Agreements Can Force Discrimination Arbitration, High Court Rules

Workforce Management
April 2, 2009
Agreements Can Force Discrimination Arbitration, High Court Rules

In a decision that could curb the growth of employment discrimination litigation, the Supreme Court has ruled that employees cannot take their claims to court if a collective bargaining agreement mandates that they go through arbitration.
The court overturned a decision by the 2nd Circuit Court of Appeals in New York that would have allowed workers for a real estate security contractor to file age discrimination charges against their employer after their union declined to pursue arbitration.
“We hold that a collective-bargaining agreement that clearly and unmistakably requires union members to arbitrate [age discrimination] claims is enforceable as a matter of federal law,” wrote Justice Clarence Thomas for the 5-4 majority on Wednesday, April 1.
The case involves employees of Temco Services Industries, a contractor that works in New York City buildings owned by the Pennsylvania Building Co. and 14 Penn Plaza LLC.
They were covered by the collective bargaining agreement between the Service Employees International Union and the multiemployer association of the New York City real estate industry that requires arbitration for discrimination claims.
Several of the Temco workers allege their jobs as night watchmen were taken away and they were reassigned to less desirable positions in August 2003 when Temco contracted with Spartan Security. They said that they were the only people on staff above the age of 50 and filed an age discrimination grievance.
A district court and the appeals court denied the employer’s motion to compel arbitration. The Supreme Court overruled and sent the case back to the lower court...

The case is 14 Penn Plaza LLC, et. al. v. Pyett, et. al., Docket No. 07-581.
Full Story: http://www.workforce.com/section/00/article/26/28/84.php