Clifford Brisentine brought this lawsuit against Stone & Webster Engineering Corporation (“Stone & Webster”) alleging violations of the Americans with Disabilities Act (“ADA”), 42 U.S.C. § 12101 et seq. The district court granted summary judgment in favor of Stone & Webster, holding that Bri-sentine’s statutory claims were subject to compulsory arbitration pursuant to an arbitration clause in a collective bargaining agreement. We reverse, because we hold that in order to bar litigation of federal statutory claims, a mandatory arbitration clause agreement must meet three requirements, none of which were met in this case.
I. BACKGROUND
A. THE COLLECTIVE BARGAINING AGREEMENT
The Project Maintenance and Modifications Agreement (“the Agreement”) for the Tennessee Valley Authority (“TVA”) is a collective bargaining agreement between TVA contractors and subcontractors and the unions comprising the Tennessee Valley Trades and Labor Council (“the Council”). The Council comprises some sixteen international unions, including the International Brotherhood of Electrical Workers (“IBEW”). Stone & Webster, a TVA contractor, is an employer party to that collective bargaining agreement.
Article I of the Agreement sets forth the intents and purposes of the parties, stating that the Agreement
shall be construed as binding upon and effective in determining the relations between the parties ... and [shall] set forth herein the basic Agreement covering the rates of pay, hours of work, and conditions of employment to be observed by the parties hereto.
In Article III of the Agreement, the contractor, Stone & Webster in this case, agrees to “recognize[ ] the Council as the sole and exclusive bargaining representative for all craft employees of the Contractor.” Article IV, the only provision in the Agreement remotely addressing federal statutory rights, states:
The Council Unions and the Contractor shall not discriminate against any employee or applicant for employment because of race, creed, color, sex, national origin, age, or handicap....
Article VII provides a grievance procedure through which an employee may “protest a termination, suspension, or violation of a specific provision of this Agreement.” Although the individual employee must initiate the grievance procedure, if a settlement is not reached within the first few steps of the grievance procedure, only the Council and the contractor have the authority to appeal an unfavorable resolution of a grievance to an arbitrator. See Agreement, Art. VII, Step III, 2 (“In the event agreement is not reached within ten (10) working days of receipt, the Contractor or the Council may appeal within ten (10) working days to the Arbitrator....”). Thus, neither the individual employee nor the employee’s individual union can ensure that the employee’s claim goes to arbitration. Notwithstanding that, it is the employee’s individual union, not the employee or the Council, which shares the cost of arbitration with the contractor. See Agreement, Art. VII, Step IV, 2 (“In arbitration proceedings, the expenses of arbitration *521 shall be shared by the Contractor and the Council Union involved.”).
Once a grievance reaches arbitration, “[a]ll decisions of the arbitrator shall be within the scope and terms of this Agreement.” The arbitrator’s jurisdiction and authority are limited to determining the “meaning, application of, or compliance with the provisions of [the] Agreement.” The arbitrator does not have jurisdiction or áuthority “to add to or detract from or alter in any way” any provision of the Agreement.
B. THE HISTORICAL AND PROCEDURAL FACTS
Clifford Brisentine worked as an electrician in various small commercial, residential, and industrial settings for more than ten years. In 1992, he fell off a scaffold at work and injured his back. After surgery, he underwent a rehabilitation process called “work hardening” to facilitate his return to work. In November 1993, Brisentine’s doctor released him to return to work, but restricted him from lifting more than 30 to 45 pounds and from repetitive bending and stooping.
Getting on the payroll at Stone & Webster at TVA’s Browns Ferry Nuclear Plant is á two part process. The first step requires that a union refer an individual for an opening at Stone & Webster. Once referred by the union, the individual becomes a “probationary employee.” Such designation pulls the individual under the umbrella of the Agreement and provides him with all rights and liabilities appertaining thereunto. The second step requires that the individual “meet [the] requirements for ... clearance.” See Agreement, Art. Ill, K. That is, the individual must file a formal application with Stone & Webster and meet the job specifications in order for Stone & Webster to formally hire the individual and put him on the payroll. Although an individual whose application is rejected is “not hired,” under the technical terms of the Agreement, that individual is “terminated” from employment with Stone & Webster, because he is considered a probationary employee.
