Discipline and Dischargein Arbitration

Editor-in-Chief

Norman BrandArbitrator, Mediator, and Attorney

San Francisco, CA

Associate EditorsPatricia Thomas Bittel Charles W. Kohler

Arbitrator and Mediator Arbitrator and AttorneyCleveland, OH Columbus, OH

Jacquelin F. Drucker Thomas Y. MandlerArbitrator Schwartz & Freeman

New York, NY Chicago, IL

Julius Mel ReichReich, Adell, Crost & Cvitan

Los Angeles, CA

Assistant EditorHenry G. Stewart

Palmer & DodgeBoston, MA

Committee on ADR in Labor and Employment LawSection of Labor and Employment Law

American Bar Association

The Bureau of National Affairs, Inc., Washington, D.C.

Detailed Table of Contents

Chapter 1. Arbitration Advocacy 1I. Introduction 1

II. Preliminary Research and Investigation 2A. Analyzing the Case 3B. Evaluating the Case 3

III. Analyzing and Evaluating the Case Using theCase Matrix 3A. Analyzing the Case Using the Case Matrix . . . 3B. Evaluating the Case Using the Case Matrix . . 7

IV. Utilizing the Case Matrix: A Hypothetical Case . . 9A. Facts of the Hypothetical Case 9B. Analyzing and Evaluating the Hypothetical

Case 10V. Choosing an Arbitrator 14

A. Reading the Award 161. Directness 162. Economy 163. Sensitivity 174. Remedy 175. Intellectual Predilections 18

B. Consulting With Colleagues 19C. Arbitrator Availability 22

VI. Preparing for Arbitration 23VII. Presenting the Case 24

A. Rolling Hypothesis 24B. Opening Statements 25C. Witness Sequestration 26D. Aids to Comprehension 26

VIII. Conclusion 27

XV

xvi DISCIPLINE AND DISCHARGE IN ARBITRATION

Chapter 2. Just Cause 29I. Theories of Just Cause 30

A. The Seven Tests 31B. A "Systematic" Theory 33

II. Due Process as an Element of Just Cause 35A. Elements of Due Process 37

1. Timely Employer Action 372. Fair Investigation 393. Precise Statement of Charges 434. Employee Right to Be Heard 455. Double Jeopardy 476. Weingarten Rights 49

B. The Effect of Due Process Violations 53C. Judicial Review of Arbitration Awards

Concerning Industrial Due Process 56III. Progressive Discipline as an Element of Just

Cause 57A. Other Employer Communications

Distinguished 581. Counseling 582. Evaluations 60

B. Sources of Progressive Discipline 60C. Steps of Progressive Discipline 61

1. Oral Warning 622. Written Warning 623. Suspension 644. Discharge 675. Demotion and Transfer as Alternatives

to Progressive Discipline 71IV. Arbitral Concepts of Fairness 72

A. Making and Communicating Rules 721. Content 732. Consistency With Collective Bargaining

Agreement 773. Employee Notice of Rules 77

a. Unwritten and Unpublished Rules . . . . 78b. Clarity of Rules 79

B. Consistency of Enforcement 801. Uniform Enforcement 812. Lax Enforcement 813. Unequal or Discriminatory Enforcement.. 83

C. Appropriateness of the Penalty 85D. Fair Administration of the Progressive

Discipline System 89

Chapter 3. Attendance 93I. Absence as a Cause for Discipline 93

A. Employers' Policies 93

DETAILED TABLE OF CONTENTS xvii

1. Collectively Bargained VersusUnilaterally Imposed Policies 94

2. Reasonableness of the Policy 953. Due Process Issues 954. Conflicts Between Just Cause and the

Employer's Policy 965. Precedent 96

B. The Employee's Work Record 97C. Mitigating and Aggravating Circumstances . . . 98

1. Illness of Employee 98a. Mental Illness 99b. Physical Illness 100c. Work-Related Illness 101

2. Drugs, Alcohol, and Related Issues 1013. Incarceration 1034. Family Emergency 1055. Attending Funerals 1066. Car Trouble 1077. Inclement Weather 1078. Employee Dishonesty 1099. Failure to Notify Employer 109

