William C. Waggoner, Etc. v. C & D Pipeline Company

The trustees of four employee benefit trusts appeal a summary judgment award in an action against C & D Pipeline Co. (“C & D”) for failure to make fringe benefit contributions allegedly required by a collective bargaining agreement. The question on appeal is whether the agreement requires contributions for all hours worked by employees who perform any covered work or only for the hours actually worked in covered employment. We hold that the agreement requires contributions for all hours worked by or paid employees who perform any work covered by the agreement.

I

The employee benefit trusts are established pursuant to the Master Labor Agreement between the International Union of Operating Engineers, Local Union No. 12 (“Local 12”) and the Southern California General Contractors Associations, a group of multi-employer associations. Since June 21, 1968, C & D has been a party to a short-form collective bargaining agreement with Local 12 that incorporates by reference the terms of the Master Labor Agreement. The Master Labor Agreement requires C & D to contribute to the trusts at specified rates for “hours worked by (or paid) each employee under this Agreement.” (Articles VIH, IX &…