In the Matter of the Arbitration between Fluor Marine Propulsion, LLC v. Professional Security Employees Association, Local No. 1

CourtDistrict Court, N.D. New York
DecidedOctober 22, 2020
Docket1:19-cv-01605
StatusUnknown

This text of In the Matter of the Arbitration between Fluor Marine Propulsion, LLC v. Professional Security Employees Association, Local No. 1 (In the Matter of the Arbitration between Fluor Marine Propulsion, LLC v. Professional Security Employees Association, Local No. 1) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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In the Matter of the Arbitration between Fluor Marine Propulsion, LLC v. Professional Security Employees Association, Local No. 1, (N.D.N.Y. 2020).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK ___________________________________________

IN THE MATTER OF THE ARBITRATION BETWEEN FLUOR MARINE PROPULSION, LLC,

Petitioner, 1:19-CV-1605 (GTS) v. 1:19-CV-1612 (GTS)

PROFESSIONAL SECURITY EMPLOYEES ASSOCIATION, LOCAL NO. 1,

Respondent. ___________________________________________

APPEARANCES: OF COUNSEL:

JACKSON LEWIS, P.C. VINCENT E. POLSINELLI, ESQ. Counsel for Petitioner 677 Broadway, 9th Floor Albany, NY 12207

ZAZZALI FAGELLA NOWAK KLEIBAUM & ROBERT FAGELLA, ESQ. FRIEDMAN Counsel for Respondent 570 Broad Street, Suite 1402 Newark, NJ 07102

GLENN T. SUDDABY, Chief United States District Judge

DECISION and ORDER Currently before the Court, in the two above-captioned related actions filed by Fluor Marine Propulsion, LLC (“Petitioner”) against Professional Security Employees Association, Local No. 1 (“Respondent”), are Petitioner’s motions to vacate, modify, or correct the Arbitration Awards rendered on September 25, 2019, by arbitrator Roger E. Maher (“Arbitrator”) regarding the terminations of Michael Nesbitt and James Mannetti (“grievants”). (Dkt. No. 1 of Case No. 19-CV-1605; Dkt. No. 1 of Case No. 19-CV-1612.) For the reasons set forth below, Petitioner’s motions are denied, and the Arbitration Awards are confirmed. I. RELEVANT BACKGROUND A. Relevant Factual History

Petitioners filed both of these related actions on December 23, 2019. (Dkt. No. 1 of Case No. 19-CV-1605; Dkt. No. 1 of Case No. 19-CV-1615.) After obtaining permission from the Court to file memoranda of law and supporting papers, Petitioner filed its memorandum of law in the earlier-filed action on February 7, 2020. (Dkt. No. 5 of Case No. 19-CV-1605.) On February 13, 2020, Respondent filed its Answer to the petition along with counterclaims in the earlier-filed action. (Dkt. No. 7 of Case No. 19-CV-1605.) On March 3, 2020, Petitioner filed its Answer to Respondent’s counterclaims in the earlier-filed action. (Dkt. No. 9 of Case No. 19- CV-1605.) On March 6, 2020, Respondent filed its response in opposition to Petitioner’s motion in both actions. (Dkt. No. 10 of Case No. 19-CV-1605; Dkt. No. 6 of Case. No. 19-CV-1615.) On March 16, 2020, Petitioner filed its reply memorandum of law in the earlier-filed action.

(Dkt. No. 12 of Case No. 19-CV-1605.) B. Arbitration Awards 1. Award Pertaining to Michael Nesbitt (Case No. 19-CV-1605) In this arbitration, the parties stipulated to the following two issues for decision: (1) whether the Company discharged the grievant for just cause, and, if not, what the remedy should be; and (2) whether Respondent discriminated against Grievant Nesbitt in violation of Sections 8(a)(1) and 8(a)(3) of the National Labor Relations Act (“NRLA”) or the collective bargaining agreement (“CBA”) by terminating his employment, and, if so, what the remedy should be.