10. Impact on the Employer's Operations . . . . 110D. Absence Without Leave 110

1. Duty to Investigate I l l2. Procedures for Reporting Absences I l l3. Construction of Ambiguous Notification

Rules I l l4. Mitigating Factors 112

a. Reasons Beyond Employee's Control.. . 112b. Inconsistent Application 113c. Ambiguous Instructions 113d. Good Faith Attempt 113

II. Tardiness and Leaving Early 114A. Defining "Tardiness" 115B. Factors Used by Arbitrators in Evaluating

Discipline 1151. Automobile Breakdowns and Inclement

Weather 1162. Oversleeping 1163. Prior Record 1164. Miscellaneous Excuses 1175. Inconsistent Application 1186. Errors in Timekeeping 1187. Improvement 1188. De Minimis Doctrine 1199. Notification 120

C. Alternative Consequences 1211. Withholding Work as Discipline 121

xviii DISCIPLINE AND DISCHARGE IN ARBITRATION

2. Withholding Wages and Benefits asDiscipline 121

3. Withholding Overtime and Holiday Pay .. 122III. Requiring Medical Examinations and

Certifications 122A. Employer's Authority to Require Verification

of Medical Status 123B. Elements of a Valid Doctor's Note 124C. Employer's Authority to Require Medical

Examinations 125D. Use of Employer's Physician for Medical

Examinations 126E. The Employee's Right to Privacy 128F. Psychological Examinations 131

Chapter 4. Job Performance Problems 133I. Introduction 133

II. Incompetence 134A. "Pure" Incompetence 134B. Conduct as an Element of Incompetence 135

III. Failure to Meet Quality or Quantity Standards .. 138IV. Loss of Qualifying Status 139

A. Driver's License 139B. Security Clearance 140C. Insurance 141D. Certification 142

V. Negligence or Carelessness 143A. Defining and Distinguishing Ordinary and

Gross Negligence 143B. Typical Cases of Ordinary Negligence 144C. Factors in Proving Ordinary Negligence 144D. Typical Cases of Gross Negligence 145E. Factors in Proving Gross Negligence 146F. Defenses to Discipline 147G. Penalties 148

VI. Demotion for Inability to Perform 148VII. Loafing and Extending Breaks 150

Chapter 5. Refusals to Perform Work or Cooperate . . 153I. "Work Now, Grieve Later" 153

A. Individual Refusals to Obey 153B. Group Refusals to Obey 154C. Examples of Improper Refusals to Obey 154D. Legitimate Refusals to Obey 156

II. Insubordination: Refusals to Do Work Requiredby Superior 156A. General Principles 156

DETAILED TABLE OF CONTENTS xix

B. Specific Conduct ConstitutingInsubordination 157

C. Exceptions 1591. Safety and Health 1602. Union Rights 1623. Contract Rights 1634. Other 165

D. Discipline Imposed 167E. Burden of Proof 168

III. Refusals to Work Overtime 168A. Management Rights Versus Personal Needs . . 169B. Overtime Communications 169C. Discipline Examples 170

IV. Refusal to Work With Other Employees 172A. General Rule 172B. Exception for Unusual Health Hazard 173C. Exception for "Intolerable Affronts" 175D. Off-Duty Conduct 176