In early May 1994, Brisentine’s union, the IBEW, referred him for an industrial electrician position with Stone & Webster at TVA’s Browns Ferry Nuclear Plant: When Brisen-tine filed his application with Stone & Webster, he indicated that he was unable to engage in heavy lifting or repetitive bending and stooping. Shortly after that, Brisentine was informed that his application was rejected and he was terminated because of those disabilities. Tom Dougherty, a labor relations manager at Stone & Webster, reaffirmed to Brisentine later that day that he was terminated because of his disabilities. Bri-sentine told Dougherty that he believed he could do the job, because he had recently worked as an electrician at another nuclear power plant. Dougherty refused to reconsider his decision and explained that “he just couldn’t take the chance of [Brisentine’s] getting hurt on [the] job.”
Immediately following his termination, Bri-sentine contacted an IBEW union representative about filing a grievance under the procedures set out in the Agreement. The IBEW representative told Brisentine that, because his dispute with the Stone & Webster centered around his disability, he would be better off filing a complaint with the Equal Employment Opportunity Commission (“EEOC”) instead of pursuing his claim through the grievance procedure. Brisentine took that advice; he filed a complaint with the EEOC, and he never filed a grievance.
After receiving his right to sue letter from the EEOC, Brisentine filed this lawsuit. In his complaint, Brisentine alleged that Stone & Webster had violated the ADA, 42 U.S.C. § 12101 et seq., by terminating him because of his disability and failing to make a reasonable accommodation for it. Stone & Webster sought summary judgment on a number of grounds. However, the district court addressed only Brisentine’s alleged failure to file a grievance pursuant to the procedures set forth under the Agreement and then submit that grievance to binding arbitration. Because he had failed to do so, the court dismissed his action.
II. THE STANDARD OF REVIEW
We review the district court’s grant of summary judgment
de novo,
applying the same standards as the district court.
See
*522
Counts v. American Gen. Life & Acc. Ins.,
III. DISCUSSION
We deal here with the intersection of federal statutory anti-discrimination rights and mandatory grievance and arbitration clauses in a collective bargaining agreement. This area of the law has been staked out by two Supreme Court decisions, although neither one is directly on point to our ease. Moreover, those two Supreme Court decisions reached different results. Our task then is to examine the precedential orbit of the two decisions and decide which one this case falls within.
The first Supreme Court decision bearing upon the matter is
Alexander v. Gardner-Denver Co.,
The Alexander Court distinguished an employee’s individual statutory rights from any contractual rights he may have as an employee under a collective bargaining agreement:
In submitting his grievance to arbitration, an employee seeks to vindicate his contractual right under a collective-bargaining agreement. By contrast, in filing a lawsuit under Title VII, an employee asserts independent statutory rights accorded by Congress. The distinctly separate nature of these contractual and statutory rights is not vitiated merely because both were violated as a result of the same factual occurrence. And certainly no inconsistency results from permitting both rights to be enforced in their respectively appropriate forums.
Id.
at 49-50,
Although
Alexander
involved a claim arising under Title VII, later cases indicate that the reasoning of that decision applies equally to claims brought under other federal statutes that protect individual rights.
