Citgo Asphalt Refining Company v. The Paper, Allied-Industrial, Chemical, and Energy Workers International Union Local No. 2-991

385 F.3d 809, 175 L.R.R.M. (BNA) 3057, 2004 U.S. App. LEXIS 21348, 2004 WL 2303315
CourtCourt of Appeals for the Third Circuit
DecidedOctober 14, 2004
Docket03-1503
StatusPublished
Cited by47 cases

This text of 385 F.3d 809 (Citgo Asphalt Refining Company v. The Paper, Allied-Industrial, Chemical, and Energy Workers International Union Local No. 2-991) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citgo Asphalt Refining Company v. The Paper, Allied-Industrial, Chemical, and Energy Workers International Union Local No. 2-991, 385 F.3d 809, 175 L.R.R.M. (BNA) 3057, 2004 U.S. App. LEXIS 21348, 2004 WL 2303315 (3d Cir. 2004).

Opinion

McKEE, Circuit Judge.

CITGO Asphalt Refining Company appeals the district court’s confirmation of a labor arbitrator’s decision that CITGO’s zero tolerance drug abuse policy is unreasonable. For the reasons that follow, we will reverse.

I. FACTS

CITGO Asphalt Refining Company (“CARCO”) is a New Jersey partnership involved in the oil refining industry. CITGO Petroleum Corporation (“CIT-GO”), is the majority partner of CARCO. In December 1998, CITGO announced *811 that it was going to implement a new uniform national substance abuse policy, which included a zero tolerance policy (the “policy”), at all of its petroleum refining facilities in the nation. The policy was thereafter implemented at more than sixty locations. Local 3-0673 of the Paper, Allied-Industrial, Chemical and Energy Workers International Union (“PACE”) challenged the policy after it was implemented at CARCO’s asphalt plant in Savannah, and the challenge proceeded to arbitration. The arbitrator ruled that the policy was proper, valid and reasonable in all respects, and issued an opinion and award denying the Union grievance in its entirety. The policy was also challenged at CARCO’s asphalt plant in Paulsboro, New Jersey, where the hourly workers are represented by PACE Local 2-991. There, Local 2-991 argued that the new zero tolerance policy changed the existing policy as follows:

(1).... Under the old policy, urine tests for drugs were given during the annual physical, with the individuals to be given their physical exams and receiving a written questionnaire a week or two before the physical notifying them that they were going to be scheduled for their physical and requiring them to respond to the questionnaires. They were given one or two days advance notice of the annual physical after they had completed the questionnaire. Other than this drug testing as part of the annual physical, there was not random testing. Under the new policy, random testing is done immediately after receiving notice.
(2). Under the old policy, off-duty conduct could not be a violation, but it is ... under the new policy.
(3). [Under the old policy] [Clause, suspicion or technical performance problems or occurrence of an accident or incident or safety violation could trigger a drug test as part of the annual physical. Under the new policy, drug testing can be done without any of these prerequisites.
(4). Under the old policy, employees who tested positive during an annual physical were given an opportunity for rehabilitation, i.e., a second chance. But, under the new policy, no employee is given a second-chance opportunity unless they come forward and admit their drug use prior to any positive drug test, called “self-acknowledgment.”

Local 2-991’s Br. at 9-10.

Local 2-991 challenged the new policy by filing two grievances. One alleged an “Improper implementation of a ‘new” drug and alcohol policy.” That grievance claimed that CARCO violated the controlling collective bargaining agreement (“CBA”) by not bargaining over the new policy, 1 and that the policy violated a provision of the CBA dealing with future bargaining. The other grievance alleged that the “Company implemented a drug and alcohol policy that is totally unreasonable.”

The grievances proceeded to arbitration after the parties agreed upon the following submission:

Did CITGO violate Article XXX of the Labor Agreement by improperly implementing its National Substance Abuse Policy at the Paulsboro facility on Octo *812 ber 1, 1999. If not, was the policy unreasonable?

At the arbitration hearing, the parties stipulated that the Management Rights Clause (Article III) and the Future Bargaining Clause (Article XXX) in the then current CBA were identical to those contained in every CBA that had been in effect at Paulsboro since 1977. Article III, the Management Rights Clause provides, in applicable part, as follows:

Except to the extent expressly abridged by an express and specific provision of this Agreement, the Company reserves and retains all of its Common Law or other rights to manage the business as such rights existed prior to the execution of this or any other previous Agreement with the Union or any other Union. The rights of management which are not abridged by this Agreement, shall include, but are not limited to: ... make and enforce rules for the maintenance of discipline and safety, and to suspend, discharge, or otherwise discipline employees for just cause. The listing of specific rights in this Agreement is not intended to be nor shall it be restrictive of or a waiver of any of the rights of management not listed and specifically surrendered herein, whether or not such rights have been exercised by the Company in the past.

Article XXV of the CBA, entitled: “Grievance Procedure and Arbitration,” provides, in relevant part, as follows:

25.1. Grievances are defined as alleged violations of express and specific provisions of this Agreement occurring during the term of this Agreement or any renewal or extension thereof.... Neither the Union nor an employee shall use or attempt to use the grievance procedure as a means of changing, amending, modifying, supplementing or otherwise altering in any respect whatsoever this Agreement or any part thereof.
# * * * * *
25.4. The Union and the Company both agree that the submission to the arbitrator shall be based on the original written grievance submitted in the grievance procedure....
‡ # * ❖ * *
25.6. The power and authority of the arbitrator shall be strictly limited to determining the meaning and interpretation of the explicit terms of this Agreement as herein expressly set forth. The arbitrator shall not have authority to add or to subtract from or modify any of said terms, or to limit or impair any Common Law or other right of the Company, or to establish or change any wage or rate of pay.... The parties agree that the power and jurisdiction of any arbitrator chosen hereunder shall be limited to deciding whether there has been a violation of a provision of this Agreement. The arbitrator shall not substitute his judgment for that of the Company in the absence of a clear abuse of discretion. The arbitrator shall not be empowered, and shall have no jurisdiction, to base his Award on any alleged practices or oral understandings which are not incorporated in writing in this Agreement....

Article XXX, the Future Bargaining Clause, provides:

The parties acknowledge that, during the negotiations which resulted in this Agreement and any attachments hereto, each had the unlimited right and opportunity to make demands and proposals with respect to any subject ... not removed from the area of collective bargaining ... and therefore each waives the right to further bargaining on any subject not covered or covered under *813 this Agreement and any attachments hereto during the term hereof.

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Bluebook (online)
385 F.3d 809, 175 L.R.R.M. (BNA) 3057, 2004 U.S. App. LEXIS 21348, 2004 WL 2303315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citgo-asphalt-refining-company-v-the-paper-allied-industrial-chemical-ca3-2004.