Document: 430 U.S. 243 97 S.Ct. 1067 51 L.Ed.2d 300 NOLDE BROTHERS, INC., Petitioner,v. LOCAL NO. 358, BAKERY & CONFECTIONERY WORKERS UNION, AFL-CIO. No. 75-1198. Argued Nov. 9, 1976. Decided March 7, 1977. Rehearing Denied April 25, See 988, 1689. Syllabus Petitioner corporation entered into a collective-bargaining agreement with respondent Union which contained provision for severance pay on termination of the employment certain employees. The agreement, specified that any grievance arising between parties was subject to binding arbitration, remain in effect until its expiration date and thereafter execution new or existing terminated by either party upon seven days' written notice. While contract changes were being negotiated after contract's date, August 20, 1973, gave notice cancellation, 27. Negotiations nevertheless continued but ended 31, when petitioner, threatened strike, informed it closing plant effective day. Plant operations ceased shortly thereafter. paid accrued wages, rejected respondent's demand under declined arbitrate claim therefor ground obligation do so agreement. Respondent then brought this action District Court compel inter alia, severance-pay issue. granted petitioner's motion summary judgment, holding employees' right expired voluntary agreement; consequently there no longer issue arbitrate; that, event, duty contract. Appeals reversed, concluding parties' arbitration duties survived respect claims reason Held: Respondent's is resolution terms. Pp. 248-255. (a) obligations clause may survive dispute over an arguably created John Wiley Sons v. Livingston, 376 543, 84 909, 11 898. 250-252. (b) agreed resolve all disputes resort mandatory grievance-arbitration machinery established There nothing expressly excluded from operation based events occurring termination. Absent some contrary indication, are strong reasons conclude did not intend their end automatically 252-253. (c) clearly expressed preference arbitral, rather than judicial, interpretation drafted broad against backdrop well-established federal labor policy favoring as means resolving disputes. presumption arbitrability. Steelworkers Warrior Gulf Nav. Co., 363 574, 582-583, 80 1347, 1352-1353, 4 1409. 253-255. (d) Where presumptions arbitrability must be negated clear implication. P. 255. Cir., 530 F.2d 548, affirmed. Allan L. Bioff, petitioner. Ronald Rosenberg, respondent. Mr. Chief Justice BURGER delivered opinion Court. 1 This case raises question whether required contractual pursuant even though dispute, although governed contract, arises Only before us. 2 (1) 3 In 1970, petitioner Nolde Brothers, Inc., Local AFL-CIO, covering Norfolk, Va., bakery Under 'any grievance' arbitration.1 addition, provided employees having three more years active service.2 Vacation rights also agreement;3 like pay, these geared employee's length service amount his earnings. By terms, July 21, thereafter, such time executed parties, party. May resumed bargaining advised Nolde, § 8(d) National Labor Relations Act, 29 U.S.C. 158(d), desire negotiate These negotiations without up to, beyond, 21 date. On served requisite days decision cancel Union's became 27, 1973. 5 Despite continued. They ended, however, faced strike had latest proposal, close permanently Norfolk bakery, Operations at midnight 31. wages vacation canceled contract; work performed during interim 27 bakery's four later. However, company called It 6 instituted 301 Management 185, seeking issue, alternative, judgment due. Nolde's both issues. held result, arbitrate. went note if been otherwise arbitrable, it. 382 F.Supp. 1354 (ED Va.1974). 7 appeal, United States Fourth Circuit reversed. 548 (1975). took position approached wrong direction determining Turning latter first, concluded Having thus determined one arbitrator, views merits dispute. We certiorari review determination arbitrable. 425 970, 96 2165, 48 793 (1976). 8 (2) 9 arguing displaced entitled maintained nature 'accrued' 'vested' rights, earned term essentially same basis payable only employment. support claim, noted found article 'Wages.' inclusion within provision, urged, evidence considered part compensation services life agreement.4 pointed out itself suggest triggering payment failed occur other hand, argued since creation substantive provide benefits unilateral cancellation 10 As arguments demonstrate, refusal differing perceptions have intended, maintained, surface, all, term. 'no why could they chose agree accrual realization expired.' 555, 917, 898 (1964).5 Of course, underlying whatever outcome, hinges ultimately given providing pay. therefore, can doubt meaning would procedures Indeed, contracted submit 'all grievances' our 'making face contract' matter prior plant. American Mfg. 564, 568, 1343, 1346, 1403 (1960). Here, maintains different rule prevail because event giving rise i.e., closing, 12 (3) 13 contends arbitrate, strictly creature necessarily expire existence. Hence, court post-contract simple survives agreement's Any conclusion, argues, runs prohibits imposition compulsory except bound arguing, relies numerous decisions establish 'arbitration (that) cannot he has submit.' 582, 1352, 1409 (1960); e. g., Gateway Coal Co. Mine Workers, 414 368, 374, 94 629, 635, 38 583 (1974); supra, 547, S.Ct., 912; Atkinson Sinclair Refining 370 238, 241, 82 1318, 1320, 462 (1962). 