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Thomasville Chair Co. v. United Furniture Workers of America

Citations: 62 S.E.2d 535; 233 N.C. 46; 24 A.L.R. 2d 747; 1950 N.C. LEXIS 658Docket: 666

Court: Supreme Court of North Carolina; December 13, 1950; North Carolina; State Supreme Court

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In the case of Thomasville Chair Co. v. United Furniture Workers of America, the Supreme Court of North Carolina addressed the validity of an arbitration award regarding the interpretation of a collective bargaining agreement. The plaintiff challenged the award, claiming the arbitrators exceeded their authority and acted outside the agreement's scope. The court clarified that arbitration was not conducted under statutory provisions but rather under common law principles, emphasizing that an arbitration award can be contested if arbitrators exceed their granted powers.

The collective bargaining agreement specified that employees were entitled to two Christmas holidays, which should count as hours worked for overtime calculations. In 1949, Christmas fell on a Sunday, and the dispute arose over whether the two holidays should count as 16 hours of work toward the 40-hour threshold for overtime pay, as claimed by the Union, or if only one day could be credited.

The arbitrators ruled that the contract's terms allowed both Christmas holidays to be counted, even though one fell on a Sunday. The court upheld the arbitrators' decision, asserting that they operated within the agreement's framework and that their interpretation was final and binding. The judgment sustaining the arbitration award was affirmed, aligning with legal policy favoring resolution of labor disputes through arbitration.