Libby, McNeil & Libby, California Canners & Growers, a Corporation v. United Steelworkers of America, Afl-Cio, an Unincorporated Labor Organization

Libby, McNeil & Libby, Inc. (“Libby”) sought a judgment declaring that its collective bargaining agreement with United Steelworkers of America (“the Union”) did not obligate it to provide “Rule of 65” benefits in its pension plan. Libby contended it had never agreed to include these benefits, and if it had, it had done so by mistake. The magistrate found that Libby and the Union had mutually agreed that Libby’s pension plan would be amended to contain whatever pension benefits American Can Company provided in its pension plan. American Can’s plan contained Rule of 65 benefits, and, therefore, Libby was required to provide the same benefits. Judgment was entered accordingly. Libby appeals and we affirm.

FACTS

The Union represented employees at Libby’s can manufacturing plant in Sacramento, California. From 1974 until the plant closed in 1983, the Union negotiated collective bargaining agreements with Libby every three years. In 1974, Libby agreed to “duplicate” the pension plan previously negotiated by the Union with American Can Company (1974 Memorandum of Agreement). In 1977, although negotiations between the Union and Libby preceded the Union’s negotiations with American Can,…