2 (Dkt. No. 1, Attach. 1, at 3 of Case No. 19-CV-1605.) The Arbitrator made the following two findings: (1) the Company had not established just cause for Grievant Nesbitt’s termination, but it had established just cause for a three-day disciplinary suspension; and (2) the union failed to establish that Grievant Nesbitt’s protected activity was a motivating factor in his termination or

that Respondent discriminated against him in any way in violation of the NLRA or the CBA by terminating his employment. (Id. at 13, 23.) Based on this finding, the Arbitrator ordered that Grievant Nesbitt “will be reinstated to his former position with full back pay and benefits, and with the full retention of his seniority, minus interim earnings and his pay for the three-day suspension.” (Id.) The Arbitrator then stated, As further remedy, I remind this Employer that it is party to an Agreement providing for ‘final and binding arbitration’ and that any use of its Human Reliability Program (“HRP”) to contravene this award’s reinstatement order would be in defiance of this award and that Agreement, and would caution further that it may very well also be its own independent 8(a)(2) and 8(a)(5) violation of the NLRA, as well as its own independent violation of the parties’ Agreement. Because the risk may be real that the Company may use the HRP to avoid, evade, or otherwise delay an implementation of this decision, this Award is accompanied by a requirement that interest is added to the amount due and at the federal judgment rate.

(Id. at 13-14, 23-24.) In providing this remedy, the Arbitrator specifically rejected Respondent’s contention that “its HRP is outside the scope of any arbitral award.” (Id. at 22.) 2. Award Pertaining to James Mannetti (Case No. 19-CV-1612) The stipulated issues and relevant findings in the second Award are essentially the same as in the first Award, with the exception that, in the second Award, the Arbitrator found that the Company had established sufficient just cause for imposing a one-month disciplinary suspension 3 due to the nature of Grievant Mannetti’s specific conduct. (Dkt. No. 1, Attach. 1 of Case No. 19- CV-1612.) For purposes of simplicity (which focuses on the Arbitrator’s findings related to the HRP), the Court will refer to both of the Arbitration Awards as “the Award,” given that the

HRP-related findings challenged by both motions are identical. C. Parties’ Arguments on Petitioner’s Motions 1. Petitioner’s Memorandum of Law Generally, in its memorandum of law, Petitioner makes two arguments. (Dkt. No. 5 of Case No. 19-CV-1605 [Pet.’s Mem. of Law].) First, Petitioner argues that the Arbitrator exceeded his authority by rendering a finding on Petitioner’s obligations under the HRP because the HRP is not subject to the CBA, and the CBA does not allow the Arbitrator to add to, detract from, or alter any provision of the CBA or to impose any duty on a party to take (or refrain from taking) any action that is in violation of existing or future law, rule, regulation, or directive issued by a government department or agency. (Id. at 18-19.) Petitioner further argues that the

HRP is not part of the CBA because it is a non-negotiable government policy that is not subject to collective bargaining or arbitration, and thus the part of the Award that requires Petitioner to refrain from taking any action against the grievants through HRP proceedings both alters the CBA and adds a restriction into the CBA that does not exist. (Id. at 19-21.) Second, Petitioner argues that, because the Award related to the HRP was on a matter not submitted by the parties, the Arbitrator did not have the authority to issue that part of the Award. (Id. at 21-23.) More specifically, Petitioner argues that the only two issues that were submitted to the Arbitrator were (1) whether the grievants were discharged for just cause (and if so, what

4 the remedy should be), and (2) whether Petitioner discriminated against the grievants in violation of the NLRA or the CBA (and if so, what the remedy should be). (Id.) Petitioner further argues that the parties had no intention to submit any issue related to the HRP to the Arbitrator, and that, because the United States Department of Energy (“DOE”) has exclusive jurisdiction over all

security matters, neither the parties nor the Arbitrator have any authority to usurp the DOE’s power to make decisions on those security matters. (Id.) 2. Respondent’s Opposition Memoranda of Law Generally, in its opposition memorandum of law, Respondents argue that the Award should be affirmed in its entirety because it involved a reasonable interpretation of the CBA and an appropriate extension of the reinstatement order. (Dkt. No. 10 of Case No. 19-CV-1605 [Respondent’s Opp’n Mem.

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In the Matter of the Arbitration between Fluor Marine Propulsion, LLC v. Professional Security Employees Association, Local No. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-the-matter-of-the-arbitration-between-fluor-marine-propulsion-llc-v-nynd-2020.