See McDonald v. City of West Branch,
If Alexander were the last word on this subject from the Supreme Court, the law would be pretty clear, and Stone & Webster would have little to talk about. However,
Alexander
is not the last word, and Stone & Webster does have something to talk about, because seventeen years after
Alexander
the Supreme Court decided
Gilmer v. Interstate/Johnson Lane Corp.,
The Supreme Court took back in
Gilmer
some of the disparaging things it had said about arbitration in
Alexander. See Gilmer,
Understandably, Stone & Webster contends that Gilmer means any agreement, including a collective bargaining agreement, that makes arbitration the exclusive remedy for violation of a federal statutory right is enforceable. The only exception in its view is where the plaintiff seeking to litigate rather than arbitrate can show that Congress intended to preclude a waiver of a judicial forum in favor of arbitration. Stone & Webster points to the text of the ADA itself, which is arbitration friendly: “Where appropriate and to the extent authorized by law, the use of alternative means of dispute resolution, including ... arbitration, is encouraged to resolve disputes arising under this chapter.” 42 U.S.C. § 12212. Encouragement is towards the other end of the pole from preclusion. Congress in the ADA did not manifest an intention to preclude a collective bargaining waiver of a judicial remedy for an arbitration remedy. Therefore, Bri-sentine, like the plaintiff in Gilmer, should lose. Or so Stone & Webster argues.
The problem with Stone & Webster’s argument is that it goes too far. If
Gilmer
stands for the proposition that any agreement requiring arbitration in lieu of judicial enforcement of federal statutory rights is valid,. unless the plaintiff shows Congress intended to preclude the result, then
Gilmer
overruled
Alexander.
But the Supreme Court did not say in
Gilmer
that it was overruling
Alexander,
nor did the-Court even imply that. Instead, the Court clearly implied to the contrary by explicitly distinguishing
Alexander
from
Gilmer. See
In order to see which precedent the present case more closely resembles, we turn now to the distinctions the Supreme Court drew in
Gilmer
between that case and
Alexander.
There .are three. First, the
Gilmer
Court distinguished
Alexander
because it had involved an agreement to arbitrate contractual claims that did not extend to statutory claims.
See Gilmer,
As in
Alexander,
in this case the arbitrator only has authority to interpret the collective bargaining agreement; the arbitrator does not have the authority to resolve statutory claims.
See
Agreement, Art. VII, Step IV, 1;
Alexander,
The provision in the collective bargaining agreement in this case that sets forth the arbitrator’s authority to arbitrate claims brought pursuant to the grievance procedure is materially identical to the one in
Alexander.
Both agreements confine the arbitrator’s jurisdiction to determining the meaning, application of, or compliance with the provisions of the agreement; both agreements make clear that the arbitrator does not have the authority to add to, detract from, or alter in any way any provision of the respective agreement. In examining the arbitrator’s authority under the collective bargaining agreement in
Alexander,
the Supreme Court discussed the limitations it had previously placed on arbitrators of grievances brought pursuant to collective bargaining agreements,
If an arbitral decision is based solely upon the arbitrator’s view of the requirements of enacted legislation, rather than on an interpretation of the collective-bargaining agreement, the arbitrator has exceeded the scope of the submission, and the award will not be enforced. Thus, the arbitrator has authority to resolve only questions of contractual rights, and this authority remains regardless of whether certain contractual rights are similar to, or duplicative of, the substantive rights secured by Title VII.
It is true that Brisentine, unlike the plaintiff in
Alexander,
did not first submit any contract-based claims to arbitration. However, as the
Alexander
Court noted, “the actual submission of [the] grievance to arbitration ... does not alter the situation.”
So does the second distinction, which has to do with the individual versus collective nature of the agreements in the two cases. An individual contractual agreement to submit a claim to arbitration was enforced in
Gilmer,
a collective bargaining agreement to
*525
do so was not enforced in
Alexander.
The
Gilmer
Court noted that, in the context of collective bargaining agreements, employee-claimants are represented by their unions in arbitration proceedings.
See Gilmer,
The same is true here. In fact, the disparity in interests between the union and the individual employee, which helps explain the differing results in
Alexander
and
Gilmer,
is illustrated by the facts in this case. Recall that the IBEW advised Brisentine to file a complaint with the EEOC rather than file a grievance. That advice is some indication that the union was at least unenthusiastic, and perhaps unwilling, to pursue Brisentine’s claim to arbitration. Recall also that, under the Agreement, the Council of Unions, not Brisentine or his union, would ultimately decide whether to put the claim to arbitration.
