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April 04, 2005
Arbitrator went outside the contract
Can an arbitrator rely on an employer's rules that are not incorporated into the collective bargaining agreement? Maybe not, in Ohio.
The facts were simple in Cincinnati v. Queen City Lodge (Ohio Ct App 04/01/2005). A police officer lied during a criminal trial, the City discharged him, and he grieved under the collective bargaining agreement. An arbitrator reinstated him and imposed a three day suspension.
The arbitrator's reasoning was simple. The City could discipline or discharge an officer for just cause, and the City had just cause to discipline this officer. The City's Rules Manual provided for a one to three day suspension for a first time violation of the rule prohibiting giving misleading information. Therefore, the arbitrator reduced the penalty to a three day suspension.
The Ohio Court of Appeals concluded (2-1) that the arbitrator's decision did not draw its essence from the collective bargaining agreement, and held that the arbitrator's award should be vacated. This was because the arbitrator relied on a source outside the agreement, and there was no "rational nexus" between the agreement and the award.
My view: This case is a lesson on how an arbitrator should write an opinion. Always make it clear that the reasoning is rooted in the contract. There should be nothing wrong with referring to outside documents such as the employer's rules. But the Ohio court noted that this arbitrator relied entirely on the employer's rules. Why couldn't the judges see the connection between the rules and the contract? Because the arbitrator did not explain the connection.
Posted by Ross Runkel, Editor at LawMemo, publisher of Employment Law Memo. Try it.
