Ameren Ill. Co. v. Int'l Bhd. of Elec. Workers
Ameren Ill. Co. v. Int'l Bhd. of Elec. Workers
Opinion of the Court
Brian Knox got into a heated argument with his supervisor at work. He allegedly made threatening remarks and was known to carry a concealed weapon either on his person or in his personal vehicle, which was parked in the company parking lot. In response, his employer terminated him for violating its Workplace Violence Policy. Through his union, Knox brought a grievance under the collective bargaining agreement ("CBA") then in force, and the parties opted for binding arbitration. The arbitrator determined that although Knox had technically violated the policy, the employer could not enforce the rule because it violated an Illinois statute. The arbitrator ordered Knox's reinstatement, and the employer sought review by the federal district court and obtained a judicial order vacating the award on the ground that the arbitrator improperly applied external law to contradict the terms of the CBA. Because we believe that the text of the CBA permitted the arbitrator to look to external law in interpreting the agreement, we reverse the judgment of the district court and uphold the arbitrator's award.
I. BACKGROUND
Ameren Illinois Company operates a facility in Galesburg, Illinois. Ameren employed Knox at the facility beginning in 1998 and made him a crew leader in 2015. On June 3, 2016, Knox had a series of heated arguments with his supervisor Gabriel Jones over the scheduling of work. Other employees later indicated to Jones that Knox owned several firearms and was known to carry concealed weapons on a regular basis. On June 6, representatives of the company confronted Knox in the presence of a union representative and a deputy sheriff. They requested Knox's consent to search both his person and his vehicle for weapons. He consented, and the search uncovered a firearm in Knox's truck (then parked in the company's parking lot).
On June 27, Ameren notified Knox of his termination for violations of the company's Workplace Violence Policy, which expressly prohibits threatening or intimidating another employee and "the possession of unauthorized weapons by any employee ... on Company parking lots." (R. 1-3 at 2-3.)
The following day, the union filed a grievance on Knox's behalf to protest his termination. After the parties failed to resolve the dispute among themselves, they submitted the case to binding arbitration. The parties certified the following question to the arbitrator: "Was the termination of the Grievant on or about June 27, 2016 for just cause; and if not, what is the appropriate remedy?" (R. 1-3 at 1.) According to the CBA, "[t]he arbitrator's decision [is] final and binding on all parties." (R. 1-1 at 6.) But the agreement also adds a jurisdictional caveat: "In considering any dispute under this provision, the arbitrator [has] no authority to amend, delete from or add to this agreement." Id .
*616Arbitrator George R. Fleischli conducted a hearing on March 24, 2017, and delivered his award on July 8. Finding that the company did not have just cause to terminate Knox, he reversed the company's action on two separate grounds. First, he disagreed with the company's allegations that Knox's remarks to Jones rose to the level of threats or intimidation and instead found that the statements were merely "a clear affront to [Jones'] authority." (R. 1-3 at 40-41.) While serious enough to warrant discipline, Fleischli did not believe that the comments violated the policy or merited termination.
Second, and most notable for the case before us today, Fleischli found that Knox had, in fact, violated the policy by storing a firearm in his personal vehicle. However, he determined that the policy was unenforceable because Knox possessed a valid license to carry the weapon under the Illinois Concealed Carry Act, 430 ILCS 66/1 et seq . That statute expressly permitted Knox to store his firearm in his vehicle on private property unless the owner posted a sign "indicating that firearms are prohibited on the property." Id. at § 65(a-10). Because the company had no such sign posted, the arbitrator found that the law "serve[d] to prohibit the Employer from enforcing its rule in the Grievant's case, because he [was] in possession of a concealed carry license." (R. 1-3 at 44.)
Ameren immediately brought suit to vacate Fleischli's award. The district court, finding that the arbitrator improperly applied external public law to contradict the bargain between the parties, granted summary judgment to Ameren and vacated the award. See Ameren Ill. Co. v. Int'l Bhd. of Elec. Workers, Local Union No. 51 , No. 3:17-cv-03163,
II. ANALYSIS
We review the district court's decision to grant summary judgment and vacate the arbitrator's award de novo . See Amax Coal Co. v. United Mine Workers of Am., Int'l Union ,
A court's role in reviewing a labor arbitration award is "very limited." United Steelworkers of Am. v. Am. Mfg. Co. ,
This extraordinarily deferential standard of review is grounded in courts' respect for the role of the labor arbitrator in administering "a system of industrial *617self-government." United Steelworkers of Am. v. Warrior & Gulf Nav. Co. ,
But that does not mean that courts have no role in reviewing the results of labor arbitration. Section 301 of the Labor Management Relations Act, codified at
[A]n arbitrator is confined to interpretation and application of the collective bargaining agreement; he does not sit to dispense his own brand of industrial justice. He may of course look for guidance from many sources, yet his award is legitimate only so long as it draws its essence from the collective bargaining agreement. When the arbitrator's words manifest an infidelity to this obligation, courts have no choice but to refuse enforcement of the award.
