Donald Ryan was fired from Romney Automotive due to a rule violation. An arbitrator was to resolve issues over dismissal on the basis of rule violation, according to the collective bargaining arrangement between Romney Automotive and the United Auto Workers Union.
Following Donald Ryan's firing, the employers' association (United Auto Workers Union) brought the case to an arbitrator because they believed the dismissal was unjust. Ryan had broken a protected law, according to the arbitrator, but the discharge was unjust. Romney Automotive was forced to reinstate Ryan by the arbitrator. May Romney Automotive file a legal challenge to this order?
- Rules to be applied in this case
- Federal arbitration act
- National labor relations act
- Precedents from recent decisions on collective bargaining agreement
- Applications of the rules in this case
- Analysis of the order issued by the arbitrator
The first thing to analyze is the legality of the order issued by the arbitrator compelling Romney to reinstate Ryan. According to the federal arbitration act, parties may opt to solve private disputes through arbitration rather than through federal court. If two parties have a legal agreement to solve certain disputes through arbitration they must give up the right to appeal the decision of the arbitrator (Abbott, Pendlebury and Wardmann, 197). In this case, the decision made by the arbitrator is held as final and legally binding to the parties. Romney must therefore reinstate Ryan.
The national labor relations act protects the rights of both employers and employees. This statute also protects collective bargaining between the employer and the employees' union. In our case, this statute protects the collective bargaining agreement between Romney Automotive and United Auto Workers Union. According to this CBA, the avenue that was agreed upon by the parties to solve this kind of dispute is only arbitration. By signing this agreement, the parties gave up the right to appeal (Abbott, Pendlebury and Wardmann, 89).
After analyzing of this case the order by the arbitrator should be held and any appeal arising from it in a court of law should be dismissed. The collective bargain agreement between two parties must be respected. By signing the CBA and opting to use arbitration to solve this kind of disputes, both parties gave up their rights to appeal to the decisions made from the arbitration process.
Work Cited
Abbott, Keith, N Pendlebury, and Kevin Wardman. Business Law. Andover: Centage Learning, 2013. Print.
