Opinion ID: 2339576
Heading Depth: 1
Heading Rank: 8

Heading: Necessity of Arbitration

Text: As its final issue on appeal, the employer argues that questions concerning liability for severance pay should have been first submitted to arbitration in light of the mandatory arbitration provision in the collective bargaining agreement with Local 385. We disagree. Article IV, Section 5 of the collective bargaining agreement in existence between Halifax and Local 385 does provide for arbitration when grievances arise concerning the interpretation or application of the terms of the contract. However, the claim for severance pay that is the subject of this suit does not arise out of the contract. In the first place, the State is the central party bringing this action under Section 625-B for all Halifax employees, union and non-union alike. Second, the contract in existence between Halifax and Local 385 at the time of the closing did not address severance pay. Consequently, resort directly to the courts by the Director of the Bureau of Labor Standards was appropriate. The entry is: Judgment modified in accordance with the opinion herein to subtract severance pay already paid, and as so modified, affirmed.