Eaton Corp. v. Paper, Allied-Industrial, Chemical & Energy Workers International Union
Opinion of the Court
This is an appeal by an employer from a district court judgment affirming a labor arbitrator’s award. For the reasons that follow, we AFFIRM the decision of the district court.
I.
Plaintiff/appellant, Eaton Corporation, Engineered Fasteners Division (“Eaton”), filed this action against Paper, Allied Industrial, Chemical and Energy Workers International Union, AFL-CIO, CLC, Local 5-334 (“Union”). Eaton and the Union are parties to a collective bargaining agreement (“CBA”) which governs the discipline and discharge of employees.
2. Reporting to work while intoxicated, bringing intoxicants into the premises or indulging in intoxicants while on Company property is forbidden.
Eaton later adopted a substance abuse policy (“SAP”) which addressed the “use of illegal substances on company premises.”
The unlawful manufacture, distribution, dispensation, purchase, possession, sale or use of illegal drugs or unauthorized controlled substances on [Eaton] premises, in Company owned, leased or rent*312 ed vehicles, or while engaged in [Eaton] business is prohibited.
The possession, use, distribution, purchase or sale of alcohol while on Company premises, or when providing services to the company, in Company owned, leased or rented vehicles is prohibited unless approved by management. Employees who violate the above provisions will be subject to disciplinary action up to and including termination.
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The providing of services to the Company by any individual at any time when the individual is, in the opinion of the Company, subject to the effects of any controlled substance is prohibited.
Unless prohibited by law, termination of employment will occur as a result of the following:
• refusal to submit to a drug and/or alcohol test
• failing to complete a substance abuse treatment program
• failing a management initiated drug test which includes, but is not limited to, reasonable suspicion, post-incident, and return-to-duty testing.
Under this policy, employees who test positive for alcohol are suspended and given the opportunity to participate in rehabilitative treatment. These rules, regarding the use of legal and illegal substances, were implicated by the injury of Eaton employee John Doran in January of 1998.
At all times relevant herein, John Doran (hereinafter “grievant”) was employed by Eaton as a press operator. On January 22, 1998, approximately fifteen minutes after the start of his shift, grievant reported to Eaton’s health care personnel for treatment of a laceration on his right hand. This injury prompted Eaton to administer both a Breathalyzer test and a urine drug screen.
Soon thereafter, the Union filed a grievance contesting the discharge. Upon reaching an impasse, the parties submitted the matter to an arbitrator for determination. The CBA provides that the arbitrator has “full discretion to make appropriate modifications of the penalty.” Thus, the parties stipulated to an agreement limiting the arbitrator’s review to whether Eaton had “just cause” to terminate the grievant.
In May of 1999, the arbitrator ordered grievant’s reinstatement after concluding that the Eaton lacked “just cause” for his
Eaton brought suit in the district court, seeking to have the arbitrator’s decision vacated. On December 17, 1999, the district court issued a memorandum opinion and order granting summary judgment to the Union and affirming the decision of the arbitrator. This appeal ensued.
II.
Eaton presents two issues in this appeal.
A.
We review a grant of summary judgment in labor arbitration cases de novo. See Monroe Auto Equip. Co. v. Int'l. Union, 981 F.2d 261, 265 (6th Cir. 1992). Nevertheless, our review of an arbitration decision is extremely limited. Id. “Because the parties have contracted to have disputes settled by an arbitrator chosen by them rather than a judge, it is the arbitrator’s view of the facts and of the meaning of the contract that they have agreed to accept. Courts thus do not sit to hear claims of factual or legal error by an arbitrator as an appellate court does in reviewing decisions of the lower courts.” United Paperworkers Int’l. Union v. Misco, Inc., 484 U.S. 29, 37-38, 108 S.Ct. 364, 98 L.Ed.2d 286 (1987). “In fact, [a court’s] review of an arbitration award is one of the narrowest standards of judicial review in all of American jurisprudence.” Tennessee Valley Authority v. Tennessee Valley Trades and Labor Council, 184 F.3d 510, 514-515 (6th Cir. 1999).
