Valley Group Pipe Trades Trust Fund v. L. R. Strain Plumbing & Heating Co.

GRIFFIN, J. This is an action for an accounting between the plaintiffs and appellants, as members of the Valley Group Pipe Trades Trust Fund, and defendant and respondent L. R. Strain Plumbing and Heating Company, Inc., a corporation. It arises out of claimed written collective bargaining agreements, not signed by defendant corporation, which provide that the employer shall contribute to said trust fund (welfare fund) 7% cents per hour for each hour worked by each employee, for the purpose of purchasing certain insurance benefits for the employees. The claim is that although defendant did not sign these instruments, it did, by oral declarations, promises and acts of the officers [433]of the corporation, agree to be bound by them and failed to make such payments. The court found against plaintiffs’ contentions and found generally that defendant neither “orally agreed or otherwise” to become bound by the agreement to pay any amount into said welfare trust fund, nor did it agree to be bound by the provisions of the collective bargaining agreement and declaration of trust.

Defendant was engaged in the general plumbing and contracting business. It was incorporated in 1948. L. R. Strain was president and principal stockholder. Apparently, defendant was then operating under an agreement dated June 23, 1947, between the “Northern California Conference of the Plumbing and Heating Industry, Inc” (of which defendant was not a member) and such other employers as “may become signatory hereto” and certain listed local unions. The agreement applied to all workmen employed by the individual employers covered by the agreement in which they recognized the union as the sole collective bargaining representative of all such employees performing work over which the nnion had jurisdiction. Therein the union agreed to furnish competent workmen for the production of all work covered by the agreement. It likewise contained a provision in reference to a contemplated welfare plan in which the parties signatory agreed “subject to any wage stabilization policies” or requirements, that they will establish a health and welfare plan for workmen covered by the agreement to be jointly administered by a board of trustees of five representatives of employers and five representatives of the union, commencing August 1, 1951, and that the individual employer shall pay $.075 per hour for each hour worked by workmen into the welfare fund. It also provided that in the event no welfare fund was established, etc., the $.075 should be returned to the individual employer paying into the fnnd. It provided that the agreement was to be effective as of June 30, 1951, and remain in force until June 30, 1952, and from year to year thereafter unless 60 days’ notice was given of a desire to modify or change its terms. The agreement received in evidence (Ex. 5) does not indicate that defendant became a signatory thereto. The health and welfare plan here referred to was never established or set up under that agreement, and defendant made no payments under it.