International Brotherhood of Teamsters, Local 701 v. Stroehmann Bakeries,(D.N.J. June 22, 2010)
Local 701 and Stroehmann entered into a collective bargaining agreement (“CBA”) which, among other things, prohibited private agreements between Stroehmann and its employees and provided instead that all agreements must be between Stroehmann and Local 701. John Cash, a Stroehmann employee and member of Local 701 was terminated for poor attendance. Cash was diagnosed with cancer. Stroehmann entered into a “last chance agreement” (“LCA”) with Cash whereby Cash was permitted to return to work and required him to submit medical documentation for any absence. Cash was repeatedly absent, failed to submit medical documentation, and was fired. A grievance was submitted to arbitration under the CBA and, based on Cash’s violation of the LCA, the arbitrator upheld Cash’s termination.
Local 701 filed a complaint to vacate the arbitration award arguing that the LCA was a private agreement in violation of the clear terms of the CBA. The District Court affirmed the arbitrator’s award finding the LCA was not a prohibited private agreement because a union business agent was present for and participated in the negotiations between Cash and Stroehmann concerning the LCA. Local 701 argued the arbitrator disregarded the language of the CBA but the Court noted that the arbitrator’s opinion quoted the exact language of the CBA regarding private agreements and interpreted the facts in light of the CBA. The court concluded the arbitrator’s award “drew its essence from the CBA” was supported by the record and therefore did not manifestly disregard the law. Where an arbitration award has some support in the record and the arbitrator has not manifestly disregarded the law, the award must be affirmed. Stroehmann’s motion to dismiss was granted.
For a copy of the decision, click here
Patrick Omilian and Jeffrey Kingsley