V. Refusals to Cooperate in Investigations 177A. Requirement of Impact on Employer's

Business 178B. The Employee's Right Against Self-

Incrimination 1791. Public Employees 1792. Private Employees 180

C. Employee Protections 183D. Searches and Testing 184

Chapter 6. Substance Abuse 187I. Introduction 187

II. Work Rules/Policies Governing Alcohol andDrugs 187A. Work Rules 187B. On-the-Job Use, Possession, or Sale 188

1. Use 1892. Possession 1913. Sale or Distribution 193

C. On-the-Job Impairment 1941. Evidence of Impairment: Type 1952. Evidence of Impairment: Degree 197

D. Fitness for Duty 199E. Off-Duty Conduct 200

1. Off-Duty Drug Use 2002. Off-Duty Alcohol Use 2013. Criminal Conviction as a Basis for

Discipline 2024. Discipline Assessed While Criminal

Charges Pending 203

xx DISCIPLINE AND DISCHARGE IN ARBITRATION

F. Mitigating and Aggravating Circumstancesin Alcohol-Related Discipline 203

G. Drug Testing 2061. As a Subject of Bargaining 2062. As Federally Mandated 2073. Testing Issues 207

a. When Employer May Test 207i. Random Testing 207

ii. Reasonable Suspicion Testing 208iii. Other Cause for Testing 209

b. Testing Procedures 210c. Effect of Positive Test 211d. Refusing a Drug Test Order 213

H. Employee Assistance Programs 2131. Discipline of Employee Enrolled in

an EAP 2142. The Employer's Right to Discipline an

Addict or Alcoholic Who Has VoluntarilySought Rehabilitation 215

3. The Effect of PostdischargeRehabilitation 216

I. Last-Chance Agreements 2171. Purpose and Elements 2172. Role of Arbitrator and Validity of Last-

Chance Agreements 2183. Majority View 2204. Exceptions to Majority View 2215. Miscellaneous 221

J. Termination of the Employer's Duty toAccommodate 222

Chapter 7. Dishonesty and Disloyalty 225I. Introduction 225

II. Theft 225A. Elements of Theft 225B. Progressive Discipline and Mitigation 226C. Work Rules Concerning Theft 228D. Presumptions in Theft Cases 228E. Circumstantial Evidence as Proof of Theft . . . . 228

III. Falsification 229A. Introduction 229B. Types of Records Falsified 230

1. Time Records 2302. Business and Production Records 2303. Medical and Insurance Records 2314. Reimbursement Forms 2325. Safety Records 232

C. Factors Considered in Falsification Cases . . . . 2331. Intent 233

DETAILED TABLE OF CONTENTS xxi

2. Motive 2343. Effect of the Falsification 2354. Clarity and Consistency of Company

Policies 2365. Contract Language 2366. Employee's Record 2367. Grievant's Candor 237

D. Filing False Claims 2381. Sick Leave 2382. False Workers' Compensation and

Unemployment Benefits Claims 2393. False Sexual Harassment Claims 2404. Other False Claims 241

E. Test Falsifications 2411. Drug Testing 2412. Polygraph Tests 2423. Job Qualification Testing 2424. Quality Assurance Testing 243

IV. Falsification by Applicants 243A. Introduction 243B. Pledge of Truthfulness 243C. Approaches to Evaluating Falsified

Application Cases 244D. The Punishment and Annulment Theories . . . . 246E. The Duration of Time Between Falsification

and Discovery 247F. Mitigating Circumstances 249

V. The Duty of Loyalty: Disparaging theEmployer 251A. The Duty 251B. Decisions Upholding Discipline 253C. Decisions That Modify Discharge 254D. Decisions That Found No Penalty 255

Chapter 8. Workplace Misconduct 257I. Introduction 257

II. Health and Safety Violations 257III. Accidents 259IV. Sleeping on the Job 261

A. Workplace Rules and Enforcement 262B. Proving an Employee Is Actually Asleep 264C. Aggravating and Mitigating Circumstances . . . 266D. Safety 271

V. Fighting and Threats 271A. Fighting 271

1. Provocation by Words or Gestures 2722. Name Calling and Racial Slurs 2733. Shop Talk Distinguished From

Provocation 273

xxii DISCIPLINE AND DISCHARGE IN ARBITRATION

4. Past Disciplinary Record 2735. Physical or Mental Impairment of

Employee 273a. Drugs or Alcohol 273b. Mental Illness 274

6. Self-Defense 2747. Violence Against Management and

Nonemployees 275B. Threats of Violence 276

VI. Abusive, Profane, or Other InappropriateLanguage 277A. Type of Statement 277

1. Threatening and ProvocativeStatements 278

2. Profanity 2783. Racial Epithets 279

B. Setting 279C. Defenses 280D. Legally Protected Speech 281

VII. Firearms or Weapons in the Workplace 283A. What Constitutes a Weapon 283B. Using or Threatening to Use a Weapon 284C. Level of Discipline 285

