MGM Grand Detroit, LLC v. International Union, United Automobile, Aerospace & Agricultural Implement Workers

495 F. App'x 646
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 20, 2012
Docket11-1915
StatusUnpublished
Cited by4 cases

This text of 495 F. App'x 646 (MGM Grand Detroit, LLC v. International Union, United Automobile, Aerospace & Agricultural Implement Workers) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MGM Grand Detroit, LLC v. International Union, United Automobile, Aerospace & Agricultural Implement Workers, 495 F. App'x 646 (6th Cir. 2012).

Opinion

ROGERS, Circuit Judge.

In this labor dispute between a casino operator and the union representing an employee discharged by the casino, an arbitrator ordered reinstatement because the employer had not given the employee sufficient procedural process with respect to some of the charges against him. The arbitrator derived the requirement for some process from the collective bargaining agreement’s requirement of “just cause.” Although perhaps a linguistic stretch, the required process was at least an arguable interpretation of the collective bargaining agreement, and under our precedents that was sufficient to uphold a labor arbitration award. The district court therefore should not have vacated the award.

Terry Wright was employed by MGM Grand as a craps dealer from 1999 until his termination on October 14, 2008. Wright was a member of the UAW (International Union, United Automobile, Aerospace and Agricultural Implement Workers of America) and his employment was governed by a collective bargaining agreement. The agreement provided that:

No regular Employee, after having completed the probationary period, shall be disciplined and/or discharged except for just cause. Disciplinary actions will be progressive and may include but are not limited to: written counselings, suspension and discharge. The parties agree that progressive discipline normally requires, prior to suspension or discharge, that an Employee be given an opportunity to correct the deficiency through a written counseling notice, but that within the principle of progressive discipline, certain conduct may warrant immediate suspension or discharge when appropriate. This type of conduct includes, but is not limited to, that which is set forth in MGM Grand Detroit Casino Policy #417. A regular Employee may contest disciplinary action imposed upon him or her through the Grievance and Arbitration procedure set forth in Article 28.

R.l-2 at 34-35.

Policy #417 provides that insubordination and hustling — ie., soliciting or pressuring a guest for a tip — are “just cause” for immediate separation. It further provides that a violation of on-the-job rules, including the rules, regulations and procedures of each department, inadequate job performance, and discourteous or disrespectful behavior toward management are *648 “just cause” and will result in disciplinary action up to and including separation.

Wright was disciplined several times between September 2007 and the date of his termination. He was placed on unpaid leave for rude and discourteous conduct toward supervisors in September 2007 and received an unpaid suspension in June 2008 for violating MGM’s chain-of-command and being discourteous to a guest and a supervisor. In July 2008, Wright was suspended for three days for whistling while dealing at the table, for using profanity in front of guests, and for various other policy violations. At a July 18, 2008 meeting, Wright was told that he would be terminated if his work performance continued to be problematic.

On October 6, 2008, Assistant Shift Manager Lynn Tang instructed another MGM supervisor to tell Wright not to clap and cheer at the craps table because it was unprofessional and might discourage players from betting. Wright argued with the supervisor about this instruction and later approached Tang and questioned the directive not to cheer. The conversation became heated and Wright took a step toward Tang while pointing his finger at her, causing her to take a step backward. At the end of the two-and-one-half minute conversation, Wright walked away while repeatedly shaking his finger at Tang. Tang perceived Wright’s actions during the conversation as threatening. Later that afternoon, Wright again approached Tang, this time to apologize. Tang saw Wright in a hallway later that afternoon and went into the women’s bathroom to avoid him.

Wright was called to the casino administration office and suspended pending investigation of the incident with Tang. Wright was given a counseling notice informing him that he was being suspended for “ ‘rude and discourteous behavior, job performance and following game procedures.’ ” R. 1-5 at 26. Wright attached a brief statement about the interaction with Tang to the notice and submitted a more complete statement the following day. Wright’s October 7, 2008, statement disputed allegations that he violated gaming procedures by cheering, cheque slamming, or improperly taking bets. In that statement, Wright also complained that he was not given sufficient notice of the reasons he was suspended to allow him to respond adequately.

MGM conducted an investigation of the incident with Tang during which it reviewed videotape from October 6. Review of the videotape revealed that Wright had committed multiple game procedure violations, which were catalogued and attached to his separation notice. Wright had a meeting with MGM management about his suspension on October 9, but Wright testified that no one discussed cheque slamming or any other game procedure violations at the meeting.

MGM terminated Wright on October 14, 2008. Thereafter, the union filed six grievances on Wright’s behalf. After MGM denied the grievances, the case was submitted to arbitration. During the arbitration proceedings, the MGM Vice President who decided to terminate Wright testified that the incident with Tang was “the last straw” but that the termination decision was based upon “a combination of everything.” Id. at 55. The arbitrator denied five of Wright’s six grievances, but concluded that Wright was terminated in violation of the “just cause” provision of the agreement because MGM failed to give him notice of, and an opportunity to respond to, the game procedure violations revealed in the October 6 videotape. The arbitrator reinstated Wright with full seniority, but without back pay, gratuities, or benefits.

*649 MGM filed an action in the district court seeking to vacate the arbitrator’s award to the extent that it reinstated Wright. The district court granted MGM’s motion for summary judgment and vacated the arbitrator’s award, holding that the arbitrator’s interpretation conflicted with the express terms of the agreement. The union timely appealed the district court’s order vacating the arbitrator’s award.

The arbitrator’s award should not have been vacated because the arbitrator arguably construed or applied the collective bargaining agreement when he held that MGM did not have “just cause” to discharge Wright. “Although we review a district court’s summary disposition de novo, in the context of arbitration, courts play only a limited role when asked to review the decision of an arbitrator.” Totes Isotoner Corp. v. Int’l Chem. Workers Union Council/UFCW Local 664C, 532 F.3d 405, 411 (6th Cir.2008) (internal quotation marks omitted). To vacate a labor arbitration award where the arbitrator was not acting outside his authority, and where there was no fraud, conflict of interest, or dishonesty, we must find that, in resolving any legal or factual disputes in the case, the arbitrator was not “arguably construing or applying the contract.” Mich. Family Res., Inc. v. Serv. Emps. Int’l Union Local 517M,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
495 F. App'x 646, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mgm-grand-detroit-llc-v-international-union-united-automobile-aerospace-ca6-2012.