Nf&m Corporation v. United Steelworkers of Amer.

390 F. Supp. 266
CourtDistrict Court, W.D. Pennsylvania
DecidedFebruary 28, 1975
DocketCiv. A. 74-784
StatusPublished
Cited by3 cases

This text of 390 F. Supp. 266 (Nf&m Corporation v. United Steelworkers of Amer.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nf&m Corporation v. United Steelworkers of Amer., 390 F. Supp. 266 (W.D. Pa. 1975).

Opinion

MEMORANDUM AND ORDER

MARSH, Chief Judge.

This is an action to set aside and vacate an arbitrator’s award which, plaintiff employer contends, exceeded the arbitrator’s authority under the collective *268 bargaining agreement signed by the parties. The matter is now before us on a motion for summary judgment filed by the defendant unions.

On March 6, 1974, the plaintiff suspended employee Mathew Catanese for gross neglect of working equipment, and on March 7, 1974, when Catanese appeared at the plant to question his suspension, he was discharged for insubordination. Defendant Local No. 8148, together with Catanese, initiated the first step of the labor contract’s three-step grievance procedure on March 8, 1974, protesting both of these actions by the plaintiff. 1 Later that day, the defendant local union filed a written grievance (dated March 7, 1974) which read: “Mathew Catanese was suspended unjustly according to Article VII.” Article VII is the contract provision relating to discharge which allows the employer to discharge an employee for “just cause.” Plaintiff admits that this written grievance complied with all of the “second step” requirements set out in the contract, but argues that this was a written grievance only as to Catanese’s suspension and that no written grievance was ever filed with respect to the discharge. The contract states that a second step written grievance is to be submitted within three working days of the conclusion of the first step procedure (Art. VI, para. 2). The contract further provides that the failure of any party to comply with the time limitations shall result in the automatic settlement of the grievance against the position of that party (Art. VI, para. 3). 2

When no agreement was reached at a March 22nd meeting between the parties, the defendant referred three issues to arbitration: (1) validity of the suspension; (2) timeliness of the discharge grievance; and (3) validity of the discharge. Plaintiff agreed to permit issues (2) and (3) to be submitted to the arbitrator even though it contended that the discharge grievance had been settled against the defendants by reason of Article VI, paragraph 3.

On July 25, 1974, Arbitrator Harry Pollock held an evidentiary hearing at which both parties were given an opportunity to present testimony and to submit briefs. Subsequently, on August 7, 1974, the arbitrator issued the following award:

“1. The suspension was not for ‘just cause’.
2. The grievance was timely.
3. The discharge was not for ‘just cause’.
4. The grievant shall be reinstated with full seniority and shall be paid for all lost time, less any earnings in the interim and any unemployment compensation received.”

On August 15, 1974, plaintiff filed the present action to have this court set aside and vacate the arbitrator’s award.

*269 The plaintiff argues that such an award is beyond the scope of the arbitrator’s authority under the contract. The employer admits that the arbitrator has clear authority to decide such issues in a grievance dispute, but claims that the arbitrator here exceeded his authority by deciding the issue of procedural arbitrability (i. e., the timeliness of the discharge grievance) contrary to the language of the contract. Defendants argue that the arbitrator acted properly within his authority under the agreement and request summary judgment be granted in their favor.

The question of what role this court should take in reviewing the award of a labor arbitrator was answered by the United States Supreme Court in United Steelworkers of America v. Enterprise Wheel and Car Corp., 363 U. S. 593, 80 S.Ct. 1358, 4 L.Ed.2d 1424 (1960). The proper approach, said the Court, is for the courts to refuse to review the merits of an arbitrator’s award since the federal policy favoring the settlement of labor disputes through arbitration would be undermined if the courts had the final say on the merits of •the award. The arbitrator’s award is legitimate so long as it draws its essence from the collective bargaining agreement. 363 U.S. at 596-597, 80 S.Ct. 1358, 4 L.Ed.2d 1424. This standard was examined and applied in Ludwig Honold Mfg. Co. v. Fletcher, 405 F.2d 1123, 1128 (3rd Cir. 1969) where the Court of Appeals concluded:

“ . . . only where there is a manifest disregard of the agreement, totally unsupported by principles of contract construction and the law of the shop, may a reviewing court disturb the award.”

The Supreme Court has recognized that in labor disputes it is often very difficult to break down the problem into “procedural” and “substantive” aspects. In John Wiley & Sons v. Livingston, 376 U.S. 543, 557, 84 S.Ct. 909, 918, 11 L. Ed.2d 898 (1964), the court ruled that procedural questions growing out of a dispute and bearing on its disposition are to be determined by the arbitrator because:

“Doubt whether grievance procedures or some part of them apply to a particular dispute, whether such procedures have been followed or excused, or whether the unexcused failure to follow them avoids the duty to arbitrate cannot ordinarily be answered without consideration of the merits of the dispute which is presented for arbitration. ... It would be a curious rule which required that intertwined issues of ‘substance’ and ‘procedure’ growing out of a single dispute and'raising the same questions on the same facts had to be carved up between two different forums, one deciding after the other.”

Plaintiff accepts the standard of limited judicial review as set out in Enterprise, supra, and also accepts the proposition that, according to Wiley, supra, the issue of timeliness of the discharge grievance was a proper subject for arbitration. Plaintiff’s primary contention is that the arbitrator’s decision on the timeliness issue violates the “essence of the agreement” test, thus making judicial interference proper in this case. Plaintiff supports this argument by references to the contract language in Article VI, paragraph 3, and by references to the language in the arbitrator’s opinion. Specifically, plaintiff argues that there is no explicit statement in the opinion to indicate that the arbitrator found that the discharge grievance complied with the time limits in Article VI, paragraph 2, and thus, the grievance was necessarily decided against the defendant by reason of Article VI, paragraph 3.

Even if this court accepts plaintiff’s argument that the arbitrator’s opinion is ambiguous as to how the arbitrator reached his decision on the timeliness issue, that alone is not sufficient to move this court to vacate the *270 award. As the Supreme Court said' in Enterprise, supra:

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Bluebook (online)
390 F. Supp. 266, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nfm-corporation-v-united-steelworkers-of-amer-pawd-1975.