Kennecott Utah Copper Corp. v. United Steelworkers of America

4 F. Supp. 2d 1044, 1998 WL 240245
District Court, D. Utah·Decided May 11, 1998·No. 2:97 CV 640 K·Published

Opinion

ORDER

KIMBALL, District Judge.

Plaintiff Kennecott Utah Copper Corporation (“Kennecott”) brings suit to vacate an award issued by Arbitrator Scott Daniels on August 6, 1997 (the “Award”). The Award interprets and' applies a Collective Bargaining Agreement (“CBA”) and a Memorandum of Agreement (“MOA”) that supplements the CBA by adopting and setting forth Kenne-cott’s policy regarding the use of drugs and alcohol (the “Policy”). United Steelworkers of America, AFL — CIO, two union subunits, and various union representatives are named as defendants (collectively, the “Union”). The Union countersues to enforce the award. Both sides now move for summary judgment.

BACKGROUND

This dispute arises in the aftermath of an accident in which a Kennecott employee (the “Employee”) lost control of a loaded, ten-wheel dump truck that went off a road, through an earthen berm, and rolled over. The accident occurred on Kennecott’s premises, but near a public road. The Employee’s supervisors concluded that the most likely cause of the accident was an equipment failure rendering the steering inoperable, but that the Employee could have applied the brakes earlier and stopped the vehicle prior to the rollover.

Pursuant to the Policy, the Employee was tested for drugs. The results were positive and confirmed the presence of cannabinoids at a level above the maximum allowed under the Policy. Pursuant to the CBA, a hearing was held to determine what disciplinary action was appropriate. At the hearing, the Employee stated that the Employee had taken a couple of puffs of marijuana five to six weeks earlier — an account that was inconsistent with the test results. The Employee later admitted that the Employee had smoked marijuana two days prior to the acci *1046 dent. Because the test results exceeded the allowable limit set forth in the Policy, 1 Ken-necott terminated the Employee.

Again pursuant to the CBA, the termination was grieved and proceeded to arbitration, where Arbitrator Daniels concluded that Kennecott did not have just cause to terminate and reinstated the Employee to the Employee’s former position, but did not award back pay because the Employee initially misrepresented facts concerning the Employee’s drug use.

Arbitrator Daniels interpreted the CBA and the MOA to require Kennecott to produce some evidence of on-the-job impairment as a prerequisite to- imposing discipline “for a positive test result on this particular test.” The particular test in reference detects the presence of marijuana for a week to ten days after consumption. The testimony in arbitration was that marijuana is active in the body for between three and eight hours.

The CBA provides that no employee will be terminated without “just cause,” but the term is not defined. In relevant part, the Policy provides: (i) that “[wjorking while under the influence of drugs or alcohol or while not being free from the presence of drugs” is a violation of the Policy, (ii) that any positive drug test is a violation of the Policy, (iii) that compliance with the Policy is a condition of employment, and (iv) that the company “intends to take disciplinary action; up to and including termination, against any employee who violates this Policy.”

STANDARD OF REVIEW

The judicial review of an arbitration award is “among the narrowest known to the law.” Litvak Packing Co. v. U.F.C.W. Local Union No. 7, 886 F.2d 275, 276 (10th Cir.1989). The Supreme Court has held that a court must enforce an arbitrator’s award as long as the award draws its essence from the collective bargaining agreement, regardless of the court’s agreement or disagreement with the arbitrator’s interpretation or conclusion. United Steelworkers v. Enterprise Wheel & Car Corp., 363 U.S. 593, 597, 80 S.Ct. 1358, 1361, 4 L.Ed.2d 1424 (1960).

The parties “have agreed to be bound by the arbitrator’s factfinding and contract interpretation whether his findings and conclusions are correct or not.” United Paperworkers Int'l Union v. Misco, 484 U.S. 29, 108 S.Ct. 364, 98 L.Ed.2d 286 (1987). As long as the arbitrator is “even arguably construing or applying the contract,” the fact that a court is convinced the arbitrator “committed serious error does not suffice to overturn his decision.” Misco, 484 U.S. at 38, 108 S.Ct. at 371 (emphasis added).

DISCUSSION

Courts will set aside an, arbitral award as failing to draw its essence from the collective bargaining agreement in two circumstances that Kennecott argues are present here. The first occurs when an “arbitrator ignores the plain language of the contract.” Misco, 484 U.S. at 38, 108 S.Ct. at 371. Any question regarding the interpretation of ambiguous or conflicting provisions, however, is exclusively within the arbitrator’s domain.

Kennecott argues that it had a right to terminate the Employee upon confirmation of a positive test result pursuant to the plain language of the Policy and that the effect of the Award is to impose an additional prerequisite to termination, namely, some evidence of on-the-job impairment. Arbitrator Daniels did not interpret the Policy to abrogate the requirement in the CBA that all discipline be for just cause, nob does the Policy contain any' provision stating that a violation of the Policy either automatically constitutes just cause or obviates the contractual requirement of just cause.

Another court has considered the effect of language that is very similar to the language in the Policy concerning Kennecott’s intention to “to take disciplinary action, up to and including termination” for violation of a drug policy. The Court of Appeals for the First Circuit enforced an award in which language permitting an employer to “discharge or oth *1047 erwise discipline” an employee for the commission of a listed offense was interpreted by an arbitrator as furnishing an employer “with a range of disciplinary options” that were “in turn subject to an independent application of the just cause barometer.” Exxon Corp. v. Esso Workers’ Union, Inc., 118 F.3d 841, 845 (1st Cir.1997).

In doing so, the First Circuit explained, “judges have no roving writ to construe the contract language in the way they think best. Rather, a court’s proper province is to determine whether the arbitrator’s reading is plausible, albeit.not the reading the court might choose.” Id. Given the persuasiveness of the First Circuit’s opinion and the concern expressed by Kennecott in the Policy about the “effects of alcohol and drugs,” this Court cannot conclude that Arbitrator Daniels ignored the plain language of the contract or otherwise exceeded the scope of his authority. ■

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Kennecott Utah Copper Corp. v. United Steelworkers of America, 4 F. Supp. 2d 1044, 1998 WL 240245 (D. Utah 1998).

4 F. Supp. 2d 1044 (Kennecott Utah Copper Corp. v. United Steelworkers of America) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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