The Supreme Court elaborated on that guidance in Alexander v. Gardner-Denver Co. ,
*618Arch of Illinois, Div. of Apogee Coal Corp. v. District 12, United Mine Workers of Am. ,
We interpreted the language from Gardner-Denver in Roadmaster Corp. v. Prod. and Maint. Emp. Local 504, Laborers' Int'l Union of N. Am., AFL-CIO ,
But in other cases, we have found that references to external law were not so clear as to defeat the deference we have traditionally accorded to labor arbitrators. In Butler , an arbitrator determined that some of the grievant's unauthorized absences had been protected under the Family and Medical Leave Act of 1993 (FMLA),
Roadmaster and Butler are not in conflict with one another. They both recognize the difficult tasks that courts face when wading into the field of labor arbitration. "[J]udicial intervention is illsuited to the special characteristics of the arbitration process in labor disputes." Textile Workers Union of Am. v. Lincoln Mills of Ala. ,
[A]rbitration is an integral part of the system of [industrial] self-government. ... It is only when the system breaks down completely that the courts' aid in these respects is invoked. But the courts cannot, by occasional sporadic decision, restore the parties' continuing relationship; and their intervention in such cases may seriously affect the going systems of self-government.
For that reason, courts hesitate to set aside an arbitrator's award so long as it "draws its essence from the collective bargaining agreement." Enterprise Wheel , 363 U.S. at 597,
The trouble arises, however, when the arbitrator's reasoning is unclear. As we noted in Butler , "[a]rbitrators are normally not required to write any opinion at all, and it is worth reiterating that a court's review of an arbitral award does not proceed under the same principles that would apply if it were reviewing a decision of the Social Security Administration or a *619bankruptcy court."
Both Roadmaster and Butler applied these same principles to two different sets of facts. In Roadmaster , the arbitrator explicitly recognized the conflict between the CBA and the statute and opted to apply the law over the contract. That contract "specifically limit[ed] [the] arbitrator's subject matter jurisdiction," so we held that he "should restrict his consideration to the contract, even if such a decision conflicts with ... statutory law."
Since our decision in Roadmaster , it seems that unions and employers have begun to incorporate external law into their CBAs more frequently. See, e.g., Martin H. Malin, The Evolving Schizophrenic Nature of Labor Arbitration ,
A. The Arbitrator's Analysis was Incomplete
In this case, the arbitrator issued a lengthy, reasoned award that directly engaged with the tensions between the CBA and the public statute.
The Union is not asking the Arbitrator to ignore a provision of the Agreement, which would arguably violate the contractual limits on his authority. Further, it is not asking the Arbitrator to nullify the Company rule ... . It is asking the Arbitrator to conclude that the rule is illegal and unenforceable, as applied to an employee, holding a concealed carry license.
Id. at 43-44,
We find his attempt less than satisfying. While he acknowledged the rule in Roadmaster , he then went on to find a company *620rule "illegal and unenforceable" based on a lengthy analysis of the text and legislative history of the Concealed Carry Act.
The district court in this case took the arbitrator at his word. It analyzed the reasoning contained in the award and, relying primarily on our decision in Roadmaster , concluded that Arbitrator Fleischli went outside the scope of his charge to determine whether there was just cause to terminate Knox.
B. But Other Language in the CBA Incorporates External Law
In Arch , we reiterated that "before we reject an award because of language in the arbitrator's opinion, the opinion must unambiguously reflect that the arbitrator based his decision on noncontractual grounds."
This was the same path we followed in Butler . In that case, there was language in the CBA that "allowed the arbitrator to consider external law[,] and the parties framed the arbitration proceedings to force consideration of [that law]."
We find this case to be more akin to the facts of Butler than those at issue in Roadmaster . The CBA contains the following language in its preamble:
Any provisions of this Agreement found by either party to be in conflict with State or Federal statutes shall be suspended when such conflict occurs and shall immediately thereafter be reopened for amendment to remove such conflict.
(R. 1-1 at 4)
This provision is arguably clearer than the language that we found sufficient in Butler . Although both the arbitrator and the district court overlooked the provision, we believe that it firmly establishes the intent of the parties to bring external law such as the Concealed Carry Act within the scope of the bargain.
*621III. CONCLUSION
"[T]his arbitral award should be enforced because it is supported by the terms of the parties' agreement and thus lay well within the arbitrator's authority despite the fact that the arbitrator's opinion did not spell this out." Butler ,
For those reasons, we VACATE the district court's order and ENFORCE the arbitral award.
The parties disagree about whether the Workplace Violence Policy arises out of the CBA. The company, citing to a long string of NRLB decisions holding that workplace safety rules are a mandatory subject of bargaining, argues that the policy comes within the broad bargaining environment and is therefore part of the CBA for the purposes of applying the rule in Roadmaster . The union contends that the company unilaterally issued the policy and that it is not entitled to deference as part of the CBA. We need not reach the issue, however, because we find that the CBA incorporates external law sufficiently to uphold the arbitration award.
We stress that although the original dispute involved rules regulating the carrying of firearms, today's dispute deals solely with the law of labor arbitration. Neither party has raised any claim under the Second Amendment, and we express no opinion regarding the Concealed Carry Act or internal corporate policies regarding weapons.
Reference
- Full Case Name
- AMEREN ILLINOIS COMPANY v. INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, Local Union 51
- Cited By
- 13 cases
- Status
- Published