Given the strong federal policy in favor of enforcing arbitration agreements, a court must enforce an arbitrator’s award as long as it “draws its essence from the collective bargaining agreement.” Misco, 484 U.S. at 36, 108 S.Ct. 364 (quoting United Steelworkers v. Enterprise Wheel
B.
With deference to the very limited standard of review available in the instant case, we turn rto the first issue presented in the instant matter — whether the arbitrator exceeded his authority.
Eaton argues that the SAP expressly provides that failing a post-incident drug test will result in termination of employment. Thus, inasmuch as the SAP provides only for termination in the event of a failed drug test, the “[ajrbitrator was without authority to choose a[nother] remedy.” At the core of this argument is Eaton’s belief that once the arbitrator found that grievant’s adulterated drug test violated the SAP, the arbitrator was required to defer to the remedy provided under the SAP. This result is contrary to the findings of the arbitrator, the district court and the law of this Circuit.
Section 14 of the CBA allows Eaton to discipline its employees for “just cause,” while § 10(b)(3) of the CBA empowers the arbitrator to make determinations in “cases of alleged improper disciplinary layoff or discharge, with full discretion to make appropriate modifications of the penalty.” The arbitrator found that these provisions, notwithstanding the absolute termination provision of the SAP, subjected the SAP and any penalty imposed thereunder to a review for “reasonableness ... inconsistency ... discrimination, arbitrariness or malice.” Relying upon this Court’s holding in Eberhard Foods, Inc. v. Handy, 868 F.2d 890 (6th Cir. 1989), the district court affirmed the arbitrator’s determination.
In Eberhard we held that “it is the language of the CBA and the arbitrator’s own construction thereof, which determines the scope of the arbitrator’s authority.” Id. at 892. Having bargained “to have disputes settled by an arbitrator chosen by them,” Eaton is bound by the “arbitrator’s view of the facts and of the meaning of the contract that they have agreed to accept.” Misco, 484 U.S. at 37-38. Moreover, an arbitrator’s authority to interpret a “just cause” provision is not negated by work rules or employer policies which mandate discharge for certain offenses. See General Truck Drivers v. Dayton Newspapers, Inc., 190 F.3d 434, 438-39 (6th Cir. 1999). Thus, we find that the arbitrator was authorized to review Eaton’s actions for “just cause,” even though a literal application of the SAP would have authorized Eaton to terminate grievant.
We turn now to Eaton’s second argument. Eaton contends that the SAP does not distinguish between on-the-premises drug use and off-duty drug use and, therefore, argues that the arbitrator’s award exceeds his authority. Eaton further contends that there is no reasonable basis for the arbitrator’s attempt to equalize the treatment of substance and alcohol abusers. Eaton also asserts that the distinction between alcohol and illegal drugs has been judicially and eongressionally recognized and, thus, the SAP is congruent with federal public policy.
The arbitrator opined that alcohol testing indicates current intoxication and is, thus, highly relevant to the offender’s ability to perform his duties. The arbitrator reasoned that urinalysis testing for illegal drugs, on the other hand, only establishes “past drug use, not that the employee was using or was impaired on the job.” In this vein, the arbitrator found that “urinalysis fights the presumption that the Company’s main Concern is the employee’s behavior and physical condition while at work.” Moreover, the arbitrator found that rules promulgated to govern and protect the employment relationship should be enforced, while conversely, rules that have no bearing on employment should be disallowed. Consequently, the arbitrator concluded that the portions of the SAP which provided an opportunity for rehabilitation when an employee tests positive for the contemporaneous use of alcohol but required termination for the potentially remote use of other drugs, were “unreasonable and therefore void.” With regard to Eaton’s argument that the SAP was patterned from federal statutes, that arbitrator noted that the “function of government is law enforcement [while pjrivate employers do not share that” goal. The arbitrator further reasoned that “off-duty conduct, including many types of criminal behavior [are] beyond the reach of the employer’s disciplinary powers.”
