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Mercy Memorial Hospital Corporation v. Hospital Employees' Division of Local 79, Service Employees International Union, Afl-Cio

Citations: 23 F.3d 1080; 146 L.R.R.M. (BNA) 2434; 1994 U.S. App. LEXIS 10613; 1994 WL 178872Docket: 93-1183

Court: Court of Appeals for the Sixth Circuit; May 12, 1994; Federal Appellate Court

Narrative Opinion Summary

This case involves an appeal by Mercy Memorial Hospital Corporation against a judgment from the Eastern District of Michigan, which affirmed an arbitrator's decision requiring the reinstatement of an employee, a union steward, discharged for alleged violations including time card tampering. The Hospital contended that the arbitrator exceeded his authority under the collective bargaining agreement by ordering reinstatement and that the factual findings regarding the employee's discharge were incorrect. The agreement permits the Hospital to set work rules and penalties but restricts the arbitrator’s power to alter penalties. The court upheld the arbitrator’s decision, emphasizing the arbitrator's role in interpreting the agreement within his authority and noting that the standard for review of arbitration is narrow. The arbitrator, after extensive hearings, found insufficient evidence of the alleged misconduct, and acknowledged that while the employee's actions warranted discipline, they did not constitute just cause for termination. The court concurred with the arbitrator’s application of a corrective disciplinary policy and upheld the reinstatement decision, affirming that it was consistent with the collective bargaining agreement. The court also denied the Hospital's motion to vacate and Local 79's request for attorneys' fees.

Legal Issues Addressed

Arbitrator's Authority under Collective Bargaining Agreement

Application: The arbitrator's decision to reinstate an employee is valid if it aligns with the collective bargaining agreement, even if the employer disagrees with the judgment.

Reasoning: The court noted that as long as the arbitrator was interpreting the contract within his authority, a mere belief that he made an error does not justify overturning his decision.

Corrective/Progressive Disciplinary Policy

Application: The arbitrator identified that the employee had not faced suspension or pay reductions for prior infractions, supporting the decision for reinstatement under a corrective disciplinary approach.

Reasoning: The arbitrator identified that the collective bargaining agreement and employee handbook established a corrective/progressive disciplinary policy.

Just Cause for Termination

Application: An arbitrator may assess whether unlisted misconduct constitutes just cause for discharge, which was deemed reasonable in determining the reinstatement award.

Reasoning: This interpretation was deemed reasonable, leading to the conclusion that the arbitrator's reinstatement award was consistent with the agreement's terms.

Review of Arbitrator's Factual Findings

Application: The court upheld the arbitrator's factual findings due to insufficient evidence to substantiate claims of misconduct, affirming the decision despite the possibility of differing conclusions.

Reasoning: Although a different conclusion might have been possible, the record adequately supported the arbitrator's factual determinations.