14 Our indeed compelled absence so. Adherence principles, does require us hold extinguishes party's grievances Carried logical conclusion argument preclude entry order arose proceedings begun true processes began completed, Yet seriously contended instance terminate judicial forum. Sons, supra; Enterprise Wheel Car Corp., 593, 1358, 1424 Machine Workers Oxco Brush Div., 517 239, 242-243 (CA6 1975); Procter Gamble Ind. 132 181, 186 (CA2 1962), cert. denied, 374 830, 83 1872, 1053 (1963). concedes much limiting nonarbitrability those arise expiration. Brief 22. 15 instructive matter. we pay6 arbitrable parties. arbitration: 16 "any differences, Employer relating application, enforcement." U.S., 553, 916. 17 little difficulty interpreting language post-termination 18 'based solely construction . way (the Employer) discharge notwithstanding agreement.' Id., 917. 19 first sought while claimed still effect. But factor dispositive very distinction implicitly Piano W. Kimball 379 357, 85 441, 541 (1964), rev'g 333 761 (CA7), supra.7 decline depart course instant case, for, record us, fact asserted after, before, control claim. 20 noted, arisen provided, excludes silence, intent arbitration. permit employer cut off terminating simultaneously business operations. judicial-interpretation Their doing so, well special role employer-employee relationship, long recognized Court: 22 'The arbitrator usually chosen confidence knowledge common law shop trust personal bring bear considerations criteria judgment. ablest judge expected experience competence grievance, similarly informed.' 1353. 23 experience, expertise, selection courts generally defer arbitrator's agreement: 24 '(T)he collective arbitrator. bargained for; far concerns overruling him his.' 599, 1362. 25 works obvious change relationship union, impact many behind differences through contracting process presumed matters concerning agreements Nor interest obtaining prompt inexpensive expert tribunal. construe mean intended immediately alternative remedy lawsuit designed avoid. 26 noteworthy agreements. Congress stated: 'Final adjustment method hereby declared desirable settlement application 173(d). 28 effectuate policy, arbitrability: '(T)o consistent congressional favor (a)n particular should denied unless said positive assurance susceptible covers Doubts resolved coverage.' 30 deemed conscious Consequently, failure exclude termination, manifesting cease affords relationship. short, where 31 therefore record, provisions contract.8 32 Affirmed. 33 STEWART, whom REHNQUIST joins, dissenting. 34 When two settled will means. today says union-employer containing Union, closed business. I think neither precedent nor realistic appraisal intent. 35 cases, sure, importance thereby maintaining peaceful relations. A erects system industrial self-government; make continuous: 'Arbitration solving unforeseeable molding private problems solution accord variant needs desires parties.' 581, 36 arbitral And presumptive continuation formal justified terms web assumptions about continuing labor-management available harmoniously id., 578, 1350. 37 Those wholly inapplicable case. employer-petitioner meant protect preserve. Cf. 898; Howard Johnson Hotel Employees, 417 249, 2236, 41 46. releasing foreclosed implying quid pro quo offsetting, enforceable strike. Boys Markets, Inc. Retail Clerks, 398 235, 90 1583, 199. Although peace, might rationally condition unilaterally impasse. 158(a)(5). trouble Board notion statute continues embodying terminated. Board, instead, viewed favored statutorily dispute-resolving mechanism. Hilton-Davis Chemical 185 N.L.R.B. 241 (1970). 583. 39 clear, peace serve explain Court's extends facts 40 realize broadly doubts supra. cases involved clauses undoubtedly force arose, invoked issues (See, 541, preferential hiring commenced old expired.) here, contrast, ripened For expressed, had, cause Act seek redress meet did, fact, just If addressed litigation, believe done, controversy ago. 42 respectfully dissent ARTICLE XII GRIEVANCES AND ARBITRATION 'Section 1. All shall taken Shop Steward. unable settle Business Agent in, attempt arrive grievance. Sections Article. 2. satisfactorily adjusted procedure outlined above, hereto give No individual employee invoke consent Union. Arbitration consist persons, selected Company persons third person who act Chairman Board. 3. award majority thereof, final ten (10) receipt notice, Director U. S. Conciliation Service requested appointment. expense neutral borne equally 4. Pending strikes, lock-outs, boycotts, stoppages work.' ARTICE IX WAGES 5. Each full-time introduction saving equipment, department, entire plant, lay off, compensated displacement actively employed period least years. An eligible thirty (30) hours straight hourly rate, each full year major portion commencing fourth (4th) following most recent hire. Payment formula limited maximum nine hundred (900) 6. he: '(a) accepts another Company; '(b) voluntarily involuntarily separated stated Section above.' IV VACATIONS week's year's service, weeks' years' (9) (4) eighteen (18) service. 'Effective January 1, 1972, requirement week reduced seventeen (17) twenty-five (25) benefit five (5) weeks. anniversary periods lay-offs leaves purpose computation only. regular rate average number worked thirteen (13) weeks preceding period, including holiday lost account sickness, minimum forty (40) hours' forty-eight (48) allowance.' varies according salary supports deferred compensation. apparently Art. vested request, former disagreed seniority welfare security benefits, discharges layoffs, vacations. 554 n. Seventh nonarbitrable. arise, instituted, F.2d, 762-763. Certiorari sought, granted, authority consider referral, express view Similarly, need speculate which, unlike presently reasonable

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