See
Agreement, Art. VII, Step III, 2. Moreover, the union, not Brisentine, would be obligated to bear half the cost of arbitration, which gave it an incentive against pressing the Council to take a claim to arbitration. That same conflict of interest existed
in. Alexander
but was absent in
Gilmer,
The third distinction the
Gilmer
Court drew between that case and
Alexander
was that the claim in
Gilmer
arose under the Federal Arbitration Act (“FAA”), whereas the claim in
Alexander
did not.
Gilmer,
Therefore, in all three of the ways that the Gilmer Court distinguished that case from Alexander, this case is like Alexander and unlike Gilmer. It may be that the Supreme Court has cut Alexander back so far that it will not survive. Perhaps, but we are not convinced we are authorized to sing the dirge of Alexander. We will leave that to the Supreme Court, which has admonished courts of appeals:
If a precedent of this Court has direct application in a case, yet appears to rest on reasons rejected in some other line of decisions, the Court of Appeals should follow the case which directly controls, leaving to this Court the prerogative of overruling its own decisions.
Rodriguez de Quijas v. Shearson/American Express Inc.,
In applying
Alexander
instead of
Gilmer
to collective bargaining agreements, we follow the Seventh, Eighth, and Tenth Circuits.
See Harrison v. Eddy Potash, Inc.,
We disagree with the result and reasoning of the Fourth Circuit, which reached the opposite conclusion. See Austin, 78 F.3d at 885 (applying Gilmer and holding that an employee’s individual statutory claim is subject to compulsory arbitration pursuant to an arbitration clause in a collective bargaining agreement). Judge Hall dissented from that decision, and we find the reasoning in his dissenting opinion, see id. at 886-87, more persuasive that the panel majority’s.
The Third Circuit recently has upheld the exclusivity of the arbitration remedy in a collective bargaining agreement case, but limited its holding to agreements which empower the employee to pursue arbitration without the approval of the union, and which explicitly provide for arbitration of statutory discrimination claims, instead of only contractual claims.
See Martin v. Dana Corp.,
IV. CONCLUSION
Employment discrimination lawsuits are burgeoning as are the costs of litigating them, costs that are borne by the judicial system as well as by employers and employee-plaintiffs. Faced with a rising tide of litigation, it is not surprising that businesses are seeking to “trade[] the procedures and opportunity for review of the courtroom for the simplicity, informality, and expedition of arbitration,”
Gilmer,
Under that law, as we understand it, a mandatory arbitration clause does not bar litigation of a federal statutory claim, unless three requirements are met. First, the employee must have agreed individually to the contract containing the arbitration clause— the union having agreed for the employee during collective bargaining does not count. *527 Second, the agreement must authorize the arbitrator to resolve federal statutory claims — it is not enough that the arbitrator can resolve contract claims, even if factual issues arising from those claims overlap with the statutory claim issues. Third, the agreement must give the employee the right to insist on arbitration if the federal statutory claim is not resolved to his satisfaction in any grievance process. All three of those requirements were met in the Gilmer case, which is the latest word from the Supreme Court on the subject. None of the requirements were met in this case.
For the foregoing reasons, we REVERSE the judgment of the district court and REMAND for further proceedings consistent with this opinion.
Notes
. Alexander explained the collective bargaining agreement at issue there as follows:
Article 5, § 2, provided ... that "there shall be no discrimination against any employee on account of race, color, religion, sex, national origin, or ancestry,” and Article 23 § 6(a) stated that "[n]o employee will be discharged, suspended or given a written warning notice except for just cause.” The agreement also contained a broad arbitration clause covering "differences arising] between the Company and the Union as to the meaning and application of the provisions of this Agreement” and "any trouble aris[ing] in the plant.” Disputes were to be submitted to a multistep grievance procedure, the first four steps of which involved negotiations between the company and the union. If the dispute remained unsolved, it was to be remitted to compulsory arbitration. ... The agreement further provided that "[t]he arbitrator shall not amend, take away, add to, or change any of the provisions of this Agreement, and the arbitrator’s decision must be based solely upon an interpretation of the provisions of this Agreement.”
Alexander,
