In the case of Cleveland v. Communication Workers of Am., Local 4340, 2022-Ohio-2498, the appellate court held that an arbitration provision for resolving contract disputes in a collective bargaining agreement was valid and the Arbitrator’s award for retroactive payment did not exceed the Arbitrator’s authority.
Here, the City of Cleveland argued that the parties’ contract interpretation dispute involving retroactive payment under its collective bargaining agreement should have been heard by the State Employment Relations Board (“SERB”) rather than by an Arbitrator because such disputes are within SERB’s exclusive jurisdiction under R.C. Chapter 4117. The City also argued that the Arbitrator’s exceeded his authority in ordering retroactive payment by adding his own wage terms to the collective bargaining agreement and ignoring the fact that the agreement was never finalized or binding. The appellate court disagreed with the City.
In support of its conclusion, the appellate court reasoned that the collective bargaining agreement included a provision that stated interpretation disputes were to be resolved by arbitration. The court explains that R.C. Chapter 4117.10(A) allows an employer and employee to commit to arbitration in collective bargaining agreements to resolve disputes, effectively taking those disputes out of the exclusive jurisdiction of SERB. The court further found that the Arbitrator’s decision that the dispute could be resolved by arbitration was not unlawful and was supported by the facts. The appellate court also found that the Arbitrator did not exceed his authority in awarding retroactive payment as there was a rational nexus between the award and the collective bargaining agreement and the award was supported by the facts.
To read this case, click here.
Authors: Matthew John Markling and the McGown & Markling Team.
Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always-changing Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.