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EXXON CORP., Plaintiff-Appellant
vs.
BATON ROUGE OIL and Chemical Workers Union, Defendants-Appellees.
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Issues:
Union issues, drug testing, cocaine, collective bargaining.
Case Summary:
EXXON Corp. appeals an arbitrator's ruling that reinstates an employee who was terminated for testing positive for cocaine. During the arbitration process, the employee's union claimed the company's action was a violation of its collective bargaining agreement with the union. The company denies the allegation.
Decision of lower jurisdiction:
An arbitrator ruled that the company violated an existing collective bargaining agreement when it fired the employee. The arbitrator ordered the employee reinstated and awarded back pay. EXXON appealed the arbitrator's ruling to the United States District Court for the Middle District of Louisiana and was granted a motion for summary judgment. EXXON now appeals the arbitrator's ruling concerning back pay for the employee.
Outcome:
EXXON wins. The United States Court of Appeals for the Fifth Circuit reversed the decision of the arbitrator and rendered judgment in favor of EXXON. The appeals court ruled that the arbitrator's award of back pay was a violation of stated public policy.