"And they're off" – Louisville federal district court vacatur of labor arbitration award overturned by court of appeals

The case of Zeon Chemicals, L.P. v. United Food & Commercial Workers, No. 19-5703 (6th Cir. 2020), decided on February 13, 2020, touches upon both arbitration awards and labor issues.

In the case, the employer (Zeon) had fired a 22-year employee who missed work while serving a 30-day jail sentence based on a felony conviction. In connection therewith, the company had refused the employee’s vacation request because other employees had scheduled time off during the same slot. Additionally, notwithstanding company policy (given the 22-year history of the employee) that actually provided for a potential suspension of the employee for the 30 days during which the jail term was being carried out, the company refused the suspension – wanting to avoid creating an impression that employees breaking the law did not face any sort of real consequences at the company.

The employee took the matter to arbitration in accordance with the applicable collective bargaining agreement, and the arbitrator reinstated the employee, modifying the discharge to a 30-day suspension. Appeals to the local federal district court in Louisville, Kentucky, ensued, and the district court vacated the arbitrator's award, finding that the arbitrator misread the CBA, thereby “exceeding his authority” in the process.

The United States Sixth Circuit Court of Appeals reversed the district court and restored the arbitrator’s original decision, noting that, “as long as the arbitrator is even arguably construing or applying the contract” – a “modest hurdle” – the court would uphold the arbitrator’s decision, right or wrong.

A full copy of the appellate court’s decision can be found here: https://law.justia.com/cases/federal/appellate-courts/ca6/19-5703/19-5703-2020-02-13.html?utm_source=summary-newsletters&utm_medium=email&utm_campaign=2020-02-14-arbitration-mediation-a6c6806b54&utm_content=text-case-title-1