HMC Management Corp. v. Carpenters District Council of New Orleans & Vicinity

759 F.2d 489, 119 L.R.R.M. (BNA) 2296
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 6, 1985
DocketNo. 84-3184
StatusPublished
Cited by1 cases

This text of 759 F.2d 489 (HMC Management Corp. v. Carpenters District Council of New Orleans & Vicinity) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HMC Management Corp. v. Carpenters District Council of New Orleans & Vicinity, 759 F.2d 489, 119 L.R.R.M. (BNA) 2296 (5th Cir. 1985).

Opinion

PER CURIAM:

Treating the suggestion for rehearing en banc as a petition for panel rehearing, the petition for panel rehearing is DENIED. The judges in regular active service of this Court having been polled at the request of one of said judges and a majority of said judges not having voted in favor of it (Federal Rules of Appellate Procedure and Local Rule 35), the suggestion for Rehearing En Banc is DENIED.

Before CLARK, Chief Judge, GEE, RUBIN, REAVLEY, POLITZ, RANDALL, TATE, JOHNSON, WILLIAMS, GAR-WOOD, JOLLY, HIGGINBOTHAM, DAVIS and HILL, Circuit Judges.

JERRE S. WILLIAMS, Circuit Judge, with whom ALVIN B. RUBIN, RANDALL, TATE, JOHNSON, E. GRADY JOLLY and W. EUGENE DAVIS, join, dissenting:

It is most unfortunate for the important role that arbitration plays in the settlement of contract disputes in labor relations that the Court did not agree to an en banc reconsideration of the holding by the panel in this case. 750 F.2d 1302 (5th Cir.1985). I must dissent from the order of the Court.

It is my view that the skilled and highly respected labor arbitrator in this case made clear in his award that he was basing his decision on one of the most elementary of established principles in the administration of the “just cause” standard for discipline, the standard most common in labor contracts. It is universally held by arbitrators and upheld by the courts that the just cause standard requires that discipline be assessed and carried out without discrimi[490]*490nation. The contract clause prohibits an employer assessing different disciplines for the same offense to two employees in exactly the same situation. Yet, that is exactly what happened in this case.

There is virtual universal acceptance that discriminatory discipline violates “just cause” disciplinary standards in contracts even though the word discrimination never appears in that context. As it is stated in one of the basic works, Elkouri and Elkouri, HOW ARBITRATION WORKS, p. 643:

It is generally accepted that enforcement of rules and assessment of discipline must be exercised in a consistent manner; all employees who engage in the same type of misconduct must be treated essentially the same unless a reasonable basis exists for variations in the assessment of punishment (such as different degrees of fault or mitigating or aggravating circumstances affecting some but not all of the employees).

See also 1 Werne, ADMINISTRATION OF THE LABOR CONTRACT, § 20.61: “A generally accepted precept is that the same or equivalent penalties should be meted out to all who are found guilty of the same offenses.”

The panel opinion held, however, that the application of this principle was not adequately dealt with in the arbitration award. The critical operative words of the arbitration award are found in this single paragraph:

Notwithstanding the contentions of the Employer to the contrary, the Arbitrator cannot rightfully find that the discharge of the Grievant and Mr. Dale and the subsequent rehiring of only Mr. Dale under the circumstances here presented was proper. The record indicates that the Grievant and Mr. Dale were both working under the same disciplinary probation and written warning at the time of their discharge. Both employees were told that any incident which occurred during the probationary period would result in immediate dismissal. It is further shown by the record that both employees were performing the same tasks in the same location on July 1 and July 2, 1980, which resulted in the decision to dismiss them. Presented with the record in this posture, the Arbitrator is constrained to find that while there may have been adequate grounds to discharge both employees, the Employer acted improperly when it decided to rehire Mr. Dale but not the Grievant. Particularly does this appear to be so in light of the failure of the Employer to afford the Grievant the opportunity to attend meetings concerning the grievance while Mr. Dale was permitted such opportunity. Such disparate treatment, notwithstanding the contention of the Employer to the contrary, is not excused, in the judgment of the Arbitrator, by the Grievant and Mr. Dale having received exactly the same punishment for their conduct.

The panel held that this award does not flow from the “essence of the collective bargaining agreement” because the arbitrator did not say in so many words that the discriminatory treatment between the two disciplined employees was part of the just cause requirement. Yet, it is clear from the arbitrator’s award that while he found possible justification for discharge of both employees and while it was conceded that both employees were in exactly the same situation, he concluded that the reinstatement of only one of the two employees did result in “disparate treatment”. Yet, the opinion of the Court requires that the case be sent back to the arbitrator so that he can say this with court ordered unnecessary precision. Such a remand is a useless act when it is clear that the arbitrator was applying well established principles in interpreting and applying the labor agreement to this dispute. In making such a semantic distinction, the panel is moving in the direction of requiring unnecessary “boilerplate” language by arbitrators to state that their decisions are derived from the essence of the collective bargaining agreements.

The decision of this Court which stands because of the denial of rehearing en banc [491]*491sets up a rigidity and breadth in the review of arbitration awards which goes far beyond anything sanctioned by the developed law of the United States Supreme Court under the famous trilogy United Steelworkers v. American Mfg. Co., 363 U.S. 564, 80 S.Ct. 1343, 4 L.Ed.2d 1403 (1960); United Steelworkers v. Warrior and Gulf Navigation Co., 363 U.S. 574, 80 S.Ct. 1347, 4 L.Ed.2d 1409 (1960); United Steelworkers v. Enterprise Wheel & Car Corp., 363 U.S. 593, 80 S.Ct. 1358, 4 L.Ed.2d 1424 (1960).

It also moves significantly away from the law of this Circuit. Since the Supreme Court’s trilogy, this Court has decided some 32 published opinions considering directly or indirectly whether an arbitration award drew its essence from the collective bargaining agreement. In addition, of course, there have been a substantial number of unpublished opinions. Of the published opinions there have only been three cases in addition to this case where an arbitration award has been set aside by this Court as failing to be based upon the essence of the agreement. In one of those cases, W.R. Grace & Co. v. Local Union 759, Int’l Union of Rubber, Cork, Linoleum, and Plastic Workers of America, 652 F.2d 1248 (5th Cir.1981), this Court upheld one arbitrator’s award but set aside another award because the latter award did not even purport to follow the contract. It was based upon “fairness and equity” with no reference at all to any contract provisions.

In Amalgamated Meat Cutters & Butcher Workmen of North America, AFL-CIO, Local Union 540 v.

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759 F.2d 489, 119 L.R.R.M. (BNA) 2296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hmc-management-corp-v-carpenters-district-council-of-new-orleans-ca5-1985.