Labor Law – Arbitration – Determination of the Question of Arbitrability Under Section 301(a) of Labor-Manabement Relations Act
Plaintiff- union brought an action under section 301 (a) of the Labor-Management Relations Act to compel arbitration of a grievance over the subcontracting of work by defendant-employer. The collective bargaining agreement provided that questions as to the proper interpretation or application of any of the provisions of the agreement would be submitted to arbitration and that all matters involving exclusively managerial functions were excluded from arbitration. The trial court held the grievance not arbitrable. On appeal, held, reversed. An implied covenant of good faith and fair dealings and the fact that some private arbitrators have held that the conventional recognition clause by implication prohibits unrestricted employer subcontracting prevent the court from saying with positive assurance that the contract is not susceptible to an interpretation that covers the dispute. Local 1912, International Association of Machinists v. United States Potash Co., (10th Cir. 1959) 270 F. (2d) 496.