S.D. Warren Company, a Division of Scott Paper Company v. United Paperworkers' International Union, Afl-Cio, Local 1069

815 F.2d 178, 125 L.R.R.M. (BNA) 2086, 1987 U.S. App. LEXIS 4029
CourtCourt of Appeals for the First Circuit
DecidedMarch 31, 1987
Docket86-1405
StatusPublished
Cited by30 cases

This text of 815 F.2d 178 (S.D. Warren Company, a Division of Scott Paper Company v. United Paperworkers' International Union, Afl-Cio, Local 1069) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
S.D. Warren Company, a Division of Scott Paper Company v. United Paperworkers' International Union, Afl-Cio, Local 1069, 815 F.2d 178, 125 L.R.R.M. (BNA) 2086, 1987 U.S. App. LEXIS 4029 (1st Cir. 1987).

Opinions

PIERAS, District Judge.

This appeal is from a judgment of the United States District Court for the District of Maine, enforcing an arbitration [180]*180award under the jurisdiction provided by section 301 of the Labor-Management Relations Act of 1947, 29 U.S.C. section 185 (1982). The district court upheld the arbitrator’s decision that the collective bargaining agreement was ambiguous as to the kind of right given the employer to discharge employees involved with drugs, that the contract allowed the arbitrator to review the degree of punishment to be given the employee, and that the arbitrator’s award did not violate public policy. S.D. Warren Co. v. United Paperworkers International, 632 F.Supp. 463 (D.Me.1986).

These erroneous conclusions, which are the basis of both the arbitrator’s award and the judgment below, require that the judgment be reversed and the award vacated.

I.

The United Paperworkers’ International Union, AFL-CIO, Local 1069, in representation of employees of S.D. Warren Company, entered into a collective bargaining agreement with S.D. Warren. The pertinent portions of the collective bargaining agreement for the purposes of our review follow. The Management Rights Clause affirmed that

[t]he Company reserves the sole right to manage the business of the Company ... and to direct the working force. This right includes but is not limited to ... the right to ... demote, transfer, discipline, suspend or discharge employees for proper cause or to relieve them from duties because of lack of work or for other legitimate reasons.

The contract provided for levels of conciliation proceedings culminating in arbitration. The scope of the arbitrator’s authority was circumscribed as follows:

the matter may be referred by either party to an arbitrator for decision, but it is agreed that the matter thus referred shall be concerned solely with the interpretation on and/or application of the collective bargaining agreement____ The decision of the arbitrator shall be final and binding on the parties.

The parties to the contract further defined the role of the arbitrator by agreeing that “the arbitrator shall have no power to render a decision which in any way adds to, subtracts from, or modifies any provision of the agreement.”

As an appendix, the contract also contained Mill Rules. Rule 7 read as follows:

7. Causes for Discharge. In any organization, certain rules of conduct must be observed by the members for the good of all. Violation of prescribed rules are cause for disciplinary action of varying degrees of severity. Violations of the following rules are considered causes for discharge: (a) Possession, use or sale on Mill property of intoxicants, marijuana, narcotics or other drugs. The possession or use of a specific narcotic or drug properly prescribed by a licensed physician is the only exception to this rule.

The seriousness of the drug offenses proscribed in the contract was brought to the attention of the employees many times, including in a union newsletter: “Once again it is necessary to remind everyone that the use of illegal drugs and/or alcohol is, a very serious offense. The company has notified the Union that anyone caught possessing and/or using drugs or alcohol on company property will be immediately terminated.”

The Maine State Police Drug Unit investigated the drug problem at employer’s plant. An undercover narcotics agent was employed at the mill. As a result of the investigation, twelve employees, including the grievants, were shown to have violated Mill Rule 7(a) and consequently were discharged by the employer.