VIII. Horseplay 286A. Intentional or Accidental Conduct 287B. Risk of Injury or Damage 289C. Defenses 290

1. Horseplay Tolerated 2902. Contrition 290

DC. Failure to Meet Grooming or AppearanceStandards 291A. Arbitral Principles 291B. Constitutional Law 294C. Civil Rights Statutes 295

X. Conduct and Speech Toward Third Parties 296A. Obligations Toward Those in the Employee's

Care 296B. Obligations Toward Customers and Third

Parties 2971. Harassment 2972. Discourtesy to Customers: "Tone and

Manner" Complaints 3003. Third-Party Complaints of Other

Employee Misconduct 301

Chapter 9. Off-Duty Conduct 303I. Introduction 303

II. The "Workplace Nexus" Standard: Relevanceand Notoriety 304

DETAILED TABLE OF CONTENTS xxiii

A. The Accepted Standard 304B. Harm to the Employer's Business 305C. An Employee Unable to Work 310D. Refusal of Other Employees to Work With

the Grievant 311III. "Workplace Nexus" in the Public Sector:

Public Trust 312IV. The Nexus Requirement in Federal Sector

Cases 315

Chapter 10. Union Activities 317I. Participation in Unlawful Concerted Activities . . . 317

II. Strike Misconduct 321III. Refusals to Cross Picket Lines 323

A. Contractual Rights and Obligations 323B. Other Factors 324

IV. Discipline of Stewards and Other UnionOfficials 325A. Discipline of Union Officials for Activity

Undertaken on Behalf of the Union or ItsMembers 326

1. Abusive or Harsh Language 3262. Acts of Intimidation and Harassment . . . . 3273. Insubordination and Self-Help 3274. Solicitation of False Testimony From

Co-Workers 3295. Absences to Engage in Union Activities . . 3296. Contract Interpretation 330

B. Disciplinary Immunity for Behavior EngagedIn on Behalf of the Union 330

C. Conduct of Union Official While in Capacityof Bargaining Unit Employee 332

Chapter 11. Evidentiary and ProceduralConsiderations 333

I. Application of Legal Rules of Evidence 333II. Procedural Issues 335

A. Quantum of Proof 335B. Calling the Grievant as an Adverse

Witness 335C. Improperly Procured Evidence 337D. Missing Witnesses 339

III. Validity of Work Rules 339IV. Timing: When Rules Can Be Challenged 341V. Discipline in the Absence of Explicit Work Rules 342

A. Adverse Effect on Business 342B. Dishonesty and Disloyalty 343C. Invasion of Privacy 344D. Absenteeism 344

xxiv DISCIPLINE AND DISCHARGE IN ARBITRATION

E. Termination Based on Artistic or BusinessJudgment 345

VI. Medical Evidence 345A. Evaluating Conflicting Medical Evidence 346B. Principles Used in Evaluating Medical

Opinions 3471. Qualifications 3482. Apparent Reliability 3483. Personal Testimony Versus Written

Evidence 3484. Degree of Contact With Employee 3495. Knowledge of Job Requirements 3506. Interests of the Physician 3517. Chiropractic Evidence 3518. The Neutral Medical Examiner 352

VII. Handwriting Analysis 353VIII. Circumstantial Evidence 354

DL Credibility 355X. Res Judicata and Collateral Estoppel Effect of

Other Proceedings 357A. General Principles 357B. Res Judicata 358C. Collateral Estoppel 359D. Effect of Determinations of Administrative

Tribunals 360E. Criminal Proceedings 361

XI. New Evidence 363A. After-Acquired Evidence 363B. Postdischarge Conduct 365C. Reopening the Record to Accept New

Evidence 367

Chapter 12. Remedies for InappropriateDiscipline 369

I. General Considerations 369A. Make Whole 370B. Partial Relief 371

II. Components of a Make Whole Remedy 374A. Traditional Components 374B. Other Possible Components 376C. Remedies Not Generally Included 377D. Reinstatement With Back-Pay

