| September 2001 |
Volume 20, Number 4
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| employees. In 1994, new labor contracts
were negotiated with both unions. Neither agreement contained a provision
for the pension pickup but the city continued to pay the contribution for
Local 1039 employees. In 1997, during negotiations, members of Local 1039A
discovered that the city was not making the pension contribution for its
members. The union filed a grievance regarding the city's failure to pay
the pension contribution. The city denied the grievance, arguing that since
the city council failed to ratify the 1992 wage reopener that provided
for the pension pickup it was under no obligation to pay the benefit in
subsequent years. The matter went to binding arbitration. An arbitrator
ruled that the city's refusal to pay the pension contribution violated
both the 1992 wage reopener agreement and the subsequent 1994 labor contract.
The city sought court assistance in vacating the award but the court affirmed
the award. City appeals.
HELD: It is the policy of Ohio law to encourage and favor arbitration. Arbitration provides the parties with a relatively speedy and inexpensive method of conflict resolution and has the additional effect of unburdening crowded court dockets. In order to advance the policy concerns that underline the arbitration system, courts have refused to review the merits of an arbitration award arising from collective bargaining agreements. The limited scope of judicial review derives from the fact that the arbitration is a creature of contract. Contracting parties who agree to submit disputes to arbitration or final decision have chosen to bypass the normal litigation process. Thus, courts will alter arbitration awards only in limited circumstances. In this case, the city argues that the arbitrator exceeded his authority. While state statute provides that arbitration awards may be vacated where the arbitrator exceeds his authority, the converse is also true: if the arbitrator has not exceeded his authority, the award should not be vacated. When determining whether the arbitrator exceeded his authority, a reviewing court must determine whether the award |
draws its essence from the collective bargaining agreement. If the award draws its essence from the agreement and is not unlawful, or arbitrary, or capricious, a reviewing court's inquiry for purposes of vacating an award is at an end. Here, the arbitrator concluded that the city council ratify both the wage increase and the pension contribution agreed upon in the 1992 wage reopener agreement. Therefore, even if the ordinance did not contain specific language, the city was still required to honor the pension pickup agreement. Under Ohio law if the council had failed to act within 30 days after the city submitted the agreement for approval the agreement would have been deemed approved. Thus, the arbitrator's findings that the initial city ordinance ratified the wage reopener agreement is consistent with the law and facts. The city also argues that the arbitrator exceeded his authority when he ordered the city to pay the pension pickup for contract years covered by the 1994 contract. State law provides that where no agreement exists, public employers and public employees are subject to all applicable state and local laws pertaining to wages, hours, and conditions of employment. The arbitrator reasoned that the ordinance in 1992 requiring the pension contribution pickup was enforceable under the state statute. City argues that the arbitrator ignored the zipper clause in the 1994 agreement. The zipper clause specifically said that there were no other agreements unless they were a written part of the current agreement. However, the wage increases in the 1994 agreement were percentage based. Thus, by necessity, one had to refer to the 1992 wage reopener to calculate salaries. The zipper clause did not prohibit reference to the 1992 reopener. While one could interpret the 1994 labor agreement as superceding the 1992 wage reopener contract, that is not the only possible interpretation. When a collective bargaining agreement is capable of more than one interpretation, courts must defer to the interpretation of the arbitrator. Enforcement of award affirmed. [City of Portsmouth v. Ohio Council 8, AFSCME, 751 N.E.2d 536 (Ohio Ct. App. 2001)] | |||||||
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