In the Matter of Arbitration Between Edward L. Bealmer and Pat Brown v. Texaco, Incorporated

Edward L. Bealmer and Pat Brown brought this suit against their employer, Texaco, Incorporated, to compel arbitration of a dispute over the interpretation of a back pay provision in a collective bargaining agreement. The parties made cross motions for summary judgment. Texaco’s motion was granted and plaintiffs’ motion was denied. This appeal followed.

Bealmer and Brown, together with thirty-eight other employees of Texaco, had been discharged for alleged dishonesty. At this time, General Truck Drivers, Chauffeurs and Helpers Union, Local 692 (union) was the recognized collective bargaining agent for these employees. As a result of arbitration proceedings under Article XIV of their collective bargaining agreement (agreement), all but five of the discharged employees were reinstated. Back pay was to be awarded in accordance with a formula set out in Article XII of the agreement.

A dispute arose as to the application of that formula. The union and the company attempted to resolve their differences without going back to the arbitrator or invoking new arbitration proceedings. It appeared that the union was willing to make a concession to Texaco on one facet of the back pay dispute…