Reference no: EM133456541

Assignment:

Collective Bargaining Agreement (CBA) between

Southwestern Public Service Company/Xcel Energy and International Brotherhood of Electrical Workers Local No. 602 for the contract years 11/1/2011 to 10/31/2014. I have posted that contract on Canvas under Modules and Course Materials. That contract contained a Janitor/Yardman (janitor) classification the wages for which appear on pages 46 to 47 of the CBA. Those wages top out at $27.21 per hour in the final year of the contract for the Janitor Working Foreman classification, and $18.79 to $21.15 for the Janitor/Yardman Classifications.

Suppose that in the middle of the contract period on January 1, 2013, the Company announced to the union that it planned to lay off all 25 janitors covered under the collective bargaining agreement and to replace them with an independent contractor whose janitor employees made the Federal Minimum Wage of $7.35 per hour. This layoff took effect on February 1, 2013.

Thus, the Company subcontracted the work performed by the janitors to the independent contractor to save money. The only provision of the CBA dealing with the issue of whether the Company may subcontract work was a short letter of understanding on page 60 of the CBA. Answer the following questions regarding this fact scenario.

The arbitrator rules in favor of the Company and holds that the Union granted the right to the Company to sub-contract any work it pleased by agreeing to the Letter of Understanding on page 60 of the CBA. Thus, the arbitrator upheld the layoffs. The Union sues under §301 of the NLRA to set aside the arbitrator's award in the United States District Court. If you were the United States District Judge, how would you decide this lawsuit and what group of United States Supreme Court cases would you rely upon to arrive at your decision? State the principle(s) in those cases that support(s) your decision?