Computations 3781. Time Period 3782. Rate 3793. Amount 3804. Duty to Mitigate/Interim Earnings 3825. Lost Opportunities 385

DETAILED TABLE OF CONTENTS XXV

a. Overtime 385b. Other Lost Opportunities 386

E. Reinstatement Without Back Pay 386F. Other Components of the Make Whole

Remedy 3881. Accrued Leaves 3882. Contributions to Retirement 3883. Seniority 389

III. Reduction in Penalty 389A. Authority 389B. Factors Considered 391

1. Nature of Offense 3922. Due Process Violations 392

a. Procedural 392b. Rules 394

i. Warnings 395ii. Lax Enforcement of Rules 395

3. Delay in Assessing Discipline 3964. Management Also at Fault 3965. Discriminatory Treatment 397

a. Unequal 397b. Antiunion 398

6. Employment History 398a. Employment Record 398b. Length of Service 399

C. Conditional Reinstatement 400IV. Review of Last-Chance Agreements 403V. Other Remedies 406

A. Liquidated Damages 406B. Punitive Damages 407

VI. Ancillary Relief 408A. Expungement of Records 408B. Materials Previously Ordered Expunged 409

Chapter 13. External Law 411I. Introduction 411

II. Title VII 413A. General 413B. Awards Applying Title VII Provisions 415

1. Sex Discrimination and SexualHarassment 415a. Quid Pro Quo 415b. Hostile Environment 416c. "Reasonable Victim" Standard 417d. Arbitration Awards in Sex

Discrimination 4172. Race Discrimination 4213. Religious Discrimination 423

xxvi DISCIPLINE AND DISCHARGE IN ARBITRATION

a. Scope of Protection 423b. Reasonable Accommodation 424c. Harassment 430d. Questions Concerning Religious

Beliefs 4304. Sexual Preference Harassment 4305. Disability-Based Harassment 4306. Awards Disregarding Title VII 431

III. Age Discrimination in Employment Act 432IV. Americans with Disabilities Act 434

A. Awards Applying ADA 434B. Awards Not Applying ADA 435

V. Family and Medical Leave Act 436VI. Title VII and ADEA Procedures and Remedies . . . 437

VII. Forum Shopping: Court or Arbitration 439VIII. Drug Testing 444

A. General 444B. Arbitration and Public Policy 445

DC. Federal Antiretaliation Statutes 448X. State Statutes 450

XI. Lie Detectors and Monitoring 452A. Lie Detectors 452

1. The Employee Polygraph ProtectionAct of 1988 452

2. State Laws 4523. Arbitration Awards 453

a. In General 453b. As Corroborative Evidence 454c. Grievant's Request to Submit to Lie

Detector Test 454d. Grievant's Refusal to Submit to Lie

Detector Test 454B. Monitoring 455

1. Personnel Files and Evaluations 4552. Surveillance 4553. Searches 4564. Electronic Interception and Nonelectronic

Eavesdropping 4575. Computerized Monitoring 4586. e-mail 459

Chapter 14. Finality of Awards and Court Actions . . . 461I. Introduction 461

II. Resubmission and Clarification of ArbitrationAwards 462

III. Standards for the Review of ArbitrationAwards 466A. Evolution of Supreme Court Doctrine 466

DETAILED TABLE OF CONTENTS xxvii

B. Deference to the Arbitration Award 470C. Exceptions to the Deference Standard 473D. Public Policy Review 475E. Procedural Grounds for Denying Enforcement:

Arbitrator and Party Misconduct and Defectsin Proceedings 478

IV. Statute of Limitations for Confirming andVacating Arbitration Awards 482A. Limitations Period for Unfair Representation

Actions Under LMRA Section 301 482B. Court of Appeals Decisions in Actions to

Confirm and Vacate Arbitration Awards 483V. The Role of Arbitration Precedents 485

VI. Deferral to Arbitration 489A. Parallel Issues 490B. Fair and Regular Proceedings 491C. The Parties' Agreement to Be Bound 491D. Repugnancy to the Policies of the Act 492E. Excluded Cases 492F. Prearbitration Deferral 493

Table of Court Cases 495

Index 505