The Union took the grievance to arbitration. Arbitrator Suzanne Gwiazda found that the grievants had violated Mill Rule 7(a). The arbitrator found extenuating circumstances in each case and decided that suspension, not discharge, was the appropriate sanction. Although we believe that the nature of extenuating circumstances are immaterial for the purpose of deciding this case, we will nevertheless refer to them to demonstrate that such personal concern by the arbitrator violated the clear language of the Management Rights [181]*181Clause. The arbitrator took into consideration that grievant Linda Willoughby was the only female in her department and under pressure to do her work faster, was advised by employer’s physician to take an extended leave, and was diagnosed as suffering from anorexia nervosa. Willoughby gave the investigator only a small amount of marijuana. Kimberly Denis was also the only woman in her area and dependent on the investigator for a time. She sold the agent twenty dollars worth of marijuana. Grievant Debra Graham was approached by the agent six or seven times about drugs and eventually sold him four grams of marijuana for thirty dollars.

The arbitrator’s award was based on the undisputed facts recounted here. The arbitrator’s pivotal conclusion, however, was that Mill Rule 7(a) is ambiguous in that it does not use the obligatory “must” when delineating the employer’s right to terminate for violation of the rule. Although the permissive “may” does not appear in the contract, the word did appear in this context in the company’s safety policy handbook. The arbitrator found this noteworthy and concluded that she could assess the kind of infringement of the rule and provide a punishment less than the sole punishment allowed by the collective bargaining agreement. The arbitrator also relied on the Management Rights Clause’s identification of “proper cause” required for discharge while the heading of Rule 7 was simply “Causes for Discharge.” This discrepancy, in the arbitrator’s eyes, was sufficient to place the entire matter of discipline within her interpretative domain.

The district court affirmed the award, stating that it would not construe “cause” as equivalent to “proper cause” and declined to disturb the arbitrator’s decision. S.D. Warren, 632 F.Supp. at 468. Further, the court stated that it could not be said that the arbitrator’s reasoning was “so palpably faulty that no judge, or group of judges, could ever conceivably have made such a ruling.” Bettencourt v. Boston Edison Company, 560 F.2d 1045, 1050 (1st Cir.1977). Consequently, it dismissed the employer’s complaint. The court also found that the award did not violate public policy. S.D. Warren, 632 F.Supp. at 468.

We disagree that Mill Rule 7(a) was so ambiguous that it took away from the employer the exclusive right to determine the punishment to be imposed for violation of that clause, and that the scope of the arbitration clause invested the arbitrator with the ultimate decision pertaining to punishment. We also disagree with the arbitrator and court below that the award does not violate public policy. Accordingly, we reverse the district court’s judgment and vacate the arbitration award.

II. THE ARBITRATOR’S AUTHORITY TO INTERPRET THE CONTRACT

The fact that cases, for quite practical reasons, have allowed arbitrators great latitude in interpreting collective bargaining agreements does not detract from the fact that all arbitration awards must draw their essence from the collective bargaining agreement. United Steelworkers v. Enterprise Wheel & Car Corp.,

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

Related

FREIGHTLINER, LLC v. Teamsters Local 305
336 F. Supp. 2d 1118 (D. Oregon, 2004)
Unión General De Trabajadores v. Triple-S, Inc.
143 F. Supp. 2d 178 (D. Puerto Rico, 2001)
Siegel v. Prudential Ins. Co. of America
79 Cal. Rptr. 2d 726 (California Court of Appeal, 1998)
Exxon Corp. v. Esso Worker's Union, Inc.
942 F. Supp. 703 (D. Massachusetts, 1996)
Exxon Shipping Co. v. Exxon Seamen's Union
788 F. Supp. 829 (D. New Jersey, 1992)
No. 89-1460
889 F.2d 1184 (First Circuit, 1989)
American Federation of State, County & Municipal Employees v. State
529 N.E.2d 534 (Illinois Supreme Court, 1988)
Equitable Gas Co. v. United Steelworkers of America
676 F. Supp. 648 (W.D. Pennsylvania, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
815 F.2d 178, 125 L.R.R.M. (BNA) 2086, 1987 U.S. App. LEXIS 4029, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sd-warren-company-a-division-of-scott-paper-company-v-united-ca1-1987.