Opinion ID: 203262
Heading Depth: 3
Heading Rank: 2

Heading: Review of the Arbitration Award

Text: This Court has recognized a very limited exception under which we may vacate an arbitration award when there is evidence that the arbitrator acted in manifest disregard of the law. Wonderland Greyhound Park, Inc. v. Autotote Sys., Inc., 274 F.3d 34, 35 (1st Cir.2001). To establish such an exception, the challenger must show that the arbitration award complained of is: (1) unfounded in reason and fact; (2) based on reasoning so palpably faulty that no judge, or group of judges, could ever conceivably have made such a ruling; or (3) mistakenly based on a crucial assumption that is concededly a non-fact. McCarthy v. Citigroup Global Mkts., Inc., 463 F.3d 87, 91 (1st Cir.2006). To succeed, there must be some showing in the record, other than the result obtained, that the arbitrator[ ] knew the law and expressly disregarded it. Advest, Inc. v. McCarthy, 914 F.2d 6, 9 (1st Cir.1990) (quoting O.R. Secs., Inc. v. Prof'l Planning Assoc., Inc., 857 F.2d 742, 747 (11th Cir. 1988)). [3] Ramos argues that this is the type of extraordinary case that warrants our vacating the arbitral decision because the arbitrator who issued it acted in manifest disregard of the law by knowingly applying the wrong provision of the CBA. Ramos's argument is unavailing. UPS terminated Ramos's employment under Article 11, § 3 of the CBA, which by its text allows for the summary discharge or suspension of an employee who declares an unauthorized strike, work stoppage, slowdown, walkout or . . . other action that paralyzes, obstructs or interrupts the operations of the Company. The arbitrator properly found that Ramos's dismissal was justified under this provision. Ramos argues that his actions cannot be characterized as a strike, work stoppage, slowdown or walkout for the sole reason that he did not engage in any concerted activity with other employees. While Ramos is correct that the existence of a strike requires concerted action, see 29 U.S.C. § 142 (2000), this Court has stated that concerted action may be carried out by a single employee under certain circumstances. Five Star Transp. v. NLRB, 522 F.3d 46, 51 (1st Cir.2008) (holding that the critical inquiry in determining whether action by a single employee constitutes concerted activity is whether such action is in furtherance of a group concern). More to the point, the very text of Article 11, § 3 contemplates actions carried out by any employee or delegate, and does not institute a group action requirement. Thus, though concerted action does not by itself constitute a strike, the fact that Ramos acted alone does not render the application of Article 11, § 3 improper. Furthermore, the fact that Ramos delivered packages other than those scheduled for delivery at Centro Médico on the Friday and Monday in question does not make his discharge under Article 11, § 3 unwarranted. Ramos's decision to not deliver the thirty-seven packages on the assigned days clearly obstructed and/or interrupted UPS's operations in contravention of Article 11, § 3. As developed in arbitration, UPS's regular mode of operation is that packages be delivered to the recipient on the day they are sent out from the UPS processing center for delivery. Even if it is understood that some low number of packages might miss their delivery date due to extenuating circumstances, that that number should be as high as thirty-seven is clearly a departure from the norm. Based on Ramos's admission during arbitration, the arbitrator found that this departure from UPS's normal operations was caused by Ramos's conscious decision to not deliver the thirty-seven packages to Centro Médico. As such, Ramos's action obstructed and/or interrupted UPS's operations and the arbitrator's decision is a plausible construction of Article 11, § 3. It is also clear that the arbitrator's decision draws its essence from the CBA. Because the arbitrator did not act in manifest disregard of the law, and her opinion is supported in reason and fact and is not based on faulty reasoning or a crucial assumption that is concededly a non-fact, the arbitral award is allowed to stand.