Originially from: World Arbitration and Mediation Review (WAMR)

The Supreme Court Short-Circuits the Public Policy
Exception to the Enforcement of Arbitral Awards
in Safety-Sensitive Industries
by
Erica Seay
B.A. (Political Science), University of Michigan (1998)
J.D. Candidate, Tulane University
I. Overview of the Case
II. Background
III. Court’s Decision
IV. Analysis
V.
I. Overview of the Case
II.
A labor arbitrator ordered Eastern Associated Coal Corporation
(“Eastern”) to reinstate an employee truck driver, Smith, who twice tested
positive for marijuana and whom Eastern terminated on the basis of the positive
tests.1 Eastern and the United Mine Workers of America (UMWA) were parties to
a collective bargaining agreement (CBA) with arbitration provisions and a
requirement that Eastern prove “just cause” when terminating an employee.2
After the first positive drug test in March 1996, the arbitrator found no “just
cause” for discharge and ordered Smith’s reinstatement after a 30-day suspension
without back-pay and with a requirement that Smith participate in a substance
abuse program.3 Smith tested positive for drugs a second time in July 1997.4
Eastern again terminated Smith. A second arbitration again ordered the
reinstatement of Smith, but with more severe penalties against Smith than after
the first arbitration.