Originally from World Arbitration And Mediation Review (WAMR)

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SIXTH CIRCUIT OVERRULESMOOG AND

HOLDS TIME-LIMITATION BAR TO BE
THRESHOLD QUESTION FOR ARBITRATOR

In United Steelworkers of America v. Saint Gobain Ceramics &
Plastics, Inc., the United States Court of Appeals for the Sixth Circuit ruled
that a time-limitation bar in a collective bargaining agreement is a question
for an arbitrator, not a judge.1

The United Steelworkers of America (Union) is a labor union that
represents the employees of Saint Gobain Ceramics (Company), a
Louisville-based company that makes refractory products for industrial
clients. United Steelworkers entered into a collective bargaining agreement
(CBA) with Saint Gobain. In March 2004, two Union members were fired
from the company for insubordination. The Union filed grievances
immediately.

The CBA outlined a four-step process for resolving grievances. Steps
one, two, and three of the grievance process were denied by the company.
Denial of the step-three grievance was received by the Union on April 8,
2004. The CBA gave the Union thirty days to appeal the company’s
decision and commence step-four of the arbitration. Failure to appeal within
thirty days meant the Union forfeited its right to arbitration. The Union
appealed the denials, but the company did not receive the appeals until May
24, 2004. The company informed the Union that the arbitration would not
take place because the appeal was received after the thirty-day deadline.

The Union filed an action in district court to compel arbitration of the
two grievances. Following a previous Sixth Circuit decision in General
Drivers, Warehouses & Helpers, Local Union 89, the district court held that
a federal judge, not an arbitrator, must determine whether the timelimitation
bar applied to the grievances.2 In the instant case, the district
court held that the Union failed to appeal in a timely manner and dismissed
the grievances. A panel of the Sixth Circuit affirmed the district court
decision. The Union appealed again, requesting en banc review. Upon en
banc review, the panel decision of the Sixth Circuit was overturned.