International Ass'n of Machinists & Aerospace Workers v. San Diego Marine Construction Corp.

This case arises from the San Diego Marine Construction Corporation’s (“the Company’s”) decision to dismiss James Heller, the chief shop steward of Local 389 of the International Association of Machinists and Aerospace Workers (“the Union”). Heller and the Union protested the dismissal before an arbitrator, asserting, among other things, that the Company fired Heller without just cause. The arbitrator found that, although Heller’s misconduct justified disciplining him, firing him was too severe a sanction under the circumstances. He therefore ordered Heller reinstated, but without back pay.

The Company brought an action in state court seeking correction of the arbitration award. The Union removed the case to District Court, because a dispute over the powers of an arbitrator as set forth in a labor agreement is a dispute over the violation of a contract between an employer and a labor organization within the meaning of § 301 of the Labor Management Relations Act, 29 U.S.C. § 185 . The District Court confirmed the arbitration award on the basis of the arbitrator’s oral opinion and its interpretation of the labor agreement. The Company now appeals to this Court.

In this appeal, the…