedure pays.  We wish DBR Silhavy and BR Perkins continued success and praise them for a job well done."