68 A.3d 505
R.I.2013Background
- The Providence School Board provides health insurance to active and retired employees, using a unified group for premium calculations since 1989.
- In summer 2006, underwriters separated active employees and retirees into two groups for rate calculations, enlarging retiree premiums.
- Controller D’Antuono explained retirees’ higher claim usage and justified a higher retiree contribution in a June 29, 2006 letter, effective Aug 20, 2006.
- On Sept 25, 2006, the union filed a grievance contesting the retiree premium increase, alleging violations of the CBA provisions on medical coverage and past practice.
- An arbitrator ruled the union had standing and that the board violated the CBA by treating retirees and active employees as a single group, based on past practice.
- The trial court vacated the award, finding lack of standing under Arena and alternative non-arbitrability due to silence in the CBA about group-rate calculation; the union appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the union have standing to pursue the retirees' grievance? | Union had standing under past practice and enforcement rights. | Retirees are not within the bargaining unit; no standing. | Union had no standing; non-arbitrable. |
| Is the calculation of the group premium rate arbitrable under the CBA? | Calculation method was arbitrable under contract terms. | No contract provision governs calculation; not arbitrable. | Not arbitrable; award vacated. |
| Do Arena and Local 1080 foreclose arbitration of retiree benefits in this context? | Arena/local decisions distinguish retirees still within past practice. | Arena/Local 1080 control; retirees cannot be arbitrated. | Arbitration improperly awarded; vacatur affirmed. |
Key Cases Cited
- Arena v. City of Providence, 919 A.2d 379 (R.I. 2007) (retirees not within FFAA; union lacking standing in similar retiree-benefit disputes)
- Local 2409, Rhode Island Brotherhood of Correctional Officers v. Rhode Island, 925 A.2d 944 (R.I. 2007) (arbitrator exceeds powers if issue not arbitrable)
- City of Newport v. Local 1080, International Association of Firefighters, AFL-CIO, 54 A.3d 976 (R.I. 2012) (retiree health-care disputes scope limited; not arbitrable under CBA)