Labor Law -- 2008



Illinois Bell Tel. Co. v. IBEW, Local 21   (U.S. Supreme Court)

Whether recognition clause justifies arbitration of disputes not specified in collective bargaining agreement

This case arises from a dispute between AT&T's subsidiary, Illinois Bell Telephone Co., and its union, the IBEW, which sought to compel arbitration concerning new "performance guidelines" the company implemented for sales staff. The applicable collective bargaining agreement limits arbitration to matters involving the interpretation and application of the agreement's terms or provisions, and it says nothing about the arbitrability of performance guidelines. The Seventh Circuit nevertheless ruled that the guidelines were arbitrable, basing its decision solely on the fact that the agreement contained a recognition clause, i.e., standard language found in virtually every labor agreement in the country which says that the union is recognized as the exclusive bargaining agent for the defined bargaining unit of employees.

The NAM joined with the Council on Labor Law Equality to support Illinois Bell's appeal of this case to the Supreme Court. We urged the Court to take the case, arguing that the lower court's decision converts virtually any company action that is contrary to a union's interests into a violation of a boilerplate recognition clause. Arbitration should only be required where the parties have agreed to it, and courts should decide whether the parties have done so.

On March 17, the Court refused to hear this appeal. This precedent improperly introduces a judicially imposed form of 'interest arbitration' over a limitless set of issues arising under labor agreements that do not authorize such arbitration.


Related Documents:
NAM brief  (January 2, 2008)