Opinion ID: 2976675
Heading Depth: 3
Heading Rank: 1

Heading: Arguably Construing the Contract

Text: The Union contends that the Arbitrator “arguably construed” the collective bargaining agreement when he issued the supplemental award in favor of the Union, albeit through a more circuitous route. The Union asserts that the “contract” that the Arbitrator was construing was the original award inasmuch as the parties placed the issue of compliance with that award squarely before the Arbitrator for determination. The Union contends that the original award was to have life after the expiration of the 1998 CBA and that both parties granted the Arbitrator authority to determine whether the Company was in compliance with the original award. The Company, however, asserts that the Arbitrator was not construing, arguably or otherwise, any portion of the 1998 CBA when he made reference to the 2002 CBA and that the original award does not constitute a “contract” that the Arbitrator could construe to reach the 2002 CBA. In Michigan Family Resources, this Court explained that an arbitration award must be upheld if the arbitrator was “arguably construing” the relevant contractual provisions. 475 F.3d at 753. We find that an arbitrator may “arguably construe a contract” in a supplemental proceeding which clarifies or enforces an original award that has as its basis the relevant collective bargaining agreement. See Sterling China Co., 357 F.3d at 557. 13 No. 07-3577 In Sterling China Company v. Glass, Molders, Pottery, Plastics & Allied Workers Local 24, 357 F.3d 546 (6th Cir. 2004), this Court held that a supplemental award arguably construed a collective bargaining agreement where it “drew its essence” from an original award that interpreted the collective bargaining agreement. There, the plaintiff, Sterling China Company, appealed from a district court order enforcing a supplemental arbitration award in favor of the union. Id. at 548. The plaintiff argued that the arbitrator’s supplemental award should be vacated inasmuch as the award did not construe the collective bargaining agreement that served as the basis for the underlying dispute. Id. at 556. This Court, however, disagreed. The Sterling China court noted that the underlying dispute regarding wages for particular job classifications was governed by the collective bargaining agreement and that the arbitrator, in making his original award, interpreted and construed that agreement to conclude that the union’s grievance should be sustained. Id. Therefore, even under the more lenient Cement Divisions test, this Court held that “whether the arbitrator correctly determined the award or not, the district court’s ruling may not be reversed on review since the supplemental award ultimately drew its essence from the CBA.” Id. at 557. See also Int’l Ass’n of Machinists and Aerospace Workers v. Tennessee Valley Authority, 155 F.3d 767 (6th Cir. 1998) (finding that a supplemental arbitration award arguably construed a collective bargaining agreement because it relied upon an original award that determined the parties’ rights under the relevant agreement). Similarly, in Marcucilli v. American Airlines, No. 04-40244, 2007 WL 1219042 (E.D. Mich. 2007), the court held that two supplemental arbitration awards “arguably construed” a collective 14 No. 07-3577 bargaining agreement because both were based upon an original award that “construed the CBA.” Id. at . Taken together, Sterling China, International Association of Machinists and Marcucilli stand for the proposition that a supplemental award “arguably construes” a collective bargaining agreement where the supplemental award seeks to clarify or enforce an original award that interpreted the relevant agreement. Thus, whether the “contract” at issue was the 1998 CBA or the Arbitrator’s original award is insignificant inasmuch as both reference the same document: the 1998 CBA that produced the initial grievance. The Union, however, argues that the parties’ “submission” to the Arbitrator constituted an agreement that broadened the scope of what the Arbitrator was to “arguably construe.” The Union argues, without any support from this Circuit, that the Arbitrator was to construe not only the 1998 CBA but also the National Labor Relations Act (“NLRA”). The Union asserts that because the initial charge filed by the Union before the National Labor Relations Board included allegations that the Company engaged in unfair labor practices in violation of the NLRA, when the charge was administratively deferred, “the entire Charge arguably went to the Arbitrator for resolution.” (Union Br. at 30) Assuming that the Arbitrator was construing not only the 1998 CBA but also the NLRA, the Union argues that “[t]he Arbitrator’s earlier construction of the 1998 CBA, and implicitly, Section 8(a)(5) of the NLRA is no longer challengeable. As such the Award is now the law-of-thiscase whether or not it could have been successfully raised earlier.” (Union Br. at 30). Even assuming, arguendo, that the submission was broader than the 1998 CBA, the Arbitrator’s original award undermines the Union’s argument regarding what the Arbitrator actually 15 No. 07-3577 or even arguably construed. When describing the nature of the case, the Arbitrator noted that “this case pertains to a dispute regarding the interpretation and application of language in the Agreement.” (J.A. at 77) (emphasis added). The Arbitrator went on to summarize the parties’ positions with respect to the Agreement as well as to provide a summary of the 1998 CBA itself, including the grievance provision and Appendix C. (J.A. at 78-79) Indeed, the Arbitrator framed the issues before him as “[d]id management violate the agreement when they unilaterally made changes in the healthcare insurance benefits beginning on January 1, 2002? If Management violated the Agreement what is the appropriate remedy?” (J.A. at 85, 89) The controlling document before the arbitrator, therefore, whether phrased as the original award or the 1998 CBA, ultimately stemmed from the 1998 CBA that was in force at the time the change to the healthcare benefits became effective. Resolving the question of what the Arbitrator was to construe does not, however, resolve the critical question of whether the Arbitrator acted outside of his authority with respect to the supplemental award.