This Circuit has long recognized that “[a]s long as the arbitrator is even arguably construing or applying the contract and acting within the scope of his authority” not even a reviewing court’s conviction that he has “committed ... serious error [will] suffice to overturn his decision.” General Truck Drivers v. Dayton Newspapers, Inc., 190 F.3d 434, 437 (6th Cir. 1999)(quoting Misco, 484 U.S. at 38, 108 S.Ct. 364).
“If an arbitration award draws its essence from the collective bargaining agreement ... we must uphold the award. An arbitrator’s award fails to draw its essence from the agreement when:(l) it conflicts commonly with express terms of the agreement; (2) it imposes additional requirements not expressly provided for in the agreement; (3) it is not rationally supported by or derived from the agreement; or (4) it is based on general considerations of fairness and equity instead of the exact terms of the agreement.”
Dayton Newspapers, Inc., 190 F.3d at 437 (citations omitted). We will address each of these enumerated factors in turn.
First, Dayton Newspapers requires that the arbitrator’s award comply “commonly” with the agreement’s express terms. Id. The express terms of the CBA empowered the arbitrator to ascertain whether there was “just cause” for an employee’s termination and to modify any penalty, thus, there is no conflict between the award and the agreement. Similarly, we find that .the arbitrator’s award did not impose additional requirements. As previously noted, the arbitrator had the authority to interpret the contract and modify any penalty. Consequently, the proffered remedy was congruent with the CBA. Next, we turn to Dayton Newspapers requirement that the
III.
Therefore, as the district court’s decision upholding the arbitration award is consistent with the directives of the Supreme Court and the law of this Circuit, the judgment of the Honorable James S. Gwin is hereby affirmed.
. The CBA was effective at all times relevant herein.
. During the arbitration proceedings, the Union argued that the company "failed to bargain” for adoption of the SAP. The arbitrator found that "the Company was not under a duty to bargain with the Union over the Substance Abuse Policy” and that Eaton had properly implemented the SAP. The validity of the SAP was not contested by the Union before the district court and has not been raised in this appeal.
. The Occupational Safety and Health Administration (“OSHA”) requires industrial employers “to maintain accurate records of ... work-related deaths, injuries and illnesses other than minor injuries requiring only first aid treatment and ... do not involve medical treatment.” 29 U.S.C. § 657(c)(2). These records are conventionally termed "OSHA 200 Logs.” The parties agree that an OSHA-200 Log is the "deciding factor in post-incident” drug testing and, consequently, the propriety of the testing has not been contested. The Court notes, however, that the SAP and the CBA fail to reference this OSHA provision as a basis for testing. More noticeably, the SAP and CBA completely neglected to define the term "incident.”
. Eaton originally presented an additional issue on appeal: whether the arbitrator's award violated the "well-defined” public policy against reinstating a current drug user. After the period for filing briefs with this Court had expired but prior to oral arguments, the Supreme Court issued an opinion affirmatively deciding the public policy issue. In Eastern Associated Coal Corp. v. United Mine Workers of Am., Dist. 17, et al., 531 U.S. 57, 121 S.Ct. 462, 469, 148 L.Ed.2d 354 (2000), the Court unanimously held that considerations of public policy did not preclude the enforcement of an arbitration award reinstating an employee who had tested positive for marijuana. Based upon this ruling, Eaton conceded and withdrew the public policy argument from this Court’s consideration.
. Specifically, Eaton proffers the Americans with Disabilities Act (the "ADA"), 42 U.S.C. §§ 12101-12213 and the Drug-Free Workplace Act, 41 U.S.C. § 701, et seq. With respect to the ADA, Eaton argues that the ADA statutorily denies current drug users the pro
Reference
- Full Case Name
- EATON CORPORATION, Engineered Fasteners Division v. PAPER, ALLIED-INDUSTRIAL, CHEMICAL AND ENERGY WORKERS INTERNATIONAL UNION, AFL-CIO, CLC, Local 5-334
- Cited By
- 2 cases
- Status
- Published