Unite Here Local 1 v. Hyatt Corp.

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Hyatt and Local 1 are parties to a collective bargaining agreement (CBA) that prohibits the hotel’s managerial employees from performing work normally performed by bargaining-unit employees absent an emergency. The CBA provides for the arbitration of any disputes not resolved by the grievance procedure. In 2013-2014, there were several incidents in which managers performed bargaining-unit work in circumstances that Local 1 did not regard as emergencies. The union took grievances to arbitration; both resulted in awards in Local 1's favor. Ninety days passed without Hyatt filing a petition to vacate; the union filed a petition to confirm the awards (Labor Management Relations Act, 29 U.S.C. 185(a)). The union alleged that Hyatt “has failed and refused and continues to fail and refuse to comply with” the awards. Local 1 cited 41 examples of managers allegedly performing bargaining unit work in 2015. The Seventh Circuit affirmed confirmation of the awards, rejecting Hyatt’s argument that the matter was either moot or did not present an appropriate case for confirmation. The district court’s “modest action” places the court’s contempt power behind the prospective relief ordered by the arbitrators, while reserving the merits of pending or future grievances for arbitration. Local 1 has conceded that any contempt petition would be based solely on the outcome of arbitrations post-dating the confirmation order. Confirming the awards does not undermine the agreement to resolve disputes through arbitration. View "Unite Here Local 1 v. Hyatt Corp." on Justia Law