Shaw's Supermarkets, Inc. v. United Food & Commercial Workers Union, Local 791

268 F. Supp. 2d 115, 172 L.R.R.M. (BNA) 2894, 2003 U.S. Dist. LEXIS 10698, 2003 WL 21458530
CourtDistrict Court, D. Rhode Island
DecidedJune 23, 2003
DocketC.A. 02-98L
StatusPublished
Cited by1 cases

This text of 268 F. Supp. 2d 115 (Shaw's Supermarkets, Inc. v. United Food & Commercial Workers Union, Local 791) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shaw's Supermarkets, Inc. v. United Food & Commercial Workers Union, Local 791, 268 F. Supp. 2d 115, 172 L.R.R.M. (BNA) 2894, 2003 U.S. Dist. LEXIS 10698, 2003 WL 21458530 (D.R.I. 2003).

Opinion

DECISION AND ORDER

LAGUEUX, Senior District Judge.

Plaintiff filed the present action seeking an order vacating the arbitration award (“Award”) to reinstate, with specific conditions, plaintiffs employee, Barbara Co-derre (“Coderre”). For its part, defendant filed a counterclaim seeking an order to enforce the award. The case is before this Court on cross motions for summary judgment.

The memoranda of law in support of the respective motions for summary judgment attempt to answer one fundamental question: does the decision of Arbitrator James S. Cooper (“Arbitrator”) to reinstate Coderre, with specific conditions, violate a dominant, well-defined and explicit public policy? After close examination of existing case law, this Court concludes that the Arbitrator’s Award ordering the conditional reinstatement of Coderre does not violate the well-established public policy of detecting, preventing and punishing fraud and forgery in the WIC program. Therefore, this Court denies plaintiffs motion for summary judgment and the Court grants summary judgment to defendant on the counterclaim.

Background

Shaw’s Supermarkets, Inc. (“plaintiff’) filed this action on February 25, 2002 against United Food and Commercial Workers Union, Local 791, AFL-CIO (“defendant”) pursuant to Section 301 of the Labor Management Relations Act of 1947, 29 U.S.C. § 185 (2000) and the Federal Arbitration Act, 9 U.S.C. § 10 (2000). Plaintiff seeks an order vacating the December 7, 2001 Award (“Award”) of the Arbitrator.

Plaintiff and defendant are parties to a collective bargaining agreement (“CBA”) which, for purposes of this case, covers the period July 28, 1997 to July 27, 2001. The CBA includes a management rights clause which permits plaintiff to discharge employees for “proper cause” and a provision for final and binding arbitration of grievances arising under the agreement. The parties submitted a grievance to arbitration in order to resolve whether plaintiff had just cause to suspend its employee, Coderre on February 4, 2000 and then subsequently terminate her on February 8, 2000. In his December 7, 2001 Opinion and Award, the Arbitrator made numerous findings of fact. In order to place the present case in its proper context, this Court will summarize the Arbitrator’s findings.

I. The WIC Program

Plaintiff operates a large chain of supermarkets in Massachusetts and Rhode Island including thirty-eight stores repre *118 sented by defendant in southeastern Massachusetts and Rhode Island. The store at issue is located in North Providence, Rhode Island. The North Providence store relies on its participation in the Rhode Island Women Infant and Children (“WIC”) Program in addition to customers’ use of food stamps for approximately twenty-five percent of its weekly revenue. The WIC and food stamp programs provide subsidies to individuals whose income or circumstances warrant government assistance to provide for their well-being. The Rhode Island Department of Health (“RIDOH”) administers the WIC Program through a Vendor Participation Agreement between the Department and the Employer. Plaintiff participated as an Employer under this Agreement which specifies a series of Check Redemption Terms and a Vendor Compliance (sanctions) Policy. Plaintiff trains its cashiers in WIC policy through classroom instruction and hands-on experience.

In short, the WIC Program requires a customer with a WIC check to present proper identification indicating that the customer is eligible to sign the check. The store clerk then writes the total price of the eligible foods on the check, whereupon the customer signs the check in the presence of the clerk. If the incorrect amount is written on the check, the price may be corrected, but the customer must once again sign the check. Any WIC check which is not properly executed in accordance with the WIC Vendor Participation Agreement and the WIC Vendor Policies is void and may not be deposited in plaintiffs account. An improperly executed check is counted as a short for plaintiffs Checkout Manager.

II. Barbara Coderre

Coderre was the Checkout Manager at the North Providence store prior to her February 4, 2000 suspension and subsequent termination on February 8, 2000. She had served in that capacity since September 1998. Coderre had been employed by plaintiff in Massachusetts and Rhode Island for nine years prior to arriving at the North Providence store. She testified during the arbitration that she had never received formal WIC training, but had learned what was required of her by working on the job. Although it was unclear to the Arbitrator whether a service desk manager or another checkout manager informed Coderre that she should sign the purchaser’s names to unsigned checks, the Arbitrator concluded that there was sufficient evidence to find that at some point during her employment, an employee in a managerial position told Coderre to sign customers’ signatures on unsigned WIC checks.

The Arbitrator further found that by the time Coderre arrived at the North Providence store, she was accustomed to doing that. She explained during the arbitration that she primarily signed WIC checks which had been signed by the customer but required a second signature due to an error in the amount which had been entered on the check. Although the correct amount would be entered on the check, the checkout clerk did not always secure the customer’s second signature which was required by WIC policy for the purpose of verifying the price change. Although Co-derre warned her cashiers about being careless, if the same cashiers made this mistake repeatedly, she informed the store manager of the ongoing problem. The manager, however, never issued additional warnings nor implemented additional employee training sessions. Nevertheless, the bookkeepers and service desk manager routinely left Coderre with unsigned WIC checks with the expectation that she would sign them and return them to the service desk.

*119 During December of 1999, however, plaintiffs store manager learned that Co-derre was forging customer signatures and an investigation ensued which culminated with Coderre’s termination in early February 2000. Nevertheless, it is undisputed that Coderre was in all other respects an effective employee who had provided plaintiff with a solid performance and who had met the expectations of her employer.

III. The Arbitrator’s Award

In the Award, the Arbitrator concluded that Coderre had intentionally forged customer names to vouchers tendered to plaintiff under the WIC Program, The Arbitrator found that the forgery was in violation of plaintiffs policy prohibiting the forging of WIC check signatures. The Arbitrator also recognized that RIDOH had the authority to impose sanctions on the North Providence store for these violations and that, had the store lost its license, the result would have been financially devastating.

Nevertheless, the Arbitrator found that there was only a very small chance that plaintiff would lose its license as a WIC vendor.

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Related

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275 F. Supp. 2d 214 (D. Rhode Island, 2003)

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Bluebook (online)
268 F. Supp. 2d 115, 172 L.R.R.M. (BNA) 2894, 2003 U.S. Dist. LEXIS 10698, 2003 WL 21458530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaws-supermarkets-inc-v-united-food-commercial-workers-union-local-rid-2003.